by Flack » Sun Aug 23, 2015 6:35 pm
Start with Math 101. Figure out how much the rent is.
Let's take one simple example.
At Walmart, you can get a 28oz bottle of sriracha for $3.
http://www.walmart.com/ip/10452869?wmls ... 72&veh=sem
According to this website, you can buy 28oz bottles of sriracha wholesale for $1.75/bottle (+shipping). With shipping let's say it's $2/bottle.
http://www.grubstreet.com/2013/11/srira ... -cost.html
That would mean you would have to sell 1,000 bottles of sriracha a month just to pay rent (and not make any money). If you want to make a salary of $24k a year that's an additional $2,000 a month you'll need to pull in so that's 3,000 bottles of sriracha you'll need to sell per month, or roughly 100 a day.
Of course at this point you've not given people any reason to come to your store vs. going to Walmart, and as any small business owner will tell you, going head-to-head with Walmart is business suicide. So you'll need hot sauces that they don't sell there (or at Publix).
Your only real hope of survival is offering something those places don't have. You could order from some place like
http://www.pepperpalace.com, which has wholesale deals. So you order a lot from them, split up the cases, and put it on the shelves.
The general rule of thumb is you need enough cash to pay rent, buy stock, and cover your salary for a year.
Start with Math 101. Figure out how much the rent is.
Let's take one simple example.
At Walmart, you can get a 28oz bottle of sriracha for $3.
http://www.walmart.com/ip/10452869?wmlspartner=wlpa&selectedSellerId=0&adid=22222222227026478588&wl0=&wl1=g&wl2=c&wl3=42529859312&wl4=&wl5=pla&wl6=81187145672&veh=sem
According to this website, you can buy 28oz bottles of sriracha wholesale for $1.75/bottle (+shipping). With shipping let's say it's $2/bottle.
http://www.grubstreet.com/2013/11/sriracha-wholesale-cost.html
That would mean you would have to sell 1,000 bottles of sriracha a month just to pay rent (and not make any money). If you want to make a salary of $24k a year that's an additional $2,000 a month you'll need to pull in so that's 3,000 bottles of sriracha you'll need to sell per month, or roughly 100 a day.
Of course at this point you've not given people any reason to come to your store vs. going to Walmart, and as any small business owner will tell you, going head-to-head with Walmart is business suicide. So you'll need hot sauces that they don't sell there (or at Publix).
Your only real hope of survival is offering something those places don't have. You could order from some place like http://www.pepperpalace.com, which has wholesale deals. So you order a lot from them, split up the cases, and put it on the shelves.
The general rule of thumb is you need enough cash to pay rent, buy stock, and cover your salary for a year.