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    3 Replies Latest reply on Sep 16, 2010 5:12 AM by Wholesalers

    New Candy Store in IL

    medellinx Newbie
      Hi, I just recently started my own business in IL. It is a small candy shop located in a great location, meaning there is not another store like it in the vicinity, we have been getting great feedback and people simply like what they see.

      I opened pretty much with my the savings that I had on the side, I saw an opportunity and took it. Since we have been opened since May, we keep seeing the revenue grow, most of the money that we are making we are putting right back into the store for new products and pretty much for advertising.
      Since it's a new company it was expected a loss specially in the first year, at least that's why I keep hearing so most of the money that I am losing, I am covering it with my own paycheck from my daily job however since the holidays are coming and people specially here in IL tend no to take walks to the candy store too much during the winter I am expecting a decline in sales at least during the holiday.

      My question is this? what would be my next step, it is getting harder to keep the store open using my paycheck the store was open as a sole proprietorship and i am not sure it it would be an option to get loans or where to even get one.

      Thanks for your feedback.
        • Re: New Candy Store in IL
          Tracker

          Ruben:

          You have three primary options to increase your cash to keep your doors open - cut costs, increase sales, and get outside funding.

           


          I can't give you too much help with cutting your costs without seeing your books, but there is often more room to cut costs effectively than most start-ups realize. I challenge you to take a hard look at your monthly expenses and make a true assessment if the costs are a "need" or a "want". Even some of your "fixed" costs may have some flexibility.

           


          To increase your sales, you will need to look at the effectiveness of your advertising, branding and marketing efforts. Is your message consistent? Is it in line with your image and perception the public has about your candy shop?

           


          You mention that people in your area won't be walking to the candy store during the holidays. Why do they need to walk to you for you to sell candy? Holidays are a great time for people to buy gift baskets and stockings full of candy. Do you have a web site? Do you sell online? Are you involved in any co-marketing campaigns with other gift shops?

           


          Are you only doing passive advertising (ads, radio spots, etc...) or are you participating in any active campaigns (sampling with your target market)? I used to own a fine-dining restaurant. One of our best (best results, lowest cost) campaigns was taking samples around to different businesses with trifolds of our menus and sometimes discount offers. We were able to gauge customer reaction on the spot, build a bond by getting to know them personally and get their attention to educate them about our restaurant. I bet candy would be a big hit doing the same. Just make sure that if you are handing out samples, that you are also handing out flyers, business cards or some other marketing piece with your product.

           


          Regarding funding, you will probably need some form of a business plan, have strong credit scores and collateral. If your business isn't producing a profit yet, a lender / investor will want to see a realistic projection of when and how it will become profitable and that you have an excellent credit history with collateral to cover the loan if you don't hit your projections.

           


          I recommend you check out Business Money Today.com and get in touch with a community member here that goes by the nickname, "phanio". He is excellent with funding.

           


          I hope this helps.

           


          Doug Dolan

           

          Small Biz Break (http://smallbizbreak)

           

          The Solopreneur's Guide (http://thesologuide)
          • Re: New Candy Store in IL
            LUCKIEST Guide
            New Candy Store in IL, Welcome Ruben. We love IL, especially Chicago.

            Great answer from Doug. Do you know about SCORE. SCORE is FREE and can help you.
            • Re: New Candy Store in IL
              Wholesalers Wayfarer
              It is quit normal and it usually happends when someone start a new business becuase everybody knows that the purchasing power or people has become less in the previous days so all business ecperience some loss but it does not mean to close the business because as the time pass you will become succeeded to make some permanant customers and become populor in the town so just be patient and wait as it seems that the world has started to overcome the economic recession