Barriers in opening a shop

Week 44.1  Barrier in opening a shop

Security issues:

Very few people are selling silver retail, if you are you may become an easy identification and target. Gold industry has been around for many years but silver is just starting, a lot of security issues already been addressed by people in gold smith industry. We still lack of experience in dealing with security.

Economy Issues:

There is a high sunken cost in having a retail shop.

Renovation + Setup:- RM100,000/-

Rental + Monthly expenses: RM5,000 x 12 = RM60,000/-

Salary Loss (quit Job to do business) : RM100,000/= (for easy calculation)

Total start-up cost for 1^st year :- RM260,000/- wow!

This does not include the inventory yet.

OKlah, before I begin when I do the calculation, already closed shop already.

At the moment better buy RM260,000/- of silver sell at 1-2% profit margin also much better than open shop lah.

Nevertheless, if you can get a monthly net profit of RM10,000 to RM15,000 per month from the shop, then can considerlah. But to have RM10,000 nett profit, your monthly sales has to be around RM1,000,000 per month or RM50,000/- per day if you open 20 days. That about 400 – 500 oz per day. Must have a working capital of RM600K but preferably RM1 millionlah.

That just a rough calculation, I personally don’t 1 2 be tied down inside a shop lah. Boring lah. Furthermore, where got so much $$$ to spend. I shall leave it to others to explore. The first few who made it will be driving Mercedes or BMW (Bring me women) in few year down the road.