Opportunity to expand my business

amother

Tue, Jun 23 2020, 6:29 pm

I have a small home business where a sell a certain type of goods that I rather not say to stay anon. For arguments sake let's say its clothing. I started out catering to a lower end crowd but over the years brought in some more brands to branch out a bit more. Someone approached me recently and asked me if im interested in a partnership where shell come in and connect me with a lot of higher ends designers etc and shes be in charge of the ordering and the headaches- which is what I would need her for. Technically in today's day and age I can reach out to anyone I need on my own. I think to make this work ill need to make space for nore merch (I have an empty room currently but it would need to be renovated to accommodate) and id need to do a big advertising campaign. My biggest hesitation of all the things im my mind that can possibly go wrong is that ive seen yad hashem in regard to parnass so so so many times in the span of owning this business. Im kinda wary to believe that expanding will increase my bottom line (cuz ill have more overhead) ive seen how months when my husband did well in thr stock market, I made less. Months when I did really well, we had a large expense (sometimes good ones like moving etc) just trying to gain clarity and insight. Anyone have anything to help me with the decision?

ellacoe

Tue, Jun 23 2020, 7:13 pm

Start with the numbers. Do the numbers make sense. You will have to invest in improvements and you will be paying someone else and having a partner. Advertising expenses as well should be considered. Don't know enough about the business to say what else, but make a list of all of them. And then work the numbers. Is there going to be an increase in profit? Its not about increasing sales its about increasing profits. It is possible to increase your sales but not your profits. Once you determine that there are going to profits, take into consideration what this entails, I.e. having a partner, doing improvements, other changes, hours etc. Are these things that you want to do? Are they worth the increase in profits?