Hi there,
I'd like to first off thank you for reading my question.
I'm considering starting a childrens clothing store here in my small community of 43 600 people.
I have no idea where to start when considering my potential clientel.
Here's generaly how I'm thinking,
out of our population from 43 686 people
15% are children and toddlers
20% are teenagers
40% are working adults
25% are elderly
leaving me with approx 6553 children and toddlers as potential clientel
from 6553 I took in consideration that corperate giants such as wal-mart, sears and zellers etc... will take approximatly 65% of that customer base.
leaving us small business owners with 2293 children to dress.
My small business competition consists of approximatly 7 stores not all focusing strickly on my market however this leaves me with approximatly 327.6 children to dress year round.
8 outfits per year (4 per season) possibly more, per child
I figured profit margins to be approximatly averaging 25% (i guessed that one)
therefore I figured my profits to be approximatly $22 per outfit per child, multiplied by 8 outfits per year leaving me with $176 gross profit (-staff rent etc...) giving me a yearly gross profit of approx $57 552.
Now if thats the case i'm deffinatly going in the wrong business because from that $57k i'l probably see about 4k in my pocket.. thats yearly..
Am I on the right track,
pls help
Sincerly,
Gaetan Fortier
gaetanfortier@hotmail.com





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