What Is the Importance of Retail Sales?

Greg Ray - Platinum Executive Team LeaderRetail Pays the Bills…

Do you know what one of the most common factors contributing to new home business startup failures?

Cash flow…

As new entrepreneurs begin to build their new businesses there are investment costs.

These not only include the initial start-up costs, but also the costs of product inventories, advertising and other promotional costs, web hosting and other online marketing tools, and maybe even the cost of office or store front space.  These costs vary with the type of business, but every opportunity will have them.

Most new home business owners are working to build their opportunity part time while still working at their regular 9 to 5 job.  Most do not have an investment “nest egg” built up to fund their venture.  Their new enterprise is not yet very profitable, so where does the cash come from to pay for these needed costs?

Usually from their home budget which is already stretched thin.

The fact is most new home businesses don’t fail because the business does not work…  they fail because the owner runs out of the cash needed to make it work.

A lot of home business opportunities offer substantial “retail” profit margins on the sale of physical products by their distributors.  Examples of this model include Avon, Mary Kay, and Herbalife.

Another model you will see features like “fast start bonuses” paid for generating new customers or distributors.

Sometimes new product consumers might be placed on an “autoship” program which guarantees future orders.  In that way, distributors are not having to “resell” their customer each month.

Operating without “retail profits” can be a “catch 22…”  you can’t earn until you build your customer base or a team…  but you can’t build those without the cash necessary to invest in your business.

You home business venture, whatever that is, needs to have some type of retail sales built into the program to fund itself…  that just goes without saying.  Retail sales pay the bills!

Look for a business which offers the advantage of retail profits which gives the business owner the cashflow that can then be re-invested in their business to grow it even bigger AND faster.

Next we will discuss the real power of a business based on the network marketing model… building a team of marketers to do exactly what you are doing.  Click the “Next” button below to go on…

 

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