Be your own boss. How good is a retail business? - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property, building net worth and retirement matters




Be your own boss. How good is a retail business?

Reply
 
Thread Tools
  #1 (permalink)  
Old 19-06-2009, 01:08 PM
Senior Member
 
Join Date: Jun 2009
Posts: 67
quek is on a distinguished road
Default Be your own boss. How good is a retail business?

I will share more of what I know (mostly first-hand knowledge from family's small biz) after my lunch appointment.

Husky, please start the ball rolling if you don't mind

Reply With Quote
  #2 (permalink)  
Old 19-06-2009, 03:19 PM
Husky's Avatar
Senior Member
 
Join Date: Jun 2009
Posts: 91
Husky is on a distinguished road
Default

Sure. Just to put things into perspective, most of my experience/knowledge of the retail industry I have comes from working in retail chains. Adbie, I think it will be quite a complete picture after you share what you know about family businesses. Where shall we start? Hmm... Okay, I think I know what.

A lot of my friends have been asking me why don't I start my own retail pharmacy? Be your own boss, they say. Not that the idea didn't cross my mind, but I have yet to come up with a good strategy to compete with the giants.

Typically, people think that the giants tend to charge higher prices compared to private retailers. That doesn't apply for my industry (healthcare) though. Walk into any shopping complex and chaces are you will find at least one pharmacy from W, G or U. The most effective way for a distributor to reach the consumers would be to get the three major chains to sell his product

Pharma companies typically give chain stores better cost prices and also pay extra money to have their products displayed in prominent spots. This allows the chain stores to actually sell things at a lower cost than private retailers.

Not impossible but it's really quite tough. Any good suggestions?


Quote:
Originally Posted by adbie View Post
I will share more of what I know (mostly first-hand knowledge from family's small biz) after my lunch appointment.

Husky, please start the ball rolling if you don't mind


Reply With Quote
  #3 (permalink)  
Old 19-06-2009, 04:09 PM
Senior Member
 
Join Date: Jun 2009
Posts: 67
quek is on a distinguished road
Default

My parents operate a small retail shop in a small neighbourhood. Income used to be quite comfortable, especially considering the fact that they are uneducated. But because they are older now, they have to hire some relatives to help and thus earn less now, but still more than enough to get by.

I said their income is "quite comfortable". How comfortable exactly? I won't give numbers, but I'll say this: if I had started out like them instead of becoming a salaried employee, I would be making more.

Moreover, they had some opportunities to expand their business, start more shops, and even move up the value chain by becoming distributors, wholesalers and even importers. But they didn't. They were in a comfort zone and decided not to take the risks. In hindsight, if they had gone ahead, chances are good that they'll be making even more- some of their suppliers are good examples.

In terms of income, I would say running a small neighbourhood retail shop is almost equivalent to an above-average working professional. And you get to enjoy the freedom and have control to do what you think is right for your business, be it in expansion or in utilising modern management and technology.

Why didn't I take the plunge? I would like to. But thanks to being "educated" and being "too aware" of the (small) risks, my plan is to save up first, just in case. I'm giving myself 5 years.

Being educated also introduce another complication: opportunity cost. Will I miss being a salaried working professional, the monthly pay that's auto-credited in my account, and the annual leave?

Hopefully the fire in my belly does not die.

Reply With Quote
  #4 (permalink)  
Old 20-06-2009, 11:21 AM
Senior Member
 
Join Date: Jun 2009
Posts: 40
bjhchong is on a distinguished road
Default

adbie: you have many options & is currently in your own "comfort zone"... my guess is you don't belong to the "hungry, anything goes" category

If I were you, I'd rather do what I like (while making my salaryman pay) at night & hope something blossom... at least there's no pressure there...
Reply With Quote
  #5 (permalink)  
Old 20-06-2009, 12:26 PM
Husky's Avatar
Senior Member
 
Join Date: Jun 2009
Posts: 91
Husky is on a distinguished road
Default

Quote:
Originally Posted by adbie View Post
In terms of income, I would say running a small neighbourhood retail shop is almost equivalent to an above-average working professional. And you get to enjoy the freedom and have control to do what you think is right for your business, be it in expansion or in utilising modern management and technology.
What's your idea of average working professional income?
Reply With Quote
  #6 (permalink)  
Old 20-06-2009, 12:57 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Husky View Post
What's your idea of average working professional income?
My guess is 7k. And I agree with poster that many retailers - those that survive - earn more than that. The problem is survival.
Reply With Quote

  #7 (permalink)  
Old 20-06-2009, 03:37 PM
too high
Guest
 
Posts: n/a
Default

7k is too high. Its more like 4.5k to 5k which is the CPF cut off for self-employed.
Reply With Quote
  #8 (permalink)  
Old 21-06-2009, 03:07 AM
retailman
Guest
 
Posts: n/a
Default

The safest retail businesses are in neighbourhood shops with low rental but high sales, esp those selling necessity goods like food and groceries. you can find them in "small neighbourhoods" like mentioned above. Not so safe are those with high rentals like in major malls and big town centrals, eg toa payoh central and jurong central. But high rental usually means high human traffic, so unless sales and margin are good, risk is high.
Reply With Quote
  #9 (permalink)  
Old 21-06-2009, 03:16 AM
retailman
Guest
 
Posts: n/a
Default

Sorry, to continue: worst are those with bad locations but high rental, eg some shops in big malls.

So all in all, it's possible to make good income as a small retail operator, but watch your risks. To make big income, you have to expand and move up the chain like what above poster mentioned.
Reply With Quote
  #10 (permalink)  
Old 21-06-2009, 03:35 AM
Senior Member
 
Join Date: Jun 2009
Posts: 40
bjhchong is on a distinguished road
Default

Retailman,

That about boils down to mama-shop or chup huay tiam kind of business, isn't it?...

Thing is, there's easy entry to be reckon with, others will see the easy model & latch on (to your neighborhood)... soon you will be in the middle of a price war, etc., won't you?

Besides, although it would seem a simple model to take. From what I can observe from my friend's parents' shop, it has a wide range of issues to handle: distributor for goods, how to compete with the NTUC/Giant/Carrefour, the 7 days week, customer-loyalty, shop-lifting, vandalism, etc, etc...

Ah well, theorists like me, always have a criticism for any stuff... Perhaps it is a risk thing to take (these competitors and all)... I guess I am a bit chicken-hearted about participating in a retail business.
Reply With Quote
Reply

Bookmarks

Tags
parallel import, sole distributorship

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
MBA Not So Good After All? Salary.sg Income and Jobs 39 11-09-2009 03:01 PM
Business Degrees Not In Demand Anymore Salary.sg Education and Personal Growth 26 14-05-2009 11:27 AM
More students opt for business courses Salary.sg Income and Jobs 0 13-06-2007 02:35 PM
NUS Business School ad Salary.sg Income and Jobs 0 07-05-2007 10:50 PM

» 30 Recent Threads
Compare civil service salary ( 1 2 3... Last Page)
8,950 Replies, 5,183,428 Views
Top degree programmes in SG 2020
0 Replies, 21 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
1,280 Replies, 1,034,372 Views
Which degree is the best return on... ( 1 2 3... Last Page)
55 Replies, 10,389 Views
Enterprise Singapore hiriing... ( 1 2 3... Last Page)
31 Replies, 15,808 Views
Exxon Mobil Equipment tech or... ( 1 2 3... Last Page)
1,779 Replies, 494,906 Views
Pacific Refreshments - The Coca...
3 Replies, 340 Views
Stat board tiers ( 1 2 3... Last Page)
53 Replies, 26,156 Views
Cost of living in singapore will... ( 1 2)
17 Replies, 4,052 Views
anyone working at NCS ? ( 1 2 3... Last Page)
341 Replies, 260,270 Views
OCBC Graduate Talent Programme... ( 1 2 3... Last Page)
189 Replies, 60,343 Views
Pay for digital marketing agencies
5 Replies, 1,574 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
1,791 Replies, 841,343 Views
Job offer from Apple ( 1 2 3... Last Page)
332 Replies, 58,268 Views
Schneider Electric - EGP (Grad... ( 1 2 3... Last Page)
54 Replies, 15,660 Views
Lawyer Salary ( 1 2 3... Last Page)
4,875 Replies, 2,126,649 Views
Anyone work for Casino (RWS/MBS) ?... ( 1 2)
14 Replies, 5,396 Views
DBS Management Associate Program... ( 1 2 3... Last Page)
1,174 Replies, 206,174 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
2,908 Replies, 1,761,075 Views
Bad times?
9 Replies, 969 Views
Standard Chartered International... ( 1 2 3... Last Page)
53 Replies, 50,748 Views
DBS Graduate Associate Program ( 1 2 3... Last Page)
616 Replies, 312,732 Views
DBS BANK Interview replies ( 1 2 3... Last Page)
423 Replies, 252,610 Views
Working at Changi Business Park ( 1 2)
16 Replies, 1,683 Views
UBS Graduate Talent Program ( 1 2 3)
27 Replies, 20,681 Views
Mother looking for a job ( 1 2)
10 Replies, 958 Views
Career as Teacher ( 1 2 3... Last Page)
2,062 Replies, 1,394,053 Views
Anyone jobless for a long time... ( 1 2 3... Last Page)
2,606 Replies, 983,906 Views
ST Electronics ( 1 2 3... Last Page)
388 Replies, 173,637 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 03:25 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2