Thursday, July 24, 2014

Was it worth it?

          The building was opened and sales were on the rise.  Was it worth it?  From a financial perspective, absolutely not.  Virginia could have simply invested $5,000 to $10,000 to clean up the duplex and brought in renters.  The real estate agent who sold us the building pulled no punches. "The people who rent these kinds of places do not live like you do." she said,  "You don't need stainless steel appliances and granite counter tops.  Just make sure that everything is clean and in working order."   Virginia could have made 10 times the rent we were paying her by doing that.  Moreover, the building would be much more saleable as a duplex with renters than as a commercial building.
          As for Judy and me, we'd have to be in business another 50 years to pay for the renovations through our business profits.  Profit margins are extremely thin in the retail industry, more so in the Arts and Crafts retail space.   According to our trade association, the typical quilt shop owner makes less than $10,000 per year.  34% pay themselves nothing at all. 
          If not for the money, why did we do it?  For Virginia, the renovation was something to do and when it was completed, a place to hang out every day.  For Judy, she gets to pursue her art and hang out with other quilting enthusiasts.   Essentially, the building is a super duper sewing room with friends that  give you money.  Plus, she can spend lots and lots of money buying fabric, thread and other things.  For me, I finally had a full time job.   The year I was unemployed was agony.  I'd been working since I was 15 and have derived a good deal of my self worth from my job and being the breadwinner.  I'm not judging anyone who is enjoying their retirement, but I just have to have to have a job.        
          As I mentioned in a previous post, every business large or small must address the same issues.  I'm constantly dealing with marketing, sales, information technology, facilities management, staffing, logistics, finance, customer service, telecommunications, insurance, taxes and regulations.  The explosion of social media has turned me into an Internet marketing maven.  I'm responsible for a Web site and a Web Store.  We're on Facebook, Pinterest, Google+ and of course this blog.  I write and publish online newsletters twice a month.  A great deal of business is done on email, which must be monitored constantly.  I love the intellectual stimulation.  Best of all, there's the basic human joy of setting a challenging goal and achieving it.
          Was it worth it?  Absolutely. 

         

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