Betty Business

Dear Betty,

I own  a retail store on a busy street. Due to the slowing economy and rising overhead costs, some of my retail neighbors are closing.  Sales are OKor me, we are lucky to get a lot of foot traffic,  I want to remain in business. How can I renegotiate my lease and stay in business?

Dear Negotiator,

No landlord wants to see their block empty! The first rule of negotiation is to be prepared. Know the current market rent.  The yearly cost is generated by multiplying the total square footage by the cost per square foot.  Divide it by 12 for a monthly amount.  For example, a 200 square foot location at $30 per square foot  would be $7,000 for the year or $583.33 per month. 

Other factors to consider:  Has your rent been paid on time? How long have you leased from him/her? How are your sales? Build a compelling case for yourself. Possibly build a longer lease with sliding scale for a moderate yearly increase. Would you be willing to move to a smaller location that is more economical?

If the owner is unwilling to negotiate, you might want to consider sub-leasing space to another successful retail business.  Having someone else in the store may be motivating during these difficult times and bring in a fresh, new customer base.

Please let me know how things work out.

Sincerely,

Dear Betty,

I am a wedding photographer with my own company. I have one employee and am the only means of support for my wife and three children. The trend has been changing and business is way down. In an effort to save money people are using digital cameras and/ or placing disposable cameras on each table. Although, this is a creative way to do things to save money, it doesn’t benefit my company. My wife is an excellent mother and we made the decision that she would stay at home. I would feel like a failure as a husband, father and businessman if my wife was forced to go to work. What should I do?

Dear Not a Perfect Picture:

This is far from picture perfect. Are you paying this employee benefits? Do you have any additional overhead expenses, such as bookkeeping services, employee benefits and advertising benefits? Maybe your wife could be able to assist with the bookkeeping, post on craigslist and/ or make some sales calls. This could increase revenues and also enable her to continue her role as a stay at home mother.  You may also consider expanding your services beyond the wedding market. Since disposable cameras seem to be here to stay, you may want to add them to your list of services. It is also advisable to create relationships with hotels and beauty salons for recommendations. Join a local chamber and post your services online.

Hope the picture is clearer.

Sincerely,

Dear Betty,

My position as a customer service coordinator has been eliminated after working with the same company for 16 years. I am at wits end. I regret being a loyal and dedicated employee for so long. I have sent out my resume and registered at numerous employment agencies. I am not having any luck whatsoever, these jobs are being outsourced out of the country and I am left with little hope. I spend at least four hours per day researching and networking. I am very discouraged and was hoping you have a suggestion.

Thanks,
Sally T.

Dear Sally T:

I would suggest enrolling in some adult education courses. Sally, do you have a hobby? If so, can this hobby be turned into a profit? Ms. Kim Lavine, author of Mommy Millionaire, turned her “kitchen table idea into a million dollars.” This book is a wonderful resource for any business. It is a step by step guide filled with great advice, real life lessons and good humor. Burt’s Bee is another example of a hobby turned into a profitable business. This may be a turning point and what seems like a negative may turn into a positive and profitable venture for you.

Keep me Posted!

Sincerely,

Dear Betty,

I have been at my present position for 6 months and have a problem. I sell accessories to upscale women’s retail shops.  I am paid a salary plus quarterly commission. I have not only met, but exceeded my numbers. First quarter was great; I made a 110% of my goal. I was paid my first bonus check along with a great big “thank you.” Two months into second quarter, after being on target again, I was told the bonus plan was discontinued for the East Coast sales reps. My base salary is lower than I would have accepted had it been a strictly salary position. I am riding around, unmotivated and a trunk full of accessories. I cannot afford my living expenses on my salary alone. Please advise me.

Dear Over-Accessorized:

I am impressed you did so well in a down economy! Kudos to you! It sounds like your bonus is a big part of your income.  The first rule of thumb in sales is bonuses cannot be relied on. Although, they cannot be relied on in sales, they are an important motivational factor. Do you have a contract or offer letter stating the conditions of your employment? If not, my recommendation would be to meet with your supervisor and ask for an increase in your base salary. If that is denied, pick up another accessory line to sell at the same time and work as an independent contractor for multiple companies.

All the Best!

Sincerely