How long do you think my sister is going to stay in business based on this information?

Question

My sister owns a shoe&purse boutique at a local mall and she was about to go out of business last year until the mall decided to strike a deal with her & give her next to nothing for rent. The mall did this apparently because alot of tenants were closing down & they were desperate to keep stores from closing and to make the mall appear less vacant. I never really heard of anything like that before, but I was happy for her since she said this new deal with the mall would mean staying in business at least for another year.

Although she isn't making a huge profit, she is still making some profit since she works alone and has no employees to pay for, and of course because of cheap rent. So my question is do you think it's wise for her to stay there and make some profit since rent is low? And how long will the mall give her this kind of deal for the rent costs?

I'm interested in knowing this because she asked me to partner up with her but I'm skeptical. What do you think?

Answer 1

Maybe you should help her start up a website to also sell the merchandise. That way you can make profits off of both endeavors! You run the website and she could run the store and both of you split the profits. Hope this helps.

Answer 2

When i analyze the situation i found out one thing is missing. The backbone of every buying and selling business is to sell more. I am missing this from your statement. You didn't make mention of if your sister is really making the level of sales that is expected.

The fact that most of the tenants are closing to leave the mall also tells me that, business is not really flourishing in the mall.

Now what you should look at is, if your sister is really making very good sales. If not, then you two will have to find means to improve on sales.

I don't think a real business woman would be happy for the fact that her business would stay at least for a year. You need to have a long term planning for your business. not just a year and then what next?

Answer 3

What is point of partnering with her if she is only just surviving because the rent has been reduce significantly.The answer is obvious unless you have something to contribute to the business.