A national competitor closed this location due to poor performance.
We had already been in talks with the landlord to lease the building.
On June 20th, we got the keys.
We worked like crazy to renovate the waiting room, the shop, and get it up to our standards.
10 days later, on July 1st, we were open for business.
Here’s what happened:
We started off slow. $114 on the first day.
A little over $5k for the first week. Then it started to pick up.
$7k the second week $15k the third week.
Now we’re cooking. We dip to $13k in week 4
Then shot up to $20k last week.
This week, we should do another $20k
For perspective, our 35 stores average $30k/week.
Our first round of direct mail just dropped a few days ago
Plus, we don’t even have signage on the building yet. It’s all temporary banners.
This store should be $30k per week by September.
Sales are great, but how much money did we make (or lose?)
We finished July at $53k in revenue.
COGS was $12k and operating expenses was $40k, leaving us breaking even for the month.
Now there’s a bunch of asterisks on this:
We negotiated 30 days of free rent which saved us $7,000.
There were a lot of one-time expenses for computers & building repairs that hit in July. We didn’t charge our “corporate overhead” fee to ourselves.
It’s hard to analyze business profitability in the early days because of one-time charges or discounts. This is why I’m mainly focused on sales.
This is only the 3rd shop we’ve opened from zero.
We plan to do 5 more new stores over the next 18 months so it’s exciting to see early success.
Most people get stuck analyzing failed locations like this forever.
We saw an opportunity and moved fast.
It shows what’s possible when you have a great team & systems in place.
Want to see the exact cash flow analysis I run on every new location?
I’m going to be sharing it exclusively with 💵 Cash Flow Club 💵 members on Monday.
For just $29/month, you get one real-world strategy every week that I’m actively using inside our 8-figure franchise portfolio to drive more sales, cut expenses, and improve cash flow.
Cheers!
Brian
