Q: Can you show me what a retailer's financial statement might look like so I can put together a business plan to present to my bank?
A: Of course. Here I do show a "typical" retailer's year-end financial statement (P&L). Many retailers don't realize the importance of maintaining clean financial records during the life of their business. This section will show you a typical retailer's financial statement and explain the importance of keeping good numbers in the event that you need to borrow money or decide to sell your business some time in the future. The year end profit and loss statement shown here can be used as a guide for you to understand the percentage of gross sales a particular category of expenses should approximate. This is a guide only, but comes from an actual retail store. You need to begin to get comfortable with some of the more important "percentage factors" like rent @ 7% of gross sales and payroll at 15%. Your expense percentages (in relation to total sales) in any category may be more or less, depending on the business you are in, but the relationship to your gross sales and the fact that you know that there should be a relationship is what is important. Be prepared and look like a pro!
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