What is the cost of launching a concept store? What are the key expenses? Is it feasible to do so on a modest budget? Which expenditures are superfluous?
This guide will provide you with essential information to assess how much it really takes to embark on this journey.
And if you need more detailed information please check our business plan for a concept store and financial plan for a concept store.
How much does it cost to open a concept store?
What is the average budget?
Opening a concept store typically requires an investment ranging from $20,000 to $500,000 or more, depending on various factors.
Let's delve into what influences this budget most significantly.
The location of your concept store plays a crucial role in determining costs. Renting space in a high-traffic, fashionable district will cost substantially more than in a quieter, less central area.
The store's theme and the type of products you plan to sell also impact the budget. High-end or niche products may require a larger initial investment compared to more common or mass-market items. For instance, sourcing unique or artisanal products could be more expensive.
When it comes to budget per square meter, you can expect to spend between $1,500 to $7,000 per sqm for a concept store space, depending on location and store size.
Interior design and store layout are crucial for a concept store and can be a major cost factor. The cost can range from a few thousand dollars for a basic design to hundreds of thousands for a bespoke, designer interior.
Acquiring the necessary permits and licenses to operate a concept store can vary by location and store type, ranging from a few hundred to several thousand dollars.
The initial stock of products will depend on your store's focus. This could range from tens of thousands to hundreds of thousands of dollars, especially if you're stocking high-value items or a large variety of products.
Marketing and branding are essential for a concept store. Budgeting for a marketing campaign, including online advertising, branding materials, and events, can require several thousand dollars or more.
Is it possible to open a concept store with minimal investment?
While opening a concept store typically requires significant investment, it is possible to start on a smaller scale.
For a minimal investment approach, consider a pop-up store or an online-only presence to save on rent costs.
Opt for a smaller range of products, focusing on a niche market. This could reduce initial stock costs to between $5,000 to $25,000.
For interior design, use DIY solutions or second-hand fixtures to keep costs low, potentially spending only a few thousand dollars.
Marketing can be done primarily through social media and community engagement, with a small budget of a few hundred to a couple of thousand dollars for basic branding and online ads.
In this scenario, the initial investment for a small-scale concept store could range from $10,000 to $50,000.
However, keep in mind that starting small may limit the store's visibility and growth potential. As the business expands, reinvesting profits into a larger space, better product range, and more comprehensive marketing will be key to success.
Finally, if you want to determine your exact starting budget, along with a comprehensive list of expenses customized to your project, you can use the financial plan for a concept store.
What are the expenses to open a concept store?
Please note that you can access a detailed breakdown of all these expenses and also customize them for your own project in the financial plan for a concept store.
The expenses related to the location of your concept store
For a concept store, selecting a location that aligns with your brand's image and target audience is crucial. Ideal locations are in trendy neighborhoods, near cultural hotspots, or in areas with a high concentration of your target demographic. It's important to choose a spot that's visible and easily accessible to pedestrians and drivers.
The store should be in a location with good signage opportunities and easy access from main roads or public transport. Proximity to other complementary businesses can also increase foot traffic.
Also, consider the ease of receiving merchandise and the storage needs for your inventory. Proximity to suppliers or convenient delivery options can reduce operational costs.
If you decide to rent the space for your concept store
Estimated budget: between $4,000 and $15,000
Leasing a space will involve initial costs such as security deposits and possibly the first month's rent upfront.
Security deposits, often equivalent to one or two months' rent, are held by the landlord to cover potential damages or non-payment and are typically refundable. For instance, if your monthly rent is $3,000, you might pay around $6,000 initially for the deposit and first month's rent. Budgeting for the next three months’ rent, totaling $9,000, is also advisable.
It's crucial to understand the lease terms, including its duration and conditions regarding rent increases. Legal fees for lease review might range from $400 to $1,200.
If a real estate broker was used to find the property, their fees are usually covered by the landlord or property owner.
If you decide to buy the space for your concept store
Estimated budget: between $150,000 and $800,000
The cost of purchasing property varies based on size, location, and condition. Closing costs, including legal fees and title searches, typically range from $7,000 to $25,000.
Renovation costs to adapt the space for a concept store should be budgeted, possibly around 10-20% of the purchase price, or between $15,000 and $160,000.
Professional services for property assessment could cost up to $4,000.
Property taxes and insurance are ongoing expenses. Taxes can vary widely, usually between 3% and 10% of the property's value annually, and insurance costs might range from $200 to $2,500 per month.
Is it better to rent or to buy a physical space for your concept store?
Renting offers lower initial costs and more flexibility, but may include less control over the property and potential rent increases. Buying provides ownership, fixed payments, and potential tax benefits but requires a significant initial investment and maintenance responsibilities.
The decision should be based on your financial situation, brand strategy, and the local real estate market.
Here is a summary table to help you decide.
| Aspect | Renting a Concept Store Space | Buying a Concept Store Space |
|---|---|---|
| Initial Costs | Lower upfront investment | Higher upfront cost |
| Location Flexibility | More flexibility in choosing location | Fixed location |
| Maintenance Responsibility | Generally landlord's responsibility | Owner's responsibility |
| Quick Startup | Faster to establish | Potentially longer acquisition process |
| Customization | Limited by lease terms | Full control over customization |
| Stability and Branding | Less stable, variable branding | More stable, better for long-term branding |
| Tax Benefits | Limited deductions | More tax advantages |
| Asset for Financing | No collateral value | Property as valuable collateral |
| Market Risk | Adaptable to market changes | Higher exposure to market risk |
| Long-Term Investment | No equity growth | Potential for equity increase |
| Category | Estimated Cost |
| Design and Layout | Initial investment in design and layout is crucial for the concept store. |
| Shelving and Display Units | $15,000 - $40,000 (depending on materials and complexity) |
| Lighting | $5,000 - $20,000 (depending on quality and design) |
| Point-of-Sale (POS) System | $2,000 - $10,000 (including hardware and software) |
| Furniture | $5,000 - $20,000 (for customer seating and decor) |
| Security Systems | $3,000 - $10,000 (including cameras and anti-theft devices) |
| Sound System | $1,000 - $5,000 (for a personalized customer experience) |
| Café or Refreshment Area | $10,000 - $30,000 (optional) |
| Prioritization | 1. Shelving and Display Units, Lighting, and POS System 2. Furniture and Security Systems 3. Sound System (for a personalized experience) 4. Café or Refreshment Area (optional) |
Initial Inventory
Estimated Budget: from $15,000 to $40,000
For a new concept store, your initial inventory budget should typically range from $15,000 to $40,000. This amount can fluctuate based on the size of your store and the diversity of products you plan to offer.
The types of products essential for a concept store primarily include a mix of clothing, accessories, home decor, and unique gadgets.
Key inventory items could be designer clothing, handcrafted accessories, innovative gadgets, artisanal home goods, and specialty books or art pieces, depending on your store's theme.
Your list should also consider the presentation and layout of products, which is crucial for a concept store's appeal.
Don't overlook the importance of packaging materials like elegant bags, boxes, and wrapping paper, which are vital for enhancing customer experience and brand image.
When it comes to choosing brands and suppliers, a balance between well-known designers and emerging local artists can be beneficial. Established brands might bring a sense of reliability, while local artists offer uniqueness and exclusivity, which are highly valued in a concept store.
Selecting inventory items for your store involves considering factors such as product uniqueness, brand reputation, supplier reliability, and customer preferences.
Investing in unique and high-quality products can significantly enhance the store's reputation and customer loyalty. It's also important to consider the exclusivity of the items to maintain a distinctive store image.
Negotiating with suppliers is crucial. Building strong relationships, purchasing in bulk, and making timely payments can lead to better deals. However, be mindful of the store's theme and customer preferences when making bulk purchases.
For non-perishable items like home decor, larger quantities are usually more cost-effective, whereas for fashion and seasonal items, buy according to trends and sales projections.
To minimize overstocking and manage costs effectively, robust inventory management is essential. Regularly review stock levels, track popular items, and adjust orders accordingly. A system like FIFO can be implemented for items with limited shelf life or trend-based products.
Remember, effective inventory management in a concept store is about balancing the uniqueness and trendiness of your products with the operational efficiency of your store.
Marketing, Branding and Communication
Estimated Budget: $7,000 to $12,000 for the initial months of operation
In the dynamic world of concept stores, branding, marketing, and communication are crucial elements for establishing a strong presence.
Branding in a concept store is about creating an immersive experience that reflects your store's ethos. It's not just about the logo or the storefront design. It's about curating a space that resonates with your target audience, from the layout of your products to the ambiance created by lighting and music.
Do you envision your concept store as a hub for cutting-edge fashion, a showcase for artisanal crafts, or a blend of modern design and technology? This branding direction influences everything from the staff uniforms to the style of your product displays.
Marketing is your tool to broadcast your store's unique offerings to the world. A concept store thrives on its uniqueness, and your marketing efforts should highlight this. It's not enough to simply open your doors and wait for customers. You need to actively draw them in through engaging campaigns.
Effective marketing for a concept store might involve captivating Instagram stories featuring exclusive product drops, or Pinterest boards that showcase your store's lifestyle. Local SEO is also key. Your store should pop up when someone searches for "unique shopping experiences near me".
However, avoid overspending on broad-scale advertising. Focus on the local and online communities that align with your store's concept.
Communication in a concept store is about building a narrative around your products and creating a connection with your customers. Whether it's through storytelling in your product descriptions or engaging with customers through social media Q&As, good communication fosters a community that is invested in your store's concept.
Now, regarding your marketing budget. For a concept store, allocate around 3% to 12% of your revenue. Starting with a modest budget is prudent for a new store.
Your budget should be carefully distributed. Consider investing in high-quality visual content for your online platforms, an engaging and user-friendly website, and local community engagement, like pop-up events or collaborations with local artists.
Be flexible with your budget. You might spend more initially for a launch event, then adjust to a consistent monthly investment. Monitor the effectiveness of your strategies - if your online presence is drawing more customers, allocate more funds there.
Staffing and Management
Estimated Budget: $15,000 - $25,000 for the first month
Opening a concept store involves various staffing and management expenses that vary based on the store's size, the diversity of products and experiences offered, and the operating hours.
Let's delve into the details.
Running a concept store single-handedly is feasible but challenging. A concept store requires not just sales and customer service during the day, but also inventory management, visual merchandising, and administrative tasks. These responsibilities can be demanding for one person, making it wise to hire a small team for efficient operations and a balanced workload.
Essential positions in a concept store include a store manager, who oversees the overall operations; sales associates, who engage with customers and handle sales; and a visual merchandiser, who ensures the store's aesthetic and theme are consistently appealing. These roles are fundamental from the outset to ensure a high-quality customer experience and smooth operations.
As your concept store expands, consider adding roles like a marketing specialist, an inventory manager, or additional sales staff. These positions can be filled once your business stabilizes and you have a better grasp of your specific needs.
Regarding salaries, it's crucial to compensate staff from the beginning of their employment. Postponing payment can lead to discontent and high staff turnover.
Beyond salaries, budget for additional costs such as taxes, insurance, and employee benefits, which can increase your staffing costs by an additional 25-35%.
Training is also vital in a concept store, particularly in customer service, product knowledge, and store management systems. Initially, allocate a budget for this training, which can range from several hundred to a couple of thousand dollars, depending on the complexity and scope of the training required.
This investment in your team not only improves the effectiveness of your store operations but also contributes to the long-term success of your business. A well-trained staff can significantly enhance the customer experience and the store's reputation.
| Job Position | Average Salary Range (USD) |
|---|---|
| Store Manager | $40,000 - $60,000 |
| Sales Associate | $25,000 - $35,000 |
| Visual Merchandiser | $35,000 - $50,000 |
| Inventory Manager | $45,000 - $65,000 |
| Customer Service Representative | $30,000 - $40,000 |
| Buyer | $50,000 - $70,000 |
| Marketing Coordinator | $40,000 - $55,000 |
Please note that you can access a detailed breakdown of all these expenses and also customize them for your own project in the financial plan for a concept store.
Professional Services
Beginning with a lawyer, for a concept store, the focus goes beyond just the basic business setup.
A lawyer can help you understand retail-specific regulations, such as consumer protection laws and intellectual property rights, crucial if you're planning to sell unique or branded products. They can also aid in drafting vendor contracts and in negotiating leases for your retail space, which may require specific terms related to display areas or signage. The cost for legal services in this context could range from $3,000 to $6,000 initially, depending on the complexity of your needs.
Design and branding consultants are particularly valuable for a concept store.
They can assist in creating a compelling store layout, selecting a cohesive product line, and developing a strong brand identity that resonates with your target market. Their expertise in retail trends and consumer behavior can be invaluable. These consultants may charge anywhere from $100 to $300 per hour, based on their experience and the scope of your project.
Bank services for a concept store are crucial for managing finances, including business accounts, loans, and investment advice. Efficient payment systems are also necessary, as a concept store may have a diverse range of products and prices. The costs will vary depending on the bank and chosen services, but they are essential for smooth financial operations.
Insurance for a concept store should cover risks like theft, damage to expensive inventory, and general liability. Given the unique nature of the items and the potential for high-value goods, insurance costs might be higher than average, potentially ranging from $1,500 to $6,000 annually, depending on the level of coverage needed.
Furthermore, a concept store may require ongoing marketing and promotional efforts. This includes social media advertising, event hosting, and collaborations with designers or artists. While some of this can be managed in-house, outsourcing to marketing professionals could be a wise investment, with costs varying based on the strategies employed and the frequency of campaigns.
| Service | Description | Estimated Cost |
|---|---|---|
| Lawyer | Handles retail-specific regulations, intellectual property, vendor contracts, lease negotiations. | $3,000 - $6,000 |
| Design and Branding Consultants | Assists in store layout, product line selection, brand identity, understanding retail trends. | $100 - $300 per hour |
| Bank Services | Business accounts, loans, investment advice, efficient payment systems. | Varies |
| Insurance | Covers theft, damage to inventory, general liability. | $1,500 - $6,000 annually |
| Marketing and Promotion | Social media advertising, event hosting, collaborations. Can be in-house or outsourced. | Varies |
Ongoing Emergency Funds
Estimated Budget: $20,000 to $100,000
When you're opening a concept store, having an emergency fund is absolutely crucial.
It's like having a safety net when you dive into the world of unique and innovative retail; you hope you won't need it, but it's essential for your peace of mind and security.
The amount you should set aside can vary, but a common rule of thumb is to have enough to cover at least 3 to 6 months of your operating expenses. This typically translates into a range of $20,000 to $100,000, depending on the size and scale of your concept store.
Remember, these figures can fluctuate based on your location, rent, utilities, employee salaries, and the cost of curating and stocking your unique product inventory.
One of the main reasons you need this fund is the unpredictability of cash flow in the concept store business. For example, you might face sudden shifts in customer preferences, unexpected maintenance costs for your store, or economic fluctuations that affect consumer spending. These situations can significantly impact your cash flow if you're not prepared.
To avoid these potential challenges, it's wise to not only have an emergency fund but also to manage your product inventory efficiently.
Overstocking can lead to excess storage costs and clearance sales, while understocking can result in missed sales opportunities. Regularly reviewing and adjusting your inventory based on market trends and customer feedback can help you avoid these pitfalls.
Additionally, building strong relationships with your product suppliers can be a lifesaver. Sometimes, they might be willing to offer discounts or extend flexible payment terms if you're in a tight spot, which can help with cash flow challenges.
Another key aspect is to keep a close eye on your finances. Regularly reviewing your financial statements helps you spot trends and address issues before they become major problems.
It's also a good idea to diversify your product offerings and customer experiences. For instance, if you're primarily selling fashion items, consider adding art installations, workshops, or unique in-store events to create a captivating shopping experience that sets your concept store apart.
Lastly, never underestimate the power of excellent customer service and community engagement. Satisfied customers are more likely to return to your concept store and spread the word about your innovative products and shopping experience, providing you with a stable source of revenue and a dedicated customer base.
Franchise Fees
Estimated Budget: $30,000 to $100,000
Only if you decide to join a concept store franchise!
On average, you might expect to pay anywhere from $30,000 to $100,000 in franchise fees for a concept store. However, these figures can vary based on the concept store brand's recognition, market presence, and the level of support they provide.
The concept store franchise fee is typically a one-time payment. This fee is remitted to the franchisor in exchange for the privilege to operate under their brand name and gain access to their unique business model, training programs, and ongoing support systems. Nevertheless, this isn't the sole financial commitment, as there are ongoing expenses like royalty fees, marketing contributions, and other operational costs.
It's important to note that not all concept store franchises structure their fees in the same manner. Some may require higher upfront fees but lower recurring expenses, while others may have the opposite arrangement.
Regrettably, negotiating the franchise fee is rarely an option, as these fees are generally standardized across all franchisees within a specific concept store brand.
However, there may be some room for negotiation in other aspects of the franchise agreement, such as the contract duration or specific terms and conditions. Engaging with a franchise attorney or consultant can prove beneficial in comprehending and potentially negotiating these contractual terms.
Regarding the timeline to recoup your investment and begin generating profits, this can vary significantly. It hinges on factors such as the concept store's location, the local reception of the brand, your business expertise, and the prevailing market conditions. Typically, it may take anywhere from several years to a decade or more to realize a profitable return on your investment in a concept store franchise.
Please note that you can access a detailed breakdown of all these expenses and also customize them for your own project in the financial plan for a concept store.
What expenses can be removed from the budget of a concept store?
Managing your expenses effectively is crucial for the long-term success of your concept store.
Some costs may be unnecessary, others could be areas where you're overspending, and certain expenses can be delayed until your store is more established.
Firstly, let's address unnecessary costs.
A common mistake for concept store owners is overspending on high-end fixtures and elaborate displays. While an attractive layout is important, remember that customers are primarily there for the unique products you offer. Opt for a simpler, functional setup initially, focusing on product quality and customer experience.
In terms of marketing, avoid expensive traditional advertising at first. In today's digital world, you can leverage social media platforms, develop a user-friendly website, and use email marketing to reach your audience effectively and affordably.
Now, let's talk about where concept store owners often overspend.
One area is inventory. It's crucial to balance your stock to prevent overstocking or shortages. Start with a curated selection of products and expand your inventory based on customer feedback and sales trends. This approach will also help in managing your cash flow better.
Additionally, be mindful about hiring. Start with a small, versatile team and expand your staff as your business grows. This helps in reducing labor costs and ensures efficient operations.
Regarding delaying expenses, consider postponing major renovations or store expansions. While it's tempting to create a larger, more impressive space, it's advisable to wait until you have a stable revenue stream. Premature expansion can lead to financial strain and potential debt.
Another cost to delay is the investment in high-tech systems or specialized equipment. Begin with basic essentials and gradually invest in more advanced technology as your business needs evolve. This strategy allows for a more efficient allocation of resources and enables you to stay adaptable to market changes.
Examples of startup budgets for concept stores
To give you a clearer picture, let's break down the budget for three different types of concept stores: a small concept store in a rural area with second-hand fixtures, a standard concept store in an urban setting, and a high-end, spacious concept store with premium fittings.
Small Concept Store in a Rural Area with Second-Hand Fixtures
Total Budget Estimate: $20,000 - $40,000
| Category | Budget Allocation | Example of Expenses |
|---|---|---|
| Fixtures and Fittings (Second-Hand) | $5,000 - $10,000 | Second-hand display racks, shelves, counters |
| Lease and Basic Renovation | $3,000 - $8,000 | Lease deposit, minor renovations, painting |
| Inventory | $4,000 - $8,000 | Initial stock of varied products, local crafts |
| Permits and Licenses | $1,000 - $2,000 | Business license, local permits |
| Marketing and Advertising | $1,000 - $3,000 | Local ads, flyers, basic website setup |
| Miscellaneous/Contingency | $2,000 - $5,000 | Unforeseen expenses, small equipment, utility setup |
Standard Concept Store in an Urban Setting
Total Budget Estimate: $40,000 - $80,000
| Category | Budget Allocation | Example of Expenses |
|---|---|---|
| Fixtures and Fittings (New) | $10,000 - $20,000 | New display units, lighting, modern shelving |
| Lease and Renovation | $10,000 - $20,000 | Prime location lease, stylish interior design |
| Inventory | $8,000 - $16,000 | Diverse product range, some premium items |
| Permits and Licenses | $2,000 - $4,000 | City business license, additional permits for specific products |
| Marketing and Branding | $3,000 - $6,000 | Professional website, social media campaigns, branding materials |
| Staffing and Training | $5,000 - $10,000 | Experienced sales staff, training programs |
| Miscellaneous/Contingency | $4,000 - $8,000 | Insurance, utilities, emergency fund |
High-End, Spacious Concept Store with Premium Fittings
Total Budget Estimate: $70,000 - $150,000
| Category | Budget Allocation | Example of Expenses |
|---|---|---|
| Fixtures and Fittings (Premium) | $20,000 - $40,000 | Luxury display units, designer furniture, advanced lighting system |
| Lease and High-End Renovation | $25,000 - $50,000 | High-profile location, custom interior design, high-quality materials |
| Exclusive Inventory | $15,000 - $30,000 | High-end products, exclusive lines, designer items |
| Permits, Licenses, and Insurance | $5,000 - $10,000 | Comprehensive insurance, specialized permits for luxury items |
| Marketing and Premium Branding | $7,000 - $15,000 | High-end marketing campaigns, professional branding, exclusive events |
| Staffing and Expert Training | $8,000 - $15,000 | Highly trained sales professionals, specialized product training |
| Miscellaneous/Contingency | $10,000 - $20,000 | Luxury small wares, contingency fund for unforeseen expenses |
How to secure enough funding to open a concept store?
Concept stores typically secure funding through a combination of personal savings, loans from financial institutions, and contributions from family and friends. Due to their unique and often niche market appeal, concept stores might not draw the attention of larger investors such as venture capitalists, who generally invest in more scalable, high-growth industries.
While grants are available for various business types, they are less common for retail ventures like concept stores, as these grants often target sectors such as technology or healthcare.
In securing a loan from a bank or attracting an investor for your concept store, a comprehensive business plan is essential. This plan should include detailed financial projections, market analysis, a description of your unique selling proposition (what sets your store apart), and a well-thought-out operations plan.
It is crucial to demonstrate a deep understanding of your target market and a clear strategy for profitability. Banks and investors will look for a solid grasp of the business's financial aspects, including anticipated revenues, expenses, and cash flow.
They also seek evidence of your commitment and capability to run the business successfully. This can be shown through your personal experience in retail or collaborations with individuals who have relevant expertise.
Regarding the proportion of the total startup budget you should contribute, it typically varies. Having a personal stake in the business, approximately 20-30%, is beneficial as it indicates your commitment to the venture. Nevertheless, it's not always essential to invest personal funds. If you can convincingly demonstrate your business's viability and your ability to repay a loan, securing funding without a personal financial contribution is possible.
The timing of securing your funds is also vital. Ideally, you should secure financing about 6 months before opening, giving you ample time to set up the store, procure inventory, hire staff, and manage other pre-launch expenses. This period also provides a cushion for any unexpected challenges that may arise.
Finally, expecting to be cash flow positive from the first month of operations is generally unrealistic for most new businesses, including concept stores. It often takes time to establish profitability. Thus, it is wise to allocate a portion of your initial funding to cover operating expenses for the initial months. A common strategy is to reserve about 20-25% of your total startup budget as working capital to sustain cash flow until the business becomes self-sufficient.
You might also want to read our dedicated article related to the profitability of a concept store.
How to use the financial plan for your concept store?
Many aspiring concept store owners find it challenging to present a coherent and convincing case to investors, often resorting to unstructured arguments and poorly organized financial documents.
If you are passionate about launching your own concept store, securing the necessary funding is a critical step. To gain the trust and confidence of potential investors or lenders, you need a professional business and financial plan.
To facilitate this, we've crafted a user-friendly financial plan, specifically designed for the unique dynamics of a concept store business. This plan includes comprehensive financial projections for a three-year period.
Our financial plan covers all crucial financial statements and ratios such as the income statement, cash flow statement, break-even analysis, and a provisional balance sheet. It comes with pre-filled data, including a detailed list of potential expenses, tailored to a concept store's needs. You can easily adjust these figures to align seamlessly with your specific project.
This plan is perfectly suited for loan applications and is designed to be approachable for beginners. No previous financial expertise is needed. The calculations and cell modifications are fully automated. You simply need to input your specific data and make selections based on your business plan. We've streamlined the process to ensure it's straightforward and accessible, even for those who may not be familiar with spreadsheet software like Excel.
In case you face any difficulties or have queries, our team is always on standby to provide assistance and answer your questions at no extra cost. Our goal is to empower you to present a compelling and professional financial plan that can greatly enhance your chances of securing the funding you need for your concept store.
The content provided here is for informational purposes only and does not imply endorsement. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the advice or strategies presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.