Question

You've been running a gift store at your local mall for the past 20 years. In the last five years, you've watched your sales drop by 50%. You want to stay in business as long as possible, but you know that to do that requires you to spend every penny wisely. There's not much you can do about declining sales, but you can stretch out your existing money for as long as possible. Your biggest concern right now is with:

Answer 1

To stay in business with declining sales, the gift store owner should focus on maximizing the use of existing money. This can be achieved by reducing expenses such as rent and inventory costs. Strategic decisions such as negotiating with the landlord for rent reduction or exploring relocation options to a smaller space can help the store stay afloat.

Step-by-step explanation:

The biggest concern for the gift store owner is to maximize the use of existing money. Given the declining sales, it is crucial for the owner to spend every penny wisely. One way to achieve this is by focusing on reducing expenses such as rent, utilities, and inventory costs. The owner can negotiate with the landlord for a rent reduction or explore options of relocating to a smaller space. By making strategic decisions to minimize expenses, the gift store can stay in business as long as possible with the existing resources.