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Saving For Retailing's Rainy Days

Monday, March 2, 2009

(GIFTBEAT)

Into each store owner's life, some rain must fall. Lately that precipitation has mounted to record levels. Below, William Wen, a Seattle-based personal banker with U.S. Bank and owner of The Papery in Edmonds, WA discusses goals for saving for retailing's current and future rainy days.

For retailers, there are no easy answers in this unstable economy. As business owners, that's a risk that you and I take. We can also realize rewards from business ownership. One money management strategy that a lot of retailers forget is just to save. We are not known as a nation of savers, like countries in the European Union and Asia. If you have the opportunity to set aside funds for a rainy day, you should. Considering current economic situations, a good annual range is an 8% to 12% savings rate. The money should probably be invested in a shorter-term CD or a money market account so it can remain liquid.

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While coloring books and related products were all the rage in Stationery Accessories last year, this year it's back to basics: note cards, journals and planners.

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