Core Viewpoint - The article provides a detailed retrospective on the challenges and lessons learned from opening a physical store after working in a large internet company, emphasizing the complexities and pitfalls of entrepreneurship in the physical retail space [3][4]. Group 1: Reasons for Choosing to Open a Store - The company sought to explore side business opportunities due to the downturn in the internet economy and the desire for a second income stream, leading to the decision to open a store in the health and wellness sector [6][7]. - Previous attempts at light-asset projects yielded minimal results, prompting a shift towards a more tangible business model [7]. Group 2: Financial Expenditures - Initial startup costs included a franchise fee of 50,000 yuan, renovation costs of 33,000 yuan, and equipment purchases totaling 35,000 yuan [10]. - Monthly operational expenses comprised salaries, rent, utilities, and high-cost consumables sourced from the franchisor [12][13]. Group 3: Major Pitfalls Encountered - Lack of thorough market research led to uninformed decisions regarding product categories and brand selection, resulting in significant operational challenges [16][17]. - Poor site selection due to ignorance of essential requirements, such as the need for a restroom in a wellness center, compounded by high competition in the chosen area [18][19]. - Inadequate support during the store's renovation phase resulted in critical oversights, such as the failure to install an effective air circulation system [20][21]. - Recruitment challenges arose from a lack of experience in hiring, leading to difficulties in finding qualified staff and managing employee dynamics [23][24]. - Ineffective marketing strategies and reliance on costly customer acquisition methods, such as ground promotions, resulted in unsustainable operational costs [28][31]. Group 4: Key Lessons Learned - The notion of being a "hands-off" owner is unrealistic; active involvement is crucial for the success of a retail operation [35][36]. - The importance of recognizing ongoing operational costs, including time and effort, which often exceed initial financial investments [41][42]. - The low leverage in physical retail compared to internet businesses highlights the need for expertise in the chosen field to ensure success [46]. Group 5: Conclusion - The experience serves as a cautionary tale about the realities of entrepreneurship, emphasizing the necessity of preparation, research, and active management in the retail sector [48][49].

Core Insights - The article discusses the challenges and lessons learned from opening a physical store after working in the internet industry for several years, highlighting the difficulties faced in the process and the importance of thorough market research and personal involvement in business operations [1][3][60]. Group 1: Reasons for Opening a Store - The company sought to explore a secondary income stream due to the downturn in the internet economy and the desire for a second growth curve [5][6]. - Previous attempts at various online projects yielded minimal results, leading to the decision to venture into physical retail [6][7]. Group 2: Financial Overview - Initial startup costs included a franchise fee of 50,000 yuan, renovation costs of 33,000 yuan, and equipment purchases totaling 35,000 yuan [10]. - Monthly operational expenses included salaries, rent, utilities, and high-cost consumables sourced from the franchisor [12][13]. Group 3: Market Research and Location Selection - Insufficient market research led to a lack of understanding of the wellness industry, particularly the specific needs of an acupuncture store, such as the necessity for a restroom [17][20]. - The chosen location was highly competitive, with numerous similar businesses nearby, which was underestimated during the selection process [23][25]. Group 4: Store Setup and Management Challenges - The company faced significant challenges during the store's renovation, particularly regarding air circulation systems necessary for the business [27][30]. - Recruitment of qualified staff proved difficult, with high salary expectations in the local market and a lack of understanding of the necessary qualifications for the role [34][36]. Group 5: Customer Acquisition and Marketing Issues - Initial customer flow was strong, but it declined sharply as the season changed, revealing a lack of effective marketing strategies to maintain customer interest [44][45]. - The reliance on a third-party team for customer acquisition led to high costs and poor customer experiences, damaging the store's reputation [47][51]. Group 6: Franchise System Limitations - The franchisor's operational model was found to be detrimental to the store's profitability, with low pricing strategies that attracted non-loyal customers [53][55]. - The franchise system was perceived as exploitative, prioritizing its own profit over the success of individual franchisees [57][59]. Group 7: Key Lessons Learned - The necessity for active involvement in store operations was emphasized, as absentee ownership typically leads to failure [60][62]. - The importance of recognizing the ongoing costs associated with running a business, including time and effort, was highlighted as a critical factor for success [68][71]. - The article concluded that the skills and experiences from the internet sector are not directly transferable to physical retail, suggesting a need for entrepreneurs to align their ventures with their strengths [80].