Hey frens…I have been feeling “called” for several years to open a local retail shop (with online as well). It’s retail, but with a higher purpose. I recently had an opportunity open up for me: a small space, in a great location, at an affordable lease rate that will allow me to launch, start small, be self-funded, and grow over time.
Am I crazy for considering this during a time of growing inflation, pending doom in our economy, etc.? Or the contrary? Maybe getting started with a modest inventory is the place to be when SHTF, and then I’m poised and ready for the full “great awakening” financial comeback of the middle class?
My store type does not supply “essential” goods, per se, but definitely items that people will seek out to add more joy to their lives (a good thing when times get rough?).
I feel like God is leading me down this path, but I’ve not made the best financial choices in my past, having had horrible timing, so I’m trying to explore all avenues. Any thoughts and ideas are welcomed!!
I have no retail experience, but customers and cash flow are the same in manufacturing as they are in any business. THE BEST TIME TO START IS IN A BAD ECONOMY. If you can survive now think how good it will be when things are flying. Just make sure you survive!
If you don't try, you will never know.
Just don't put all your eggs in one basket, have contingency plans.
My wife and I had a dream to move to Wales, and we eventually did. It was a monumental waste of time and money, but we did it. If we hadn't, we would still be sat here wondering 'what if'.
Every experience is valuable.
Thank you. My wife and I are mulling a similar decision.
I hope you have a more positive outcome than we did, but never let fear rule your judgement.
Prudence is ok, once in a while, but never fear :)
I can’t tell you how many times I felt driven to start a business. My wife probably saved me from making a huge financial mistake more than a couple times back when I was making the decision on instinct and not analysis.
Somewhere along the way I learned to write a critical investment thesis and build realistic financial models to judge whether the business idea had merit. Probably 75% of the ideas I had couldn’t generate enough for me to make a living, the other 25% could, but just barely. And, just barely didn’t meet my bmy wife’s investment requirements.
I did eventually start a service business with a work colleague as a partner. We had a good three year run, but my partner tired of having to constantly hustle to pick up work. My partner had hoped we would attract customers through an online presence. It never happened. All our work came through people we already knew or people we managed to contact personally. It convinced me word that f mouth is a thousand fold more powerful than online.
Sorry for being long winded. I hope this helps in some way.
Critical investment thesis and financial models is what I’m researching next. Thanks for the tips!
Exactly this. And, try pitching the idea to a bank. It will make you have to go through the process of laying out the business mathematically. Plus, if they are willing to lend you money it gives the concept credibility. If they don't, then reconsider. Also I would consult your local SBA who can help you prepare a business plan and they have many seasoned and experienced people to talk through your ideas with.
You are correct, word of mouth is one of the best ways to get business. People will tell everyone (rather quickly I might add) when they receive poor service, poor quality of an item, and when asked for a recommendation on a company for exterior painting, for example, they will spread your name to either call or avoid.
A small store that's relatively off the grid, meaning no website, online ordering, or online purchases, could be the saving grace for people in your area who refuse digitial currency or the "vaccine" passport social credit model they're still working to push on society. Maybe that's why it feels like God is leading you there? Just my thoughts.
If not essential goods, what are you thinking of supplying?
Great points. I plan to be online as well, but providing a physical space for those who want to avoid Amazon is ultimately my goal. Toys, etc.(for all ages) is my focus. Are they necessary? No. But always sought after, even through most difficult times.
Our local comic book shop couldn't bounce back after COVID. The owner also sold board games and supplemented with food and snacks for the people who came in to play board games. However, he was so terrified of the scamdemic he made everyone wear masks and refused to allow anyone into the gaming area to play board games. He also no longer had set standard hours. All of this is ultimately what killed his business.
A bunch of his employees before he closed shop thought he was being ridiculous, so they opened their own board game store. Allowed people to come in and play board games with snacks and drinks. However, they struggled at first. So they branched out to comic books. Stole a lot of his business since he was never opened and didn't allow gamers in to play. They're doing very well now.
I'm not sure how a toy store would do with every other store, including grocery stores, selling toys. Makes me think of Toys R Us. All of our local toy stores went out of business years before COVID. Just depends on demand in your area. But gamers are very loyal, whether they're video gamers or board gamers, if you chose to sell any games and gave them some space to play or try them out. Or a new idea trying out toys?
I am not a comic guy, but have went into a few stores over the years.
Not to buy comics, rather to buy the odball other things they sell.
Such cool stores.
They sell stuff you never knew you would buy.
Love that.
Sad to hear it closed.
Fyi, i give my nerd friends a 50.00 gift card to the major game store in DFW every year.
Madness Games and Comics in Plano, TX.
Best game shop ever.
50 year old mens eyes light up like a child when they get that gift card. Hehe
Life doesnt have to be all serious. We can have fun also.
It was pretty sad when it closed. Been around for probably 20+ years. He just was too afraid to stay open during any normal hours. People would go up there to buy stuff, and the store was closed for the day. My husband eventually gave up. Then he laid off employees because he couldn't afford to pay them. They started their own game board shop. After he closed, they started selling comics. So at least there's one local comic book and board game shop still in the area.
My husband isn't quite that old, but definitely has the same reaction. 🤣
Luxury items in a recession, competing with Amazon, lol
Games were HUGE for my family during the lockdowns - all kinds, cards, board games, etc. Helped to keep us sane. Good luck to you.
Try to talk to retail neighbors about the landlord. Seduce you with nice rate then ram you on resign. Have appropriate lawyer look at papers before you sign.
What is neighborhood like? Is theft of goods a major issue?
Is their an inventory tax in your state and how would you deal with that? I remember being in california years ago and all the small convenience stores had empty shelves and i asked someone why and they said inventory tax. Not entirely sure that was true.
Ive never worked in or owned a retail shop so not much advice, but those 3 things popped into the head.
GL if you decide to do it.
Very good advice. Thank you! I’ve vetted the area and situation, but had no idea there was such a thing as inventory tax (of course there is…especially in CA!). I’ll be looking into that.
I had a business idea thirty years ago as a child, and then 11 years ago started to pitch it to people, who each shot it down as a bad idea.
Someone else had the same idea and now owns a chain of stores that I very well could have owned.
You can't know unless you try.
I say, pray on it and be still to hear what God wants you to do. I will keep you in my prayers that God shows/tells you what you should do.Good luck to you.
Thank you
Create a business plan (there are online resources for this). IF done with honest estimates rather than overly-optimistic ones, it'll make you hone in on what you are going to do, assess the market, and analyze the financial and practical viability of your idea.
Overhead (rent; utilities [electricity, water, gas and internet, office supplies], employee salaries, licensing, membership fees, TAXES, advertising/marketing; set-up [remodeling - permits, construction, doors, windows, paint, furniture, equipment], signage; and the intangible personal costs of having to be "always there" or "always on call" with no vacations if the business can't run in your absence as well as "being part of the community" to develop customer preference/loyalty/personal relationships/recognition/familiarity via attending local events) are too often overlooked or overminimized by hopeful entrepreneurs.
Most small businesses fail (estimates USED TO BE around 90%) and most fail primarily because of financial problems, followed by poor/inept management, poor product/inadequate market demand, poor customer service, employee theft, bad location, etc. If you can successfully anticipate and avoid those pitfalls (as being forewarned is being forearmed), you'll be in a much better position to succeed.
Good luck!
Sell products with CBD. I get mine online. I haven't been to the local weed stores to see if they sell only cbd without thc. I like the 25mg cbd gummies myself for mild pain relief.
How leveraged was he, tho. I know a lot of people who look rich, but are broke.
I remember a time back in my 20's. Over 30 years ago.
I was talking to a farmer in Kansas and he asked me to look to reroof house. We were talking on the phone. Looked at his farm house and it was a normal 2 story small house youd expect in kansas, with a large barn and a silo.
Told him what the price would be and he said, fine, sounds good. He said he was flying in tomorrow at noon and can you be there at noon? I said surr, but thought, how is he flying in at noon and going to be at house at noon?
I figured he meant he would fly in and be there at noon. Always best not to correct customer before a sale is closed thinking.
Anyway, i am there at 11:30am and at about 11:45, a lear jet ( of course, a jet made in Kansas) lands behind the house. I was gobsmacked. Never noticed the runway behind the house.
We met, he liked the proposal and we shook hands. He wouldnt sign it. He gave me the go ahead and at the same time a couple of brand new combines started coming out of the barn.
This guy was dressed in t shirt and jeans, like he was ready to go to work, yet he just flew in on a jet.
It was harvest season and few people in the farmlands from texas to canada harvest their crops anymore. Too expensive. The crops start being harvest early in year in the south and as the convoy harvesters work their way up north, the crops ready.
I asked him, why not use the convoys?
He said, the 2 kids on those 2 combines are my sons. I keep this farm for them to grow up knowing what hard work is. He said, i have been very fortunate in buying land in kansas when it was cheap and having the means to do so.
For those that do not know, west Kansas land is some of the best in the world.
Anyway, he looked like a typical farmer and he house was nothing special.
I asked him what he was doing in california and he said, buying land. Most the best land in kansas is gone, but the next gold rush is california. Lol, that was 30 years ago.
Bet he did pretty well with land in cali.