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 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.