going to open my own lhs
06-26-2012, 09:34 PM
#26
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RE: going to open my own lhs
i don't know what you are going to invest up front. usually planned, anticipated budgets fall short, however. anyway, like the experienced posters said, do your homework. make sure to have a reason why you think customers will come to YOU. location might be one. maybe not. know that most new businesses fail. i may be a jerk for being negative, but i've seen this many times in my career.
06-27-2012, 04:43 AM
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RE: going to open my own lhs
As the saying goes, Location, location, LOCATION! is very important.
Parking is as well!
I also think a location with a decent amount of foot traffic is just as import to bring potential NEW customers into the store.
And always have a positive attitude with the customer. if they isn't going well for whet ever reason, they don't need to know about it!
I saw the mistakes my friend made while running his store PLUS working for six years at a local Radio Shack with the manager from hell, AND his on/off girlfriend, I pretty much saw everything a manager (owner) should never do!
Bill S.
Parking is as well!
I also think a location with a decent amount of foot traffic is just as import to bring potential NEW customers into the store.
And always have a positive attitude with the customer. if they isn't going well for whet ever reason, they don't need to know about it!
I saw the mistakes my friend made while running his store PLUS working for six years at a local Radio Shack with the manager from hell, AND his on/off girlfriend, I pretty much saw everything a manager (owner) should never do!
Bill S.
06-27-2012, 07:34 AM
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RE: going to open my own lhs
On a more serious note from me, if you do open an RC LHS, please be sure to figure out a system for taking customer orders that you have to place online for them.
The LHS we had nearby (that has closed down), was always real nice about ordering things for me if they didn't stock it. But, their system was to write it down on a pad of paper that subsequently got lost in the shuffle, and they'd neglect to call when it came in (even though they had my number), so it got real frustrating.
All they really needed was an excel-like spreadsheet to manage things. (Orders Pending, Orders Arrived, Orders Fulfilled, etc). Even something real basic, but electronic and in one central location, would have done a world of good.
The LHS we had nearby (that has closed down), was always real nice about ordering things for me if they didn't stock it. But, their system was to write it down on a pad of paper that subsequently got lost in the shuffle, and they'd neglect to call when it came in (even though they had my number), so it got real frustrating.
All they really needed was an excel-like spreadsheet to manage things. (Orders Pending, Orders Arrived, Orders Fulfilled, etc). Even something real basic, but electronic and in one central location, would have done a world of good.
06-27-2012, 08:29 AM
#33
RE: going to open my own lhs
Being that it will be in NJ, use the highway exit number for the store name. Example: EXIT 53 HOBBY. It even gives the directions to your store.
06-27-2012, 09:40 AM
#34
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RE: going to open my own lhs
below. yup
ORIGINAL: Taz_Hobbies
$50,000 bare minimum. We were going to go brick & morter back In January with a $50K budget. E-Commerce is our bread & butter. By the time it was all said & done, $50,000 was barely going to be enough and that amount only included about 30 days worth of fudge factor. So if we didn't turn profit in the first 30 days, we'd be in the red. I decided to hold off. That decision was supported when I started reading thru the dealer contracts with some of the larger distributors. This was especially true running and brick & morter AND the E-Commerce. Lost my deposit on the building, but I am okay with that. I think I'd have lost much more opening a store in this economy.
Not trying to deter you, just make sure you have all your T's crossed and your I's dotted. I wish you the very best of success.
ORIGINAL: ma_mulcahy
I have to second Twin Flyer's thoughts above having been in the retail business myself. Having capital to invest in inventory is absolutely crucial. For a small shop, plan on investing at least $50,000 to have the products on hand that people want. You have to think clearly as well.... don't stock the stuff that you like or the stuff your rep is pushing. Do your research and stock what sells. Find ways to draw customers into your business and the hobby.
Last but not least. have fun dealing with customers that will try your patience. Like the guy that wanted to know why our service price was low, he told me he thought it was because we were ''too stupid not to charge more''....lol I bit my tongue. There is one in every crowd.
I have to second Twin Flyer's thoughts above having been in the retail business myself. Having capital to invest in inventory is absolutely crucial. For a small shop, plan on investing at least $50,000 to have the products on hand that people want. You have to think clearly as well.... don't stock the stuff that you like or the stuff your rep is pushing. Do your research and stock what sells. Find ways to draw customers into your business and the hobby.
Last but not least. have fun dealing with customers that will try your patience. Like the guy that wanted to know why our service price was low, he told me he thought it was because we were ''too stupid not to charge more''....lol I bit my tongue. There is one in every crowd.
Not trying to deter you, just make sure you have all your T's crossed and your I's dotted. I wish you the very best of success.
06-27-2012, 12:24 PM
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RE: going to open my own lhs
Free Beer, Free Wings, and Hobbies.
Not sure you'll get the right foot traffic with that name, but hey, out of the box thinking has to start somewhere.
Not sure you'll get the right foot traffic with that name, but hey, out of the box thinking has to start somewhere.
06-27-2012, 02:51 PM
#39
RE: going to open my own lhs
Bah just get an attractive cashier with big jugs that likes to wear tight clothing, and you will get tons of guys in shopping once word gets out. Won't matter what the name is.
06-27-2012, 02:55 PM
#40
RE: going to open my own lhs
Forget the free beer ... get this girl to work in your store. She'll have your store full of customers in no time. In just 5 days the guy selling this plane had over 10,000 views of his ad. All he posted were pictures of her posing with his plane. So imagine what this girl can do for your customer base if you actually had her (and not a picture) in your store!
06-27-2012, 02:56 PM
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RE: going to open my own lhs
Foolish Husband Hobbies.
I spent a dozen years managing small businesses, and flirted with owning a hobby shop on several occasions. Several things to consider:
1) You won't own the business - it will own you. Figure on six fourteen-hour days a week, no vacation, no benefits, and phone calls at home if you aren't open at 10PM when someone breaks something (or 1 AM if they've been drinking).
2) Your relationship with your wife will suffer. The business is a jealous mistress, and will consume your mind.
3) If you don't have what the customer wants in stock, at or below mail-order prices, you are simply giving free advice.
4) It will take a sizeable investment to be competitive. At one point, I had $250K in cash to invest - and figured I could run a year before hitting the break-even point.
5) If you beat all the odds and survive long enough to create a solid, profitable hobby shop in your market - you will attract a chain to open in your market. It's like building a McDonald's - here comes Burger King and Taco Bell....
Something like 70% of new small businesses go under in the first three years. I'd bet it's higher for hobby shops.
I spent a dozen years managing small businesses, and flirted with owning a hobby shop on several occasions. Several things to consider:
1) You won't own the business - it will own you. Figure on six fourteen-hour days a week, no vacation, no benefits, and phone calls at home if you aren't open at 10PM when someone breaks something (or 1 AM if they've been drinking).
2) Your relationship with your wife will suffer. The business is a jealous mistress, and will consume your mind.
3) If you don't have what the customer wants in stock, at or below mail-order prices, you are simply giving free advice.
4) It will take a sizeable investment to be competitive. At one point, I had $250K in cash to invest - and figured I could run a year before hitting the break-even point.
5) If you beat all the odds and survive long enough to create a solid, profitable hobby shop in your market - you will attract a chain to open in your market. It's like building a McDonald's - here comes Burger King and Taco Bell....
Something like 70% of new small businesses go under in the first three years. I'd bet it's higher for hobby shops.
06-27-2012, 03:13 PM
#42
RE: going to open my own lhs
ORIGINAL: Teachu2
Foolish Husband Hobbies.
I spent a dozen years managing small businesses, and flirted with owning a hobby shop on several occasions. Several things to consider:
1) You won't own the business - it will own you. Figure on six fourteen-hour days a week, no vacation, no benefits, and phone calls at home if you aren't open at 10PM when someone breaks something (or 1 AM if they've been drinking).
2) Your relationship with your wife will suffer. The business is a jealous mistress, and will consume your mind.
3) If you don't have what the customer wants in stock, at or below mail-order prices, you are simply giving free advice.
4) It will take a sizeable investment to be competitive. At one point, I had $250K in cash to invest - and figured I could run a year before hitting the break-even point.
5) If you beat all the odds and survive long enough to create a solid, profitable hobby shop in your market - you will attract a chain to open in your market. It's like building a McDonald's - here comes Burger King and Taco Bell....
Something like 70% of new small businesses go under in the first three years. I'd bet it's higher for hobby shops.
Foolish Husband Hobbies.
I spent a dozen years managing small businesses, and flirted with owning a hobby shop on several occasions. Several things to consider:
1) You won't own the business - it will own you. Figure on six fourteen-hour days a week, no vacation, no benefits, and phone calls at home if you aren't open at 10PM when someone breaks something (or 1 AM if they've been drinking).
2) Your relationship with your wife will suffer. The business is a jealous mistress, and will consume your mind.
3) If you don't have what the customer wants in stock, at or below mail-order prices, you are simply giving free advice.
4) It will take a sizeable investment to be competitive. At one point, I had $250K in cash to invest - and figured I could run a year before hitting the break-even point.
5) If you beat all the odds and survive long enough to create a solid, profitable hobby shop in your market - you will attract a chain to open in your market. It's like building a McDonald's - here comes Burger King and Taco Bell....
Something like 70% of new small businesses go under in the first three years. I'd bet it's higher for hobby shops.
personally if I was doing a hobby shop I'd start out small just selling stuff on ebay. Actually you can just parts out new vehicles on ebay and turn a good profit look at what plcman does with savages his auctions sell out within hours (that is with him putting up 30 of the item at a time). Just get the vendor thing, and buy cases of trucks to dismantle em, and bag the parts.
06-27-2012, 04:51 PM
#43
RE: going to open my own lhs
ORIGINAL: Teachu2
Foolish Husband Hobbies.
I spent a dozen years managing small businesses, and flirted with owning a hobby shop on several occasions. Several things to consider:
1) You won't own the business - it will own you. Figure on six fourteen-hour days a week, no vacation, no benefits, and phone calls at home if you aren't open at 10PM when someone breaks something (or 1 AM if they've been drinking).
2) Your relationship with your wife will suffer. The business is a jealous mistress, and will consume your mind.
3) If you don't have what the customer wants in stock, at or below mail-order prices, you are simply giving free advice.
4) It will take a sizeable investment to be competitive. At one point, I had $250K in cash to invest - and figured I could run a year before hitting the break-even point.
5) If you beat all the odds and survive long enough to create a solid, profitable hobby shop in your market - you will attract a chain to open in your market. It's like building a McDonald's - here comes Burger King and Taco Bell....
Something like 70% of new small businesses go under in the first three years. I'd bet it's higher for hobby shops.
Foolish Husband Hobbies.
I spent a dozen years managing small businesses, and flirted with owning a hobby shop on several occasions. Several things to consider:
1) You won't own the business - it will own you. Figure on six fourteen-hour days a week, no vacation, no benefits, and phone calls at home if you aren't open at 10PM when someone breaks something (or 1 AM if they've been drinking).
2) Your relationship with your wife will suffer. The business is a jealous mistress, and will consume your mind.
3) If you don't have what the customer wants in stock, at or below mail-order prices, you are simply giving free advice.
4) It will take a sizeable investment to be competitive. At one point, I had $250K in cash to invest - and figured I could run a year before hitting the break-even point.
5) If you beat all the odds and survive long enough to create a solid, profitable hobby shop in your market - you will attract a chain to open in your market. It's like building a McDonald's - here comes Burger King and Taco Bell....
Something like 70% of new small businesses go under in the first three years. I'd bet it's higher for hobby shops.
I think 250k is reasonable amount unless you just wanted a small business you could probably work 100k if you did not go to far with inventory. 50 grand doesn't buy a lot of inventory these days. It will get sucked up fast. You have to be shrewd with vendors too. They will also suck you dry - they just want you to make that big order and they can be ruthless. All this aside one can still make it however as stated can/will consume you.
06-27-2012, 05:31 PM
#44
RE: going to open my own lhs
ORIGINAL: Luchnia
Good advice. I was in businesses most of my adult life and in the mid-nineties I finally got tired of living my business and dealing with the red tape! You need a good business model that will work and in this country that is getting harder and harder to survive in business. You have to have gobs of financial capital on hand and the governments state, county, federal, etc could care less about your business or you. They want to own you and consume you bit by bit with all the additional cost to run a business. They want your head just under water catching an occasional breath and still dreaming that you can be the one that makes it...been there done that. Make sure you know ALL the ins and outs.
I think 250k is reasonable amount unless you just wanted a small business you could probably work 100k if you did not go to far with inventory. 50 grand doesn't buy a lot of inventory these days. It will get sucked up fast. You have to be shrewd with vendors too. They will also suck you dry - they just want you to make that big order and they can be ruthless. All this aside one can still make it however as stated can/will consume you.
Good advice. I was in businesses most of my adult life and in the mid-nineties I finally got tired of living my business and dealing with the red tape! You need a good business model that will work and in this country that is getting harder and harder to survive in business. You have to have gobs of financial capital on hand and the governments state, county, federal, etc could care less about your business or you. They want to own you and consume you bit by bit with all the additional cost to run a business. They want your head just under water catching an occasional breath and still dreaming that you can be the one that makes it...been there done that. Make sure you know ALL the ins and outs.
I think 250k is reasonable amount unless you just wanted a small business you could probably work 100k if you did not go to far with inventory. 50 grand doesn't buy a lot of inventory these days. It will get sucked up fast. You have to be shrewd with vendors too. They will also suck you dry - they just want you to make that big order and they can be ruthless. All this aside one can still make it however as stated can/will consume you.
06-27-2012, 05:45 PM
#45
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RE: going to open my own lhs
First, every supplier will force you to order their full line of products for your opening order. That order will total 25k~50k, depending on vendor. This will happen with all vendors. Many ofthe products you will not want because you know they willnever sell, and you will be stuck with. But they don't care, it's their way of off-loading their junk.
Next comes fees, taxes, insurance, leasing agreements, more spent money, added expenses that no one told you about, headaches, more fees, more costs, more taxes ... and you stillhaven't opened the store yet.
Then, you will see that people don't want what you have in your store, so you will have to special order it for them. Then you will notice how cheap everyone is. They will want you to compete with every price out there.
If you love the hobby, then it might be good for you, but don't expect to make any money. Rather, you will lose money ... a lot of money, and you will be working for $1 an hour.
The Pros;
It will get you out of the house.
Your wife will leave you.
The Cons;
Your girlfriend will also leave you.
You will lose your house.
The hot 20something cashier you hired tolure in customers will not sleep with you.
You really should re-title this topic to, Not going to open my own LHS.
Next comes fees, taxes, insurance, leasing agreements, more spent money, added expenses that no one told you about, headaches, more fees, more costs, more taxes ... and you stillhaven't opened the store yet.
Then, you will see that people don't want what you have in your store, so you will have to special order it for them. Then you will notice how cheap everyone is. They will want you to compete with every price out there.
If you love the hobby, then it might be good for you, but don't expect to make any money. Rather, you will lose money ... a lot of money, and you will be working for $1 an hour.
The Pros;
It will get you out of the house.
Your wife will leave you.
The Cons;
Your girlfriend will also leave you.
You will lose your house.
The hot 20something cashier you hired tolure in customers will not sleep with you.
You really should re-title this topic to, Not going to open my own LHS.
06-27-2012, 06:16 PM
#47
RE: going to open my own lhs
ORIGINAL: BobbyMcGee
First, every supplier will force you to order their full line of products for your opening order. That order will total 25k~50k, depending on vendor. This will happen with all vendors. Many of the products you will not want because you know they will never sell, and you will be stuck with. But they don't care, it's their way of off-loading their junk.
Next comes fees, taxes, insurance, leasing agreements, more spent money, added expenses that no one told you about, headaches, more fees, more costs, more taxes ... and you still haven't opened the store yet.
Then, you will see that people don't want what you have in your store, so you will have to special order it for them. Then you will notice how cheap everyone is. They will want you to compete with every price out there.
If you love the hobby, then it might be good for you, but don't expect to make any money. Rather, you will lose money ... a lot of money, and you will be working for $1 an hour.
The Pros;
It will get you out of the house.
Your wife will leave you.
The Cons;
Your girlfriend will also leave you.
You will lose your house.
The hot 20something cashier you hired to lure in customers will not sleep with you.
You really should re-title this topic to, Not going to open my own LHS.
First, every supplier will force you to order their full line of products for your opening order. That order will total 25k~50k, depending on vendor. This will happen with all vendors. Many of the products you will not want because you know they will never sell, and you will be stuck with. But they don't care, it's their way of off-loading their junk.
Next comes fees, taxes, insurance, leasing agreements, more spent money, added expenses that no one told you about, headaches, more fees, more costs, more taxes ... and you still haven't opened the store yet.
Then, you will see that people don't want what you have in your store, so you will have to special order it for them. Then you will notice how cheap everyone is. They will want you to compete with every price out there.
If you love the hobby, then it might be good for you, but don't expect to make any money. Rather, you will lose money ... a lot of money, and you will be working for $1 an hour.
The Pros;
It will get you out of the house.
Your wife will leave you.
The Cons;
Your girlfriend will also leave you.
You will lose your house.
The hot 20something cashier you hired to lure in customers will not sleep with you.
You really should re-title this topic to, Not going to open my own LHS.
#2 is what the YMCA's are for
you forgot one other pro you will have an assload of RC's to play with errrr test out for recommendation purposes
06-27-2012, 06:55 PM
#48
RE: going to open my own lhs
ORIGINAL: Airplanes400
Forget the free beer ... get this girl to work in your store. She'll have your store full of customers in no time. In just 5 days the guy selling this plane had over 10,000 views of his ad. All he posted were pictures of her posing with his plane. So imagine what this girl can do for your customer base if you actually had her (and not a picture) in your store!
Forget the free beer ... get this girl to work in your store. She'll have your store full of customers in no time. In just 5 days the guy selling this plane had over 10,000 views of his ad. All he posted were pictures of her posing with his plane. So imagine what this girl can do for your customer base if you actually had her (and not a picture) in your store!
06-27-2012, 07:28 PM
#49
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RE: going to open my own lhs
I have a hobby shop in NJ. Save your money. You will ruin your hobby and in NJ retail is very hard with high cost of real estate. If you do not stock items
you will not get very many orders. People can order themselves and save the tax. (a big concern with hobby people) I have 300k in stock and adding all time.
I used to love this hobby now it is a drag!!!!
Think long and hard.
you will not get very many orders. People can order themselves and save the tax. (a big concern with hobby people) I have 300k in stock and adding all time.
I used to love this hobby now it is a drag!!!!
Think long and hard.