Thought About It !

General Discussion FSM Ready Room
1

I had a marketing survey done by my Bank;

Why? well , even at 77, I thought a small Hobby Shop would be just what the Doctor ordered! Say What?? I must Be Crazy, Right ? After the bank did their work I definitely realized why Local Brick and Mortar shops go under.

The CAR killed it all. You have to have Parking! Most downtown areas don’t have that anymore! Then you have to have a high foot traffic count. Where? in a strip mall forty miles from everyone?

Oh! then there’s the other requirements. A strong Credit Line, a Decent and Desireable product and a markup that will pay the bills. Remember the price you pay! That is suggested Retail ! Actual retail could be higher. Then there’s business permits.

For a 1,300 sq.foot store in New Braunfels it is $5,500 bucks or thereabouts. Then there’s Signage permits and of course Rent! Don’t forget advertising costs. All total to open the doors, it is over $70.000.00 bucks! And it can be higher!

Then on top of all that you have to go from modeler to Businessman or Woman. This means no hour long Frenoso sessions with customers over the models they buy, or materials, Because if you do cut that off, many feel you are ignoring them and won’t come back.

All in all the Hobby Industry where we are concerned is chancy for the entrepreneur. If you can’t make enough for each month’s bills, plus your salary, you are going to fail.

This means a higher suggested retail and this will make customers ( Or potential Customers, back off and shop online) Why? with shipping, and in some cases free shipping based on the order amount it’s cheaper! Remember in buying the product in a online store everyone forgets,You still gotta pay sales tax too!

This is another one of those things that can get a Brick and Mortar in trouble. Taxes have to be collected and paid in a timely manner or they will close your door for you!

Nah, I’ll just remain a POC. I am happier that way.( P.O.C.? That’s Plain Old Customer,) to you!

2

One important item missing from your balance sheet (well, a few really):

Inventory.

Bill

3

How do you make a million bucks with a hobby shop?

start with two million

4

Hi bill;

That was of course implied.

5

Tank-

Don’t feel obligated to answer as this may be personal. How much does the store have to bring in to break even?

6

Well T-B, don’t feel like the lone ranger. My wife and I are considering starting up an LLC, for self-publishing consulting. LLC’s save you a lot of hassle, but there is still all of the licensing and fees and taxes, etc., just to get on line and running. Then, as you mentioned, there’s advertising, and networking, and in this day and age, social media. (I dispise most of those social media things, for numerous reasons). Small businesses at this time are a hard fought battle just to survive the first year.

7

Hi;

Oh Boy, I wish you two the best of luck. You are right about new Business failures.