blackpaws

Need advice for deciding whether to open a retail space....tons of questions

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We currently work from home and all sales are online. We recently moved to a new area, which is developing so fast. New construction all around. The population is 44k and growing. In this town alone, there is just one sign shop, and they just do signs. We really don't do signs, our big things are just custom decals and screenprinting. Also planning on laser etching. Not one screenprinting shop in this town. I did some research (asking facebook communities) and to get custom shirts, there are a couple other work-from-homers, who only do their work as a hobby. And the only shops to get shirts made are all surrounding communities, not this one. I feel like this is a huge opportunity for us and we should really consider pulling the trigger on opening a store front, I feel like it's only a matter of time before someone else does. There's numerous schools here too, I think there's a big market. 

 

So what's the problem? I don't even know what I'm in for. Lets say I call the owner of an empty retail space, and the price is right on the space. What's next? I know I need to buy a cash register, retail fixtures (at least a counter, and some clothing racks right?) and a legit sign. How much money should I have set aside for this?? I'm assuming that the back end of the space won't have adequate ventilation for screenprinting, or maybe it will, I don't know. But my luck it won't. And will have to close that part off if it's not separated already so that the fumes don't take over the shop. What else? I'm sure there's more. 

 

I'm also worried about sales. I know that ultimately, it will depend on how well we market. I would be instantly spreading the word, taking flyers to schools, advertising on facebook and online. But realistically, how long until we start to get people walking in the door and placing orders? My biggest fear is spending all this time, energy and money, and not having people walk in the door. Beside one of the spaces that's for rent is a Quilt shop. I keep telling myself, if there's a demand for that, there has to be a demand for what we do.

 

Thanks in advance, tremendously, for ANY input!! 

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Just curious, how do you sell online? Have a webpage? I'd like to look at it

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After operating a home based business, and moving into a retail space, I can say it boils down to one thing.

 

Is your business dependent on walk-in customers?

 

If not, and you have a decent space in your home ( like a full basement or garage you can devote to the business ) stay home as long as you can, until you actually outgrow it and have the income to support it.

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After operating a home based business, and moving into a retail space, I can say it boils down to one thing.

 

Is your business dependent on walk-in customers?

 

If not, and you have a decent space in your home ( like a full basement or garage you can devote to the business ) stay home as long as you can, until you actually outgrow it and have the income to support it.

pretty well said but we do get a good price on equipment and supplies from the ones that don't fully plan on the monthly bills the are committed to and how much work they do each month to break even.   now we have had some great success stories that have gone full on retail JF, SB, JP and others but each year we seam to get a bunch of sales on here and cl for the other bunch.

go for it - you never know till you try

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Bankrupt for 10k or 100k is still bankrupt so I say go big.

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Sounds like an opportunity. I lived in a town half of that size with over a dozen print/sign shops.

 

Crunch the numbers to figure out what your monthly expenses will be to run the store. Decide if you can eat the potential losses for several months before you start to make a profit. Talk to a lawyer, accountant, and an insurance rep to learn what you're getting into financially and legally.

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Just a thought before going head first into a retail shop in a new place. Since you just "moved in" maybe start off with going to events that offer vendor space, ask around if people would be interested in your shop. In short do some Research first, then decide. You can also visit the local schools, health clubs, and such to inform them that they have a local small business that offers such services..

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after you open it you will find out just how many people in that area work out of their house as everyone ask you to compete with their prices with no overhead.  heck I bet there are dozens of cutters within 2 miles of me if we could really find out.  I know we have a few screen printers in basements and garages around here too

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Thank you all so much for the replies! Right now we of course don't have any walk in customers, but prior to moving we were having customers come pick up orders 2-3 times a month on average, maybe more around Christmas time. And that was in a VERY small town, with multiple other legit shops running. I think we're going to go for it. I hope the prices are affordable on spaces. Like I said I keep telling myself, if there's a freaking quilting shop which I found out has been there since 2011.... then we can do this! 

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We just closed our retail and went back to working from home!  We were very fortunate and not at a loss for customers prior to opening. HOWEVER, it only took a year to figure out just how impossible it is to keep up with the demands of maintaining great customer service AND still be able accomplish a fair amount of work.

 

We made our decision for a few reasons.

 

It takes more time to babysit a walk in customer than to respond to an online request or resolve an issue for a current customer.

 

We spent more time on quotes than ever before and over half were tire kickers, wanna be designers bleeding for information, some just curious about what we did, local competition OR sent in by the competition.  All of that takes time. Half of your day will be over before you realize what hit you. It's exciting to talk to people about what you do, but if they are in your store, they expect your time and if you are rude and short, they will not return. Bad news travels much faster than good.

 

We chose not to go out of pocket and hire a formal employee to manage customer service. With needing to produce the orders, we simply do not have time to train someone  -  and then there are the unrealistic expenses for a small business owner to have legitimate employees. Then the worry of 'Are we sure that this new person will represent us the way we have spent years building our reputation?'

 

I also found that we needed to have a LARGE collection of supplies and shirt sizes available at all times because you never know what will walk in the door. It took me all of 2 days to realize that customers expect to walk in, discuss their needs, and walk out with a finished product. It does not happen of course for all orders, but it does not take that expectation away. And you do not want them leaving upset or disappointed. They will talk.

 

Having young children at work with us when they are bored and we are busy is not a good mix either. The newness wears off fast!

 

By closing, we are saving a few thousand in overhead each month. It adds up beyond rent and power and water. There are business fees, ongoing ordinances that you need to stay on top of, advertising - because now you NEED more customers to cover the overhead- , having lunch delivered because no one has time to leave because customers are always in your shop and you have jobs to produce, late nights because of course now, your equipment is at the store, not at home - no more late nights and lazy mornings in your pjs, the list goes on and on!

 

Not saying in any way that you should not open, just sharing our experience. It was a great experience but there is a lot to consider.

 

I prefer finishing the entire coffee pot, not grabbing a cup on the way out the door.

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npace...a VERY GOOD heads up on the time and $$$ it takes to run a retail store.

 

The business fees, ordinances and the NEED to cover the additional overhead'

(rent, electric, heat, phone, etc) can be daunting.

 

Sue2

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Do

Not

Get

Involved

 

 

If you are still at the stage asking about cash registers and fixtures, then you're just asking for trouble.

 

Realistically, people will walk in from day one.

(I had people walking into my new sign store while it was being set-up)

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Theres alot to consider.

And i bet the local schools already have a source for decals and apparel. 

 

The overhead and all other expenses, fees, licenses, insurances, will add up fast.

I have been tossing around the idea of opening up my own store or shop, or just renting an office to get stuff out of my small cramped house.

In a good average month, i can do an average of $450 in sales, thats sales, not profit.

The big thing is where I am out, theres already 4 or 5 large shops around that do a wide variety of stuff, so competition is tight.

 

Are u currently just doing this full time or do u have another job for income?

I work 45-50 hours a week at my full time job, then do this in the evening and weekends. 

Last year i had close to $5,000 in sales, not profit. Maybe $2600 in profit. I have used almost every penny to grow my business more, and i have yet to actually pay myself. 

 

So yeah there's alot to consider. 

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Like jay said it wont matter if you dont make a go of it whether it is homebased or a store front and as Slice said you will probably get walkins right off. I saw some photos of Slices store and he had lots of signage to let people know he was there.

If you do good work at a fair/competive not always the cheapest but fair for quality work and product. Quality will win out over price most times and the people that only looks for cheap you probably dont want as customers. My customers are mostly repeat customers on the handyman service and sign service both some for over 20 years. I have not worried about competiors for 35 years when I first started contracting someone would say Joe Blow will do my job for $xxxx amount and I would offer to beat the price after a few no or very little profit jobs I learned you cant do a quality job at a low price so after that I gave a price and stuck by it.

So quality work, fair prices and customer service and odds are very good you would do well with a store front.

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