gcextreme

To move to a larger place or not??

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Well i am considering moving out of small 450sq ft store, and moving into a larger, about 3,000 sq foot shop with a garage bay.
My rent will go from $325 + Utilities to $800 + utilities. Its scary, but could be worth it for the advantage of having a garage to do vehicles in the winter. And more room to eventually get into screen printing as well..
Not sure what the wife will say, still gotta run it by her.
But my lease will he up June 1st so i have til then to decide if i want to stay at this small store or not.

 

The place needs some work and the landlord, who just built a larger building back behind it to the left, will be doing some renovation on the building soon.  The location is at the cross roads of 2 major roads/highways, and right behind a gas station and near a large trucking and equipment dealership, so thats a plus for doing semi-truck decals there. Also there's a large John Deer dealership around the corner. 

Only downfall is it is also close to the train tracks, which may not be a bad thing, cuz there's alot of railroad workers passing thru.

 

 

 

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That building would be 3 grand around here, if that tells ya anything?

The owner of the building and land, a young guy, he is probably about my age 31-ish, He bought all the land and the building, he used the building for storage while he built his new building in the back...he does welding etc.  Right now he is still working on the interior of his new building and said he would start getting this building ready too if i wanted it. I told him i would need to make a decision before June 1st cuz thats when i will have to sign another 1 year lease at my current place or not.

 

And like i said, this place isn't down town where there is alot of foot traffic, its along the two major roads in and out of town. Even being downtown where i am now, i am not getting much traffic, i am stuck around the corner of the block..i only get a few walk-ins and i have even had people ask me about doing vehicles this winter, which i wasnt able to do cuz i havent got a place to do it in the winter.

 

We would split the internet and garbage services too.

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The extra space and the garage bay would be a plus. If you can afford the payments, even on your worst month, and still have funds to expand the business, then go for it. Can you make enough by being in the new location to cover the $5,700+ more a year in expenses?

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Good luck which ever way you go.  

thanks

 

 

The extra space and the garage bay would be a plus. If you can afford the payments, even on your worst month, and still have funds to expand the business, then go for it. Can you make enough by being in the new location to cover the $5,700+ more a year in expenses?

 

The way i figure it, i have 80% of the equipment and supplies now that i need, minus screen printing stuff. I have my cutter, i have tons of vinyl, i have my dye sub printer, i have my heat presses, i have all my shelving and work benches, i have a good supply of shirts and hats, i have a good supply of dye sublimation blanks, all this has eaten away at my profits, but thats inventory and supplies.  I had over $11,000 in sales last year, but had over $8,000 in expenses for all that including current rent. So now since i have all my equipment, profits will increase as i only need to restock on inventory i sell.

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One extra job per month should pay for the new digs. I'm sure in a short time you will pick up more than that with all of that room.

 

Let me leave you with this: If you don't make any changes in what you do today, you can never make any improvements in what you do tomorrow. 

 

Of course I am a former six-sigma guy.

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Glen, thinking after the amount of time you have in now having a retail location you are the best person to decide it if is the right move or not - every area is different.  if the business is supporting the amount now then it is easy to assume the larger place with added benefit of the bay is worth it for additional revenue in the winter.  as long as you are making money and not working all month to pay the rent and utilities without making a good wage.  as always wish you the best

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well i have been doing this now for about 4 years, i have YET to pay myself a wage..every penny goes back into the business, whether its buying more supplies, more equipment, or advertising.  

All i know is, my first year in business, i had bought my cutter and lots of vinyl, had $3500 in expenses and only had $400 in sales.

My second year, i had added a shirt and hat press and bought HTV vinyl, shirts, hats, etc, and had about another $3,000 in expenses, but had about $2500 in sales.

My third year, i had another $2,000 in expenses and had about $4500 in sales..so an actual profit.

My 4th year, i opened up my small store, bought a sub dye printer and lots of sub dye blanks, lots of shelving and work benches and other stuff i needed for the store.

I finished my 4th year with $8,000 in expenses and $11,000 in sales..so a mere $2,0000 profit.

 

But now that i have alot of the equipment and supplies, this 5th year, the biggest expenses will be rent. 

So if i spend, lets say $6,000 in expenses or so, and still only do $11,0000 in sales, thats still a $5,0000 profit. 

That's coming a long way from the $400 in sales i started out with.

 

and keep in mind, this is only PART TIME..i still have my full time job, and the goal is to eventually do this full time

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how many hours did you put in to make the $5,000 profit - just brainstorming it all the way thru here.  just comparing to if you spent a couple hundred more on house payments - work from home and pocket the money now going to the landlord.   I know jfought went full retail and has done very well and supports both him and his wife working there full time and way back on an earlier forum we had Wildside Creative and has done very well with going full retail.  so it is right for some and I hope you hit it big and can do it full time.   

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i dont know how many hours, considering i work 40-45hrs full time at my other job, i probably put in about 15 hours a week or so give or take.

I would love to find and buy a house large enough to accompany my business, but thats not gonna happen right now.

My current house is way too small. 

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Seriously take the rent money $800 and take the rent money for house and BUY you a larger house.with a garage.   and work from home.. I only work from home and only cut vinyl and make a ton more than you do with my part time biz.  It does support me. plus. And I only sell online,   Why limit to local area, when you have the world to sell to!!   You need to stop paying everyone else.. and invest into your own place. Or your going to rent forever.. My 2c

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Seriously take the rent money $800 and take the rent money for house and BUY you a larger house.with a garage.   and work from home.. I only work from home and only cut vinyl and make a ton more than you do with my part time biz.  It does support me. plus. And I only sell online,   Why limit to local area, when you have the world to sell to!!   You need to stop paying everyone else.. and invest into your own place. Or your going to rent forever.. My 2c

 

i understand this..but finding the right place is impossible around here...and alot of houses are either right in town with no room and no garage, no yard. or its way out in the country where its impossible to get internet. 

Plus the wife wants to build a house, but that's never going to happen.

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Plus the wife wants to build a house, but that's never going to happen.

LOL  Buy her a hammer  (better yet, air nailer) and some blueprints,  you might be surprised.  I totally remodeled my 10 room house inside and out.  She is a lot younger than me. I learned online.    I took a $20,000 house that I paid for  to over $80,000 myself...

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LOL  Buy her a hammer and some blueprints,  you might be surprised.  I totally remodeled my 10 room house inside and out.  She is a lot younger than me. I learned online. 

Gotta say Skeeter that residing the fireplace last year got tougher on the third scaffolding that it was 20 years ago -  - stacey put the last trim piece on the far side top when I got wobbly = you women are tough

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It's hard to see what kind of visibility this place has from the road.  But signage possibilities are terrific!

 

Try to strike a deal with the landlord for $650 a month for the first year, and $850 for the second (in a two-year lease).

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thanks...

we have been looking at a few houses, her parents who live about an hour away, are in the process of selling there parents home they bought before their parents moved into an apartment in town, and once that house sells, they will be setting aside some money to help us purchase our 1st house.

 

The few houses we have looked at, had only either a 1 car garage or no land to even really add-on. 

Another house i thought had potential, had a 2 car garage plus a large detached shed/garage, but the house only had 2 bedrooms on the main floor and 2 in the basement, wife didn't like that. 

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Glen on the house - in 1985 I bought a FHA house that was about the be repossessed and refurbed / added on myself - about quadruplication the value.  there is something to be said for a fixer upper and sweat equity - it was worth more equity than a second job would have paid for years.   don't look for the perfect house = look for one that is in a great location with strong bones that can be fixed with your skills to be the house you want

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Glen on the house - in 1985 I bought a FHA house that was about the be repossessed and refurbed / added on myself - about quadruplication the value.  there is something to be said for a fixer upper and sweat equity - it was worth more equity than a second job would have paid for years.   don't look for the perfect house = look for one that is in a great location with strong bones that can be fixed with your skills to be the house you want

 yeah but i know nothing about fixing up a house...i can paint thats about it. and replace door knobs..lol. 

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 yeah but i know nothing about fixing up a house...i can paint thats about it. and replace door knobs..lol. 

I didn't either,  I taught myself everything..  Everything you need to know is online,,,Just like I taught myself this vinyl biz...  No forum when I started.   You have to want to save money and learn...I still do all my own work...And it does not bother me at all to change my own oil...or work on my vehicles. 

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I didn't either,  I taught myself everything..  Everything you need to know is online,,,Just like I taught myself this vinyl biz...  No forum when I started.   You have to want to save money and learn...I still do all my own work...And it does not bother me at all to change my own oil...or work on my vehicles. 

true, but i dont want to start buying tools for home construction...i have too many tools for automotive/motorcycle stuff already..lol

 

I still have time to think about this shop, and still gotta talk to the wife, and we will keep looking for a house that could work for my business as well...

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love working from home - we are shutting down in may for over 2 weeks while we go to Alaska - if I had a storefront that would stress me more having to shut that down for that long and knowing I don't have anyone I trust to do the work like I demand

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No offence, but if can work on Bikes, cars, trucks and anything mechanical, you surely can use power tools, and what not, me thinks.

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true, but i dont want to start buying tools for home construction...i have too many tools for automotive/motorcycle stuff already..lol

 

I still have time to think about this shop, and still gotta talk to the wife, and we will keep looking for a house that could work for my business as well...

 

 

In all honesty the group is correct, buy a decent home & work from there, then when you grow move on to bigger and better things. 

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