I have been wanting to open my own buisness for about ten years now. I have come up with several ideas to go with such as a roller skating ring, a hot wing restraunt, a teen hop, an arcade place and a teen clothing shop. After much research, the skating ring is too costly, the hot wing thing is too boring, a teen hop or an arcade place is ok but I am really leaning towards the teen clothing shop. The teen clothing shop seems easier to manage and I have two older sons who can help me with today's fashions. Also, I live in a small town that has a Wal-mart, two clothing stores, one grocery store and three dollar stores. With today's gas prices, many parents can't afford to go out of town which is 60 miles to the nearest mall and buy up to date fashionable teen clothes. I really think this idea could work but I am scared of failure. I have researched some of the distribution companies but I don't know which one to trust. I want my store to carry both boys and girls clothes in today's fashion for all. I am going to have today's music playing in the store with eye catching posters and coupons will be available in the local newspaper for discounts. Still, I am scared of failure.... Oh.. I even have some names, Juvy's, Thumber, Wssup and many more. Of course, these were ideas from my 16 year old.
#1. "RE: Scared!!" In response to Reply # 0 Thu Jun-12-08 01:51 AM by mmcjewels
Hello scared, everything in life is scary. Learning to walk as a child is scary but we do it anyway. Run with your idea even if you take small steps. I can help you if you would like to add jewelry to your line. If so, please contact me and good luck on your venture. If I can help with any other ideas just let me know (firstname.lastname@example.org). Work hard and consistently.
I'm in the same boat as you. I have an idea that I think will work, but it is scary. I think you have to figure out how you can do it in a cost-effective way, so that if it doesn't work out, it doesn't hurt you too much financially. Surround yourself with people that have knowledge & time to help you out if you get into a crunch.
Are you quitting a job to do this? Do you have savings you can start with or do you have to go into debt? Do you have marketing ideas lined up so you can get the word out immediately? Have you written a business plan? Even though the ideas are in your head, getting them down on paper will help you come up with contingency plans.
Once you have a good solid plan, diving in is scary, but don't let the fear stop you from doing it if you feel really confident that you have a market for the store. It could be the best thing you ever did, but you'll never know unless you try. You just have to try SMART.
Yes, I have quit my job of 14 years less than a month ago. I was a correctional officer for 14 years but I did not quit to start my buisness. I quit because I am also working on my Bachelor's in Criminal Justice Admin. I have 7 more classes to go. I was exhausted trying to juggle my job, school and family all at the same time. Although, my buisness idea does feel good right now but I am also waiting on a job offer phone call that I applied for back in February. I have already done the interview and was the only one selected but they are doing an FBI background check and credit check right now. I know I am trying to do too much at one time but if I don't do this buisness thing, I am always going to wonder. I figure if I start it, I will have someone else run it and if it works good, if not then at least I tried. If I get the job and my buisness is already started, I will not be able to focus on it. Yes, I am stuck between a rock and a hard place. Financially, I am ok. I have enough to get it started, enough to survive for a little while but I will be broke in my savings if it does not work out. If I don't get the job, I can focus on the buisness and my education because I am going on to my Master's Degree in Psychology. Since I attend class online, I can go to school at my place of buisness. If I get the job, I will be back to square one with no time to get my buisness started.
As for a buisness plan, I kind of written it down as notes but not an actual professional plan. I broke it down to what I need in order to get it started and how much. I found some buisness locations and distributors to buy from. I just don't know which one to trust. I want to reject the job offer if it is offered to me and go with my buisness but there again, I am scared because I have always had a steady income. It was really hard to quit my job. I know with my degree I can always find another job when I am good and ready for one. Sounds crazy but I must reach this goal that has been stewing up inside me for many years now. Sounds like I got issues, right?
Since your 16 year old, I assume, is your target market, invite her classmates in and bounce your ideas off them. If they think you're letting them put together their own place, you will get even better responses and since it's built especially for them, it will be a going concern.
Pabry, I think it's a perfect suggestion for you too... You'd be surprised at how effective hiring someone of your target group is at making your wholesale choices for you... You'd want a girl(s) that other girls think are "cutting edge"... Good luck with that.
I answered your question on another thread...let me copy here:
Well, at least you're realistic enough to be scared. You have good reason to be scared. A brand new business, especially a retail shop, can be very costly and very difficult to keep afloat. You would likely not make a profit for the first couple of years (or longer). Just meeting monthly expenses can be difficult for a new start up.
Have you started to write up a business plan yet? That should be your first project to find out if the idea is viable.
Do you have a good $50,000 - $100,000 for start up costs? Surprisingly, even a small clothing shop will run you that much just to open. It will then take a while to develop a strong enough customer base to cover your monthly expenses. You will need to have set aside enough cash to get you through the first year or so.
I offer so much great information in my start up kit (below) that could really help you decide which way to go. Take a peek.
Well so far I know the places I have checked into are being leased out between $300 and $1000 a month which is not bad considering the location is where all the shopping goes on. Yes, my business plan is set. I have asked my son's friends about their imput and both male and female friends are looking forward to it. No... I don't have $50,000 for start up costs because my store is not going to be a high cost, expensive, name brand clothing store. We have one highschool and because my son is well known, the customer base will not be to hard to aquire. We don't have anyone locally that sales skateboarding wear or really much of any fashion for boys or teens. I will not have a big variety at first, only what is shown to be popular for the time being and then I'll go from there. For instance, I saw some skateboarding t-shirts online for $5 each but they sale for $24.99 retail. I figure I can show that price but post a 20% off sign to attract customers and still make a good profit.
I know in order to make BIG bucks I need to spend BIG bucks but I am already scared to put in $10,000 much less $50,000. I will start small and work my way up, penny by penny. HAH
I don't have $50,000 for start up costs >because my store is not going to be a high cost, expensive, >name brand clothing store..... For >instance, I saw some skateboarding t-shirts online for $5 each >but they sale for $24.99 retail. I figure I can show that >price but post a 20% off sign to attract customers and still >make a good profit.
Because I have owned a retail shop previously myself, I speak from experience. I don't want to discourage you at all, but I do want to continue the discussion of start up costs.
You say you plan to spend only $10,000, and reluctantly at that. You also said you already completed your business plan. I would be curious to see what you allocated for your start up costs (I'm not asking you to divulge details...just wondering), because the racking, tables, hangers, sizers, etc, alone would run you about $4K for used items for a small shop. New would be nearly double that. A decent POS system would be roughly $2K (with retail software). That's on the low end. Counters...varies depending if they are new or used, where they are gotten from...but at least $500 - $1000 (low end). Rent is always negotiable, but likely you would need first month's rent and security deposit. You will likely need deposits for all utilities. Permits. If you need to remodel that could add quite a bit to your start up costs. You'll need basic office equipment. A fax machine is a must for placing orders for inventory. You'll need signs for both outside and inside. Again, depending on what you go with that can vary greatly. But an electric sign for outside could be upwards of $3K (low end again). That's just what I recall off the top of my head.
And inventory....most vendors will require a minimum quantity. And it takes a surprisingly large amount of inventory to make your shop look full. Even if your plan is to start small and work your way up, if you don't have a decent variety you'll have a difficult time attracting and keeping customers. Relying on your son's friends to keep you afloat doesn't seem realistic.
Again, please don't think I'm trying to discourage you. I know how strong the desire can be when you have an idea and you want to run with it. I tend to encourage folks to look at their plans with eyes wide open and plan on worse case scenarios. The hope of course is that your business will take off and you are profitable from day one. But the reality is that rarely does that happen with a new start up.
If you can find a spot that is fairly small (say no more than 1000 sq ft) it would certainly help keep your costs lower. It would take less merchandise to fill, the rent would be lower and your racking/equipment needs would be less. In my area rents are sky high (avg $20 sq ft). Sounds like your area is much less. That will be helpful.
Please keep us posted and I wish you great success!!
Have you considered selling your teenage merchandise on-line before you set up a brick and mortar location? I just keep thinking about the monthly lease you have to cover before you even start to enjoy your profits. With an on-line business, you would avoid that monthly expense. There are other expenses involved but a lot less than that $2500 and up lease you will need to cover.
If your biz goes big on-line, then you can think about opening up a storefront. I just think in today's market, eCommerce is the way to go. You can get customers from around the world.
Yes, I have considered an online business but not in retail. I thought more of online counseling for those who are to shy, stubborn or shamed to go into an actual office. I do have a plan for that to but that will come later when I finish my next degree (Master's).
It's a fact, over 65% of new businesses fail within the first 5 years. 90-95% of existing business survive past 5 years. Buying a business is a big decision, but if you're looking to control your own destiny, make unlimited income, and cut the risks of starting from scratch, considering buying a good existing business.
Jack Teasdale Sunbelt "The place to go to buy or sell a business." 248-787-4526
Hey guys, thanks for all your imput. In one of my posts I explained how I was in school and awaiting an answer for a job of a lifetime. Well... I got the call today so my business plans will have to wait. Maybe this is a sign that my plan was a disaster waiting to happen especially where it hurts the most; my bank account. Once I get my school out of the way, I will reconsider my idea but of course I will use all of your suggestions to modify my business plans to be able to succeed. I will keep reading everyone's posts throughout the course of my new career just to keep learning from your experineces. Good luck everyone and thanks again.