Can one start the FLGS?

External Since: Mar 07, 2008 Posts: 14

Seebs <usenet-nospam.DeleteThis@seebs.net> wrote in
news:slrnft67b5.hi.usenet-nospam@guild.seebs.net:

> On 2008-03-08, Gutless Umbrella Carrying Sissy <taustinca.DeleteThis@gmail.com>
> wrote:
>> Depends on what your goal is. In this case, it does not appear to
>> be to maximize income.
>
> No, but I absolutely do want to carry D&D stuff.

Then you might have to shop to find a wholesaler.
>
> My primary goal: I want a decently-stocked gaming store in my home
> town.

If your specific goal is a brick-and-mortar store, then finding vendors
won't be an issue.
>
> I'm willing to spend a little money towards accomplishing this.

A little won't be enough.

> I
> know other people who would be willing to, if not "spend money", at
> least "contribute unpaid time".
>
I believe - based on nearly 30 years of retail experience, most of it at
management levels and above - that it would be a serious mistake to
approach it at that level. A real retail store is a major investment, and
if you don't approach it as a serious business, you'll lose it all. And
there's only two ways to set this up, either as a sole proprietorship (or
some kind of partnership, wherein your partners are on the same path to
hell as you are) or a corporation. As a propietorship, all risks are
yours, and if it fails, it's your credit that's ruined for years to come.
A corporation shields you from this, in theory, but a brand new
corporation in a fairly high risk type of business (and make no mistake,
a game store is) will not be able to get credit without someone
personally guaranteeing it - using their own credit, so it ends up the
same way.

You'll have tens of thousands invested in this, at a minimum, before the
doors open. Maybe more, if retail rents are anything like they are around
here. Can you afford to flush that all down the toilet? Can your fellow
investors?

And be very, very careful about people who are willing to "contribute
unpaid time." That will very possibly be illegal, a violation of minimum
wage laws, if nothing else. In fact, be very careful about all that
"cheap labor" who just want an employee discount. It would be easy to end
up with your employees being so much of your market, that it reduces your
gross margin to below where you can stay in business. (As an example, my
current employer, a hardware store, used to sell Pepsi products. Until we
did some data mining, and discovered that over 85% of all sales on that
product line were to employees, who paid more more than 10% over cost.
That meant we were making less in gross profit than the electricity to
run the cooler cost. When it's maybe 0.001% of your total business, it's
no big deal - you just drop the product line. But when it's most of your
business, you're in *big* trouble.)

I'm not saying you have a bad idea. Two decent sized colleges is
certainly promising. But I am saying that trying to run a retail store as
a hobby *is* a bad idea, even if you can afford to lose every penny.
Because you probably will.

Do you have any retail experience at all?

--
Terry Austin
"Dude, we're all your bitch, but only Ken's wearing the juice."
- tussock

"Just throw a rock, and what screams will probably be a moron."
- Elvis (no, not that Elvis)

External Since: Feb 26, 2008 Posts: 53

On 2008-03-09, Terry Austin <taustinca.TakeThisOut@gmail.com> wrote:
> Then you might have to shop to find a wholesaler.

Well, yes. And probably, run a brick-and-mortar place.

> If your specific goal is a brick-and-mortar store, then finding vendors
> won't be an issue.

Yup!

>> I'm willing to spend a little money towards accomplishing this.

> A little won't be enough.

I had been under the impression that business loans existed for businesses.

>> I
>> know other people who would be willing to, if not "spend money", at
>> least "contribute unpaid time".

> I believe - based on nearly 30 years of retail experience, most of it at
> management levels and above - that it would be a serious mistake to
> approach it at that level.

It may be. My hope is that I'll be able to find people who would be good
at doing this, and have them do it, and my contribution can just be helping
them find the opportunity, and maybe providing some evangelism among the
college kids about how fun gaming is.

Yeah. I'd been assuming corporations.

> You'll have tens of thousands invested in this, at a minimum, before the
> doors open. Maybe more, if retail rents are anything like they are around
> here. Can you afford to flush that all down the toilet? Can your fellow
> investors?

Probably. One of the reasons I'm not talking about running this myself is
that I have a full time job and a lucrative freelancing hobby.

> And be very, very careful about people who are willing to "contribute
> unpaid time." That will very possibly be illegal, a violation of minimum
> wage laws, if nothing else. In fact, be very careful about all that
> "cheap labor" who just want an employee discount. It would be easy to end
> up with your employees being so much of your market, that it reduces your
> gross margin to below where you can stay in business.

Well, as an example, my mom recently retired from her day job. She has
successfully run businesses in the past, and would probably be willing to
help less experienced people out with bookkeeping and such, because she's
bored. Smile

Not exactly in it for the employee discount.

> I'm not saying you have a bad idea. Two decent sized colleges is
> certainly promising. But I am saying that trying to run a retail store as
> a hobby *is* a bad idea, even if you can afford to lose every penny.
> Because you probably will.

> Do you have any retail experience at all?

Nope!

And this is why I am, say, asking about things here, rather than trying to
sign a lease.

--
Copyright 2008, all wrongs reversed. Peter Seebach / usenet-nospam.TakeThisOut@seebs.net
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