Opening A Lfs

[lizc]

Not really a good climate for opening a small business I'm afraid.
I've done loads of research as to doing the exact same thing and in todays economic situation I decided it was no good
persuing this and to loose money to chase a hobby oriented whim.
Sorry to be so negative but it is hard times for the independant trader at the moment.

Maybe both of you (Riff and Big C) could hold on to the dream for a few years til things pick up?
I'm sure we could all do with a few more LFS run by knowledgeable people!


Liz

 

[modaz]

Not really a good climate for opening a small business I'm afraid.
I've done loads of research as to doing the exact same thing and in todays economic situation I decided it was no good
persuing this and to loose money to chase a hobby oriented whim.
Sorry to be so negative but it is hard times for the independant trader at the moment.

Nothing negative about that comment.

This climate is hard at the moment. A business what ever takes a couple of years before things start to show as a profitable business and its this time before thats the hardest. We were gunna expand to a much larger premises, cant go into too much details but we have held back instead for a while, nothing to do with cash flow just the fact of not knowing what is around the corner for in this economy, we had the re-fit instead to meet with needs, it wasnt worth the risk of forking out the cost of setting up and employing an extra 10 staff to get it to work. Small business' suffer the most I suppose due to the lack of available stock due to space allowed, their costs may be lower than the larger ones but the larger ones tend to have a high % discount with major suppliers so their margins are better and give more profit and they also have the space to give a larger range of fish, whether they are healthy or not so this in turn tends to to keep them floating.

 

[BigC]

Just as a foot note to all of the above, it may well be easier to purchase an established business rather than start totally from scratch, that is when thing look a little more certain on the financial front
Something of this nature
http/uk.businessesforsale.com/uk/Highly-...e-For-Sale.aspx
Regards
BigC

 

[jonp]

I work for a wholesaler to retailers of a non-essential market (not fish) and we have helped many with the training and information they need to set up over the years in the market.

Points i would make to help you reach a decision:

1) Every (well 95%) new shop owner underestimates the time and commitment involved in becoming their own boss and in particular the fact that in the beginning you will not draw any sort of salary/income (this can last for a year or more - are you prepared for this?).

2) Businesses that start up in a recession tend to be better funded and more likely to survive than those in the boom years funded on credit cards. If you do your research from a disconnected realistic point of view and produce a proper business plan there could well be the potential even in this time.

This does require a full budgeting exercise including the following costs:
Rent & service charges; rates; energy; water; waste disposal; marketing (if you choose an off high street location you MUST spend the rental saving on advertising or the lack of footfall will kill you quickly); Insurances; soap & toilet paper; your fuel to get to work and back each day; banking charges (only free for the first year or so for businesses); all other overheads I have not put in.

Then you must cost up your start up costs such as:
Fitting out the unit with the relevent power supplies in the right places; shop fittings from shelves; till; sinks for hand washing; heating; lighting (its there but is it right for your experience); decorating; any other work that needs doing/equipment you require.

Then you can calculate your break even point - and therefore determine how much MARGIN (differnece between the cost you buy the products in at and the price you sell them for) you must be be taking from each days sales to stay afloat.

Then you need to start looking at where the trade buy their stock from and the margins you feel you can make on the products. Bear in mind that many companies are not offering credit terms to new customers so you must be able to initially pay upfront for stock.

Then you need to do some market research and determine if you can sell the amount of stock that you need to, to cover the breakeven point you calculated earlier based on running overheads and start up cost financing and then hopefully make your income. Remember it is not a crime to make profit on a sale.

3) If you are selling second hand equipment you MUST tell the insurance company providing your liability cover.

4) get a good accountant/bookkeeper on hand from the start - cash is king and if you dont understand both what you have and what you owe when you will run into trouble fast.


In essence do your research and dont let your heart overrule your head.

 

[england]

It can work and doe's work. Iam from bournemouth and have watched modaz come up from nothing to where he is today, they make it look so easy, but id imagine behind the scene's it's not all rose's......
The first shop they were there only a short time before upgrading to bigger premise's.....
The shop is clean/neat and tidy, the area is good,there are other store's in the area but this shop obviously doe's something good as there getting better and better
location is not alway's a big problem as modaz's shop has an awful parking area but people still make it there fighting through thick and thin!!!!
Think a lot has to do with passion/dedication and bussiness management, first few year's i think would be the toughest,basically selling fish you have cared for already and not so much monster fish as the avarage person can't care for monster fish

 

[modaz]

It can work and doe's work. Iam from bournemouth and have watched modaz come up from nothing to where he is today, they make it look so easy, but id imagine behind the scene's it's not all rose's......
The first shop they were there only a short time before upgrading to bigger premise's.....
The shop is clean/neat and tidy, the area is good,there are other store's in the area but this shop obviously doe's something good as there getting better and better
location is not alway's a big problem as modaz's shop has an awful parking area but people still make it there fighting through thick and thin!!!!
Think a lot has to do with passion/dedication and bussiness management, first few year's i think would be the toughest,basically selling fish you have cared for already and not so much monster fish as the avarage person can't care for monster fish

well thanks nelly, Shucks . yeah the first year was miserable this 2nd year has been so much better and yes we do it right and far much better than anyone else so thats my secret. Just wish I could knock down a few shops next to us and turn it into a car park. At time is isnt easy, and behhind the scenes can get chilling with mixed views on issues but we sail through it and get things done. Costs can be a pain in the BUTT i broke the fax machine by dropping it and have gone through 2 laptops in a matter of 18 months so there is an instant cost of that before insurances pay out.

 

[DiscusKeeper403]

Im looking for some advice on opening up a small aquatic shop, do's and dont's all welcome.
I had to give up truck driving as i was away all week delivering cars all over the uk, to look after my kids while the wife goes to university doing a social work coarse.
So im looking at a small shop that will have approx 30 tanks and will leave a little room for food and accesories.
I will also be trying to get a few secondhand tanks in as everyone wants a bargain.
There is a small petshop on the other side of town that does a few fish and bits , but thats it, so the competition is not a worry really.

So im going to have a go, all suggestions appreciated.
Some might say, keep my money in my pocket and do something else, but thats not going to stop me trying this.

Thanks

I would personally recommend setting up a drip system. Keep tanks clean, and import high quality fish, try to get the best quality possible. Keep up with tank maintenance, scrubbing algae, topping water off and siphoning/water changes. Give out great customer advice and information, researching any fish you import may aid in this.

I would also recommend tanks ranging in size. I would not recommend a centralized system, rather have separate filtration for each tank.


As for people stating shops without dry goods don't do well, I would fight this point. There are 4 or 5 small locally owned stores in my area that sell almost no dry goods. One I can especially remember being popular is a store called Golds Aquarium. They specialize in rare and common Cichlids. They do also sell other tropical fish, all at really good prices.

The main reason why these stores do well is because they are renowned for selling really high quality fish. I went in there once and asked for a gourami. The guy working refused me the fish because he said the quality wasn't good enough!!

 

[Riff]

Thanks for your input, many things to think about, most id already sorted , but there are still things to get sorted.
As far as dry stock, i will get as much as funds allow without getting into trouble, and will build it up slowly over time.

Thanks again
Riff

 

[saz326]

Looks like good advise.

Just dont carpet the floor of the shop if you do decide to open one! COncrete painted floor with a drain in it and a slight slope leading to the drain. An old garage would be great for this. (drain in the floor means easy water changes once the customers go home! Simply siphon onto the floor and let it run away!)

People would prefer (in my opinion) to go to a shop in an industrial area than to have to carry all their fishy goods around town. So go for a practical building with lower rent oposibilities- not a high street jobby.

Id be cheeky and visit your local shops. See which kinds of fish they seem to sell more of and then ensure you have the ability to outcompete on these high sellers. Start looking at bulk-buys of foods and aquarium consumables like lighting and gravel.

 

[bronzecat]

Hi Riff

I have a bit of knowledge about Minehead There used to be 2 LFS that i can remember, 1 at the bottom of the Parks, and the other At Alcombe. They both closed down a number of years ago, nothing to do with any resession. So, it may be worth while checking what the demand is?

Also, as Taunton is only 26 miles, you have Taunton Aquatics which is pretty well established and big. There is also Bow aquatics and the other one out on the Wellington road from Taunton. Cant remember if there's one at Wyevale opposite Norton manor camp?

It could work in your favour though If fishie people from Minehead are having to travel along that flippin useless road, LOL, they may welcome a local one We have 7 LFS within 30 minutes and they are all doing ok.

It might be worth seeing what interest there would be for an aquatics club? Or see if there's one already going.

Like Modaz says, its important to get an idea from customers as to what they want, and then stock it I travel past one lfs to get to another one that i know will have what i want. And then i invariably spend more than intended LOL

 

[Gilli]

Dont know how much you want to spend but you might like to take a look at this tank set up on ebay - item no 220384029066

Its 30 shop tanks - says its worth £15,000 going for £2,000

Also can I suggest you print an information note and stick it next to the tank for each tank of fish giving info on if they are community fish, what to feed and how big they grow? It will save you answering the same questions a hundred times and make people who have no idea and would just buy on a whim knowledgable to their needs.

 

[snowflake311]

I want to add my 2 cents. I play with the idea in my head of opening a fish shop. I think setting up a fish store will be Lots of work and will keep you away from your family al lot at first. It also is not cheap to start up.

What I think would be a good way to start is do it as a full pet store. Sell all pet products but have small but great selection of fish and fish supplies. As your store grows in popularity and the name gets out then you can slowly start to switch to an all fish only store. I think there is more money in pet shops then just aquarium stores because you are attracting more then one group of people you see what I am saying.

Some time down the road I want to open a pet-store with dog grooming and specialise in fish on the side. Have all the normal pet shop stuff plus an awesome selection of healthy fish with a staff that KNOWS what they are talking about. That is my plan. Oh and you have to have saltwater too if you are going to be a aquarium store. Lots of people are really getting into saltwater. not having that will just narrow down the type of people you attract. You want to get them all the salt and the fresh water people.