Hello-I am contemplating opening a fish store in my local area. I was hoping sombody that owns or has own a pet fish stor could give me a little insight on this.I have access to 1200 sq ft commecial building for the very low price $390 a month with every thing included. I went and looked at the place and it was perfect for a fish store. I told the owner what I was planning and he was all for it. I am planning on opening a mainly saltwater fish store but I will carry a selection of freshwater fish. My target population is 44,500. There is only 1 other fish store in this area that sells just the bread and butter freshwater fish so as far as saltwater fish goes there is no competition in this area. Lets say 1% of those people would be interested in my store and i made 10 off each of them 445 people a month. Do you believe that my fish store would profit or just be a waste of money.Please feel free to let me know what you think. Any tricks of the trade would be a lot of help as well.My sart up cost is 10,000. Do you think I can start a fish store fore that amount of money.
Opening a pet store
- Thread starter calcofish
- Start date
luvtolean
New member
$10,000 sounds woefully undercapitalized. I have no idea what it costs to open a fish store, but I've seen several stores with more than $10k in skimmers for their tanks...and that includes nothing else.
Shooting from the hip, I'd guess $50-100k is much more like what you'd need to start. With $10k and some credit, you can look into various small business programs, and probably could get started.
Shooting from the hip, I'd guess $50-100k is much more like what you'd need to start. With $10k and some credit, you can look into various small business programs, and probably could get started.
ri
Premium Member
I agree that 10K is low. Not sure that you need 100K either.
Also... assume it will take time to build the store (stands, tanks...) and then time to cycle the tanks... my guess is 2-3 months of work before the store opens.
Does the $390 include gas and electric?
I would double check the start-up costs and your potential market. If the number still work, give it a try!
ri
Also... assume it will take time to build the store (stands, tanks...) and then time to cycle the tanks... my guess is 2-3 months of work before the store opens.
Does the $390 include gas and electric?
I would double check the start-up costs and your potential market. If the number still work, give it a try!
ri
I like all the replies that I am getting.Thank you. Considering my location I believe that, yes, 10000 is a small amount of money to open a fish store but given my location I believe it is enough to start and i can add in the future. I have rechecked my startup costs and potential market and have come up with this. my total start up cost will be 8,489.95.Now i based my prices on the lowest retail supplier i found. And of course ordering from a wholesaler will be cheaper, so i believe that i will get even more stock than anticipated. My market consists of 44500 people.If .25 of a percent buy 22.00 worth of stuff from my store a month i will profit 1223.75 a month. that will keep the store open and get the bills paid. I believe i will make more than that with ease.What do you think?
jokeloma
Premium Member
Let me hit it from another direction. What is your personal life like, are you married, kids, and how are you set for debt.
If your young and ambitious and single with no kids then you can almost live there which is exactly what every new business needs someone who can do it all. I think that you can start small maybe get a few maintenance accounts to cover the bills.
With that being said if you have a wife/husband and kids than I would say just enjoy the hobby. Don't forget to add in things like monthly taxes and family insurance. I'm sorry if you have been around small business owners and you already have added up these costs.
If your young and ambitious and single with no kids then you can almost live there which is exactly what every new business needs someone who can do it all. I think that you can start small maybe get a few maintenance accounts to cover the bills.
With that being said if you have a wife/husband and kids than I would say just enjoy the hobby. Don't forget to add in things like monthly taxes and family insurance. I'm sorry if you have been around small business owners and you already have added up these costs.
jokeloma
Premium Member
you didn't say anything about a partner? I am really sceptical about partners. When I bought our burger joint my brother wanted to go partners and I could see the benefits but something in the back of my head said not to do it. Looking back I know it was the right thing. Keep your freinds and your money seperate I think you will be happier in the long run. Sorry if that is to much like a rant.
MrChico
New member
A fish store here in Wichita Kansas just shut their doors there are 3 other fish stores and 4 petstmart/petcos serving 400,000 people, he had supplies for what would be considered enough for a small store and he was tring to sell it all for $40,000+, for just the dry supplies not even livestock and all the tanks and lights were used. I believe you will need at least $50,000 just to open the doors and not feel like a bait shop with a side business in tropicals. Sorry to be so harsh but its a cut throat industry and you need to bring something to the table.
brighteyes
New member
My opinion- I would start gathering as much used equipment for the store as possible. I think on your buidget you have to buy used- just my opinion but I cant imagine going back into a saltwater store that had only 10, 000 dollars in just livestock alone- not to mention all the other stuff needed for reefs such as additives, filters, salt, hydrometers, the list is endless. I think selection is key- you want the customer to feel like they have options- If you only have a small inventory it turns people off unless you have odd cool stuff for cheap- but the really cool stuff usually does not sell that well as its expensive. In my extensive experience its the bread and butter stuff that sells. In the store I work at the cool stuff just sits around while the bread and butter boring stuff sells. We have a superman montipora and real cool acros but colt corals and xenia, corals I would never keep, sell the best. I think internet business as products are sold for near wholesale pricing, has an important influence on how a store operates and is needed to be considered carefully ( i.e. a person can buy a really cool acro or fish for half the price compared to buying it in your store) Ok I am getting way off track- setting up a store is a huge investment- way more than 10, 000 dollars, even for a small business, I would do as much reasearch as possible (as I am in the same postition as you) and would start collecting used equipment because as we all know there is not a lot of resale value in aquarium products, so you can get stuff cheap. Also, carefully sellect your wholesaler because so much is going to be banked on that first order so you better research like crazy.
One last thing diversify- go both fresh and salt- see what sells and go from there- but diversiy
One last thing diversify- go both fresh and salt- see what sells and go from there- but diversiy
graveyardworm
Premium Member
The electric bill for a properly set up LFS isnt cheap, if I remember correctly the store which I frequent which is about half that size had an avg. electric bill of around 800.00 per month. They run MH on their coral tanks. I know electric rates vary but 390.00 a month for everything included is only going to last until the first utility bill rolls in. Also 10,000 for startup sounds way low have you done any sort of business plan yet? Also you'll find some good threads and comments from Anthony in this forum regarding starting an LFS or coral propagation for profit. Where are you located? Have you checked any local clubs? How much talking have you done at the LFS you currently go to, to see if there is a demand in your area? Questions to ask yourself. One of the larger LFS in my area sells puppies to help pick up slack.
asphaltpilot
New member
Opening a business like a fish store (especially a marine/saltwater store) is risky, imo. Do make sure the location in question is a good location. They say, "location, location, location" for a reason.
You're going to have to think of things to keep interest within your market.
- Advertise
- Host classes for reef/fish keeping
- Create a web site
- And think about selling products online
It's so convenient to buy fish/reef products online, and cheaper too. You'll have an uphill battle unless you stay innovative and use current trends and technologies to your advantage.
There was a place where I used to live that earned my loyalty. The manager would take time and explain things, and listen to problems, and suggest solutions. He was also a guy who had great integrity. He would never sell a fish that looked healthy but wasn't, or sell a fish that wasn't good for my tank, even if it meant earning lots of $$ for the day.
Good luck
You're going to have to think of things to keep interest within your market.
- Advertise
- Host classes for reef/fish keeping
- Create a web site
- And think about selling products online
It's so convenient to buy fish/reef products online, and cheaper too. You'll have an uphill battle unless you stay innovative and use current trends and technologies to your advantage.
There was a place where I used to live that earned my loyalty. The manager would take time and explain things, and listen to problems, and suggest solutions. He was also a guy who had great integrity. He would never sell a fish that looked healthy but wasn't, or sell a fish that wasn't good for my tank, even if it meant earning lots of $$ for the day.
Good luck
rustybucket145
New member
44k people sounds like a VERY small market. Is there a Metro area near by? Are there any other competitors that advertise in your market? What do the other stores look and feel like? IMO if you are only looking at 44k people and only a 10k bank roll (I'm sorry to say) You are looking at a failing business within a year. You should have at least enough capital to support yourself for the first year MINIMUM. Some businesses don't turn a profit until the 4th or 5th year. Your number crunching seems a little out of whack. Have you taken into account Insurance? Business License? Taxes on Employees? You may say that these are 'little things' but that is exactly what is going to eat the 10k in a month!
Not trying to be harsh or deter you. I have been involved in several businesses both successes and failures and one thing's for sure. You are always going to need three times as much money as you anticipated.
Good Luck!
Not trying to be harsh or deter you. I have been involved in several businesses both successes and failures and one thing's for sure. You are always going to need three times as much money as you anticipated.
Good Luck!
shadofax69
In Memoriam
Definatly need more information. What type of equipment are you going to buy. What kind of things do you want to keep and sell. How are you getting the rent at the place so cheap. I started a small online business selling coral for around $2500 and when I say small I mean really small. I am keeping my head above water with my business but that is about it. If I didn't have another source of income there would be no way I could support myself. Just something to think about, chances are you will not turn profit until at least the third month probably later than that
CaptiveMarine
Premium Member
If everyone else hasn't already scared you off, here are a few more things to think about.
I'm currently setting up a small hatchery and I've been looking very close at prices on equipment and livestock, and I don't think $10,000 is anywhere close to enough. So far the project I'm working on has 33 tanks, and the tanks, pumps, skimmers, lighting, plumbing, etc have come up to over $5000 dollars wholesale and I don't even have any water in them yet (I should have by the weekend).
Have you priced insurance yet? You need to look at that. If you don't have libality insurance it would only take one customer slipping in some spilled water and you could loose everything. You also need to hire a lawyer to set up a LLC or S Corp to protect your personal property.
I know you said you got a good deal on space, but I don't think your landlord really knows how much elec. and water you are talking about. A friend of mine owns a store and I've seen months that his elec. and water bill combined were over $1400.
I'm not trying to discourage you. I started my first business with a little less than what you are starting with, and when I started my latest venture I waited until I had the money I needed to start it right. It makes things at home a lot nicer.
I'm currently setting up a small hatchery and I've been looking very close at prices on equipment and livestock, and I don't think $10,000 is anywhere close to enough. So far the project I'm working on has 33 tanks, and the tanks, pumps, skimmers, lighting, plumbing, etc have come up to over $5000 dollars wholesale and I don't even have any water in them yet (I should have by the weekend).
Have you priced insurance yet? You need to look at that. If you don't have libality insurance it would only take one customer slipping in some spilled water and you could loose everything. You also need to hire a lawyer to set up a LLC or S Corp to protect your personal property.
I know you said you got a good deal on space, but I don't think your landlord really knows how much elec. and water you are talking about. A friend of mine owns a store and I've seen months that his elec. and water bill combined were over $1400.
I'm not trying to discourage you. I started my first business with a little less than what you are starting with, and when I started my latest venture I waited until I had the money I needed to start it right. It makes things at home a lot nicer.
1) If you are going to do this, do it without your cousin. Trust me, don't risk family over a business. It's a bad deal all the way around.
2) I read over your math above, and I found a couple of issues. You say if .25% (so .0025 of the people) are your market, then you have 111 people that would buy from you. Let's say, generous estimate, they do shop with you once a month and each person buys $22 worth of merchandise, you have an income of $2442. What you profit on that is going to vary based on whether they buy dry goods or livestock. A more realistic profit after the initial cost of goods sold, rent, utilities, insurance, misc supplies, shipping, etc. is probably in the $600-750 range. Now if you and your cousin are splitting that, not much to live on.
3) Develop a business plan, talk to reefkeepers in the area, find another market that is close to the same size as yours and talk to other LFS owners there, and really think this through.
4) $10k sound really low to me too. If you're going to do it, do it right the first time. Your starting inventory will probably run that much for a 1200 sqft store.
5) Good for you, doing the research prior!
2) I read over your math above, and I found a couple of issues. You say if .25% (so .0025 of the people) are your market, then you have 111 people that would buy from you. Let's say, generous estimate, they do shop with you once a month and each person buys $22 worth of merchandise, you have an income of $2442. What you profit on that is going to vary based on whether they buy dry goods or livestock. A more realistic profit after the initial cost of goods sold, rent, utilities, insurance, misc supplies, shipping, etc. is probably in the $600-750 range. Now if you and your cousin are splitting that, not much to live on.
3) Develop a business plan, talk to reefkeepers in the area, find another market that is close to the same size as yours and talk to other LFS owners there, and really think this through.
4) $10k sound really low to me too. If you're going to do it, do it right the first time. Your starting inventory will probably run that much for a 1200 sqft store.
5) Good for you, doing the research prior!
Chihuahua6
Premium Member
You have received some great advice so far. My husband and I each own a business. Mine is an internet based store that sells natural baby products. I had low overhead and start up costs. My husband has a vending machine business, high start up costs, equipment etc. My business is 4 years old, his is 10 years. Here are some of my opinions based on actual experience.
1. $10,000 to start is most likely impossible. There are tons of hidden expenses that will pop up constantly.
2. Do not, I repeat do not use a partner, especially family or friends. It's more difficult coming to agreements with a work partner than with a spouse. Despite the best of intentions it can tear a family apart.
3. You can't estimate your potential customers the way you have. You need to study the other store and who shops there, how often, for what, how much they spend etc.
4. Basically what I stated in #3, know your competition and know it well.
5. Know your market. What are they looking for? What do they expect? Go over and beyond that.
6. The rent all inclusive means the landlord will be at a loss renting to you. This makes no sense what so ever from his prospective. Water and electric should be seperate in this deal. If not, something is fishy.
7. Legal expenses to make your business legit, dry goods, live goods/losses, equipment, construction costs, advertising etc. all will cost more than you think. Everything will cost more than you planned no matter how well you planned it on paper.
8. Be an expert in your field before you open a business. I don't mean an experieced hobbyist here, I mean a true expert like Anthony Calfo. You will have every question thrown at you and you need to be able to answer everything thrown out at you or you will look like a fool and get a bad reputation. I know my products inside and out and I have had conversations up to 1 hour long helping out new parents. You need to be able to do the same. This builds your reputation and word of mouth business which is so important.
9. If you do everything correctly and have a thriving business going, beware of Petsmart and Petco. They will put you out of business unless you can be creative enough to change your nitch to something they do not offer. Let's say an aquarium maintenance business. This would actually be a better, less risky business to venture into than a retail store but that's another topic.
HTHs
1. $10,000 to start is most likely impossible. There are tons of hidden expenses that will pop up constantly.
2. Do not, I repeat do not use a partner, especially family or friends. It's more difficult coming to agreements with a work partner than with a spouse. Despite the best of intentions it can tear a family apart.
3. You can't estimate your potential customers the way you have. You need to study the other store and who shops there, how often, for what, how much they spend etc.
4. Basically what I stated in #3, know your competition and know it well.
5. Know your market. What are they looking for? What do they expect? Go over and beyond that.
6. The rent all inclusive means the landlord will be at a loss renting to you. This makes no sense what so ever from his prospective. Water and electric should be seperate in this deal. If not, something is fishy.
7. Legal expenses to make your business legit, dry goods, live goods/losses, equipment, construction costs, advertising etc. all will cost more than you think. Everything will cost more than you planned no matter how well you planned it on paper.
8. Be an expert in your field before you open a business. I don't mean an experieced hobbyist here, I mean a true expert like Anthony Calfo. You will have every question thrown at you and you need to be able to answer everything thrown out at you or you will look like a fool and get a bad reputation. I know my products inside and out and I have had conversations up to 1 hour long helping out new parents. You need to be able to do the same. This builds your reputation and word of mouth business which is so important.
9. If you do everything correctly and have a thriving business going, beware of Petsmart and Petco. They will put you out of business unless you can be creative enough to change your nitch to something they do not offer. Let's say an aquarium maintenance business. This would actually be a better, less risky business to venture into than a retail store but that's another topic.
HTHs
vthondaboi
Premium Member
The question is, can you think like a store owner?
Lots of people give good advice about the hobby and ethics, but in the end they don't pay YOUR bills.
Lots of people give good advice about the hobby and ethics, but in the end they don't pay YOUR bills.
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