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Entrepreneurship:  Opening a Store  |
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applelady
Farmgirl in Training
21 Posts
Gail
Grand Rapids
MI
USA
21 Posts |
 Posted - Feb 08 2006 : 2:47:52 PM
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Has anyone out there ever opened up a store or a gift shop? I'm thinking about renting a store and selling some primitive product lines. I found a very small store that is for rent. It's in a good location and it is very reasonably priced. I really don't know what is all involved with opening a shop and was wondering if anyone has any insight. I'm not even sure of the right questions to ask before renting a shop. If anyone has any information that they can give me it would be great. I have a good paying job right now and carry the insurance coverage for the family. It's kind of a scary thought to leave that and try to start something on my own, but it's a dream that I have had for a long time. Please let me know any pro's and cons if you have any. Thanks
Gail
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Aunt Jenny
True Blue Farmgirl
11381 Posts
Jenny
middle of
Utah
USA
11381 Posts |
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abbasgurl
True Blue Farmgirl
1262 Posts
Rhonda
USA
1262 Posts |
Posted - Feb 08 2006 : 6:16:07 PM
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Hi Gail,
I used to have a giftshop. We sold all kinds of herbal products, from decorative things, to food & bath products.
Starting out you will need to get a state tax ID# for buying wholesale (both supplies & inventory).You might need special permits or pay special tax if you are within the city limits. Check with the Chamber of Commerce in your area. You will need to carry insurance on your inventory, and also liability to guard against injury to customers in your shop. Ask how much the utilities currently are on the building, and get a copy of the last few months heating or electric bills if possible. Figure out and budget for displays and decorating cost. Will you run the shop each day or will you need to hire employees? Will you make or grow all of what you sell, or will you need to supplement your inventory with things from other crafters? Some banks will issue a line of credit to small businesses. It's like a loan, but you only use the cash you need and make payments back into the account as you can. I used this when I was getting started to purchase inventory.
I think the biggest thing to look at is how much traffic the area gets and what kind of people shop there. You might ask other similar local retailers how things are going for them. Things seem to be slow for many crafters right now. I notice the sales are slower at fairs & shows too.
I loved talking with people and doing the crafting. I also did demonstrations and had classes at the shop. Those were my favorite parts of the job. The bad part was having to be there every day (I had no employees) and trying to keep inventory stocked. I think you will have to sell other mechandise both for variety and to keep your inventory high. As a person who had marginal health insurance for years, I hesitate to tell you to give that up! Our family got bogged down by medical bills, it can happen SO fast! Is there a way to test the waters, perhaps a partnership with another crafter, before you give up the "good paying" job?
I hope that helped without discouraging...if you think of anything else, feel free to ask either here or on PM!
Rhonda
...and I will sing at the top of my lungs, and I will dance, even if I'm the only one! |
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therusticcottage
True Blue Farmgirl
4439 Posts
Kay
Vancouver
WA
USA
4439 Posts |
Posted - Feb 08 2006 : 7:43:03 PM
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Gail -- my daughter, Missy, had her own store. She did salvage, shabby chic style furniture and accessories. For several years she had booths in antique malls and did shows. The dream for a store was always there. One day she was driving through this little town, found a small store front, and decided to go for it. She started out with her own things and advertised for people to consign in the store. That is a good way to have inventory without having to put out a lot of money. But you have to make sure that you get consignors that do things that go with the look of your store. We had people bringing in all kinds of stuff (sometimes junk) and we turned them away if what they had didn't fit.
After two years Missy has to close the store due to health problems. It was very hard because we both loved being there and loved all our customers.
You do need a tax ID number, will probably need a credit card machine, insurance for your business and most importantly, good bookkeeping software. I did the books for the store and we used QuickBooks. You need to sit down and work up a budget to include all your fixed expenses and then allow for advertising and marketing. Advertising and marketing is crucial. People have to know that you are there. In any business there are lean times so it would be a good idea to have enough money in the bank to be able to meet your expenses for a couple of months if times are slow. If you have a good job would you be better off getting someone to manage the shop for you so that you could continue to work? Could your business afford that? Could you get enough money from the business to pay you close to what you make now and provide insurance for your family? I don't want to be discouraging but neither Missy or I were able to draw any kind of salary out of the store for the first year.
If you have any other questions please feel free to email me or Missy (lamargueritefarm).
Mine is just a little old fashioned garden where the flowers come together to praise the Lord, and teach all who look upon them to do likewise.
-- Celia Thaxter
http://therusticcottage.etsy.com
http://rusticcottage.blogspot.com/ |
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farmgrlchick
True Blue Farmgirl
439 Posts
Theresa
Columbus
Montana
USA
439 Posts |
Posted - Feb 08 2006 : 7:55:14 PM
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Ok This is a great topic and I was really, maybe, sorta, thinking about the same thing. What do you think about consigning your own things in someone else's shop? My thought ~ there is someone else doing all the 'work',overhead and such. The other option I was thinking was having a 'sale' of sorts at my house twice a year, much like a yard sale or something like that. Or the farmer's market or open air market during the summer months. I know I am rambling it's all kind of a jumbled mess in my brain.
Theresa |
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theherblady
True Blue Farmgirl
510 Posts
Jan
Glasford
Illinois
USA
510 Posts |
Posted - Feb 09 2006 : 08:00:43 AM
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Me tooo Theresa~~ Any one have insight on a "sale" type business? We have a couple ladies who would have a spring and fall and Christmas "show" and they sell plants in the spring and crafts. Now they have combined and I hear maybe they are thinking of stoping. I would like to fill their shoes..
Any suggestions?
Anyone know if you have to have a license for a bake sale? I was thinking that (in preparation of a tea room) I could bake some samples of treats I might serve and then sell cookies etc at a type of bake sale while I was selling other stuff..
There are other girls at work that make crafts and they would join me in my effort...
Jan |
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applelady
Farmgirl in Training
21 Posts
Gail
Grand Rapids
MI
USA
21 Posts |
Posted - Feb 09 2006 : 08:48:54 AM
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I want to thank everyone for their input. I do have a tax id number and I have a couple of product lines that I would like to sell. I called the bank today and I was told that I needed to apply for a personal loan with my house as collateral. This would be a line of credit. I'm torn between having a shop and selling things online. The online thing would be good. The only thing I don't like about it is that people can't see the product in person before they buy it. How have sales been for those of you that sell online? Right now my head is kind of a jumbled mess also.
Gail |
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therusticcottage
True Blue Farmgirl
4439 Posts
Kay
Vancouver
WA
USA
4439 Posts |
Posted - Feb 09 2006 : 10:08:27 AM
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Jan -- three of us from our Farmgirls group get together and have sales about 4 times a year. It has been so much fun and each person brings their own unique talent. We set up displays just as you would see in a store or boutique which people totally love. We sell according to the season -- garden stuff in the spring and summer, fall and holiday in the winter. We have a mailing list sign up and I send out emails to each person before our sale plus we advertise in the paper. Keeping it to about once every three months, only have have it on one day, and shorter hours (we do ours from 9 to 2) creates a sense of urgency to those buying. Because most things are unique they know that if they don't get it that day then it will be gone. As far a baked goods you should check with the department of health in your state. In WA items have to be made in a commercial kitchen to be sold to the public or you have to add a sticker that it was not made in a commercial kitchen. I say get your group of gals together and go for it!
Mine is just a little old fashioned garden where the flowers come together to praise the Lord, and teach all who look upon them to do likewise.
-- Celia Thaxter
http://therusticcottage.etsy.com
http://rusticcottage.blogspot.com/ |
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theherblady
True Blue Farmgirl
510 Posts
Jan
Glasford
Illinois
USA
510 Posts |
Posted - Feb 09 2006 : 10:31:28 AM
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Thanks for the advice Kay~~ The other ladies have a spring show~~and although it is close...I think I am going to try it..
They also have a legal pad laying there for people to sign up for mailing list..and they have hundreds of people come !
Hey-if you move near Peoria~~we could be 'farmgirl' partners!?
Jan |
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blueroses
True Blue Farmgirl
1323 Posts
Debbie
in the Pandhandle of
Idaho
USA
1323 Posts |
Posted - Feb 09 2006 : 11:13:18 AM
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Gail,
Also check the website for the SBA (Small Biz Admin). There are often classes for people considering opening a biz and a lot of helpful info. They can assist you in the process of applying for loans from a bank, etc. I've gotten a lot of info from them.
Debbie
"You cannot find peace...by avoiding life."
Virginia Woolfe |
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CabinCreek-Kentucky
True Blue Farmgirl
8529 Posts
Frannie
Green County
Kentucky
USA
8529 Posts |
Posted - Feb 09 2006 : 12:11:49 PM
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you are getting great advice .. my biggie suggestion would be: research what you believe will successfully sell in your area .. no matter how much "I" might love a product ... it MUST also be wanted by others who will be visiting my store.
join your local chamber of commerce .. see if you have a 'merchant's association' in your area .. talk to local shop owners.
True Friends, Frannie |
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theherblady
True Blue Farmgirl
510 Posts
Jan
Glasford
Illinois
USA
510 Posts |
Posted - Feb 09 2006 : 12:39:41 PM
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I wonder if you need a license or tax id if you just have a "sale" a couple times a year~?
Jan |
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applelady
Farmgirl in Training
21 Posts
Gail
Grand Rapids
MI
USA
21 Posts |
Posted - Feb 09 2006 : 2:52:25 PM
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Thanks for all the great advice ladies! I'll follow up on your suggestions and hopefully get a little closer to opening a shop.
Gail |
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therusticcottage
True Blue Farmgirl
4439 Posts
Kay
Vancouver
WA
USA
4439 Posts |
Posted - Feb 09 2006 : 5:10:44 PM
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Jan -- I have a business license so that I can purchase fabric and other things for resale. And I also report the tax on any retail sales I make in the State of WA. But if you are having the type of sale you want to do it is considered the same as a garage sale and you probably don't need to worry about it. I know that we live in different states but I'm sure the same applies for garage sales anywhere. You might want to check it out though.
Mine is just a little old fashioned garden where the flowers come together to praise the Lord, and teach all who look upon them to do likewise.
-- Celia Thaxter
http://therusticcottage.etsy.com
http://rusticcottage.blogspot.com/ |
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Photobugs
True Blue Farmgirl
363 Posts
Pamela
Post Falls
Idaho
USA
363 Posts |
Posted - Feb 09 2006 : 10:47:58 PM
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I have a little input. Not to discourage you, but I know several shop keepers and it is a hard way to make a living, especially when you have insurance with the job where you are. The hours are long and it is difficult to take vacations. You don't get paid vacations or sick leave.
I have done craft shows over the last 20 plus years. Some were successful and some not. I have my 'stuff' in two shops, one on consignment and one is a rented space. I do not make alot of money at either. It just gives me a place to put a few things, as I do enjoy making things and retail. The nice thing about this is that I do not have to stay in a shop all day. I can be creating things. Yet, I am a part of a shop experience.
I agree with the idea of having a sale every few months. I have talked about doing this for sometime now, just waiting until I have a place to do it. I am NOT into hauling a bunch of stuff around to sell it, so I dream of having a place where I can set up a shop type area and leave it, just adding new things when I am ready for a sale to the public. I even have designed what this area will look like. I dream about it all the time.
I did have a big sale before Christmas. It took me all week to set up because it was in my house and we had to live here too! It was fun. But I did leave another craft show where I had built a reputation to do this. Consequently, I did not do as well as I had the previous years. I know it will build and I will get people 'trained' to come to my house over time, so patience is required here.
So I do understand what you are feeling. I feel like I was born to be a merchant, so it is with me all the time. I am just not willing to make a commitment to be stuck in a place six days a week. Sounds wishy-washy, huh?
I have sold for a few years on ebay, but mostly scrapbooking stuff from a store I had in my home. I also have some things on etsy. I tend to dabble more than anything, I guess.
I like to do creative things for my church so my time gets spread out. But this is what I choose to do.
Frankly, unless you are in a real hot-spot (location) there is not that much money in it. I base this on what I have been told by shopkeepers that I know quite well. I think most of them have another form of support (hubby's income), so they do it for the love of it.
Just my two cents worth! Best wishes with whatever you decide.
Pamela
"I scream, you scream, we all scream for ice cream!" |
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therusticcottage
True Blue Farmgirl
4439 Posts
Kay
Vancouver
WA
USA
4439 Posts |
Posted - Feb 10 2006 : 07:19:50 AM
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Pamela -- I totally agree with what you about not making much money -- most shops don't. When Missy had her store we got a small salary. We did it because we loved it and we knew we weren't going to get rich. Although that hope was always there!
I think having consignments in someone else's store, a booth in a shop, craft shows, and sales are the way to go.
Mine is just a little old fashioned garden where the flowers come together to praise the Lord, and teach all who look upon them to do likewise.
-- Celia Thaxter
http://therusticcottage.etsy.com
http://rusticcottage.blogspot.com/ |
Edited by - therusticcottage on Feb 10 2006 07:23:49 AM |
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Photobugs
True Blue Farmgirl
363 Posts
Pamela
Post Falls
Idaho
USA
363 Posts |
Posted - Feb 10 2006 : 4:15:23 PM
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Thanks for backing me up Kay. I had a thought that maybe I was too negative.
Sometimes we need to give something a try to know in our own heads that we "gave it a try." It would be unfortunate to give up a job with a regular pay and benefits and then find it causes financial hardship on a family.
Pamela
"I scream, you scream, we all scream for ice cream!" |
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applelady
Farmgirl in Training
21 Posts
Gail
Grand Rapids
MI
USA
21 Posts |
Posted - Feb 10 2006 : 5:38:21 PM
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Thank you ladies! I don't look at it that you're being negative. I like to have all aspects before I make a decision. I'm really leaning towards creating my own website and selling things there. I haven't totally given up on the idea of a shop. As a matter of fact I'm going to look at a shop tomorrow. Basically, I'm looking at it so I have something to compare other shops to when I'm ready to make that move. I might look into something in a few years. I would love to be able to retire by the time I'm 55. Maybe that would be the time to look into setting up a store. Thanks to everyone for all the great information!
Gail |
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therusticcottage
True Blue Farmgirl
4439 Posts
Kay
Vancouver
WA
USA
4439 Posts |
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abbasgurl
True Blue Farmgirl
1262 Posts
Rhonda
USA
1262 Posts |
Posted - Feb 12 2006 : 7:27:17 PM
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Several of you have mentioned having semi annual sales...this was something I have dreamed about doing for years. This year I was asked to join with a group of artisans in my area doing just that! It was so nice to hear the woman tell me that I had a great reputation from my shop days. :) I was very honored to be asked, as these women are GOOD, and have been doing this for over 20 years. Only ten artists are asked to participate each year! I had to choose between a large local craft show and the home sale because the two are one week apart and I'm not sure I can get my inventory back up in between. Anyway, after listing the pros & cons of each type of sale, I am going to do the sales at home. My main reason for doing this was that I can sell ANYTHING I want, including vintage aprons/clothing, even retail other crafters items. I also like that I won't be lugging all my things arond! This group advertises heavily so I will be paying part of that expense. The group also puts out a map showing each home and writes a small discription of what each person does. These are mailed to thousands of homes and put in local newspapers.
I was told to check with the agent who handles my homeowners policy about insurance. It might seem silly, but with so many people coming through I was concerned about injury, damage, dirty carpets etc. The woman who organized the sales told me her sales are good enough that she could recarpet every two years if she chose to...but in general she said people are very thoughtful and careful.
THOUSANDS of "guests" visit these homes over the sale weekends! I'm really excited to be given the opportunity to join in this year!
Several people asked about taxes etc. I agree that having an ID # is essential for buying supplies. You will get a great price break on everything you buy! Unless you are trying to fly under the radar, you will need to pay taxes on what you sell in your home. You are selling retail, which is different from a garage sale type thing. It doesn't matter how many sales you are having, if you are a business, you pay sales tax. It's not hard at all to get set up for taxes & to file the reports! I can do it! LOL
In our county, to sell any homemade food items you must have a license from the county health department, and also cook in a county inspected, approved kitchen. If you know someone who has a resturant or business you can cook there. Some churches or other organizations also have approved kitchens. A friend of mine bakes in her church kitchen and sells at the local farmers market. She & her husband have made enough money in a year to pay the adoption expenses for a little baby boy from Guatamala!
Another very successsful idea is to get a group of several crafters together and rent a space in a high traffic area for your sales. You split the expenses and advertise heavily. I have seen women LINE UP to get into some of these sales! Of course Christmas time is the best for any sale you do.
I have also done consignment, which I hated...one, I had no control over the quality of things the owner might sell next to mine (and there is some junk out there). Two, sometimes damage will occur to your product and most shop owners won't be responsible for that. If you are on the other side, being the shopowner, you have to be firm with people. Everyone & there brother will want you to consign their items. It's hard to say "no" when something isn't up to your standard.
I LOVE doing craft shows! You will be exhausted the day after, and yes, you carry in & set up...but you get to travel, meet new people (plus other artists/crafters!) and the sales can be excellent! There are a lot of online sources for crafters that list shows by state and mileage. Most of the good ones are by subscription. If you do shows my advice is to visit the shows you are thinking about. Start local & small until you get the hang of it. Most shows require your items to be juried in (kind of like being judged), most require insurance, and most will require payment & registration about 4-6 months before the show. If you bail, there are typically no refunds. Booth size is limited (10X10 is standard) and prices are around $80-$120 for two days. If you are outdoors you will need an awning tent for protection and security.
Ouch, my brain hurts! I will think on this some more & add things as they pop into my head! I'm loving this topic too!
Rhonda
...and I will sing at the top of my lungs, and I will dance, even if I'm the only one! |
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The Farmers Daughter
Farmgirl in Training
46 Posts
Sherry
LeRoy
Kansas
USA
46 Posts |
Posted - Feb 13 2006 : 05:47:47 AM
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We actually have a shop almost 99% completed. (It's full of vintage items as well as a few I have made.) Our shop is located in an old cattle shed back of our home that we completely remodeled. The shop and everything in it is 100% paid for. That being said, I still wouldn't try and support anyone or plan on paying any bills with the money we will make from it. This is just my opinion for what it's worth.~~~~ I feel the economy is just to darn bad anymore for a person to risk giving up a good paying job with benefits to follow their dreams. That's not to say I would discourage you from trying to have a shop. Just make sure your DH has enough coming in to pay EVERYTHING in case it doesn't work. I think you have received some good advise here...Try shows or maybe selling from your home (E-bay, ect..) until you have built up a business. While doing this keep your dream of your own shop and if the right opportunity comes along, you'll know your READY for it! If you would like to see pictures of my shop or hear how we did it on a shoe-string budget, please e-mail me. Good luck Gail, you will make it, just do like you are doing now...Check out everything ten times before making the plunge! Hugs,
Sher, The Farmer's Daughter |
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theherblady
True Blue Farmgirl
510 Posts
Jan
Glasford
Illinois
USA
510 Posts |
Posted - Feb 13 2006 : 08:27:46 AM
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Thanks for the advice and great encouragement Rhonda~! You have shared alot of good information with us...!
Jan |
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Photobugs
True Blue Farmgirl
363 Posts
Pamela
Post Falls
Idaho
USA
363 Posts |
Posted - Feb 13 2006 : 5:58:28 PM
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Sher,
How about posting some pictures of your shop, both inside and out? I think we'd all like to see it.
A cattle shed sounds like a wonderful place for a shop.
Pamela
"I scream, you scream, we all scream for ice cream!" |
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farmgrlchick
True Blue Farmgirl
439 Posts
Theresa
Columbus
Montana
USA
439 Posts |
Posted - Feb 13 2006 : 6:03:14 PM
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Let's see pictures! And I would love to hear how you did it!
Theresa |
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The Farmers Daughter
Farmgirl in Training
46 Posts
Sherry
LeRoy
Kansas
USA
46 Posts |
Posted - Feb 15 2006 : 05:40:21 AM
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I'd love to post pictures but I'm afraid I'm not bright enough to. HA I'd be happy to send them to you if you want to send your e-mail address. Just e-mail me! Hugs,
Sher, The Farmer's Daughter |
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applelady
Farmgirl in Training
21 Posts
Gail
Grand Rapids
MI
USA
21 Posts |
Posted - Feb 17 2006 : 4:39:12 PM
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| I feel like I've gone back and forth a million times trying to decide what I want to do. I came to the realization that I can't rush things when it comes to owning a shop. I'm really leaning towards the internet thing. I'm thinking about making my own website. Does anyone have any ideas about how to draw people to the site? What about selling on ebay? Does anyone have any good or bad experiences that they'd like to share? I am planning on selling some things on ETSY. I've done the craft fair thing and haven't had much luck. Mostly, I've been doing fairs at schools. Has anyone had luck selling things anywhere else? I wouldn't mind doing craft fairs if I could find a good one. Any suggestions are welcome!!! |
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Entrepreneurship: Opening a Store |
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Opening a Store
