LFS Opening cost questions?

[Clowning_Around72]

So I am looking to start an LFS in NY. I intend to work with saltwater fish and corals, freshwater fish and plants, specialty imported freshwater fish from certain locations in Asian, Russia, and North America plus if a contact works out maybe the Congo, and I would like to also sell reptiles and amphibians plus dry goods and likely aquarium services. Assuming I wanted to get a storefront now what should I expect the cost to set everything up to be I was thinking $100,000 minimum am I misguided I believe I have good sources on livestock. I just need info on what a location and initial tanks and water and gear cost?

 

[Clowning_Around72]

Should I expect lower or higher?

 

[KustomAquarium]

The bulk of your cost will really depend on your equipment and stock. Are you leasing a storefront? Own a storefront? Building one? For $100k I could have a pretty sweet store with some crazy livestock.

 

[mike550]

@AC1211 I’ve seen other posts about opening up a LFS. So there are definitely some threads on this and some really good commentary.

From what I recall a lot of folks talked about diversification of offerings (retail sales, maintenance, selling saltwater, etc) and also selling freshwater fish and gear as it was more approachable for new folks.

I don’t think you need $100k for startup costs. But definitely think about your cash flow and reserves.

 

[Clowning_Around72]

The bulk of your cost will really depend on your equipment and stock. Are you leasing a storefront? Own a storefront? Building one? For $100k I could have a pretty sweet store with some crazy livestock.

Looking to own a few existing businesses wrnt under due to covid so I am hoping to find a good place.

 

[r20crazy]

I wouldnt do it... when times are tuff 1st thing to go is unnecessary spending (like hobbies). $100k MIGHT cover rent, utility, and insurance in CA (assume NY is similar) for maybe 6 months. Then you have initial equipment and setup costs, inspections, certs, monthly consumables (salt/food/filters), livestock losses ( I would budget for 15+% losses from suppliers alone), employee costs, vehicle costs and repairs plus additional insurances if doing service calls, etc.... 100k doesn't go as far as people think.

 

[Drendo]

You could make a small fortune running and operating an LFS...all you have to do is start with a large fortune.

In all seriousness, as a person who owns and operates businesses, my gut feeling is that you will need to have atleast twice that amount on hand. Most certainly you are going to have to make significant leasehold improvements and a display tank alone could easily cost $20k or more, before you even start getting into your system tanks. You might be able to get away with an amount in the $100k range if you decided to do online sales and and didn’t need aesthetic appeal for walk in business.

You may be able to get your landlord to front your TIs, but either way you will pay for it.

Maybe you can lease a small inexpensive industrial space somewhere near where you want to open and start with online sales. If it works out, you can open up a small LFS and use your industrial space for storage and propagation.

 

[Clowning_Around72]

I wouldnt do it... when times are tuff 1st thing to go is unnecessary spending (like hobbies). $100k MIGHT cover rent, utility, and insurance in CA (assume NY is similar) for maybe 6 months. Then you have initial equipment and setup costs, inspections, certs, monthly consumables (salt/food/filters), livestock losses ( I would budget for 15+% losses from suppliers alone), employee costs, vehicle costs and repairs plus additional insurances if doing service calls, etc.... 100k doesn't go as far as people think.

I was thinking 100k sounded too small given some of LFS I have seen out there.

 

[Clowning_Around72]

You could make a small fortune running and operating an LFS...all you have to do is start with a large fortune.

In all seriousness, as a person who owns and operates businesses, my gut feeling is that you will need to have atleast twice that amount on hand. Most certainly you are going to have to make significant leasehold improvements and a display tank alone could easily cost $20k or more, before you even start getting into your system tanks. You might be able to get away with an amount in the $100k range if you decided to do online sales and and didn’t need aesthetic appeal for walk in business.

You may be able to get your landlord to front your TIs, but either way you will pay for it.

Maybe you can lease a small inexpensive industrial space somewhere near where you want to open and start with online sales. If it works out, you can open up a small LFS and use your industrial space for storage and propagation.

I had a feeling $100k is too little. I was hoping it was possible with $100k but mentally I felt like $250k in NY was the only route that without a business boom would succeed.

 

[smokin'reefer]

It seems I recall my lfs spent about 50k to expand his selling displays. I believe it had 20 or30 20 gallons and a handful of 40s.
To me that seems right being that I have at least 10k setting up my 175gallon.
I dont know for sure and usually don't like commenting with out first hand knowledge but it seems it would be hard to set up a shops tanks for 100k.
Now if you could get your hands on the gear out of one of the lfs's that recently closed. That could be a money saver but a more labor intensive route.

 

[Drendo]

It seems I recall my lfs spent about 50k to expand his selling displays. I believe it had 20 or30 20 gallons and a handful of 40s.
To me that seems right being that I have at least 10k setting up my 175gallon.
I dont know for sure and usually don't like commenting with out first hand knowledge but it seems it would be hard to set up a shops tanks for 100k.
Now if you could get your hands on the gear out of one of the lfs's that recently closed. That could be a money saver but a more labor intensive route.

I agree, buying an existing LFS would make 100k possible. If you can’t, start small in a space that is not open to the public and sell online. It’s easier to get an SBA loan on an existing business.

 

[BlennyTime]

The best LFS near me has a coral farm they own also, and most of their stock comes from there. They always have cool stuff and everything they sell is pure profit. That’s how I would do it, if I was opening one.

 

[RedReefer]

I wouldnt do it... when times are tuff 1st thing to go is unnecessary spending (like hobbies). $100k MIGHT cover rent, utility, and insurance in CA (assume NY is similar) for maybe 6 months. Then you have initial equipment and setup costs, inspections, certs, monthly consumables (salt/food/filters), livestock losses ( I would budget for 15+% losses from suppliers alone), employee costs, vehicle costs and repairs plus additional insurances if doing service calls, etc.... 100k doesn't go as far as people think.

100% agree!

 

[Josh@BVA]

i

So I am looking to start an LFS in NY. I intend to work with saltwater fish and corals, freshwater fish and plants, specialty imported freshwater fish from certain locations in Asian, Russia, and North America plus if a contact works out maybe the Congo, and I would like to also sell reptiles and amphibians plus dry goods and likely aquarium services. Assuming I wanted to get a storefront now what should I expect the cost to set everything up to be I was thinking $100,000 minimum am I misguided I believe I have good sources on livestock. I just need info on what a location and initial tanks and water and gear cost?

I think in MA there are regulations for a store that sells both fish and reptiles/amphibians. for example you need to have a separate dedicated room for the reptiles for cleaning aside from the normal work station (something along those lines anyways) this is something you may want to look into more before opening and may have you consider certain locations over others like a location with more then 1 bathroom, maybe convert one of those bathrooms to be your reptile work space for cleaning equipment.

Not sure if any of this applies to NY but these kinds of considerations can quickly add up in expenses so just have those kinds of things planned out and see what that cost would be.

 

[Josh@BVA]

i would love to see when u are up and runnning.