Opening a Local Fish Store Questions/Comments/Concerns

[420reefing]

D


It sounds like you may have enough that dropping $250-500k into a LFS isn't a giant proposition. Debt free. Still plenty of money left, etc.

Just as long as you know it's more likely that it will be a working hobby than a good investment. You are better off investing that money in the market than opening up a LFS.

Yeah I’m a working partner where I am now so work doesn’t scare me.

 

[jmcdona6]

Yeah I’m a working partner where I am now so work doesn’t scare me.

I would assume not. Anyone who has started a business before and were remotely successful is no slouch.

What I mean is that you will likely be working a lot, and never see a reasonable return for your efforts. It will need to be something you see as fulfilling and if you turn a profit that's a bonus.

That's what I think you are reading through and not absorbing...or at least I feel like (who am I? some random guy who doesn't know you). You are fleeing the marijuana industry because its a mess and you aren't making good margins (or so I gather). Only to pursue another business (LFS) that is also a mess and very rarely returns good margins. Every LFS owner I have known has been barely scraping by or been independently wealthy outside of the store. In either case it was always a labor of love. There are hundreds of these instances for every one store that takes off and the owner makes off good.

If you are looking for a better investment you are making the wrong call. You will likely regret it. If you love the hobby and think you could be happy making crap on your money while working your butt off...likely putting more into it than you ever get out...go for it!

 

[fish_collector]

It is certainly worth a try if you've got the extra cabbage to spend on a new store build. I have so many ideas for a potential store but Im a little (well, a lot) hesitant to part with the money necessary to pull it off. Originally I felt 100k would do it but after many long and hard discussions with others in the hobby I feel that's not enough. I'm on the downhill side of life and just can't part with that much cash all at once. For me, a big factor is losing my employer sponsored health coverage, I'm still a ways away from qualifying for Medicare so that extra $1000 a month it would cost me to purchase it just adds to the stress of a new business not being profitable in the beginning, if ever.

Another thing that is important to me, is going to the wholesalers in LA and hand picking fish, then just driving them back to Phoenix to save on the box charges and shipping. I'd do this every other week, it's only a 6 hour drive and no big deal, heck I'd even buy a full sized cargo van with a roof AC and have it wrapped with the company logo and graphics lol. But now that we're in post covid times the wholesalers have discontinued the option to hand pick your fish in person.

Anyways, I've enjoyed this thread and I hope you have too. Sorry for the initial negativity and bad rap a new LFS venture gets but it isn't for everyone. If you have the wherewithal to do it and stick with it you may be successful, the only way to know is to do it and see. Feel free to reach out to me for further idea discussion.

 

[Icedphoenix]

At the end of the day it is a hobby and as the economy moves up and down you will always be the first to know. You also have saturation. As a new hobbiest grows they will be buying a lot but at a certain point their tank becomes full. Now they are a dry goods/food customer which is still money but they don't buy the high margin stuff anymore. I felt really bad as I love my LFS and she has become an amazing person that even came to my wedding but it feels bad when you just don't have the room to put more in when you want to support them. You have to keep a steady flow of new customers and keep your old ones. Food and dry goods don't keep a store open no matter how loyal the customer base is.

 

[sturgisjasonc]

I just opened a small LFS in Southwest Michigan and I hope you do too, we have nothing around here.

Where are you at?

 

[Reef-Mart]

Where are you at?

Edwardsburg!

 

[420reefing]

I would assume not. Anyone who has started a business before and were remotely successful is no slouch.

What I mean is that you will likely be working a lot, and never see a reasonable return for your efforts. It will need to be something you see as fulfilling and if you turn a profit that's a bonus.

That's what I think you are reading through and not absorbing...or at least I feel like (who am I? some random guy who doesn't know you). You are fleeing the marijuana industry because its a mess and you aren't making good margins (or so I gather). Only to pursue another business (LFS) that is also a mess and very rarely returns good margins. Every LFS owner I have known has been barely scraping by or been independently wealthy outside of the store. In either case it was always a labor of love. There are hundreds of these instances for every one store that takes off and the owner makes off good.

If you are looking for a better investment you are making the wrong call. You will likely regret it. If you love the hobby and think you could be happy making crap on your money while working your butt off...likely putting more into it than you ever get out...go for it!

Definitely a glutton for punishment. Really I just want something to do for the next 20 years and getting people involved in this hobby seemed like a good place to start. I’m definitely not looking for this endeavor to make me rich, I’m looking for peace and happiness now.

 

[jmcdona6]

Definitely a glutton for punishment. Really I just want something to do for the next 20 years and getting people involved in this hobby seemed like a good place to start. I’m definitely not looking for this endeavor to make me rich, I’m looking for peace and happiness now.

Sounds like a great mindset! Wish I was in a place to do the same. Off to the mine for me...good luck!

 

[EliMelly]

Definitely a glutton for punishment. Really I just want something to do for the next 20 years and getting people involved in this hobby seemed like a good place to start. I’m definitely not looking for this endeavor to make me rich, I’m looking for peace and happiness now.

Ok so more for a hobby?

 

[GK3]

Hello everyone, I am looking for A LOT of feedback here. I would like feedback from hobbyists, diehards, store owners, and guys fragging in their basement.

I am considering opening up a brick and mortar store specializing in marine aquatic life. We would be located in Southwest Michigan. We would also carry freshwater and some other pet supplies dog/cat food etc.

My background
I have been in retail or sales my entire working life. I started selling furniture at 16 years old my first retail management job was in my late teens. Managing a small local owned furniture store. From there did some various commission sales jobs. In my mid twenties I started working at Rent-A-Center and with in 6 months was promoted to manager of a store set to close with in the year. I built a team that turned the store to where it remained open for my tenure with the company. I trained 4 employees that became managers of other stores with in the company two of which are still running stores for them now. While managing that store it was rewarded with a multitude of store of the month/year awards as well as awards for profitability with in the company. After leaving RAC I entered the Michigan Cannabis industry and opened a total of 7 retail stores and a processing facility. Cannabis in Michigan has been EXTREMELY unstable, we have sold 4 of the retail stores and currently are have the 3 remaining retail stores up for investment opportunities or out right sale. Given my extensive retail background I am confident that I will be able to run a successful retail store.

Why retail focused in aquatics?
In my area we have a major lack of aquatic resources. I have been in the Marine hobby now for 8 years and keeping fresh water tanks for 20+ years. I have to drive a minimum of 65 miles to get to a store that is not a big box retailer. So I believe there is a demand but a lack of stores. The last store in that was in our area was destroyed by a tornado this past spring and the owners do not plan on reopening. The selection at the big box stores especially for marine aquariums is very limited as well.

Where do you guys come in?
Although I am confident in my ability to open and run a successful store I would be ignorant to think I know it all or could think of all the in and outs of every scenario. So from y'all I ask the following:

Hobbyist and Diehards - What do you want to see at a LFS? What products are must haves? What products do you not mind waiting for if you have to order online? What products are emergency and you want to be able to grab at the drop of a hat? What have you seen that made you say I will definitely be back? What have you seen that made you say nope not shopping here? What do you expect from the staff as far as knowledge goes? Would you pay extra for a fish to have the LFS QT it? And anything else you guys think would be worth sharing.

Store Owners and home growers - What did you not plan for that happened in the first 6 months, first year? How many sqft. would you recommend as a minimum? What would you never want to run out of? What do you always have even though it might sell slowly? What critters die to easy? What critters sell themselves on site? What would you sell outside of aquatic products? Any vendor recommendations? Where can I save money? What size RODI system and what size reservoir for RO Water/ Saltwater? And anything else you guys think would be worth sharing.

I hope to take all of this and build a store you would all be proud of.

I didn’t read you whole post, just the title. I’m not a retail guy but I have a lot of experience in business.

My 2 cents:

Overall the hobby seems down at the moment, maybe not the best time?

The only way I see stores make it is to grow their own coral and get online with coral sales if and when you can.

rarely does anyone go into business to be just like the other folks already in the business. You need a unique value proposition, what do you bring or plan to do that drives people to your business?