Opening a new fish store - gauging interest/advice needed!(Tacoma, WA)

[Kerbash]

Hi guys,

I've been thinking about this for a while, but I've been playing around with the idea of quitting my job and opening up a fish store around Gig Harbor or the Tacoma area in Washington. I'm honestly very unsure about this as it is a very big step, but a fish store has always been my dream of sort. So I guess I would like some advice, on how to go on about this? I know most people say try selling online first, which I have so far been selling my frags and stuff, but due to limited room in my small house I dont have enough room for full on online stocks.

My house is paid for and Im partially renting out my house so personal bills not really an issue if I scrape by, however, what I am concern about is that the store becoming a financial burden, because I have enough to feed myself, but I don't have enough to keep a store a float if it comes to that. But as long as the store can pays for itself I'm happy.

I guess I have a couple of questions and would like some thought.

Question for Current Owners:
1. Right now I got around 10k that I can set aside for the store. Will that be enough?
2. How do fish store owner manages like 1k - 2k just rent alone? Thats like 20 people buying >100 bucks worth of stuff which is a lot maybe???
3. How much are the typical expenses?
4. How important is location?
5. Any general advice? Good wholesaler? Sale advice?
6. If you dont mind, how does typical income work? how much from livestock sales, equipment sales, services?

Question for Residents of South Puget Sound Area:
1. The main reason I think this is a good place because there seems to be no good fish store around here, am I correct? The closest one I can think of is + 30 minutes away.
2. If I do set up a fish store possibly around University Place or Gig Harbor would anyone be interested?

 

[csund]

If it’s in Gig Harbor ppl may consider the bridge tolls.

I’m always up for a local store! I’m in the Proctor neighborhood of Tacoma.

 

[Frank SM]

I've contemplated the same. I did a little research. Based on what I found, it said you would need ~$100K to start a store. Think about all of the display tanks, lights, livestock, dry goods, etc. to put your best foot forward. That is not cheap. You want to start with a good impression or no one will come back. I also read that livestock is marked up about 3x the wholesale price. Of course, this is not all profit as there will be losses along the way (minus overhead, etc.). I would suggest a well vetted business plan to make sure you have a shot at being successful.

 

[Rijodan]

im no where near you so no hlep on that side of things, but all the local places around me cover their rent and such by maintenance customers, then anything else in store is extra money. also being very active in our local clubs discord with posts of their incoming coral etc keeps people informed of what ya got and get them in the store for other impulse buys

but rent isnt the only thing youll be looking at, insurance, utility bills, many coral suppliers have a minimum per order and a minimum monthly to get their goood **** so keep that in mind. taxes are a big thing to keep in mind too

employees and their taxes, factor in loss and just what it take to keep your stock tanks running.

and from experience, running your own business is not a 9-5, you are married to it and will definitely put more hours into it then you ever expect

 

[Ironwill723]

Minimum $100k to start. More like $150k-200k these days.

 

[Blopple]

I need to preface this with "I do not own a fish store, I do not own a business, I do not work in sales, and I barely have an aquarium". So obviously my advice is next to useless, HOWEVER!

1. Probably not. I doubt 10k would be enough to even purchase initial startup equipment (tanks, sumps, salt, sand, plumbing, stands, lights, shelves, register, RENT). This is not including initial livestock requirements which will be significant as well. You will need employees. You cannot likely run an in person retail store successfully by yourself. You're helping a customer and suddenly your system with 5k+ of livestock is alarming. Do we abandon the customer who then leaves a negative review? Does that increase marketing costs, and do you need to allocate funds to that in the first place? Obviously this is all contingent on size, goals, location. Are those figured out? Additionally there will be fees involved with establishing a company. LLC, S corp, sole proprietorship? Are those even all possible/realistic for a fish store, and which is best, do we need a lawyer/consultant?
2. I cannot comment on this. If I had to guess. 20 people buying >100 bucks over a month doesn't sound unreasonable, that's less than 1 a day depending on opening schedule/hours. Are you going to sell small tanks? Goldfish? Betta? I bet a lot more people google a store looking for that than 'reef aquarium ultra rainbow AAA acropora shop'. Is serving both demographics better than catering to one specifically? Is there a petco next door?
3. No idea.
4. Probably less important than many other retail businesses. Personal experience says that most people will find and locate an aquarium store as a destination vs. on-sight. Is that true? What is the ratio of the two, and will it help dictate which group to cater to? Does it matter at all?
5,6. I can't help.

I say all of this not to be a jerk, and not to poopoo on your aspirations, but rather to reinforce your clear understanding that this would be HUGE undertaking. A fish store would be amazing, I personally wish there were more of them. I appreciate that you are considering the saturation of your local area and attempting to gauge interest.

Starting a business is a massive, generally risky, and time consuming prospect that shouldn't be taken lightly. A quick google says that most businesses don't turn a profit until 18-24 months (that's 1.5-2 years salary + startup costs until we break even). And the SBA says that 1 in 4, 25%, 1/4 of new businesses will fail.

I'll finish by saying that this post has come off somewhat mean and condescending. That is absolutely not my intention. I've been in your shoes with various business ideas in the past and the amount of work, research, money, and sheer will to succeed has always been staggering to me. It's possible, clearly people do it all the time, but understanding what you're getting into and the costs (monetary, time, opportunity), and commitment associated with such a venture are significant.

P.S. To you and everyone. Please correct me if I am mistaken. This is literally all just brainstorming. Please see initial statement.

 

[Frank SM]

im no where near you so no hlep on that side of things, but all the local places around me cover their rent and such by maintenance customers, then anything else in store is extra money. also being very active in our local clubs discord with posts of their incoming coral etc keeps people informed of what ya got and get them in the store for other impulse buys

but rent isnt the only thing youll be looking at, insurance, utility bills, many coral suppliers have a minimum per order and a minimum monthly to get their goood **** so keep that in mind. taxes are a big thing to keep in mind too

employees and their taxes, factor in loss and just what it take to keep your stock tanks running.

and from experience, running your own business is not a 9-5, you are married to it and will definitely put more hours into it then you ever expect

Good point. Most "small" places I know have maintenance customers that really keep them afloat. If you can land a few big clients (think hotel or restaurant tanks), that would help.

 

[Kerbash]

I need to preface this with "I do not own a fish store, I do not own a business, I do not work in sales, and I barely have an aquarium". So obviously my advice is next to useless, HOWEVER!

1. Probably not. I doubt 10k would be enough to even purchase initial startup equipment (tanks, sumps, salt, sand, plumbing, stands, lights, shelves, register, RENT). This is not including initial livestock requirements which will be significant as well. You will need employees. You cannot likely run an in person retail store successfully by yourself. You're helping a customer and suddenly your system with 5k+ of livestock is alarming. Do we abandon the customer who then leaves a negative review? Does that increase marketing costs, and do you need to allocate funds to that in the first place? Obviously this is all contingent on size, goals, location. Are those figured out? Additionally there will be fees involved with establishing a company. LLC, S corp, sole proprietorship? Are those even all possible/realistic for a fish store, and which is best, do we need a lawyer/consultant?
2. I cannot comment on this. If I had to guess. 20 people buying >100 bucks over a month doesn't sound unreasonable, that's less than 1 a day depending on opening schedule/hours. Are you going to sell small tanks? Goldfish? Betta? I bet a lot more people google a store looking for that than 'reef aquarium ultra rainbow AAA acropora shop'. Is serving both demographics better than catering to one specifically? Is there a petco next door?
3. No idea.
4. Probably less important than many other retail businesses. Personal experience says that most people will find and locate an aquarium store as a destination vs. on-sight. Is that true? What is the ratio of the two, and will it help dictate which group to cater to? Does it matter at all?
5,6. I can't help.

I say all of this not to be a jerk, and not to poopoo on your aspirations, but rather to reinforce your clear understanding that this would be HUGE undertaking. A fish store would be amazing, I personally wish there were more of them. I appreciate that you are considering the saturation of your local area and attempting to gauge interest.

Starting a business is a massive, generally risky, and time consuming prospect that shouldn't be taken lightly. A quick google says that most businesses don't turn a profit until 18-24 months (that's 1.5-2 years salary + startup costs until we break even). And the SBA says that 1 in 4, 25%, 1/4 of new businesses will fail.

I'll finish by saying that this post has come off somewhat mean and condescending. That is absolutely not my intention. I've been in your shoes with various business ideas in the past and the amount of work, research, money, and sheer will to succeed has always been staggering to me. It's possible, clearly people do it all the time, but understanding what you're getting into and the costs (monetary, time, opportunity), and commitment associated with such a venture are significant.

P.S. To you and everyone. Please correct me if I am mistaken. This is literally all just brainstorming. Please see initial statement.

No no thank you so much for your answer, I'm trying to get as much info as possible to make sure I make a good decision.

Minimum $100k to start. More like $150k-200k these days.

Yikes, really? why do you think high? Is it mostly equipment? I do have a lot of stuff stockpiled over the years, just lights alone I got 3 sets of 300 gallon worth of lighting gathering dust.

 

[Kerbash]

Good point. Most "small" places I know have maintenance customers that really keep them afloat. If you can land a few big clients (think hotel or restaurant tanks), that would help.

Im not sure would you know but how do these smaller store normally get these contract? Just like call around? Or facebook? and does that many people do maintenance?

 

[Kerbash]

I've contemplated the same. I did a little research. Based on what I found, it said you would need ~$100K to start a store. Think about all of the display tanks, lights, livestock, dry goods, etc. to put your best foot forward. That is not cheap. You want to start with a good impression or no one will come back. I also read that livestock is marked up about 3x the wholesale price. Of course, this is not all profit as there will be losses along the way (minus overhead, etc.). I would suggest a well vetted business plan to make sure you have a shot at being successful.

A guess a follow up question how do people normally get that much cash? refinance or is there some sorta government sub loan for small businesses? dang it seems like opening a business is a "success or ruin ur life" type of deal

 

[Rijodan]

atleast with the stores around here it just started as them helping other friends and family run their tanks, then word gets out, then make cards maybe make a post online, before you know it you have enough business and gear to need to store it somewhere. now that i put more thought into this is probably the best way to go about it OP unless you find some angel investor. maintenace side gig into retail

 

[Rijodan]

A guess a follow up question how do people normally get that much cash? refinance or is there some sorta government sub loan for small businesses? dang it seems like opening a business is a "success or ruin ur life" type of deal

you can get a business loan with enough colatteral, like your house, but any of em trhat arent predatory are going ot want to see a fleshed out business plan and other experience. some even require the business to be running for a few years before theyll loan to you. youre not far off from the make or break tho

 

[Kerbash]

you can get a business loan with enough colatteral, like your house, but any of em trhat arent predatory are going ot want to see a fleshed out business plan and other experience. some even require the business to be running for a few years before theyll loan to you. youre not far off from the make or break tho

i see, thanks for the reply

 

[Ironwill723]

Yikes, really? why do you think high? Is it mostly equipment? I do have a lot of stuff stockpiled over the years, just lights alone I got 3 sets of 300 gallon worth of lighting gathering dust.

Former lfs owner. Honestly, now is a horrible time to open a new lfs business. Inflation, interest rates, high rent, high electricity cost, high shipping, shortages, etc. If you really want to make a go of it start small. Sell coral out of your home or online. Do tank maintenance and servicing. Once you have built up a client base and you have real industry experience under your belt then think about the retail storefront.

 

[Kerbash]

Former lfs owner. Honestly, now is a horrible time to open a new business. Inflation, interest rates, high rent, high electricity cost, high shipping, shortages, etc. If you really want to make a go of it start small. Sell coral out of your home or online. Do tank maintenance and servicing. Once you have built up a client base and you have real industry experience under your belt then think about the retail storefront.

sorry a couple of questions,

1. if u dont wanna answer this no worries at all but why did you got rid of ur business?
2. this may be a stupid question but how do people normally market an online coral thing? and where do they source them normally?
3. do you have any wholesaler/supplier u recommend from ur time as a lfs?

 

[Ironwill723]

sorry a couple of questions,

1. if u dont wanna answer this no worries at all but why did you got rid of ur business?
2. this may be a stupid question but how do people normally market an online coral thing? and where do they source them normally?
3. do you have any wholesaler/supplier u recommend from ur time as a lfs?

1. I was renting a storefront in a shopping center. When my 5 year lease term was ending the landlord increased the rent payment over 30% for the next 5 year lease term renewal. My monthly rent payment was going to be too high and I decided not to renew the lease. I went to doing mostly tank design/maintenance and consulting.
2. These days social media most likely. Facebook, Instagram, TikTok, Craigslist, etc
3. For fish Quality Marine, Sea Dwelling, Underwater World. Corals too many to name. ACI Aquaculture is good, Unique corals, Tampico Farms, Eye Catching Coral to name a few.

 

[Frank SM]

Opening your business is the same no matter what it is... separate business finances from personal finances so if it doesn't work, they can't take your house. However, if you don't have cash to put in, you will need some collateral (I don't recommend your house). Most investors I know aren't just going to give you cash. They will want you to have significant skin in the game or you will have no incentive to make it work. Banks will have high interest rates. Where do people get the start up money? Personal savings, family, friends. But you know what they say about doing business with family and friends.

I understand you may have various pieces of equipment laying around, which may be fine for livestock tanks, but usually stores have a major display tank or frag tanks with top of the line lights for the draw. Those tanks with all the bells and whistles are more than your $10K. I'm thinking about a couple of local small stores, they have probably 300 gal fish only (in 10-20 gal tanks), 300-500 gal worth of shallow frag tanks, and 2 display tanks that are probably 250 gal each.

I would say, figure out the square footage that you are looking at. Lay out the various tanks, displays, dry goods, etc. that you want to sell in that footprint. Determine costs for everything you don't have (tanks, pumps, heaters, plumbing, lights, stand, skimmers, reactors, etc). Don't forget to include test kits/monitors as you will offer that service (mostly free). It will be tempting to underestimate to provide a sense of possibility but you should be brutally honest with costs, then multiply by at least 25%.

You will have significant electrical/gas and water bills, as operating costs.

Regarding getting the contracts, part will be advertising but the other part is salesmanship. I would start with your doctor, dentist, local high end restaurant/hotel, etc. and sell them. Or find other commercial tanks and try to get the business from their current contractors.

Good luck!

 

[Treehrtsme]

You'd need another sustainable source of income to simply cover the overhead, which isn't cheap. If you could somehow get a used store display system and set that up at home that might be a star

Start freshwater too if you don't have a ton of money to invest. Fish are cheaper, easier to care for and sell faster. One of my buddies converted one of his last 2 saltwater system to hold only goldfish because it was b more profitable at the time féel free to pm

 

[Nano_Man]

Vetteguy would have good info on this subject.

 

[vetteguy53081]

I wish I could be more motivating but now is perhaps the Worse time to open any business other than Liquor. Even the grocers, walmart, pharmacies are shutting down due to slow business, as well as lack of or cost of labor and the online market which is destroying standing stores.
You mentioned $10k- That wont buy you point of sale equipment not to mentioned shelves, displays, signage, insurance and advertising. Most lessors will require 2-3X the rent up front !
Liability insurance is through the roof especially when your store contains glass (tanks). Then when you are up and running, you are faced with Payroll, sales tax payments to your state, health insurance, business insurance, utilities and common area maintenance which covers landscape, trash pickup and parking.
My lease was $2460/month as I had a large store and I needed $8300 per month in sales to cover expenses and replace items you sell, delivery fees and during the summer when business slowed down, I took money out of my pocket to cover shortage as I had a full time job -DO NOT QUIT YOUR JOB, AT LEAST THE FIRST 3 YEARS - TRUST ME !
Lastly - Hope your employees show up every day they are scheduled. When the weather is nice- They get sick - SO THEY SAY.
YOU WILL WORK TWICE AS HARD TO MAKE WHAT YOU DID WHEN YOU WERE WORKING.


1. Right now I got around 10k that I can set aside for the store. Will that be enough? ANSWERED ABOVE
2. How do fish store owner manages like 1k - 2k just rent alone? Thats like 20 people buying >100 bucks worth of stuff which is a lot maybe??? REMEMBER- YOU HAVE TO REPLACE THE MERCHANDISE YOU SELL. $100 = $50
3. How much are the typical expenses? DESCRIBED ABOVE
4. How important is location? EXTREMELY and HAVING GOOD PARKING. BETTER THE LOCATION, HIGHER THE RENT
5. Any general advice? Good wholesaler? Sale advice? MANY HAVE LIMITED STOCK
6. If you dont mind, how does typical income work? how much from livestock sales, equipment sales, services? aGAIN MENTIONED ABOVE