So I am considering starting a QUALITY reef store...

[ThatTennesseeBeardedGuy]

So I have been in the hobby a few years and I am absolutely in love with it, however I really really can't stand my current accounting job. I am considering starting a reef related business. So I would like some ideas that you all would have? Also what needs in the hobby do you reefers think needs to be filled?

I missed other opportunities to do what I love so I want this to go right and no longer just be in it for the money, I want a fulfilling job that makes me want to wake up every morning. So if I can turn my hobby into that I would love some advice on how to start that journey.

This may be a few years down the road, but no better time than the present to start planning, am I right?!?!

 

[sde1500]

FWIW, this seems to pop up weekly from someone, searching the forums, you'll find tons of threads on it. Same thing every time, make it clean, bright, well stocked, offer QT fish (countered always by costs will be too high), offer a hang out, be ready to make your money in services, dry good stocking doesn't pay, etc etc etc.

 

[Humblefish]

Apologies in advance for being a Debbie Downer but ......

Once you make the transition from hobbyist to commercial, many times your love for the hobby wanes. What was a fun hobby becomes a daily grind. It is also very difficult to make a living due to online competition. And the market has already become oversaturated with people selling fish/corals online.

The only way I know most make it is by doing tank maintenance (if you live near a big city). As mentioned above, be prepared to make your money in services. Selling livestock, dry goods, etc. doesn't usually pay off.

 

[William Robinson]

My local fish store owner loves it. He's been in business a long time and has close personal relationships with all his customers. He's been to my house a few times actually.
He travels..., he goes and visits wholesalers and suppliers east coast and west coast. Every shipment brought in is put in QT tanks for a few weeks and treated. He insure the livestock is feeding and ready to be sold. It costs a little more for me to shop there but I always do knowing I am getting a healthy animal.

 

[ReefGeezer]

If a "Quality Reef Store" might be possible if it is just be an extension of your hobby and doesn't have to put food on the table anytime soon.

 

[Greybeard]

Here's how to bank a million dollars running a local reef shop:



- Start with two million. Quit when you've lost half of it.


Seriously. The vast majority fail. Those that make it typically do so by selling online or maintaining large private aquariums in homes and businesses.

 

[TheHarold]

Everyone thinks they can make a quality store. Then they realize that they cannot afford to quarantine before shipping and remain price competitive. That’s why local fish stores often are often such poor quality. And imagine the multi million dollar entities you are competing with- it’s extremely difficult, if not impossible, to enter this market successfully.

 

[i_declare_bankruptcy]

I started software development right out of school. It was a major hobby for me growing up and now it's my career. I don't write much software outside of work now unless I need it, it's for someone else, or it's reaaaaaaaaaly interesting. Honestly if you truly love reefing don't turn it into your job. Maybe you could get into product design, manufacturing, or something along those lines where you can contribute to the hobby without potentially taking away from the 'fun' part of reefing.

Of course you could end up just loving it all. The folks at Aquatic Art in Denver are great examples of that. I guess it's a gamble?

 

[William Robinson]

As I mentioned above in different word "Where there is a will, there is a way". But you need to survey the local economy. What is the distance between you and areas with higher disposable incomes?
What competition do you have?
Access to near by airports so you may pick up shipments directly?
Potential service industry? (My local place mentioned above makes a great deal of revenue through this means with setup teams and servicing teams with several nice looking service vans)
Floor layouts are important... Impulse buying options are important... What can YOU make inhouse to add to revenue? (IE 3D part printing for podhouses etc. It all adds up.
Cant tell you how many times ive been turned off by just the appearance inside a store so your investment must include details of paint, flooring and proper layout with a proper warehouse area to bring in dry rock and turn to cured rock increasing even more revenue. Developing full live rock is not very cost effective.
Your own back frag grow out areas are a great way to increase revenue also. Keeping mother colonies of larger fast growing corals sells quick as $10-$40 frags

Im saying this all to say it is possible but your local economy is going to be the main driver in whether you succeed or fail. Second will be your presentation. Presentation is interrupted as quality and often a is good interpretation.

I can tell you now this sort of setup up and going is going to cost you about $1.5 - $2 million

 

[KrisReef]

I've been looking for a decent chap who is willing to fly to Indo China and collect corals there for world wide export. This opportunity would be much more exciting than most accounting jobs at least until you get caught.

This hobby is a great place to dream but a difficult place to thrive on dreams only. Plan well is the only real advice I have, and planning is as boring as accounting, imo.

 

[Jon Fishman]

Leaving a lucrative, stable and respectable profession to blow money exponentially on a hobby sounds like a bad idea to me.....

 

[Sailfin11]

I think that you could definitely have a reefing business without opening an actual LFS. If I were to do this, I would probably dedicate my basement to having a few nice frag tanks and a smaller fish system. There definitely are exporters that will sell you fish even if you don't have a storefront. Without having to worry about the major costs of running a separate building, I think you could keep your costs lower and even develop better relationships with your customers as they can see your personal reef tanks.

 

[Marquiseo]

If it is what you want to do, then do it. Yes majority have failed and others are succeeding like WWC and Tidal Gardens to name two that recently expanded shop for growth.

Learn from the mistakes of those that have failed. Imitate the success of those that are succeeding and become better.

As for the naysayers, just use them as part of your motivation to succeed in your business.

Conduct research and properly plan. Understand the supply and demand. If there isnt a demand in your market, create it.

 

[NowGlazeIT]

Best advice I could give you is to work at a aquarium store. learn the ins n outs before putting money and credit on the line. Your time is worth money too so spend it wisely. Good luck and enjoy your reef.

 

[sfin52]

I think that you could definitely have a reefing business without opening an actual LFS. If I were to do this, I would probably dedicate my basement to having a few nice frag tanks and a smaller fish system. There definitely are exporters that will sell you fish even if you don't have a storefront. Without having to worry about the major costs of running a separate building, I think you could keep your costs lower and even develop better relationships with your customers as they can see your personal reef tanks.

That's a great idea.

 

[Peace River]

You could start the process as a side hustle and grow it until you can’t afford to go to work anymore (or realize that is not the direction you really want to go).

 

[Humblefish]

You could start the process as a side hustle and grow it until you can’t afford to go to work anymore (or realize that is not the direction you really want to go).

+1 There is a demand for QT fish, but it is very labor intensive and no one has really figured out yet how to make it profitable considering the high risk/overhead.

However, I know several people doing it out of their garage/basement to minimize the risk. Getting into a long-term lease on a retail space, CAM fees, employees, etc. is not something you want to do until you get your business model perfected.

And once the next recession hits and people leave the hobby in droves, you don't want to be stuck in a lease. You can always just downsize your basement business.

 

[Amado]

Start slow setup a garage/basement frag grow out room. Buy corals grow them and sell them locally get your name out with very little over head. Once you make some money buy more expensive fast growing frags and flip those. Start selling online from your house. You can keep being an accountant and have the corals as a side hustle with very little over head.

Retail space in very expensive and will kill your dream of owning a reef store.


FYI most landlords are not going to be happy with a business that has 10,000 gallons of saltwater. Most retail location would have to be modified to fit your needs and that’s going to cost you $$$
Plus a long term lease.

 

[ThatTennesseeBeardedGuy]

Leaving a lucrative, stable and respectable profession to blow money exponentially on a hobby sounds like a bad idea to me.....

Definitely respectable, but I am not sure if its for me. I dont know if I can just keep doing constant office work where I dont work with my hands a bit.

 

[ThatTennesseeBeardedGuy]

Oh and i am not planning to quit anytime soon but if I could grow something then I may make it my full tine job later, well after I pay my house off atleast.