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

[ThatTennesseeBeardedGuy]

Skip the store front all together, imagine the new Door Dash

Genius!!!

 

[ThatTennesseeBeardedGuy]

I started a gun shop just before sandy hook happened

took a hobby and turned it in to a very lucrative business.

in 3 years we were clearing half a mil a year

sold the whole business 2 years ago because frankly I was tired of customers

Now I don’t even go shooting or talk about guns anymore because it was that bad.

anytime you turn a hobby into a business it sucks the love for it right out of you

Sounds like you atleast were good at it, how did you start it, sounds like i could atleast learn something from you!

 

[Devisissy]

I would just start online and go from there.

 

[Salty Squid USN]

Do it man, if it's what you want to do and your heart is telling you yes, do it. It sounds like you've already begun but build a plan with objectives and dates. Also have an exit plan if you don't hit certain criteria. Keep that fallback account to bridge the exit. If your significant other is onboard then go and try to live your dream. But again create a bulletproof plan. Best of luck.

ETA: find balance with work and home.

 

[vetteguy53081]

T^hink hard on this. I owned a full line store for almost 12 years and its a battle, struggle, and seasonal.
Summer will be slow as many vacation, do getaways and no school so they tend to shop for necessities. There then is competition and also online sale competition. Then there is CAM (commom area maintenance costs) and rent and utilities. I had to sell $3880 each month BEFORE there was any profit, not including workmans Comp, overtime for employees and incidentals such as livestock loss.
I worked a regular job besides having the store and found myself occasionally borrowing from my paycheck due to a slow week.

 

[lefkonj]

I would highly suggest setting up some extra stuff at home, selling QT'ed fish and corals out of your house. The investment will be way less and put a significant less risk on you since you won't have to commit to store front. If this works for you take the profits and build a physical store.

 

[Nburg's Reef]

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.

There was a guy in Columbus that started working at a local shop, started selling out of his house on Craigslist then finally opened a store front and seems to be doing well, but he looks tired.

Another guy in Dayton has grow tanks in his house and let's people come by via appointment only. He has quality stuff so they are willing to name appointments. In think he weekends from home don't something else which helps his side business.

 

[sde1500]

Overall I can’t see QT fish doing well. I know some stores offer it. But the overwhelming consensus on here seems to be “still qt on your own”. So what’s the point of adding that vast extra expense and time? Plus for every one hobbyist on the board here saying they are willing to pay more, I’d bet a couple dozen aren’t on forums and have zero interest in paying.

 

[boacvh]

may I ask what significant other does? I think the risk is very different depending on that. If its something that could mostly cover your bills then you have more cushion to take more risks as a couple. (And you can potentially use expenses or losses to pay less taxes! )

 

[VashonBigs]

Lots of negative people on this thread friend. Do what you love and you will succeed. Short story... I started a company in the transportation industry. First sales meeting I ever went into the owner of the trucking company said, "Boy...it ain't never going to work". Well...it did work. Had I listened to that guy, I wouldn't have 20X'd my investors money and sold a business for millions of dollars. Reef store is a bit different...you won't make millions. But you can live a fulfilling life.
1) Make sure you have the startup funds to weather the first year.
2) Make sure you have an amazing store...see other comments.
3) Make sure you have a multi-channel online approach leveraging websites that are already trafficked. Getting traffic to your own site and building a quality site will suck the life out of you unless you have enough $ to hire experts.
4) Set sales goals and fight for them. Key is to turn your inventory fast. Undertand inventory turns, understand total capital tied up in inventory, move the inventory at a discount when it sits. Buy something that moves faster.
5) Consider other areas that drive income. Maybe it is reef and freshwater store. Maybe you maintain tanks for people. Maybe you hold learning sessions in your store to drive people in and create new reefers. Start a loyalty program... list goes on.

You can always get another accounting job if it doesn't work. The question is what do you have to lose vs. what you have to gain. If you make that list and the gain side greatly outweighs the lose side...go for it.

 

[MrPike]

I’d suggest maintenance accounts first. You will get cash flow, and customers to sell to. Established reefs throw off a lot of coral during pruning time that can be sold in your future store. Also, having other aquariums will test your skills. I haven’t found a recipe yet that results in a thriving reef setup every time, there are always challenges.

 

[SeaDweller]

I love my tank and the hobby too, but I wouldn't. SW tanks in general are a niche hobby, and now you want to cater to reefers, which is even more niche within the niche? I don't think it's gonna be easy. Maybe as a side thing, OR do as most of them do... start in your garage.

One guy was successful for a few years then eventually became Aqua SD. Another guy I knew was getting there until he had a hater one day come by and dump chemicals into his stock tanks, wiped everything out. Dealing with the people coming to your home, etc (if you started this way) doesn't seem worth it vs selling online.

 

[krash7172]

Starting a business is always risky but you already know some back of the house stuff as an accountant. Many people do it out of passion but have no idea how to manage a small business. The idea of starting small with minimal risk before making major investments (and quitting your day job) sounds exciting. I wish you luck if you choose to do it!

I own a small business myself and I have some extra warehouse space. I have thought about how cool it would be to partner or lease the space with a coral grower...

 

[ThatTennesseeBeardedGuy]

may I ask what significant other does? I think the risk is very different depending on that. If its something that could mostly cover your bills then you have more cushion to take more risks as a couple. (And you can potentially use expenses or losses to pay less taxes! )

My beautiful wife is finishing up her masters in psychology. So she will be a licensed therapist in a year or so.

 

[boacvh]

My beautiful wife is finishing up her masters in psychology. So she will be a licensed therapist in a year or so.

My wife is a psychologist too!!

 

[Jeepguy242]

Sounds like you atleast were good at it, how did you start it, sounds like i could atleast learn something from you!

Well. It started with a used and beat to crap automatic ammo machine and we rebuilt it over the course of 2 months.

started selling ammo at gun shows and the local ranges and local forum.

taking orders from the website only.

then sandy hook happened and the threat of a gun ban.

at that point we needed to buy 5 more machines and move the business from my garage to an actual shop.

3 months later we had more orders than we had materials and we had to expand or fold

we didn’t pay ourselves for over a year and worked 80 hours a week

I’m still dealing with taxes from the shop 2 years later.

 

[Wildreefs]

Here’s an idea that I havnt heard anyone mention even outside this thread:

As part of an lfs, be a used goods dealer. Everyone knows there is more money to be made in used cars VS new cars. Especially with MAP pricing, everyone is getting new stuff for the same and margins suck due to competition.

with used stuff, no one knows what you’re getting it for. I have a ton of items sitting around that quite frankly ill never use, and too lazy to post upon here or Craigslist. Just thinknif I had a shop to go and sell it off to (or even credit) kinda like game stop and used video games.
For example, I have a perfectly fine reef octopus skimmer sitting on my bench, that will never be used as long as I own it. I’m sure I can get 80-100 bucks on Craigslist, but is it worth the flaking, back and forth convos for it? Not for me.

but if an lfs took it in say for 75 credit or cash, I’m sure they can sell it for double, make more margin on it than new, offer a lower price point for someone looking to go cheap, not shell out as much for inventory, and for me, no adds online, no bartering thru email, no meeting up hoping not to get robbed or stood up, just take it there and that’s it. 10 minute drive done, instead of hours and days responding to a dozen different tire kickers.

when someone comes in and says they want a set up for less than a grand, they can piece it together used, instead of walking out with nothing, and they still have to buy livestock at some point .

 

[Jeepguy242]

Here’s an idea that I havnt heard anyone mention even outside this thread:

As part of an lfs, be a used goods dealer. Everyone knows there is more money to be made in used cars VS new cars. Especially with MAP pricing, everyone is getting new stuff for the same and margins suck due to competition.

with used stuff, no one knows what you’re getting it for. I have a ton of items sitting around that quite frankly ill never use, and too lazy to post upon here or Craigslist. Just thinknif I had a shop to go and sell it off to (or even credit) kinda like game stop and used video games.
For example, I have a perfectly fine reef octopus skimmer sitting on my bench, that will never be used as long as I own it. I’m sure I can get 80-100 bucks on Craigslist, but is it worth the flaking, back and forth convos for it? Not for me.

but if an lfs took it in say for 75 credit or cash, I’m sure they can sell it for double, make more margin on it than new, offer a lower price point for someone looking to go cheap, not shell out as much for inventory, and for me, no adds online, no bartering thru email, no meeting up hoping not to get robbed or stood up, just take it there and that’s it. 10 minute drive done, instead of hours and days responding to a dozen different tire kickers.

when someone comes in and says they want a set up for less than a grand, they can piece it together used, instead of walking out with nothing, and they still have to buy livestock at some point .

I like that idea but to make any money on used you have to pay dirt cheap prices for it. People always think that their stuff is worth more than it actually is

Example.
At my gun shop I told everyone that I pay 50% of what my cost on a new is. Before I made them an offer I would break out the computer and show them my cost. Some people would act like I call their mom a hoe and shot their dog all at the same time

Some people brought their stuff to me exclusively because there was no haggling or bull.

people argued with my policy constantly but here is the bottom line. You don’t know how the used has been abused and how long it will work. Or even how long it will sit on the shelf. Your taking that risk and you got to clean it.

 

[Wildreefs]

Yea I could imagine, those would be better off selling themselves. But let’s for example I had 2 used mp40s. New there 370. You see people on here selling used for 250, add runs a bit, questions are can you ship it in that orixe, would you do 200 for each, can you meet me an hour away etc. meanwhile the LFs can say $150 each right now, no shipping , no hassle, and the LFS can clean them up and turn them for 250. Person gets problem free money and there is stil 100 to be made, which I’ll venture is more than what you make selling a new one anyway.

Kinda like a car, people can probably sell themselves for more, but they rather trade it in or sell cheaper to dealer to get rid of it

 

[Lowell Lemon]

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.

You have one of the skills necessary to succeed that most hobbiest turned business owner don't have. The unemotional, hard core, math driven, process of a ROI. Ignore the ROI at your peril. Use those business analytics to shape your decisions.

I developed one of the first companies in the early 80's to distribute reef aquariums and eqiupment. It was lots of fun but since I lacked the funding and fundamentals I struggled for years to survive.

Here is what I would do different. I ran part of my business with maintenence of aquariums for homes and businesses. You should build this end of your business first and allow people to buy from your stock at preselected times.

Consider making your own filters, aquariums, and stands to sell to your maintenance customers and others. No matter what people say Acrylic is the best choice here due to the lower liability insurance rates versus glass. I can help you here.

Consider traveling overseas to establish direct relationships with collectors and cut out all the middle men. Pay the collector more than the buyer from the local consolidation buyer. Make sure they understand proper collection methods without chemicals. You can now wholesale some of your stock to some select buyers if you want or make the extra margin you need to pay yourself and grow your business.

Do not restrict yourself to just saltwater but include freshwater natural planted aquariums as this is also a great area of the aquarium hobby.

Limit the types of fish to those that remain smaller and are more suited to aquarium life. Forget the tank busting freshwater and saltwater fish like sharks and rays, red tail catfish, eels, Pacu, ect. Unless the customer wants a very large aquarium and has the means and desire to care for these fish for life they should not own them.

Find staff that share your vision for the future and develop and promote them. This means pay and educational opportunities to advance their skills.

Run your business as a business not a hobby and you will do fine. Remember do the math first and then keep you overhead as low as possible.