hi again
I would like to open up a train shop out in buckeye arizona, and would like to know how to go about doing it ,all the help i can get.
thanks
You need to do a LOT of homework. Prepare a business plan, check the area to see if there are any other shops, etc. There is a ton of stuff that should be done and if you are asking such basic questions already, you may not be ready. From what I’ve read on such new businesses starting up is the owners assume way too much - they assume they are going to be making enough profits right from the start to make a living. Usually new shops should be well enough financed to be able to operate for quite some time without expecting a payday. It is a risky business to be in.
Good luck!
Bob Boudreau
If you don’t have any, get some experience working in retail. You’ll most likely be the only employee for a while. Work in a small retail operation preferably a hobby shop. Look into business courses at your local community college. Most small businesses fail because the owner did not know how to run a business.
Good luck
Paul
My suggestion would be to visit Trains and Treasures, 9674 West Monaco in Arizona City, and talk to Tim Schreiner and his father about how they got started, the pitfalls, etc. They are in one of the most remote locations of any hobby shop I have ever seen, and seem to be doing okay. I drive from Sierra Vista up to their shop quite often because they have items that I can’t find in Tucson.
For a map and contact information, visit their Web site at http://www.trainsandtreasures.net
P.S. Their Web site is currently either down or they have taken it offline. Their phone number is 520-466-5870. To get there, take the Sunland Gin exit off of I-10 and go West. They are 5 or 6 miles off of I-10 in an area that used to be cotton fields until just a couple of years ago.
First, find out if anyone in and around Buckeye (population 35)??? is interested in trains? and just how far away from civilization is this Village? Town? City??? I would do a little more study on developing a business.
50k to 75k for inventory alone would be a modest investment to open the doors, 150k would be better. Another 20k to improve the store with fixtures etc. You need to be able to pay the bills rent, etc. for 12-18 months without a paycheck.
So somewhere around $125k to $200k in ready cash should do it.
The profit is in the small items, under $25. The profit on a $200 item is about 10-15 bucks if you want to compete with the big name mail order houses.
The single most common reason for failure of a new business in under capitalization.
Good luck
Jon - Las Vegas
Can you get a hobby shop off the ground with only trains? When I started out in business I know I had an idea that a fairly specialised stock line was the way to go, but it soon became apparent that I needed to open up the appeal within the main theme of the store. (my business is woodwork supply, and I thought woodturning would sustain the business)I suggest that you may have to stock planes,boats and rockets to help cover the rent and other overheads. Is there a store in the buckeye area catering to these hobby areas? Will they help to sustain your first choice, trains, whilst you get started and known? It can take 2 years to become well enough known that the front door is always opening and the till ringing continuously.You will then know what your stock mix should be like.
Second thoughts.
Almost all homes in the valley do not have a basement which is a big plus in other climates.
An Arizona modeler either has to have a big spare bedroom or a third stall garage so I suspect
that in most cases modelers will not have this option.
Even in an open garage the outside summer temp bumps 112 degrees. Just not functional.
So, I will now delete my prior posts.