Opening a retail store in 2014, Advice appreciated

[mmovies01]

I'm looking to start a buy/sell video game and movie store in a rural village setting. My only problem is my lack of business experience! What do I need (besides inventory) to get this started? Capital, I have just over $30,000 ready, will this be enough to get started? As for inventory I have over 20,000 products available from NES cartridges to Blu-ray Discs. Additionally I'm going to continue scouring classified ads and ebay listings for more inventory. I've even begun scouting for a storefront, which I have my eyes on a 16'x16' space right in the center of town - approx $350/mo plus utilities.

As for competition, this is a small town where broadband internet hasn't been routed to yet (only option is satellite internet which only few residents have) and the nearest store to sell movies/games is about 40 miles away. Additionally this is a high tourist area in the summer time so business is likely to pick up then.

I should probably point out that I will not hire employees, I will be the sole proprietor of this store.

The most important things I have no idea how to go about acquiring are business permits, Tax ID #s. Is there anything else I need to know before signing a lease?

[tallen]

Most state governments probably have a "how to start a business in [state name]" section of their website. At least one that I know of even has a menu-driven decision engine where select your type of business and answer a few questions about it, and the website tells you what licenses/permits you will need and where to go (e.g. weblinks) to get more information about them....

[Freelancier]

Something to think about: tourists don't wander into video games stores to purchase something in the summer. It's not like they're carrying their Xbox with them to a remote village. And they're more likely to want to rent a movie than to buy one in that setting as well. I think you should go to the places where this foot traffic is staying and talk to the people who work there about whether their customers are likely to buy these kinds of things from you and consider ways to adjust your business model to those customers.

There's a remote village near here that looks like a giant Bavarian village. The town is really busy in the summer, pretty dead in the winter. There's a store there that sells Christmas ornaments and they do a pretty good business off of that, but mostly because there are enough people who collect Christmas ornaments or want to give them as gifts or whatever. So that odd business in that odd location works out for them. I just don't see tourists wanting to buy second or first-hand videos and games when they're on vacation. At least not in the quantities to sustain you during the winter when there's not enough foot traffic to keep you fed.

[mmovies01]

Thank you both for your input. Greatly appreciated.

[mmovies01]

I spoke with my financial adviser yesterday, who like "Freelancier", thinks opening a video store isn't a good idea in today's economy. However when I mentioned trying this part time to start, he mentioned I could start really small and operate out of my home while only needing a sales tax ID and a small business permit which can both be applied for at the town clerk's office(or online). Of course I plan on discussing everything at the next town board meeting. I have to call my insurance company to see if my home insurance will cover a home business.

We spent half the day discussing this idea, and came to the conclusion that I have an empty stall of my detached garage available that I could renovate for use. My cousin is a certified electrician and is willing to rewire the garage for me for a discount, and I have arranged a HVAC crew to come in to give me an estimate on installing a furnace and ducts. I'm a DIYer so with the assistance from family I can remove the overhead door and frame out and drywall the walls myself. I realize this project overall will eat up the bulk of my budget but I was looking for a reason to renovate this part of the garage anyway, so if the business fails I can always turn it into a man cave or something :P

As for foot traffic, I live just outside of town but still on a main road where hundreds of cars pass by daily so I'm still optimistic that with the right amount of advertising and inventory I can pull this off. I've seen these type of businesses fail in major cities before, but I think the reason for that is because of the number of alternatives around (GameStop, Walmart, Redbox, broadband internet=Netflix). I would like to clarify that I have no intentions on quitting my day job for this venture yet.

[Freelancier]

I spoke with my financial adviser yesterday, who like "Freelancier", thinks opening a video store isn't a good idea in today's economy

Actually, I would NEVER use "today's economy" as an excuse for anything. I've run businesses in good times and bad times. Bad times just gets rid of the competition. Good times lift all boats. It's all in how you plan for things.

But I like the alternative idea, because you can take the renovations as a deduction while you run the business out of it. Just make sure you do what you need to do to make sure you stay within local building codes and requirements and that you don't run afoul of zoning requirements.

[Harold Mansfield]

Something to think about: tourists don't wander into video games stores to purchase something in the summer. It's not like they're carrying their Xbox with them to a remote village......

I just don't see tourists wanting to buy second or first-hand videos and games when they're on vacation. At least not in the quantities to sustain you during the winter when there's not enough foot traffic to keep you fed.

Definitely not in the winter.


However, there may be a small opportunity here. But every small. I live in a heavy tourist city. Even though it's not exactly family oriented, families do come. And I see kids walking around with handheld games all of the time. Also, a lot of families have DVD and game systems in their SUV's and mini vans. I mean, there's just no way you can travel with kids these days and not have something.

But like I said, I see it as an occasional opportunity, not a big one.

As far as the store idea, I'm not a good person to advise on that. I live in an area with high speed internet, games are downloadable, and Amazon delivers in 2 days. So it's hard for me to see it.

You know your area better than I do and if you think it's viable, then go for it.