Business Proposition

[Bob The Mercenary]

For any of you business majors out there, I need some help.

A friend of mine works at a GameStop near my house. The salon next door to it is going out of business and so far doesn't have any takers for the property. The town is one of the richest towns in the state and the location is prime, the middle of a shopping strip off a semi-major highway. This friend of mine came to me with an idea, that we buy the place up and make it a comic/manga/movie shop.

I've always wanted my own little hole in the wall business, I'm just hoping this isn't us getting in over our heads. On it's face it sounds logical. The nearest comic outlet, now that the two nearest us closed down, is almost 50 miles away. There are none in the immediate vicinity, and I think being connected to a GameStop would be appropriate and improve traffic flow.

I'm thinking I could convince my dad to front us a loan for the place. We wouldn't have to pay for plumbing, since GameStop would let us use their bathrooms, and internet I could hijack. And we have two wholesalers in mind for the comics.

The question I have is, how do we do this? I've never even considered seriously starting a business before. What are the steps we should take if this is really going to happen? And more importantly, what should we name the place? :)

I'm also thinking of dropping Geek Squad and maybe working out of the back of our shop doing freelance work. My friend could also support the place through his freelance photography. I'm thinking we could also exploit the Connecticon event next year to advertise. I mean, anything short of a cheezy local ad.

[rpgdemon]

Alright, first off, do you have a model of business? Going in there guns blazing will ensure that you don't do as well as you should. You should know what you'll be stocking, the total costs involved with the business, and how much revenue you will need to make.

Don't just "guesstimeate" these, actively figure them out. If the numbers are wrong, you could end up flopping.


Secondly, why did the other comic book store go out of business? Are there enough clientelle in the area who would buy your product?

Thirdly, be prepared for stress and sleepless nights as you try to figure this all out. You probably won't want to turn the keys over to someone else for awhile, before you know your employees are trustworthy, so you will be working long shifts.

Fourthly: How about setting up a web front for this, too? Wouldn't be too hard, and you could theoretically earn more money off of it, considering the low costs of domain registration/web hosting these days. I'd suggest Bluehost as a decent service for both web hosting and registration. If you need a site built, hit me up.

Fifthly: Don't be afraid to expand what you sell if things are going well. Could move from comics to general geekery, if business allows it. See what your customers want, and do your best to fulfill their needs and desires, and they'll come back.

[Bob The Mercenary]

Alright, first off, do you have a model of business? Going in there guns blazing will ensure that you don't do as well as you should. You should know what you'll be stocking, the total costs involved with the business, and how much revenue you will need to make.

Don't just "guesstimeate" these, actively figure them out. If the numbers are wrong, you could end up flopping.


Secondly, why did the other comic book store go out of business? Are there enough clientelle in the area who would buy your product?

Thirdly, be prepared for stress and sleepless nights as you try to figure this all out. You probably won't want to turn the keys over to someone else for awhile, before you know your employees are trustworthy, so you will be working long shifts.

I could hire a girl I know who has an accounting degree and works at a bank to do the figures for me. Maybe my dad's accountant can double check just so we don't dig ourselves into a pit. Don't worry, neither of us want to just rush into something so complicated.

The comic store went out of business because of it's location on a desolate stretch of route 46. It was situated in a corner that isn't readily seen from the road. As for the demand, the reason we got the idea in the first place is every day people come in to Gamestop and ask where the nearest comic shop is, and they are always forced to tell them it is 50 miles north.

As for your third point, I've had stress and sleepless nights all year. I think I can handle one more massive life altering decision.

[bluestarultor]

Well, to put it this way, running a business is complicated. There's a reason most of them fail within the first year and almost all within five. What you need to do is find an investor of some sort, because start-up costs are going to be killer. Converting a salon is going to cost money.

The FIRST thing you should do, though, is some market research. There is a reason the two local shops failed, I assure you. You need to find out why. Is there interest in a comic shop? How much? Enough to keep you afloat? What else will you need to stock to keep cash flowing in? GameStop, for example, isn't really big on table-based games, at least not in my area. You may need to delve into board games and cards to bring in an audience. In that case, it might be a good idea to set aside time and space for people to play so you can establish them as a loyal customer base. But then you have to consider whether that's the direction you want the business to take.

Also, you can probably expect to lose out a ton on unsold merchandise. If comics don't get sold, there's only so much you can do with them, and if it's anything like the book industry, you're going to be taking the hit.

Then you have to establish hours, staff the place, and provide an atmosphere. Your customers are going to want your staff to know comics, but more importantly, they're going to expect them to be helpful and provide great service. You're going to need to hire carefully. Knowing comics off the bat isn't going to be as important as hiring people who are willing to learn as they go, often from the customers, and do it quickly and with a smile. You'll have some leeway when you open on the knowledge base, but if your staff doesn't have a good base by the end of the first month, you're going to lose business.


This is just stuff I can think of off the top of my head after one business class, mind you. I'm just saying that it's going to be complicated and giving basic examples.

[A Zarkin' Frood]

I don't know about the legal shiznanigans when setting up a business in the US, only one thing: Don't quit your job hastily. You'll have to invest a lot of time into a new business, but keep your current job, no matter how much you hate it, as long as possible. And when you think extra dollars aren't necessary anymore you can call your boss' mom a whore and be out there in no time.

And DO expect to invest a lot of time, don't think you can do some extra work from the back of your store just like that.

[Professor Smarmiarty]

Do you have lots and lots of finances? Because the majority of new businesses fail and those that don't usually don't see a profit for the first 3 years or so. Unless you can live of the money you have now for a long time, it risky as shit.
Also there is a gigantic ton of paperwork involved in setting up a business so you'll need to be ready for that.
Also as rpg said, work out your figures very well. And get people to look over them- preferably someone who has set up their own business/knows the industry.





Also, you can probably expect to lose out a ton on unsold merchandise. If comics don't get sold, there's only so much you can do with them, and if it's anything like the book industry, you're going to be taking the hit
Ahh wtf? I used to work for Harper Collins and if books go unsold they send them back to the publisher. That was most of my job actually, was reshelving returns.
In this way the book industry is actually different from pretty much every other industry where the shops can't return unsold products.

[rpgdemon]

Alright, cool! Sounds like you're on the right track!

I think you honestly can do very well with this, which is why I'm angling so early for a slice of the pie. It seems like the -basis- a successful venture, which should end well, run by the right people.

Once again though, make sure you put thought and such into this, since it would be a horrible shame if it was rushed and flopped.

(Also, don't wait too long and miss out on buying the store. That's counter-advice, right there, I know. I just said not to rush, and now I'm saying hurry up a bit. Just do it at a pace that you know will work.)

[bluestarultor]

Ahh wtf? I used to work for Harper Collins and if books go unsold they send them back to the publisher. That was most of my job actually, was reshelving returns.
In this way the book industry is actually different from pretty much every other industry where the shops can't return unsold products.

Sorry. Had a brain fart. The distributors in the book industry absorb the costs. I was mistaking one middle-man for another.

I really hope my brain recovers from my mess of a summer before my classes get real. :sweatdrop

[Nique]

Do it.

[Daimo Mac, The Blue Light of Hope]

Man IM me some of this stuff. I wanna know.

[Azisien]

Well you ain't gonna have a blast and tell stories about your sweet comic shop that you have/used to have by not doing it!

Probably going to be a large business loan, from the sounds of it. Ask Obama for a bailout or something.

[Jagos]

*cracks knuckles*

First, get in contact with Diamond Comic distributors. Linkage (http://www.diamondcomics.com/public/) They're the biggest, not necessarily the best. You need to do some research on your market, and you're going to have to do more than comics. My suggestion would be to try to convert it into a hangout place if you can.

Music

You don't want the radio on. Trust me... (http://en.wikipedia.org/wiki/Performance_rights_organisation#United_States)

Get to playing Jamendo music, OCremix has a radio station and play things that are NOT mainstream. If you get into playing licensed music... Don't say I didn't warn you... (http://www.billboard.biz/bbbiz/content_display/industry/e3ifcdf91a54bfcc6595cef50e54faa5467)

I'm also thinking of dropping Geek Squad and maybe working out of the back of our shop doing freelance work. My friend could also support the place through his freelance photography. I'm thinking we could also exploit the Connecticon event next year to advertise. I mean, anything short of a cheezy local ad.

I'll tell you what convinced me to shop at one game store. I met the guy at a Vegas animecon. He had the TVs set up and allowed people to just play on them. 50' Sony's playing SSMB. He didn't really advertise. He just told me "come check it out, see if you like it and how we roll. We're at Nellis and Desert Inn."

I did see more of the place. The guy is still an awesome contact and has more stores (http://www.gameoveruniverse.com/) I believe.

The reason for the story is to say that you shouldn't try to advertise. Find something that makes your comic store unique. Do you read the Scott Pilgrim comics? Do you know the indie scene quite well? Is there more to the DnD 3.5 than breaking the game with bard? Let people get acclimated to you. The first year is hell but it doesn't have to be if you can either find a backer or enjoy it as need be.

But I'd probably say keep the day job for a little while. Just switch to part time if you can and do what you can on the side.

[Nique]

And more importantly, what should we name the place?

Dirty City Comics (ala your location tag)

The Usual Spot

Bob's Comic Shop

Cultured Comics (need a logo with a monocle)

[Eltargrim]

We wouldn't have to pay for plumbing, since GameStop would let us use their bathrooms, and internet I could hijack.

I think you're joking on these ones, but if you're not, :ohdear:

Be familiar with as many of the regulations governing any potential store as possible before committing to anything. Knowing the legal ramifications of what you're getting into will prevent you from being surprised by them later on.

[Nikose Tyris]

I'd get in contact with ladycygnet. She ran and managed a store pretty much on her own, so I'm willing to wager she'd have a metric fuckton of advice.

I'm now majoring in Business in College, and I'm trying to learn everything relevant to laws Opening and running a business in New Jersey right now.

...God I hope you're in New Jersey.

[DarkDrgon]

...God I hope you're in New Jersey.

I think this is the first time I've ever heard that sentence...

[Nikose Tyris]

I think this is the first time I've ever heard that sentence...

I mean, nobody WANTS to live in Jersey, but if I'm going to all this EFFORT then yeah I hope he does.

[Daimo Mac, The Blue Light of Hope]

I mean, nobody WANTS to live in Jersey, but if I'm going to all this EFFORT then yeah I hope he does.

Yeah it is New Jersey.

[krogothwolf]

Yeah it is New Jersey.

God have Mercy on his soul.

[Jagos]

It could be worse. They could be in Boston.

[Pip Boy]

The nearest comic outlet, now that the two nearest us closed down, is almost 50 miles away.

This line here makes me worry a bit. If two comic businesses that were already running went out of business, it might indicate that you're not in the very best place to open a comic business. At least not unless you're totally sure there is enough local interest in such a thing to support it and make sure you have an adequate customer base.

[krogothwolf]

Well, Bob did say that they had poor location. It could have also been poor business decisions, inadequate stock or even just the two of them killed themselves. He'd have to look into why they went out of business.

[Melfice]

This line here makes me worry a bit. If two comic businesses that were already running went out of business, it might indicate that you're not in the very best place to open a comic business. At least not unless you're totally sure there is enough local interest in such a thing to support it and make sure you have an adequate customer base.

From what I understand (really just read from Bob's earlier posts): The previous two shops were hidden away in a corner, away from the main shopping areas or thoroughfares.
Currently, there are a lot of people visiting the Gamestop, which they will be located next to (concluding the Gamestop is in or near a main shopping area or on a main thoroughfare), asking where the nearest comicbook store is.

This does not say anything about why the previous shops closed, but it gives a hint that the bad location was at the very least a contributing factor to their closing.
It also shows that there is a demand for a comicbook store, though if I were Bob, I would certainly take my time and perform at least two polls with probably a month in between to determine if the demand is, in fact, high enough.

[Magic_Marker]

Comic Shop Name Ideas:

- Your Parent's Basement

- Limited Edition

- Super Zero

- Give Me Money

- Goddammit Bob's Comic Shop

-GeekStop (You said it was near a Gamestop)

-Tesladyne Comics

- Jersey Bob's Comics

- Escapism

- FLCS (Friendly Local Comic Store

-NPC (Nuklear Power Comics)

[Nikose Tyris]

"Rockin' Rob's New and Vintage Comics"

In small print

"Your comic and tabletop stop."

[Melfice]

Tesladyne Comics
Nuklear Power Comics

Yes, because I'm very certain Mr. Clevinger would be very pleased to see a comic book shop associating itself with his own IP. ;)

[Terex4]

Worst Comic Store Ever
It'd win you the Simpsons crowd anyway

[Magic_Marker]

Yes, because I'm very certain Mr. Clevinger would be very pleased to see a comic book shop associating itself with his own IP. ;)

You're right. He should use the Final Fantasy IP instead.

[Melfice]

You're right. He should use the Final Fantasy IP instead.

One's Fair Use, the other's making money off a name another dude's making money off. ;)

[Daimo Mac, The Blue Light of Hope]

Comic Shop Name Ideas:

- Your Parent's Basement
Weaksauce

- Limited Edition

Decent

- Super Zero

I don't get it.

- Give Me Money

Weak

- Goddammit Bob's Comic Shop

I fully approve of this.

-GeekStop (You said it was near a Gamestop)

It's okay

-Tesladyne Comics

Only if you have a big ass Robo Statue!

- Jersey Bob's Comics

Decent

- Escapism

Sounds too close to Escapist (See this tweet (http://twitter.com/Daimo_Mac/status/22311228560) for details.)

- FLCS (Friendly Local Comic Store'

I don't get it.

-NPC (Nuklear Power Comics)

No.

[Fifthfiend]

Of all the businesses you could start and have a chance of succeeding, 'comics shop' isn't one.

[Professor Smarmiarty]

What if its a front for a money laundering scheme relying on the fickle, often arbitrary, poorly regulated second-hand comic book market?

[Fifthfiend]

" " " money laundering schemes " " " " " " " " not going to jail / getting your legs broken by the mob " " " "

[Professor Smarmiarty]

No you see the mob won't break your legs cause you're working for them and they have already paid off the police!
How could this fail?

[Fifthfiend]

Because nerds.

EXHIBIT A: Saved by the Bell.

[Premmy]

My local comic shop gets by pretty well by also selling/renting movies and games

[Bob The Mercenary]

Two other ideas. The radio station I volunteer at does remote broadcasts, so I could probably make a live show happen every Saturday night from the store. We'd talk about games, movies, and other topics of interest.

Other idea was primarily gaming tables. But I just got word that the particular spot we wanted was just sold to a tattoo parlor (to the chagrin of basically the entire community). There are two other spots open directly across from the GameStop, both a little bigger than the previous spot. We're calling the realtor tomorrow to find out the going rates.

Of all the businesses you could start and have a chance of succeeding, 'comics shop' isn't one.

Well, of course it wouldn't be comics only. Comics+miniatures/gaming...you have to start somewhere.

[Jagos]

Get a pinball machine!

[Nique]

If there aren't extablished comic shops within a 50 million mile radius, then yeah he might do ok.

[Nikose Tyris]

The tables are a great idea. Only downside is they attract loiterers, who come in with their own cards and drinks, and never buy anything.

[Melfice]

The tables are a great idea. Only downside is they attract loiterers, who come in with their own cards and drinks, and never buy anything.

For some vague safety reason, ask your guests to leave their bags in a closet behind the counter, or something, if they plan to stay for half an hour or longer.

You cut off access to their drinks, so either they don't loiter as much/long or you can have a neat side-business of selling ever-so-slightly marked up drinks. :dance:

Also, this is a horrible plan (at least in this exact shape) that may lose you customers, so don't listen to me, Bob!

[Jagos]

Offer specialty drinks like in here (http://www.asianfoodgrocer.com/category/pocky-sticks-pretz). Kids feed on nostalgia. use that to your advantage (http://www.xoxide.com/nintendo-mariobros-powerup-energy-drink.html)

[rpgdemon]

I know the gaming place near me sells drinks and stuff in a cooler, which I normally buy at least one of, since it's ridiculously hot.

[Professor Smarmiarty]

Sell them drinks laced with acid. Blam- repeat customers.

[Nique]

Actually free drinks w/ or w/out acid would probably get you more customers. Hell, offer free coffe & donuts with every purchase! It's cheap and giving customers stuff for free adds value and builds customer loyalty.

[Bob The Mercenary]

Discussed some of your suggestions with "the crew". They seem to now be more in favor of a pool hall type place, which would do rather well I'm thinking. The closest one is two towns away and we could possibly put a couple televisions together and set up a console gaming corner. This is all still just us brainstorming, maybe consoles would clash too much with a pool hall atmosphere. If anything, once this gets going we can start some sort of late night tabletop gaming.

[Loyal]

This is all still just us brainstorming, maybe consoles would clash too much with a pool hall atmosphere.I doubt it. It works out pretty nicely at my previous college, even with games that tend to produce a lively audience.

[Nique]

If you can afford some actual arcade games, having a street fighter in there could be a pretty big pull.

[Magus]

I know whoever said it was probably kidding, but selling porno mags and comics along with the regular ones probably would lead to higher revenue. Jus' sayin'! You said this place had a back room, after all...:D

Also, ff you do sell soft drinks, don't overcharge on them, I was walking around Redmond, stopped at a hobby shop, and was annoyed that they were charging 50 cents more for drinks than pretty much any other place. Screw that noise. I wouldn't go back and hang if I lived in that area. You'll just alienate some people like me who are cheap asses and idealists, and if you're depending on overcharging people 40 cents on soft drinks to turn a profit there's something wrong with your business model, anyway. If you wanna make your place into a joint for people to RP and you're really that afraid of loiterers, try to establish some level of membership for the privilege of RPing there (even if it's just a free laminated card given out to people who actually buy stuff from you once in a while and you recognize). Personally I'd feel weird about RPing somewhere and never buying anything from the guy, at the least soft drinks (at normal prices!) but I guess some people are incapable of that kind of awkwardness.

You could also sell coffee stuff. Some people like coffee shop atmosphere, plus if you got comics going on it'd have that going on too. Just don't purposefully rook people to turn a profit! Don't lose money on the food but it should really only be a hook for the actual purpose of selling whatever your product is finally going to be (comics or books or whatever you settle on...)

EDIT: Oh and while a lot of businesses aren't required to have public restrooms (I'm surprised your GameStop has one, unless there is an actual law about it in New Jersey), jacking internet would probably get you in a lot of trouble if they figured out it was you. Doing that on an individual basis is easy enough but if you're running a business I'd recommend doing that stuff legitimately, man.

How do pool halls work, anyway, Bob? Membership fees or something? Are you really going to beat out local bars which probably also offer pool?

[DarkDrgon]

Pool halls around here (here being central jersey) generally either have a HUGE cover charge for the whole night, or you pay by the hour. Its generally more of a thing for people who like to play pool and also do other stuff, as opposed to bars where the purpose is to drink and maybe do something else.

Hell, the pool hall I frequent doesn't even serve anything but beer (tap only), soda, and iced tea. for food they have normal appetizer finger foods. and they are always busy.

[Magus]

I may have misinterpreted what he said as "starting a pool hall" as opposed to "having his store have a 'pool hall' atmosphere where people play games instead as opposed to pool".

EDIT: Regarding pool halls, though, I know they have such things as coin-operated pool tables, so he could maybe dispense with the cover charge. I never used one though so I'm not sure what happens if you scratch, do you gotta pay to get the cue ball out?

[rpgdemon]

The cue ball comes out when you scratch. I guess it's weighted slightly differently?