Opening A retail Business??? Business owners come on in!! - Page 4 - Lateral-g Forums

Rick D · #31 08-10-2012, 07:57 PM

First thanks again for all the responses and information, you guys are great.

So many have asked what type of business? Well ever since I was a kid I have loved and been into bikes (bicycle). When I was a kid we went to the Schwinn factory that used to be here in Chicago before moving off shore

. Also growing up I used to go to a bike shop in Lincolnwood IL called Lincolnwood Schwinn, I still remember all the BMX bike frames lining the top of the walls. It was really cool.

So fast forward to last weekend when I was out for a ride on the bike trail close to my house, there is a building that came up for rent. So I start to think that this would make a great place for a bike shop, but it is a little bigger then I would need so then I start to think what about an outdoors type place?? The building is right on a main street and two blocks over from the Fox River!! Lots of stop and go traffic goes by every day, still waiting to here back how many cars a day go by.

Well then I think of the big box competition, you know the names, in both bikes and outdoor gear. So then I start to think they all had to start somewhere also so maybe I'm not crazy

am I??

So that's where the idea for this thread came from to see where and what some of you have done to get started. As for the bike deal I could get that off the ground, well at least I think I could, but then when I started to think about getting into more of an outdoor type place well that's getting way out of my comfort zone.

As I stated before if I was to open a shop I know what where and how to do that ten time over!

I get what most are saying about partners and yes not looking for that

I've done that on other things and yes it is hard to do. So that is where I was thinking of some kind of loan SBA as stated or maybe an investor, but that is also hard to come by as I'm not coming up with the latest and greatest so also hard to come by?

Not sure what I am going to do at this point, I started to build my business plan so I will finish that up and then will see. Let me know what you think now that you see my idea??

Thanks guys!!

**Sieg** · #32 08-10-2012, 09:37 PM

Being from Eugene, OR there are a lot of small bike businesses. If you do it right in a niche neighborhood you have a chance. Service/maintenance and repair department could stay busy and bring in consistent revenue with good seasonal marketing plan. If there's an REI or Performance Bike close they could make it tougher. We have an REI and there are still 4 smaller shops within a ten block radius that are doing alright but REI definitely made a dent in their service volume and accessories margins. Eugene has a very large bike population though. Might be worth a trip up here to investigate the shops.

I have a good friend that just retired last week and was an agent for Bianchi, Look, Continental, Eston, Bell Sport and more for 20 years. REI and Performance we're his accounts with Bell unbelievable numbers (7 figures) in just Gyro and Bell helmet sales. You might be able to bend his ear a little.

John510 · #33 08-10-2012, 11:50 PM

My 2 cents....

Research Research Research. Ask a LOT of questions to owners of other bike stores. I would even go work at one if I was you so you can learn everything.

Also, how many people ride bikes where you live? In Dublin, CA I see bikers constantly. In fact there are so many of them they get in the way. However in Hayward I never see any. So a bike store in Hayward wouldn't do nearly as well as Dublin.

Also, if you don't have assets the bank will not give you a SBA loan. You will either need home equity or equipment for them to put a lein or UCC filing.

**WSSix** · #34 08-11-2012, 06:36 AM

You need to get a hold of John (NotATA) also known as the number 14 car. He used to own a bicycle business. He might be able to help you with more details specifically about where and how to focus your attention and products/offerings.

Good luck Rick. I think ultimately I'm going to end up in a small business as either and employee or owner. I'm not really enjoying this corporation crap at the moment. So I need more people like you and others out there willing to make a small business happen.

Rick D · #35 08-11-2012, 06:55 AM

Quote:

Originally Posted by Sieg

Being from Eugene, OR there are a lot of small bike businesses. If you do it right in a niche neighborhood you have a chance. Service/maintenance and repair department could stay busy and bring in consistent revenue with good seasonal marketing plan. If there's an REI or Performance Bike close they could make it tougher. We have an REI and there are still 4 smaller shops within a ten block radius that are doing alright but REI definitely made a dent in their service volume and accessories margins. Eugene has a very large bike population though. Might be worth a trip up here to investigate the shops.

I have a good friend that just retired last week and was an agent for Bianchi, Look, Continental, Eston, Bell Sport and more for 20 years. REI and Performance we're his accounts with Bell unbelievable numbers (7 figures) in just Gyro and Bell helmet sales. You might be able to bend his ear a little.

Thanks Sieg, at some point that would be awesome to have a chat with your friend, I'm still in the beginning stages of planing and seeing just what is need to get this off the ground. There are a couple of other bike shops along the trail and I would be in the middle of both, so I need to go check them out (which I plan todo today). Service and accessories are key from the research I have done already. In the end I may just start with the bikes and then move to other areas if it makes sense. The owner of the building is really willing to work with me to get it rented so will see how that goes.

Rick D · #36 08-11-2012, 07:01 AM

Quote:

Originally Posted by John510

My 2 cents....

Research Research Research. Ask a LOT of questions to owners of other bike stores. I would even go work at one if I was you so you can learn everything.

Also, how many people ride bikes where you live? In Dublin, CA I see bikers constantly. In fact there are so many of them they get in the way. However in Hayward I never see any. So a bike store in Hayward wouldn't do nearly as well as Dublin.

Also, if you don't have assets the bank will not give you a SBA loan. You will either need home equity or equipment for them to put a lein or UCC filing.

Thanks John, yes I get what you are saying about the demand for the product, yes there are lots and lots of bikes along this trail it really goes on for like a 100 miles or so. I plan todo lots of research on the industry, also I get what you are saying about the SBA loan, I have looked into that before for a body shop, lots of assets in that industry but yes not so much in this one so I will see where that goes. Thanks for write up you posted very good stuff there

If I go with just the bikes to start out then I won't need the loan to get it started, where I was thinking I would need more capital was getting into the whole outdoor kind of store, but as I stated before I may start with just the bikes and see about the other in the next stage of the business.

**Sieg** · #37 08-11-2012, 07:07 AM

I wonder if there is decent start up money you could qualify for playing the alternative energy/carbon/environmental angle?

Rick D · #38 08-11-2012, 07:12 AM

Quote:

Originally Posted by WSSix

You need to get a hold of John (NotATA) also known as the number 14 car. He used to own a bicycle business. He might be able to help you with more details specifically about where and how to focus your attention and products/offerings.

Good luck Rick. I think ultimately I'm going to end up in a small business as either and employee or owner. I'm not really enjoying this corporation crap at the moment. So I need more people like you and others out there willing to make a small business happen.

Awesome Trey I will get a hold of John, see I knew this thread would be good for some info. I also get what you are saying about the corporat deal, I work for a 27 billon in sales corporation, but I really do love me job

I really love getting up every day and doing my job, but this is something I have always wanted to do. In the beginning I will stay working for the current employer until the time that it would make sense not to. Still working out the details on that part.

Rick D · #39 08-11-2012, 07:14 AM

Quote:

Originally Posted by Sieg

I wonder if there is decent start up money you could qualify for playing the alternative energy/carbon/environmental angle?

Yuuuup already looking into that and the short answer is yes there is but how you go about it is key.

**Sieg** · #40 08-11-2012, 07:28 AM

Here's the best shop in town: http://www.hutchsbicycles.com/
I remember going there as a little kid in the 60's, dreaming and wanting.
Pay attention to the elements and focus of their site.
Hutch's lon-time competitor which they bought a couple years ago: http://collinscycleshop.wordpress.com/
For the earthy nap-haired crowd in Eugene which is huge: http://bicycleway.com/