Opening a "LFS" Saltwater speciality store

Wasn't there a thread about someone converting an ice cream shop into a lfs?

 

It is a LOT more expensive than you would think. I would recommend doing maintenance first and building up a client base that trusts you. Then you can set up holding tanks at your house to help keep your client's aquariums stocked. Then slowly dip into bringing in fish and corals for non-clients. This will give you an idea of the market in your area. This will help you get your feet wet (literally and figuratively) and also give you data you'll need for your business plan.

 

Great advice. This is exactly what I am planning on doing myself. I have a pair of juvy clowns that I plan on breeding and in a couple of years I want to have a house where I can have a fish room and set up a nice frag tank/grow system for the baby clowns. I'm taking it real slow though.

 

There was/is. I was looking for that thread yesterday. I believe it was a yogurt shop. ;D

Edit: I believe this is that thread: http://www.3reef.com/forums/coralco...n-tropical-fish-store-build-enjoy-110910.html

 

I'm glad you're taking it one step at a time. I've run two stores to help the owners out. This is a cut-throat business with low profit margins so it truly needs to be the love of your life.

It seems like it would be easy to make a lot of money. However, factor in the massive HVAC system you need that runs 24/7 in July/August. Interestingly enough, July/August sales will be the two lowest sales months of the year (kids baseball games, vacations, etc). Luckily, the revenue speeds back up as soon as the kiddos go back to school. In other words, during the months when it seems like everything is going awesome, you need to set aside some of that money for the lean summer months. (BTW, all of my experience with the wholesale or retail side of this industry is based on the Mid-West. On the East Coast, things might be different but I doubt it).

 

This is something everyone on this board has thought of at one time or another. From what I've seen in my local area is that it is a very tough business. For all the reasons inwall gave and then some. Finding good help for reasonable pay. Staying on top of maintenance while customers take up time. Making sure the market is there. Keeping pricing in line with what people will buy online. Razor thin margins for lfs. Internet has killed most brick and mortar stores so your main focus needs to be something people can't or don't want to buy online. One of my lfs sells all brands if salt at a loss. That's his niche. He knows that if you get an addict in the store regularly for salt, he will make money. Inwall is right in suggesting a maintenance business which will be lower start up cost, ability to sell products to people who want you to handle everything, also allowing you to see if there is a market in your area to sustain a lfs. One way or the other, keep our community updated at you progress and I like everyone else here wish you the best of luck!

 

I'd come work with you if only you were closer. I'm in central KY :/

 

Advice. Get an accountant. LOL!

 

Awesome replies, I never thought I would receive so many replies but I guess everyone has looked into doing this in our hobby. Thanks to everyone. I will probably stick to the maintenance route like mentioned a few times before.

 

Maintenance is where the money is. Low overhead and higher profit margins.