Anybody planning to open an audio shop?

organ

After college, I plan to work for about 7 years to save up a big load of cash. Then go to the bank for a loan and hopefully have enough to open up my own small audio shop.

I plan to have 2 or 3 demo rooms. One room for the lower lines, one for the mid level and one for high end gear.

Of course I will carry Polk and will proudly hang an "Authorized Polk Audio LSi Dealer" banner at the front. Other brands I'd like to carry are Klipsch Synergy and Reference lines, PSB and Paradigm.

Sources and amplification will probably be: Bryston, NAD, Onkyo, Denon, Musical Fidelity, Jolida or ASL and Marantz.

I know it sounds silly, but I'd like to make this dream a reality in the future.

Anybody else planning to open up a shop?

Maurice

AsSiMiLaTeD

I've always thought that would be awesome, just never pursued it...

Frank Z

Nothing silly about having a dream. Owning your own business can be a blessing and a curse, make sure it's what you really want to do, then get busy!!

Frank Z

You could find a subcontractor to handle the installs if needed.

HBombToo

NO WAY but I'll come work for you Organ... I'll be the store drunkard:D

HBomb

Shizelbs

Originally posted by Polkmaniac
I've always thought that would be awesome, just never pursued it...

Ditto, nor do I think I will pursue it. I am going with the tangible and more possible dream of graduating from pharmacy school and then going to grad school for a PhD in pharmcokinetics/pharmacogenomics.

But back to the story at hand. I think opening a shop would be awesome. I don't think now is a great time to do it with the economy as it is. Waiting like you are is probably a good idea. I can't help but go into other audio shops and point out all the things I would do differently. The main one being is I would carry the LSi line. Good luck in your adventure. Maybe you can even get some of us to invest in it.

organ

I've wanted to open up my own audio store since I got into it 9 years ago. I know it's very hard but if I could find the right location and sell the right brands, it should attract a good number of customers.

Sean,
Not sure about the audio stores there but most of the ones here don't do installations and they're the ones making the most money.

Frank,
The subcontractor is a great idea.

HBomb,
Sure dude. You can chill and drink all day:). Just stay away from the lady customers when you're drunk:D.

Most of the small shops here are owned by the 'baby boomers' and by the time I open up a shop, they should be retired.

Maurice

Shizelbs

There is a high end shop in Seattle that has half walk in, look around service, and half by appointment only. I think it would be fun to tailor services to just a couple people at a time. Really get to know what they want, what they like to listen to, and then find that special combination of speakers and sources to really please them. Plus, with no one else in the store, you get that precious silence that listening rooms just can't quite achieve. Just an idea.

pjdami

Sounds like an awesome idea. I wish I could open my own audio business but I'm too far into current commitments.

After college, I plan to work for about 7 years to save up a big load of cash.

That's what I thought I was going to do too 12 years ago. I mean going from making like $5,000 to $10,000 a year as a college student to $35,000 - $40,000 / year with a career, I thought I was going to be rich! However, somehow it doesn't work that way unless you are very determined on what your priorities are. For me it was dumping a 20 year old car that I was using and getting my own apartment, furniture, etc. Bills added up quick. Suddenly, $35,000 wasn't too much anymore. The more you make, the more your lifestyle adjusts to a fancier living.

The local shops here in New Orleans really rely on Home Theater and HT installations to keep the shops going. Without HT, they would starve is what the owner of one shop told me. He does sell high end gear but usually folks that buy that sort of equipment will be set for many years happy and content.

Don't want to sound all like gloom and doom here. Go for it Maurice. If you can manage to stay with your parents a couple of years after college and minimize bills you surely can save up some cash. Like the old saying goes, "It takes money to make money."

Jstas

I'd like to do it myself. We have nothing here save for one really snooty shop and the crappy, big chains like cc, bb and tweeter.

My issues are that I have no capital to open a shop like that, no decent location and no help to do it. Ah well, a pipe dream's a pipe dream.

Ron-P

Someday.....

I want to open my own brewpub and cigar lounge. Of course, the speakers throughout said pub will be Polk.

Someday.....

Pauly

Originally posted by Shizelbs
I am going with the tangible and more possible dream of graduating from pharmacy school and then going to grad school for a PhD in pharmcokinetics/pharmacogenomics.

Alright we have a pharmie hook up Not to highjack or change the subject but yeah my back hurts ****..got anything? lol

Spaz

Shizelbs

Originally posted by spasticpitbull
Alright we have a pharmie hook up Not to highjack or change the subject but yeah my back hurts ****..got anything? lol

Spaz

Yes, yes I do.

shack

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Then go to the bank for a loan and hopefully have enough to open up my own small audio shop.

You better have the cash...this is not a bankable deal under most circumstances for lots of reasons. I am not trying to burst your bubble...opening an audio shop can be done...but don't count on a commercial bank to finance it. Lots of cash and an alternate source of income are necessary if you do it on your own. Investors or guarantors with deep pockets could help obtain financing. Banks will typically not finance this type of inventory and mfgs are reluctant to sell on credit without a track record. Just carrying floor models and demos requires a lot of capital not even counting inventory. And as much as you love audio...it means squat if you know very little about running a business. Small retailing is a very tough business and getting tougher by the day.

A very good business person can usually do well in a wide variety of businesses and can be successful. Most failed businesses do so because the owner that may know the product or service well, does not have the background to turn that knowledge into profit (profit is not a bad word...it is the ONE thing a business must ultimately have to survive!).

Do your homework, learn everything you possibly can about audio retailing (not technical audio knowledge), know how to run a business better than you know the product, have a plan before you start and follow it but be prepared to change it if it doesn't work, have more cash reserves than you think you will ever need, be optimistic but ALWAYS understand what the worse case scenario is and assume it is is going to happen. If you do all of these things and have a little luck, your dream may come true.

organ

Thanks a lot for the suggestions guys. I'll have plenty of time to think about and save up for it. One guy at work told me he'd be my partner. He's the one that gave me the ST-70. He used to have his own restaurant but couldn't get along with his business partner.

I'm very good friends with my boss also and he owns the restaurant I currently work at, so there are quite a few people I can learn from.

I see myself still living with my parents when I'm ready so that should really help me out. I know a few people who are already on their own and it's not a pretty sight. Work their asses off only to pay bills.

Maurice

Tour2ma

Hell Maurice, you can always just buy a white van...

I hope you do it, man. If you do I'll even come and buy something... Polk discount, right?

On a more serious note, look to the local universities for some help. MBA programs 'round here offer free business plan counseling, and some even hook folks up with venture capitalists.

RuSsMaN

Always been a thought in the back of my mind. Hopefully I'll make my million in Real Estate, then look at a shop in 10-15 years.

Heck, go used - don't even need a storefront, you should see my garage right now. It's built for 2 cars, and I can't pull ONE in.

In the past 3 days, here's SOME of what I've added to the 'for sale' inventory:

The Advent Loudspeaker, pair
McIntosh 2100 amp, mint
Nakamichi Dragon, mint in box
JBL Decade L26 pair, need foam, w/ orig literature
JBL L-166 pair, rough but salvageable parts
Luxman R-404 receiver
Luxman R-1120 receiver
Luxman R-113 receiver
Double-digits on Bozak raw drivers and external xovers
Three Teac R2R's
Sony TC-580 R2R
Misc old RCA tube amps

and on and on and on....you get the point.

Get out there, find the gear, and get your (tax free) money on.

Cheers,
Russ

madmax

Start with used gear on Ebay and Audiogon. You could set up each auction with similar looking store fronts and get a following. It's a start you can do right now! Seriously, go out there today and find your first piece of equipment to sell! Start with one item a week and work yourself up from there. Set it up like a real job and have standards. For example the one piece a week rule. No "I don't have time right now" bs. You would have to sell two next week or be self fired if you did that.

madmax

Turbota

Anybody planning to open an audio shop?

And to think, all I ever wanted to do was to open a bar and **** house down in Thailand.

George Grand

I can't think of a hi-fi shop worth a **** that DOESN'T employ a vintage hi-fi specialist/airborne gynecologist. You decide to hire one on, I'm your man.

George Grand (of the Jersey Grands)

PolkThug

Maurice,

Its good that you are setting long-term goals. I can't stress enough how important these are. Some of the best things I have are from setting goals, planning and being patient. There will be many things that try to derail you from your goals along the way, but stick with it and you'll be successful.

Your situation is very doable. Small business loans exist for this type of thing. The first thing you need to do right now is to start building your credit score (FICO). If you have never owned a credit card, go get one, but don't use it. This will start the beginning of your credit history, regardless of whether you use the card or not. You are considered to have a short credit history until you hit the 10-year mark, at which time you will get a score boost. Why is this important? The higher your score, the more loan options you will have and the lower interest rates you can get, which translates to thousands in savings. To check your score now, you can go to equifax.com (among others).

Also, if you plan on opening a stereo shop in 2011, then make sure that whatever vehicle you are driving is paid off by then. If you are making car payments when you apply for a loan, your monthly car payment will count against you when the bank calculates certain ratios.

I know this may be a lot to swallow right now, but print this response out, keep it handy, and add notes to it over the years. You've got hella potential.

Regards,
PolkThug

young

i want to open my own mall... where it will be full of shops that i want to be in. home theater, computer/video game, banana republic, etc. i'd give myself a good discount too.

seriously, heck yeah. go for it. be honest, do a great job, and be happy w/ what you do. nothing more needed.

organ

Tour,
White van? No way! That's ghetto audio business:D.

Yeah, I will check out those classes. But first I'll have to finish school and work for many years.

Russ,
Damn dude. You have enough gear to open up a small used audio shop. I don't know how the hell you find so many equipments. That's a lot of gear in 3 days!

Madmax,
That's a great idea. But getting used gear around here is hard. The only thrift shop is the Salvation Army store and I doubt they sell electronics.

However, there's a repo place not too far from my house that have cars and electronics. I'll have a look there on my summer break.

George,
You're in:)! We'll have Hbomb sitting in the demo room all day getting drunk and the we have George the vintage audio specialist:). Should be a great team:).

Polk Thug,
Thanks for the info. I've been using my credit card for about 4 years now with perfect credit history. Never been late on my payments.

Young,
Why not open a small video game store that also sell audio. A lot of the smaller video game stores around here are starting to sell those little 5.1 systems.

Maurice

Tour2ma

Originally posted by organ
Yeah, I will check out those classes.

Not classes, but a service many Grad Schoools offer. Allows teir MBA students to work on some real world business plans. Normally a faculty advisor is also involved.

Jstas

Originally posted by George Grand
I can't think of a hi-fi shop worth a **** that DOESN'T employ a vintage hi-fi specialist/airborne gynecologist. You decide to hire one on, I'm your man.

George Grand (of the Jersey Grands)

Believe me George, if I did open an audio shop of my own I'd be begging you to be involved!

goingganzo

ok guys i am thinking of getting in to sales at a local ht i have no sales experance but work with people all day and know alot what would you recomend for me to put on my resume. also would i be able to live off the income?

goingganzo

how old are you i am 28 i have been a lifeguard sence i was 17 and have a degree but it hasent helped me get a job it is in electroincs.