Opening a Business???

[Merc]

With the way the economy is heading Do you think opening up a business would be a good or a bad idea?

I found a location that I am really interested in. There are about five different gyms and absolutely no supplement stores what so every except at a juice bar which carries some supplements. There are about 100,000 people in a 5 mile radius average income is only about 85k but living is cheaper too. Its would be seen on a busy highway, signal turns into the shopping center. Plus there are lots of new housing development going in.

What are you guys thoughts? My old man is saying it would be a mistake and I think if I dont go for it now someone else will and establish a good client base.

Any opinions/comments would be appreciate!

[Klash]

Re: Opening a Business???

With the way the economy is heading Do you think opening up a business would be a good or a bad idea?

I found a location that I am really interested in. There are about five different gyms and absolutely no supplement stores what so every except at a juice bar which carries some supplements. There are about 100,000 people in a 5 mile radius average income is only about 85k but living is cheaper too. Its would be seen on a busy highway, signal turns into the shopping center. Plus there are lots of new housing development going in.

What are you guys thoughts? My old man is saying it would be a mistake and I think if I dont go for it now someone else will and establish a good client base.

Any opinions/comments would be appreciate!

I guess the first thing I would figure out is, with overhead, can I compete with the internet. I had a buddy who had a supplement store but I got my stuff cheaper off the internet. I never used him.

[daved150]

Re: Opening a Business???

lol!! you asking me??!! i just opened a second biz, while the first one aint even stable yet, lol...suuuuure...i say go for it, lol!!! i would!

seriously bro...read what klash had to say. the internet is HARD to beat! the people who'd support such a thing are people like us...we love it, we live it, we shop on line!! i think it'd serve your best intrest to push the one you have now on the internet. take that start up cash, you must have, and invest it in some advertizing. muscular developement, muscle and fitness, muscle mag. throw some money at google to get a high ranking on a search.

[dot1]

Re: Opening a Business???

lol!! you asking me??!! i just opened a second biz, while the first one aint even stable yet, lol...suuuuure...i say go for it, lol!!! i would!

seriously bro...read what klash had to say. the internet is HARD to beat! the people who'd support such a thing are people like us...we love it, we live it, we shop on line!! i think it'd serve your best intrest to push the one you have now on the internet. take that start up cash, you must have, and invest it in some advertizing. muscular developement, muscle and fitness, muscle mag. throw some money at google to get a high ranking on a search.

I am in his shoes! I have my business and my wife decided being a Chemical Engineer wasn't her thing anymore. Thus we opened another business!

[kite]

Re: Opening a Business???

I guess the first thing I would figure out is, with overhead, can I compete with the internet. I had a buddy who had a supplement store but I got my stuff cheaper off the internet. I never used him.

Very true. What I would do to start off with is just run it outa my house. If you got a place to store your supps you could advertise in gyms (usually free of charge) and in local shoppers which generally are cheaper than a news paper. Based on the response you get over a few months you could then decide if it's worth rentin a place and that type deal.

[Merc]

Re: Opening a Business???

For price wise what I was going to do is take my current prices and add what it would cost to ship it for the instore prices.

The place that I am looking at is about 3 hours from where I currently live.

The bulk of the profit that i make now comes from the average joe buying vitamins and not sport supplements. The overhead I know i could pull off, my old man makes a pretty good amount and his rent is 2 times what I am going to have to pay and he has tons of competition in his area.

If you have any more input feel free !!

[dot1]

Re: Opening a Business???

What is the demographic makeup where you want to open? There may be more competition where your dad is but more people to support it. What is the economy like and is it a relatively affluent community. In other words, are there a sufficient number of people who could afford your product?

[daved150]

Re: Opening a Business???

dont forget bro...compatition is good!! it brings more people to the area for your products!! why do you think car dealers are all in a row?

[Merc]

Re: Opening a Business???

dont forget bro...compatition is good!! it brings more people to the area for your products!! why do you think car dealers are all in a row?

yeah I just like the thought of being the first one there, I know a GNC will probably be moving into the area with in the next 2 years at the very longest but GNC at got nothing on me LOL

[DJDIGGLER]

Re: Opening a Business???

It's hard to beat name recognition. You'll need to build a following to beat the big names. The way to do that is exactly like daved said....ads in big magazines, google ads etc etc.

The best example I always give for name recognition is this...

I called my mother once and told her I was getting a new washer and dryer. she said to get a maytag. I asked why and she said "because they are the best". I asked "did you ever own one?" she said no. I asked if she knows of anyone that owns them and again she said "no". I then asked "how do you know they're the best then?" she said "because the ad said so." I was like "Mom you realize they aren't going to advertise that they're products are going to explode or that they break alot right?" she started laughing realizing how bad she fell for the marketing.

This is a prime example how name brands trump the little guys. Make yourself seem bigger than you are buy overcompensating with advertisisng. That's the best and only way you'll truly make a success!

[Merc]

Re: Opening a Business???

Thanks DJ, I have good standing with some of the pros and am constantly making more friends through the community. I have no problem with advertising. One gym has already said that they would be happy to let me do advertising in their gym as long as I promote some of their trainers.

The demographic make-up for the area seems to be in their mid 30's to early 40's with more and more moving in. Its the fastest growing region in the state where I live.

Most supplements shops dont make their money from bbers its usually from the average joe buying vitamins.

I talked with the loan person to open up a shop and I need to come up with 30% of the startup cost so I need to pull 30-60K out of my butt to get this going, I guess that is where family members come into play LOL

[DJDIGGLER]

Re: Opening a Business???

No prob Merc. I've use the same "seem bigger than you are" tactic with my own business and although it was spotty at first is now doing much better.

Everyone always says they thought I was a huge corporation. It's pretty amusing when they find out I'm a one man show. HAHA!

[T-Man007]

Re: Opening a Business???

Actually, I'm of a different perspective than DJ. I don't follow the big name, I actually prefer to buy from the mom and pop places more. Fore example, there are GNC's everywhere and I won't step into one of those for anything. They are a rip off.

Back in ATL I used to know the guys that owned Supplement Warehouse. The same one that's online. They do most of their business online and have a retail store near a gym they also sell for discount prices. I told my supp guy here to get online and when he did, he's sales went through the roof with no additional expenses on retail space or employees. Orders come in, the people working the store pack them and call UPS, or whoever, for pick up.

The best thing to do, in my opinion, is to get involved with the local gyms when they do their member appreciation partys. If they don't do those, then they are missing out on some great opportunites. We would hold those things a few times a year and tell the members that anyone they bring will get a free month and some members would bring in several friends. We would have a supp guy, a chiropractor, a nutrintionist, a massage therapist and stuff like that. We (the gym and the other merchants) we get to get our faces in front of dozens of new people and it would always result in sales/clients for most of us. See if you can get set up to join in on those things and you will get the name recognition you need. Also, offer a 10% discount gym staff. My supp guy gives me 10% off his already very low prices because I send everyone I meet to him. He doesn't make much off of the stuff I buy but he makes a ton off of the people I send to him. Any time anyone asks me anything about supps, I tell them to go see my guy. He knows this stuff like the back of his hand and he asks every company he works with to send him a copy of the lab tests. That way, he can show his potential clients just how credible the product is. He has a rule though, any company not willing to send a lab test, he won't do business with. He says I'm not going to tell my clients to put something in their body if the company won't see any proof of what's in it. Great rule to operate by, it makes the consumer feel safe about buying from him.

Hope that helps.

[daved150]

Re: Opening a Business???

you sound like you minds made up! if you know the industry, the way it sounds that you do, then i guess you gotta go for it! your young still bro. i lost 250k in cash before i was 26!! it's only money, and you can always get more!! if it works, your rocking, if it dont, you can draw from it and start again! (oh, and i had 2 kids when i lost it all)