Interested in opening a scrapbook store--help?

Hi, I'm new to the site, but not to scrapbooking. For years, I've been agrivated that my Tri-State area (Ky, WV & Ohio) had nothing locally to offer by way of a specialty scrapbooking store. I've had to travel to Lexington, Ky or Columbus Ohio to find most of my supplies. I'm very intersted in opening my own scrapbooking store, but not sure how to get started.I'm looking for people in the industry who might give me some expertise on how to get started and help my find wholesale places, etc.

Hope you can help!

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Traci Gibson

I'm not in the industry but I have seen ads for starting your own lss in Creating Keepsakes. It's with a company that helps you get started. You might want to browse through a magazine or two or even give them a call. Most wholesale companies won't talk to you unless you hav a business license first though.

HTH!

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Keep Scrappin' Along
Shelley *Ü*

Traci,
I'm in the same boat as you. I really would like to open a scrapbooking store. I live in Clovis, NM and I have to go to Lubbock, TX or Amarillo to find supplies. I don't have a clue how to get into this, but it is my dream, so I will keep checking this subject to see what you find out.
Jinger

Traci...proceed very slowly and carefully when opening a new business. I had a mail order business for about 15 years and did very well; however, I spent at least 6 to 8 months doing involved research on every aspect of the business, especially the initial financial outlay. The very first thing I recommend is to determine how many people in your area actually scrapbook and would shop at your business. If there is not much of a customer base, it will be an uphill battle to stay in business. One good source for basic information is the Small Business Association (I think it is still operating) which is comprised of retired business owners who provide free information and guidance on starting a business. You may want to do a web search and gather any free information out there. Once you get a fair idea of what is required financially, you need to talk with a good accountant who can educate you in many areas (forms required, accounting procedures, etc.). And yes, you may want to check with some of the ads in scrapping magazines, but I suspect they will limit your scope of merchandise so that you will sell only their products. Another thought is that on-line sales of scrapping supplies is growing by leaps and bounds. Often scrapping materials are cheaper on-line even with the added postage than your local scrapbook store. And the increased on-line shopping is hurting the sales of some stores that specialize ONLY in scrapbook supplies. I don't mean to sound discouraging at all, but proceed very carefully and get every bit of information you can. I wish you well.

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Scrapper Sue

I saw the ad in CK magazine too for 100,000 worth of inventory for 30,000. I know several owners of stores that have gone through this company and they have a web site. They have been very sucessful and have been open for several years. I would suggest looking them up in the mag/internet, etc. Good Luck. Let us know how it goes.

I have also been thinking about opening a store in my area. There is one in the next town about 10 miles away and it attracts people from up to 70 miles away. My husband is really concerned about the money aspect. We have nothing and I mean nothing to start with. My big question is can I get enough money from a lender, or grant that will help me start from scratch or do I need to have something to start with???

Hear Ye, Hear Ye,

All of you aspiring entrepreneurs should pay special attention to what Sue has to say in this thread. Although Jill and I built Scrapbook.com, I am a business lawyer by profession and have way too many tales of woe about undercapitalized, poorly-researched and poorly-managed businesses.

First, before jumping into any business, you should find a very good accountant and have him run a pro forma--or if you are good with numbers and spread sheets and reality checks, you can do this yourself. If you use and accountant make sure he is familiar with retail operations so he can advise you on inventory, turn-over time, cash-flow issues, overhead, taxes, etc.

Be very careful about borrowing to start a business. Interest will eat up your profits very quickly.

You'll need state and local business licenses, and if you have employees, most states require workers compensation insurance. You'll need a good general liability insurance policy, too.

Additionally, theft is an increasing problem for retail stores. If you open a store, you need to investigate different theft deterrent schemes. These can be expensive, but not as expensive as shop lifting. Most of you would be shocked at the number of regular patrons who walk out the door with products.

Also consider your credit. For suppliers to ship to you, you have to have established credit or order by credit card.

Your lease is another important item. Try to avoid percentage-of-sales leases, and, where possible, negotiate an escape clause (you pay a fixed sum to get out of the lease) just in case things don't work out, or if they do, you may need to move to a bigger place midway through the lease. Thinkk you can run it out of room on the side of your house? Zoning laws or deed restrictions may prohibit that.

Lots of issues.

SCORE is the name of the group of retired executives who help start-up businesses.

Be very careful about people advertising to help you for a fee. Some are great, others will give you more problems than they will solve. Ask for and check out references (at least two or three for consultants).

Some other people may have thoughts on what it takes to open a retail store, but a bare, bare, bare minimum, I believe, is about $15,000 (inventory, tenant improvements, licenses, cash registers, advertising, payroll, etc.), but to do a nice small store, you really need $40,000 to $100,000 to start; and you can't spend it all at once. If you are looking to establish a premier store, you'll need $200-$300 thousand in the bank before you start.

There is a lot more I could share with you, but this, with what Sue has posted, should give you food for thought. Study what Sue said, very very carefully. There is much more in her post than you might initially think.

Go slow and go smart.

This post isn't intended to deter anyone who really wants their own business. I encourage that. I represent a lot of great businesses that started out on shoestrings. But just go in with your eyes open. One of the best ways to keep from hitting a wall is see that it's there before arriving going 60 miles an hour.

Best of luck to all you aspiring store owners.

Charlie