Starting a Music Store...How Crazy?

[Deltaphoenix]

Hi All,

I have a unique opportunity to purchase a number of excellent basses at once (including one Alembic in the lot). I have always been a gearhead and a horse trader so this a really exciting yet kind of scary proposition.

The gist of the idea is to start with used, boutique and top end production model basses. I think generating a lot of content - videos mostly, which demo and compare basses which may not have a lot of these type videos is a good way to generate buzz and start to differentiate. Next, I was thinking that offering a reasonable layaway (something that is disappearing). For obvious cost reasons, this will be an online store initially - a nice website with eCommerce.

By doing the two items above, the hope is to draw in some younger players and get them excited about nicer basses and help them get them in their hands so they can be loved. I know, that the typical buyer for these type of instruments is older but I want to help bridge that gap. I think it is important in order to keep these luthiers in business.

Obviously, 31 basses isn't enough to keep this going in a sustained manner. I do know where there are pockets of nice basses which can lead to some restocking and keep the standard where I want it but this won't allow the business to continue.

I imagine working on become a dealer for a few select brands is part of the evolution as well as widening what is carried in the store (pedals, Synths - my other main instrument love). I am unsure about carrying guitars - it is a little bit of crowded space and I can't speak that/demo that, etc to the same ability as I can Basses/synths/pedals and even amps.

I am not sure about all luthiers/manufacturers but I do know that sometimes having a storefront is a requirement to be a part of a dealer network. This is not a show stopper, I have another business endevor wich could use some additional space soon so there is a potential reasonable solution to the storefront.

To really take the vision to the next level, the physical store could provide an additional space for music related events in my community (Gainesville, FL) - say group Ableton classes or recording technique classes, maybe yoga w/live music 2 nights a week, tie the space in with the Girls Rock Camp, etc.

I am aware of the NOs - (supposedly) less and less people are playing basses/guitars, young people don't have the spending power to buy nicer instruments, only Fenders will sell, music stores are closing (and have been for quite sometime) - Guitar Center is on verge of going out of business, etc.

I believe the very highlevel outline above addresses some of the NOs but there is some risk here.

Does anyone have some MI retail experience? Any other thoughts about this idea (calling)?

Thanks!

[David Houck]

Gainesville seems to be a good location for such an endeavor.

My guess is that a startup might have trouble finding financing for inventory.  You should create something like a five year budget with things like rent, utilities, fixtures, inventory costs, insurance, gross sales margin, etc, to see if it works from a cash flow perspective.

If it does work economically, it does seem like it would be an enjoyable way to make a living.

[jwright9]

Deltaphoenix, I’d be happy to talk to you about this. I have run an online store for 10 plus years now and do it for a living full time. I assume you are talking about the lot of basses on TB. Shoot me a message and I’ll give you my number. Happy to share my knowledge and experience with you.

[Deltaphoenix]

Gainesville seems to be a good location for such an endeavor.

My guess is that a startup might have trouble finding financing for inventory.  You should create something like a five year budget with things like rent, utilities, fixtures, inventory costs, insurance, gross sales margin, etc, to see if it works from a cash flow perspective.

If it does work economically, it does seem like it would be an enjoyable way to make a living.

Thanks, David. I wouldn't be seeking any outside funding (at least for quite sometime). 

Figuring the cash flow is critical. I did one round of it and I do need to do a more dialed in attempt as the vision has changed a bit since when I first worked on the business plan.

[Deltaphoenix]

Deltaphoenix, I’d be happy to talk to you about this. I have run an online store for 10 plus years now and do it for a living full time. I assume you are talking about the lot of basses on TB. Shoot me a message and I’ll give you my number. Happy to share my knowledge and experience with you.

Thank you, messaging!

[Deltaphoenix]

After discussion and thought, I am passing in this particular opportunity. The dollars and cents didn’t make sense.

Maybe there will be a next time.

[edwin]

After discussion and thought, I am passing in this particular opportunity. The dollars and cents didn’t make sense.

Maybe there will be a next time.

I think it is a wise decision. It's a cutthroat world out there with all the flippers grabbing up the reasonably price basses and jacking up the prices. Makes it hard for the rest of us.