Thinking of starting up an online store
- Thread starter cristos
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Starting a business requires a lot of thought and research. You might first ask the owners of the very type of business you would like to start for their advice. Most business owners I personally know would be happy to give you pointers and advice, if you can find a way to get some of their time, as most are very busy.
Try emailing the owner of 4noggins, J.M. Bosewell, or ask at local tobacco stores with your brief query.
EXCELLENT advice has already been given. The only thing I can add is you should really begin sweet talking your rich Aunt Betsy.
Even if you have everything else necessary, its going to take cold hard cash and lots of it. You said at one point this would be side income. Negative. This would be a major drain that sucks every penny to your name through a huge gaping hole that seems to grow bigger by the day. But if you can plug that hole up with enough cash to keep wheels turning, it might turn profitable in a few years.
Even if you have everything else necessary, its going to take cold hard cash and lots of it. You said at one point this would be side income. Negative. This would be a major drain that sucks every penny to your name through a huge gaping hole that seems to grow bigger by the day. But if you can plug that hole up with enough cash to keep wheels turning, it might turn profitable in a few years.
Are you a glutton for work, and do you enjoy it? You don't want a case of hypertension at age 32.
Do you love-love-love the cyberworld, and do you want to create and upgrade your web site every
day of your life? The weak spot for most online retailers is they can't keep up with the site. Also,
you or someone you hire has to provide content and substantial information. Few web sites have
full descriptions of what they sell. The masters of this are smokingpipes.com. Even other excellent
sites lag a little behind. You need money to carry you for a year, to see if the business will launch.
If you can, you want to postpone trying to start a marriage in the beginning of starting a business,
much less starting a family (kids). But if you are already attached, make sure your spouse can and will
do this. Don't burn any bridges. If this isn't for you, for reasons you cannot now predict, you want to
be able to get back into the job market.
Do you love-love-love the cyberworld, and do you want to create and upgrade your web site every
day of your life? The weak spot for most online retailers is they can't keep up with the site. Also,
you or someone you hire has to provide content and substantial information. Few web sites have
full descriptions of what they sell. The masters of this are smokingpipes.com. Even other excellent
sites lag a little behind. You need money to carry you for a year, to see if the business will launch.
If you can, you want to postpone trying to start a marriage in the beginning of starting a business,
much less starting a family (kids). But if you are already attached, make sure your spouse can and will
do this. Don't burn any bridges. If this isn't for you, for reasons you cannot now predict, you want to
be able to get back into the job market.
As for differentiating your business/brand...
I think there is a real market for hard-to-find, aged blends. If I were in your shoes, I'd try to hook up with pipe clubs and enthusiast groups wherever I could find them, make friends/contacts, and build up the personal relationships you're going to need. Then, whenever possible, I would buy estate lots of pipe tobacco and continue to store it for the future. I'd visit every B&M shop I could find that carries tins and seek out the ones that have several years of age on them. Those would go in the cellar too. I'd keep an eye on eBay auctions for bargains in aged tins and bid on those when appropriate. Finally, I'd keep tabs on currently popular blends and acquire as much current stock as possible to cellar for the future.
All of this to build up a cellar of aged tins so that, say, five years down the road I would have stock to draw from when opening my own business (whether online or real-world). And if in the course of all this tin acquisition you came upon some tins with rust -- whose seals might be compromised -- I'd open those up, rehydrate if possible, and then sell smaller, bagged lots of those blends -- with a full explanation of the age, the condition, and the steps taken to rehydrate. This would give customers the chance to try a small sample of something they might not otherwise be able to afford and reduce the loss you would take with otherwise "bad" tins; after all, I bet many would love to try even a dried-and-rehydrated sample of some long-lost blends.
I realize that a plan that requires buying now and seeing a return in five years isn't ideal.
But it's the approach I'd take personally.
Bob
I think there is a real market for hard-to-find, aged blends. If I were in your shoes, I'd try to hook up with pipe clubs and enthusiast groups wherever I could find them, make friends/contacts, and build up the personal relationships you're going to need. Then, whenever possible, I would buy estate lots of pipe tobacco and continue to store it for the future. I'd visit every B&M shop I could find that carries tins and seek out the ones that have several years of age on them. Those would go in the cellar too. I'd keep an eye on eBay auctions for bargains in aged tins and bid on those when appropriate. Finally, I'd keep tabs on currently popular blends and acquire as much current stock as possible to cellar for the future.
All of this to build up a cellar of aged tins so that, say, five years down the road I would have stock to draw from when opening my own business (whether online or real-world). And if in the course of all this tin acquisition you came upon some tins with rust -- whose seals might be compromised -- I'd open those up, rehydrate if possible, and then sell smaller, bagged lots of those blends -- with a full explanation of the age, the condition, and the steps taken to rehydrate. This would give customers the chance to try a small sample of something they might not otherwise be able to afford and reduce the loss you would take with otherwise "bad" tins; after all, I bet many would love to try even a dried-and-rehydrated sample of some long-lost blends.
I realize that a plan that requires buying now and seeing a return in five years isn't ideal.
But it's the approach I'd take personally.Bob
Cristos...I am in New Orleans and know the Gulfport and Hattiesburg markets well...why don't you try and get a part time job at Epitome in the mall in Gulfport...you can learn the business a little better and they do custom blending...this will give you exposure to what a B&M goes through on a daily basis...after a little time doing that, then you will have a better understanding of the business and regulations.
Its also hard to combine things with smoking in an anti smoking world.
If I had the money to do a start up like that which could be 100k plus, I would keep it in the bank.
If I had the money to do a start up like that which could be 100k plus, I would keep it in the bank.
Combining businesses:
As soon as you include smoking (tobacco and books, tobacco and coffee, tobacco and lingerie) you eliminate over half of your potential clients: people who don't like tobacco. Now if the combination of tobacco and X can do better than doubling your client base over tobaacco alone, then you may do better than breaking even.
Quick lesson: If you come up with an great idea for a business that doesn't yet exist, there may well be a reason WHY that business doesn't yet exist. I'm thinking of the famed "Saloondromat" of Hill Street Blues fame.
As soon as you include smoking (tobacco and books, tobacco and coffee, tobacco and lingerie) you eliminate over half of your potential clients: people who don't like tobacco. Now if the combination of tobacco and X can do better than doubling your client base over tobaacco alone, then you may do better than breaking even.
Quick lesson: If you come up with an great idea for a business that doesn't yet exist, there may well be a reason WHY that business doesn't yet exist. I'm thinking of the famed "Saloondromat" of Hill Street Blues fame.
Lot's of good stuff said here. Also, a lot of people have the wrong idea about owning your own business, especially a B&M. When you work for someone else, you only have one boss. When you work for yourself, everyone is your boss. Keep in mind the way you feel about that one boss that you may have worked for, and think about having to constantly fight that feeling applied to everyone. The city, state and feds, all of those in charge of your building and utilities, your bank and merchant services, the customers, all you will be a slave to (If you're smart). I've seen some of my fellow merchants sink into deep despair with this. I know, I know, everyone tells themself that they, "not me." But, be forewarned. You do not set your hours, nor your prices: your customers do. You do not decide when you take vacation; the bank does. You do not get to slack here and there, or you will starve.
So, if you still want to enslave yourself to a dangerous multi-headed demon, then go see a financial adviser and start writing a business plan. Also, you will want to join all of your local business groups. Only a fool would go into business without a group behind them to help and give guidance. (strength in numbers sort of thing).
Also, you said something about not being rich, ha ha. Yep. Just ask around at a business group meeting. You will find that rarely does a ma/pa business allow one to make enough to actually live much beyond the poverty level. And, the very, very few who do make much money, always seem to have something to hide and seem tired and miserable.
That said, much luck to you :
:
So, if you still want to enslave yourself to a dangerous multi-headed demon, then go see a financial adviser and start writing a business plan. Also, you will want to join all of your local business groups. Only a fool would go into business without a group behind them to help and give guidance. (strength in numbers sort of thing).
Also, you said something about not being rich, ha ha. Yep. Just ask around at a business group meeting. You will find that rarely does a ma/pa business allow one to make enough to actually live much beyond the poverty level. And, the very, very few who do make much money, always seem to have something to hide and seem tired and miserable.
That said, much luck to you :
:
I thought it'd be fun to jump in on this, largely because coffee shop / tobacconist combo locally is something we considered awhile back and discarded because we decided we were in the wrong area for it and it would have been seriously ancillary to our core business.
Frankly, I think creating a coffee shop where one could smoke would be an awesome combo, especially if you sold a few specialty beers and wine too. I'm still sort of in love with the idea and the fact that it wasn't right for us, doesn't make it not a good idea.
The big challenge, online or not, in tobacco retail these days is regulatory risk. Doing the combo with the coffee shop limits that risk some, both because some of your income is non-tobacco and because the regulatory risk is probably slightly lower going B&M than it is online.
Also, your startup costs on local retail are going to be a lot lower than online retail. If you're determined to start something online, I'd recommend going after a tiny niche, know it really well, and build a reputation in it (older English estate pipes, for example). That would limit your startup cost and it would be a whole lot easier to establish credibility in a small field than in a larger one.
Either way, I still think the coffee shop / tobacconist combo is the way to go. You're still talking a pretty good pile of money you'd need to start it, but unless you could really narrow in on a specific niche in online retail, it'd be cheaper than starting something online, I think. I'd totally do that if I didn't have a day job.
Sykes
Frankly, I think creating a coffee shop where one could smoke would be an awesome combo, especially if you sold a few specialty beers and wine too. I'm still sort of in love with the idea and the fact that it wasn't right for us, doesn't make it not a good idea.
The big challenge, online or not, in tobacco retail these days is regulatory risk. Doing the combo with the coffee shop limits that risk some, both because some of your income is non-tobacco and because the regulatory risk is probably slightly lower going B&M than it is online.
Also, your startup costs on local retail are going to be a lot lower than online retail. If you're determined to start something online, I'd recommend going after a tiny niche, know it really well, and build a reputation in it (older English estate pipes, for example). That would limit your startup cost and it would be a whole lot easier to establish credibility in a small field than in a larger one.
Either way, I still think the coffee shop / tobacconist combo is the way to go. You're still talking a pretty good pile of money you'd need to start it, but unless you could really narrow in on a specific niche in online retail, it'd be cheaper than starting something online, I think. I'd totally do that if I didn't have a day job.
Sykes
Cristos, a lot of this may sound pretty negative. It is better to hear all the downside aspects before you
have to dig in to launch a business. But if you have the fire in your belly to do this, the individual passion
to make it work, when it looks like it's all sliding into a sink hole, you can probably do it. I think all the
warnings are, it's not easy. But neither is working for someone else for 35 years. You just have to choose
your project and stick with it.
have to dig in to launch a business. But if you have the fire in your belly to do this, the individual passion
to make it work, when it looks like it's all sliding into a sink hole, you can probably do it. I think all the
warnings are, it's not easy. But neither is working for someone else for 35 years. You just have to choose
your project and stick with it.
I would try to work FOR a business that deals in tobacco or wine or whatever you want your future to be in, and obtain a fairy high position within that company before venturing out on your own.
Those jobs are few and far between though. I've been looking too. These old farts keep these jobs forever haha.
Those jobs are few and far between though. I've been looking too. These old farts keep these jobs forever haha.
I'm surprised that this thread is still getting posts, but I'm not complaining lol. I think the whole business venture is going to be put on hold indefinitely. It's a fun concept to play around with in my head, but for the time being, I just don't think it would be feasible. I did take the advice of several people on here and talked to the owner of my local B&M about getting some part time work. Unfortunately, he didn't have any openings right now, which is not surprising. He did seem interested in me, though. I've had enough jobs that I know how to make a good first impression (a jacket and dress shirt always helps). He asked for a resume and told me he would keep in touch. So I guess now I get to play the waiting game.
In Ohio, anyways, a combo shop of most any kind isn't going to fly. If you want to allow smoking in your store 80% of your profits must be from tobacco sales. I know several locations in the central ohio area where if you want to allow smoking you must be in a stand alone building.
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