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Message
Starting a small business
Posted on 7/22/14 at 11:16 am
Posted on 7/22/14 at 11:16 am
I want to start a small business selling dietary supplements, shakes, smoothies .... What are some guidelines to follow to get the business up and going? I am going to start off with a wholesale distributer at first for ease of ordering then move to direct from manufacturer after my feet are wet.
I am having trouble figuring out the start up cost. From a retail standpoint, how much inventory should I start with? What do I need to include?
I have started to work out a business relationship with a neighboring gym and they seem excited about it. I plan to use the foot traffic for the gym to my advantage. There is no other competition locally.
I'm extremely nervous about doing this but I just want something that will supplement my income and eventually take over my job now.
Any advice would be great.
I am having trouble figuring out the start up cost. From a retail standpoint, how much inventory should I start with? What do I need to include?
I have started to work out a business relationship with a neighboring gym and they seem excited about it. I plan to use the foot traffic for the gym to my advantage. There is no other competition locally.
I'm extremely nervous about doing this but I just want something that will supplement my income and eventually take over my job now.
Any advice would be great.
This post was edited on 7/22/14 at 11:19 am
6
Posted on 7/22/14 at 11:28 am to Hu_Flung_Pu
Owning a retail space and having a separate job is a tough situation. You're going to need to be in the retail space every available hour.
Posted on 7/22/14 at 11:41 am to VABuckeye
quote:
You're going to need to be in the retail space every available hour.
Well, I'm basing my structure on my time with GNC in another town. We only used one employee and the city sizes are comparable. I plan on spending a month training the employees.
Posted on 7/22/14 at 11:44 am to Hu_Flung_Pu
Just telling you. Leaving a new business in the hands of employees is not a great idea. The reality is that they aren't going to treat the business the way you will. To be successful you have to invest a lot of time. I'm not saying you can't do it but it is a big consideration and something you need to work out.
Best of luck to you.
Best of luck to you.
Posted on 7/22/14 at 11:48 am to VABuckeye
quote:
Best of luck to you.
Let's say that I do commit fully to the business. Is there any advice you can give on start up costs?
Posted on 7/22/14 at 12:17 pm to Hu_Flung_Pu
Have 5-6 months worth of costs (fixed and estimated variable) available to you.
Be prepared to not take a salary for 12-16 months.
Have a very good Accountant.
Be prepared to not take a salary for 12-16 months.
Have a very good Accountant.
Posted on 7/22/14 at 12:24 pm to Hu_Flung_Pu
Your POS (Point of Sale) software needs to come into play as well. Good luck and there will be some bumps in the road, but you'll be fine
Who will you hire out to man your business though? Wife? Kids?
Who will you hire out to man your business though? Wife? Kids?
Posted on 7/22/14 at 1:09 pm to Hu_Flung_Pu
What area are you in?
Posted on 7/22/14 at 1:13 pm to Hu_Flung_Pu
I do not know the first thing about a dietary supplements business, but I help new businesses start up every day. Here are some things to consider.
1) Spend some time on business intelligence. You said you would be in a gym? See if you can spend some time at the gym talking to the people who work out there. Ask them what kinds of supplements do they use? Will they be able to charge purchase to the gym account (if there is one, or should there be one?) That will help you determine your inventory needs. You base your inventory depending on how fast you think you will sell a certain item, and how quickly you can get a new delivery.
2) Hire a good accountant. Especially since you won't be doing this full time, you want someone who has experience working with small biz, who can not only help you with things, but can also be another set of eyes on the books.
3) QuickBooks POS software combined with QuickBooks Retail Professional Edition should be able to handle all your financial needs.
4) Put the business inside an LLC.
5) You have to have a good organization system, receipts, bills, etc.
6) If you are going to be inside a gym, you will have to pay them rent, plus maybe a share of utilities, you will also have some fixed asset costs.
7) Prepare to not take any money out of the business for a year.
8) I'd be cautious with hiring an employee at first. If you do, make darn sure you can trust them. But, you need to be in there every possible hour you can, so you can work on the business, and save money on employee costs.
1) Spend some time on business intelligence. You said you would be in a gym? See if you can spend some time at the gym talking to the people who work out there. Ask them what kinds of supplements do they use? Will they be able to charge purchase to the gym account (if there is one, or should there be one?) That will help you determine your inventory needs. You base your inventory depending on how fast you think you will sell a certain item, and how quickly you can get a new delivery.
2) Hire a good accountant. Especially since you won't be doing this full time, you want someone who has experience working with small biz, who can not only help you with things, but can also be another set of eyes on the books.
3) QuickBooks POS software combined with QuickBooks Retail Professional Edition should be able to handle all your financial needs.
4) Put the business inside an LLC.
5) You have to have a good organization system, receipts, bills, etc.
6) If you are going to be inside a gym, you will have to pay them rent, plus maybe a share of utilities, you will also have some fixed asset costs.
7) Prepare to not take any money out of the business for a year.
8) I'd be cautious with hiring an employee at first. If you do, make darn sure you can trust them. But, you need to be in there every possible hour you can, so you can work on the business, and save money on employee costs.
Posted on 7/22/14 at 1:20 pm to LSUFanHouston
quote:
LSUFanHouston
I workout at the gym and know the manager and most of the regulars there. I would not be at the gym but the retail space beside it.
I worked at a GNC for a little over 2 years and know the business on the employee side (inventory, mark up, sales strategy) I don't know the ins and outs for things like insurance, payroll, taxes....
Posted on 7/22/14 at 1:40 pm to LSUFanHouston
quote:
7) Prepare to not take any money out of the business for a year.
This is what scares me. Not anything else. If I can just get out enough to cover bills, my wife could cover the rest.
Posted on 7/22/14 at 2:32 pm to Hu_Flung_Pu
Would your prices be comparable to what an individual could buy online? Obviously charge a little more because of no shipping wait for the client.
No offense, but unless you get the wholesale products cheaper than a site like DPSnutrition or other comparable sites, I have always viewed supplement store sales (a la GNC) grossly overpriced. So much overpriced that I would not even walk into the store.
This is all based on a person like me doing some type of research on price comparison. If you could have prices in the range of online then you might have a sustainable business. You obviously would have to offer sound advice and other benefits to Seperate your business model.
Just my dos pesos.
Good luck!!
No offense, but unless you get the wholesale products cheaper than a site like DPSnutrition or other comparable sites, I have always viewed supplement store sales (a la GNC) grossly overpriced. So much overpriced that I would not even walk into the store.
This is all based on a person like me doing some type of research on price comparison. If you could have prices in the range of online then you might have a sustainable business. You obviously would have to offer sound advice and other benefits to Seperate your business model.
Just my dos pesos.
Good luck!!
Posted on 7/22/14 at 3:10 pm to Doink
quote:
No offense, but unless you get the wholesale products cheaper than a site like DPSnutrition or other comparable sites,
I would be comparable to online sites. That is my goal. I was always sick at the mark up at GNC. (I worked there, so I know what it is) It would probably be 5-10% higher than online due to overhead but not anymore. I want to also provide pre/post workout shakes for the people going in/out of the gym. While they are in there, they would also just pick up some other things.
I want to set up sign up sheets for the gym next door for personal training. They will in turn push people to my area. I would also provide discounts for Snap fitness members (neighbor gym) for advertising.
This post was edited on 7/22/14 at 3:14 pm
Posted on 7/22/14 at 3:16 pm to Hu_Flung_Pu
How large is the space you plan to occupy?
Posted on 7/22/14 at 3:19 pm to Coach Guidry
1200 sqft
Posted on 7/22/14 at 3:22 pm to Hu_Flung_Pu
Who are your competitors in the area? Lets say..10 mile radius?
Posted on 7/22/14 at 3:37 pm to Hu_Flung_Pu
quote:
I would be comparable to online sites. That is my goal. I was always sick at the mark up at GNC. (I worked there, so I know what it is) It would probably be 5-10% higher than online due to overhead but not anymore. I want to also provide pre/post workout shakes for the people going in/out of the gym. While they are in there, they would also just pick up some other things
Post workout shakes may seem to be your biggest cash flow. But I am glad you realize what you have to do to be competitive for supplements. If I found someone 5-10% higher I would shop there for not only price, but to support local business. That part of your business could be viable. Like others say, look at competitors, gym proximity is a plus for you, and overhead costs.
Posted on 7/22/14 at 3:41 pm to Doink
quote:
I would shop there for not only price, but to support local business
Unfortunately...most do not think this way.
Posted on 7/22/14 at 3:44 pm to Coach Guidry
quote:
Who are your competitors in the area? Lets say..10 mile radius?
GNC but they are in Baton Rouge and have no traffic in that area(Millerville/Old Hammond)It is roughly 10 miles away. The location I would have would benefit Central,Eastern BR, and north Denham Springs.
Posted on 7/22/14 at 7:02 pm to Hu_Flung_Pu
quote:Any fool can sell; it's how you buy that makes the difference.
I am going to start off with a wholesale distributer at first for ease of ordering then move to direct from manufacturer after my feet are wet.
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