I was wondering if anyone on here owns there own bike shop or part own it, me and a couple of mates have been talking about setting up shop and i was wondering what are the pro and cons to it
bike shop
- Thread starter ukjason
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Some weeks I make more money then my boss (owner).
Pros: you own a bike shop and can finaly make it a shop that you'd spend money at.
Cons: You'll be broke by next friday (if not sooner)
Cons: You'll be broke by next friday (if not sooner)
just from working in the shop, and opening 2 shops for different friends who didn't have the funding, I can tell you, if you aren't independently wealthy, or don't all have other (9-5) jobs that you don't mind using as your money to support the shop, then don't even think about it! You aren't going to open a shop and all of the sudden start making money, you are going to keep dumping money in.....
do you work in a shop now?
do you work in a shop now?
Well, the shop here in town does pretty well for a population of 16,000. Just last month we brought in about 40k in sales and repairs. Of course, that can be cut in about half for replentishing inventory, then some addtitional has to be taken out for just turning the lights on.
It's the turning the lights on, rent, free accesories, paying the employees and wholesale costs that make that 40k in sales more like 5k or less for the owner. That works out to 60k/year or less depending on many other factors for the owner's salary. At the last shop I worked at we had to constantly keep at least 200k(at wholesale cost) in inventory on hand to avoid cancelled orders, and missed sales, wich meens to start a shop on that size you would have an initial cash outlay of 200k (probably more as shiny parts atract customers) just for your initial inventory, plus rent, utilities, tools, displays, advertising, insurance, ect. ect. ect. before you can even open your doors and start to try and earn all that cash back. Not saying it is impossible, just saying that a strong bank account and a good accountant will get you allot further than a message board will. Your best option is to try and buy out an existing shop with existing wholesale accounts and customer base, those are the two hardest things to establish, no product to buy = no customers to sell it too likewise no customers to sell to = no money to buy product. Another advantage of buying and existing shop is you may be able to get the owner to stick around and work as a consutant type deal untill you get it all figured out, and you can establish your own rep. within the industry.fubar5 said: