U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics > Business
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-09-2012, 01:39 PM
 
2 posts, read 2,981 times
Reputation: 10

Advertisements

Hello!

I am a mid-20's female extremely interested in starting up a small business in this, eh, not so great economy. I've taken a business law class, obtained an LLC, began a business account to start building credit with, obtained my Michigan tax ID. Now for the risky stuff; loans, suppliers, location, advertising, etc.

I have been establishing credit, which is how any business begins. I'm a risk taker, in it for the long haul, whether the ship is sailing or sinking I'm prepared to endure.

The cons, I have only a mere few thousand to begin with. Which is everything I have. I've chosen to open a retail store, specializing in a specific field, though also very seasonal. So, in the cold winter months of Michigan, I'll focus more on winter clothing (again, focusing still on the specialized items I'm choosing to sell) Sorry for the lack of details, for those idea thieves

I will have no employees, and work a night time job for extra income through the 'growing pain' year..or two.

Location should be important & quality products are important, but I'm worried that with the cost of inventory, and building space, AND advertisement that I will not overcome the sufficient funds needed for this ship to sail. Starting small and simple is the goal. Renting is silly in such a down economy, but necessary without proper income.

Please help with any suggestions you may have.

Thank you!

Last edited by ArtfortheSoul; 11-09-2012 at 02:57 PM..
Rate this post positively Reply With Quote Quick reply to this message

 
Old 11-09-2012, 02:42 PM
 
2 posts, read 2,981 times
Reputation: 10
One more thing; Although I have 800+ personal credit, since this business is less than 6 mo old and have very little business credit, coming across a 40k loan may be a bit tricky. Chances are, I'll probably be solely responsible. So....I'll have to convince an investor, or a bank dumb enough to give out such a risky loan. Any tips on how to achieve this?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-10-2012, 10:21 PM
 
Location: Here.
15,457 posts, read 13,992,336 times
Reputation: 18079
Have you worked in a clothing store before?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-11-2012, 04:16 PM
 
28,900 posts, read 49,042,221 times
Reputation: 46315
You know, given the superabundance of clothing stores and given the dodgy state of the Michigan economy, you really need to understand what you're up against.

Here's my advice to you. Unless you are prepared to a) Do something really, really unique in your geographic market and b) be a fearless self-promoter, do NOT open a retail space. This is especially the case given how easy it is to set up online stores. That way, you can concentrate on finding really unique stuff and marketing it over a wider geographic area rather than babysit a store all day.

Hey, I'm not saying that opening a physical store is automatically doomed, but the odds are long. I'd rather look at the trends in retail and say that there's an easier way to make money in the apparel biz.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-11-2012, 05:59 PM
Status: "Enjoying working from home." (set 6 days ago)
 
Location: East of Seattle since 1992, originally from SF Bay Area
33,812 posts, read 61,505,621 times
Reputation: 37701
I'd think twice. No one will lend money for a business without collateral, and in most cases it's the equity in a home. Any new business, especially retail or restaurant should have sufficient funds on hand to pay the rent, utilities and suppliers, as well as home rent, food and clothing for at least 6 months while building up the business. When I first started in my business I had a part-time for the first 6 months and quit after things got rolling but that is a really hard life, working 12+ hours a day. I had paid cash to buy an existing business and had no debt other than a house payment. My business doubled the second year and took off after that. I made it 17 years, raising 3 kids over that time, as several competitors came and went within a mile of my shop. The purchase price was about $30,000 and if I had borrowed that I would not have made it the first year.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-11-2012, 06:50 PM
 
5,402 posts, read 10,315,652 times
Reputation: 4465
Quote:
Originally Posted by ArtfortheSoul View Post
Hello!
Mkay. You are really asking, right?

Been doing business for some years, now.

Will give you the same advice I would give my own daughter.

Fair enough?

Quote:
I have been establishing credit, which is how any business begins.
Not true. Bad idea. Very Bad.

Quote:
I'm a risk taker,
Not good. You need to surround yourself with some serious "No" men.

Quote:
in it for the long haul,
Makes no difference. GM could have said the same. Difference is they will get a bailout. You will not.

Quote:
whether the ship is sailing or sinking I'm prepared to endure.
I watched the Titanic 10 times. Ends the same way every time. If you do not have a lifeboat, it is a dumb idea. Even if you have a life boat . . . dumb idea.

Quote:
The cons, I have only a mere few thousand to begin with.
First Good. Less to lose.

Quote:
Which is everything I have.

Suppose that is a Stop Loss Limit. No debt for you. Got it?


Quote:
Thank you!
You are welcome, kid.

Look, I understand this is not what you want to hear, but better from friendlies, like us, rather than creditors, later.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2012, 10:13 AM
 
28,900 posts, read 49,042,221 times
Reputation: 46315
Quote:
Originally Posted by Philip T View Post
Mkay. You are really asking, right?

Been doing business for some years, now.

Will give you the same advice I would give my own daughter.

Fair enough?



Not true. Bad idea. Very Bad.



Not good. You need to surround yourself with some serious "No" men.



Makes no difference. GM could have said the same. Difference is they will get a bailout. You will not.



I watched the Titanic 10 times. Ends the same way every time. If you do not have a lifeboat, it is a dumb idea. Even if you have a life boat . . . dumb idea.



First Good. Less to lose.




Suppose that is a Stop Loss Limit. No debt for you. Got it?




You are welcome, kid.

Look, I understand this is not what you want to hear, but better from friendlies, like us, rather than creditors, later.
Kinda. Look, I think it's one thing to let the OP know what she's up against. That's legitimate. But this was nothing more than sniping. You should at least offer up some constructive ideas.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2012, 08:01 PM
 
3,853 posts, read 12,027,174 times
Reputation: 2522
Don't open a retail store. Go online instead.

Clothing is all about marketing, hence the reason clothing designers/retailers are always looking to get some sort of endorsement.

If you open a retail store most likely you will be burning through alot of cash in expenses. With an online store, your operating costs are next to nothing.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2012, 10:19 PM
 
28,461 posts, read 75,938,055 times
Reputation: 18533
There is a razor thin margin for any kind of retail business. Sad reality of even VERY VERY VERY successful web based retailers is that they do not make very much money. Heard of these guys? Bonobos: an America's Hottest Brands Case Study | America's Hottest Brands 2009 - Advertising Age Well read this carefully: Match Made in Merchant Heaven: Nordstrom Partners with Online Retailer Bonobos - Forbes Notice how the Stanford Business School grad is very careful to "pump up" the gross sales number but not mention a WORD about "profit"??? That ain't no accident! These kind of deals are all about keeping INVESTORS happy long enough to swing some HUGE cash out strategy...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-12-2012, 11:13 PM
 
5,402 posts, read 10,315,652 times
Reputation: 4465
Quote:
Originally Posted by cpg35223 View Post
Kinda. Look, I think it's one thing to let the OP know what she's up against. That's legitimate. But this was nothing more than sniping. You should at least offer up some constructive ideas.
Fair enough.

Really was just trying to make sure that the one-night-a-week bidness class from the former K-Mart Assistant Manager / "Teacher" -- who probably taught something like "Businesses use debt to expand their opportunities . . ." or some such nonsense was NOT the path she is taking.

Sounded really hard like she was . . . no?

=============

So -- instead -- get your suppliers to "floor plan" you. No debt for you. Their product is For Sale in your outlet. You market, you manage, you profit. Same on rents. Do splits with the site owner. Retail sites are available for that in Michigan. Get really smart and promote Local Only / USA production. Have an Amish-Made Line. Have a Ghettoz Hoodie Line, on and on.

If you wind up with your own site -- take it non-profit. Takes you off the tax roles. You can still make plently of money on this. If you make it this far, come back and we will tell you how.

There, cpg, you like that better?

=============

Meanwhile -- back to the OP -- No Debt for You. Mkay?
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top