[tbeer22]

Hi, my name is Tyler and I've been starting businesses ever since I was 16. Few have succeeded, and none of them are still active today. The first business I started was a sunglass company on ebay. Made money, but not enough to make it worth my time. Since then I've started a couple small businesses that didn't grow at all, and TRIED to start other businesses, but found too many hurdles before I could actually get the idea off the ground.

I'm now 20, a student, and hungrier than ever to start a business. I have found a niche of clothing for young adults that has really taken off in popularity. (look at www.digitalgravel.com or karmaloop.com to see the brands..)

I have less than 1000 dollars saved up to start a business, which is discouraging. But I had a great idea. Why not try and sell these clothing brands (small companies with very few distribution lines) online for the companies and then take a commission. Similar to a dropshipping business. I figured these companies are small and they might be willing to give it a shot. Well my hopes were that I could get some companies to commit and that others would hop on board, but to my dismay the first three companies I approached shot the idea down, saying "dropshipping creates problems" and they wouldn't do it.

This got me thinking. These companies are small, so they probably want their inventory sold so they can get more capital to make new designs. They don't want to wait around for their clothes to be sold. So I came to the conclusion that where I live is the perfect place to set up shop. I live in a town with two large college campuses and the students have significant amounts of money to spend on clothes. It's real trendy around here.

The clothes I want to sell are kind of underground so to speak. You can't find the brands in department stores, nor in your local independent clothing store. But I have been getting lots of compliments on the clothes I've been wearing and I'm starting to think that if these college students were exposed to these "streetwear" brands they would buy em for sure.

MY POINT OR QUESTION

To carry the brands I want, setup shop and open a website to supplement my shop, for a six month period I would have to have approximately 30k. The real question is; being a 20 year old kid with no credit and close to no capital. Is this just another business idea that had too many obstacles before I could even start it?

My only thought to raise capital was to setup a website and try to presell my merchandise offering a 25 percent discount, then reinvesting the 75 percent wholesale markup into more inventory and start from phase 1.

Thanks YE for reading all this stuff I had on my mind...

[narcotiks]

i love your enthusiasm. being 19 my self i am aware that it is hard to start-up a business. i have given up on many businesses my self. the reward of course was the lessons i had learnt. firstly i know that a $1000 is too low to start a serious business. i dont know if this has worked out for many people but certainly not me. there is a TV program which has probably been uploaded on youtube.com called "dragons den" i suggest you check it out. i will help you think better about what investors are looking for. after watching it i certainly evaluated my business propositions. good luck anyway.

[Steve]

Hi Tbeer,

I am assuming you are planning to setup shop in Santa Barbara? Renting a space will be a big hurtle and you will be forced to sign a lease for at least 6 months (probably 1 yr - 3 yrs is more realistic). Unless you have other ideas.

My suggestion -- start at the flea market. Buy a good spot and sell sell sell. Advertise your web site at the flea market as another option to buy. If your products will work in a retail store, it should work at a flea market to start.

If you can make money week-by-week for 6 months. You should be thinking store than.

Keep the faith and work hard. GOod things will happen.

[tbeer22]

Thanks for the advice. My responses are that yes I have thought about a 6 month lease in Isla Vista (where UCSB campus is) rent there is 1/5th of the price downtown is. In terms of the flea market, it's not that great here.....

[impressive]

wow you sound alot like me when I was 20, im 24 now going on 25, anyways,,, I assum that you want to open a retail store in the area you live in correct? well if this is true let me tell you something about the retail business, i currently own a western wear store that has been in my family for about 15 years. Be prepared to keep up with fashions and the latest trends! Inventory for example when I first took over the store (which was closed for about 6 months due to family death) was $66,000 plus store fixtures,cash register,phone,deposits/rents,Lighted Sign,=$75,925.00 to start a 1,200sf business. Our profit margins are in the 65% so that good but keep in mind that you must sell a little bit of everything to survive in the retail business, the flea market idea is good to help you generate customers , but I would not jump into a store front with out gathering as many cusotmer as I could firts! Im in a good position because my store has alot of loyal customers but it took us 15 years to generate that! So try the fleamarkets or simply starting a custom "fit" unit! Where you go to them, they give you half down and the other half on delivery. You can start a huge network especailly in college campuses. Just talk to someone you know there to help you get in the door. Take a couple of samples and offer services like: credit, custom gear, drop offs, fittings, etc.

hope that helps a bit,
Carlos

[CEM]

tbeer-
I think you may be on to something. I have had several businesses - 1 was retail. Retail is very capital intensive and you have little ability to bootstrap in the startup process. However if you think you have your finger on the pulse of trends that are desireable in the college set what about developing a whole new marketing and distribution channel for college buyers. Almost like tupperware parties or home jewelry shows but for clothing etc. You could actually setup a whole network of distributors at different colleges to give you traction in a broad space but with considerably less start up costs. Drop me a line if you would like to talk more about this, I might have some investment interest.
Chris

[pyanizjid]

First off, The idea is good!
But when you stating that these brands are small and not too well know, I started to think that you didn't do all that much research before you posted!!

Most of the brands on there are HUGE urban street brands!
Just because the brands are not too popular where you live, does not mean they are small!

I live in L.A. and I see thise brands all over the place!

To add... Some of those companies are multi-million dollar companies!