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Business type: Hookah lounge offering many other products commonly found in tobacco supply stores. The lounge will have everything most lounges offer...
AND MUCH MUCH MORE
Typical hookah shop:
Several average couches
Old tv's
Hookahs
Drinks
Bathroom
Decent sound system
Ok, so what would be different about my hookah lounge?
Quality seating:
1 sectional wrap around couch, several smaller couches/love seats, and chairs to accommodate smaller groups. Encouraging socialization and gathering of groups, both large and small. The perfect place for after work, school, your next business meeting or birthday party.
New tv's with more uses:
2 flat screen tv's on either side of the lounge near seating. I currently have the best xbox and playstation money can buy, they would be going in the store. (Whether or not I would charge to use it I'm not certain. Probably not, with the option to add to a fund for new games, or perhaps a small fee to go towards new games and batteries for controllers.)
Every sport, every game, every night.
The teams here aren't doing the best right now. We have one of each, football, baseball, hockey. Baseball is by far the most popular sport in the area right now though with hopes of returning to the series after quite the upset a few years ago. (The Rays) Regardless of how well we're doing, we stay true to our teams and people gather regularly to watch the games. What better place than a hookah bar when all the sports bars are packed. MMA is definitely a top contender with baseball. That being said I'd promote the most popular games and fights to get people into the store and coming back every week.
Pool table now, another one later?
No hookah lounge has this option. While I understand that a lounge is a place to relax, there is no reason why you couldn't have a separate area (a few high chairs and tables) within viewing distance of the tv's to keep your eye on the games. I would commission my dad (An artist who can bring to reality anything I envision) make a nice table with a cage to secure the hookah to (Since people would be standing rather than sitting) (Ensuring the hookah could never fall unless the cage were unlocked) I know that it would constantly be in use. All it takes is a couple, whether it be two friends, or a date, and the game is on. You're having fun, ordering more hookah, buying more games of pool, drinks, maybe some food, and having an overall great time.
The pool table will also be a direct source of income that in time will pay for itself.
Art: No one knows what it means, but it's provocative. It get's the people goin!
Art is a very lucrative business. The problem is finding a buyer. What better way to do that than to have your art serve two purposes. Minimal pieces, strategically placed that act as decor, and inventory. Whats great about this is that in many stores there are often time dead spaces. Or as I see it, space waiting to be resurrected. Putting too much inventory would be overwhelming and make it harder to have someone focus on a particular product that sells well. Whereas placing a piece of art, whether it be a painting, or sculpture does one of two things. Immediately draws the customer because of their interest in the art. They will look at it, and possibly be interested in buying it. Or, they will look directly next to it after they have had their fill to find a great selection of products to meet all of their needs. Whats great about the art is it would be of 0 cost to keep in my store. I have many friends and family members who are artists and would love to have a place to put their pieces up for sale, but haven't taken the initiative. I would provide the place, and take a commission for selling their items.
Music: Simple, but effective.
We love to hear sounds, we link them with memories and therefor music is one of our most precious assets as humans. It isn't in the budget for start up, but in the future I would like to get a jukebox for the store so people can choose a song or two. I've got ideas on how to make it a profitable. Tokens, 1 song per token. You receive 2 complimentary tokens with each hookah you buy, and afterwards tokens are available next to the jukebox for a quarter a piece. Like I said, it would be after the initial start-up. But, this is yet another one of my ideas to promote synergy in my store and keep people coming back.
I've drawn them in, now how do I make more money?
Most of the things I've described above will be a hook, complete with a nice fat piece of squid (The best bait). A reason why people will come to my hookah shop, rather than a few current hole in the wall hookah shops. If you haven't figured it out so far I plan to put them out of business. I have no doubt that from 12-3 each weekday young people will poor in. Why? It's when school ends. Now I'm not saying that I will be marketing to children, by no means. It is wrong and will not be tolerated in my store. There will be a strict I.D. policy to ensure that the doors stay open and no fines are assessed. The kids I'm talking about are anywhere from 18-25. Seniors in high school and maybe a couple of juniors. The amount of college campuses in this area is ridiculous. USF has a campus locally as well as SPC a local community college with several campuses in the area. I have no doubt I will have a steady flow of customers from this time till later in the evening. Even on weekdays. While I would love for people to stay in my store, relax, and have a good time, appealing to someone looking for a particular product is just as profitable. Below is a list of products that will be available in the store.
Merchandise
First and for most will be tobacco and tobacco related products. Including:
Hookahs, water pipes, cigarettes, shisha (Hookah tobacco), a small humidor with fine cigars, herbs and incense, cleaning supplies from soaking solutions to pipe cleaners, grinders, papers, cigar wraps, and lighters to meet every budget.
Other products include:
Art on consignment
Current skate and Rastafarian apparel including shirts hats and beanies
A product known as lamp berger I have yet to see locally. My step dad owns a cigar store and they are very popular with smokers. A much better alternative to incense in my opinion. If you can afford it that is. You can find information on it with a simple google search and see why it is so popular with smokers, but can be appreciated by all.
CD's from established and local artists looking to get their names out.
Beverage cooler stocked with popular brands. Fiji water, coca cola, red bull, etc.
Storage jars and humidors
Small food items such as chips, candy bars, nuts, and other snack foods.
Coffee and Espresso
I have thoughts of making hot food available too. Hot dogs, hamburgers, fries. Simple things, and perhaps more later on.
I haven't checked into ticketmaster much but it is a thought.
Target start up date: March 1, 2012
Initial start up:
35-50k
What I am seeking:
1 or 2 investors with a combined or singular capital equal to or in excess of 12-15k
If I can find one person to invest 12-15k, I will match there investment initially. I have faith my grandfather will be willing to invest, and more than likely gift it to me once I present my business plan to him Thanksgiving day.
At that point I would take the capital and get a cash secured loan to increase the funds by 50-100%, I'm not sure which yet.
The working budget would be 35-50k
I've put a lot of consideration into the fact that the lower the initial start up, the faster the return would be for myself, and more importantly the investor/s who put their faith into me. That being said, it would also mean that expansion could take place quicker as well.
Projected monthly income: 7500-10000 initially
Once established I have no doubt the number could be in excess of 20000 each month with the proper marketing. Which I've thought through thoroughly and am ready to initiate by February.
Return on investment: Negotiable. I'm offering 50% return within 6 months from the days open. But am willing to increase the percentage as funding or time allotted to pay off the loan increase.
Profit sharing: Negotiable percentage for the first year. Renegotiation can take place at that time.
Co-ownership: Non negotiable
The final piece of the puzzle; Why the picture is so beautiful.
The location I have chosen is located on a road that receives in excess of 35000 passerby's each day. Conveniently located next to a major exit off highway 275. It is among the top ten percentile of the most commuted roads in the county. Someone holding a sign on each side of the street will surely be one of my most cost effective forms of advertisement.
Additionally, the lease I've found includes up to 6 months in rent free. Whether or not that is deducted from the annual price per square foot or not I am not sure. I'm expecting a call back to set up a meeting with the real estate agent responsible for the property tomorrow afternoon to work out more of the specifics.
I've come to the point where my post has become too long. I hope this doesn't detour people from reading this in it's entirety. But if that is the case then you are probably not the person I am looking for. If you have read this far I am truly grateful that you have taken the time to listen, and hope that you will give my start up some consideration.
Thankyou
-Devin
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