Another BIZ Idea

**bsg** · 07-19-2008 01:54 PM

I live in the Twin Cities and everyone knows that the Mall of America is located here. What I want to do is open up a real nice premium denim, sneaker, lifestyle boutique there. It would sell exclusive hard to get items like: Crooks and Castles, Nike, Adidas, Alife, The Hundreds, and many other hard to get lines. The traffic count at the MOA is incredible but rent is real expensive. My friend that works at Journeys there says that they average about $50K/week and $200K/month. We would have stuff that no one else carry. For example, Nike. All the stores like Finishline, Champs, Footlocker carries them. The difference between my store and theirs is that we get special colorways and makes that they don't get. Why would anyone want to buy something that millions of people can buy when you can get exclusive item at my store? These lines are very hard to get but I already have contacts with all the vendors and they already have pretty much given me a thumbs up. Let me know what you guys think?

**Lambo** · 07-19-2008 07:25 PM

its all about awareness....also you should know if there is a market for such items in your area....and the stores that are raking in 200K a month are already well and established....getting to that level will take some time, but it is definitley possible....just wathc your overhead costs

**bizdev** · 07-20-2008 12:40 AM

Originally Posted by bsg

My friend that works at Journeys there says that they average about $50K/week and $200K/month.

Don't let those numbers fool you. Sales is one thing, profit is quite another. Start writing your business plan so you can see what the start up and ongoing expenses are.

Once you factor in your expenses (which really add up fast) you're lucky if you reach break even in the first year. In addition to your start up costs, which for a store such as you describe, can be around $100,000, your monthly expenses will include very high rent and cam charges. Plus at the end of each year you are likely to be hit with a reconciliation charge (the common maintenance fees that invariably turn out to be higher than you've paid in). Inventory for specialty and name brand items will be very costly. Then you have payroll and payroll taxes and insurance which are all very costly. Utilities and advertising take a huge bite out of your budget. I could go on and on with the list of expenses, but you get the picture.

Write your business plan to see just how viable your idea is.

**Thecookieman** · 03-30-2009 10:34 PM

Originally Posted by bizdev

Don't let those numbers fool you. Sales is one thing, profit is quite another. Start writing your business plan so you can see what the start up and ongoing expenses are.

Once you factor in your expenses (which really add up fast) you're lucky if you reach break even in the first year. In addition to your start up costs, which for a store such as you describe, can be around $100,000, your monthly expenses will include very high rent and cam charges. Plus at the end of each year you are likely to be hit with a reconciliation charge (the common maintenance fees that invariably turn out to be higher than you've paid in). Inventory for specialty and name brand items will be very costly. Then you have payroll and payroll taxes and insurance which are all very costly. Utilities and advertising take a huge bite out of your budget. I could go on and on with the list of expenses, but you get the picture.

Write your business plan to see just how viable your idea is.

Thank you very much for the info. Im currently working on my business plan to open up a streetwear/skate fashion boutique here in Nyc. This post made things a bit clearer *thumbz up*

**bizdev** · 07-15-2009 03:12 PM

Originally Posted by Thecookieman

Thank you very much for the info. Im currently working on my business plan to open up a streetwear/skate fashion boutique here in Nyc. This post made things a bit clearer *thumbz up*

I just replied to your PM cookieman. Hope you see this, I know I'm late in replying. sorry!

**europeguy77** · 07-16-2009 10:45 PM

Manufacturers like Nike classify their customers in Tiers. The best Tier to reach is Tier Zero. These are the stores that have the hard to get Air Max 90's and so on.
Nike will never give you Tier Zero status. Tier Zero status is given to only very individual stores, that have built a reputation and "own scene" and credibility over years.
Tier Zero stores are never located in big Malls.
I don t think you have talked to those manufacturers nor did you properly research what that famous "hard to find" stuff even is!!!
You are getting into a whole subculture here, that has rules and codes.
You need to build credibility and you seem pretty far off of reaching that!
You ll just open another sneeker store that will close because you attract the same customers as Foot Locker and the likes.
Freaks that spend 600 bucks on a pair of sneekers are hard to find and even harder to keep!
Specially in the days of Ebay and all those products nowadays beeing sold in Japan and Asia. People there spend really crazy money.
So long. Just my input, nothing personal.
I prefer making big bucks over ebay with rare sneekers. specially since that is not taxed!

**inle** · 07-16-2009 11:45 PM

it seem that you might be serving a niche market..
will there be a market BIG enough or PROFITABLE enough to generate enough cashflow for your expenses?
is there an alternative to lower down your cost of operations or maybe start smaller to test out before going head-on?

**businesgoonline** · 07-19-2009 12:10 AM

I am pretty agree with europeguy, you should carry out some research or prepare a business plan, never try to listen the spectaculars from what others say.