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Opportunity knocking or sign from hell?


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kidtransam 
Copper - Posts: 99
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Joined: November 08, 2002
Location: United States
Posted: November 03, 2004 at 9:14 PM / IP Logged  
We have always wanted to get an actual store front.
I live in a small city about 15 mins from Jackson, TN. They have a Circuit City, Best Buy and several audio shops..and there is 1 shop in my town..the funny thing is, within a few months..circuit and best buy will be the only 2 left..one by one they keep selling out or just closin shop. Some say that they are just burnt out..and some say theres not enough business. the ones in jackson already have closing dates..and the 1 in my town isnt far behind em..In a way I can see the bright light saying COME TOWARDS THE LIGHT..and on the other hand, well you know.
What do you guys think..could this be a perfect time to fire up a new shop..or am I just wishful thinkn?
With a torch and a big enough hammer...it WILL friggin fit!!
Alpine Guy 
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Joined: October 18, 2003
Location: Canada
Posted: November 03, 2004 at 10:00 PM / IP Logged  
I would tottaly research what there exact reasons for closeing, ask them what they would change if they had the chance to do it over again.
2003 Chevy Avalanche,Eclipse CD7000,Morel Elate 5,Adire Extremis,Alpine PDX-4.150, 15" TC-3000, 2 Alpine PDX-1.1000, 470Amp HO Alt.
kfr01 
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Joined: April 30, 2003
Posted: November 03, 2004 at 10:25 PM / IP Logged  
View resources at: http://www.sba.gov/
You'll need to do some market research, find a niche, and look very carefully at the financials. The people at the SBA can help you with all of this. Search for your local office and visit with them. They won't know anything specific about the car audio industry, but they'll be able to help you decide whether it is a wise investment and create your business plan. You'll also want to seek out a good CPA and attorney.
Personally, I would be extremly cautious right now about opening any brick and mortar car audio shop. You are not only competing with stores that will always beat you on cost, best buy, etc., but you can't touch the prices on the internet.
That said, if you can find a niche that neither the internet nor the low cost leaders in your area have (i.e. higher-end products, professional advice & installation, etc.) you can probably make a lot of money. The tough part will be determining whether the market for this niche in your area is large enough to earn the returns on investment you need.
Good luck
Maybe forbidden can weigh in here. He's owned a few stores.
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hightek 
Copper - Posts: 223
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Joined: July 26, 2004
Location: United States
Posted: November 04, 2004 at 12:06 AM / IP Logged  

what you may want to consider is asking them if they wanted to do like a partnership kind of deal. go in together. i'm sure with their knowledge they would probably do things differently and stuff.

just my two cents.

kfr01 
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Posted: November 04, 2004 at 12:10 AM / IP Logged  
I'd have a nice long talk with your attorney before considering a partnership. They sound great at the beginning but can sour fast.
New Project: 2003 Pathfinder
Francious70 
Silver - Posts: 629
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Joined: July 26, 2004
Location: United States
Posted: November 04, 2004 at 8:34 AM / IP Logged  
Hey kidtransam,
Do you live in Humboldt, TN?? I'm in business with some people down there (consumer finance) who may be able to help out.
Paul
kidtransam 
Copper - Posts: 99
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Joined: November 08, 2002
Location: United States
Posted: November 04, 2004 at 6:36 PM / IP Logged  
Francious70 wrote:
Hey kidtransam,
Do you live in Humboldt, TN?? I'm in business with some people down there (consumer finance) who may be able to help out.
Paul
Im about an hour from humboldt...i live in Henderson.
Installing is the easy part...its the business part i dont know crap about..thats why I havent already done it.
With a torch and a big enough hammer...it WILL friggin fit!!
jeffchilcott 
Platinum - Posts: 2,483
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Joined: April 11, 2002
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Posted: November 04, 2004 at 7:11 PM / IP Logged  
I have been going to college for a minor in bissiness management,   there is so much to consider, let alone the approx 30,000-50,000 investment just to get open and stay afloat for 6 months.   We have been considering opening for along time, and frankly im almost ready but it has been nearly 5 years in the planning.    Where is forbidden he could give good insight on this topic
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forbidden 
Platinum - Posts: 5,352
Platinum spaceThis member has made a donation to the12volt.com. Click here for more info.spaceThis member has been recognized as an authority in Mobile Audio and Video. Click here for more info.spacespace
Joined: November 01, 2003
Location: Alberta, Canada
Posted: November 04, 2004 at 8:16 PM / IP Logged  

Right here dude. Installing is not easy, your life depends on it if you are going to open your own business. Opening a business is not an easy thing to do, especially if you have little to no business experience. It takes huge coin to secure lines. You have to be in an area that has lines available. You may have to do a huge buy in to secure a line which may take dollars away from another line that you need. I had the opportunity to work in this industry for 8 years before I decided to open my own store, all the while I was paying attention to how business was done. If you have no experience on the sales side or business side, you are doomed for failure. I succeeded because I am an excellent customer service person, I know how to sell and I sure as hell know how to install.

Based on what I read and my knowledge, I personally would see this as an opportunity. If you have my kind of background you would probably do good as well. That said though, you are also going into a market that may have a very limited draw area for a very limited amount of product. I would want to know why exactly the big box guys are moving shop and I would not expect to hear the real reason anytime soon.

Top Secret, I can tell you but then my wife will kill me.
Veeslim 
Member - Posts: 8
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Joined: December 28, 2003
Location: United States
Posted: November 04, 2004 at 8:31 PM / IP Logged  

Man Henderson is a good market. I used to work for one of the stores you're talking about. (auto radio)  Nice market for a custom shop. Custom is something Best Buy & Jerkit City can't offer. Do your honework and godbless.

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