Quote:
Originally Posted by ninjavanish
I have to disagree with a lot of the people who claim that B&M's are dying.
It's easy to focus on the negative, without paying creedance to the success stories out there.
There is no doubt that times they are a'changin... laws, taxes, recession and perhaps simply a drop in the number of people smoking have all contributed to a downward trend over the past few years... but to simply say that B&M's are dying is quite the hyperbole.
Take a look at some of the bigger B&M's... Outlaw for instance. They were once small businesses. Outlaw has continued their GROWTH not only before but during the past few years. Granted if you talk to them they probably haven't grown as much since 2008... but growth is growth. There are numerous others who have used their cunning and smarts to outpace the downward trend, Outlaw is just one example.
As for opening a B&M yourself... In reading previous posts and what you have to say about it... I can tell you the biggest enemy in your endevour is going to be yourself. Here's what I mean:
To start, as others have noted, it's quite a large investment... if you can get independent financers to help you get up and running that would be an ideal situation... but this revolves back to you. You need to create a business plan and a concept to pitch to said financers. They aren't going to "give you" $500k just because you're a cool guy and you love cigars. They want to see a plan and how their investment is going to be returned.
Now, lets say for conversations sake that you're independently wealthy and/or financing is already taken care of. Small business requires a TON of diligence. It's not like opening the doors every morning and expecting people to come in and spend their hard earned moola. You have to continue planning even after the initial "opening" And all throughout the life of the business.
So again, pointing to the comment on where you said you have no idea where to start... I would recommend starting with a few books on how to be successful running a small business. Even if you're a great business mind it never hurts to buff up that knowledge. The main thing that I think many people struggle with in running cigar stores is the conecpt that it IS in fact a business. Yeah, it's probably one of the most AWESOME fun businesses you can get into... but it's still work. And a hell of a lot of it.
So here's my summary advice on where to start, get yourself some education on businesses, google how to draw up a business plan (even if you have financing in the bag, a well drawn out plan will give you direction when you don't know where to turn), try to determine the demographics of the area you're in, basically do a lot of research on the matter beforehand. Getting in touch with a few sales reps isn't a bad idea... but I'll tell you most of them are busy busy busy and if they have the time to talk, it will be short, so be prepared... have questions at the ready and don't waste their time.
Get involved with the local Chamber of Commerce. They are going to be an invaluable tool... you will want the people here to like you... a LOT. Talk to other small business owners in the area that run similar sized businesses to what you're thinking. I bet if you do a little digging they probably have a group or an organization of small business owners who can help you lobby in the City Council for zoning, licenses, etc. And they probably also can give you a lot of valuable information on trends in the area. What sort of unexpected expenses they incur. Stuff like that that goes unforeseen until after the fact.
Alright, I think that's enough for now.
Back to work! And good luck!
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Hands down this is best advice you can get.
I don't know about cigar businesses but I do know about small businesses
Contact the SBA for help with Business Plans, your local Chamber of Commerce usually has a SBA rep that they deal with also.
Lenders won't even talk to you regarding a biz loan unless you have a solid Business plan typically. There are exceptions, but the norm is that plan in your hand everywhere you go.