Any tips or suggestions for opening a store?

[Scented]

Hi guys, I am new to all of this candle making. I have a question. If I just make candles and sell them as a hobby, out of my home. I don't need to worry about taxes and business related BS. Is that correct?..Thank you..wish luck...I always have loved candles...

Wrong, you do. You owe your state's income taxes and still need to file taxes too.

[sockmonkey]

I have no idea how much income you generate from doing fundraisers and craftshows, (and I'm not asking), but the thing about doing craft shows is that people go to them for the variety of exhibitors there, so because you see a lot of business at a craft show doesn't mean those same people will be stampeding in your door and buying your product.

As for fundraisers, those can hurt you if you have a retail store. Many people will buy from a kid to help a school instead of buying directly from a retailer; and parents will load up on fundraiser items, meaning they won't need to buy from you.

I know you will be earning money by doing the fundraisers, but you'll be earning less than if you sold them retail, plus you still have to pay your rent and all of the other expenses associated with brick & mortar shop.

Another thing, once you open your doors you will be collecting, reporting, and paying taxes on a regular basis (something many crafters never do on the craft show circuit).

Advertising is another area that inexperienced shop owners fall short on. Advertising is a must and it is expensive to do on a regular basis.

Few independent candle/b&b shops can keep the doors open by selling only their handmade goods. It's important to find some other brand name items to market along with your stuff. Sometimes that's the only thing that will lure a person to your shop to even try your handmade products.

Networking among other businesses and professional groups in your area can also be beneficial. Some of them have fees associated with them, so that's another cost to include in your plans.

I don't know if these have been mentioned before, but here are a few other things to look into:

Any type of licenses or permits you need from your town to conduct business

or place signage on your building.

The cost of signage (get several estimates, this can be quite expensive).

The cost for any props or displays you will need for your store.

The cost for an accountant (very important for someone starting up a business who doesn't know the ins and outs for deductions, etc.).

Setting up business banking accounts. Some wholesalers require company credit cards or company checks to purchase products, and may require them as ID's to get into industry trade shows.

If you will process credit cards, you will need a terminal as well as a processing company, which may or may not be your bank. Check around fees vary from place to place.

Utility deposits. You mentioned something about "transferring" utilities. I guess you're aware that most utilities will require a deposit. Those can really add up.

Utility Costs. Have you checked to see what the average bills were for the previous tennant? That may help you gauge how much to allow for your payments.

[David Fields]

Sockmonkey has it right. Expenses just to open your doors for business are horrible. We were out 20K before getting the first customer to walk in the door. Sockmonkey reminded me of a few other things to consider. Don't know where you are, but here in Texas you need to be zoned for commercial. Lead times for sign erection can be a problem. Any electrical issues? Like for sign? Fire dept regs? Paint, floor coverings, display equipment? Credit card processing is initially expensive but necessary. They are like cell phone service; be careful who you sign with. They usually have two year contracts. Go with a primary processor only!!!! Don't go with whomever your bank recommends necessarily. Primary processor only!

[Meridith]

Besides following signage codes, our shop is in a historical bldg. which also dictates to us what type and size of sign we are allowed to display. And because of the way this building was built, I can't erect a sign that stands out from the wall and can be seen on both sides. This is something that never dawned on me to consider before hand. Aw well, live and learn.

My original intention with my store was just for use as a work shop - no retail store front. But it grew into that and the more it grew, the more I came to realize what it was going to need just to open the doors to that retail store front. For one, I found that displays for a booth are different than what you will want to do in your store. And that was more money up front before I even made my first store sale. Not to mention all the other costs previously mentioned in this thread.

[cbv1]

I was searching this site for information about finding a store front to rent. How do you find a good location etc? I was dreaming about someday having my own store front and then I came upon this thread and boy did my bubble burst! The information in here is great, and getting this from people with first hand experience is priceless. I am still dreaming though... not sure if it will ever become a reality!

[sockmonkey]

On no! No one is trying to burst anyone's bubble. We're just trying to make sure a person considering opening up a shop goes into it with their head on straight and eyes wide open.

Some things that I found important when considering a storefront include:

The visibility of the space. Is it set back or hidden by trees so that it makes it difficult for someone to find it?

The amount of parking--is it off street, or will people have to scramble to find a space, in which case that can sometimes be a detriment.

The amount of foot traffic in the area.

The type of other shops in the area. If your shop is next to the welfare office, for example, sales may not be so brisk.

The amount of space--will it be adequate for your needs?

You can contact your state's department of transportation to get statistics on the amount of vehicular traffic that travels the road where the storefront is located, to give you an idea of the potential amount of exposure the place will have.

Check out realtor listings on the internet for commercial property. It can be a great tool because it saves you a lot of driving and leg work and provides pictures and most of the details you would need to know about a property. They usually list properties that are for sale, but sometimes you can find some for rent. Even when they are listed for sale, they are often still for rent--especially if they've been sitting for a while.

[awickedscent]

I have to disagree with this. Our place is in a very high foot traffic area and our rent is about 50% less then other places that are around us. the owner of the building is mega rich and just wanted nice people in the space that were going to take care of it. He owns a winery and also lives on the top floor of the building. Now we just heard that the biggest gift shop in our area is closing and they had the second largest selection of candles besides us. so good news for us. Sean Penn was in our store the other day as well as Gus Van Saint, pretty cool since they were shooting the movie around the corenr. I just need to remember to keep a camera handy but dont know if thye would like that. But some big people did not care that we took pictures of them in our store. So it really depends, our store is doing well. even though I work a full time job the store has been beneficial for us and I havent seen sales decline yet.

There's nothing posted I would disagree with. Having your own store front is TOUGH!! KJohnson, you said your rent would be cheap. Cheap in business lease terms translates into "bad location, low traffic". If so, don't do it. Either will kill your business. A candle store must have traffic. We had a store for three years, closed it after learning a lot and opened up another one. Costs are double that of the first, but sales are four to five times greater. We are in our third year at our new location and make a nice living. After location and traffic flow, I would say sell more than just candles. Good luck.

[cbv1]

Thank you! I will keep my dream alive for now!!

I work a full time job in software technical support and boy am I burnt out. I have raised kids, worked in banks, worked in software support and training and now at 53, soon to be 54, I want to see my dream realized before I am planted 6 feet under!

Right now I can't devote as much time to my soap and b&b products as I would like too. My real job sucks all the life out of me! But I keep plugging along. I have some of my products in salons and gift shops. I don't do too much internet sales yet but my website hasn't been up that long. I am the type of person that has to dream, then start to actually visualize, then research, then implement, so I am still in the dream stage! :rolleyes2

[Dolphin146]

Hi I would say Don't do it. I opened a store in a great location. But in a poor to middle class area. Well guess what. I have many great items and still after spending 3, 000 on advertising and free samples ect people are still not buying. I sell more on line than I do in my store. People today just don't have the money to be spending. With the ecomany as bad as it is I would think twice about it. Even with a nice shop in a good location you still may not get the business that you think you will. Just some friendly advice. Regina

[KJohnson]

Well just a little update.....I had forgotten all about this thread.....I did go ahead and open my store My first day of business was July 5th 2007. I have to say I am doing well. I also just moved to a bigger store on the same street just across the street and up 5 doors...and I am busier then ever. But I am also sharing a store with a friend who has opned a western store. Its huge!! Its the best of both worlds and we are open 6 days a week.

Keep dreaming....I never thought I would be this far.

Kris

[Di_in_AZ]

Congrats Kris, I am glad you went for it and had success I wish you many more years.

[Sara]

Wow, that is fantastic. Glad to hear things are doing well. Any advice? Thoughts? Updates and what went well, what didnt?

[cbv1]

What a wonderful update Kris! Congratulations!! It sounds like things are going well for you and I wish you continued success!

I will keep dreaming... and who knows? For the time being though I did something today that hopefully will start me on my path to my dream. I stopped into a local Antique Mall today. I hadn't been there in a year or so. I have just be so busy with my full time job and then making soap etc on the weekends. Well, they were changing things around and I noticed they had some signs up for displays for rent. I started a conversation with the owner and asked how much the rent was. $50 a month for a the smaller display and $75 a month for the larger. Both had a light in them with about 7 shelves. I asked her if she only wanted antiques and she said no, so I told her about my handmade soap. She said she would LOVE to have soap in the store and said if I was interested the display right by the front door was available. OMG! I jumped on that and signed a lease for 6 months, $50 a month. They take care of the sales and tax and send me a check each month for the product they sell for me. I was so excited!! So, the display will be ready for me to fill on March 1st. It isn't as good as my own store but I thought it was a good start!!

[AntoniasCreations]

What a wonderful update Kris! Congratulations!! It sounds like things are going well for you and I wish you continued success!

I will keep dreaming... and who knows? For the time being though I did something today that hopefully will start me on my path to my dream. I stopped into a local Antique Mall today. I hadn't been there in a year or so. I have just be so busy with my full time job and then making soap etc on the weekends. Well, they were changing things around and I noticed they had some signs up for displays for rent. I started a conversation with the owner and asked how much the rent was. $50 a month for a the smaller display and $75 a month for the larger. Both had a light in them with about 7 shelves. I asked her if she only wanted antiques and she said no, so I told her about my handmade soap. She said she would LOVE to have soap in the store and said if I was interested the display right by the front door was available. OMG! I jumped on that and signed a lease for 6 months, $50 a month. They take care of the sales and tax and send me a check each month for the product they sell for me. I was so excited!! So, the display will be ready for me to fill on March 1st. It isn't as good as my own store but I thought it was a good start!!

Wow that is great!!! In a way it is even better than just jumping into having a store, look at it as a test drive. I wish you the best of luck and Congratulations.

ps by the way could you point me in a good direction for leaning how to make soap, thanks.

[David Fields]

I agree with everything twocentsworth said. We have had a store for six years now. First one never made a profit, closed after three years. This one broke even the first year, nice profit the second and outstanding the third. We learned our lessons after the first. The second cost us $20K before we opened the door. But now, we would not take for it. So, to add to twocentsworth's list... deep pockets. Don't plan on making a profit the first year. Good luck and may God bless.

[cbv1]

ps by the way could you point me in a good direction for leaning how to make soap, thanks.

I read a lot of books before I even attempted to make my first batch of soap. I found the site below to be helpful when I was first learning how to make liquid soap. They also have a section on Cold Process Soap Making http://candleandsoap.about.com/od/coldprocesssoapmaking/ss/sscpsoap.htm

I read The Natural Soap Book and The Soapmaker's Companion both by Susan Miller Cavitch. I also read The Soap Book by Sandy Maine. I think they are all excellent books. I am the type of person that has to read and study up on something before I even attempt to create something new. I wanted to make sure I had all the information I need to be safe first. I didn't want to have a horrible experience because I wasn't prepared. The Soap Book by Sandy Maine has some basic recipes in it. You can also find recipes on this Forum under the B & B Recipe section. You may also find tutorials on here. I know I found one a long time ago when I learned how to do the swirl in the pot method when I wanted to make swirls in my soap that were a different color. The tutorial I found was great and my first swirl turned out perfect. Use the 'Search This Thread' or Forum option on this board and you will be surprised as to how much information is out here. Here is a link to Robin's tutorial for making CP soap that was also out here http://watersgulch.com/howtocp.shtml

[cbv1]

I agree with everything twocentsworth said. We have had a store for six years now. First one never made a profit, closed after three years. This one broke even the first year, nice profit the second and outstanding the third. We learned our lessons after the first. The second cost us $20K before we opened the door. But now, we would not take for it. So, to add to twocentsworth's list... deep pockets. Don't plan on making a profit the first year. Good luck and may God bless.

Sounds like you are doing well. Good for you and I wish you continued success!!