I have for a while had this idea in the back of my head that has really crescendoed lately into a passion to start a business here to meet a local need.

My wife is a teacher and there are no good teacher stores in the immediate area, and the ones outside this area are always covered up.  It seems to me like starting a simple retail business of this type would be relatively easy and painless to accomplish.   Logo idea:



What do you peeps think about this endeavor?  I suppose this is all that would be needed to really get it going.  Tell me if I am missing something:

1.  Present a really good business plan to a local bank for really just what would be needed to get an initial inventory and sustain the business while building the customer base.  I can really use some talents such as go ahead and create the website and things and using my accounting education to wow them.
2.  Quit my job and leap out on faith <shudder> - the hardest part - and start it up

Cater to the home school crowd as well...

how do the teachers get their stuff now?

online?

Office Depot?

drive a long way?

Map it out see what you need to do and if everything falls into place go for it. I would proceed parttime or afterhours until I knew it would work but if you can hit that nitch then you just might make it and make it well.  Just make sure that it IS needed locally so that your potential clientle isnt ordering off the internet already.

I suggest not showing anyone your logo or name idea until after you get it trademarked ... Wouldn't want anyone to steal it.

And if you need logo help let me know.

Beetle,

I think it is an awesome idea!  Prepare yourself for getting turned down by every bank you can think of.  NONE will loan money on a new/startup business, especially now that credit is getting tight.

You may have to pull some equity out of your house or borrow from family or CC's.  Put together a business plan and have a business consultant that you trust work with you on it.  It will open your eyes to many things you might not have considered.

Best of luck.

Cool Avatar.

My advice would be to save some money as well.  Don't go to the bank broke.

Make sure you have plenty of cash and/or credit availale.  That is what kill most small businesses.

Banks will only loan you money when you don't need it.

Quoted: how do the teachers get their stuff now? online? Office Depot? drive a long way?

well, distance is the main thing.  The closest teacher-specific store is about a twenty minute drive and in a bad part of town.  The next two closest are in great parts of town but no where less than 25-35 minute drives.  

We have like 6 public schools ALONE (not counting private schools and home schoolers) surrounding this area within a ten mile distance.  I know the demand would be here, it's just a matter of capturing the customers, and in a manner to sustain operations throughout the "off seasons".

Teacher stores are really needed because Office Depot -type places do not carry the specialty products.  Plus, it seems like teachers like to touch and see and feel the things that they are purchasing for their classrooms rather than purchasing them online.  And, they usually need things immediately and do not have time to wait on shipping.

what kind of marketing plan? product catalogs to the schools? or just drive by type?

Please keep in mind that what I'm about to tell you is strictly my opinions, but having been a small business partner then sole owner for the past 31 years, you'd have to be nuts to do what you're proposing.  With the proliferation of the office supply giants (like Staples and Office Max and the like) and their online presence and established product lines and distribution, you'd need something very unique and priced cheaper than them to succeed.

With an accounting education, you'd be much better off servicing the ignorant masses who have no friggin idea what they are doing when it comes to filing their taxes.

In the very largest part, small businesses fail because their owner/operators don't have any experience and/or are very undercapitalized. So unless you're sitting on a very large bag of money to bankroll your new business through the startup years and then the lean times which always follow, my recommendation is that you not do it.

You'll be happier and your body will be healthier (Ask me and my triple bypass how I know!) when you work for someone else and can leave the job at 5PM and not have to start again until 9AM tomorrow.  Owning your own business is a 24/7/365 venture. Pretty much until you die, retire, or go broke.

Remember, they didn't teach how to run your own successful startup business in Accounting 101 or Economics 101.  And Marketing and Management are for when you are on someone else's payroll. In your own business, you're always the last one to get paid, if at all.

Good luck!

Beetle,

I've run my own business for the last eight years.

If I had to do it all over again, I'd start working at WalMart.

Being your own boss is great.  Having suppliers owe you tens of thousands of dollars isn't.

Setting your own hours is awesome. Having those hours be 6AM to 8PM every day because you can do it better (and cheaper) than an employee isn't.

There's a reason most small business go belly-up within 5 years, and it has nothing to do with getting financing from a bank.  You WILL burn out.

ETA: The post above mine said it better than I could.  While it's not meant to discourage you from following your dreams, it IS meant as a reality check.

thanks Scoob and macman.  That was just a simple logo that I through together in paint in about five minutes.  I won't worry about it quite yet.

As far as marketing plan - you should see how teachers work.  I mean, it's a (majority) entire group of women , when something new comes be it a new program or teacher-related stuff, the news spreads like wildfire.  If the prices parallel the other teacher stores, with the closer vicinity and all at our advantage, there would be no reason for them to go elsewhere unless there is some bad PR or something.  Which, I have planned for as well - holding learning workshops, free store credit for certain credentials, etc.

its a good idea BB.  Try looking into grants.  Here in Oregon we have an economic development program geared at helping small businesses with start ups.  Its funded through Oregon Lottery dollars.  My advice to you is to start small and set concrete principals and stick to them [such as hours you're willing to work, mark up you're willing to accept, discounts you're willing to give.


The Tax right off would be tremendous.    You might see about starting it out of your home at first and bringing your product to the teachers too.  Might not work but it might.

Patty

Start small and use cash only.

That would make a good internet business that you could run from your garage.

Best of luck.

Business owner #4 saying don't do it. It's way to narrow of a business model.

thank you Joni and FMD.  Those are very sobering comments.  My in-laws are starting their own catering business too, but are of retirement age and have the money to blow if they lose it all .

Just to retort on your assertion about the market though, Joni, as I had mentioned earlier, really only specialty stores meet the teachers' supply needs around here.  I know because my wife is a kindergarten teacher and they really never, and I mean seriously never really get their materials online either.  Office Depot and such does not carry teacher-specific learning materials.  You pretty much have to get it locally or online.

Quoted: Business owner #4 saying don't do it. It's way to narrow of a business model.

Thats called a niche market and are very lucrative.

I think it's a decent idea, I also think the above two posts said it really well.
The best part of running your own business?  Setting your own hours, you can work any 18 hours a day you want.  (you think I'm kidding?)

Small retail stores SUCK.  They get crushed on pricing by the biggies (wally world, office depot, etc) and it's too limited of an area for people to drive to (you said it yourself) and your overhead is CRUSHING.  (go price what store footage costs, you'll be in awe)

But, there is this new invention called the world wide web.

Sarcasm aside, a niche product like yours could do really well on the web.  Web hosting, web site development, etc is all reasonably cheap (probably well under 10k) and allows you to not have a lease, etc.  

#1  BUSINESS PLAN, BUSINESS PLAN, BUSINESS PLAN.
And 1a.  cut your revenue in half and double your costs, if you can still make it, it's a possibility.  Think I'm kidding?  Ask around.

#2  See your accountant/tax advisor.  Figure out how to structure your business.

Screw loans, do it on your own money, a.  your monthly nut is less and b. you owe nobody.

#3, figure out how you are going to advertise, because advertising costs bucks but it's the only thing that makes money too.  (see #1 and 1a)

#4  marketing plan  (see #3)

Talk it over with your wife, takes money, takes ridiculous amounts of time.

Go for it
The stress is still there, ti's just different and there is nobody (boss) to strangle.

Quoted: Beetle, I've run my own business for the last eight years. If I had to do it all over again, I'd start working at WalMart. Being your own boss is great.  Having suppliers owe you tens of thousands of dollars isn't. Setting your own hours is awesome. Having those hours be 6AM to 8PM every day because you can do it better (and cheaper) than an employee isn't. There's a reason most small business go belly-up within 5 years, and it has nothing to do with getting financing from a bank.  You WILL burn out. ETA: The post above mine said it better than I could.  While it's not meant to discourage you from following your dreams, it IS meant as a reality check.

That sounds pretty spot on to what Ive read to in entrepreneur books.  Check out entrepreneur.com for advise

Quoted: Business owner #4 saying don't do it. It's way to narrow of a business model.

well, clearly I haven't posted the entire strategy.  Why do you say so?

Quoted: Beetle, I think it is an awesome idea!  Prepare yourself for getting turned down by every bank you can think of.  NONE will loan money on a new/startup business, especially now that credit is getting tight. You may have to pull some equity out of your house or borrow from family or CC's.  Put together a business plan and have a business consultant that you trust work with you on it.  It will open your eyes to many things you might not have considered. Best of luck. Cool Avatar.

Not true, if he's a gay black female with a disability. They'll throw money at him then.

I got a few questions for you.

How much money does the average teacher spend on supplies in a month?

With 6 public schools and how ever many homeschoolers, how many teachers are within a 15 minute drive?


How many of them will you be able to sell 100% of their supplies?


How will you let them know that you are now in business and can sell them what they need?


What are the margins of the products you are selling? Are you going to be price competitive?


All of those questions need to be answered before ANYONE can give you any advice.

Quoted: What are the margins of the products you are selling? Are you going to be price competitive?

That is actually the most important question.  Regarding customer base, I know how well the other teacher stores do, and how many (all) of the teachers in this area travel to them because there is no where closer to go.

Yeah, it's risky, but I do still think, having done the research, that it could be profitable.  It is meeting the needs in an almost stereotypically niche market.

Quoted: Quoted: What are the margins of the products you are selling? Are you going to be price competitive? That is actually the most important question.  Regarding customer base, I know how well the other teacher stores do, and how many (all) of the teachers in this area travel to them because there is no where closer to go. Yeah, it's risky, but I do still think, having done the research, that it could be profitable.  It is meeting the needs in an almost stereotypically niche market.

Is your location the only advantage you have?

How do you know those teachers don't drive by those stores on their way home?

Hell I can't get to the mall in 15 minutes from my office, and I live in a relatively small town.


I'm not knocking your idea, I just think that if those stores are already relatively established then those teachers might not just stop shopping there.

It might take more time than you think. You need something else to offer that those stores don't, like maybe delivery.

JMHO

I don't see how you could compete with the Internet and office supply chain stores.  Mom and pop retail seams like a hard row to hoe.  

-markl32, owner, Complete Network Care, Managed IT services.  

ETA; Most banks will want to see a significant personal investment before they give you a dime.  You will need to pull some cash from somewhere to kick it off.  

Quoted: Beetle, I've run my own business for the last eight years. If I had to do it all over again, I'd start working at WalMart. Being your own boss is great.  Having suppliers owe you tens of thousands of dollars isn't. Setting your own hours is awesome. Having those hours be 6AM to 8PM every day because you can do it better (and cheaper) than an employee isn't. There's a reason most small business go belly-up within 5 years, and it has nothing to do with getting financing from a bank.  You WILL burn out. ETA: The post above mine said it better than I could.  While it's not meant to discourage you from following your dreams, it IS meant as a reality check.

Yup 16 years as a gun smith and im shutting the shop down in a few monts. I have had enough!

Burning the candle at both ends sucks.. Im tired and want to spend time with the Fam. My kids need me more than the customer.

I was a teacher a couple of years ago, and your business may be a long shot.

IMO some of the problems are:

Teachers basically spend out of their own pocket for classroom items, so many do without, buy the bare minimum, share, or buy off the internet.  Many items are reuseable. Statistics I read somewhere were that a teacher spent $500 or so a year out of pocket for school supplies.  How much of that is reasonable to expect to come to your business?  How many teachers/schools are in your area and not closer to another Teachers store?

Product Exclusivity: Many of the items are targeted toward teachers and don't have mass appeal.

Superstores: Hard to beat their prices on basic supplies like pens, paper, pencils, etc.

Internet: buy cheaper have it mailed to you.

Maybe it is a good idea for your area and for you, maybe it isn't.  Look long and hard at it before you jump in.

Quoted: I got a few questions for you. How much money does the average teacher spend on supplies in a month? With 6 public schools and how ever many homeschoolers, how many teachers are within a 15 minute drive? How many of them will you be able to sell 100% of their supplies? How will you let them know that you are now in business and can sell them what they need? What are the margins of the products you are selling? Are you going to be price competitive? All of those questions need to be answered before ANYONE can give you any advice.

I think if the demand was there (or anywhere) every Office Depot-type store would have an entire department dedicated to teacher supplies.

They have the supply chain, the location, a brand name, etc.

It sounds like a good idea - but its hard to guess how much a niche market will make.

Make sure to cater to home schools, sunday schools, and people who want flash cards etc for their kids.

good luck!

PS - I own my own business, but I work from home and its just me - so no overhead - more of a freelancer.

Been thinking about this before I answer, something I don't usually do, but I understand the seriousness of your intent. First, the timing is good for you. No kids, both of you are young, and you have a very promising future. Teachers are a very fickle lot. They can be some of the most stupid educated people I've ever known. Also about 90% are women. There is a market for what you are suggesting. Timing must coincide with the school year and events. No school in summer - no market. Teachers and especially women teachers want convenience.

My thought would be to set up a virtual store specific to the grade level needs available to the market through school email accounts. Teacher email addresses are provided to parents. Package a tiered grade level accessory kit sopecific to subject matter as is taught by the school curriculum. Market the packages according to the grade level and subject matter of the teacher. Each teacher in Alabama receives $500 yearly for out of school purchases. They are provided a VISA card for this.

Example would be to set up a 9th grade history package specific to the state requirements. Do the same for PE. Same for first grade. Market the packages to the specific needs of the teacher based on curriculum. The items can be purchased wherever by you after order is sent. Offer high end and base packages. let the teacher customize what they want for what they teach. Ypu aren't selling the product as much as the convenience of them getting what they want when they want it with a minimal amount of inconvenience.

Your skill is not in the producing of a product but making it easily available based on the needs of the market.

Quoted: The more I think about it, the more I am think unless you have a strong sales presence online, it will never work. 6 target schools Figure 30 teachers each for 180 teachers If they spend $500 each that is $90,000 in potential sales. No way you could make it on that, even if you actually manage to get 100% of the teachers as customers and get 100% of thier sales.

BINGO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
gotta be nationwide/regional wide
What's better, having to drive or having it delivered to your door?
That's right, w.w.w.

Didn't bother to read all the earlier posts Beetle, but:

Get a mentor.We contacted the SBA and they hooked us up.
She walked us through writing a proper business plan, demographic research, etc
She spent a LOT of time helping us: truly a good human being.
When we presented our plan for a SBA loan, we were told that it was one of the best presentations that they had seen.
And that, unfortunately, they had already given away all their money!
(They work on Fed fiscal year, (Oct 1)  and were in spring.

So, we sold what we could, begged and borrowed, and hocked everything else.
I kept my gov job, and side work.
17 years this past month.
Rewarding, but at other times, a COMPLETE pain in the ass. Employee problems /drama are never ending.

Also, did it in wife's name (easier for a female to get $$$)

Best of luck, Dave

Quoted: Been thinking about this before I answer, something I don't usually do, but I understand the seriousness of your intent. First, the timing is good for you. No kids, both of you are young, and you have a very promising future. Teachers are a very fickle lot. They can be some of the most stupid educated people I've ever known. Also about 90% are women. There is a market for what you are suggesting. Timing must coincide with the school year and events. No school in summer - no market. Teachers and especially women teachers want convenience. My thought would be to set up a virtual store specific to the grade level needs available to the market through school email accounts. Teacher email addresses are provided to parents. Package a tiered grade level accessory kit sopecific to subject matter as is taught by the school curriculum. Market the packages according to the grade level and subject matter of the teacher. Each teacher in Alabama receives $500 yearly for out of school purchases. They are provided a VISA card for this. Example would be to set up a 9th grade history package specific to the state requirements. Do the same for PE. Same for first grade. Market the packages to the specific needs of the teacher based on curriculum. The items can be purchased wherever by you after order is sent. Offer high end and base packages. let the teacher customize what they want for what they teach. Ypu aren't selling the product as much as the convenience of them getting what they want when they want it with a minimal amount of inconvenience. Your skill is not in the producing of a product but making it easily available based on the needs of the market.

Thanks, Axl, for your considerations and advice.  That is a good idea, as well as DV8's which he sent in an IM.  I guess the obstacle there would be getting the word to the teachers, and through the administration.  

The warnings are beginning to sink in from all of you, and I am wondering how I could get a copy of the other two stores' financial statements, even though they aren't public companies.  

It also scares me for my inlaws, who are starting a business in a similarily remote niche but in a much more remote location for these sorts of things.  For what it's worth, the three teacher stores are located in this map (the fourth is actually a misrepresentation of one of the others):

Quoted: #3, figure out how you are going to advertise, because advertising costs bucks but it's the only thing that makes money too.  (see #1 and 1a) #4  marketing plan  (see #3)

+1  Most small businesses severely underestimate the amount of spend they should allocate toward Marketing and Advertising.