So, we're still pulling the numbers together...

[Sum Dum Gai]

But, I think we're doing it. Oh, uh, opening a game store for anyone that missed my older thread on YM and is wondering what the hell I'm babbling about.

At this point I'm about 99% sure I won't be able to find good enough statistics on games sales to put together a business plan that a bank would lend on. I'm also about 99% sure from the resources I can get (sales figures from a couple stores in similar sized areas) that we won't lose money doing this here, and that we can afford to open without a loan anyway.

I'm currently equal parts excited and terrified, but we're pretty sure at this point that we're going for it.

[Deleted]

Sounds like you are pretty sure that you are 99% unsure about everything about it! Good luck!

[Sum Dum Gai]

Well, we haven't committed to anything yet (lease, inventory order, etc), but we've decided to go for it... if that makes any sense.

The last chance to back out will be coming up soon since we're signing up for GAMA and joining the mentor program. Basically an existing store owner answers your questions and helps you through the process of opening your own store. I doubt that whoever our mentor is will be that focused on talking us out of it... but it could happen.

After that it's all the fun stuff, signing a lease, getting fixtures, and ordering inventory. Once we do that the die is cast, and it'll either be the most fun I've ever had losing tens of thousands of dollars, or we'll have created a viable business.

[souldoubt]

So you can't put together a business plan to get a bank loan but you assume you'll be okay looking at similar stores in different areas...doesn't quite make sense to me. Regardless good luck.

[Sum Dum Gai]

So you can't put together a business plan to get a bank loan but you assume you'll be okay looking at similar stores in different areas...doesn't quite make sense to me.

I can't find hardly any numbers that are put together by independent agencies. Census and consumer spending numbers don't track game sales. Well, that's not totally true, but they lump them all in one big category. Video game sales dwarf board game, role playing game, mini game, etc., sales. So the numbers you can find aren't all that useful. There are table top game industry associations, but they don't track sales figures either.

I have found a couple of store owners that are willing to share their sales data with me, but I doubt a bank loan officer is willing to take their word for it. I would basically go in with a plan that says as long as my sales are roughly equal to John Smith's sales, and he didn't lie to me about his sales to begin with, I'll make money. I wouldn't lend on that... unless I really really trusted John Smith.

[Sum Dum Gai]

What does your timeline look like?

Currently, we're thinking we'd open in a little under one year. April/May of 2013.

[Firebird]

Good luck and have fun.

[busymom]

Dark, if I didn't mention it on your previous thread, the game store in our town would offer to be hired out at company events evenings for "Vegas Night". Their employees would dress up in white shirts, black pants & bow ties, and work as "dealers" for blackjack & other table games. The chips you won during the night could be used to bid for prizes. The place I was working at, they had "Vegas Night" for a few years, and we really looked forward to our Christmas party. (We could play the tables, and not lose any real money.)

If your game store needs extra income, this might be something you could do.

[thyme4change]

aw - you didn't let me do your financials.

[Deleted]

May 29, 2012 15:14:12 GMT -5 thyme4change said:

aw - you didn't let me do your financials.

You are not an accountant. ;D

[thyme4change]

No, I'm a forecasting and budgeting master, with experience in doing 5 year projections and new project ROIs. I'm ideal for doing projected financials.

[Deleted]

May 29, 2012 15:17:23 GMT -5 thyme4change said:

No, I'm a forecasting and budgeting master, with experience in doing 5 year projections and new project ROIs. I'm ideal for doing projected financials.

Please post 3 references.

[Sum Dum Gai]

aw - you didn't let me do your financials.

We're still working on that part of it. We wanted to gather as much information as we could and make sure that the numbers made sense to us before we shared them with anyone. I still have my old thread bookmarked and will be taking you up on your offer to do the financials, and Lena (I think it was Lena) up on her offer to review the business plan when it's done.

[Works4me]

Have you checked the lending/financing sites online?

Always best to use someone else's money while creating a viable business and better if you are, um, er ... you know.

ETA - don't forget exit strategies when writing your business plan.

[thyme4change]

Please post 3 references.

You mean, besides Loop and Dark?

[Works4me]

Thyme - he didn't say what type of reference ...

[Sum Dum Gai]

Have you checked the lending/financing sites online?

Nope. The goal is to start with our money, so if we go under we don't have debts to pay off.

ETA - don't forget exit strategies when writing your business plan.

And I suppose you're going to tell me that closing the store and keeping all the inventory for myself isn't a valid one?

[midjd]

It was Milee who wanted to review your business plan.

[Colleenz]

Please post 3 references.

DebMD
MuscleUp
BobRoss

But seriously, as long as you use Loony's accounting method you cannot fail.

[Deleted]

May 29, 2012 15:48:16 GMT -5 Colleenz said:

Please post 3 references.

DebMD
MuscleUp
BobRoss

But seriously, as long as you use Loony's accounting method you cannot fail.

yes, supplementing your business with your personal savings while not taking a salary is a perfect business solution.

[Sum Dum Gai]

Dark, one thing I would do is call a "business broker" ( they're around ) and ask if they have any "game stores" for sale. Ask them if they are profitable, how much the owner wants for the inventory, what kind of inventory is there, etc. If you don't have a good idea of whether these places stay open or not, you guys could lose your shirts. Even if the business is located in a different part of the country, I'd just pretend that I was moving there. When I was looking at laundromats to buy, I had to sign a confidentiality agreement, but I could still get the (blue sky included ) figures. Just another angle to consider.

I like it. Thanks for the tip.

[Firebird]

Message deleted by Firebird.

Whoops, Firebird needs to learn to read.

[Deleted]

Dark, go reread Loony's threads. She started without a business plan and is having problems without an exit strategy.

I am just a teacher, but I think this will give you a lot of fun and take a lot of money that you may/may not have to lose.

But Good Luck! I think you want to do it, and that may (only may) help you succeed.

[Sum Dum Gai]

She started without a business plan and is having problems without an exit strategy.

We're already factoring in a couple exit strategies right now, but I have no idea how realistic they actually are.

The exit strategy if things go right is to sell the business in about 8-10 years when my kids go to college. We aren't sure whether or not we'll stay in the area once they're out of the house.

The exit strategy if the business looks like it's not working in order are, transition to an online store (basically keep the inventory, but cut out the vast majority of the overhead), sell the business (if it's making some money but not enough for us it should sell for at least the inventory cost and a little more), wholesale the inventory as one huge lot to another store or online seller (ditch the overhead, break even on the inventory or as close to it as we can, and go out of business), or have a going out of business sale (mark everything 50% off to clear out as much as we can, wholesale/online sell/keep whatever is left, and go out of business).

I don't really mind losing the money if it doesn't work out, I just don't want to get stuck with a ton of debt that we're still paying off for years afterward.

[The J]

The more important part of the exit strategy is the determination of WHEN to exit, not how you're going to do it.

[Sum Dum Gai]

The more important part of the exit strategy is the determination of WHEN to exit, not how you're going to do it.

I almost mentioned that in my post. Exit strategies are easy, it's figuring out the triggers and thresholds. If things work out and we're making enough to get by, we do that for a while and sell the business when the kids go to college. OK, that one is easy.

If we're making some money, but not enough to get by, I don't know how long we try to grow the store sales before we look at transitioning to online only or selling the business.

If we're losing money hand over fist, I also don't know how long we try to grow sales before we look at going out of business.

[midjd]

I think the exit timing is going to be the most important part - and having it in writing well before you launch.

It makes sense that once things are underway, it would be easy to say "just a few more months" or "if we just wait til after Christmas/summer vacation it will turn around" (and honestly it kind of sounds like that's the situation in which Tloony has found herself). Seems like knowing if you've lost X dollars by Y date (or haven't made X dollars by Y date) you're out would help you stay objective.

FWIW, if attitude is a determining factor in success, you've got it.

[Works4me]

Dark - Can't you indemnify against debt/loss by incorporating? And don't forget to use Doxie math!

Hopefully, in 10 years you will be selling off a huge chain with franchisees left and right!

[Deleted]

Good luck!

[Colleenz]

yes, supplementing your business with your personal savings while not taking a salary is a perfect business solution.

You do know this is their plan, right?

Dark - Can't you indemnify against debt/loss by incorporating?

I don't think so if you are using your own money to fund the business (i.e. no loans). It is kind of like trying to declare bankrupcy to yourself.