Lots of interesting replies, but something tells me that this fantasy will never come to fruition.
Mannyrock
I have a great friend that opened a shop 25 years ago in Myerstown Pa and it is really a full time job even after all these years. Advertising and promoting is a big part. Inventory is another. You must know what is going to sell and what isn’t. That takes a while to figure out and that comes through trial and error and it constantly changes. Have a website and that also takes time and money. Establish hours and keep them posted on your site. When you change hours update your site. Your idea is great but it’s going to be a lot more work then just putting a sign up and putting inventory on the shelf. Good luck.
I would say that this tread is a must read....
Without knowing your age and level of education, (but...you've been thinking about this for 20 years) and your comment about changing your parents' view on trains, leads me to do some math, and respectfully ask some personal questions:
If you are 20+ years old, why is your parents' opinion about trains important to your business decision? Do you have a job now? Do you pay your own rent and utilities where you live? Do you have money ($250,000 or a credit line or a potential inheritance) put away for a venture like this? If not, where's the seed money coming from? A "Go Fund Me" ain't gonna cut it. Life throws curve balls all the time. If you had to choose between fixing the broken pipe in your store vs buying food for your kids, what would be your decision?
It's a nice romantic idea to have a train store. A store, mainly O scale, if not exclusive, that has coffee available for customers, who like to hang around and meet. Maybe have group workshop sessions/presentations. And, also have a big in-store layout. I think a lot of us would love that.
Then reality hits us. Startup capital, expenses, warranty repairs, accounting, online-presence a must, competitive pricing, low-income, long hours...
If your godfather is bankrolling this operation and is not too concerned about making money, as opposed to having fun, and he is an experienced retail person, you're going to be OK. If he is concerned about the money (i.e., it's necessary for his day to day living expenses, or retirement funds), this would be a bad idea. If he has no retail experience and you don't either, this would be a bad idea. These are the two key points, disposable funds that aren't needed for something else, and will not be a problem if the business doesn't work, and that one of you having significant retail experience. Absent these, I wouldn't even consider this a sensible path forward, as many have said. If it's his desire to spend his discretionary savings and income on supporting you, and this business is his way of doing so, godspeed.
Hi Cody,
Lots of good advice in the previous responses. I agree that opening a hobby shop requires a lot of upfront money. Here's a few ideas that aren't so capital intensive in no particular order.
Start an online only store. E-bay, Facebook Marketplace, etc.
Sell at train shows / swap meets. Here in So. California, we typically have at least two Great Train Shows each year. I've met several sellers who travel around the West Coast selling trains and accessories at various shows. They acquire inventory from people they meet at the shows who are looking to sell collections quickly.
Watching the OGR wanted-to-buy / wanted-to-sell forums will give you a pretty good idea of what people want and what they are willing to pay. I met a seller at a train show who inherited his brother's extensive train collection. Unfortunately, he had an over inflated idea of the value of those trains. I rarely saw anyone buying anything from him. Yet he still showed up at all the shows.
Look for a good book (lots of 5-star reviews) on how to start a business.
As someone mentioned previously, get some experience working at a retail store (doesn't have to be a hobby shop) and ask about managing inventory, cash flow, staffing, etc. You'll get a real education.
If what you're really after is meeting some like-minded train people, then look for a club where you could get together occasionally to run trains and socialize.
Good Luck!
John
I was hoping that someone would make the “Online Only” point, and CA John just did. In this day and age, there is no reason to invest in a brick and mortar store. Your business is not going to come from the community you are located in. That era is over.
You could get started in an “Online E-Business” with a comparatively small investment. You don’t need a fancy store front in the high-rent commercial district. All you need is a small warehouse that could be anywhere. However, it takes a special set of technical and marketing skills to be successful in this business model.
Other things that come to mind…
- You’ll have to qualify to become a dealer for all the various manufacturers, and not just O scale.
- You will have to develop a solid relationship with a local bank, because you are going to need their help.
- Do you have a sufficient credit rating to qualify for bank loan? You are going to need thousands of dollars of start-up cash.
- You and your Godfather will have to sign personally to guarantee the loans. Is he willing to do that?
- You’ll have to get set up to accept credit cards online.
This is just a partial punch list of items you’ll need to do.
You will need someone with a great deal of technical expertise to design your web store. It has to be as easy as Amazon to make a purchase, or it won’t work. It also has to look good, or it won’t work. It will take at least $10,000 to build a GOOD online presence.
Once you have your dealer status established with the manufacturers and the web store up and running, you have to start to make some noise in the market to get attention. Instead of running ads in the local newspaper, you will need to run ads in OGR magazine and the OGR Online Forum (yay!) plus Facebook and other social media sites. (ugh!) You’ll have to spend a lot of time “flying your flag” online and getting the word out. And you’ve got to have plan for developing your stores’ online “personality.” This is not easy, and it demands a full-time, 80 hours a week effort to get started.
There is another aspect of this that has not been mentioned yet in this thread. If your goal is just to build a layout and make some money, you are sure to fail. Your effort must be driven by a passion for the hobby, not just a desire to make money. Marcus Lemonis, host of the TV show ”The Profit”, is one of the most successful businessmen in the country. He makes this point over and over again in his show. You must have a passion for whatever business you are in to be successful. If your goal is just to “make some money,” your business is doomed to fail.
All great points Rich.
I'm a licensed electrician and ran my own contracting business for several years. I did it while my wife still worked and we were on her companies' benefit plan. Once she left her job and we started a family, I had to start paying the price of admission for health ins, retirement, etc., it became quickly apparent that this was not going to last long. Not that I wasn't successful. I had a solid and growing client base, but when you have to start paying for EVERYTHING, it gets even more expensive, fast!
So it was time to find a full-time gig with benefits, which I did. Now over 25 years later in my current career, I'm glad I made the switch when I did.
Bob
I agree with Rich. You have to have a passion for the business, whatever business it is that you own. I believe this is why Richard Kughn was so successful in breathing new life into Lionel 30+ years ago when he bought the company. Yes, he had money to buy the company, but his passion for the hobby was, in my opinion, the driving force.
If I were you, I'd also consider whether or not you really want to turn the hobby you love into a business that will demand your full attention, and then some, if it is to succeed. Many years ago, we had a boat dealer who was so miserable to be around that we stopped doing business with him. He loved boating when it was his hobby, but it didn't take long for his hobby-turned-into-a-business to become a millstone around his neck, and he stopped enjoying life, or so it appeared, by the way he treated his customers.
I love toy trains, but there is no way I would want to make it my vocation. Instead, I am a 30-year insurance agent who is passionate about the insurance biz, and trains are my escape.
Just my $.02.....
John
There is a proverb I have heard more than once: "if you want to make a small fortune in a hobby shop business, Start with a large fortune".
@BlueComet400 posted:I agree with Rich. You have to have a passion for the business, whatever business it is that you own. I believe this is why Richard Kughn was so successful in breathing new life into Lionel 30+ years ago when he bought the company. Yes, he had money to buy the company, but his passion for the hobby was, in my opinion, the driving force.
If I were you, I'd also consider whether or not you really want to turn the hobby you love into a business that will demand your full attention, and then some, if it is to succeed. Many years ago, we had a boat dealer who was so miserable to be around that we stopped doing business with him. He loved boating when it was his hobby, but it didn't take long for his hobby-turned-into-a-business to become a millstone around his neck, and he stopped enjoying life, or so it appeared, by the way he treated his customers.
I love toy trains, but there is no way I would want to make it my vocation. Instead, I am a 30-year insurance agent who is passionate about the insurance biz, and trains are my escape.
Just my $.02.....
John
Thats was an existing mfgr, not hobby shop!
I find it interesting that Cody has neither responded to nor acknowledged any posting. John
@Dave Koehler posted:Thats was an existing mfgr, not hobby shop!
Agreed, but a business just the same, and no matter what business you own....you need to have a passion for it. My plumber once said to me, as he spilled pvc cement on an open cut on his hand, "You gotta love it to do it."
@rattler21 posted:I find it interesting that Cody has neither responded to nor acknowledged any posting. John
Bingo! This individual has a long history of posting "questionable" dream posts, which never go anywhere. There have been many, MANY excellent responses to this "proposed dream", yet such responses fall on deaf ears. Nothing new here.
In your previous post you posted this..
Sorry guys no train this year
If I was you... I get a 2 foot my 1 foot plywood get some plaster and make a scenery with outside dried up twigs rocks etc put some saw dust green paint and make a small cardboard house , Or any idea you can think of.. (he would like)
Make it the best you can and bring it over to your Godfather .. I sure he would say . gee this need to have a train by it''....
DID you get him to change his mine ... from doing what I said! ??
good luck...
sorry it took so long but i had to tell my god father about some of the most common things you guys brought up i'm beginning to think opening up a hobby store is not the best option. this was actually mostly his idea and he probably doesn't understand the magnitude of a project like this and neither did i at first
i am a 26 year old college student that already has 18 grand in debt with no legal or business experience under my belt although my god father has some.
the thing about making money with trains is i have always loved trains especially toy trains and my real dad and stepmom HATE ME HAVING THEM they were really nasty about it too growing up. unfortunately my dad still has court ordered guardianship over me because of my autism, depression and cerebral palsey probably until he dies. i feel like if i was actually doing something "productive" with toy trains my parents would change their views
honestly my WHOLE family is against my having a keen prolonged interest in anything whether it be trains , ships , nerf guns etc. if it looks to them like i have a keen interest they take it away.
and Hotwater i am sorry if i anger you or any other member. i really have trouble with responses and forming them
but it seems to me from what i have read the possible option would be to start an o gauge club possibly in our new church building . my godfather is a pastor and he owned a business once years ago so he has more experience although i have experience with film somewhat.
Hang in there Cody,
You have received a lot of good advice that cautions you starting a new business. Your business experience is non-existent, your financial resources are very limited and the marketplace for a storefront hobby shop is poor right now.
The good news, you got heart and it involves trains. There is a place for you, and it is possible you will get some ideas on from the guys on this forum.
Lots of items and services that support this hobby can be made or performed with small overhead at home; I believe the term is cottage industry. Today I was looking at 20 scale Pacemaker boxcars I own and thinking "I wonder where I could find someone to weather these for me". I would encourage you to think micro vs macro. Find some service you enjoy and research, practice then hang out your shingle. Maybe make parts or assemble structures.
Off the top of my head, I don't have any great suggestions, but I bet some of the others on the forum do. Remember if you love what you're doing you will do a good job and you sure seem to enjoy this stuff. So again, hang in there just think smaller to start.
k
@Fast Mail posted:Hang in there Cody,
You have received a lot of good advice that cautions you starting a new business. Your business experience is non-existent, your financial resources are very limited and the marketplace for a storefront hobby shop is poor right now.
The good news, you got heart and it involves trains. There is a place for you, and it is possible you will get some ideas on from the guys on this forum.
Lots of items and services that support this hobby can be made or performed with small overhead at home; I believe the term is cottage industry. Today I was looking at 20 scale Pacemaker boxcars I own and thinking "I wonder where I could find someone to weather these for me". I would encourage you to think micro vs macro. Find some service you enjoy and research, practice then hang out your shingle. Maybe make parts or assemble structures.
Off the top of my head, I don't have any great suggestions, but I bet some of the others on the forum do. Remember if you love what you're doing you will do a good job and you sure seem to enjoy this stuff. So again, hang in there just think smaller to start.
k
i don't think i can do repair work because of my lack of cordnation and dextarity
i one time took a locomotive apart and ended up breaking it because of my lack of skill and cordnation plus i have no idea what i'm doing
i also fear a sodering iron because the heat
its because of these things that i feel helpless
although i am good at running trains that are not DCS / LEGACY
Tinplate is my favorite trains like marklin o gauge and prewar lionel and american flyer o gauge
especially european tinplate like marklin or ace and others has really grown on me in recent years to the point where i have often thought of making it my main focus and operation on my layout
Cody,
It is good that you are reaching out. You appear to be looking for constructive and positive feedback. I think there is a good chance you will get some, however you may want to consider giving the forum something to work with.
Tell us what you want to do or could do, that is also within your abilities. Give us some scope of possibilities, maybe then others here could give you some guidance. You seem to have the most important ingredients, a desire and love for the hobby.
For example, you have computer skills. Maybe for a small percentage fee you want to become a search engine. You could find someone else's quest and then ask for a small finder's fee. This is only a random example, a shot in the dark; I am only trying to illustrate there may be opportunities that you haven't thought of that are realistic.
Members of the forum always seem to have many creative solutions once they know the parameters, in your case, your abilities, knowledge and resources for starters. No matter, hang in there.
kevin
