Getting into the retail gaming business

[Glacialis]

A friend of mine has been planning to open up a gaming retail store for quite some time. He's hampered by the fact that he's got a big wad of cash saved up but zero credit (funny, that), and when you say gaming store and explain what it is you mean they look at you oddly. Oh, that and finding a place whose realtor is sentient and has an Int score above 3.

In any case, I'm looking to get some tidbits to relay to him. Anyone have experience in this?

 

[Azure Trance]

There have been a few threads on that, even one recently. I don't have the links saved but maybe someone else does ...

 

[WayneLigon]

got a big wad of cash saved up but zero credit (funny, that),

I used to have that. The big wad of cash, that is Seriously, I had cash and a lot in the bank account but I'd never bought on time or used a credit card, ever, until I was about 30. Looking forward, I knew I'd need to establish credit at some point, so...

One of the better ways of doing this is to simply take out a small loan, then pay it back on time. Do it again, and again. Boom, you have a credit record, and a good one. Get a credit card. Pay off the entire balance every month, religiously. Never miss a bill payment.

I assume in all this that he's never defaulted on a loan, had a repossession or declared bankruptcy.

 

[megamania]

As above for credit. I got a credit card and would a CD once a month. After a year I went to the bank with an A+ credit.

Thoughts on the store.... I have friends that have tried comic and gaming stores before. Think long and hard about is my main thought. It's a tough market to survive in. You need to compete with the Waldens of the world and of course- internet discount locations.

On the more positive side- location is important. You want to be close to the age group you looking to attract. Generally this will be high schools and/or colleges.

Have gaming events as much as possible to draw in NEW people. Keep it fun...don't just cater to your friends.

Good luck. Andy

 

[Oracular Vision]

Prolonged recession = less discretionary cash
High up-front inventory costs versus low turnover
High incidence of theft
Need accountant and budgeting skills

Don't recommend it, he should become a partner with someone else who knows what he is doing. You can lose your shirt easy...

 

[WayneLigon]

High incidence of theft

I was amazed when I mentioned this to our FLGS owner and he agreed; he reports a large incidence of theft, esp. of dice and card games.

I suppose those detector gates cost an arm and a leg, out of rach of a FLGS. Anyone know of lower cost alternatives?

 

[Azure Trance]

I was amazed when I mentioned this to our FLGS owner and he agreed; he reports a large incidence of theft, esp. of dice and card games.

I suppose those detector gates cost an arm and a leg, out of rach of a FLGS. Anyone know of lower cost alternatives?

Keep 'em behind the glass displays at all times?

 

[Ulrick]

Antra--

Your friend needs three things to have a chance to run a successful business.

1. Education--He needs learn the basics of running a business. While there's plenty of books out there, the BEST thing he can do is find somebody who's been there, done that and ask to mentor him.

2. Excess cash-- it sounds like your friend has saved some money. But its not enough. Also, when I mean "excess" cash I mean cash that can be spend w/o lowering your lifestyle if the business goes under.

3. Experience--has your friend worked in a gaming store before? Has your friend been a manager in a retail environment. Has he done the accounting for a business?

Lack of experience is probably one factor in why your friend didn't get the loan.

One last thing: Seek professional advice elsewhere....especially from a mentor.

 

[DDK]

I've long dreamed about doing this myself but simply don't have the capital and my friend who does thinks it's a bomb of an investment (he's right, but that doesn't mean I don't think he sucks for saying so ).

So whenever a thread like this comes up, I always take an interest.

Some things I've learned from watching threads like these are:

1) Don't do it.

2) See rule number 1.

3) Ok, if you're that adament, go to a small business training course at a local university. The course runs you through the creation of a business plan and highlights all the pitfalls and gives you basic accounting, marketing, budgeting, etc. skills and shows you how to do it right.

4) Learn about customer service. One of the things that tends to kill a FLGS (Friendly Local Gaming Store) is that they're simply not F. Learning to love your customer... sounds silly but if you don't know your market and don't care for them, then I assure you that they won't care for or know about you.

5) Run it as a business, not a hobby. Too many people get into it because they love the hobby but they have ZERO business sense or ability and so they end up running it as a pastime rather than a business. Stock ends up sitting on shelves for YEARS (this is not an exaggeration) because the idiots who run the place don't know jack about square footage and profitability. Then they wonder why they end up bankrupt and out of business.

6) Seek psychiatric help. Oh, you think I'm kidding? Buddy, you have to be INSANE to run an FLGS so you may as well get a piece of paper proving it

 

[Andor]

Fourecks has good advice. ;-)

If your buddy still wants to do it tell him to call GAMA. The GAme Manufacturing Association. The retail division has a mentoring program and a bunch of handy guidelines and educational material as well as the retailers handbook.

Find 'em at. www.gama.org

-Andor