Opening a game / hobby shop

[Svetgar]

I've been considering opening up a game shop for most of the past 20 years. What really brought it to the forefront of my mind is that the town I work in doesn't have a single place to buy Magic the Gathering other than Walgreens. I found this out the other day quite by accident. I looked around and there is not a single hobby type store at all there despite being a fast growing place with lots of families moving there and building new schools for all the kids overflowing the current ones. The nearest place for these kind of things is a 20 to 30 minute drive away.

So my wife and I are thinking about opening up a shop that sells MtG, board games, miniature games, RPGs, Traxxas RC cars, etc.

I can invest about $100,000 max without loans or stressing myself out about being broke. I would be rather be at $75,000 though. Is this a sufficient budget?

I've read the articles here and elsewhere but they were a bit dated. I'd like input of the viability of doing this in 2016. Any thoughts or comments are appreciated.

 

[ShadowAssassin]

100K might not be enough. I'd check out rent costs for stores in likely locations first and see what the owners want up front before moving in. I'd then talk to the game/card distributors to get an idea of minimum purchases required. See if you can get a quote for a selection of fixtures and fittings to build out the store. Then I'd put together a business plan and get someone in the financial business to look over that to see if you've missed anything in your costings. If you've never run a retail business then I'd take some classes at community college about book-keeping and the like. Speak to a tax professional about how your state deals with retail businesses and what steps to take to minimise your tax liability.

 

[The Crimson Binome]

This actually seems like a great question for Quora.

Ask this over there, and I would wager that you get a useful response.

 

[Celebrim]

Hobby Store is a tough business to get into. I can't say I'd recommend it to someone without experience running a successful retail business of some other kind.

You've got huge obstacles:

a) Internet retail/electronic media: This is going to cut into your business heavily, as you probably aren't going to be able to sell products cheaper than people can find the same product online. This means in 2016 you are going to need to monetize your play space in some fashion, getting people to want to spend money to be in your store or at least to spend money while they are in your store. And doing that increases your overhead and sunk costs.
b) Shoplifting/Disrespect of Property: Don't underestimate this one. A great many of your shoppers in a traditional gaming store are going to be kids, many of whom are not particularly well behaved. And at times your store is going to be really crowded and hard to manage. There used to be a great blog out there 10 or 20 years ago about the adventures of a guy running a gaming store and all the crazy things he had happen to him before he gave it up. I wish I could remember it.
c) Fads: Demand for particular products can rise fast and fall just as quickly. It's easy to get burned by over investing in something.

That said, I think there is a demand to be met. There are a lot of geeks with money out there, and a lot of need for adult entertainment options. Consider a soda fountain/bar with table space physically separated out from your store space. There are a lot of creative ideas for monetizing gaming that are more than just selling things you can get over the internet: rentals of equipment or tables/rooms, party rooms with video game or arcade game consoles, selling food/drinks, etc. However most of that is going to vastly increase your budget, probably beyond your ability to invest.

And as I said, the simple retail store is also a gamble in this day and age. I've seen so many stores just come and go over the years. They aren't easy to keep going.

 

[psychophipps]

$100,000 will open up one hell of a shop, bro. I owned a shop for three years, started with under $10,000 dollars, and shut it down 100% in the black.

 

[pickin_grinnin]

Delphi has a set of forums that are frequented by real game store owners. They discuss nitty-gritty stuff like this, in great detail. I would ask around on there.

With any small business you are going to have to work very long hours (think 80 hours a week) to make a real go of it. Is that something the two of you are willing and able to do?

 

[LetThronesBeware]

I've been considering opening up a game shop for most of the past 20 years. What really brought it to the forefront of my mind is that the town I work in doesn't have a single place to buy Magic the Gathering other than Walgreens. I found this out the other day quite by accident. I looked around and there is not a single hobby type store at all there despite being a fast growing place with lots of families moving there and building new schools for all the kids overflowing the current ones. The nearest place for these kind of things is a 20 to 30 minute drive away.

So my wife and I are thinking about opening up a shop that sells MtG, board games, miniature games, RPGs, Traxxas RC cars, etc.

I can invest about $100,000 max without loans or stressing myself out about being broke. I would be rather be at $75,000 though. Is this a sufficient budget?

I've read the articles here and elsewhere but they were a bit dated. I'd like input of the viability of doing this in 2016. Any thoughts or comments are appreciated.

What's going to set your shop apart and aside from other retailers in a 30 minute drive (bookstores, comic book shops, etc)? - Important, because 20-30 minutes in the car is not a hassle for most people.

What's going to set it apart from buying things on the internet?

What sort of clientele will you serve? Do the demographics of the area support that?