Question about business plans.

[nedjer]

Some of the advice on offer seems to look at one of the FLGS 'dangers', i.e. assuming that the games you like are the ones a sufficient customer base will like and focusing on them. The Pampered Chef idea seems particularly good at escaping this.

Investment wise, it's possible to take another route to building the company before looking for 'angels' or committing heavily. Crowdsourcing/ crowdfunding may be an option, (you have to avoid offering shares unless you want to sort out the financial regulation), through offering a variety of what are, in effect, pre-sales of services. Equally, it's possible to set up an e-store, forum, etc . . . and build your own infrastructure in advance at next to zero cost.

These are ways to make and get away with a lot of mistakes in safe sandboxes without giving up the day job or risking the house. They might also serve to impress potential investors in terms of skills gained, capability and demonstrating cost saving mentality?

Which is totally information and not advice

 

[Dedekind]

You may want to dig through some old threads and see if you can find some of the ones that gripe about their not-so-friendly FLGS. It may give you an idea about why some stores fail and others succeed.

Briefly, I recall the following common complaints:
1) Employees are useless, rude, or otherwise prevent a good experience. (My own complaint.) (And I think the consensus was the principal-agent problem where the owner can't really control the actions of the employees.)
2) The price was 20-40% cheaper on Amazon.
3) The other gamers in the store were a problem.

As for new ideas, I wonder if running a semi-regular con would be profitable. Maybe once per quarter set up in a community center with X number of DMs. Charge $5 a table and if you get a big enough crowd on a regular basis, it could lead to more interesting stuff.

 

[Glade Riven]

One thing about any business is to find a niche - an unfulfilled need. Identify that need, and then fill it.

For instance, if you are renting a storefront next to a conveniance store, it's kind of silly to sell a wide variety of snacks. If you are near a dollar store, think about selling items that appeal to the bargain hunter.

Think about what else you can make a profit on beside just gaming. Many people who roleplay are avid readers or videogamers. While it's nice to have comics, the comic industry is not a big money maker. When I was in SW Missouri, a chain was rather successful selling all of the above: Used videogames, collectables, DVDs, books, and RPG stuff. Other combinations I've seen on Enworld were themed cafes or bars.

 

[dm4hire]

I will have to get back to you BMo as to my business model as I want to make sure I present it properly. I also would like to thank everyone else who's jumped in as there are some good points.

Transbot9 presents an interesting thought, but I can't help think location is just as important, if not more so. While a game store is a destination business for gamers the real bread and butter is impulse buying to which you need to make sure you're in a visible well travelled area.

 

[dm4hire]

Here are my thoughts on how I would like to run my business. They are presented in no particular order.

I’d like to model the layout after the 3rd ed PHB by having murals of monsters painted to correct size on the walls so customers can be awed by standing face to face with something they might fight against in a game. Then on the floor every so often have footprints of monsters so they can compare to their own feet also.

In order to compete with internet sales I would offer a preorder discount equal to Amazon’s listing price plus shipping. My thought is to do this in order to catch the dedicated gamer who will try to save money on new releases whereas the impulse buyer isn’t going to compare prices that often when they walk in and find a product they want.

Outside of top sellers I plan on only stocking items for the initial first three months of its release. This is so that the store doesn’t get stuck with a lot of overstock items. In relation to this any item that sits on the shelf for more than three months without selling I will start discounting slowly until it sells. I may have to resort to listing it on eBay. I’ve seen too many stores that have gotten tied up in overstock which ties up revenue which can’t happen in today’s economy.

Hire employees which play to the aspects of the store that are working. This means hiring people who not only know the product but also know what’s going on with the product lines. The really good stores the employees can talk your leg off about at least one or two aspects of what is covered in store product.

Location as I mention is key to longevity. The store has to be located where there is a good cross traffic of nontraditional customers passing by. A game store is a destination place gamers, but it’s the new, unaware of your store customers who will keep it going over the long haul. A good location also helps reduce the need of advertising. My thought is to find a location on either a major road with heavy traffic or a good destination area, preferably a shopping center occupied by a grocery store and at least one dine in/carry out place.

The store has to be involved in the community. Donating to local charities not only helps as a tax write off, but will also help advertise the stores presence to those who may not be aware of its existence. Free advertising due to this is also a perk since charities tend to list their sponsors or major contributors.

Well that’s it for right now. Any thoughts, suggestions, or input will be appreciated.

 

[Votan]

In order to compete with internet sales I would offer a preorder discount equal to Amazon’s listing price plus shipping. My thought is to do this in order to catch the dedicated gamer who will try to save money on new releases whereas the impulse buyer isn’t going to compare prices that often when they walk in and find a product they want.

I am generally skeptical of discount schemes. But if yo do go this way you can probably just discount to the Amazon price and point out the customer will get the product faster than with the notoriously slow super saver shipping.

 

[Dedekind]

Location as I mention is key to longevity. The store has to be located where there is a good cross traffic of nontraditional customers passing by. A game store is a destination place gamers, but it’s the new, unaware of your store customers who will keep it going over the long haul. A good location also helps reduce the need of advertising.

A local place advertises itself as a family gaming store and carries lots of rare and/or unusual boardgames. The non-fantasy gaming aspect is an interesting diversification that may bring in a different group of people. It also has a kids section where they can play some tabletop games in store (like Jenga). I will say, the location is awesome, right on the main drag of a quirky, non-chain mall, and right next to the food court. It is a little too far away for me to be a regular patron, but I sense it has regulars as well as walk-in traffic.

On the one hand, you may appeal to a broader audience, but, on the other hand, you may deter the presence of tabletop RP gamers.