Need advice on starting a retail watch business - Page 2

David.Pagotto · 26-01-08

Hello Khanh,
In response to each of your answers:

1. Yes. Will be just me to start in looking after the shop. Wife will help out a few days. She has a full time job as well. Also thinking looking for a business partner to relieve the burdens...manning, capital etc...

In this computer savvy society it is very risky to jump straight into a high paying premises. A shop in Westfeild sounds very expensive. I have just recently moved one of my businesses into a factory in packenham, but that was 1 year after starting the business and with a large and constant client base. Have you considered starting out on the Internet and testing the water? It is common these days to start out Internet based.

Don't let these words discourage you from getting a physical place asap, just something to think about. The key to making your business or any business successful is research. I have seen these kind of watch shops in the city (MELB CITY) and they seem to be pretty busy.
-Is there any other watch based shops at Westfeild, and what is there business like?
-Does Westfeild have a strong percentage of your target market?
I mean, it comes down to questions like this that can be a make or break.

You could get setup with a webstore similar to mine (www.owoa.com.au) for $500-1000

2. Yes, with 2 young kids.

With a family to support you need to make sure you can keep the food on the table.
In a scenario where your business goes downhill, how will you live?
Just something to think about, and again business is about taking risks so don't be discouraged.

3. I am estimating initially at about $60K to $80K from shop fittings, rent to stocks etc.. I could be underestimating...not sure.We have a mortgage of about $155K and some $75K for withdrawal (Excess from mortgage repayment). A loan will be most likely.

As you said it may be advisable to find a partner who can share in the capital. There is nothing wrong with a loan as long as you can pay it back.

4. Location is likely to be in Westfield Shopping Centre Doncaster. We only need a small area, about 30 m to 40 m sq. I was told rent in shopping center is about $1500 per 100 m sq. The GM of Westfield is one of my regular customer at work, and is interested in talking to me about a spot in the newly refurbished centre (complete by October 08) after i told him about the business. We need the high exposure and foot traffic and the convenience a shopping center can offer, as you know. The drawback is the high rent amongst other things, i am sure. Will find out soon. Could you give me a head start David on this before i go to talk with Westfield.

I have been to Westfield Shopping Centre Doncaster and it seems like a good place to get started. Lots of foot traffic. But do you research with the target market, shop positioning and all the rest.

Cheers Dave

Khanh · 28-01-08

Quote:

Originally Posted by David.Pagotto

Hello Khanh,
In response to each of your answers:

1. Yes. Will be just me to start in looking after the shop. Wife will help out a few days. She has a full time job as well. Also thinking looking for a business partner to relieve the burdens...manning, capital etc...

In this computer savvy society it is very risky to jump straight into a high paying premises. A shop in Westfeild sounds very expensive. I have just recently moved one of my businesses into a factory in packenham, but that was 1 year after starting the business and with a large and constant client base. Have you considered starting out on the Internet and testing the water? It is common these days to start out Internet based.

Don't let these words discourage you from getting a physical place asap, just something to think about. The key to making your business or any business successful is research. I have seen these kind of watch shops in the city (MELB CITY) and they seem to be pretty busy.
-Is there any other watch based shops at Westfeild, and what is there business like?
-Does Westfeild have a strong percentage of your target market?
I mean, it comes down to questions like this that can be a make or break.

You could get setup with a webstore similar to mine (www.owoa.com.au) for $500-1000

2. Yes, with 2 young kids.

With a family to support you need to make sure you can keep the food on the table.
In a scenario where your business goes downhill, how will you live?
Just something to think about, and again business is about taking risks so don't be discouraged.

3. I am estimating initially at about $60K to $80K from shop fittings, rent to stocks etc.. I could be underestimating...not sure.We have a mortgage of about $155K and some $75K for withdrawal (Excess from mortgage repayment). A loan will be most likely.

As you said it may be advisable to find a partner who can share in the capital. There is nothing wrong with a loan as long as you can pay it back.

4. Location is likely to be in Westfield Shopping Centre Doncaster. We only need a small area, about 30 m to 40 m sq. I was told rent in shopping center is about $1500 per 100 m sq. The GM of Westfield is one of my regular customer at work, and is interested in talking to me about a spot in the newly refurbished centre (complete by October 08) after i told him about the business. We need the high exposure and foot traffic and the convenience a shopping center can offer, as you know. The drawback is the high rent amongst other things, i am sure. Will find out soon. Could you give me a head start David on this before i go to talk with Westfield.

I have been to Westfield Shopping Centre Doncaster and it seems like a good place to get started. Lots of foot traffic. But do you research with the target market, shop positioning and all the rest.

Cheers Dave

Thank David and Elven for both your advices.

All points are very valid and all i need to consider. I did forgot to mention that i also wanted the business to go on line as well for a wider exposure.
I feel only a web base may limit and harder to get exposure, thus a shop front was decided as well. I feel a watch is very personal thing to a purchaser, and they will need to see and feel the piece ( for quality, aesthetic reason, etc..) before they buy it...at least i do feel that way when i buy a watch.

Is it that cheap, as you mentioned, to get an website and buy on line systems etc, set up?

Any recommendation for a web designer?

Cheers,

Khanh

Elven · 28-01-08

Quote:

Any recommendation for a web designer?

Wave.

Elven

Sabir · 28-01-08

Hi, This post is very informative, however I would like some specific information. If someone can help me then please send me a private message. Best Regards,