Starting a LCS: Am I crazy - someone, please, set me straight!

[Dr Carl]

So here's the set-up:

 

Scene 1:

 

Two young kids, both 18, have started a LCS.

 

Nicest kids on the block. Really sweet guys.

 

They've started very small, kept overhead very low (no rent as dad owns the building), and are making about $800 a month (without paying themselves).

 

I'm an investor, entrepeneur (who can't spell that word!!), and professional counselor.

 

The kids have asked if I'd like to join them and help grow an LCS with them.

 

Scene 2:

 

We're in a town of 150,000.

 

Has 2 LCS already - one very small, "old-timer" shop with only comic books that's been around 25 years; one newer comic/game store that's been around 10 years. We would be the 3rd. (Can a town this size support 3?) (There is also one gaming only store.)

 

The kids will lose the free rent in a few months as dad is selling the building they're in. So, they need to start making some real money.

 

Scene 3:

 

Here's what scares the outta me:

 

Double Dip Recession

Loss in Retail Sales over the years

Even Border's Doesn't survive

Going digital

Smaller Print Runs

Online Subscriptions at 30-50% off

TPB on Amazon.com or half.com or ebay.com

Lack of value in back issues

Inability to sell old comics, except possibly on consignment

1/3 of the stores open compared to 10-15 years ago

new issue sales at all time lows

the largest distributor ( Diamond ) struggles

 

Scene 4:

 

And here's my reason for hope:

 

retailer diversity (into what?)

stridently guards their bottom line (they've been good at keeping overhead low as they start)

incredible advertising opportunities which the medium has to offer (movies, etc)

 

So, am I crazy for even thinking about it??!??

 

Someone, please Anything!

[Radj4ck]

You my friend need a drink!

 

[Monster's Lair Comics]

pm sent

[Dr Carl]

You my friend need a drink!

 

 

I might two or three before this is over

[Designer Toast]

Sounds like you've already answered your own question. It might be nice to have a shop in your area that found a nice balance between newer books, older books, and gaming.

 

I don't think you're crazy for thinking about it, as people have done far crazier things and been wildly successful.

 

Your concerns seems to outweigh your scenario options, and it sounds like you want to do it - correct me if I'm wrong here - because you like comics and what comic fan wouldn't want to do this as a business?

 

Is that 150,000 population steady, or are you in a college town?

[Dr. Balls]

I had a comic shop, and I was under no illusions that it would ever get me near "wealthy" - and I considered myself lucky to turn the nut every month and get some books for myself. But, I loved every minute of every day I ran it. And next to teaching, it was probably the most rewarding/self-satisfying job I've ever had.

 

If you can swing it - do it and don't look back. If you have to hang your finances waaaaaaaaaaaaay out there to do it, I'd probably wait a bit until the landscape changes into your favor.

 

As a former shop owner - granted, mid-90's - that's my 2¢

[ComicConnoisseur]

If you think things are difficult now with digital comics,then wait till Disney/Marvel and Warner/DC start to offer print on demand comics/trade paperbacks and hardcovers.Good luck,but if this is a dream then go for it!

[shadroch]

As you already have a steady income, I say go for it.

That said, decide from the start how much you are willing to lose and invest that much and no more.

As the shop is already up and running, sit down with your prospective business partners and get a sense of how they want to grow it and the budget it will take.

Don't do anything willy-nilly. Have a long term plan and when goal A is achieved, start on goal B., then move on to C, ect, ect.

Focus on what you can do to seperate you from the other shops.

[Doohickamabob]

They've started very small, kept overhead very low (no rent as dad owns the building), and are making about $800 a month (without paying themselves).

 

The kids will lose the free rent in a few months as dad is selling the building they're in. So, they need to start making some real money.

 

So, am I crazy for even thinking about it??!??

 

So they're making $800 total per month, but are about to lose their free rent. What will their rent be after their dad sells the building?

 

From the sound of it, this is a good experience for the kids running the shop. They're learning business -- keeping track of money, monitoring overhead and inventory, etc. Is it possible this is something that could be used as a launch pad into a different (possibly related) business that has more future potential?

 

 

[the blob]

It will depend on what their rent will be going forward.

 

You're in a town of 150k... but what about the surrounding area? Farms or more suburban sprawl. Colleges in the area? Military? Aging population or families w kids? Stabile incomes? ($oes the area rely on one main employer?

 

 

[The Troll King]

I know of plenty of areas with that population that don't even have one comic shop, much less three! I say, pass.

[Mike's Rack]

I don't know much but...

 

Plan, Plan, Plan,

 

Take advantage of the internet.

 

Use your storefront to attract collections that you can sell online and at conventions.

 

Buy used books and sell them online from your back room.

 

The more you can rely on the internet and conventions, the less you will have to rely on the 150K people to support three people in a comic book business.

[sufunk]

I'm certainly not an expert but i would say a big fat NO!

 

From what i've seen, other than stores that do BIG business with gaming, it is very, VERY hard to survive. The few stores i know of still in business that dont do HUGE gaming numbers seem to be just squeaking by and certainly not making enough money to be worth it.

 

With all the competition online, it seems to me that the odds of making a brick and mortar store worth your while are REAAAAAAL slim

[Ringfinger]

The Jack will help!

[G.A.tor]

if your only reason is to make money, pass...

 

if you have a passion for it, and want to do it, and don't have to rely on the income to support family, go for it!

[Jeffro.]

Steve Jobs says you're crazy for even thinking about opening a comic store

[Fedoraman]

You need a bigger bottle of something stronger:

[Jeffreykli]

I'd pass. Think about it; the store is currently making $800 without paying the two principal people or rent. Once rent kicks in, what's left? What's the plan to increase profits to the point where everyone can even make minimum wage? You're a long way off from even sustainability, and already have entrenched competition.

[chrisco37]

I'd pass. Think about it; the store is currently making $800 without paying the two principal people or rent. Once rent kicks in, what's left? What's the plan to increase profits to the point where everyone can even make minimum wage? You're a long way off from even sustainability, and already have entrenched competition.

 

This.

 

Pass.

[aggr1103]

We're in a town of 150,000.

 

Has 2 LCS already - one very small, "old-timer" shop with only comic books that's been around 25 years; one newer comic/game store that's been around 10 years. We would be the 3rd. (Can a town this size support 3?) (There is also one gaming only store.)

 

Are you in Greensboro?