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Comic Dealer Business Plan

Started by Pike's Comics,

70 posts in this topic

comicwiz

comicwiz

Posted
Posted
2.25%-4.0% loan 85% rate (15%down) so for a 20k loan you would need 3k down. Not bad at all.

 

I read it as 2.25-4% over prime.

 

Still peanuts on a $20k loan.

 

With U.S. prime at 3.25, if U.S. banks are anything like Canadian banks who arbitrarily come up with their own prime rate, 5.50-8% (possibly higher) just doesn't seem all that attractive a rate to borrow. 2c

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joecgcmaniac

joecgcmaniac

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Don't take this the wrong way, but if you have to ask someone for a business plan, maybe you should try another business.

 

Asking for advice is always a good thing. I am proud to admit I don't know everything and can learn from others.

 

the 12 steps of a business plan:

 

-Introduction

-Executive Summary

-Benefits to the Community

-Company and Industry

-Management Team

-Manufacturing and Operations Plan

-Labor Force

-Marketing Plan

-Financial Plan

-Exit Strategy

-Critical Risks and Assumptions

-Appendix

 

 

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shadroch

shadroch

Posted
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Don't take this the wrong way, but if you have to ask someone for a business plan, maybe you should try another business.

 

Asking for advice is always a good thing. I am proud to admit I don't know everything and can learn from others.

 

 

Free advice is rarely worth what you pay for it.

If you are looking for a business plan to sell comics, asking a board of comic collectors is hardly the place to start.

Strange as it may seem, the people who can help you write a successful business plan are people who have or have had successful businesses.

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mintcollector

mintcollector

Posted
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Don't take this the wrong way, but if you have to ask someone for a business plan, maybe you should try another business.

 

Best advice thus far.

 

First, the SBA looks for not only assets; but also requires you to show profits after the first year, in most cases. Very few businesses (aside from a small hobby like business with no overhead) can do this. This is why a business plan is IMPORTANT. That being said, most people who seek SBA loans also have a slight 'tendency' to fudge the numbers to ensure this occurs. They will look at your plan; it does matter.

 

Owning a house does NOT always matter as long as you have a positive net worth. Equity is equity; as it can be in the form of stocks, bonds, and cash (or equivalents). Do not list antiques and collectibles as assets on these forms. If you have a large portion of your assets tied up in certain collectibles; they will ask why.

 

I know plenty of people who NEVER owned real estate and have gotten SBA loans. I also know plenty of people who failed to get a loan with positive cash flow and real estate ownership who could not show a viable business plan. This plan represents YOU!

 

As for some kind of 'pawn business.' I do not know what you are planning; and I do not know all the legal ramifications of this. That being said, I can tell you a brick and mortar pawn shop requires a very expensive and limited; license to operate. Ever see the show Pawn Stars? I believe they paid close to $250,000 just for their license to 'pawn' and they had to wait several years to get it. I do not know the rules for the internet, but I would imagine there are some laws surrounding it or a lot more individuals would be trying to do it. This would require a lot of research and a well versed attorney.

 

For all my businesses (small or not); I have a busines plan. I even have a business plan for collecting and investing in certain kinds of collectibles. There always has to be a well documented strategy for taking on any kind of financial risk.

 

This is a little off topic, but I encourage a lot of collectors who tell me they are 'investing' in antiques and collectibles; to write their plan down. On paper they can see whether or not what their buying startegy makes sense, when they should sell; and formulate an 'escape plan' to sell off their items and at least get their money back, should the market sour. Note that this ONLY applies to those collectors who are truly buying for investment. If you are buying to collect; ROCK ON!

 

Just an observation.

 

'mint'

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comicwiz

comicwiz

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Ever see the show Pawn Stars? I believe they paid close to $250,000 just for their license to 'pawn' and they had to wait several years to get it.

 

That sounds to be more about the influence of lobbying to keep the competition out of Vegas than any universal or standard cost for licensing to operate a pawn shop. Only in Vegas will you see panhandling by people who don't look homeless, but who are convinced their luck is about to change with your $5 donation. Seems like a captive market to shake people out of their jewelry and personal belongings to feed their gambling addiction.

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ComicConnoisseur

ComicConnoisseur

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Ever see the show Pawn Stars? I believe they paid close to $250,000 just for their license to 'pawn' and they had to wait several years to get it.

 

That sounds to be more about the influence of lobbying to keep the competition out of Vegas than any universal or standard cost for licensing to operate a pawn shop. Only in Vegas will you see panhandling by people who don't look homeless, but who are convinced their luck is about to change with your $5 donation. Seems like a captive market to shake people out of their jewelry and personal belongings to feed their gambling addiction.

I agree, plus you probally could make millions more owning a Pawn Store in Las Vegas,as I wonder how many times people had to pawn their stuff to pay for their losses at the vegas tables or sell their stuff just to play some more slots?

If you think about it,then we will find owning a pawn shop near a gambling casino would be perfect for Pawn shop owners,as you would always have business.

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comicwiz

comicwiz

Posted
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Ever see the show Pawn Stars? I believe they paid close to $250,000 just for their license to 'pawn' and they had to wait several years to get it.

 

That sounds to be more about the influence of lobbying to keep the competition out of Vegas than any universal or standard cost for licensing to operate a pawn shop. Only in Vegas will you see panhandling by people who don't look homeless, but who are convinced their luck is about to change with your $5 donation. Seems like a captive market to shake people out of their jewelry and personal belongings to feed their gambling addiction.

I agree, plus you probally could make millions more owning a Pawn Store in Las Vegas,as I wonder how many times people had to pawn their stuff to pay for their losses at the vegas tables or sell their stuff just to play some more slots?

If you think about it,then we will find owning a pawn shop near a gambling casino would be perfect for Pawn shop owners,as you would always have business.

 

The licensing costs are nominal compared to the kind of community resistance to the opening of a Pawn Shop in your neighbourhood, because suddenly it's like a magnet that draws in a seedy element. Not implying anything nefarious about the proprietors or the way pawn shops operate, but all you have to do is hang around a pawn shop during the day to see what I mean. And there's a reason why a lot of them close before it gets dark.

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shadroch

shadroch

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Pawn shops are few and far between on Long Island, but the closest one is in a very up scale meighborhood( North Merrick) and doesn't attract a seedy element whatsoever. Its in a strip mall with an antique shop on one side and a fur store on the other.

I remember reading an article in a local paper about the pawn shops of Atlantic City. I don't recall the exact number, but I think the number of such shops was limited by population to eight. It showed the transfer fees that went with sales of the business and how what was tens of thousands in the 1970s were now millions.

Most jurisdictions have similar restrictions.

 

As far as the SBA goes, its true you don't need to own a house, but you have to have hard assets. For most people, that translates into a house. Someone who is passing on collections for lack of capital most likely does not have the required assests.

Without them, a business plan is useless.

I was able to get the process rolling on a loan for a bar without an intact business plan, with the understanding it would be in place when the interview was done in ten days or so. In that case, we were looking for $50,000 with over a million in assests to show.

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mintcollector

mintcollector

Posted
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Pawn shops are few and far between on Long Island, but the closest one is in a very up scale meighborhood( North Merrick) and doesn't attract a seedy element whatsoever. Its in a strip mall with an antique shop on one side and a fur store on the other.

I remember reading an article in a local paper about the pawn shops of Atlantic City. I don't recall the exact number, but I think the number of such shops was limited by population to eight. It showed the transfer fees that went with sales of the business and how what was tens of thousands in the 1970s were now millions.

Most jurisdictions have similar restrictions.

 

As far as the SBA goes, its true you don't need to own a house, but you have to have hard assets. For most people, that translates into a house. Someone who is passing on collections for lack of capital most likely does not have the required assests.

Without them, a business plan is useless.

I was able to get the process rolling on a loan for a bar without an intact business plan, with the understanding it would be in place when the interview was done in ten days or so. In that case, we were looking for $50,000 with over a million in assests to show.

 

First, a general comment on the cost of a license for pawn shops. These are regulated and only a set number of licenses are able to be granted within a set jurisdiction. By the way, that license they have for Las Vegas is easily worth one million by now. This is all explained in their not so 'autobiographical book' entitled 'License to Pawn.' The book is well worth reading...once. It is however, NOT a favorite book of mine.

 

That being said, even a license for any city is going to cost upwards of one hundred thousand dollars. This is why there are so few franchised pawn shops. Most are in the more lucrative check cashing business.

 

I did receive a loan from the SBA back before I owned real estate. That being said, it can be done, but you need capital as stated. It is true, if the person inquiring is already passing on acquiring inventory due to a lack of capital then a SBA loan sure isn't going to come to the rescue. The only other resource that I know of (and would NOT recommend) is to take a loan from your 401K; assuming you have one. Aside from that; and it is unfortunate, but you are pretty much on your own.

 

 

 

 

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sckao

sckao

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I think the actual cost of the license is pretty nominal ($1-2k). It's the insurance and surety bond that costs money. You're essentially becoming a bank / insurance company so you need to be backed by a certain amount of money.

 

 

 

 

 

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shadroch

shadroch

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I think the actual cost of the license is pretty nominal ($1-2k). It's the insurance and surety bond that costs money. You're essentially becoming a bank / insurance company so you need to be backed by a certain amount of money.

 

 

 

 

 

In Atlantic City, you can not open a new pawn shop, you need to buy a pre-existing one. Thats why they cost a fortune. Could be the same in Vegas, where the population has stagnated or even declined.

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