Model Shop

I looked into this too a few years back.

1st word of advice is that you have to be a businessman and not a hobbiest to succeed.

A knowledge and passion for the hobby helps, but it is more important to know how to balance the books, get good deals from suppliers and come up with interesting and perhaps innovative sales ideas.

If you're looking for a 'foothold', think seriously about buying out an old established shop that's owner is perhaps retiring or one that is just going bust (find out why first).

Perhaps buy a toy shop and convert to hobbies.

What you need is a good location, display space, storage space and security.

Just note this. Margins are coming down, rents are going up. Calculate how much you have to sell just to pay the rent. Figure out how many people will walk by and hopefully walk in.

Another option is to have a cheap, low rent shop and a large profitable mail order business run from the back office. That's what the owner of my local hobby shop is now doing after he had to close his last shop in town.

QUOTE 1st word of advice is that you have to be a businessman and not a hobbiest to succeed.
Doug probably given you the best piece of advice. I'm retired I retired at 55 having worked for my employee's for the last 25 years. I worked every Christmas, Easter, and public holiday. I was robbed on many occassions, I lost most of my friends because I was so busy working. For a change and to experience freedom again I returned to the UK to live to retire. Then in my local village I saw an empty shop, nice location, free parking nearby, no competion for miles. I had this crazy thought why not open a hobby shop. This insanity didnt last long and I didnt need treatment.
Then I thought to myself why bother, tie yourself to a shop, tie your cash up in stock, Have to be nice to customers "nonsence". Rather have a good time and sod working
it's for the birds - there's far too much competion on the net these days. If you want to make a few bob try Ebay first.
Besides I've always thought it bad practice to have a hobby the same as your business

I first worked in a model shop over 25 years ago. It was run by enthusiasts who really knew their stuff (between them they owned a De Glehn compound - 12" / 1' scale) and I learned a lot. However, a number of career moves later and I find myself back in the trade. Having spent time working in "serious" commercial environments I can see where retailers in the hobby come un-glued. Given that margins in the industry have been squeezed so hard, overheads will become the biggest governing factor in deciding the fate of many high street shops. Rent, rates (a real concern), wages and utilities will be the factors that are likely to determine who survives (given that most retailers pay the same wholesale price).

To survive and grow today, businesses must be lean, efficient and offer the best service possible. The days when a shop could carry every item in a supplier's catalogue will soon be over and "just in time " will become the order of the day, thus throwing stocking costs back on the manufacturer or importer. It is not going to be pretty and I can foresee casualties.

60134

Well a lot of very good advice from all quarters. My experience was in photography back in the 80's. I had no shop front and decided that I would complete a course in general photography.It took a year and I was thouroughly fed up with it at the end. Although I had made lots as an amateur by word of mouth repeat business, when it came to full time it was sparse. I ventured down the path of commercial photography for large companies. Fine except they don't pay for months and I spent hours chasing money. Then I thought if I can buy consumables such as film at my prices I could supplement the bad times with film sales etc to garages paper shops etc. Fine but other clever reps for a plethora of items started to jump on that band wagon and that killed that off as I couldn't compete. Next plan! Advertise in the photo press. Too expensive. Then, bright idea, contact the editors about a special offer that I could give their readers. Yep front page splash for free. It generated about as much interest as a f**t in a space suit. I eventully gave up and retrained yet again. So my advice is don't. The big boys have it all sown up. If you do make sure that you pick a good location for your shop e.g near a railway frequented by railway enthusiasts. In my town we have 3 model shops and none of them are particlarly good but they survive. God knows how.