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Starting my showroom again

 

Hello, audiophiles. I would like to get your honest feedback. Back in 2022, I had to close my business in Nashville owing to a series of unexpected occurrences (several deaths in the family, a rapid move to assist my mother-in-law, and a brain operation); all of this necessitated that I close the store in a matter of weeks. It was now a two-hour trek to Nashville. I worked as a glorified gate operator at a chemical company because that is all was available in our small town. I received an opportunity to become national sales director for an audio company, which would provide some income—not much, but enough to go back into the hifi business at the bottom level.

 

 

 

So now you know the incredibly brief version of the story. Here's the question: there is a little town about 30 minutes away that is booming and gaining more expensive retailers like Ulta and StarBucks. So here's the question.

 

Do you believe a small town like that might support an up-and-coming hifi business that sells receivers, speakers like PS Audio, KEF, and other manufacturers at a lower price point until the store can handle more expensive items? The closest "electronics store," Electronics Express, is nearly an hour and a half away. I have had an audio shop since 2003, beginning in Florida. Thoughts?

 

128x128nashvillehifi
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decooney
2,039 posts
 

@audiokinesis yeah mostly Audionote, Soundlab, Eminent Technology, and others to name a few. Less often I see Zengali there, and they dont sit long. He sort of special orders those i guess. I mainly check in to see what gets traded in, and admire amps and speakers there that i’ll never have room for. I was eyeballing some nice Soundlab 545s there now recently. Very nice. Someone was picking up those 106" tall x 40" wide 945s. Good grief they are massive.

There are always 3-4 guys, and sometimes wives, sitting there listening, usually vinyl playing, enjoying the music, or spending retirement savings - lol. People go there for the experience and enjoyment to decide what to purchase -vs- blind ordering online and crossing their fingers.

@luvtubes69 I would agree, high end audio is more challenged in some areas. However a few still survive and thrive keeping it alive - thankfully so.

helomech
1,694 posts
 

You’ll need a large capital budget, which, if you already possess, might be better invested in some ETFs and rare metals. 

luvtubes69's avatar
luvtubes69
9 posts
 

@decooney I would not bet on a dying segment. IMHO.

  https://www.headphonesty.com/2024/09/audiophiles-gone-soon/

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treepmeyer
122 posts
 

@nashvillehifi I will add my 2cents even though I know little about the inside of this industry.  I am a successful entrepreneur and have experience in venture capital, though.  I encourage you to follow your passion, but with some hard-stop caveats.  Do NOT expect to draw a salary or take dividends for, say, three years.  So, either have a pot of money at hand now to support yourself and your family for three years, or have a day job, or rely on your wife's income for that period (there is nothing wrong with this assuming she is supportive).  Remember, you will need health insurance.

Second, the business will need working capital.  Depending on the type of business you decide on the working capital needed could be substantial.   Bricks and mortar (i.e., a lease), outfitting a showroom, inventory, etc. all take cash.  Do NOT borrow from your IRA or pension fund.  In fact, depending on your age, I would advise against starting the business at all if your retirement financing is not adequate and already secure.

View this endeavor as a labor of love (or fun).  That pot of money I mentioned above? - You may never get it back.  You will not be able to compete against Music Direct, Crutchfield's or Sweetwater, much less Amazon.  Do not expect your small town to support your proposed business - your only realistic option is to target the Nashville market.  That is where the money is.  @meadowman and @lonemountain have given you some very good advice on easing back into the business.  Start as a consultant or a sales representative and learn, learn, learn.  Don’t bet the farm yet.  

Here is something I have seen in multiple start-ups and experienced myself:  what ends up being successful five or ten years down the road will not be what expect or plan for now.  Let me put it this way, the only way to figure out what will work in your niche is to try it, but you need to be able to survive while you discover what exactly works and what doesn't.  Learn and adjust; reinvent your business as needed.

I don't mean to be negative,  just realistic.  You might actually be able to make it work.  Sincerely,  best of luck.

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