You’ll need a large capital budget, which, if you already possess, might be better invested in some ETFs and rare metals.
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?
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- 78 posts total
@decooney I would not bet on a dying segment. IMHO. |
@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. |
I think most people are afraid to go into a "stereo store" just because of the pressure to buy once in the door. Open a Audiophile/coffee bar with coffee etc. and seating lounge area up front visible from the street. Make it a destination to counter $tarbucks. Have a rotating feature system in said coffee bar area you can listen and experience REAL GOOD sound. This could argument income needed to get established. Real audio store in the back visible from coffee area. No pressure to buy audio until client has a eureka moment "this SOUNDS great". "I want this sound in My living room".
Just an idea. |
To @luvtubes69 - while I don’t disagree and the points are valid, there are plenty of houses where I live at least, and someone will own or inherit them eventually. None of us would expect nothing less than these types of comments from a headphone happy website. Their world and place - totally get it, good for them. No doubt we all see a lot more people with iPhones and earbuds all around us. Kids ride bicycles a lot less around here, many on some form of electronic and mechanically driven skateboards and scooters. All compact, ease-of-use, low effort, easy access practices. Lots of it related to quick-access social media, music other. Clearly the next generation has made the case for this direction. Not all though. For the lucky few that still thrive and drive the audiophile passion, not dead yet - its still around us if you dig a little deeper. They come in to local shops nearby. Some of the same kids and next-generation around my neck of the woods - those who’ve graduated from earbuds to headphones, then buying headphone tube amps, and incredibly creating a demand for 2nd hand vinyl and turntables and tube phono preamps all over again. 1/4 of the shop spaces dedicated at two home audio stores nearby to affordable headphone amps, turntables, cartridges, vinyl, and more. These small audio stores learn how to adapt to accommodate them too, and it works okay. We have vinyl stores offering selections of vintage gear too, that is not dead, going fairly well, interestingly or at least some small city areas too with apartment living. I see it in city, small county areas around where i live at least. Next questions comes from them, LOL,
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"so how do I hook up a pair of speakers to my headphone tube amp?"...Yep, some going right back in this direction too. There will always be NaySayers, yet its just not that depressed in some areas and the next-gen of audiophiles may be small but not dead yet like some want to suggest. Those who serve both streams of old and new business types will likely survive better than others. Mail order is nice, but people still like to go try things out in person, particularly so when its expensive. I believe at least a small % of audio storefronts will survive.- 78 posts total