Thinking About Buying A LFS

[bullitt21]

keep your eye on craigslist there are always tanks on there for dirt cheap.

[Altohombre]

looks like things are looking positive once again!

[Picasso]

Picasso:
I REALLY appreciate the offer to help with the website. I will probably take you up on that offer when I'm, ready to move forward.[/quote]


A web site is easy to set up, if you are already advertising and selling frags, you should do the site now. Easily, I could do a site that accepts orders with pay-pal. If you want a full-out store with a major online cataloge, then that would be a major effort. Just let me know.

Catherine

[Stupidsreef]

Interesting thread.
RC, it sounded good at first, but IMO you made the best choice for now. We have a LFS who's closing the doors the last day of NOV. She has offered the store to any of us hobbiest for $125,000 & the livestock for $40,000. The locatation of her place is one of the hottest area's in our market. 2 things are different though. She's willing to give you all suppliers and all info needed. And then willing to help you get started with any info you need. But she is keeping the store's name. That's because she does maintance and she will continue that part.
Reason I say the deal is no good.

1. You need to OWN the building.

I know most of our LFS's and the onwer's. I've looked into this with a friend. Leasing is to costly, and you'll never really get ahead of the game. Even this store owner said she was getting out because her lease was up and it was just to much to re-sign again. Another thing around here is you can't insure the "live stock", due to the turn over rate of it. You never have the same thing long enough. You can insure the equipment & dry goods on hand but thats it.

Now with your On-Line bussiness:
This is ok. You can make some money doing this, However not enough to quit your day job. Why?? Because none of the wholesaler's will sell to you unless you have a "brick" building that you can prove is the company with all of the proper paper work. And this is where you'd get the deals is the wholesale company's. So your left with just buying coral, growing it out, fragging it and then selling it on-line. There are a number of us locally who've walked your path and tried. Some of us are doing that now, but it is just not enough money.

My tip to help you out: Go the LFS's and buy there "browned-out" or just "brown" coral's you can get them cheap. Once you get them provide them with good water & lighting and they'll color up. Grow them out and frag them. Also try buying soft coral's like mushrroms, Zoa's, Ric's and Leather's. These are easy to grow and reproduce rather quickly. They sell very good, Plus you can trade them in at the LFS for other SPS or LPS corals.

Honestly though, with out the "deals" of the wholesale company's you'll never make enough to quit the day job. And ORA is a rough company even for store front owner's. Each frag a LFS buy's from them is $30.00 that's as cheap as they'll sell them, and then you have to buy quanity from them or they won't deal with you. Most wholesaler's ask or "look for" the LFS to spend around $2000.00 per month, and if you don't they'll cherry pick to the store's who do. It can become cut throat, because after all, it's not about the animal's......It's about the MONEY.

Best of luck to you RC. Hope the info helps.

[simpleman]

When I started reading this thread I was a lil worried, but I know you're a smart man.
Props to you RC for doing your homework

[daugherty]

you can get a business liscense from the city and did order things from wholesalers. i set the business up as a tank maintence and special orders. it was very easy all the wholesaler needs is a copy of the business license and you are now buying fish and coral dirt cheap. i one that i did have sold coral in pack like 25 for 250. you could buy a yellow tang for 8 bucks.

[wontonflip]

Hehehe....yeah, it helps to post and vent and get a few dozen opinions to put things in perspective (sorta like talking to yourself, except with different voices). I know I've thought of doing certain things, but change my mind after getting other people's advices.

[sen5241b]

Sorry, but I THINK ITS A BAD IDEA. We are in a severe economic downturn and you want to run sell product that is essentially luxury items. This is absolutely the first thing consumers cut back on at a time like this. Unless you a have genius business and marketing plan that breaks new ground, I would say forget it. Don't take this the wrong way. Anyone trying to start a small business needs a reality check.

Also, this guy says he's selling because he wants to retire. You think he'd tell you he's doing bad when he's trying to sell you the business?

[dustin_P74]

i think a frag website is the way to go as of now because like sen said we are in a economic downturn and since this happens every couple years, we all know that the economy will turn upwards and while you are waiting for that to happen you have coral growing out for fragging once people start spending again. also i say go with brown softie corals because brown sells my friend, it sells because it is cheap. also avoid SPS and LPS until you have a good consumer base because they just take to long to grow into a coral that is ready to be fragged. and with the website i suggest opening it up to more then just paypal because only excepting paypal limits you even more because not everyone has paypal

[lightcs4]

I haven't read through the whole thread, so this may have been mentioned already. Do a business plan and get in touch with any small business association. The association scan give you a lot of help in determining if your business plan is a viable idea, as well as help guide you through the paperwork of transferring a business to you.