Quilt Store startup (Class project)
10-18-2019, 07:23 AM
#12
Super Member
Join Date: Dec 2012
Posts: 1,857
As with any business, start out with what the hard costs will be to set up (lease, furniture, deposits), then the costs to open (inventory, advertising), and then the monthly costs (rent, utilities, banking/credit card fees). This does not include salary. Since this is just a dream idea, what would you need to sell to cover these costs? And, we know that a LQS will not sell this much (why they are dying out!) what will you do to supplement this income? Best idea is classes or LA services. If you have a quilt class meeting one day a week with 4 - 6 students, it can generate $100 - $200 per week. Check with a local LA'r and see what they charge for their services (MSQC was charging penny per inch) and estimate how much a long armed quilot per week would generate. These would be your 3 sources of income. (And possibly add in a mail order element.) This is your base costs/incomes for the business. ( I had a brick and mortar for 29 years and now just do the online store - so much easier!)
10-18-2019, 11:14 AM
#14
Super Member
Join Date: May 2010
Location: MA
Posts: 1,507
Originally Posted by klswift
As with any business, start out with what the hard costs will be to set up (lease, furniture, deposits), then the costs to open (inventory, advertising), and then the monthly costs (rent, utilities, banking/credit card fees). This does not include salary. Since this is just a dream idea, what would you need to sell to cover these costs? And, we know that a LQS will not sell this much (why they are dying out!) what will you do to supplement this income? Best idea is classes or LA services. If you have a quilt class meeting one day a week with 4 - 6 students, it can generate $100 - $200 per week. Check with a local LA'r and see what they charge for their services (MSQC was charging penny per inch) and estimate how much a long armed quilot per week would generate. These would be your 3 sources of income. (And possibly add in a mail order element.) This is your base costs/incomes for the business. ( I had a brick and mortar for 29 years and now just do the online store - so much easier!)
10-18-2019, 11:21 AM
#15
Power Poster
Join Date: May 2008
Location: MN
Posts: 24,388
Some states have small business information.
Will any permits/licenses be needed?
If using borrowed money, remember the cost of interest.
Lawyer fees? Accountants?
The start up costs are "just the beginning" of running a business.
Where would you get the funds to start this business? Borrowed? Savings? Beg from relatives?
Family run/owned? Publicly owned? (I don't think any LQS are publicly owned.) Sell shares?
Will any permits/licenses be needed?
If using borrowed money, remember the cost of interest.
Lawyer fees? Accountants?
The start up costs are "just the beginning" of running a business.
Where would you get the funds to start this business? Borrowed? Savings? Beg from relatives?
Family run/owned? Publicly owned? (I don't think any LQS are publicly owned.) Sell shares?
10-18-2019, 11:41 AM
#16
Power Poster
Join Date: May 2008
Location: MN
Posts: 24,388
If doing a brick and mortar shop -
location? parking? access? demographics of area? (can people afford to buy quilting supplies?) competition? Hobby Lobby, JoAnn, and/or other quilt shops?
Would your location be near something a lot of people would probably stop at - such as a chain/large grocery store - or would it be a "destination" - such as in a house in the middle of a pasture 20 miles from the nearest town. (There is a shop in Florida that seemed to have those characteristics.)
location? parking? access? demographics of area? (can people afford to buy quilting supplies?) competition? Hobby Lobby, JoAnn, and/or other quilt shops?
Would your location be near something a lot of people would probably stop at - such as a chain/large grocery store - or would it be a "destination" - such as in a house in the middle of a pasture 20 miles from the nearest town. (There is a shop in Florida that seemed to have those characteristics.)
10-18-2019, 02:54 PM
#18
Super Member
Join Date: May 2011
Location: SW Washington USA
Posts: 4,389
Originally Posted by KittyGram
Hello everyone!
I've got tons of information already, but am having a tough time finding resources that estimate revenues.
!
I've got tons of information already, but am having a tough time finding resources that estimate revenues.
!
Please do let us know the outcome of your class! thanks, Sharyn
10-19-2019, 06:09 AM
#19
Super Member
Join Date: Jul 2013
Location: South Dakota
Posts: 8,122
keep in mind, this is a class project and not for real. It's going to be Ok for you to guesstimate at some things that you can't find hard data for. This was one thing I always struggled with when taking classes, I treated it as if it was "real" and put way more time into projects than I should have. My classmates would do great with much less effort because they were younger and had not been in the "real word" yet so everything was still pretend and they didn't have the problem with that.
10-19-2019, 06:12 PM
#20
Member
Join Date: Jun 2019
Posts: 1
Figures my first post would be about something other than quilting (I'm new to the quilting world). I did win the business plan competition in business school though (not for a quilt shop). A good sources of this type of information are trade organizations. Most shops are unlikely to share any real number for you. One source for quilt shops is https://fabshopnet.com/ Hopefully you can find something there. They have an article on shop benchmarks that may be helpful
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