open or not to open a store

[AmICrazy]

I have been considering opening a hot tub store with on of the top brands discussed on this website. I have the opportunity in a newly developed HOme Depot/Walmart mecca-- you know the ones that seem to draw people from out of nowhere to consistently spend their cash. Anyways, the city has one fairly large pool/spa store in an ok location and 2 others who give the whole industry a bad rep-- terribly disorganized,hole in the wall pool stores with hot tubs on the side. I would like to open a store with a high class image. Here's the rub-- I live in a small city(30,000) with a surrounding population of about 30,000 more in Canada. The city 30 minutes away has 130,000 with about 18-20 pool/hot tub stores. I think people want to buy locally and are wanting to do so but they have very little options. Would you open a store ? Looking for advice

[HotTubMan]

There is a lot of missing info to give good advbice here. With good product, manufacturer support, good retailing and customer service it could work very well. I would suggest talking with reps from the manufacturers you are considering and do a feesability study.

Just curious, what market is it? How is the growth rate? It is likely good if it is becoming a "big box mecca". Average income/capita?

[AmICrazy]

I have been talking with Sundance, Marquis and D1. All are available to me. Other brands are not bc of territory rights etc.  So far Sundance has been the most aggressive and offer what seems to be the most support thus far into the process. It seems to me that if you can offer a great product and service you should be able to make it in this business.

[wetone]

Have you started, built or owned any kind of business before? If not, there is alot to consider before pulling the trigger.

PM me would be happy to share some info with you. I have started and built 4 companies in the last 17 years, all successful. Sold 2, still own the other 2, one is a hot tub store .

Where abouts in Canada are you?

[salesdvl]

Sorry, the only business I opened was a lemonade stand when I was a kid.  And it folded. ( I had a bad batch of lemons that came in from oversees)  

[Steve]

I'm bringing Hydropool to western Canada in a BIG WAY so if you want to talk, e-mail me at srussell@hydropoolhottubs.com

We offer a huge line-up of spas, swim spas as well as commercial spas and swim spas.

Click here for details

Steve

[stuart]

It’s a piece of cake, 70 to 80 hour work weeks, fighting to maintain your positioning in the market and industry everyday, low pay, constant gambles, putting your personal savings on the line, dealing with theft and unethical vendors, arguing with media, absorbing the cost of mistakes by everyone that works for you, struggling to meet unreasonable expectations by manufactures, employees and customers, constant stress, constant battles but hey it's worth it because...... well because...... um......well

No honestly, the best part of owning a business is the first hand ability to make a difference for the good in the lives others, standing up for what you think is right regardless of someone else’s personal gain and the satisfaction of knowing the battles you will fight are your battles and win or lose you were fighting for your dreams not someone else's.

I like the fact that I meet new friends everyday and get them in hot water with their loved ones! It is so gratifying to hear on a daily basis the stories customers tell about the joy their spa brings to them and their family.

The great Harry Chapin said before he died that there is two kinds of tired; good tired and bad tired.

Bad tired is when you’re exhausted from struggles and battles that were someone else’s. Good tired is when you have the same struggles and the same battles but they were yours. That’s a satisfied tired…..

[Jordy]

Hi Am I Crazy,
If you have the passion, resources, knowledge and support to be successful-GO FOR IT!!! We opened a Jacuzzi Premium Dealership in Calgary in August and it is as difficult, satisfying and rewarding as we had hoped. If you feel you can make a difference in the market and you really enjoy the industry, get your business plan together and see if it makes financial sense. Good Luck.
P.S.- Sundance is one of the most well-respected manufacturers in the industry. What part of Canada are you in - your regional rep can have a huge impact on your overall success. Send me a private email if you have any questions about the whole process. I might be able to help.

[Chas]

Business is one of those places where the old saying is true, "If you fail to plan, you plan to fail."

Got a business plan? If not, don't do anything else. If you don't know how to prepare a biz plan, don't try it.

[Roborph]

In this day and age, I believe great customer service can get you alot of business.  If you have people skills and a GOOD product, you'll do fine....

[Jordy]

I strongly recommend you heed Chas' advice. A business plan is crucial in many ways. It forces you to really investigate costs and helps you understand what you have to achieve to stay in business. Our business plan ended up being nearly 80 pages long. It is your bible and is always there to help you find your way when you get off track. No business plan, no business. Once again, good luck!

[ndabunka]

I have been considering opening a hot tub store with on of the top brands discussed on this website. I have the opportunity in a newly developed HOme Depot/Walmart mecca-- you know the ones that seem to draw people from out of nowhere to consistently spend their cash. Anyways, the city has one fairly large pool/spa store in an ok location and 2 others who give the whole industry a bad rep-- terribly disorganized,hole in the wall pool stores with hot tubs on the side. I would like to open a store with a high class image. Here's the rub-- I live in a small city(30,000) with a surrounding population of about 30,000 more in Canada. The city 30 minutes away has 130,000 with about 18-20 pool/hot tub stores. I think people want to buy locally and are wanting to do so but they have very little options. Would you open a store ? Looking for advice

Crazy - I also was recently in a similar position. I quickly learned that the startup cost were at LEST $50K OUT of Pocket ton run a year. You can floorplan other things but will need this cash base. You will need a bigger market.  The potnetial buyers in such a small market are minimal (i.e. not enough to support the business).  The "Sweet spot" of the market is between $5K and $6,500 so don't plan on stocking anything more expensive in such a small market if you have the other issues covered. The final issues are time and training. If you plan on doing this right, then you need to have the technical skills. Are you handy with tools?  If not, then don't do it.  If you can't provide 100% of your time to this effort, you also don't want to do this. The final thing is that you need a "Hot" area to sell from. I have been lucky in that we have a newly developed area to work with here that is the #1 tourist attraction in NC. Unfortunately, due to other reasons (wife not interested in owning a dealership), I am postponing my plans.....for now...

[Chas]

Unfortunately, due to other reasons (wife not interested in owning a dealership), I am postponing my plans.....for now...

This is a very important point. I have a wonderful wife who helps me a lot in our businesses. She does a pretty good job at 'Quickbooks Pro' and handles all the interaction with the accountant who does the rest.  She also has run one of our stores since we lost a key employee about a year ago.

She helps me plan, order, write checks, coordinate the staff, and she and I share the burden of ownership - sometimes that simply means that we understand that everything we own is on the line every day. Other times that means she knows when to take a number and promise that I'll call back.

I guess I'm saying that I wouldn't want to do it alone. If my wife wasn't by my side in this, I would either need a partner or I wouldn't do it at all.

[AmICrazy]

Just thought I would answer a few questions. I have received some personal replies and they have been very insightful. Obviously with a few more details I would heed even more advice. I currently run an aboveground pool business with two install crews- probably small time to some of you but pretty good for a 2 year old business- definitely have made a dent in the competition by offering a great level of personal in home shopping service- something not so common in the AG pool world. enough said re that.. hot tubs ...constantly getting calls and requests from customers wanting them and I currently refer them to another city with several hot tub stores for them to go to( I operate out of my home)I currently run my businesss on my own my husband has his own job-- I want to open the hot tub store and have an interested partner who currently runs his own successful business but is looking to start another one. We both don't need to do this but see the opportunity as a great one and if we don't do it someone else will. The city is I live in (north of Toronto) is growing and really only has one major competitor for me.
Hopefully these are few more details that will help heed even more advice. I'm sure I need to add more but this should help a bit.