Potential Investor - New LFS in Katy (1 Viewer)

[RR-MAN]

Hey Guys,


I'm seriously considering opening a high end LFS in Katy. I'm looking for a potential investor. The person could be an investor and also be involve in day to day operations of the business. I want to partner up with someone from Marsh because we know how this hobby works. At the same time, someone with good credit and $25 K - $45 K in cash to invest in business.

Some of the products we will be selling:

-Elos Products including Elos tanks
-Deltec Products including skimmers/reactors
-EcoTech products LEDs, MP40s and MP60s
-Tunze products including pumps and controllers
-And many other products
-All types of Salt Water Fish & corals

If you have any questions/comments, please post here or just PM me. Thanks.

 

[fishboyt]

How about $100.00?

Its a great idea, quite a few people out in Katy and no fish stores.

 

[mwilliams62]

That is so true no LFS in the Katy area. I hope you can get one up and running it sure would be nice.

 

[Ostentum]

I would be willing to supply you with higher end sps and lps on a consignment basis. Wish I had the time to invest with you though, plus Katy is a little bit of a drive for me.

 

[Diesel]

I had the same idea a few years back, did some research on this with my banker. First the locations, a good location cost a lot. being only foccused on high end saltwater makes it even more difficult. I own a contruction/ hardscape company many high end about 75% but had to do some regular jobs on to to kill some down time.
But the dream is still there!

 

[gabe_j]

I'm down to supply colonies.

 

[fredG]

I would really be interested in investing if I had the money. Like Diesel said, it's a lot to think about. Just doing high-end saltwater is going to kill your potential for profit. Even Fish Gallery doesn't just cater to high end clients.

It's good to have the high end but your going to need to figure out a way to make profits in between clients for daily revenue. If you go to an investor, they're going to ask what is the projected ROI and I'm sure they're not going to like the numbers because there is not any daily income. Yes I know that the Katy area Median income per household is 72k but still most will probably not want to the weekly/bi-weekly/monthly expense to someone to keep their system. Also not everyone will be wanting to keep saltwater/marine aquariums. So limiting yourself to that will reduce profits as well. Also I would build your brand before venturing into just being a high-end business. A lot of factors come into play as well, location, location, location! lol

Right now I would build a business plan (you don't have to build one that is 20-30 pages long). You don't have to even build a business plan, just look at the expenses first...the Fixed and Variable costs. Then go from there...I might be giving you wrong information though (Computer Engineering Major) so I would hope others will knowledge and experience will chime and and correct me where I'm wrong and give more information.

 

[sergio nuncio]

I sent a private message to this fellow 2 to 3 day ago and have yet to hear from him or her..... I'm not exactly sure how serious you are...

just wondering what the hold up was or is...

Sergio

 

[RR-MAN]

Thanks guys for all the feedback.

I sent a private message to this fellow 2 to 3 day ago and have yet to hear from him or her..... I'm not exactly sure how serious you are...

just wondering what the hold up was or is...

Sergio

Thanks for your interest. Got your PM but I prefer someone who is a long time Marsh member. I got enough equity to start this by myself but it's nice to have a partner. Found few individuals who are interested but obviously I have to pick one individual.

 

[mike13oy]

John, I need a job. will work for you.

 

[DHoward]

I like the idea, but like the others said maybe a little of everything saltwater, or even some fresh water, but specializing in high end. Like I personally can't afford Mp10s or 40s, but a koralia and you got a sell from me. The more feet in your store the better, also gotta think about beginners that could potentially grow into big customers.

 

[BigRick]

Maybe he wants a high end so he doesn't have to deal with newbs lol. He'll send them over to petco

 

[gabe_j]

Strictly high end is tough. You have to have some regular sales to compensate for down time and to draw in new clients.a major part of the higher end business is dominated in this area.

 

[fredG]

Maybe he wants a high end so he doesn't have to deal with newbs lol. He'll send them over to petco

If you don't take the time to get people into the hobby, then the business will never take off. That's just like with people retiring, if you don't hire people to replace them then what? Possibly bad analogy but you get the idea Rick! lol

 

[Diesel]

The thing is a $20.000 + set up is high end to us but a beginner doesn't know that he thinks that a $500 setup is high end and it will grow from there. We all start like that, and there's nothing wrong with it. I'll still breed freshwater shrimp a small home business still more a hobby but if I figure out that the person who wants to buy some doesn't have much knowledge about CRS sss (Crystal Red Shrimp and the sss stands for the best in their grade) I won't even sell to them. I think John has a great plan working there and with positive input from us we hope in the future to have a really nice store some where in Katy. And I'll be there almost every other day of the week. Besides isn't that what every body wants, turn your hobby into a profession.

 

[BigRick]

you guys think to small. Houston is large market. You can run a high end only store. No difference if you have a hole in the wall furniture store or high end impoted stuff... quality may not be worth it but to the buyer. If you wanted to run a store to compete at every level you would have to have a larger inventory/more overhead. More money invested to get started right. I've run a few high end aftermarket performance auto shops so I do have management/business startup smarts. Believe it or not there are plenty of people with money to burn as long as they get what they want, and when it's rare they can feel all good.

 

[TiAg]

If you're in the right place at the right time I definitely think you could pull it off. Question would be how many people in the area have salt tanks, and since your overhead is going to be considerably higher then the LFS in lesser neighborhoods are you going to be able to be competitive enough price wise to compete with them and make it not worth the drive into town. I know I pay many times for convenience. Good luck with it, I'd thought about opening up a re-loading supply store out there myself since there wasn't one in the area, but never had the cajones to actually pull the trigger (pardon the pun).

 

[BigRick]

There is a reload store off of Jones close to cypress n Houston.

 

[tektite]

I know personally distance doesn't matter. If I know I'll get quality high end corals I'll go anywhere in Houston or outlying areas without hesitation.

 

[NarnyTheGreat]

+1 to Cat though it depends on what it is. If its corals then I will drive for it but if its equipment often times I would just order it online... maybe having an online faucet wouldnt be a bad idea too. I know that if our sponsors had more online stuff I would buy more from them. Some people have kids and it can be a pain to take them across town. There are a lot of stores on the north side I would like to go to but more often than not its just to much of a pain to get there.

In the end it all depends on what clientele you are going for and what type of business you want to have.