Let me step into the dragons Den

[BIGGS]

Ok so lets imagine i am stepping into the dragons dens, and you guys are the dragons (though im not looking for money or investment...just advice for now)

I am a 29yr old male living in cape town and working as a GM at an engineering manufacturing company. I enjoy my work but every single day I dream about having my own business, and each day I dream, I lose a day I could have been running my very own business, as small as my ideas may be.

I would love to start a business in line with something I love, I love animals and I love food.

IDEA 1 - PET/AQUARIUM STORE: initially suppose to be an 'aquarium' store only but in the area I am eyeing, an aquarium store would not be enough as a large chunk of the community have dogs and Birds, the idea is now then an aquarium store which stock also small animals (cats/hamsters/rabbit) and a range of birds, and accessories, food and toys for all pets. The only issue with this one is start-up capital, it would require a large sum, while I have saved a sum, and intend to sell one of my cars as well, this will still not be enough, so would have to maybe look at investor or loan or or...

IDEA 2 - TAKE AWAY/FOOD: the idea is solid, the menu solid, the concept is there, but location is difficult one for me here, i have looked and looked and considered again and again but cannot decide on a suitable location for this type of business.

IDEA 3 - CONVENIENCE STORE(MINI SUPERMARKET): I have identified an area which requires this kind of business, the issue with this one is finding premises in this area, i am still looking however.

please bear in mind, these are ideas, who knows, i may end up opening a barber shop, the ultimate plan is to own my own business. i hope to start something up without leaving my current job just yet. i have a wife who is very much capable of managing a business for me,i will be available for the business after working hours and on weekends.
i would like some advice from the people here who have successfully started small businesses. what to look out for, what to avoid, i am very afraid, but i promised myself i need to start something before i am 30yrs old, infact i should have started long ago but every idea just does not seem right.

thank you all

[IanF]

Biggs
I would look at what lifestyle you want and try get the best fit business around that. The main factor being do you want to be on call 24/7 which some businesses require. I am next to a 24/7 pizza shop and only see the owner in for 2 hours in the morning. Then look at your interests and skills which you have done.

Anyway good luck.

[HR Solutions]

Biggs - you seem to have that drive and ambition to succeed. Good for you.
Im sure you will receive many tips and ideas to go forward, but if I may suggest one or two. Do a bit of market research into the area/product etc. Do something that is in demand with the public and then do it in the correct area. Be prepared to throw everything into it and work hard. Do something that you will enjoy doing - there is nothing worse than working at something and don't really enjoy it. And remember that having you own business is hard work - there are a lot of "hidden" things which you might not realise. But if you do it right you can have fun doing it

[wynn]

Perhaps start an online aquarium supply business run from home, no need for a web site just yet but use facebook to all your friends with the same hobby and ask them to like it to all their friends in the immediate area.

Beauty

No unnecessary overheads beside purchase of stock, therefore markup will probably still leave you cheaper than the local suppliers and supermarkets,
personal knowledgeable service and information to clients,
no advertising costs to start,
operate after hours which will probably suit your clients anyway,
start small so you can afford the immediate costs without going into the deep hole of debt.

Operate this way to start then add products until you are in a financial position to leave your day job, start a website to increase your customer base.
You can probably run this from home permanently even when it becomes your sole means of income, the saving on rental and other overheads will go a long way to being the base of your income, perhaps a second hand container in the back yard for storage when the garage gets too small.

Good luck!

[BIGGS]

Thank you all so very much for the feedback and advice.
@IanF, yes I understand what you're saying, and I am certainly a 24/7 person, if im not working, then something else but im not sleeping, it is my curse. I am a mechanical engineer, offer me an aquarium store or pet store making R30000 per month and offer me a Senior Engineer position offering R40000 per month, I will be in that aquarium store faster than you can say Fish.

@HR Solutions, thank you for the kind words and the heads up, i am however not just ready for the hardships of owning ones own business, im excited for it, i really am.

@wynn, The Online store did cross my mind, i didn't however look much into it, thank you the tips, advice and ideas, i will certainly explore a bit more this avenue and wee if i can make it happen. nightmare would be livestock i guess, i offer a 14 day money back guarantee on goldfish, and 14 minute money back guarantee on all marine life, lol just kidding. i wonder... for business with no premises (so run from home), no website (so using facebook), what would the best sort of business registration option for this be? considering the fact that it would hopefully grow in the future

Thank you all again

[wynn]

what would the best sort of business registration option for this be? considering the fact that it would hopefully grow in the future

Put your head down and go for it, keep your day job and use your personal contacts and social media to start the ball rolling.

Sole prop 'Biggs' trading as 'Big Fish' to start, if it takes off you can then do the registration thing (Big Fish Pty Ltd) and register for VAT if you have to but don't incur the unnecessary expenses to start, shoe string to test the water and do the research, find out what other aquarium owners are looking for and fill the demand.

The only reason to form a Co when you start is to put a layer between your private life and the business if you intend incurring debt but most suppliers and finance houses require personal liability anyway so it don't help much.

Of course you can go big but you will also probably go bust without the necessary research.

They say the butterflies in the stomach when you start the business is addictive!

[BusFact]

Thank you all so very much for the feedback and advice.
@IanF, yes I understand what you're saying, and I am certainly a 24/7 person, if im not working, then something else but im not sleeping, it is my curse. I am a mechanical engineer, offer me an aquarium store or pet store making R30000 per month and offer me a Senior Engineer position offering R40000 per month, I will be in that aquarium store faster than you can say Fish.

I tend to be a bit more pessimistic / realistic Have you done the maths on running a shop where you intend to come out with R30k a month? Keeping in mind that rent in a retail centre could be around R20k, then a shop assistant (you can't be there the whole time) - that's another R10k, then insurance, security, bank fees, accountant fees .... soon you're up to another R10k.

So your business needs to generate R70k a month - that's gross profit, not sales. I don't know what the aquarium market margins are like, but lets assume you make a 100% mark up on your products. Can you sell R140k worth of fish / aquariums every month?

I don't know the answer, but you'll need to.

I think traditional retail is a tough market.

[HR Solutions]

It seems like fish is definitely your thing then ......... reminds me of a short motivational video called "Fish" - Catch the Energy. Release the Potential. Not quite about aquariums but very cool to watch it - it will inspire you. Its only about 10min long.

[reuphk]

It seems like fish is definitely your thing then ......... reminds me of a short motivational video called "Fish" - Catch the Energy. Release the Potential. Not quite about aquariums but very cool to watch it - it will inspire you. Its only about 10min long.

Excellent watch. Definitely check this out (some versions on youtube, try this one https://www.youtube.com/watch?v=-ZKiJejNRtw)

[reuphk]

on the business...

I can hear the entrepreneur (and youth) in your sentiments, and this is really great. I also think about the profile of person who is a GM at a young age and a mechanical engineer.
The question I have, considering your (1) already workaholic nature - very good for entrepreneurs (2) technical abilities and (3) love of fish...
Would you want to buy a PET/AQUARIUM STORE or build one from scratch? I would suggest that you build it. On this basis, the next question.
Would you open this in a centre, or just off the main areas i.e. on a plot. I would suggest on a plot where you can start with a small base, and then grow it larger (think Plantland and future diversification)
This could bring financing in from the bank to finance the plot as residential initially, plus of course the benefit of having a property asset.

Biggs, you leave the impression from your mails that you would be happy running a small business, but considering your track record based on age and achievements, I would also suggest that this will only keep you happy for a while. Not knowing you, I might be wrong, but consider...
Would you build a small, one-man business or a franchise? I would suggest, setup the business from start to become a franchise and you have the potential for growing a large franchise later.

This is all from this Dragon
ok, one more thing... HAVE FUN!