small business start-up and loan questions

I have started working up a business plan to start my own ski and bike shop in the denver/golden area. i see a serious lack in the market that i know i can address.

I am wondering if there are any folks out there that have much experiance writing a business plan that would be interested in offering some help to me. I have a great business sense of it, but don't really know what a loan officer is looking for in such a thing. I have been working on the basics: business overview (vision statement), the nuts and bolts of the operations, and the start-up costs. i would be looking for someone to offer some expertise in polishing, formatting, and fleshing out the plan a bit. also, i need a lawyer to draft up a consignment contract (rontele...)

i don't have funds to really offer much in the way of money, but i can for sure offer the best deals ever on gear in the future if the plan gets picked up and the store gets going.

additionally, if anyone is into the financing aspect of it all, i'd very very very stoked to get a pm from you too ;) i need some info on what intrest rates and such i should be looking to expect, and how much i need to come up with to secure the loan and all of that.

thanks all

PM me your email and I can send you a "Building a Business Plan" template from the Colorado Small Business Development Center.

pm sent.......

hey Marsh..first off, congrats! From what I've seen on this board, you'll be a tremendous shop owner. I'd be happy to read through your business plan. I've got alot of experience with forming new businesses and I'd be happy to read through what you have and offer some suggestions that would have helped me when I was in your shoes. I can also pass along some good info in regards to my experience with SBA Loans, Bank Lines of Credit, Private Financiaing etc...I'll drop my email in a PM

I'm curious to know what it is you think is missing in the Denver/Golden area. I would be willing to do some "grassroots" research that might help.

I'm just here to say good luck! I looked into starting a marketing, web design and hosting company and after researching what it takes to start a small business and compete in a saturated market I got cold feet.

PM sent.

Looks like there will be plenty of people here that will be happy to help out. Time permitting, listen to as many ideas as you can and hopefully you can get some good ideas/points amid the obvious overlap.

If you bring an experienced and dedicated boot fitter to the Golden area, you'll have my support. You should put this forum down as a reference on the loan application. :biggrin:

Marsh,

First off for the business plan check out www.sba.gov. They have a tutorial and self paced activity called The Business Plan-Road Map to Success. Sounds kinda hokey but there is some good stuff in there. I would also tell you to set up a meeting with your local SCORE chapter(service corps of retired execs). Their services are free and part of the sba department. You'll get matched up with a retired person that will likely have some strong retail background and will be a HUGE asset as you go through this.

Lastly, good luck. There is no better feeling than waking up in the morning, grabbing the dog and heading to your OWN place of business. It will keep you up at night, you'll worry a lot more, even when there's nothing you can do or nothing REALLY to worry about, but it sure beats the hell out of working for some idiot that doesn't have the first clue how things should be done.

Jay

PM Sent

I was able to acquire some Venture Capital money in the past year with a business plan a friend and I put together while going to school and in the end had the VC come on board as a management consultant. Learned a great deal from him about proper business plan writing as we began to seek more capital - I'll send off my email address and maybe I can be of some help

Pm sent.

there is a whole lot to learn about having your own business but it is SO much more satisfying than working your ass off for somebody else.

plus i like gear so start a business

PM sent, hit me up.

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Originally Posted by teambigdave

Pm sent.

there is a whole lot to learn about having your own business but it is SO much more satisfying than working your ass off for somebody else.

plus i like gear so start a business

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Satisfying...maybe yes. depends on your priorities.

I wish you the best Marshal.

It will be the hardest work you've ever done. I worked for myself for 20+ years and I have to say that now I am happier and more fufilled pulling in an hourly wage working for others. Working for yourself means it's a 24/7 stress headache, now I can clock in, clock out and wipe my feet of the responsibilities. I definitely get more ski days now, more vacation time.

How are you going to feel when all the employees call-off on your "off" day that happens to be a powder morning...and you have to go in.

Just something to think about.

:)

Marshal- I'm currently in the MBA program at CU focusing on Entrepreneurship.... I'm pretty sure I've got more resources and connections than you'd ever need in the Denver/Boulder area. Shoot me a PM and I'd be happy to do whatever I can to help you out.

I was hoping that Alpenglow was gonna become my go-to shop once it moved in right down the street from me. But, after an EXPENSIVE mount that took too long and blah employee interactions, I decided that they wouldn't get my ski business anymore. The Bent Gate (they're cool) just opened up a new bike shop on Washington and Big Ring (THEY SUCK!...REALLY) opened up a shop on Ford. There is also peak cycles on 14th st. I would think a location more around the Denver West / South Golden area would be your best bet. But, I'm sure you are probably keenly aware of all of this already.

We ARE lacking a used store. So, some kind of swap area would definitely get people into the store. There used to be a used bike and sports store + bike mechanic in the Ruby Canyon shopping center but it is a dry cleaners now.

I don't know much about the business stuff. But I'd throw a website together for you for free and help you with the computer stuff.

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Originally Posted by smmokan

Marshal- I'm currently in the MBA program at CU focusing on Entrepreneurship.... I'm pretty sure I've got more resources and connections than you'd ever need in the Denver/Boulder area. Shoot me a PM and I'd be happy to do whatever I can to help you out.

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Don't you have some accounting homework to get through first before you tackle the business plan? :wink:

There is a ton of information available via CU. The biz library is open to the public and if you ask nicely and find the right guy (Joseph Yu), he can find anything you need on any subject.

Good luck with this.

I look forward to becoming a loyal customer!!!

Yeah Schral!!! Mek it happin!!!

I'll do whatever I can to help you along the way.

Yeah Marshal! Sounds exciting.....and scary too.....kind of like skiing.......perfect.

Marshal, having owned a bike/ski/board shop for years, I have LOTS of caveats to impart.

Be very careful of biting off more than you can chew, (especially after some initial success).

Create a purchasing budget, and stick to it!
(regardless of how drunk some rep gets you at interbike)

Have realistic projections of off-season operational costs.

Good golly, just PM me, I have a crapload of insights.

Good luck in the interim.

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Originally Posted by telechuck

Don't you have some accounting homework to get through first before you tackle the business plan? :wink:

There is a ton of information available via CU. The biz library is open to the public and if you ask nicely and find the right guy (Joseph Yu), he can find anything you need on any subject.

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Funny, I'm just about to do that right now. Good stuff.

Marshal - I am so proud of you for taking this step. It takes courage. But I can tell you that having your own busines is the coolest. Best of luck.

One thing I can offer in the way of advice. If you let your wife be 51% owner, you can qualify for federal minority bsuiness startup money. Something to think about.

First off good luck, owning your own business is both good and bad, but it is yours to with as you please.

I have run my own business for nearly twenty years, and am a complete failure when it comes to business. (I spent 8 years in college learning medicine, not accounting) I would get some good people around you (sounds like there are a few here on the board), especially a good financial planner/accountant. That is what has kept me in business, or at least prevented me from some big mistakes. A good lawyer to draw up purchase agreements, review leases, et cetera is also helpful. Find a local bank interested in you and your business, they can be very helpful. Avoid the big banks, they are worthless for small businesses, in my opinion.

What if we all just sent him our extra stuff and got him some startup inventory? Clean out the closets?

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Originally Posted by SheRa

What if we all just sent him our extra stuff and got him some startup inventory? Clean out the closets?

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I bet shmoe could help him out. :nonono2:

dang nice cheap shot.

but thanks for all the offers of help. actually super overwhelmed with all of the kind offers. i'll talk to all y'all here over the next bit. i;d love to hear what everyone's take is, and cull the best ideas from the bunch of ya.

thanks again!

Just here to wish you luck and provide encouragement - I'd be a patron for sure. And I'm sure you've already pinged Larry for his thoughts on this.....

Also - I can relate to and agree with the below 100% :nonono2:

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Originally Posted by smolakian

I was hoping that Alpenglow was gonna become my go-to shop once it moved in right down the street from me. But, after an EXPENSIVE mount that took too long and blah employee interactions, I decided that they wouldn't get my ski business anymore. The Bent Gate (they're cool) just opened up a new bike shop on Washington and Big Ring (THEY SUCK!...REALLY) opened up a shop on Ford.

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well having your own business can be interesting.... I like it and it has its advantages but it is not for everyone. I can say that in order to start my busines si had to work another job at night to keep the cash flow going. I gave up about 6months of my life to get my business up and going. many many..18 hour days.

i often think along the lines of what Telehoar said, and i miss punching a clock, but its not me and i wouldn't be happy doing it.

Be careful of partners but at the same time try to groom someone who can manage on there own. Have policies worked out about snow days, for instance If it snows more that 6" maybe you dont dont open untill 6pm. Remember to take time for yourself and family. I like how bentgate is closed on saturdays.

Keep in mind most SBA loans will require you to have a good percentage of capital to secure a loan. Wether your putting your house up or you have 20K in cash. If you have 20-25% of the startup capital you should be in good shape. Dont be discouraged by being turned down, i can gurantee you will be, keep knocking on doors and it may happen. Start Looking at retail space and see what it costs figure between, $24-$34 per square foot per year for good retail space, your also responsible for all tenant improvements, if your lucky you might get them to cover 15% of construction costs, and even luckier if they roll it into the lease, even super lucky if the space is ready to go.

unaccounted for overhead will blow your mind, electric, phone, commercial liability insurance, internet all twice what you would spend at home, because your commercial, advertising is insane, get some pricing on what it takes to run a n advertisment in the paper or even a little 3x5 in the yellowpages. make sure to try to account for everything beforehand, banks do not like you to come back and ask for more...and BTW a big mistake in most peoples business plan is to not account for paying themselves...

also if your female they want to see what about your plans for motherhood (we ran into this when starting my wifes business).

good luck, ask alot of questions and work hard

You may want to offer the best deal, but consider the obligations of adhering to structured retail prices during "in season". If you fall below minimum pricing, you risk losing vendors because you didn't adhere to their strict pricing policies, especially within the ski market- boots and skis in particular.

While I admit, there certainly is a market lacking in the Denver area, Golden is not the place I would look for two reasons. First, Golden, while growing at a fast pace, cannot support the type of growth you are looking for in a business- yet. Bent Gate and Alpenglow are already growing at a tremendous pace and have plans for continued growth. Second, think about their existing buying power. Much of Bent Gate's success is based off their web sales. Unless you go into that market with shit tons of cash, there is no way you can garner the same type of margins they acheive. Not to mention trying to get a rep to open you up as a dealer without risking their current business with Alpenglow (Christies) or Bent Gate. Keep in mind most of this applies to ski industry- I've been in the bike industry, too, but not as a buyer or a rep. But I'm pretty sure distribution rules may still apply.

I highly suggest looking into metro Denver. As a rep, I am still amazed that no one has come in and taken that specialty market. It's ready for the right shop. Just be prepared to spend a lot more than you think. And be prepared as 'the little guy' to compete with the lower prices that the big boxes can afford to offer. You may win some sales up front by offering a lower price, but in the long run trying to compete with them will cost your money and your business. Think about all the shops that used to be in Denver and why they closed their doors.

The good news is word will spread around here like wildfire. If you pick your product right, and offer something truly specialized and unique that the big guys don't want to touch- then you may have yourself a winner. I think you will have folks fishbowling at your doors before you can even open them.

Good for you and best of luck!

^Jax provided some great thoughts, as did many others.

I don't have much advice to offer regarding building a business, but I do know a thing or two about branding/marketing/publicity...something you'll want to think about at some point down the road.


Oh, and I'll definitely patronize your shop...especially if it's in Denver.

good advice here. i would add that you _must_ control your real estate. i know some folks here who started a shop, busted their ass and now have to move because their jackoff landlord doubled their rent. so, if you must lease space for financial reasons, get renewal options out the yingyang. maybe one of the lawyers here (colorado based, for obvious reasons so not me) can send you a form with the typical rent bumps etc... so you know how the deal works in a commercial lease.

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Originally Posted by Jax

You may want to offer the best deal, but consider the obligations of adhering to structured retail prices during "in season". If you fall below minimum pricing, you risk losing vendors because you didn't adhere to their strict pricing policies, especially within the ski market- boots and skis in particular.

While I admit, there certainly is a market lacking in the Denver area, Golden is not the place I would look for two reasons. First, Golden, while growing at a fast pace, cannot support the type of growth you are looking for in a business- yet. Bent Gate and Alpenglow are already growing at a tremendous pace and have plans for continued growth. Second, think about their existing buying power. Much of Bent Gate's success is based off their web sales. Unless you go into that market with shit tons of cash, there is no way you can garner the same type of margins they acheive. Not to mention trying to get a rep to open you up as a dealer without risking their current business with Alpenglow (Christies) or Bent Gate. Keep in mind most of this applies to ski industry- I've been in the bike industry, too, but not as a buyer or a rep. But I'm pretty sure distribution rules may still apply.

I highly suggest looking into metro Denver. As a rep, I am still amazed that no one has come in and taken that specialty market. It's ready for the right shop. Just be prepared to spend a lot more than you think. And be prepared as 'the little guy' to compete with the lower prices that the big boxes can afford to offer. You may win some sales up front by offering a lower price, but in the long run trying to compete with them will cost your money and your business. Think about all the shops that used to be in Denver and why they closed their doors.

The good news is word will spread around here like wildfire. If you pick your product right, and offer something truly specialized and unique that the big guys don't want to touch- then you may have yourself a winner. I think you will have folks fishbowling at your doors before you can even open them.

Good for you and best of luck!

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I agree with your assessment of Golden, thats kinda what I was trying to say. But, Bent Gate in terms of skiing isn't in the Alpine market (they do do pretty good tunes though). Alpenglow has the lock on Boulder ski traffic (PERFECT location IMHO). But, we don't have a core shop anywhere West of the city. If you opened something up near Denver West / CO Mills with easy access from 6th and I70 you would totally get the business. There a are real skiers in Denver that want to go to a place that isn't a chain. I want to know that if beer or a bud accompanies my skis when I drop them off I'll get preferential treatment and remembered the next time I come in (and not get the cops called on me). We also want a shop that carries skis from the smaller companies and that doesn't lag behind the trends of shape and fatness. BIG skis are hard to find in any of the suburban stores and that makes me really distrust letting them mount or work on them. It also seems like the people that work at a lot of these stores aren't really that INTO skiing/riding either.

High-end custom stuff down one side of the shop...

well priced good used gear down the other.

Basically TGR gear swap in a well managed storefront with helpful employees

That would be sweet.
Hunter

I thought about doing the Mulyi-Multi quote, but I'll just leave it at - There has been a lot of good advice. One book I would recommend reading before getting too deep into this is:

Getting Real

Its a PDF book that you can download and print out. I just put mine in a 3 ring binder. The guys that wrote it are aquitances of mine and in my industry (web applications technology), but do NOT let that scare you. The book is absolutely worth a read and does a phenominal job talkibng about starting a business with the least possible overhead and captial. Truly applicable to any industry.

Long story short, you shoudl get out of it with the realization that just getting IN is the most important thing. You can always buy your own shop building, you can always expand, there will be lots of time to grow and adjust. The most important thing to do initially is get in the game.

Quote:

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Originally Posted by Jax

You may want to offer the best deal, but consider the obligations of adhering to structured retail prices during "in season". If you fall below minimum pricing, you risk losing vendors because you didn't adhere to their strict pricing policies, especially within the ski market- boots and skis in particular.

While I admit, there certainly is a market lacking in the Denver area, Golden is not the place I would look for two reasons. First, Golden, while growing at a fast pace, cannot support the type of growth you are looking for in a business- yet. Bent Gate and Alpenglow are already growing at a tremendous pace and have plans for continued growth. Second, think about their existing buying power. Much of Bent Gate's success is based off their web sales. Unless you go into that market with shit tons of cash, there is no way you can garner the same type of margins they acheive. Not to mention trying to get a rep to open you up as a dealer without risking their current business with Alpenglow (Christies) or Bent Gate. Keep in mind most of this applies to ski industry- I've been in the bike industry, too, but not as a buyer or a rep. But I'm pretty sure distribution rules may still apply.

I highly suggest looking into metro Denver. As a rep, I am still amazed that no one has come in and taken that specialty market. It's ready for the right shop. Just be prepared to spend a lot more than you think. And be prepared as 'the little guy' to compete with the lower prices that the big boxes can afford to offer. You may win some sales up front by offering a lower price, but in the long run trying to compete with them will cost your money and your business. Think about all the shops that used to be in Denver and why they closed their doors.

The good news is word will spread around here like wildfire. If you pick your product right, and offer something truly specialized and unique that the big guys don't want to touch- then you may have yourself a winner. I think you will have folks fishbowling at your doors before you can even open them.

Good for you and best of luck!

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^^^All good info and advice. I agree about finding a little specialty niche. Friends of mine run a bike shop here in soCal. Just a run of the mill shop, mountain bike, BMX, tools et al, and that is good for cash flow, but they also have the best pro road bike shop in soCal, and build more $5,000+ road bikes then you can imagine

whatever you do, make it cool, with a lifestyle part of the shop and all, so you can keep people hanging around....isn't there a shop in Seattle that was just profiled in Powder that was like that?

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Originally Posted by Tap

whatever you do, make it cool, with a lifestyle part of the shop and all, so you can keep people hanging around....isn't there a shop in Seattle that was just profiled in Powder that was like that?

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EvoGear.

In Portland ExitRealWorld is similar (but snow/skate only no skiing) at least when browsing Exit they seemed to get more walkin traffic and more people willing to drop full price on accessories/fashion items than your average shop.

Check out the leading edge class at the SBDC in Boulder or Longmont. It's a 10 week class that covers the basics. Their goal is for you to have some type of business plan at the end of the series. And while attending the class you can attend the other business classes at the chamber of commerce for free. At the end you are eligible for free consulting time with various consultants.

I took the class last spring and it was worth the effort. Much of it is common sense, but it gets you thinking about all aspects of a business. I've now got a lead consultant and am working through my free consulting time.

Quote:

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Originally Posted by 300hp

High-end custom stuff down one side of the shop...

well priced good used gear down the other.

Basically TGR gear swap in a well managed storefront with helpful employees

That would be sweet.
Hunter

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hammer, meet nail head

thanks again all. lots of good stuff here. really appreciate it

i've got alot of work to do here, and will be hitting a bunch of you guys up when the time arises.