Is it worth it to open a new store?

[optician2008]

Hi optician2008,

The Australian economy is booming. We have had 10 years of strong economic growth. Japan and china buy 60% of the raw materials they use for their manufacturing from Australia. This has caused a large boom in the last few years. 5 years ago people were buying cheap glasses, now they will only buy expensive ones. New optical shops seem to be doing very well. There is a worker shortage. We cannot find an optician or even anyone willing to do a traineeship. Factories are importing chinese welders as they cannot find local welders. Truck drivers and building workers earn over A$100 per year - theses are jobs with very little training required.
If America goes down, then China and Japan go down, and Australia goes into recession too. Currently the economy is booming despite bad signs from America.

I would be wary of opening in an area without foot traffic unless it is within walking distance of an area where lots of people are on foot - ie. a shopping strip. In my experience people don't stop their cars just to browse at glasses - no matter how prominent the shop. However, I have a friend whose shop is on a busy road and there is a shopping centre within walking distance. People know he is there from driving past and then they walk to his shop.

Sounds like I should move to Australia!

[optician2008]

I did everything wrong, but the illusion is that I did everything right. That's why everyone must fail the first time. Don't you think I did the same research you are doing? Everyone told me how to succeed and how not to fail. But when you haven't felt the sting of failure, you are too arrogant to hear. Sure, you might listen, but you won't really hear it.

You are obviously smart. Maybe too smart for your own good. People who are intelligent will sit down with a successful businessman who is half as smart and they will think "if this idiot can be successful, then so can I." And they will proceed to throw their money down the drain with a smile on their face and a sense of urgency.

Landlord,

What would you do differently?

[LandLord]

Landlord,

What would you do differently?

I could have minimized my risk by having partners.
I could have lasted longer if my expectations were more realistic.
I could have gone further if I had 10 times as much money.
I could have improved my chances by buying a franchise.
I could have attracted more customers by being more unique.

[Johns]

I could have minimized my risk by having partners.
I could have lasted longer if my expectations were more realistic.
I could have gone further if I had 10 times as much money.
I could have improved my chances by buying a franchise.
I could have attracted more customers by being more unique.

What would you have used the money for? Would it be a stretch to assume it would be operating capital?

Starting a business is like buying a horse. You can get a decent horse for $1,000 - $5,000 range, and I've had many people offer me horses for free. The thing to remember is how much grain the horse eats, how much straw for bedding it needs, how much hay it will consume, and how much manure the consumption of that hay will produce. It can easily cost $3k a year to maintain a free horse.

Starting the business is the cheap and easy part. I love starting them because they really don't take that much money. It's keeping them alive during the first 3 years that's the challenge. I'd say the biggest reasons for new business failure is not enough operating capital, coupled with unrealistic income projections.

[abocandy]

Do you have business experience?

Can you act as the book keeper, buyer, cleaning lady, negotiator, marketing department, ad designer, IT department, repairman, salesperson, AND an optician? And if you can't, can you afford to pay people to do all of these jobs?

Can you afford to lose every nickel you have?

Can you give every minute of your time to it? Businesses can be more demanding than kids!

Will your family stick by you and not give you crap because they never see you unless you are at your store?

Are you prepared to not take a vacation or possibly a day off until the business can run on its own?

CAn you do it, not for the money but for the love of optics?

What can you do differently than what's already being done? What kind of market research have you done to see if another optical is needed? (asking your friends doesnt count. rarely will they end up buying from you)

Do you have a business plan? Does it have an exit strategy?

Usually, failed businesses can't answer at least one of these questions. My MIL didn't have a business plan, didn't know marketing, couldn't do IT and kpet changing the rules of the game. Her's wasn't an optical business but the questions are still the same.

These are legitimate questions to ask your self. However I went out on Faith,and I love Optical so much, I really didn't want to do it the Sams way.
I have mush more to offer a pt. SO I say follow your heart if the wallet will stand it...

[Bill West]

You're not ready, and neither was I when newly graduated.

Get a job and make mistakes at someone else's place for a few years, then see if you still want to do it.

If it was easy, everyone would do it.

FROM"THE MASTER".:bbg:

[The Vision]

There are wheelbarrels full of money to made as an optical store owner, like any other business, if you do your homework, have a beautiful store in a solid location with great product that you believe in and have the skills and taste necessary to accomplish the task. For the first 5 years you will be building up your base clientele so be prepared to weather the storm and stick with it for the pot of gold at the end of the rainbow. High profits are the reward for risk-taking.

Above all, the product you carry in your store defines the store so do not understimate the power of having the right frame lines. Go into all of the other high end optical stores in the area and gather some some solid intel about who has what and where. When you figure out which lines you want to carry, get in touch with the companies and make sure that they will sell to you. Just because you are opening a store doesn't mean that wholesalers will show up on for the date on Saturday night and lift their skirts. Beyond the styles of the frames themselves, be sure to choose companies that have an effective exchange policy so you can minimize product that you will be stuck with down the line and have to put on sale if the relationship goes bad. Define your audience and carry the frame products that support that audience. Don't try to carry too many lines as you cannot be all things to all people. It's better to be the best place to find products just for the group that you are trying to capture.

At the risk of overstating the obvious, your understanding of the fashion and technical side of being an optician, people skills and personality and store location are paramount. Even if it's funky, make your store high end because that's where the money's at. You will never be able to compete with discount low-end (nor would you want to) and the middle-of-the-road road never goes anywhere but to the middle.

The design of the store should include enough sit-down dispensing/selling tables. No one wants to stand for the process and they will buy more if they are comfortable. Clients tend to walk around and look at things to get a basic understanding of what you carry upon arrival, but high end service requires your involvement. When you sit someone down (a serious client), give them a small chilled bottle of water (a 25 cent investment) and (after sizing them up) bring the product to them, how can they resist you? It's harder for them to have an exit strategy when they are planted, comfortable and being waited on. The way the frames are displayed is another main thing to consider: you do not need to display every frame that you carry - with tasteful displays, less is more. Consider visibly displaying maybe 50% of the product. Have the store set up with drawers that hold frames out of sight (below the visual display is best) and roatate the displayed product monthly. That will ensure that every time the customer comes back, it looks like you have new product. When buying, buy less styles and multiple colors of each style you choose. Nothing looks worse than a collection of random singles. It makes it look like the better colors sold and you're left with the colors that nobody wanted. Keep everything meticulously clean - you are selling really expensive merchandise and it should look that way. Your employee's downtime should be spect cleaning.

If you can't afford the edging equipment immediatelty, send everything out. You will be hurting your profit margin, but you can always get the lab going when you can afford it. Best case scenario is to have your own edging on site for speed, quality and cost-savings. Just be sure that your store is expandable and has room for it when your can afford it. There is so much money to be tied up in the purchase of opening product nowadays that a fully set up store requires some serious cash.

Good luck, kid!

[obxeyeguy]

Beyond the styles of the frames themselves, be sure to choose companies that have an effective exchange policy so you can minimize product that you will be stuck with down the line and have to put on sale if the relationship goes bad.

I disagree, buy smart, don't pay for the "right" to return the product.

Consider visibly displaying maybe 50% of the product. Have the store set up with drawers that hold frames out of sight (below the visual display is best) and roatate the displayed product monthly. That will ensure that every time the customer comes back, it looks like you have new product.

Huh? Hide 50% of my inventory. Let me guess, I should bring it out of a drawer that is hidden. Sorry, I don't buy into that theory. Is this the ONLY suit you have? No, No, we have plenty more folded up in these drawers. Not my idea of a sucessful optical shop, or any business for that matter. JMHO

[THE MEB]

bottom line is this: when you hear the sound of one hand clapping, you will find the answers to your questions, grasshopper

[EYEonTX]

Where Can I look up optical stores business for sale?

[CME4SPECS]

I disagree, buy smart, don't pay for the "right" to return the product.Huh? Hide 50% of my inventory. Let me guess, I should bring it out of a drawer that is hidden. Sorry, I don't buy into that theory. Is this the ONLY suit you have? No, No, we have plenty more folded up in these drawers. Not my idea of a sucessful optical shop, or any business for that matter. JMHO

I couldn't agree more. Excessive inventory will kill you especially when you are just starting!

[The Vision]

I couldn't agree more. Excessive inventory will kill you especially when you are just starting!

We're not suggesting excessive inventory - just not to display all of what you have and have room for expansion in drawers.

[CME4SPECS]

That would be called excessive. If you paid for 1000 and only needed 500, you have twice as much as you need. I bet your accountant would agree.

[The Vision]

That would be called excessive. If you paid for 1000 and only needed 500, you have twice as much as you need. I bet your accountant would agree.

Is your accountant in charge of displaying product in your store? Because if there's something that accounts are generally noted for, it's frame displays in optical stores.

[chip anderson]

Just found out the girl who cuts my hair (as well as being one of my best monthly Versace customers) makes over $100,000. You might want to look into opening a salon instead. And she doesn't even own the salon.

Chip

[LandLord]

What does she give with a hair cut?

[The Vision]

What does she give with a hair cut?

A blowout is included.

[chip anderson]

NOthing but a smile. But she does have lots of attractive things to look at. Actually it's basicly a woman's hair salon two doors down from my shop and I think all six ladies working there do about as well. This one is the only one of the group that is outstandingly attractive though.

I didn't tell you about the topless shoeshine girl in Houston that did very well too.

Chip

[THE MEB]

does she shine your shoes so shiny that the reflections off your shoes appears as red bumps swaying too and fro?

[chip anderson]

Believe it or not even when I lived there as a late teenager, I never went there. But I am told the line went around the block (which is probably why I never went there).

[Crazy-bout-Optics]

So . . . As wonderful the thought of having a topless shoe shiner is to me (Insert Smirk here ;-)

I do have to say I agree with "The Vision" about displaying frames. If a store needs 500 frames, then buy 500 frames. This does not, however, mean that all 500 have to be displayed. Think of how cluttered it would be even if you tried.

The one thing that has been consistent about every high end optical Ive either worked at or been to has been clean, streamlined, neat displays. No clutter whatsoever. So I think it smart to not display everything, and if the optician knows their inventory, can easily pull a frame out that the client will like.

Nothing worse than displaying everything and being asked "Is this all you got". How many of you have TONS of frames in your store and still get asked this very question.

And I agree that to the casual observer, it will look like you are getting new stuff in if you rotate pieces out every week or so.

All in all, I see nothing but benefits from this thought process, and hey, even Lux has under stock and does not display every frame. How many Billion did they profit last year? Hm, so if its good enough for Lux . . . ;-)

[MarcE]

So I think it smart to not display everything, and if the optician knows their inventory, can easily pull a frame out that the client will like.

Nothing worse than displaying everything and being asked "Is this all you got". How many of you have TONS of frames in your store and still get asked this very question.
All in all, I see nothing but benefits from this thought process, and hey, even Lux has under stock and does not display every frame. How many Billion did they profit last year? Hm, so if its good enough for Lux . . . ;-)

Yes, but a new store can't afford it. That's the only issue.

[Crazy-bout-Optics]

The last place that I worked at, which recently closed, we had a little over 450 frames in 6 cabinet displays, and it was a small store. It also looked cluttered at times, and many a sunglass lens got scratched from trying to get it out of the case.

500 was an arbitrary number. It really doesn't matter what the number is, even if you buy all that you can afford, the point was that you dont have to display it all, and that this may actually work to your advantage.

If you can't afford 500 frames, don't open a shop up as I don't think it will offer the variety that people expect, and I am sure with anything less you will get asked, "Is this all you have?"

[Chris Ryser]

Actually if I would open a store at this time, with recession here or coming, I would do something the other majority of opticians are not doing.

I would open a so called basic store..........and advertise repairs, taking the old lenses from a broken frame and put them in a new one, without applying pressure to patients to purchase a whole new one. I would tint an old Rx for sunglasses, remove or cover up scratches,

All this to attract people which most of them have experienced high pressure Opticals. This could be a concept for these times. When the tide turns again you can go high end if you want.

[LandLord]

Actually if I would open a store at this time, with recession here or coming, I would do something the other majority of opticians are not doing.

I would open a so called basic store..........and advertise repairs, taking the old lenses from a broken frame and put them in a new one, without applying pressure to patients to purchase a whole new one. I would tint an old Rx for sunglasses, remove or cover up scratches,

All this to attract people which most of them have experienced high pressure Opticals. This could be a concept for these times. When the tide turns again you can go high end if you want.

Chris
The generally accepted principles of business agree with your first move, but not your second. It is almost impossible to go high end, once you are established as basic.