Food and Drug Administration (FDA) Disclosure:

The statements in this forum have not been evaluated by the Food and Drug Administration and are generated by non-professional writers. Any products described are not intended to diagnose, treat, cure, or prevent any disease.

Website Disclosure:

This forum contains general information about diet, health and nutrition. The information is not advice and is not a substitute for advice from a healthcare professional.

Business Proposition

Discussion in 'Marijuana Consumption Q&A' started by EuIndo, May 6, 2014.

  1. Hey GC!
    This is not another "I want to start a headshop" threads. A little background first then I have some questions for you all.
    First, my location in not set. I was thinking Austin or San Antonio.

    Second, I have already estimated some costs and I have made a mock starting inventory (just paraphernalia and like-items so far.) i have each item planned out for buying and selling price, and quantity. So far just in pipes, bongs, grinders, papers, ect. It is 8,000. I did my "buy list" using many wholesale sites like srs and dejavu. It is a pretty extensive inventory with around 700 different items (with duplicates it is a lot more).

    Third- I have taken a few other costs into account. I have prices my shelves and like-items at around 4000, not including installation(I'll do it myself). Also security bars over the windows and door, and cameras+dvr for around 2500. I would list the exact numbers but I'm at a colleague's house.
    Although I did not price them, I estimated spending 2000 on a computer, software, monitor, keyboard, and mouse for business activities.

    Around 300 for a standard cash register and another 300 for a good receipt printer.

    2000 in signage and logo design.

    1500 for tobacco license ( is it necessary?)

    2000 for a Tv (60"), wall mount, and related cables.
    And 1000 for some klipsch speakers and a receiver.

    2000 for misc furniture.

    And 8000 for unforeseen costs (there will be a lot of them, I am anticipating.)

    So around 25,000 start up with is well within my budget. I plan on expanding my glass inventory to include more name brand prices so maybe 25,000 turns into 30,000. Anyway, it's an estimate.
    The actual rent and security deposit is so variable I did not include it but I'm guessing security deposit+ first and last month's rent is around 5 grand.

    I want to do this right. If there is anything you guys have to suggest then go ahead! I still have to get more stock like clothes, incense, sex toys, and other misc items.

    Question time:
    Is a tobacco license necessary? My research has led me both to a yes and no answer. Any thoughts?

    Is 7,000 enough in stock? This is obviously not the sale value. Using MSRPs for my items, I got to around 30,000 retail value.

    Is it better to buy from name brands or to do consignments?

    I was thinking combing a hydro store with it to bring in more customers. First, can two stores like this be joined or should they be separate?

    Liquid capital is no problem for me so I rather spend a lot of money to do it right.

    If I think of anything else I will post it.
     
  2. Wow, I cannot answer any of these, but good luck on your business!
     
  3. Wait if you are not opening a headshop, what is your business going to be? :confused_2:
     
  4. It is. His point was that he has pretty much everything figured out and he isn't some kid that wants to throw his life away thinking he can just open a smoke shop without any idea of what they're getting into.
     
  5. Pretty much this. I always laugh when someone posts something like that but they want others to do all their business planning for them.
     
  6. well what you said here is an ok start but starting a business requires MUCH more planning than that. 
     
    And I hope you're tolerant to financial risk, dedicated as fuck and don't mind working all the time at first. 
     
    Make sure to meet several head shop owners if you're serious about this, they probably are the best to give you advice. 
     
  7. If you're really set on opening your own business I would suggest taking a couple entry level business classes at a university, or community college if they offer it. My roommate is a accounting/business major and he plans on opening his own business as well (not a head shop though) when he graduates and ive taken a couple entry level marketing and economics classes and it really makes you realize how much goes into owning and operating a business.

    Hell if you don't have the time or money to take a few classes just find out what books they use and read them. I find that 99% of what professors talk about or put in their lectures are right out of the book anyways.

    Either way good luck
     
  8. do austin. im moving there in a few months, would be a loyal customer :)

    Sent from my SCH-I535 using Grasscity Forum mobile app
     
  9. could look into some ecig/vaping tools, I hear theres a large market there but everything is overpriced

    Sent from my SCH-I535 using Grasscity Forum mobile app
     

Share This Page