Opening A Dive Shop

[vnp514]

I've been following the thread dealing with "another sale gone....."

I plan to retire from my current job in 8 years(plus or minus). I have had plans for quite some time about moving over to the coast and running a small mom and pop dive shop. My wife and I plan to live at the shop and I believe that when the time comes, I could pay cash for our shop/home. I plan to make no, zero, zip, nada money on our business but I don't won't to lose my shirt either. I plan to start small. I'd kind of like a place where divers could come in for fills, shoot the bull, and maybe do some minor equipment repairs. I've never run a small business but I know several people who do. I expect to do a lot of research on this subject before hand. I thought this would make a interesting topic on this board.

Any ideas comments?

Pete

 

[ghosty_old]

Sounds like a fine plan. Hope everything works out for ya. Maybe you should apply for a liquor liscence so you can serve beer when they come in to shoot the bull

Good Luck
May the swartz be with you.

 

[DiveTub]

A really comfy lounge area with heaps of dive mags and a cappuccino machine.

If you have these two things in your shop you will do fine.

Also one thing I have noticed in my travels is Dive shops that let you take kit for a dive before purchase always do better.

If you can throw a pool in the back of the shop, makes teaching much more enjoyable and you can take clients for a try out dive.

 

[Rick Murchison]

Everything will cost double what you think it will.
There are infinite taxing agencies who want whatever comes through the door; they all have the perception that the small businessman has infinitely deep pockets.
There are occasional bad - really, really bad - "customers."
Other than those small detractors, owning and running your own small business is great fun and highly rewarding - and good customers make good friends, too.
Go for it.
Rick

 

[MikeS]

Pete,

My suggestion is that you write or have written a business plan. Use it to apply for a loan, even if you don’t intend to take the loan. If you qualify for the loan then your plan is probably sound; banks can not make a habit of loosing money. If you don’t, find out why you were turned down and take a hard look at the plan.

Just as in my “day time” job, where good engineers doesn’t necessarily make a good business persons, a good diver doesn’t necessarily make a good businessman.

Plan B – Go seek out Mike Ferrara. Buy him dinner and as many beers as you can get him to drink and get him to tell you where he went wrong, what he would do different. I don’t know him other than from the board but he seems to be a caring consciences diver/instructor that I’d love to take training with (but he lives way the hell out in Indiana, anyone what state that’s in?) and has given me some of the best advice (without being condescending). He has had the same dream you have and is now struggling with it; who better to ask for advise?

Mike

 

[Hallmac]

I plan to make no, zero, zip, nada money on our business but I don't won't to lose my shirt either.

That's a good thing. Two friends of mine own dive shops and this reminded me of a quote I once heard them talk about.

"If you want to have two million dollars at the end of two years Start with Five Million"

Good Luck!

Bye the way when you get started lets us know and I bring a group down and try out your services.

Hallmac

 

[vnp514]

Liquor license? LOL!! No, I don't think so. Cappuccino? I'm kind of a Folgers type of guy, but I could be flexible here.

MikeS- A very good idea on making a business plan! In fact, I know a couple of bankers and I'll seek their advise. Before I posted this to the board, I PMed Mike Ferrara. He said he'd get back with me. I would like to hear from any owners or previous owners.

RichM-I understand completely what you're saying! I figure 8 years of research will help somewhat, but there are always unexpected costs!

I've searched the net for info on this subject(opening a dive shop)-not a lot out there. Anyone know of some good books on running small businesses?

 

[Cave Diver]

vnp514 once bubbled...
RichM-I understand completely what you're saying! I figure 8 years of research will help somewhat, but there are always unexpected costs!

If you listen to several others on this board, there will be NO LDS in 8 years (or even 5 for that matter).

 

[Scuba]

vnp514 once bubbled...
Anyone know of some good books on running small businesses?

Try www.sba.gov, your local chamber of commerce or city hall can offer guidance on local resources you may be able to tap. A lot of info on the web too. As far as "dive shop" specific, try to find current or previous shop owners willing to offer guidance and others in the industry, both successful and not, to learn as much as you can.

Then decide if it still appeals to you, if yes, dive in and good luck.

 

[Genesis]

need a business plan.

For ANY business.

Until you write that, you have nothing. Once you write it, you can THEN take it to other people who you trust, preferrably some people with a lot of business experience both IN AND OUTSIDE THE FIELD (dive shop owners) and get their opinions.

Don't restrict your "please read this" list to dive shop owners. That's a HUGE mistake! In fact, you might even want a MINORITY of the readers to be dive shop owners - because the principles of business are easier to not screw up or miss when you're somewhat detached from the particular line of work.

Once you have that business plan polished and edited from all this, THEN you take it to a bank and get THEIR opinion.

Then, and only then, do you attempt to execute it.

BTW, once you open the doors you must update that plan on a regular basis, and pair it against what you actually DO with your business, squaring the goals and such, and revising as necessary. And it WILL be necessary!

If you don't know what goes into a proper business plan, there is software out there (for sale) that will walk you through the process of writing the original document. It will tell you what has to be there, and guide you on the level of detail.

One warning: About half of it will be financial statements in "prospective" format, broken down in pretty minute detail. Those financials will take a LOT of time. The marketing section will take even more. This is not something you can "bang out" in a weekend; the original plan for my company took me three months to write and tweak, along with the aforementioned advice, feedback and editing.

I would have never had a prayer of executing had I not written it.

The amazing thing was how close to being "on plan" I was three years later.

Put the time and effort into it.

The vast majority of small businesses that fail either don't have a real business plan or it was never cross-checked by others and is completely unrealistic.