Quote:
Originally posted by Stare At The Sun
Basically, I've been thinking about starting a business that sells Audio equipment, and accesories at about a 20% markup...I worked at best buy, and i know how huge the markup is on most stuff, especially car audio. So, basically, what all would I have to do?
What sort of liscense do you need?
Will the companies just sell to me pending I have said liscence?
Will my stuff come to me at a higher cost that stores like Best Buy, therefore, making me loose profits? If so, by how much?
I've been rolling around the idea of a business for some time...this just seems to be a niche i could get into. Any other questions, just ask.
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Do a little more research.
20% might SEEM high, but that needs to cover all of your operating costs. Labor, rent, utilities, insurance, etc. Retail margins are slim at best (yes, even at 20%).
So....
Maybe instead try to pick a niche, especially with a $3k starting budget. There's a reason you don't see many ma and pa electronics stores anymore, the big box stores put them under. Maybe focus on car audio to start with, or whatever you're most familiar with.
You will pay more than the big stores for the goods, since they have exclusive purchase agreements and purchasing power. So you'll need to offer better, more experienced service.
As for starting up your business, you'll need around $3-500 for articles of incorporation or a partnership/LLC agreement for attorneys fees. Don't get suckered into paying more than that.