Business help please
 

I have a retail location which I've held together through tough times and it has strengthened and done pretty well (at least it's still open).
I have an opertunity to get involved in a business like to mine across town but in a better location, mines not great but paying bills.
I can get more sales at this new location and higher end sales at that. Overall it's a great opertunity for advancement.
I have employees I could repurpose and management help there as well. I do technical work at my current location and can do the work for the new location and easily suck up that need.
It's smaller sq ft so I wouldn't be able to close my first store and move it there it's just not big enough. I could close my current location and do work from a satalite shop if need be but then I feel I'd be wasting money as I still make sales I'd loose doing that.
I feel like I can't pass this up. I'm only 45 so it's a good time for it.
So my option really is to have both stores and run them both with the help of some skilled employees I trust. It's not expensive, I'd need more inventory for the new store that I don't have, and I think I could figure that out as well.
What am I forgetting?
It's a Jewelry store and we do everything. I do lots of trade work for locals in the industry.
I'm not the brightest bulb but smarter than most the duds out there. What am I missing?
I hate big gambles but also don't like missing the boat.

Do you personally run your current store 100% of the time it is open? Or do you already have someone you trust on occasion?

Go for it! You sound like a pro.....what could go wrong?

I have two girls I trust to be there when I need to drive the pcar out of town. They're capable and smart women. Trustworthy. They care about my bottom line.
One is full time the other part time wanting more. She's excited to fill in the gaps.

What do you mean by 'get involved'?

Partnership? Then I say hell no!..... or are you buying/starting a new store?

Good question. I'll own it but the option is there for partnership. I'm too selfish to partner up unless it means making someone care more about success. Tell me about good and bad of partnership.
It's an existing store or I just would not be intrested at all. I bought a store years ago that existed and would never do any other way. Starting up a store is seriously expensive.

I am not to in tune with the jewelry business and not sure exactly how much you create or do in house but from your post sounds like maybe you have that capability.
Being a person who runs a small business I would look at keeping the current
location and adding the second. The first could be more of a wholesale, discounted items that are maybe not current or selling well and design repair location. The second new location could be your "retail" location fed by the wholesale location keeping only high end products you have that fits the locations market.

If the new location is a partnership I would suggest a strong written agreement by a professional that spells out every last detail.

Good luck on what ever you decide!

My current location is not a great neighborhood but next to one. The new one is in a really nice outside shopping mall. It's high end and they need the jewelry store. There is only the one. This is too good to be true.
I design jewelry so there is nothing I can't do and this new store would more or less be supported by the old location as its a heavy technical design and repair facility. I do work for many stores and this one would be more profit when I do the designs for it. I'm talking myself into it. Only problem is lease. I don't have heavy liquid assets and they might need that.
Who knows about leasing companies and basic requirements?

Are there vacancies near the new location? If so, the landlord may bend over backwards to keep a jewelry store there. Having a store go dark hurts the entire mall area.

If the mall is full, you may have less wiggle room for negotiations, but the one thing I know for sure, the landlord wants to keep the doors open.

I'd recommend you work with a good attorney to help with a purchase & sale agreement. Is the business you're looking at operated as a sole proprietorship, or is there a legal entity involved? If a legal entity, you have the option to purchase the entity as a whole, or just the business assets can be purchased from the entity. Asset purchase is generally in the buyer's best interest. Consider whether there are any intangible assets that are important to you if you purchase the business. Is the name of the store valuable or would you change it? Any client lists, special designs, or other proprietary processes or info that are part of the business that you want to own when the dust settles? Do you want the seller to sign a non-compete agreement to keep him/her from opening a new store right across from the one you buy? Having all this kind of stuff in writing is important.

How does a jewelry store not have 'heavy' liquid assets?

Is your product designed by you? Could it be the issue is your designs?

I'm wondering if this existing store you're looking at going to isn't having some financial troubles and just needs someone else to help cover a lease they can't get out of.

I'd need to see the detailed financials: It sounds like you will be adding complexity to your business if you take on the additional store. Are you ready for the additional workload, even with competent managers?

I always plot my personal needs and desires against the expected return on investment financially before I take on new work.

remember, a step up can be a step out. absolutely no partnerships.

That got my vote.

I have watched more than one person I know grow their business to multiple locations, and then find themselves stretched so thin, that they spilled the whole apple cart, and either went under, or are back to a simple operation.
Just think long and hard , and be honest with yourself about what you want from the biz, and the commitment that you are willing to give to it.
Bigger is not always better, but .... with more risk, can also come more reward...
Best of luck either way..

Thanks, yeah I forgot about my inventory. My attourny reminded me that I actually do have lots of that last night.
No the store is strong but challenged with bad management. They lost 5 stores in two years beause of some shady ethical practices that resulted in some jail time:eek:. This is the last store and the owner is not well as of late. Stress etc..has cost him his health. I don't want the name, just the location and business.

Good question. I have the space, tools and capability to handle both stores repairs and custom. I currently have all three employees here as competent bench jewelers/designers. I'm probably the only store in Vegas that can say that. I could unload some of my trade clients if I get too busy with my own work, I've done that before. They always come back if I need them later.
Nothing ventured nothing gained?

Thanks good points. I too have witnessed this. I need to think it through completely which I haven't done yet but the easy points are that costs are lowish with the new store being only like 700sqft rent is low sorta. Payrol is also not crazy with two employees there at first.
Iv'e seen guys go big or go home and then just go home after loosing millions.

Sounds like it's time to make the two girls partners! Use their buy in money to shock the other store

Yeah it's an option. I like the idea of giving them something as an incentive to help me and motivate them for success.
I don't know.

Business partnerships are as easy as a marriage. Nuff said.

Wow. Don't need another one of that.

Sound management, key people you can trust, a business plan that is profitable and proven, financing available to cover cash needs while getting the second location going, and energy and desire on your part? Go for it!

I run a construction business and have only 3 very loyal employees. I can really grow it and clients with some business background with higher degrees from top universities have ask me if I need help growing my business. My answer was and is always no. Learned that from my dad who was in the jewelry business here in LA. He designed and made them one piece at a time by hand only. He's learn that bag of trick from the old country. I worked for him on and off since I was able to walk. He never wanted a partner. That was always more headaches more work to deal with and more employees. I, on the other hand, could really use another skill crafts person in our company so I can really take a load off two days out of the week. That person seem to be very difficult to find.

I love to see your store and the custom products you create someday. I missed making jewelries but don't miss the clients.

I got a two years on you, so my question for you is, are you willing to bust your ass and work double load to get this place off the ground for the next 2-5 years (maybe more)? What about your family? How do they feel about you working more hours? If it wasn't for my family and kids, I would have gone after commercial work, that means never sleep and never go home.

^^^ Good advice.

Remember what it was like when you opened your first location?

Can you afford to go without a paycheque or lend the company money?

It's better than opening a location. It was in business last week. People know where it is

Things in the jewelry trade have really changed in the last 10 years. I nearly quit 12 years ago and went into the car business and I'm glad I didn't. Instead I got more vested in it. I got cad/cam and took more trade clients in order to help make the money I felt I was missing. I bought an existing store from a couple mom n pop who wanted to retire. They also did one peice at a time and it worked for them in that location so I thought I could do better and I have. These days you can't hand carve everything. You need cad to compete. Or at least have a good cad company to take care of that. But I like the panache of doing it all in house. I do that. I use a cnc mill as well as a growing machine to make my designs into reality. My designs and no one else involved. But I needed help to get things done as I dowork for other stores as their cad designer and it was only me and another girl there who did all the paperwork, sales, errands, jewelry repairs, and books. She was spread thin and I was spread thin so I got another custom jeweler that I knew and was available so that I could design pieces and give them to her to finish. She's good and She frees up my time as well as my other girls time. It's a good fit. Now I can do more custom and repairs than I was doing which was quite a bit. But I did look at my fathers past as well.
My dad made mistakes. And his dad mad a few as well.
My dads mistakes were not all his fault. His first store, my grandpas store was in a small oil town did very well while oil was good in 1980 or so then when the oil prices went down the town dried up and he was struggling. He bought a little studio in a vacation town that did almost nothing off the main drag and that stained a little from him. Then he bought an existing store in a mall that sucked. That drained him of time and was hard to run and the original little town store supported that. So he had two low producing stores and too many employees. My sales are low because of the way things have changed in the last 5 years. I do way more custom now as my pricing is good. My turnaround quick. Have good rep for that. I'd like more sales and that new store dies that because of that location. My store that I have the tools could easily be a support store for a sales store.
So to reiterate, the new store was up n running last week. It's not exactly like starting a new business the same way my store was more about changing a business than starting one. Had I opened a brand new location Id be dead.
I wasn't looking for this opportunity, it was placed into my lap. But it does make sense. I'm still not sure I can make it work but I think its a good move. Wether I use a partner or not that's a hard one. I don't want to but if made to decide to or not I think I might. If terms were right.
My family, they don't care I don't think. My wife is supportive with what I think.
My concerns are about affording inventory for the store, partnership, and how quickly I could get a second hand buy and sell license. And operating capital.
I'm a little concerned about filling all hours with someone there too.