Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
I want to start a business, but don't know how!
Old 09-13-2007, 06:27 PM   #1
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
I want to start a business, but don't know how!

I've started,sold, operated, and profited from many businesses so far in my life.

My newest brainstorm is to open a retail store that focuses on one thing that REALLY interests me...and is legal! Lol . I've never been able to put a finger on a RETAIL/STOREFRONT business that I'd be interested in running, and could turn an easy profit.

For those who dont know, I;ve had a law enforcement-influenced past. One thing I took well to was growing plants indoors. As I progressed from a hobbyist to a professional, I took a look at the establsihment I dealt with on a constant basis. The grow shop I dealt with was not too far from home..only 10 miles or so. I knew about it because the guy had another one about 45 minutes away from there. It worked so well for him, he has opened yet another hydroponic garden center. They sell lights, nutrients, soils, hydroponic supplies etc.

The un-spoken truth in the industry is that 99% of the products are bought by farmers of marijuana. Nevertheless, the police cant do anything to the shops as long as they dont refer to/mention/show/possess said pot.

I SEE the potential for a lot of traffic...a niche market you might say. I see the owner of the other shops regularly, and his story is remarkable - jailed for 5 years for running a lmarijuana growing FACTORY in the old Budweiser plant. A year after his release, he turns around and opens a very successful, to-the-letter-legal and legimitimate business tha has thrived for quite some time.

Here's my problem: WHERE DO I GET THE PRODUCTS? DO I need to compile a list of everything I want in my store, contact each company, and buy directly from them? I assume I'll be buying cases and having a huge inventory? OR, is there a company out there who can supply the whole storefront plus some backup. so essentially a middleman. I know theres several vendors that do this for places like gas stations or convenience stores...but what about an indoor garden center?


Ive never thought about retail and am just getting the wheels in motion. I really just want to get some #'s together and see what there is

Thanks!
__________________

__________________
thefed is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-13-2007, 06:31 PM   #2
Thinks s/he gets paid by the post
twaddle's Avatar
 
Join Date: Jun 2006
Posts: 1,378
If you started such a business, could you really resist setting up your own "farm" and raking in the Big Money?
__________________

__________________
twaddle is offline   Reply With Quote
Old 09-13-2007, 06:40 PM   #3
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
Quote:
Originally Posted by twaddle View Post
If you started such a business, could you really resist setting up your own "farm" and raking in the Big Money?
that urge is why i want to get into this. i know the risk, and am not willing to go thru that again- esp. now that i have a family. the profits are astronomical, but at this point in my life, NO amount of $ is worth gambling away my chances of seeing my son grow up in front of me.


instead, i want to re-focus the energy towards a legitimate means of making $$
__________________
thefed is offline   Reply With Quote
Old 09-13-2007, 07:24 PM   #4
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Sounds to me like you should go in the direction of being a Florist or a Pharmacist. (heh)
__________________
73ss454 is offline   Reply With Quote
Old 09-13-2007, 07:42 PM   #5
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by thefed View Post
that urge is why i want to get into this. i know the risk, and am not willing to go thru that again- esp. now that i have a family. the profits are astronomical, but at this point in my life, NO amount of $ is worth gambling away my chances of seeing my son grow up in front of me.

instead, i want to re-focus the energy towards a legitimate means of making $$
Weren't Tommy Chong and his son selling bongs water pipes and still getting hassled?

Our kid built a hydroponics system in her 9th-grade shop class and the teacher retired right after that. He's an expert in using scrap lumber and recycled materials. Come to think of it, every time I see him now he has this mellow smile on his face. Hmmm, she told me she was growing five-leaf lettuce... isn't it supposed to be that tall?

I remember a lot of 1990s ads in various marginal-culture magazines for a grow-light container that was supposed to enhance budding, leaf growth, crop yield, and a whole bunch of other euphemisms. I wonder if Google can track down that guy for us...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 09-13-2007, 08:32 PM   #6
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
I just stumbled upon what seems to be one of the 3 big garden/hydro center suppliers in the nation. I should be getting some good info soon enough. One thing I dont like is Im seeing things like "must spend $15k annually" or "must spend xxx initially, order xxx times per month" etc/ Im assuming this is normal in the retail/vending world, but unexpecpected. Looks like I've got a lot of learning to do
__________________
thefed is offline   Reply With Quote
Old 09-14-2007, 01:37 AM   #7
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
Retail is a tough business with a lot of fixed costs, be careful... based on what I have read you post previously (service oriented businesses) you may be in uncharted waters here.
__________________
macdaddy is offline   Reply With Quote
Old 09-14-2007, 03:05 AM   #8
Recycles dryer sheets
 
Join Date: May 2007
Posts: 290
Quote:
Originally Posted by thefed View Post
The un-spoken truth in the industry is that 99% of the products are bought by farmers of marijuana. Nevertheless, the police cant do anything to the shops as long as they dont refer to/mention/show/possess said pot.
Personal opinion: You are so asking for trouble with this idea, especially given your history. I imagine the authorities will be gunning for you to make the slightest slip-up. If that doesn't happen, they might make you an offer you'd have a hard time refusing (pressure you to inform on your customers, say). You have a family to support. Is the risk/reward worth it?

You're out of the business now. Were I you, I'd make a big show of staying out. Go into puppy manicures or something if you're not satisfied with what you're doing now.
__________________
bpp3 is offline   Reply With Quote
Old 09-14-2007, 04:09 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Consider working up a business plan. Include High and Low profit projection (realistic) and how long it will take to be profitable. It is profitable enough to be worth the risk. Plus, will you just wind up owning a job.


I think most of that stuff can be ordered off of the internet now ways. It appears to be the domain of criminals and hobbyist. How large is your local market? Similarly, your competition is not just across the street, it is around the world. What is your value add?

IMO - Think long and hard before you jump into it.
__________________
chinaco is offline   Reply With Quote
Old 09-14-2007, 07:57 AM   #10
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Last year the feds busted a huge ring of indoor pot growers in NH/MA ... they bought McMansions is great areas; tapped the electrical BEFORE the meter and grew in the basement. Apparently the eletricity use is one of the key signals the feds hunt for.

Seems cash is not a problem for these folks.

If selling to support these people ... I'ld sell via the web. Your local customers are one slip away from disappearing.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 09-14-2007, 08:18 AM   #11
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
I'm not the type of person to shy away from an opportunity because of what could, illegally, happen to me. It's a 100% legitimate business. Period. Garden center. You were probably at a garden center some time this year. This one is just geared towards indoor gardenening, which in itself, is not illegal. If they were to give me slack, there'd be no basis and would border on harassment. My attorney, who is a supporter of NORML, would be all over it.

Though it might raise some eyebrows, I don't think it would/could/can be a problem. the guy I referred to was busted with 300 lbs of manicured buds, 40 lights, and over 12,000sf of growing area. He's been running a successful and legal grow shop for 5 years. He is doing nothing illegal. Period.

CHINACO: Of course the lights/nutes etc can be purchased online. BUT, NO grower wants to order online, using a credit card, to have these items shipped to their home. They leave a paper trail right to the doorstep of their grow. that's just ignorant. Of course the items are legal, but the paranoia associated witht he grow prevents anyone who can avoid mail order from doing it thru the mail. I speak from experience. I paid as much as 50% more for some products because I could sneak into a brick/mortar store, buy in cash, and slip out the back dor 5 minutes later.

On the same token, with the right vendor relationships, I could afford to offer some products through ebay and other online sources to help with cashflow. I'm already an avid Ebay retailer...and see that even this market is thriving there.

The one thing I KNOW I can offer that the local competition can NOT, is KNOWLEDGE. You see, when I first started shopping at the other owner's 1st store, he was fresh out of jail He still knew ALL the little nuances of growing 'tomatoes' as they are referred to in the industry. So if I had a nutrient deficiency, bug problem, mold issue etc...he could direct me. A year after he opened, he hired a VERY knowledgeable man to run the store who seemingly knew more than the owner. He was a very valuable asset. But now, all the shops are run by kids who frequented the shops, and they are all just slow. slow as in speed, slow as in dumb, slow as in common sense slow...SLOW. I think my expertise and/or ability to train someone to be knowledgeable can and will be a great benefit for the customers. I know it helped me when I started. If I had the current shmuks working when I was shopping there, I never would've made it from hobbyist to professional! (I guess that wouldve been a good thing, eh?)
'


Of course I'll work up a business plan, like I have with all my other businesses. This IS uncharted waters for me, so it'll be a slow process. You wont see a post from me in December with pics of my new shop..not gonna happen. If you guys havent figured it out yet, I'm ALWAYS brainstorming for new $$ ideas, and fully explore every viable possibility. why not? What do I have to loose? It's an exciting mental process for me to take an idea and run with it, using real life situations and data I collect. I love it

Thanks for the input guys/gals!
__________________
thefed is offline   Reply With Quote
Old 09-14-2007, 08:34 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,423
I'm in the same local area as thefed and recently there were some of those same kinds of drug busts where the growers bought large houses in the suburbs and set up growing rooms.

cleveland.com: Everything Cleveland
Recordpub.com - $500,000 pot bust Streetsboro man facing charges

While I understand the desire to own and operate a profitable business, wouldn't this be sort of like wearing a day glow T-shirt that says, "Hi, remember me?" to your local law enforcement?

Quote:
Originally Posted by thefed View Post
But now, all the shops are run by kids who frequented the shops, and they are all just slow. slow as in speed, slow as in dumb, slow as in common sense slow...SLOW.
Hmmmm..... why are they so slow, dumb and lacking in common sense? Could it be THE POT?!!

If you sleep with dogs, you'll get fleas. And you know I'm not talking about mutts, here.
__________________
Sue J is offline   Reply With Quote
Old 09-14-2007, 06:24 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Quote:
Originally Posted by thefed View Post

CHINACO: Of course the lights/nutes etc can be purchased online. BUT, NO grower wants to order online, using a credit card, to have these items shipped to their home. They leave a paper trail right to the doorstep of their grow. that's just ignorant. Of course the items are legal, but the paranoia associated witht he grow prevents anyone who can avoid mail order from doing it thru the mail. I speak from experience. I paid as much as 50% more for some products because I could sneak into a brick/mortar store, buy in cash, and slip out the back dor 5 minutes later.

OK. I noticed your comment on the drug manufacturers. I guess I did not think there were enough criminals raising the stuff to support a local business. There must be a lot of this going on.


I will change my advice. You don't need a business plan and profitability projections... but you might need your lawyer. Stick with something that is above board for business.

Good luck.
__________________
chinaco is offline   Reply With Quote
Old 09-14-2007, 07:41 PM   #14
Recycles dryer sheets
Scrapr's Avatar
 
Join Date: May 2005
Location: Bend
Posts: 266
You are (or become) who you hang around with

your choice
__________________
Scrapr is online now   Reply With Quote
Old 09-14-2007, 10:14 PM   #15
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
Quote:
Originally Posted by Scrapr View Post
You are (or become) who you hang around with

your choice
hang around with? how about "profit from"
__________________
thefed is offline   Reply With Quote
Old 09-15-2007, 06:56 AM   #16
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 113
Send a message via AIM to vvsonikvv
This sounds like an easy way to get caught up into "the system" that you don't want to get caught up with.

One crazy scenario (that might not be that crazy), is that you would be a key connection to all the dealers, users, distributors, etc. So to the local law enforcement, stopping you, or using you would be in their best interest. There might be an accidental illegal substance found in your shop. And coincidentally, the law enforcement found it and then you're in trouble. Now, they either take you, or bribe you to disclose information.

Now since you are connected to the system (though legally) i'm sure your information and knowledge of the system is very critical to the survival of the system. I'm sure the big dealers, users, distributors, will be all over you. Don't know if you're putting yourself in danger of being blackmailed, getting hurt (what if local crime organizations have a quarrel near/in your shop), bad customers... etc.
__________________
vvsonikvv is offline   Reply With Quote
Old 09-15-2007, 08:47 AM   #17
Recycles dryer sheets
 
Join Date: May 2007
Posts: 290
Quote:
Originally Posted by thefed View Post
If they were to give me slack, there'd be no basis and would border on harassment. My attorney, who is a supporter of NORML, would be all over it.
Which wouldn't cost your attorney anything, and could conceivably make him/her famous if this somehow became a big issue. On the other hand, you would be the one lying down in front of the tank.

Quote:
You see, when I first started shopping at the other owner's 1st store, he was fresh out of jail He still knew ALL the little nuances of growing 'tomatoes' as they are referred to in the industry. So if I had a nutrient deficiency, bug problem, mold issue etc...he could direct me. A year after he opened, he hired a VERY knowledgeable man to run the store who seemingly knew more than the owner. He was a very valuable asset. But now, all the shops are run by kids who frequented the shops, and they are all just slow. slow as in speed, slow as in dumb, slow as in common sense slow...SLOW.
Question: what happened to the knowledgeable folks? Why are they no longer in business?

I'll stop here. It's your life.
__________________
bpp3 is offline   Reply With Quote
Old 09-15-2007, 11:23 AM   #18
Thinks s/he gets paid by the post
bright eyed's Avatar
 
Join Date: Jan 2007
Posts: 1,891
Fed,

if you enjoy working on old cars, why not do something related to that? seems a much less complicated route...although i don't know what the profit margins are in that line of work...if you can turn your hobby into a profitable business then it's a win-win for you...

you're already familiar w/ providing service, you could just fix up others cars...then add the parts side of the equation...
__________________
If i think of something clever to say, i'll put it here...
bright eyed is offline   Reply With Quote
Old 09-15-2007, 04:48 PM   #19
Thinks s/he gets paid by the post
free4now's Avatar
 
Join Date: Dec 2005
Posts: 1,225
If you really want to push your luck to make big profits, move to CA and open a medical pot dispensary. Perfectly legal under CA law, but perfectly illegal under federal law. They are hugely profitable because they buy at wholesale prices and sell at street prices, without all the hassle and danger that a typical street dealer has to, well, deal with.

There are hundreds of them opening up in Southern Calfornia right now to get in before a moratorium goes into effect.

Seriously though, I've noticed something I think I can generalize about: recent Asian immigrants own head shops (selling pot pipes and such) but don't seem to own grow shops. Grow shops seem to be owned by hippie ex growers out here in CA. Both types of businesses are similar in that they are profitable because the notoriety reduces competition.

I would want to know why the immigrants don't go into the grow shop business. Is there something so bad about running a grow shop that only stoners are interested?
__________________
free4now is offline   Reply With Quote
Old 09-16-2007, 03:13 PM   #20
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
i appreciate all the wonderful input. i expected this type of response, from this type of website..and that's perfectly okay. a lot of the same things could be said if i decided i wanted to own a bar, a nightclub, etc.

The bottom line in my thinking is this: its a legal business, i know/enjoy the business, i know the potential for business if run properly, and by keeping my nose clean 100% - i really should not have any issues. just like the aforementioned head shops-you know what they are there for, the cops know as well, but they remain, and they can thrive.
it really comes to $$ and cents to me...so thats why im working up the #'s to see how much sense it REALLY makes.

anyhow, im not trying to persuade anyone to open grow shops-just looking for some insight as mentioned in the original post re: vendors and stocking... and i think im on the right path now, so thanks!
__________________

__________________
thefed is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Decided to start a business to facilitate ER thefed FIRE and Money 71 11-29-2009 10:32 AM
If you had $50k to start a business, what would it be? thefed FIRE and Money 66 11-03-2008 06:42 PM
How to start photography business? Zoocat Life after FIRE 9 04-22-2007 09:06 PM
Anybody Cash out early, pay penalties and start their own business? vicmost Young Dreamers 10 01-16-2006 03:02 PM
NEW and A Business to start? dadydog Hi, I am... 2 08-08-2005 09:53 AM

 

 
All times are GMT -6. The time now is 09:53 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.