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 Shop owners and aspiring businesspeople
 Startup Costs for a Yarn Store
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pinaysister
New Pal

10 Posts

Posted - 08/25/2005 :  11:52:50 AM  Show Profile Send pinaysister a Private Message
I am looking into starting up a moderately sized yarn store, probably 800-1000 sq.ft. With that size, does anyone have a price range on how much it would cost to start-up one of this size- including inventory, renovations, and 1st month's rent? I just want to make sure I have enough capital to start up!!! Thanks everyone!

beh2g
Chatty Knitter

USA
244 Posts

Posted - 08/25/2005 :  12:40:21 PM  Show Profile  Visit beh2g's Homepage Send beh2g a Private Message
Hi, I just thought I'd tell you that my friend, a 40+ lawyer, had to use her entire life savings to start her store (a small one, like what you are thinking of). I have no idea how much it actually came to (she won't tell, apparently it's that absurd) but I would guess at least $100,000. Depressing thought, huh? :)
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KellyKnits
Permanent Resident

USA
1608 Posts

Posted - 08/25/2005 :  1:04:10 PM  Show Profile  Visit KellyKnits's Homepage Send KellyKnits a Private Message
If you do a search I believe this topic has come up before. I think the rent and such depends on what kind of area you live in metro/suburbs/rural.
I think most small business owners would say there is never enough money to have as a backup.
If I recall I think it's usually between $100,000-$300,000 depending on location and inventory.

Kelly
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The Irish Ewe
Permanent Resident

USA
1052 Posts

Posted - 08/25/2005 :  3:05:29 PM  Show Profile  Visit The Irish Ewe's Homepage Send The Irish Ewe a Private Message
the 100,000-300,000 range is common - more for bigger locations, less if you find deals on fixtures, more for decent lighting, less if you get a break on seating, and so forth.

This isn't a cheap buisness to get into, and you won't get rich from it. But you will have a richer life in the way of the people you meet and help to realize their visions out of masses of string and a couple of sticks :)

The Irish Ewe
Norway, Maine
http://www.TheIrishEwe.com
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ScubaQueen
Seriously Hooked

USA
883 Posts

Posted - 08/25/2005 :  3:26:18 PM  Show Profile  Visit ScubaQueen's Homepage Send ScubaQueen a Private Message

WOW...I'm surprised to see those numbers ...makes me appreciate my LYS even that much more.

Anyway...my LYS shares space with another store that sell HOLIDAY decorations. They both have their own front entrance...but it's clearly one space with a dividing wall between and an open doorway between. I'm guessing they split the "rent".

~Wendy


Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body; but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming: "WOW...WHAT A RIDE!!!"
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knitz2
Permanent Resident

USA
1800 Posts

Posted - 08/25/2005 :  4:48:28 PM  Show Profile  Visit knitz2's Homepage Send knitz2 a Private Message
Remember you need your own living expenses for at least a year as well as a year's worth of shop rent before you open, in addition to stock and fixtures, as it will take quite a while to begin to turn sufficient profit to not only re-stock but pay yourself a salary.

as far as start up stock, that will depend a lot on where you are geographically. I've heard figures running between $15,000 and $75,000 US for initial stock.
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umbaba
Seriously Hooked

USA
693 Posts

Posted - 08/25/2005 :  7:40:16 PM  Show Profile  Visit umbaba's Homepage Send umbaba a Private Message
I would say $75K plus for initial inventory in an urban area.

...as soon as I finish this row

www.abundantyarn.com
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godlikeingoal
Warming Up

USA
69 Posts

Posted - 08/27/2005 :  06:54:28 AM  Show Profile Send godlikeingoal a Private Message
We're just about to open up our store, and the estimates of $50k to $75k for inventory are right on the ball--but this is a number that will very much depend on the size of your space. A smaller space most likely cannot fit the higher end of that number (unless there's considerable storage). You want enough inventory so that your store looks attractive and well-stocked, but not so much that it's an absolute mess and product is difficult to find.
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KL
Permanent Resident

6041 Posts

Posted - 08/27/2005 :  07:08:29 AM  Show Profile Send KL a Private Message
I would suggest nom atter what figure you come up with, that you add at least 25% for hidden costs. Believe me,no matter how well you plan your dollars, you will be spending more. Are you going to advertise, hires help, and instructors? All of these thing will take a bite out of your MU. KL
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Hulagirl
Chatty Knitter

174 Posts

Posted - 08/27/2005 :  1:26:49 PM  Show Profile Send Hulagirl a Private Message
Interesting perspective from all of you. This said - did any of you
use the facilities of SBA/Women's group for advice, counseling,
mentoring, etc.? Also, did any of you take into consideration
the # of stores in your respective cities? If one had to do it all
over again, what one area would you change? (PS I like the hidden
costs bit).

After studying the various types of stores, physical, on-line, ebay,
etc.....it seems that an online retail might be the way to go
initially? Agree/Disagree?
thanks all for your input, Michele
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umbaba
Seriously Hooked

USA
693 Posts

Posted - 08/27/2005 :  3:16:28 PM  Show Profile  Visit umbaba's Homepage Send umbaba a Private Message
I used the services of the SBA extensively and then also hired someone to help me complete my business plan and figure out the financing. It was well worth it.
As to online vs walk-in, I do both out of the same inventory and added two classrooms and a cafe. Both types of selling attract very different groups of people and then there is a third group of folks that do both. I wanted to have an educational focus and so that is why I didn't do online only. Most of the answers about business stuff are "it depends"

...as soon as I finish this row

www.abundantyarn.com
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Angelika
Chatty Knitter

USA
252 Posts

Posted - 08/27/2005 :  4:28:48 PM  Show Profile  Visit Angelika's Homepage Send Angelika a Private Message
quote:
Originally posted by mmr49@bellsouth.net

...

After studying the various types of stores, physical, on-line, ebay,
etc.....it seems that an online retail might be the way to go
initially? Agree/Disagree?
thanks all for your input, Michele



Hi Michele,

I'm both brick-n-mortor and on-line. There are alot of overhead costs with an on-line store that a brick-n-mortor do not have. And the most difficult thing is competion with other on-line stores. Internet advertising and web site building and maintenance can cause extremely long nights of computer work. Unless you have the sales to hire a web technician, which can be extremely costly.

In some ways having a simple brick-n-mortor shop in a retail area is much easier than an on-line store. Takes me less time to set up a new yarn rack, than to set up a new web page for the yarn. But there are advantages to both types of stores.

It is my belief that it comes down to the store owner's personality, abilities and location opportunities. Would be neat if there was some simple questionaire/survey a prospective store owner could fill out and see where she would fit in best.

Thanks for listening ! Angelika



Thank You !! [img]http://www.yarn-store.com/bowing-angelika.gif[/img] Angelika
www.yarn-store.com
On the Southern Oregon Coast !
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SurfinSandy
Gabber Extraordinaire

USA
473 Posts

Posted - 08/28/2005 :  06:01:26 AM  Show Profile  Visit SurfinSandy's Homepage Send SurfinSandy a Private Message
From what I hear, most yarn supplies require a heafty minimum purchase. Mutiply that times the number of companies you want to purchase from....bam! Gals in my knitting group toyed with the idea because we have no exclusive yarn store where we live, and we're so tired of acrylic only at local discount store. But the cost was prohibitive and the status quo remains the same.
I really hope you are successful at this, I'm so tired of the giants winning.

Surfin'Sandy

No man has ever been shot while doing the dishes.
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The Irish Ewe
Permanent Resident

USA
1052 Posts

Posted - 08/29/2005 :  04:31:43 AM  Show Profile  Visit The Irish Ewe's Homepage Send The Irish Ewe a Private Message
"did any of you use the facilities of SBA/Women's group for advice"
Sure did. Still do. And we made a beeline for our local business owners groups, and made a point to go and visit our new neighbors. Best thing we did, as some of our best customers are the employees from across the street!

"Also, did any of you take into consideration the # of stores in your respective cities?"
If you don't, you're hurting yourself. As the closest place to us is a good 30plus minutes away, we hit all the local shops within 3 hours.

"If one had to do it all over again, what one area would you change?"
We under-estimated our area, and bought a lot of decent, affordable stuff. My acrylic line has bombed, but the Jo Sharp? The hand-painted? The silks and angoras? They're flying off the racks.

"it seems that an online retail might be the way to go initially? Agree/Disagree?"
Disagree. Most of the yarn suppliers make you jump through HUGE hoops, as a lot of places would buy yarn wholesale and sell it out of their homes or basements. Many have "no eBay" clauses, and two have asked us to not list their stuff online for less than a certain price.

Now, I know you can order yarn online. And I know that it can often be cheaper than what you can get at your LYS. But find me one online retailer that will show you how to seam something, or how to graft your sock toes. With a LYS, you're paying for the stock to be there, to take it home right away, to be able to touch it all, and yes, for the advice of the sales clerk. I think they each have their place, but I don't see our shop closing anytime soon, as a good 25% of the drop in help are projects where they bought the yarn online.



The Irish Ewe
Norway, Maine
http://www.TheIrishEwe.com
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Hulagirl
Chatty Knitter

174 Posts

Posted - 08/30/2005 :  07:44:12 AM  Show Profile Send Hulagirl a Private Message
My thanks to all of you that responded.....interestingly enough, Angelika....I've purchased from your store - your service is a credit to the yarn community....I rather wished I was back living on
the west coast. To the Irish Ewe,....first saw your website and
have been watching (reading) what goes on since you were first on-line. Do you send samples of your Irish yarn, I'll call today and
ask.

In the Atlanta GA vicinity alone, there have been close to 10/12
yarn stores that have opened in the last year. All things
considered, would this influence your decision to have opened a
yarn store.

thanks again, M
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