Things I hate about LFS's
1. Not open on sunday, or close before 5 any day of the week. I don't mind if a store opens later, but having an early closing time REALLY limits customers.
2. sell only the same stuff you see at chains
3. only sell a few things, like the only plecos being commons
4. not removing dead or dying fish
5. central filtration and no qt
6. mislabled, no labels
7. untrained employees
I've thought a little along these lines, and a few ideas always stick out.
too many LFS i've seen try to compete with the chain stores, they have the same drygoods, the same fish and the same problems. They push the same wrong fish to the same customers who don't know an otto from an oscar. I think for a LFS to be really successful, they need to know what every store in a 30 mile radius normally carries, then determine whats a seller to overlap with, and what to be distinct on. If you can, offer locally raised fish. Wow your customers, never underestimate to power of a 2ft pleco, and then explain why that little common could be a problem in that 10g they want to buy. Have suitable replacements on hand, like bristlenoses and other dwarf species, and clearly mark species that get to large for common tank sizes.
No matter what you do, you'll always have three types of people come in:
Those that know nothing, and know it
those that know nothing, and think they know everything
and those that know things
the first and third are easy to deal with, they either know exactly what they want, or they wil listen to what you tell them they want. the 2nd group is the worst, they are the ones that will demand an oscar for their 30g. not much you can do there.
Advertise on the internet, be an actual presence on local fish boards and internet forums. a webpage is great, but keep it updated. make friends with any local groups. don't be afraid to special order, and QT what is ordered. a good fish store has the ability to draw serious customers to it, and while they may not be the bread and butter, they are what makes it fun, just be careful not to give away the store in freebies and discounts.