Thinking of starting own LFS!

I've worked at two LFS's over the past two years, and the one I'm currently working at definately shines above all the rest in our area. Here's what I've noticed that makes it really work:

+ A huge selection. If possible, not just fish. A lot of people come in for hamsters, mice, etc and end up liking the show tanks so much that that idea for a tank starts in the back of their mind. Two months later, they're back buying their very fish tank.

+ Small animal-care labels for fish and everything else you carry. What we do is we have small business-card labels that are taped to the outside of the tanks. They include the name of the animal, the price, feeding info, adult size, minimum habitat size, and it's aggressiveness level.

+ Employee training. My LFS has required seminars quite frequently, and plenty of magazines and pamphlets on different animals in the break room that we're supposed to read during our lunch breaks. New employees spend one week shadowing employees in different sections (small animal, fish, and cat/dog) to learn the ropes so they have a basic working knowledge of everything before they're allowed to start sales. There is a 20% employee discount on everything but books - if an employee buys a book, they get a 50% discount.

+ Plenty of learning materials (ie books, pamphlets, care sheets, etc). Have your employees recommend a book with each animal or tank purchase. Include books in tank kits. Have a wide variety so there's plenty to choose from.

+ Cleanliness. Hire someone as the "animal husbandry person" to come in full-time and clean tanks and cages. Have employees run hourly checks for dead fish, even if you don't have very many (we had a total of 5 dead fish at work yesterday, but we still ran the hourly checks just in case). We call the fish check the "DF run" (Dead Fish run) so that customers don't know what we're talking about. It makes for a much better image. Sweep, vaccuum, and mop the floor every day - and don't get carpet, it doesn't work very well in a LFS. Rugs are fine, but carpet gets messy. Wipe the class of the fish tanks hourly with the DF run, and get sick livestock off the floor immediately. It helps to have three hospital tanks in back to treat different cases. If you have small animals, put an anti-bacterial spray next to all of the cages and require employees and customers to use it before handling any animal and again between animals if they're looking at multiple animals. This stops the spread of disease and keeps the animals healthy and clean.

+ Shoplifting. The 10-foot rule has worked very well to prevent this at our LFS. Each customer has an employee within 10 feet of them, but NOT shadowing them or bugging them. For instance, if someone is looking at hamsters I might be the next aisle over facing shelves or dusting. This also makes sure that there's always someone available when you need them and you don't have to go searching to find help.

+ Friendliness. Have your employees say hello to everyone that walks in the store. Even if I'm helping customers, I'll still say hi to people as they walk past. It gives the store a friendly, open atmosphere.

+ Lighting. Good lighting is a MUST. Dark pet stores look dirty and make people wonder if they have something they're trying to hide.

+ Overall appearance. Keep products dusted and faced, and have everything ordered in a common-sense way. Have an employee uniform so it's easy to tell who works there and find assistance. Require your employees to look their best - no holes, brush their hair or tie it back, etc. Have a dress code so everyone knows what's okay to wear to work and what's not. Have your employees wear khakis or black pants to work on Fridays, Saturdays, and Sundays (your busiest days) to help create a more professional atmosphere. Jeans are fine for week days. Send employees home to change if they don't comply with the dress code.

+ Cover all aspects of pet ownership. People who have multiple pets like to be able to get everything in one place. Carry a variety of cat/dog toys, collars, leashes, food, small animal food, toys, and treats, fish stuff, etc.
 
I don't know if this is feasible, but what I would like at an LFS is also all the little things you have to hunt at hardware or other stores for. You can buy airline tubing by the foot at the LFS but not the larger tubing for gravel cleaners, or projects, etc. Also other DIY and cheaper stuff like eggcrate, pool sand, pipes, silicone, stump remover (for KN03), plastic needlepoint canvas, pure ammonia, etc. etc. After the initial setup stuff, I feel I buy most of my equipment at NON-fish related stores.
 
A good selection of gravel. I don't know if there is some feasability problems with keeping a selection of gravel. But out of 3 stores I went to they had 5lb bags priced way too high for epoxy coated colored stuff. Another place had only 1 or 2 types in 10lb bags. If they would've had the stuff I wanted I would have bought it that day. I don't know why they don't maybe it's space maybe they are afraid they won't sell it.
 
I'd like to throw in some suggestions with the premise that the hobby is not the same as the business.

1. If you don't already, get a part-time job at a lfs (per Wetman's suggestion)

2. Get a partner (per Wetman's suggestion). However, I would find a partner that is NOT an avid fish keeper and has some retail experience if possible. They must be willing to equal your financial committment. Two partners with complimentary skills are better than two partners with similar skills and interests.

3. Develop a business plan. Your local Small Business Administration (SBA) office probably provides business training classes that can be helpful if your business experience is minimal. They will provide assistance in developing a business plan and structure it in a way that banks or other lending institutions want to see before issuing a business loan. BTW, this service is free. Even if you don't need startup capital, SBA advisors can identify potential stumbling blocks and overly optomistic assumptions.

4. Along the same lines, see if there is an office of the Service Corps of Retired Executives (SCORE) in your area. They are affiliated with SBA and can provide free consulting. They should be able to match you with an executive with retail experience. It's free.

4. Make sure your personal credit record is spotless. In today's market, banks do not part with their money easily for business loans. Since you do not have a business track record, your personal financial track record will be scrutinized with a magnifying glass. BTW, do not make optomistic projections in your business plans, banks are not optomistic.

5. Be prepared to invest a minimum of 20% (and probably much more) in the startup of your business. How long can you live without a salary?

6. Most of this thread has been geared towards your "product" with some retail strategies thrown in. Your products and services must match your business plan. For example, it might be nice to have plenty of staff and inventory to service customers. But every person you hire and every item you put into inventory effectively comes out of your paycheck and means that your daily break-even revenue must be higher. Owners get paid last after employees, suppliers, utility companies, building owner, etc.

7. Adding commercial tank service and cleaning might be a good idea because the main thing your selling is labor with minimal equipment costs (after the initial startup). This assumes that you can charge enough per hour to make it worth your time. The downside is that this could distract from your retail operations if you're not careful. Remember, every hour invested in a tank cleaning business is an hour not invested in directly supporting your retail business.

8. Get an accountant (per Wetman's suggestion). Interview several before you select one. Select an accountant that spends most of his/her time with small business. Do not use a personal tax accountant. Submit your business plan with financial projections to your accountant for review. It is worth the $$ to get his/her opinion.

Good luck and be thorough in your research and planning.:)
 
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A few additional things...

Don't just have a tag. Take a picture of the fish/plant/coral, and use that on your tag. This way, you eliminate the confusion when species are mixed in a tank. Also, if the fish changes from a juvenile stage to an adult stage (many SW fish look different as the age), have a picture of both in addition to size/activity requirements. Digital cameras are cheap, and this would totally pay for itself in saving time.

Provide some place for customers to sit and read. Provide books they can read for free (not the ones you want to sell. Same book, different 'house' copy), or can check out. Or, provide a $.05 copier so they can get the pages they want and go home to read.

Setup a 'members only' time to review new stock. Allow members to get the first chance to buy, during a specific time line. If new shipments come in on Tuesdays at 5 but don't go up for sale until Wednesday, let members come in from 5-7 Tuesday evening.

Have a bulletin board for pics of customers tanks. Ask customers with nice tanks if they'd be willing to mentor someone. Or, if they would volunteer to come in and just answer questions sometime. You could give them a discount in exchange for their pitching in.

I agree with the need for great show tanks, but don't put stuff in the show tank that you don't have for sale, or can get in easily. It annoys me to no end to see a fantastic fish in a display tank, and find out that it's NEVER available for sale.

I agree that you won't be able to compete with the online stores. Don't try. For a price, be willing to accept shipments of live fish for your customers. For example, they order 40 lbs of liverock, have it shipped to you. They pay you $10 to sign for the package and hold it in the back until they come pick it up. You don't open the package unless instructed, but at least the customer doesn't have to take off from work, or worry about something sitting frozen/melting on their front step. For fish, you could agree to open the box, float the abg, ect, but for an additional charge with limited liability.

Sponsor 'classes'. Kind of like Home Depot...Show people how to setup a tank. How to use test kits accurately. How to catch a fish without chasing it for 20 minutes. How to disassemble powerheads for cleaning. Simple stuff, but not fun to try and guess how it's done when you're new to the hobby (and might not know it should be done).

Shop the competition. Maybe not where you are, but out here, if it's within 2 hours, it's likely I will drive there once a month or once every other month--if the place is worth it. Prices will make or break where I spend my money, if all else is equal. For exampe, locally the amano shrimp cost $7. One hour away, they are $2.50. I can make the drive, buy 10 shrimp, put gas in my car and buy lunch, and still save money versus getting them in town. Of course I will do that!
 
One thing I feel would be helpful is that you are sure to give the common AND species name! This could be very helpful in avoiding any confusion over what a fish is, etc.

Also a winning Idea one of my LFS has is a "discount club", you charge people say a dollar when you first open to join the club, get their name, address, and phone # and (for example) always get fish half off on mondays, and a dozen free feeders per day, etc. Then send them a post card every month with "discount club" specials for the month, such as 25% off of Gravel, or half price on this power filter. Gets me in their store all the time, and I would imagine, that It would help build a customer base.

In any case GOOD LUCK!!!!!!!!!!:D

P.S. If you were able to special order rare fish (such as certain cichlids) for the customer, it would be a nice touch
 
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This is great! everyones ideas and advice is what i wanted.
I have a new idea, a friend came up with.

Being able to help start-up newbies.
Having avalible cycled water, and maybe like a bag with gravel from a astablised tank. so the new person dosen't have to wait
for the tank to cycle.
I could have a tank in the back, running with some kind of fish.
with the new tank set up i could offer, ether at a fee or free with the new tank, water from my cycled tank, and i could make up bags that would have gravel from the tank.
I'm sure that would cut the cycle time way down.

I injoy all the ideas, the start-up advice is we needed!
My wife and I are going to start finding out about starting.

I will let everyone know how things are going!

scottie
 
Bob Fenner has some good info on running a LFS or other aquatic business at www.wetwebmedia.com

Back when I was a LFS manager, Fancy Publications (Dog Fancy, Cat Fancy, Aquarium Fish Magazine, etc) had a "trade" magazine that came out quarterly or annually. I think it was called "Pet Supplies Marketing" ( I don't know if its still around.) It had good articles on where the industry was headed, trends, etc, but the most valuable part was a very long listing of Wholesalers and Manufacterers... very useful to have the phone number for Marineland or Aquarium Pharm handy when a customer has a question, or know a dozen wholesalers when somebody just walked in looking for a giant acrylic tank. Definitely worth looking for...

I've heard alot of good suggestions. JeffP and WetmanNY had some great suggestions, as did others. When I got into the biz, I expected it to be just like the hobby... its not.

You will have people insisting that they CAN keep 12 koi in a 10g tank - No matter what you say.

You will have people saying they don't want a betta for that 2 gal tank, they want goldfish because they don't want just one fish.

You will have people tell you that Fred down the street sold them 6 Oscars for thier 29g tank, even though you said it was too small. Then come back to you when the fish get sick, get free advice, and go buy more fish (and meds) from Fred...

You will have people come in for your advice, listen to you for 20 minutes (while other customers are waiting) and then tell you they'll buy the filter at walmart because its cheaper there. (probably below your cost for the filter!)

Oh, and all those things will happen on a busy Saturday or Sunday. While parents drop their kids off for you to "babysit" while they shop in the furniture store next door. Or a lady props her todler on top of 6 ft tall cat furniture while trying to return stolen goods for cash with no reciept.

You will have toothless men (or women) with evil halitosis tell you that thier fish have been living a long time without waterchanges and they're not about to start on your say so - but they want you to replace that $20 fish they bought last month.

Oh, you'll also find out how hard it is to get good help. Are you going to be able to pay them $8 - $10 /hour and stay competative ? Or are you going to get young kids for $7 who just want to earn pizza money, and don't really care if a fish with ich gets sold or not ?

A really good Employee purchase program might be a great incentive (let employees get livestock at cost, and a healthy discount on dry goods).

Also, something I haven't heard mentioned - where are you planning on making your money ?
Livestock or dry goods ?

The chain I worked for spend major bucks on an acrylic tank system from California Aquatics (Seaclear) with large wet/drys, dual uv's, inline carbon, the works. Very nice, looked way better than a bunch of 10g tanks with sponge filters (what all the other stores around us had...) and allegedly cost about $30,000 for that store. (over 60 feet long, 3 tier tanks) Then about six months into operation, the owners had one of the store managers audit the chains livestock sales. What he discovered was that we were just barely breaking even - our live fish sales, minus our live fish wholesale cost, just about paid for our 2 full time and 1 part time fish dept people (in our store anyways). Never mind electricity, water, and paying off the capitol investment in the system.

So in theory we were selling fish in order to sell fish supplies - fish supplies were the highest margin item in the store (about 10% higher than dog and cat items). That meant our salepeople had to make sure they were diligent in adding on good extras - don't sell a tang without selling seaweed sheets. Don't sell mbuna without cichlid pellets. Sell frozen food with clownfish, etc. And we constantly had people asking if we would price match mail order, or the price of the guy down the street (who was a loss leader for Hagen - he sold Aquaclear filters at about cost...)

Decide ahead of time where you plan on making the money, and if you are going to be able to afford the high tech route with your tanks.... most of the non-chain stores that I see still in biz today are the stores who stayed low-tech low-cost when the big chains rolled into town, with old 10g tanks and sponge filters, along with product lines heavily favoring "Ginger" and other bargain price "independant LFS only" brands.
 
new lfs

show tanks and variety are a MUST

- show tanks - a nice show tank or two will always make someone getting a new tank wanna go with larger tank. my local LFS had a great planted show tank but i always knew there was no way i could turn a tank into that piece of art. Then they upgraded to a large rap around tank with waterfalls and fish that held the plants, and i told myself "i need some of those!".

show tanks will definetly increase business.

- variety - if someone goes into your store for the first time, maybe buys a few fish. when they come back and see the same old stuff, they're gonna be reluctant to buy fish and end up just getting the necessities like feeders or meds.

variety = more customers your likely to satisfy.

otherwise i agree with everything stated above
 
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