Starting a Bike Shop

Starting a Bike Shop.

Very nice post on the economics of starting a retail business. It gives good information on start up costs, margins and operations. The one thing lacking that I would like to know about: owner compensation. The owners claim success, but we have no way to evaluate their statement.

Also, reading about the success of one small business makes it seem so easy. It is not.

What percentage of these little partnerships actually make it to store opening from that initial conversation? How many of these little partnerships make it through the first year? How many of these little partnerships make it through to paying off the bank debt?

All questions I’d like answers to.

I need to go study the relationship between the size of the initial capital investment and success in these types of business. I think capital helps. Obviously. But I also think the execution of operations is more important. A large capital base and crappy execution just delays the onset of failure.

I think about these issues often as I reflect on the woulda, coulda, shoulda of my kitchen design studio I was forced to close in 2008.

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