Keep in mind, too, that one other thing you need to figure into your start-up costs is sufficent savings to live off of and keep the business open for a long enough time that your business starts to turn a profit. What I've heard quoted is a minimum of six months worth, but eighteen months is better. Even with a good location and a ready market, most new businesses take time to build a profitable customer base. You might start making some money very soon, but you need to be prepared for all expenses and no revenues for a while. If not, you stand a real risk of bankruptcy even if your business location and model are viable.
Owning a Dive Shop
- Thread starter mugenheimer
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mugenheimer
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thanks guys, some interesting posts there. One point I should have made clearer in my original post is that I do not expect $30k to get me up and running. That is the amount of cash I will have to begin with in two years time, maybe even more. I would expect that the remainder of the money would come from loans. This dive shop plan is in its earliest stages and I am trying to establish as more info and advice as I can on the issue. I realise that some of you may think I am living in a fantasy world but people open shops every day and I don't see why I couldn't do the same. Maybe in two years time I will not be in a position to open a shop but I think it's very realistic that I would be up and running in the next 5 years.
For arguments sake if I open a dive shop in Indonesia, I buy a decent boat with the capacity to take about 12 divers (including DMs), I buy 30 tanks, 20 sets of equipment, tank refill system. I will be working as an Instructor, most likely a Master Instructor at that stage, I will employ a Captain and 1 or 2 DM/Instructors, depending on the demand. My girlfriend will work the shop and look after the admin side of things. With regards to the servicing of the equipment, to be honest I don't know yet what way I will do it, but I will definitely look into the possibility of doing it myself. So bearing in mind all this, would $100k be enough, would I need $200k to begin with, or what sort of figure would I need? I'd expect to have enough money to cover all costs for the first few months so as not to have to rely on customers until the business is established.
For arguments sake if I open a dive shop in Indonesia, I buy a decent boat with the capacity to take about 12 divers (including DMs), I buy 30 tanks, 20 sets of equipment, tank refill system. I will be working as an Instructor, most likely a Master Instructor at that stage, I will employ a Captain and 1 or 2 DM/Instructors, depending on the demand. My girlfriend will work the shop and look after the admin side of things. With regards to the servicing of the equipment, to be honest I don't know yet what way I will do it, but I will definitely look into the possibility of doing it myself. So bearing in mind all this, would $100k be enough, would I need $200k to begin with, or what sort of figure would I need? I'd expect to have enough money to cover all costs for the first few months so as not to have to rely on customers until the business is established.
LeadTurn_SD
Contributor
I'm not a dive professional, but have started and then run my own small business, and grew up and worked in in a family small business (motorcycle dealership). So while I have no "direct" dive shop experience, I do have "shop" experience, and there is a lot of crossover in sporting-type businesses.
The best advice I can give anyone thinking of starting their own small business: Work in that exact business first. Learn as much as you can, get as much experience as possible on "someone else's dime".
To have the best chance of success, you have to already know the business inside and out before taking the giant leap to open a business on your own.
So the suggestion to work alongside an existing dive shop owner is probably your best bet. Get your Instructor's license, and go to work in a shop near where you currently live for a couple years (or more). Learn the business first, before throwing tons of time and money away. You will not be able to come up with any sort of decent business plan before spending some real time in the trenches of a dive shop.
Oh, and for most small businesses? Unless you are very lucky, do not expect to break even for at least a year.
But if this is your dream... Go For It!!
Best Wishes.
The best advice I can give anyone thinking of starting their own small business: Work in that exact business first. Learn as much as you can, get as much experience as possible on "someone else's dime".
To have the best chance of success, you have to already know the business inside and out before taking the giant leap to open a business on your own.
So the suggestion to work alongside an existing dive shop owner is probably your best bet. Get your Instructor's license, and go to work in a shop near where you currently live for a couple years (or more). Learn the business first, before throwing tons of time and money away. You will not be able to come up with any sort of decent business plan before spending some real time in the trenches of a dive shop.
Oh, and for most small businesses? Unless you are very lucky, do not expect to break even for at least a year.
But if this is your dream... Go For It!!
Best Wishes.
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