Prospective bait shop

[Bdnoble84]

I’ve been going back and forth on the idea of starting a small bait and tackle shop. I feel the location has excellent potential as it is right next to the dam(withing 50yds, parking lot right there) and any given time of the day there are atleast 2 to 3 people present for fishing the eddie on that side plus the people on the other side fishing,kayak fishing etc. I’d like to offer a viable bait and tackle option as there is not one present w/in 25 min, but i dont even know where to start in figuring out the viability of this endevor. Is there anyone on here with experience in doing something like that. Id appreciate and tips anyone can offer from their experience.

[Oregon Native]

I wish you the best of luck....it will definitely cut into your fishing time.

[BigAngus752]

You should name it That Dam Bait Shop...

[slonezp]

Northern IL? Whereabouts?

[Bdnoble84]

Live in Oregon, grew up in Amboy

[Comfortably Numb]

Lots of small bait shops closing these days. Hard to compete with online and the big boys.

[Sam]

Great idea.

 

But no, I have no experience with bait shops other than what the owners have told me over the years.

 

I do know the following:

1.  You need someone to open by 5 AM for the fishermen.

2.  You need central station alarms for security and to monitor the live minnow tanks.

3.  You will need a computerized cash register that can help take inventory as purchases are made.

4.  You will need three to four retired guys or young men to help stock the shelves, help with patrons, and cover for you when you are not in the store.

5.  Your hours will be from 5 AM to 7 or 8 PM, all week days, and on weekends and holidays.

6.  The  monetary investment can be in the $100,000's of dollars so you need to try to keep your furniture and fixtures and improvements and betterments under $50,000. Speak with a banker on what type of loan you can get, etc.

7.  Don't cut back on your property-casualty insurance. Cover your real and personal property, stock and other pure risk exposures for 100% of their replacement cost via a Business Owners Policy with a $1,000,000 CGL limit and hired and non-owned car coverage. Have all loss of business income on an "Actual Loss Sustained" basis.  Add an Umbrella Liability contract and you will have the protection you need.

8.  Set up a separate "tax" account at your bank so you will have the funds to pay taxes when they are due.

9.  Interview a few CPA's to handle payroll and your state and federal taxes.

10.  Decide what level of fishing supplies you will sell.  From G. Loomis down to Ugly Sticks and Shimano down to Zebco. Know your customers and what they will need to be successful.

 

BD, these ten items are for starters. As you move along you will add to the list.

 

If possible, can you work for a local tackle shop to see what they do and obtain the names and phone numbers of the manufacturer's reps? You will learn what you like and don't like while taking notes for future contacts.

 

Good luck and let us know what you decide to do.

 

 

[NHBull]

Got a few shops in the area and both say the same thing...

”If you want to make a little money, you need to start with a lot”

Retail is retail, only the inventory is different. @Sam, got the last started and I would include a  traffic/ feasibility study.  Many colleges have business majors that will do this for free.  Also keep in mind, that your volume dictates your margins, and start-ups struggle in that area.

 

Good luck......I hope you can make a go of it, but don’t let your passion cloud your financial judgement.

[Bdnoble84]

Thanks for the tips, definitely a couple things i didnt think of. No way i could do it currently, but definitely something i want to start working towards. I dont want to wake up someday and realize i have the time to do it and not be prepared

[thinkingredneck]

One of the saddest things I ever saw was a guy who liked to fish who opened a bait shop and slowly lost his retirement savings.

[Troy85]

If possible, you should also have a small kitchen where you can cook up breakfast sandwiches.  I always stop at the bait shops that also cook food.  I'll call my food order in ahead of time, stop in and grab my ice, bait and bacon,egg and cheese on toast!

[Bdnoble84]

6 hours ago, Troy1985s said:

If possible, you should also have a small kitchen where you can cook up breakfast sandwiches.  I always stop at the bait shops that also cook food.  I'll call my food order in ahead of time, stop in and grab my ice, bait and bacon,egg and cheese on toast!

My wife has a cake studio on the other side of the building so im sure i would have food to provide quite often. Before she got her space i tried running the idea by her of opening a joint space and calling it Noble’s Cake and Bait. For some reason she did not feel prospective brides would find that very appetizing. Something about the idea of minnow water wafting in to meld in with her swiss marengue butter cream just did not mesh in her eyes.

[LadiMopar]

On 5/19/2018 at 11:59 PM, Comfortably Numb said:

Lots of small bait shops closing these days. Hard to compete with online and the big boys.

 

This is an unfortunate fact in many places, both of the small tackle shops I managed are long gone thanks to "the big box stores". 

 

The advantage I see @Bdnoble84 is you are right next to the water and inevitably folks forget to bring certain items, or they lose a favorite item and have a need to buy/replace things. About 30% of our business (terminal tackle mostly)was for this reason...oh shucks, I need hooks,weights,bobbers etc., and I'm not driving back to where ever to get them. Maybe 2% of that business was based on the " I lost my favorite lure" and I can't fish this place without it.

 

But the greatest part of our business revolved around two words...Knowledge and Service! Know your local area, know the water your customer base is targeting (species, seasonal regulations) and offer the things the "big box stores" never offer. ..on the spot basic rod/reel repair was one of the services that kept many of our folks coming back to us, if you can save someone's day on the water without emptying their wallet chances are you'll have a customer for life, and the positive word of mouth references from a happy customer are key to new people walking through your door; especially in the early days of your business...and it's cheaper and in many ways more effective than traditional advertising.

 

There are of course a million other things that go into this, and I'd be happy to share my experience with you. Feel free to PM me with any questions and I'll do my best to help you.

 

LM 

 

 

 

 

[Log Catcher]

The local tackle shop we have here gets a lot of their inventory from a tackle supplier. They only sell to retail outlets. A lot of times if they didn't have it in stock they could order it from the supplier and have it in a day or two.

[Deleted account]

On 6/17/2018 at 1:28 PM, Log Catcher said:

The local tackle shop we have here gets a lot of their inventory from a tackle supplier. They only sell to retail outlets. A lot of times if they didn't have it in stock they could order it from the supplier and have it in a day or two.

It isn't uncommon in sporting goods for smaller accounts to be serviced mostly or exclusively by distributors, independent sales reps, or other middle men. In some cases and with some manufacturers and brands, it's the only way they do business. Large national or international accounts sometimes have dedicated in house or external agents.

I don't wish sporting goods retailing on my worst enemy.

[TOXIC]

Is it going to be seasonal?  Lots of down time if it is.  If not, you have to do a lot of re-stocking from summer to ice.  I had a very close friend that owned a Tackle Shop in Michigan.  It drove him to drink and finally it took his life.  He tried to be viable in many ways.  Carried a lot of bowhunting equipment and became a certified trolling motor repair center as well.  I got to hear about the pumps going out on the live bait tanks during storms and losing thousands of dollars in bait (even though he got alerted and was in the shop within an hour.  Kind of soured me on what I also thought might be a fun business to be in.  

[MrFrost]

If it's where I am thinking, by the Village Hall, then I would think it would be a good idea, as the ACE Hardware doesn't really carry much, although they have enough to get people catching fish on the river, and the nearest bait shop directly across the river is an absolute joke and really should remove the "Bait Shop" form their business sign, as the last time I stopped in, they had less tackle than me, and I am lucky to fill a few 3700's, so I'm no tackle hoarder, and they had maybe four or five used spinning rod/reel combos.  They didn't have any live bait, so I went to the BP next door.  

[Bdnoble84]

Thanks for the advice. It gave me some things to think about. Its not something i would be doing within the next couple years but its definitely something i wanted to start thinking about now. Alot of what my fears would be have been voiced on here. And yes mr frost, that is the location. I havent been in the other place yet. Hadnt even heard of it until 2 weeks ago.

[MrFrost]

5 hours ago, Bdnoble84 said:

And yes mr frost, that is the location. I havent been in the other place yet. Hadnt even heard of it until 2 weeks ago.

ACE has more to offer, lol.  That being said though, in their defense, it seems that they are transitioning their business from a bait shop to a bar/cigar lounge completely, but haven't sold their left over bait shop inventory yet.  I could be wrong, and if I am, then there inventory is just sad.  

 

It may be beneficial to go just to converse and see how their bait sales were.  The only reason I could see a bait shop not doing well, is because when I fish right by the dam, I notice it's literally guys with a bunch of rods setup with chicken liver or night crawlers fishing for cats.  Catching their limit and leaving.  Could be why the only real bait shop in town is giving up, as the BP right on the corner provides that and ACE has hooks, bells, and line.  

[thinkingredneck]

Some people are born retailers.  I believe that.  

 

Is there a local fishing club?  Are their crappie in the lake.  If so, offer hand tied jigs, Slater jigs, etc.

 

If your wife has a successful cake business, y'all understand perishable stock.  

[Bdnoble84]

They just bought the place. I was under the impression that it was solely a cigar bar. Guessing they are just getting rid of left over product. If i ever stop working so much d**n much i’ll pop in and see what they have going on.

[Buffdaddy54]

On 5/20/2018 at 10:55 AM, NHBull said:

Got a few shops in the area and both say the same thing...

”If you want to make a little money, you need to start with a lot”

Retail is retail, only the inventory is different. @Sam, got the last started and I would include a  traffic/ feasibility study.  Many colleges have business majors that will do this for free.  Also keep in mind, that your volume dictates your margins, and start-ups struggle in that area.

 

Good luck......I hope you can make a go of it, but don’t let your passion cloud your financial judgement.

TRAFFIC/FEASIBILITY STUDY!

[MrFrost]

14 hours ago, Bdnoble84 said:

They just bought the place. I was under the impression that it was solely a cigar bar. Guessing they are just getting rid of left over product. If i ever stop working so much d**n much i’ll pop in and see what they have going on.

That makes absolute sense...and would definitely explain why it seemed like a forgotten part of the business.   

[BobP]

I think you almost have to born into a retail family to understand what it's  about, what the life is like, and the pitfalls you run into.  Suffice it to say that when my successful retail business owner Dad decided to retire, none of us four kids raised a hand to take over the business.  We had all worked in it since our early teens and learned first hand how tough it is to make a small business successful.  Unless you can say “I’m a true hard headed realist”, you are cruising for a bruising.

[LadiMopar]

Thought some of you might like to see this article on one of our local tackle shops and its owner.

http://www.newburyportnews.com/news/local_news/plum-island-fishing-community-remembers-kay/article_4a463831-975f-5556-9060-dac7572a71a5.html