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Carter Hoerr advised on 14 Jan 2012
Experienced Business Manager; National Expert, Online Meal Ordering
I like the big thinking! But this is about like asking, "How do I start a small country from my kitchen table?" Costco is a huge operation, with dozens/hundreds of locations and major financial backing to fund management, real estate, purchasing, inventory, marketing and more.
If -- and this is a BIG if -- you have the financial resources to research the market, secure a good commercial location, fill it with fast-moving inventory at a low cost, hire and train employees to run the store, market your new business to generate a steady flow of paying customers, and then hang through a million ups and downs until you've got real positive cash flow, you can do this. (Then Costco will come in and build right next to you, and you'll REALLY have a challenge on your hands.)
Hope that's helpful. Let's talk more about it!
If -- and this is a BIG if -- you have the financial resources to research the market, secure a good commercial location, fill it with fast-moving inventory at a low cost, hire and train employees to run the store, market your new business to generate a steady flow of paying customers, and then hang through a million ups and downs until you've got real positive cash flow, you can do this. (Then Costco will come in and build right next to you, and you'll REALLY have a challenge on your hands.)
Hope that's helpful. Let's talk more about it!
1
Thinking about starting a discount store is one thing... thinking about doing anything like Costco is another, and is not recommended.
Did you know?
When Price Club (which later merged with Costco) started in 1976, it was started in an airplane hangar which the owners remodeled. I'm guessing they used this space not because of it's prime location but because it was cheap, available and within the means of the owners.
Costco was founded in 1997 by two guys who had a background in wholesale distribution and retail. The first actually worked for the owner of Price Club back in the day.
I'm sharing the history of Costco to demonstrate that businesses like this don't start out with big thinking and they aren't started by industry newbies. They start small and they start with industry veterans.
Does this mean you can't start something that will eventually become Costco? Heck no! You can. But you need to re-frame how you are thinking about.
Here's my advice:
Find a flea market nearby. Visit it within two weeks. What's missing? What can you sell there that nobody else is? What skills can you can leverage to do something unique at that flea market?
Pick something and setup shop at the flea market within four weeks. Sell your fingers off. And ask every customer who comes by what's missing.
Through this experience you will learn a ton about retail and what customers in your area really want. If you do this, I promise you'll be farther along and have a more clear vision for your new business. And please, keep us in the loop with your progress.
Did you know?
When Price Club (which later merged with Costco) started in 1976, it was started in an airplane hangar which the owners remodeled. I'm guessing they used this space not because of it's prime location but because it was cheap, available and within the means of the owners.
Costco was founded in 1997 by two guys who had a background in wholesale distribution and retail. The first actually worked for the owner of Price Club back in the day.
I'm sharing the history of Costco to demonstrate that businesses like this don't start out with big thinking and they aren't started by industry newbies. They start small and they start with industry veterans.
Does this mean you can't start something that will eventually become Costco? Heck no! You can. But you need to re-frame how you are thinking about.
Here's my advice:
Find a flea market nearby. Visit it within two weeks. What's missing? What can you sell there that nobody else is? What skills can you can leverage to do something unique at that flea market?
Pick something and setup shop at the flea market within four weeks. Sell your fingers off. And ask every customer who comes by what's missing.
Through this experience you will learn a ton about retail and what customers in your area really want. If you do this, I promise you'll be farther along and have a more clear vision for your new business. And please, keep us in the loop with your progress.
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Carter Hoerr advised about 1 year ago
I like the big thinking! But this is about like asking, "How...
I like the big thinking! But this is about like asking, "How...