Home – New Forums Starting your journey Business Idea.. need some pointers/feedback!

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  • #975847
    jsncrs
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    Hey guys,

    I’m 22 years old, live in Ballarat, Victoria. I’ve always wanted to start up a Hip Hop store with a recording studio attached. Been thinking about it for a long time, and have only recently started giving it some serious thought.

    I think there is a fairly decent market for it, mainly because there’s nowhere to buy decent clothes in my city, unless you’re into the whole beach/surfy culture. I’d like to sell art & graffiti supplies, clothing, merchandise, vinyl & CD’s and basically anything Hip Hop. (A mate of mine imports Chopper bikes, and he’s pretty keen to work out a deal to sell those also)

    Would also like to have a recording studio out the back. I’ve got most of the equipment and plenty of know how, so this part shouldn’t be too difficult.

    Anyways, just wanted to get some feedback from some of you guys who may have had some experience in this area. I have absolutely no idea where to start, and some pointers would be very helpful.

    #1076855
    dextereugenio
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    i dont have any experience other than to say “do it” as hip hop is in my blood.

    im almost 35 and have been listening to it since i was 12.

    do it do it do it do it!!!

    personal taste aside, being a niche in a small market in a small town is extremely difficult.

    if you do, do it, look at going online as one of the first things to consider so youre not just stuck doing the normal b&m type sales which will be sucky for you.

    the studio is an interesting idea and one that could really help you out.

    anyway, back onto personal stuff, do you do beats? i might need some for a business thing…

    #1076856
    yourvirtualboard
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    A fairly common mistake is to believe / feel / think there is a good market for whatever product or service you wish to provide.

    People / businesses only buy for 2 reasons;
    1) Want and
    2) Need

    In your case I’m leaning more to want than need (also the easier of the two to work with, less justification required on the part of the buyer). However some solid research into who you would be targeting to sell your product / service to and what are their opinions on your idea would be a good starting point.

    You would need to cover a certain cost base and the calculation would be;

    enough interested people x purchase price (of your product / service) x frequency of purchase (take a year) = potential annual turnover.

    From that you need to take;
    potential annual turnover – costs associated with delivering your product service (anything you buy to on sell) – expenses (all the costs associated with running what you have in mind, like rent, utilities, communication, wages etc.) = profit

    Now if you are happy with the wage you might be able to get from this then profit can be very low or even zero and it would work but if profit is negative then you might want to rethink.

    #1076857
    jsncrs
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    gossipism, post: 96988 wrote:
    i dont have any experience other than to say “do it” as hip hop is in my blood.

    im almost 35 and have been listening to it since i was 12.

    do it do it do it do it!!!

    personal taste aside, being a niche in a small market in a small town is extremely difficult.

    if you do, do it, look at going online as one of the first things to consider so youre not just stuck doing the normal b&m type sales which will be sucky for you.

    the studio is an interesting idea and one that could really help you out.

    anyway, back onto personal stuff, do you do beats? i might need some for a business thing…

    Glad to see another Hip Hop head on the boards! I’m not really into the production side of things, used to be when I was younger, but mainly focus on writing/recording now. Here’s one of my tracks if you’re interested in checking it out: http://www.youtube.com/watch?v=nm3UIFIqK2s

    #1076858
    MyGreatIdea
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    jsncrs, post: 96976 wrote:
    I think there is a fairly decent market for it

    Then you need to determine who your ideal customer is and do your market research. Would you actually be able to find enough buying customers to make it feasible? What would your startup costs be? What would your operating costs be? How much stock would you have to carry? Would you be online or bricks/mortar (or both)? What would be your marketing plan? How would you finance it all? How much would you have to turnover each week to survive? and is that turnover achievable?

    If you can research these questions, then you’ll have a fairly good idea of whether or not it’s a viable business.

    Good luck !

    Wendy :)

    #1076859
    jsncrs
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    yourvirtualboard, post: 96989 wrote:
    A fairly common mistake is to believe / feel / think there is a good market for whatever product or service you wish to provide.

    People / businesses only buy for 2 reasons;
    1) Want and
    2) Need

    In your case I’m leaning more to want than need (also the easier of the two to work with, less justification required on the part of the buyer). However some solid research into who you would be targeting to sell your product / service to and what are their opinions on your idea would be a good starting point.

    You would need to cover a certain cost base and the calculation would be;

    enough interested people x purchase price (of your product / service) x frequency of purchase (take a year) = potential annual turnover.

    From that you need to take;
    potential annual turnover – costs associated with delivering your product service (anything you buy to on sell) – expenses (all the costs associated with running what you have in mind, like rent, utilities, communication, wages etc.) = profit

    Now if you are happy with the wage you might be able to get from this then profit can be very low or even zero and it would work but if profit is negative then you might want to rethink.

    Thanks for the detailed response, some great thinking points in there. Might have to do a bit more research first. A family friend of mine said that there could be a government grant or something for new business owners, is that true?

    #1076860
    dextereugenio
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    thanks harry for killing the fun! :)

    though he is right. it takes a lot of effort to go from idea to conception to doors opening to profit.

    but, there has to be a certain amount (re: alot) of passion involved in the process, of which you probably have heaps.

    i mean, who wouldnt want their own hip hop store. seriously people.

    :)

    #1076861
    bluepenguin
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    That track on youtube is awesome.

    Richard Branson started out with a record store and then a recording studio.
    If you haven’t read his autobiography Losing My Virginity, you might find it inspirational.

    #1076862
    yourvirtualboard
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    jsncrs, post: 96992 wrote:
    A family friend of mine said that there could be a government grant or something for new business owners, is that true?

    There are grants available for different things but a pure start up grant I’m not aware of – they may be thinking of the New Enterprise Incentive Scheme but some specific conditions have to be met to get this.

    @gossipism – who doesn’t want to live the dream, just need to make sure the dream is possible

    :)

    #1076863
    jsncrs
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    bluepenguin, post: 97002 wrote:
    That track on youtube is awesome.

    Richard Branson started out with a record store and then a recording studio.
    If you haven’t read his autobiography Losing My Virginity, you might find it inspirational.

    Thanks for the feedback :) Sounds like an interesting read, may have to check it out. Thanks again!

    #1076864
    dextereugenio
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    jsncrs, post: 96990 wrote:
    Glad to see another Hip Hop head on the boards! I’m not really into the production side of things, used to be when I was younger, but mainly focus on writing/recording now. Here’s one of my tracks if you’re interested in checking it out: http://www.youtube.com/watch?v=nm3UIFIqK2s

    love the beat!

    you got a good flow too.

    i like it.

    someone needs to do something “online” for hip hop in particular aussie hip hop. though its not my cup o’ joe (i prefer old skool / underground) i do appreciate the work involved and clearly some of the spit i hear is just plain out ill (sorry for getting all gangsta on you all, hehe)

    though the bricks and mortar could be an idea, online clearly is where it’s at.

    #1076865
    AgentMail
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    I would definitely recommend reading ‘Losing My Virginity’ – not specifically because of the recording studio thing, but just to give you some grounding about some of the mistakes others have made, and how ideas evolve. Mind you, there are countless other books that are worth reading too.

    It is a very big decision to make to take on a retail premises. At minimum, you would be looking at $25k per annum in rent, plus outgoings and expenses, stock can date very quickly and clients can be hard to come by, especially in such a niche market.

    As others have mentioned, online would be a great way to at least start out. You can then at least judge the geography of your buyers, and assess what business benefit having a premises would provide.

    First place to start would be http://www.business.gov.au and from there a number of links to different pieces of assistance, such as mentors, events, taxation and on and on

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