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Step 1
Create a business plan that is specifically geared toward the record store business. An average business plan will not suffice. Include the details in your business plan. Create a clear map that will list how, when and where you plan to acquire your merchandise. Study how other similar stores have turned a profit, and write out how yours can do the same. You'll need an airtight business plan to get support and funding for your business.
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Step 2
Go to the Small Business Administration. See the link in the Resources section for this great organization. Not only can you find grants and funding for your business, you can request a local mentor to help walk you through the process.
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Step 3
Decide what sort of merchandise your store will sell. You could have a combination of new and used records. You could choose to sell vinyl, compact discs and cassette tapes. You could even sell iPods and iPod products alongside the records. Amoeba in Hollywood is a great example of a store that balances all of these things. They even have a movie section and sell posters.
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Step 4
Visit the record stores in other cities. While you certainly don't want to copy any nearby competition, emulation of a national success is a good thing. You want to strive for originality but learning from tried and true examples is smart.
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Step 5
Submit your business plan to local banks. Start a business bank account. You will have more luck if you do all your banking with one bank, since special favors are extended to really good customers.
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Step 6
Choose a location for your business. It should be in an area that isn't served by a music or record store. It should also be in a hip place for young people. Record stores are frequented the most by those in the know on the music scene. This isn't always the younger crowd, but it often is. Go to the potential location on busy and slow days, even on holidays. You can see the sort of foot and car traffic that your business might acquire. It's important to do careful scouting, observing and consideration before choosing your location.
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Step 7
Buy or lease the location. It's smarter to buy if you have the available funds and plan on staying in the business long-term. For short term businesses--or businesses starting on small funds--leasing is the way to go. Have a lawyer look over all the paperwork so you're sure that you do what's right for your interests.
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Step 8
Network with other small business owners. After securing the lease or mortgage at your store location, introduce yourself to your neighbors. Businesses that share your goals and neighborhood can end up being your greatest allies in dealing with the natural challenges that will come your way as a business owner. From taxes to health concerns to problem customers, you can rely on your neighbor for help. Just make sure you are a good neighbor yourself.
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Step 9
Stock your store. Now that you have a location, it needs to be full of shelves, a computer or cash register (usually both), and the records.
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Step 10
Hire employees up to a month before opening. You will need help to stock, prepare and plan your store. You want to make sure that you over hire by a bit. Hiring more people than you can afford or need isn't wise, but keep in mind that part-time employees come and go, particularly young people or students. Choose people who are qualified and are hard workers. Avoid getting personal in the hiring process. You don't have to be best friends with your employees, but you need to respect their work ethic and hard work for your company.
