How to Start a Musical Instrument Retail Business
Starting a retail music store isn't as simple as it used to be. Competition from chains such as Best Buy and Guitar Center remains a brutal fact of life, as does the allure of shopping online. Securing the credit needed to weather the hard times remains uncertain as ever. Still, even these problems can be overcome by putting a premium on creativity and customer service. Niche marketing is the best bet for survival of a musical instrument business.
First, think carefully about the type of music store you envision. Are you catering to the "weekend warrior" or the working musician? Will you specialize in hand percussion or resonating steel guitars? Your passion and experience will guide the answers, which you must know to determine why your store is special.
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Things You'll Need
- Building and zoning permits
- Bulletin board
- Business plan
- Catalog
- Fliers
- Mailing list
- Promotional displays
Instructions
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Plan Your Venture
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Interview people--preferably those with music backgrounds--to handle the key responsibilities, such as instrument repair and service, mail order, music education and sales. Determine their dedication and willingness to grow with you, because you'll spend at least the first couple of years building your business.
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Establish partnerships with local churches, clubs, schools and associations. Besides local musicians, these clients offer an opportunity to promote your business and build a loyal customer base. School band and orchestra instruments will likely make up a big part of your inventory, so never miss a chance to cater to those interests.
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Sell plenty of related products and services that customers will expect, such as music stands, sheet music and songbooks. Create a full-time music education and rental department that offers a hands-on learning experience for local residents, backed up by employees with the appropriate skills and credentials.
Build Community Ties
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Create space for a bulletin board where local bands and music fans can post notices. Offer extended hours so that you can cater to your customers' varying school and work schedules. Build ties to the community that you plan to serve, however you can.
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Start a fan club or discount program to make regular and school customers feel special. Everyone likes hearing about a great deal first, so find ways to capitalize on that feeling. This is where a strong online and mail order sales presence can make a big difference, in terms of mobilizing your customer base.
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Allocate space inside your store for special events to build customer loyalty. These can include CD release parties, signing sessions, live shows by hot local and regional acts or open mic nights--your imagination and instincts will tell you what works best. Tie these events to key occasions, such as your first anniversary, to keep your store in people's minds.
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Tips & Warnings
Pick other retailers' brains for ways to grow your business and have them critique your business plan. If you're hearing too many unanswered questions, rewrite the document.
Never stop rethinking what you do. The 1990s and 2000s saw rapid changes that altered the music industry forever, and retail business is no exception. Strive to stay on the cutting edge of retail trends and technology. This way, you won't fall into ruts that will undermine your business.
Never buy nor lease a space that doesn't offer at least some of your own parking. Failing to provide this need is a surefire business killer.
Always inspect your new space before committing to a lease agreement. Failure to spot leaky roofs or faulty heating and cooling systems can lead to serious sticker shock when it's time to fix them later.
