New business venture - advice and ideas required

[Shinesalight]

My girlfriend and I were trying to think of ways we could make a little bit of extra money on top of our existing jobs when she suggested that maybe it could be something to do with vinyl as this is something that I have become very passionate about. Having never worked in a record shop, nor had any dealings with wholesalers or distributors I am a) unsure where to start and b) wondering if the profits would eclipse the time and effort involved?

The way I see it, I would initially look to build up a small amount of stock, say £500-£1000 worth, and look to sell this at the local record fair or on a stall at a local street market or two. I think I would stick to new vinyl as I think the 2nd hand market is too much of a gamble and I would have to spend too much time sourcing products. I'm totally in the dark as to what, as small marker trader, the tax implications would be, whether I would have much, if any, leverage with the record companies/vinyl wholesalers and what kind of mark up I could look to make. I certainly don't want to come across as one of those money grabbers who looks to make a huge profit from limited edition vinyl or RSD releases, just someone who can be relied upon to get hold of quality records at a reasonable price. As my reputation as a dependable supplier of hard-to-get-hold-of, quality vinyl grew then I would look to increase stock, perhaps even rent a more permanent space or go online.

Like I said, these are just thoughts we have been bouncing off each other so I'd love to hear if any of you have any advice. I know a couple of you on here (I'm looking to you Runcible and Spzretent in particular) have run record shops in the past, so perhaps you would have a better idea of whether this is a plan that could be worth trying out or if I'm just deluding myself?

[The Dr]

i know nothing about the record buisness but just watching local ones (who were very successful) closing and blaming amazon and hmv (irony) makes me think that it will be a very hard market to crack. of course you can join up with another ( Runcible and Spzretent hyperthetically) and become a south uk distribution centre/buyer etc but independently i think very very few buisneses are doing well, especaily new ones... but anyway, good luck!

[spzretent]

I have loads of advice but I am swamped at the moment with my other career. Moving seniors. See WW2 thread.
I will chime in over the weekend.
This is a subject I am passionate about.

[runcible]

When I stopped selling music - about 1999 - it was a time when the retail side of music had started to fall apart. Stuff that we ordered to sell we then found cheaper than we could buy it for in places like HMV. The big boys ran everything and the little guys got squashed all over the place.

If you are looking to make a lot of money at this I'd think twice - it's not a high profit industry generally speaking. It does take a lot of work and early mornings, but if you happen to be as music obsessed as I know you are that shouldn't matter. Also bear in mind that vinyl is in itself a heavy product and you will be doing a lot of lifting in and out of cars.

Record fairs, at least when I used to work at them, were rather odd affairs. I haven't been to one for some time as since Runcible stopped trading the web exploded and with it availability of stuff you would normally have to go to a record fair to obtain. We started to find that you would get roughly the same set of stall holders at most of the fairs we went to. Wimbledon, Camden, Guildford, Oxford, Reading.... The same set of faces - and often stock - would be there. The larger fairs - in my day the one in Victoria was the key event - were different as international dealers would come to those.

You really need to have a passion for the stuff you are selling as well as a lot of patience. For every bustling fair you might stall out at there will be 5 where you sit and wonder why no one is buying your stock. So I'd be cautious. People do make it work - most are not full time sellers - but it takes a lot of effort.

I would also look at selling through places like Discogs and Ebay. I know you pay the commission but it can be very profitable if you get it right. I sold a whole mass of stuff a couple of years ago when I needed to raise some ££ quickly and I did well. If you carefully select your stock - usually at record fairs you attend - it can work. That's the other thing - if you are a sucker for music you end up spending half your profits on music for yourself at the fairs you are selling at!

[spzretent]

Here is what I would suggest. Do something like what we have done with Dock Ellis retail. You could get a cheap internet storefont on Big Cartel of if you amass quite a list Shopify.
Do you know anyone friends or aquaitances who want good, hard to find records? Like GPS stuff or Hookworms stuff? Thats is where I would start.
American records have become very expensive to ship over. I would offer to help you out but it just becomes ridiculous with postage.
No idea of the tax implications in the UK. But Record Fairs are good as they are once or twice a month. I would also scour charity shops and car boot sales to try and find good quality used vinyl as your mark up is infinitely higher there.
If you go for it I would keep your stock fresh. Keep it moving. If you pick up good records second hand that sit around trade them in at a second hand shop you trust. That also helps you build a good relationship with a shop.
Stay away from retail unless your business explodes. Its a money pit.
I think sticking with a few select labels as mentioned above and looking for good used vinyl are the most practical way to go.
And it is pretty fun when you are on a run of good luck while searchhing for used vinyl. Use Discogs as a prectical pricing tool. Also check closed auctions on ebay.

[Shinesalight]

Thanks everyone for their thoughts and advice. Sorry I haven't responded sooner but life has been rather hectic of late...wedding planning for next year has gone to a new level, we've just sold our house and are waiting to hear back on offer we've put in to buy another and then my 98 year old Nan had a fall and has had to undergo a hip operation! For now, all dreams of starting a record empire have been put on hold, but I'm hopefully going to be able to revisit them once the dust settles

Thanks, Adam...