I quit my job and bought a shoe store

[The Sandman]

I'm ready for your best Al Bundy jokes! Let 'em rip!
My intro thread: INTRO - Changing lanes at 40

This definitely was not the original plan! I was searching for manufacturing but not finding much, and what I did find were either poorly priced or without financial records. I widened my search and most everything was poorly priced or without good records, or both! There's a lot of junk out there!

Enter this shoe store: good, legit accounting records going back 5 years (business has been in current location for over 10). Fair asking price that I could afford without needing an SBA loan. Clear value skew (medical focus and knowledgable service) and a long-term employee wanting to stay on. Seemed like a great opportunity so here I am: a first-time business owner!

There was a bit of negotiation, hurdles, and paperwork to get here, and I'm still getting things set up with the accounting firm and vendors. But I've quit my job as an engineer and am selling shoes! LOL! It's sounds crazy but I'm really enjoying the change. Working way more hours but time's flying by as it's more engaging.

2 days after quitting had a family emergency that overshadowed everything. We're dealing with it and things are starting to calm down, but it's been rough.

Here's my plan:

1) Work the store (management and sales) in order to learn the business and get a good handle on cash flow.

2) Promote long-term employee to manager (done).

3) Hire and train 2nd employee so that between the two of them they can handle day-to-day operations, giving me time to focus on growth/other opportunities. I'm still getting a feel for cash flow and we're entering the slow time of year, so I'm targeting hiring in the spring. This is my main plan for improving the business CENTS. I don't know how much I can scale profits, but I believe I can significantly reduce my TIME component.


Couple areas where I could use some advice:
1) POS/inventory/customer tracking system. Currently using an old-school cash register and manually taking inventory to see what to order. It works but it'd be nice to track customer history. An affordable, flexible system could be great. Anyone piece together their own system?

2) Advertising! The only advertising the store has done in years is emailing out coupons to customers who leave their address, and keeping a facebook page. The store is well known locally and many doctors and chiropractors send their patients there. The customer base is older so I'm not looking to make tiktoks!

 

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[FastNAwesome]

Welcome to the forum and best of luck on your path to fastlane!

Seems like you got a good thing going and will figure out along the way how to make it even better.
You got this!

Beautiful doggo!

 

[FIFL]

Congrats! Look forward to hearing how you progress.

Sounds like you need a nice simple POS/CRM. Something like Square or Vend might be suitable. You might like to choose one that will give you the ability to do a newsletter/email awareness for your customers.

You could have a seperate, simple inventory system. If you want/need integrated inventory, you might need someone else to help, or search around.

Sounds a little as though the referral channel is part of your new marketing strategy.

Best of luck sir

 

[Johnny boy]

reach out to every doctor office and chiropractor outside of the current area and try to show them your shoes and why people send their patients there and maybe name drop.

try to add systems that will make this able to sell to people outside of that location.

if it works there it probably works in other areas, and we have this cool thing called the internet and shipping that raises your available audience from a few thousand to a few million.

 

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[Private Witt]

I'm ready for your best Al Bundy jokes! Let 'em rip!

OK, OP in 12 months...

 

[inputchip]

If you aren't selling online, you are missing out on what could be a serious cash cow. This would be my top priority.

Don't toss out the idea of Tik Toks or other video marketing. Almost every social platform has some sort of short-form video content now. And you better believe the 50+ year olds are on these platforms.

 

[The Sandman]

One pain-point I'm seeing is inventory management. At this point it's entirely manual: traditional cash register and separate CC machine.

Ordering process:
Check floor inventory to identify missing products, make order list.
Check back room for these product (if found move to front, cross off list)
Check list of offsite inventory. If found cross off order list, retrieve item after work.
Go to vendor site and check current orders, removing already-ordered items from list.
Enter new order.

I'd like to automate the inventory tracking/ordering process a bit.
Primary goal is inventory tracking to help with ordering.
Secondary is to track customer history.

The system needs to add more value than cost.
Can anyone here recommend a POS software/system? Anyone make their own using excel/access?

 

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[mamamargaux]

Converting inventory to digital is tedious x number of branches you have. But it can be done. Goodluck. As for advertising, maybe try contacting chiropractor groups or new clinics in the area. Send a catalog or as to post a QR code with a catalog for their patients to browse.

 

[LateStarter]

One pain-point I'm seeing is inventory management. At this point it's entirely manual: traditional cash register and separate CC machine.

Ordering process:
Check floor inventory to identify missing products, make order list.
Check back room for these product (if found move to front, cross off list)
Check list of offsite inventory. If found cross off order list, retrieve item after work.
Go to vendor site and check current orders, removing already-ordered items from list.
Enter new order.

I'd like to automate the inventory tracking/ordering process a bit.
Primary goal is inventory tracking to help with ordering.
Secondary is to track customer history.

The system needs to add more value than cost.
Can anyone here recommend a POS software/system? Anyone make their own using excel/access?

Edited: I was originally asking about current POS and pricing as reference, but forget it.

When you visit other small businesses in your area, see what they are using and ask for feedback on the pros/cons.

I have some friends with a retail store using Clover (POS System & Credit Card Readers | Clover). They seem to like it. Every system has it's drawbacks but it depends on what you're willing to make sacrifices on. Clover can manage inventory and staff schedules as well as handling the CC and cash transactions. It has integrations that can work with other systems (including other inventory management solutions if you don't like theirs). Fairly decent reporting too I'm told, ...but all hearsay since I don't have first party experience with it.

 

[Ismail941]

This is good! Thanks for sharing and working! (y)

 

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[The Sandman]

It's been a year and then some, so...

j/k!

I'm doing pretty well. Been a whole lot of LIFE going on. My main complaint about my last job was that it was boring.
Well, I don't have that problem anymore!

Two days after buying the business my son hung himself at school. Fortunately he changed his mind and was able to kick back up the hill and take the rope off his neck. This came as a total shock as he seemed to be doing well: solid B average, 1st-chair viola in the school and regional orchestras, and a close girlfriend of several months. Covid and the lockdowns were rough but he was doing better! We couldn't understand it, but it turns out he had "silent thyroiditis," which triggered a rapid onset of suicidal thinking.

He's doing better, but still not as well as he was before. Fortunately I've been here to help, and he's been working part-time at the store. I'm pretty sure he couldn't hold down a job otherwise. At least he's getting some experience and I can see improvements.

Store sales were up 12% YOY. I can't say how much was due to the economy and how much was what I did, but I've gotten good customer feedback. The biggest change has been increasing inventory: it's double what it was when I bought it. Of course this has sucked up cash flow but I haven't put any more of my own money in, and I've paid off the $75k loan from the seller.

In the middle of last year we found out that my daughter's best friend (both 13) was getting kicked out and going to foster care. We thought this would be terrible for her and that we could provide a better home for her, so we took her in and are now her legal guardians. So now we have TWO middle-school-aged girls. Yay.

She has been a real handful and definitely has issues. But we can see she's trying and is doing somewhat better.

A local magazine voted us "Best place to buy shoes," which is pretty cool.
Just recently I've set up a POS (retail edge) and pulled out the old cash register. We're still learning and getting inventory entered in but it already looks helpful. I feel like I've done way more "working the business" instead of "working on the business," so it's nice to make some progress there.

Now, 2 weeks ago I get a call about another shoe store for sale. The store is a pretty cool, down town brick building built 120 years ago to be a shoe store. We've talked about how great it would be to move into that building and have more space, as my store is FULL. But the sales trend is TERRIBLE!


I told the broker it's a zombie business (dead but doesn't know it yet) and therefore not really worth anything other than the asset value, which is mainly inventory. And inventory without a functional business is worth pennies on the dollar.

But I can see where the current owner has done a poor job. If she had done a good job it would be a major competitor for my store. And I got to thinking about the strategic possibilities that I'd have if I acquired the business.

I put together a rough concept offer of no money down, seller financing for the wholesale inventory value. My risk would be minimal, and if I can make it work I'd have 2 stores and the seller would get paid. Operating expenses, including my salary, would get paid first. I didn't think she'd go for it, but she was surprisingly receptive. The main sticking point is she wants some money down mainly to pay the brokerage fee, so that she's not paying out of pocket.

We don't have a deal yet, and I'm torn whether I even want one. My plate is FULL. But if I need to do more and we can structure it so that it's too good of an opportunity to pass up, well, guess I'll figure something out! I feel like God is just piling it on, and I just need to accept these burdens and opportunities he keeps sending my way. My job is to try, and what will be will be.

 

[aragornelessar]

It's inspiring reading your posts. It sounds that with kids and work combined, you really do have a full plate!
However, no doubt after your experiences in life, and even knowledge in engineering (cause and effect) you have discovered that very rarely is a person capable of sustaining a situation outside of their means.
Or in other words, if some sphere in life delivers a blow, and you're not only able to withstand it but also build a way forwards, then chances are you will be able to do the same again, and again.
You seem tenacious. It's encouraging to read.

As far as your automated inventory tracking problem is concerned; I had a look into a similar thing for one of the businesses my family started a few years ago. It's definitely doable; the easiest way would be to use QR codes. Only problem would be trying to get your vendor to incorporate them into their own usage...otherwise you would have to be labeling every thing yourself as they came in...also doable, but very tedious.

Keep up the great work. You're an inspiration!

 

[BrightAhead]

Happy to see this thread. Read it all and man...one can tell you are a good guy just from going through it. I wish you nothing but success.

In your shoes -pun intended-, I would buy the second store hands down. I know your plate is full but making sure nobody else enters the game (although never guaranteed even with the second location) and being you your only competition for now, is solidifying the future.

 

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[bc0510]

It's been a year and then some, so...

j/k!

I'm doing pretty well. Been a whole lot of LIFE going on. My main complaint about my last job was that it was boring.
Well, I don't have that problem anymore!

Two days after buying the business my son hung himself at school. Fortunately he changed his mind and was able to kick back up the hill and take the rope off his neck. This came as a total shock as he seemed to be doing well: solid B average, 1st-chair viola in the school and regional orchestras, and a close girlfriend of several months. Covid and the lockdowns were rough but he was doing better! We couldn't understand it, but it turns out he had "silent thyroiditis," which triggered a rapid onset of suicidal thinking.

He's doing better, but still not as well as he was before. Fortunately I've been here to help, and he's been working part-time at the store. I'm pretty sure he couldn't hold down a job otherwise. At least he's getting some experience and I can see improvements.

Store sales were up 12% YOY. I can't say how much was due to the economy and how much was what I did, but I've gotten good customer feedback. The biggest change has been increasing inventory: it's double what it was when I bought it. Of course this has sucked up cash flow but I haven't put any more of my own money in, and I've paid off the $75k loan from the seller.

In the middle of last year we found out that my daughter's best friend (both 13) was getting kicked out and going to foster care. We thought this would be terrible for her and that we could provide a better home for her, so we took her in and are now her legal guardians. So now we have TWO middle-school-aged girls. Yay.

She has been a real handful and definitely has issues. But we can see she's trying and is doing somewhat better.

A local magazine voted us "Best place to buy shoes," which is pretty cool.
Just recently I've set up a POS (retail edge) and pulled out the old cash register. We're still learning and getting inventory entered in but it already looks helpful. I feel like I've done way more "working the business" instead of "working on the business," so it's nice to make some progress there.

Now, 2 weeks ago I get a call about another shoe store for sale. The store is a pretty cool, down town brick building built 120 years ago to be a shoe store. We've talked about how great it would be to move into that building and have more space, as my store is FULL. But the sales trend is TERRIBLE!
View attachment 54336

I told the broker it's a zombie business (dead but doesn't know it yet) and therefore not really worth anything other than the asset value, which is mainly inventory. And inventory without a functional business is worth pennies on the dollar.

But I can see where the current owner has done a poor job. If she had done a good job it would be a major competitor for my store. And I got to thinking about the strategic possibilities that I'd have if I acquired the business.

I put together a rough concept offer of no money down, seller financing for the wholesale inventory value. My risk would be minimal, and if I can make it work I'd have 2 stores and the seller would get paid. Operating expenses, including my salary, would get paid first. I didn't think she'd go for it, but she was surprisingly receptive. The main sticking point is she wants some money down mainly to pay the brokerage fee, so that she's not paying out of pocket.

We don't have a deal yet, and I'm torn whether I even want one. My plate is FULL. But if I need to do more and we can structure it so that it's too good of an opportunity to pass up, well, guess I'll figure something out! I feel like God is just piling it on, and I just need to accept these burdens and opportunities he keeps sending my way. My job is to try, and what will be will be.

You have done a great job, first you left the rat race, and now running your business successfully. I would definitely by this second store to scale the business. However, you should look for better management of your inventory, pos, marketing, and sales. Having everything in place will give you enough time to do more.

 

[The Sandman]

It's inspiring reading your posts. It sounds that with kids and work combined, you really do have a full plate!
However, no doubt after your experiences in life, and even knowledge in engineering (cause and effect) you have discovered that very rarely is a person capable of sustaining a situation outside of their means.
Or in other words, if some sphere in life delivers a blow, and you're not only able to withstand it but also build a way forwards, then chances are you will be able to do the same again, and again.
You seem tenacious. It's encouraging to read.

As far as your automated inventory tracking problem is concerned; I had a look into a similar thing for one of the businesses my family started a few years ago. It's definitely doable; the easiest way would be to use QR codes. Only problem would be trying to get your vendor to incorporate them into their own usage...otherwise you would have to be labeling every thing yourself as they came in...also doable, but very tedious.

Keep up the great work. You're an inspiration!

Everything comes barcoded, so my first inclination was to use the factory barcodes. But the POS support guy advised applying our own barcodes instead so that's what we're doing for now. I like how it's working so far.

Totally agree about trying to sustain an unsustainable situation! I'm a huge proponent of being brutally honest when evaluating "I can put up with this for now" or "This shit can't last. Something has to change." And yeah, even if you can deal with the heavy loads for a while you may find it affects you in other ways. I've learned that I'll have a tendency to "act out" in uncharacteristic ways, or make questionable decisions.

As a current example, I've decided to grow a mullet. I'm old enough to know better, but my IDGAF meter is running high.

 

[The Sandman]

Hired a new employee! Posted an ad on ziprecruiter and the next day she came into the store with her resume. Lots of experience and a great personality, so I felt like I'd be an idiot not to hire her. I lucked out on this one!

The seller wants 20k up front, and will finance the rest. I think I can make that work if I structure it as a loan to the new business and place myself as the first creditor to get paid back if I have to liquidate.

Time to take with my lawyer.

 

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[Bounce Back]

Hired a new employee! Posted an ad on ziprecruiter and the next day she came into the store with her resume. Lots of experience and a great personality, so I felt like I'd be an idiot not to hire her. I lucked out on this one!

The seller wants 20k up front, and will finance the rest. I think I can make that work if I structure it as a loan to the new business and place myself as the first creditor to get paid back if I have to liquidate.

Time to take with my lawyer.

Not just a lawyer but if you have a cool CPA that lets you just email I'd do that - some nuances to the "loan" setup you are thinking about and tax/expense implications.

 

[The Sandman]

Worked with my lawyer to put the offer together, sent it over and it came back with some weird changes. Got a bad vibe and decided to call it off. The deal was already risky and questionable if I should take it on at all, so the seller being difficult pushed it over the line clearly into the "not worth it" category.

I'm somewhat disappointed but mostly feel relieved. Been stressing over what it'll take to turn that store around. Now I don't have to worry about it.

Doing month-end bookkeeping, and I noticed that YTD my store has already done as much business as that store did last year. I think I made the right call.

 

[Tiago]

Love seeing the progress here!

 

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