The more detail you can show here, the easier it will be to convince a lender or investor that your market has room for growth. You can learn from my experiences and mistakes, so that if you should decide to do this for yourself, you can get off to a strong start. 1. The next thing to discuss is the specific details of your market in the area where you want your store. Of the final cover price, I know the biggest chunk of it goes to the location selling the comic itself. Comic Books: Buy, Sell, Trade, Consign, Collect. Carl Forrest is the cofounder of DataSetGo. Net sales or revenue was $84.310 billion (highlighted in blue). Do the items get “stale?” How often will you restock on the items? If we don't, add it to your want list and we'll notify you when it's in stock.. Let me begin this column with an apology. Please note that these predictions are weighted toward having higher costs in comparison to revenues in case unexpected hidden costs arise. We remodeled our store and purchased a very large collection from a customer at just about the same time, so between the two, combined with good summer traffic in the store, I’ve neglected to complete my column on time. Here, you can explain the growth in comic book sales over the last few years and discuss how factors like the increasing number of comic book based movies continues to help spur growth in this market. “Do I need a business plan?” you might be wondering. Carl Forrest is the cofounder of DataSetGo. Will you offer a customer loyalty program? Selling Comic Books: How One Man Made More Than $8,000. Opening a comic book shop is a great way to share what you love with the world, and comics seem to be undergoing a resurgence. Diamond offers retailers a discount based on sales volume. Are you putting your store in a mall or other high-traffic retail shopping areas? Net income was $19.965 billion for the period (highlighted in green). Let me once again include my disclaimer: Neptune Comics is not quite three years old yet, so it is difficult to measure whether or not we have established ourselves to be successful for the long term. Are you referring back to the comic company itself? Now you have all kinds of information that can be used for a business plan. At his comic book store, Korey's Comics, Korey sells approximately $3,250 in comic books each month. He's run the shop out of the same location for more than 40 years and he wants to pass the mantle. All of these people collaborate together to make a comic book. His store will cost $12,500 to open and will come with a $8,000 total annual operational cost. It is also a tool for you as a future business owner, laying down the foundation of how you plan to start this little venture and how you intend to keep it going in the future. When I lived in Nevada a number of small stores opened and closed around the city where I grew up. Comic circulation is not as big these days, and so you'll often see comics filled with "house ads" (that is, adds in Marvel comics for other Marvel comics, which they make no money from but which will add business to their comics) but you still have ads for television shows and the latest block buster movies, as well as ad campaigns such as the anti-smoking and anti-drug ads and the milk ads. Ultimately, you want your final product to be error-free and accurate. Using a map to show where the competing stores are and where yours will be is a great idea here. A non profit health insurance actuary could answer many questions regarding the whole issue. The States that have health insurance programs have shown that government control has actually increased the costs of health care. Leave a Reply Cancel reply. It is a better estimate of profit as compared to gross profit margin as it considers both direct and indirect costs. If you are offering discounts, what are they? Once you have a final edition, I suggest that you put a date on the front cover, as well as a line that reads: “given to: _________,” and fill the blank line out every time you submit a plan to someone. Discuss percentages: 60% of the store merchandised with new comic books @ 50% profit margin, 10% back issue comic books @ 80% profit margin, 10% action figures @ 25% profit margin and 20% graphic novels @ 50% profit margin—for example. There’s really only one comic book wholesaler from whom you’ll be ordering your inventory (Diamond), and they can be a bit expensive, furthor cutting into your profit margin. Once I liquidated my massive inventory of 3,200 comic books, I had done over $17,000 in sales with a final profit of $8,986 to fund my startup — and a great story. This is also a good place to include your potential store floor plan, showing what you want to put where and how much of the store the items take up. You should be prepared to provide a complete financial detail of all of your start up costs, including: build-out and repairs, fixtures, merchandise, any rent you pay before you open, initial marketing, etc. This helps you keep track of who has a copy and lets the person you gave it to know you’re keeping track so the information doesn’t get shared. Understanding profit is simple; it’s the pure income generated after all expenses. Example: A hat costs $10 from the supplier. The Comic Book Publisher Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. I recommend that you first give a brief introduction of yourself and your business, as well as a short discussion about what the “direct market” is. The program gave us the format to follow, and we could just put our information into it. I might not have all the answers, but I will do my best to give you ways to find out the answers I don’t have. Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. 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If his store makes $12,000 in profit during the first year, and profits increase by 6% each year from then, how long will it take for Korey to see an overall profit in his business (where total profits exceed total How much money will you spend every week/month/year on these items? He enjoys solving problems and salteñas. I am sorry this is a few weeks late. His preference is to sell the business but if there are no buyers he will sell the comics and shut things down. Explain what you plan to sell and why, and the potential profit of these items. One advantage comic book stores have is the frequency in which we receive new merchandise and the commitment of most fans to come in and buy it every week. Here you can discuss not only merchandise, but décor and employees. What is the retail vacancy rate within a three-mile radius of your future store? The previous section and this next one are the places where you are really selling your store and your ideas to readers of the plan. Your profit margin is arguably the most important metric of success for your store. 0 1429 Like 0 people like this Pre-Tax Profit % 0 2749 Like 0 people like this Gross Margin % Inventory Productivity. I recommend you take a business class to learn more about what a business plan is and how to properly write one, but in the meantime, I’ll give you some information. If you have a mass transit stop near your store, talk about that and the benefits of it. If they overestimate, that's money down the drain. You have to let people know that you built it and why they should come. Will you offer any kind of subscription or holding services? Like other retailers on the high street, comic shops must factor in rents, business rates, staff wages, insurance – but the profit margins on comics are … Television is merely educational if you're seeing a documentary or something similar. If you need to borrow money to start your business, you will need to show this business plan to banks in order to help convince them that they should help you out. Also, discuss the longevity of the products including how well they sell the first few weeks out and how long into the future they will be displayed in your store. Bring up your competitors and the types of marketing they do, if any. Everyone at the various stages makes a profit. Depending on your publisher reps and connections, you may be able to feature author signings, artist Q&A sessions, comic book writing lessons, small fairs or swap events and even games nights. A business plan is a written explanation of the business. But as a comic book dealer, Korey only pays $1,285 for these comic books. When substantial back issue comics and collectibles sales are blended together with lower margin PREVIEWS product, it can be relatively easy to reach the required 50% margin figure, and sometimes go quite a bit higher. Posted: (5 days ago) Once I liquidated my massive inventory of 3,200 comic books, I had done over $17,000 in sales with a final profit of $8,986 to fund my startup — and a great story. Riverby Books D.C., a used store on Capitol Hill, closed last year after owner Steve Cymrot was hit by a truck and killed. Include here ALL types of marketing – if you plan to hire a neighbor kid to hand out flyers or walk up and down the sidewalk dressed like Superman, include that and all costs involved with it. Your Turn: Would you buy and sell comic books to earn money? Still have questions? If you are your only employee at first, do the same thing but just for yourself, and then discuss when you might hire employees down the road. Acquiring used books for free and re-selling is better for margins but the time investment is significant unless donors come to the store directly. 2. But that 45% profit margin is why they can afford to give regular customers discounts of up to 20%, depending. You have already looked at competing stores, and should know the proximity of them to you, what they carry, what their hours are, etc. The comic book market is foundering a bit at the moment (as opposed to, say, 15 years ago), so it’s difficult for even the successful stores to turn a huge profit. NAICS 451211: This U.S. industry comprises establishments primarily engaged in retailing new books. It’s kind of amazing the DM has lasted this long, given all the stupid creative and business decisions made by the Big 2 over the years. These metrics show how the average company in the Book Stores industry is performing. Get your answers by asking now. Operating Profit Margin = Operating Profit / Revenue x 100. When the books sells to a customer the store then makes a $4 profit ($10 – $6 = $4). This will be the most work, and you should still have a business professional look it over, however it is the least expensive method. What is the crime rate in the area? We offer Modern, Bronze Age, Silver Age, and Golden Age comics. If the store discounts the book during a 20% off promotion they have to sell two copies to make that same $4 profit. Becoming a Comic-Book Mogul. Who will get them? Join Yahoo Answers and get 100 points today. Marketing is the next thing to discuss. What better place to look but they haven't looked there. Don’t let that happen to you– store your comic books properly! Finally, you could do the whole thing from scratch, on your own. Two weeks later that spot would become Neptune Comics, our very own comic book store. The margin on new books is often less than 5 percent. 3. How much can you charge customers? The first in my family to graduate from college, I earned a BA from St. Norbert College. In 2018, the gross margin is 62%, the sum of $50,907 divided by $82,108. Why? You should show your estimated total expense per employee and how many employees you plan to have, as well as discussing how this wage compares to the wage paid to other people working in similar businesses. How much parking will your customers have access to? So then you're left with the 55% or so. If so, what is it and who will get it? The retail store will list the hat at $15. Net Profit Margin = Net Income / Revenue x 100 . Discuss percentages: 60% of the store merchandised with new comic books @ 50% profit margin, 10% back issue comic books @ 80% profit margin, 10% action figures @ 25% profit margin and 20% graphic novels @ 50% profit margin—for example. In a future column, I will give some advice and warnings on acquiring the money to start your new comic book store. This section helps paint a complete demographic picture of your store location, so using a picture is a smart idea. “How do I write a business plan?” you say. Trump becomes an interloper in Palm Beach, Biden's 'Amazon tax' could make things complicated, Ricci obtains restraining order against husband, Biden's granddaughters turn heads at inauguration, Hoops team cancels season after coach accused of abuse, New Time cover depicts chaos Biden must address, GOP Rep: Give stimulus check to those who get vaccine, Mickelson denies lobbying Trump on gambler's behalf, New dad Josh Hartnett: Why I dropped off the radar, Official names U.S.'s most significant strategic threat, Biden needs to account for lost jobs at Keystone XL. They draw the comic in pencil which then gets inked and coloured later on. Be sure your numbers are realistic—don’t just make them up, and cite your references in the business plan. While I watch Television set I usually feel like I will be doing something more effective, Reading a good e book offers a richer experience and can leave you with memories that will last years. Comic Book Publisher Business Plan, Marketing Plan, How To Guide, and Funding Directory. This is your chance to find out from a young store how to get started. It also answers critical questions about your business, such as whether products are priced correctly or if … The owner of our local comic book shop is ready to retire. As with any financial analysis, do your research to make sure your costs are current, and be SURE your math is correct. Again, the more specific and detailed you can be the better, and pie charts and/or bar graphs are always a good idea. The difference between buying comic books to sell for a profit and buying comic books to enjoy as a collectible is the part when you have to sell. According to their own published data, the profit margins of the big corporate publishers are increasing. What kind of signage will you have? Inker – The inker ink… Korey's monthly operating expenses, including labor, are $875. From Passion to Profit: 4 Tips For Opening a Comic Book Shop. This Week's Features Also explain what the demographics of your typical comic book customer are, and show what portion of the population of your area could potentially become a customer of yours. Is the population within a three-mile radius growing or decreasing? But, if it’s any consolation, this is an extra-long installment. Marvel offers the only real glimpse at the economics of big-time comics publishing, because it and its main rival DC Comics together roughly split close to 80% of the market in new comic book … Another comic shop marketing angle is to host in-store events that will attract visitors. And check back in a couple of weeks to learn more about starting your own comic book store. Once again, use real information that is as current as you can get, and cite the sources for the data. 7.3 Projected Profit and Loss The following table explains our itemized costs and determines gross and net margin. Now, it’s time for the grand finale of your business plan: a summary of all of these numbers. Making a profit in the bookstore business involves knowing how to price the books that you sell, testing different book placement locations and carrying additional items that would appeal to your target market. This column’s information will largely come from what we did to open Neptune Comics, as well as a few things that we did not do that we later wished we had. Before that, Marvel has to pay the writers and the artists, as well as the inker, the colorist, the letterer, and people on their editorial staff (who are probably on salary, and not paid "by the book" like the writer and artist). Use spreadsheets, and refer back to charts and numbers used earlier in the plan. ? Mel Thompson, who I’ve mentioned in previous columns, can also be hired to write a business plan for you. 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