I want to start of a business to sell used books the, the fact that motivated me to commence such a business was that I wanted the book lovers to get their desirable books at reasonable prices. Those who cherish reading and are fond of always having a book in their hand could fulfill their wishes without spending profusely. My first step would be to rent a store where the walk in traffic is steady and abundant to attract customers.
For this purpose I will take help from a broker to find me the location on lease in the budget between $1000 and $1200 per month with the area of the store being in the range of 1000 and 1500 square yards. The insurance cost, shelving, utility costs, inventory, rent, license, accounts and advertising and miscellaneous costs will amount to around $10000 to $12000.
Our plan will be to renovate that store into a hospitable and warm place, for that we will get our book store painted in a dark and homely color like Dark Chocolate. The lighting of the store should be soft so that it assists in creating that cozy feeling. The shelves should be designed and placed in such a manner that they allow browsers to look through the books. Also the shelves should have signs of the subject of the book they comprise of. Moreover the shelves in the face of the store should be at such height that they do not hinder the view of the people from outside to glance inside.
The signs used in the stores should be engraved on wood as using plastic signs will not create the environment we would like to create. Also we intend to place a revolving book shelf on the entrance and put bright and eye-catching magazines on it in order to attract customers. Initially we will focus on the marketing tactics of word of mouth as this will save our costs and use pamphlets as they are an inexpensive mode of promotion. Initially the goal of the store should be to recover the investments in a period of 6 months.
The broker and I have seen a shop in the nearby shopping mall which I think is the appropriate location for the mall to be situated. The mall has only one book store that sell only brand new books. The shop has fine interior décor however it sells the books by keeping wide profit margins. We are going to obtain competitive advantage by providing a wide variety of books to the customers at affordable prices and make certain that the books are as good as new so the customers will not fell as if they are purchasing old books. Additionally our comfy environment and incomparable customer service will enable us to be distinguished from the competitor. We will take recommendations on the books to be kept in the bookstore by the customers and try to provide them with those books they inquire about. We intend to purchase books from garage sales, neighbors, friends, charity book stores and the internet, since we will be paying less in acquiring these books, this way low and unbeatable prices is will surely help us in gaining competitive advantage.
The intermediate goal I have in mind for the business is the store having its own website, where we can do business online this way we can earn extra income and expand our business. The aim of the website will be to increase our revenue by at least 12 %.After 6 months of the start of our business we will make this idea a reality.
As our store gains recognition, we have in mind to request authors to visit our store for signing the books of readers, as that will enhance the publicity of our store. Also we intend to rent another shop adjacent to our store and enlarge the space for our bookstore. This will enable us to display more range of books and arrange for comfortable sofas for the readers to be seated and contentedly review the books before purchasing them.
The long term aim that I have for the bookstore, which will be 12 months after the running of the business to start of another store on a wide scale in another mall for that we will do in dept research and find a suitable mall to locate our business in. Moreover 6 months after the establishment of the second bookstore we will continuously strive to further advance our business by opening at least 2 more stores in the next 6 months to follow.
To pay of the costs for the expansion we will utilize the money the existing business is generating, however if we run short of finance I will take loans from Bank One or other financial institutions. To market such a wide scale business we will utilize internet and billboards as a source to advertise our business. However we will not let loose the emphasis on word of mouth marketing. The marketing expenditure will increase with the progress and growth of the business but the increase in revenue it will generate for the store will be worth the costs. We will adjust our marketing expenses depending on how much sales revenue is increasing because of promotion and advertising.