This is the fifth in my series of columns on the topic of how to open a
comics shop. I apologize to those of you who (wisely) have no interest in
going into business for yourselves, and would rather I wrote about more
general issues affecting the world of comics. I'll get back to writing
those types of columns fairly soon, but my experience has been that the
majority of comics fans dream of either becoming a comics creator, or
owning a comics store. I know very little of the ins and outs of joining
the creative community, but I do have 30 years of experience in owning
comics shops, so these columns are my attempt to try and help those who
would open their own store avoid some of the pitfalls that I've seen
destroy the lives of some very nice, but naive, newcomers to the comics
retailing biz.
After several weeks of covering the personal attributes you need to survive
in the world of comics retailing, I'm now ready to get into the harsh
financial realities. My first suggestion would be that you calculate your
personal living expenses, and make sure that you either have enough set
aside to live on for a minimum of one year, or that you keep some sort of
external cash flow going, such as a part time job. Expecting your
newly-opened store to generate enough cash flow to not only cover its
initial growth costs, but also enough to pay you a salary in the first
year, is unrealistic. When I opened the very first Mile High Comics
location (1974) I was attending the University of Colorado on a full
time basis. Because my stepfather had retired at that point, I received
a small monthly check ($260) from the government for my schooling. I lived
on my school money for the first two years that Mile High Comics was in
business.
My next suggestion would be for you to build some sweat equity into your
store long before you open the doors. What I mean by this is that you
should start selling back issue comics and collectibles at flea markets,
antique sales, and online for at least a year before you try and open your
first store. Not only will this advance training serve you well in terms of
knowledge and experience, but it will also give you an opportunity to
gradually increase your inventory, without having to pump in a lot of
initial cash. I sold at the Colorado Springs Indoor Antiques Market on
weekends for four years before I opened my first store. I also attended
several national comics conventions, and ran mail order ads in the old
ROCKET'S BLAST COMIC COLLECTOR fanzine. These were all methods for building
my working capital in advance of opening.
When I finally opened the first Mile High Comics location in Boulder,
Colorado, I had managed to save only $800 in cash, but I had gradually
accumulated the equivilent of 40 long boxes of high grade Silver Age. The
cash was gone within the first 30 days, but the Silver Age was a store of
value that generated revenue for me for the next couple of years. More
important than the working capital that came from my pre-store experiences
was the knowledge I gained by selling into all sorts of markets. I learned
there was a huge difference between selling at a flea market in Colorado, a
comics convention in Texas; and even more differences when selling to a
national audience of collectors through the mail. I also learned a great
deal about the history of comics publishing, as dealing with so many types
of comics fans required me to become knowledgeable about all kinds of
comics, ranging from Platinum Age, all the way to present. This knowledge
came in very handy when I opened the first store.
Before I go on, I want to emphasize that having inventory and knowledge does
not excuse you from needing working capital to open a store. While I managed
to do it in 1974 with only $800, I was very young, and very stubborn. I
simply wouldn't admit that it couldn't be done, so I plunged into business
with far less working capital than I really needed. The fact that I made it
is more a testimony to the willingness of others to help me than any
particular positive attributes that I brought to the table. The one thing
that period taught me more than any other, however, was how important it
was to have supporters in the background. That's part of the reason why I
stressed honesty, fairness, and communication in my past couple of columns.
I would never have made it had not the people who helped me in 1974-1976 not
believed in me. I was only 19 years old, and they had no evidence besides my
ability to communicate my integrity that they should risk extending credit
to Mile High Comics. Always remember that if you're planning to be in
business for a long time, that your actions of today will reflect upon
you for the rest of your life. People who are good to their word are rare
these days, and if you can exemplify that type of person, I think you will
find that many people go out of their way to help you. Working capital is,
of course, a necessity, but so is the support of your customers, your peers,
your community, and your suppliers. You will only achieve that support if
you commit yourself, right from the beginning, to always follow the path of
righteousness.
Next week, I'll provide you a few cost estimates of opening a single comics
shop..
Please send your e-mails to
chuck@milehighcomics.com, and
your letters to:
Mile High Comics, Inc.
Attn: Chuck Rozanski
2151 W. 56th Ave.
Denver, CO 80221
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