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Starting a New Hobby Shop
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Kalmbach once put out a loose leaf notebook of articles from trade magazines on how to run a hobby shop. It may still be available if you call their 800 number. I bought one for grins, and it killed any desire I may have had to open one. <br /> <br />Without giving out actual numbers, it seemed (and this goes back about 10 years) I inferred the average hobby shop averaged about $700 a day in revenue, maybe $1000 on weekends, and maybe $2000 for a few days around Christmas. If a shop is open 300 days a year, they may gross $300,000. If they buy at 50-60% of retail, their product cost is at least $150,000, leaving $150,000 for rent, heat, lights, phones, etc. plus any employee cost and of course, owner's salary and profit. <br /> <br />That's about $13,000 a month. I suspect monthly overhead would run at least $5000 per month, and employes another $1000, at least. I don't know if their is enough money left to justify investing any money in that as a business but I could be wrong.
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