I came to this forum by searching for more information about starting a Video Rental Store. At first I was thinking of starting a franchise, but I learn that it is just to much.

Right now I figure a LLC is most likely the best one for me as of right now. Though I will not be opening up for some time now. As of this point I am in the business plan, and game plan area. For me I think a business plan is a must for me (at lease for me). It will help me in the short and long run. I know almost everything about a business plan, and a game plan. Though will be needing help with the last part of it.

I have done some real good research on the competition in my area, and the area around my area. I feel it is very important to find out what other companies are doing, and there ideas on how they started, ect. The town I live in has about 14,000 odd people (last taken in 2000 census.).

With my town there is smaller towns that are about 14 to 20 miles away from my town (5 towns in all). Then there is another 3 town that is 1 hour away from me. Within these 6 towns there is only 20 video stores. Though only 6 video stores in my town. Though out of the 6 only 4 of them if I remember right (have to look at my papers) are actually video rental stores.

So now as I work on my business plan, and Game plan to hope to start a Video Rental store I have come up with prices that will help me get started. I came up with $30,000 US Dollars that will give me enough money to last for a full year of rent/lease of a building, movies, and equipment, ect. That will also give me about $4000 odd dollars for back up money.

Now I have a problem my self. I am of the age of 20 years old. Though my birthday will be in July. My father owns his own business, my mother own her own business (they are not together). I have learn much between them both, and feel I can run my own business. I started working when I was of age 5. Since then I have known what it is like to work hard, and knowing stuff do not get done unless you do it your self.

I think that a video store at the right location will do good. I figure it will be a while before making my money back, but what business doesn't? So I come here, and to ask how hard will it to get a loan of $30,000 US dollar? At this point I do not have any money in my name really.

Plus I am wondering for people who run a video rental store... How many movies to start out with plus the size of the store (sq feet).

Horror movies I got a list of 132 movies
Action movies I got a list of 205 movies
Family and kid movie I got a list of 53 movies
Animation movies I got a list of 32 movies
Comedy movies I got a list of 120 movies
Drama movies I got a list of 102 movies

Now that is 644 movies (one of each). Now I just figure to make it more easy on my part, and to have extra money after buying the movies to set all the prices at $20.00 each. So 644 movies would cost $12,880.00 US dollars. Now in really it will not be that much. Half are about $9.00 to - $15.00 the other half I figure are about $19.99 US Dollars. Though you think 644 movies it to much to start off with?

Also what type of space should I be thinking about (sq feet wise). Any other comments or questions you would like to ask me?

What type of movies should I get more of?

Really I am not worried about Block****er, or Netflex or what ever it is called.

Wouldn't you be able to get better movie prices than that $9 and up range...especially $19.99 - which seems really high??

Just thinking that you should be able to lower your starting costs some.

Also, what about PS2/XBOX/Cube games and such? Will those be available for rental?

I think our local vid store is right about 2,000 sq ft. They seem to be doing fairly well - but also have a superior location and are a good 12-15 minutes away from competition - block****er and others...and the employees there tend to be dicks.

I would seriously get out there and talk to people about it. If you cannot talk to the owners of the other vid stores, at least talk to the employees. Those guys will be able to give you a decent example of how many rentals they have on the weekends as opposed to Tuesday, etc. etc.

**Did you account for major shopping stores like Wal-Mart, Kmart, Safeway, etc. - I've seen that many of those places also offer video rental.

Goodluck!

Sam Burnette

Hey man the mom and pop movie business really isn'y able to compete with the block****ers and hollywood videos of the world. Plus both companies are moving into the mail rental business becasue there current business model is going to be more or less phased out due to on demand movies and movies sent via highspeed internet access. There is already a company that has something like that. They have a 100 new and weekly updated movies you can DL at anytime.

__________________
Shaun

http://www.businessfaqs.net

Thank you for your replys. Sorry I did not get back to you sooner! Well at first I did the $19.99, but after searching and searching and searching I can go between $2.00 - $12.00 per movie (depending how old, ect). I do not think the Video Rental business will be going out of business though!

All right - that $2 - $12 range sounds a lot better.

While Shaun is definitely right about many of the smaller vid rental places going out of biz...it really depends on where your market and competition are. So just really study your market 100% before totally going into this.

Goodluck.

Sam Burnette

Well where I live there is 14,000 odd people (2000 census). I really do not think it will effect me or the area to much. I mean there is not even a million people in the whole state! I could see very small video businesses could go out of business (that do not get much right now as it is), but if they have a good data base of clients coming in all the time I do not see it to effect people that much .

**ADDED**

I would like to add I am not just going to jump right into this. I am doing every thing possible to learn everything about it. Up's and the downs, fast days slow days, ect, ect and the market within my town, and to make sure I do not mess up .

I think I am going to talk to some of the local people in my town. I will have like a sheet for them to fill out if they want to. What are some questions to ask?

so far I have...

How many times do you rent movies each month?

Would you rent more often if a video center were closer?

Do you have a video game system(s) in the home?

Do you prefer to rent or buy movies?

Do you prefer to rent or buy video games?


What else?

mvd that is a great idea! I will see if I can do that!

Yeah, good idea mvd!

Sam Burnette

To attract more people to your business in the first few weeks of opening, you could offer a free popcorn with every movie deal. As this could tempt people away from their regular video place, and make them visit yours. Everyone loves a freebie. Also some video stores like video ezy etc charge enormous late fees, so you could make a point by offering reasonable late fee rates and advertise that you are not out to rip people off. Being a video store im assuming you will sell stuff like popcorn, drinks and chips, since your starting off, Its probably good to not have a huge variety of stuff because It will cost more and If most customers are like me, they are rushed when they visit the store, and if they are presented with a huge choice, they cant decide and then wont buy any food at all. Locationwise, I would suggest being next to a pizza shop or any other take away place, as ppl will have to wait for their orders and would probably walk into your store to take up some of the time. Also pizza and videos is the perfect combination. Good luck with your business plans