Top 5 Challenges of Rookie Store Owners

2. Top 5 Challenges of Rookie Store Owners Amy Ball Braswell and Gill Braswell Capo’s Music Store Abingdon, VA

3. Being good in business is the most fascinating kind of art. Making money is art and working is art and good business is the best art. - Andy Warhol

4. General Overview of Capo’s Music Store • We are an all acoustic music store in a small town in Southwest Virginia specializing in Bluegrass and Old-Time Music. We have a staff of 6, 4 full-time including the owners and 2 part time and 9 instructors. • Capo’s is located in a town of 8,000 people with another full-line music store also located in the same town. However, we sell to customers across the U.S. and internationally. • Capo’s opened in December, 2009 and has seen substantial growth over the last 4 years. • Capo’s was pleased to be named a Top 100 Dealer in 2013 by NAMM.

5. Challenge #1: Identity • No enterprise can exist for itself alone. It ministers to some great need, it performs some great service, not for itself, but for others.. or failing therein, it ceases to be profitable and ceases to exist. – Calvin Coolidge

6. Challenge #1: Identity • Finding our niche! • Full Line or Niche? • How niche do you wanna get? • Are there riches in niches?

7. Why it was important to know our niche: • Knowing your niche helps you develop your identity. • Plan your strategic plan and marketing around your identity. All this is framed within our store identity. • Select products and services you offer that only fit you niche. • Identified your ideal customers, not individual people, but types and look at ways to market to them. • Design your store inside and out around your identity.

8. Challenge #2: Money • There is never enough money! • Watching where you invest the money of your business and watching your cash flow are two of the most important and difficult lessons to learn. • Your biggest investment is usually inventory and it is the one area that you spend money that can make or break your business. • Work with an open to buy plan! • Reports don’t lie. • Pay bills in order of importance to the success and survival of your business. • Don’t be swayed by specials, discounts and free freight for large orders if you can’t move the product. These are mistakes we have lived and learned through. • Your rep is not your friend, but a sales partner. And never forget, they are salesmen too!

9. Challenge #2: Money • If you are not a numbers person, hire someone who is and have a good POS and accounting system. They may be expensive on the front end but they pay for themselves in the long run. • Beware of perceived success! It is easy to think things are going well, but then you don’t have money for new orders or you start falling behind with vendors. • Just because you have a little cash in the bank today doesn’t mean you are successful, and just because you have fallen behind doesn’t make you a failure. Preserve, Plan and Use your reports to see where you are and where you are going! • Manage your advertising and other overhead dollars as closely as you do your inventory. Don’t throw money away on lots of things that won’t put dollars back in the bank. It is so easy to get caught up in being nice but being too nice can make you really broke.

10. Challenge #3: Personnel • Hire character. Train skill. – Peter Schutz • People are definitely a company’s greatest asset. It doesn’t make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps. – Mary Kay Ash

11. Challenge #3: Personnel • Don’t hire for musical talent alone. • If hiring a musician, make sure their talents and interests align with your store identity. • Many musicians dream of working in a music store, but most don’t know what actual work is involved. Be careful in the interviewing process and very clear with expectations. • Hire for character. • Beware of hiring friends and family. They are very hard to fire when the time comes and it may come sooner than you think. • Remember, you as the owner are the most valuable employee. Take care of yourself!

12. Challenge # 4: Knowledge • To succeed in business, to reach the top, an individual must know all it is possible to know about that business. – J. Paul Getty

13. Challenge # 4: Knowledge • None of us come into this as experts in all areas of the business. • Identify your weaknesses and find ways to educate yourself. • Attend NAMM U sessions like this, retail boot camps, chamber classes and more. • No matter how much you think you might know about something, there might be something you have never thought of or considered trying that could make a big impact. • Music store owners, especially those I have met through NAMM or IMSO and other organizations, can be on of your best resources for information and it amazes me how giving this industry is.

14. Challenge # 4: Knowledge • Read industry magazines, make time for webinars and use the NAMM U link on the website for refreshers. You never know where you might get the information than can take your store to that next level. • Listen to your customers. If they want a product, research it or ask them why they like it. Musicians love to talk gear. Let them talk. You might find something cool that can bring in big $$$. • Study businesses outside our industry. I read Inc. and Fast Company every month and am part of retail Facebook or online groups that include non music stores. They can also be a great source for ideas.

15. Challenge # 5: Getting the word out • Marketing and Public Relations can be expensive and many new stores will put that last on the list of where to spend money- DON’T. • Don’t just strive to get customers, get the ones you want. • If you have no clue about social media or marketing, hire someone who does. This position should receive the same amount of attention as your sales force. • Develop a Marketing and Promotions plan for the year and review it each quarter to see if it needs to be adjusted. • Look at best practices and what other stores are doing but tailor those things to fit your business, don’t just carbon copy other store’s promotions and sales. • Market to your ideal customer and spend your dollars there. • Learn to say no to advertisers that don’t get your store. • If a marketing outlet isn’t working, cut your losses and move on to something else. There is very little loyalty in the marketing world, don’t be afraid to let go.

16. Top Takeaways: • 1) Educate yourself. Attend NAMM Idea Center Sessions. Use NAMM U online and all other free educational opportunities from your local Chamber to the Retail Boot Camps. • 2) Invest in good people, not just great players. Non-musicians can be valuable assets to a music store too. • 3) Know your niche or what makes your store unique and use that in all areas of your business: marketing, merchandising, sales, personnel decisions, location, and inventory. • 4) Reports can be your best friend. Don't just think you know what is going on, work with your numbers. • 5) Manage your marketing as closely as you manage your sales. Know your target audience and how to go after them thus managing your marketing dollars more effectively.

17. Parting Thoughts • We all get into this because we have a passion for music but the day to day running of a music store can dampen that passion. • Take care of yourself. Burnout happens. Have a staff in place that will allow you to step away from the store and recharge.

18. Parting Thoughts • Let’s be honest. There’s not a business anywhere that is without problems. Business is complicated and imperfect. Every business everywhere is staffed with imperfect human beings and exists by providing a product or service to other imperfect human beings. • – Bob Parsons • Contact Information: • Amy Ball Braswell and Gill Braswell • Capo’s Music Store • caposmusicstore@gmail.com • www.caposmusicstore.com • 276-525-1880