Let's talk about the business side

[B Shuler2006]

I would like to hear any of our resident experts on the subject of establishing and running a successful guitar shop! Maybe spell out the do's and don'ts. Building a clientele. Maybe good strategies for marketing your guitars. Business insurance. Just anything on the subject of starting and running a guitar shop!

(if this already a thread somewhere, my apologies!)

[B. Howard]

It's got to be a business all the way. Treat it like a hobby and that's what it will wind up being. One of the first things you should do is hire an accountant. A good accountant will easily help you save his fees and more every year. Insurance is another thing you need. Not just general liability for slip and falls but also to cover your inventory of instruments and those that are in for repair. Make sure you have all the proper licenses and other paperwork needed to do business in your area including a sales tax permit and it won't hurt to get a federal EID right away either.

As for marketing and building clientell.....Marketing handmade guitars is always a tough one, unless you are lucky don't count on selling your guitars to make the bulk of your income. You will need to supplement that with repairs, retail sales or both. It takes time to build a reputation so be prepared to run at a loss the first few years. And market saturation will come into play as well, how many established shops already operate in your area? How busy are they? is there demand for another shop? What do you plan to do different than the other guys to separate yourself from the herd? These are the type of important questions that need answers before you even start a biz. This is where a good solid business plan can be very helpful.

[B Shuler2006]

Thanks Brian! Excellent info! It's kind of a side thing for me right now, while I hone my craft so to speak! I don't have any draftsman or machinist education, I wish I did! I've worked mostly in a factory, just not the Martin factory! LOL So not too much business sense lurks in my noggin! LOL

[MaineGeezer]

I suspect you will find repair work, not guitar building, to be the main and most reliable source of income. There aren't too many people who can shell out $3000 or more for a custom guitar, especially when one can buy any number of excellent factory guitars for under $2000. A lot of people, however, need re-fret jobs, cracks repaired, neck resets, action jobs, etc.

The luthier I'm working with occasionally gets a commission to build a guitar, but mostly I think he builds a guitar in his spare time -- when he's not doing repair work -- and sells it through a local music store when he gets it done. The guitar sales supplement the repair income.

[B Shuler2006]

That's what I've ran into also! People don't understand the craftsmanship that goes into building a good guitar! They figure they can go buy a $500 guitar or cheaper, and have the same thing! That's just not the case! We're talking solid woods, correct bracing, intonation, and etc etc. Most of those cheaper guitars are laminated wood made to look like rosewood or whatever. Woes of the guitar builder I suppose! LOL

[watergunn]

I am finding out that the people I have built for have other guitars that need maintenance. Also, that they kind of run in packs. So, if one buys a guitar another may also.

I have picked up a lot of repair work just based off of someone knowing someone that bought a guitar from me.

For instance. From one sale I have gotten four guitars needing setups, 2 needing pick ups and one needing a neck reset, new fret board and new bridge!

I spend about half of my time repairing now.

Rick Gunn

[JLT]

It's got to be a business all the way. Treat it like a hobby and that's what it will wind up being.

X2 on everything Brian said. I would also recommend a book called "Small Time Operator" which is a great book on starting a small business. I used it when I started my own tentmaking business, and it served me well.

You also have to carefully assess the skills you're going to bring into the business. When I started mine, i had zero tent-making experience, but I had ten years of sailmaking and large-scale sewing under my belt, and I built a lot of prototypes before I had a design that could be efficiently reproduced. And for the first few years, the job was essentially part-time, and I had to work as a sailmaker for another company to make ends meet. It all worked out, and I'm glad I did it, but it certainly wasn't the experience I'd envisioned when I started out.

[tippie53]

I have been doing this full time for over 6 years. I started it as a hobby business. Brian's advice is solid based in fact. The biggest warning is getting advice from friends , it is only worth what you pay for it.
I have an accountant lawyer and insurance. Start and work on it and build it up. It doesn't happen overnight. I have now sold over 200 guitars but the business took me placed that I didn't plan on. Keep your mind open and aware of the opportunities around you. Start going to shows and hang out where guitar players are.
I can tell you that I spend on average 60 hr a week in the shop. My wife is in there with me. I love what I do and not many get to say that.