We’ve been quiet because we’ve been busy. After giving up all hope of ever being able to find a suitable and affordable space for our very own bookstore, a space went on the market in July. This month we purchased the property and now hold the keys.

For years, we’ve told people about the plethora of items that need to be addressed during the start-up phase and how this all takes time. Countless times I’ve said, “Make sure you take your vitamins and wear your roller skates!” Now, we’re heeding this advice.

Construction drawings for the renovations went to City Hall for review this week. When will we be open? That's a good question.

Construction drawings for the renovations went to City Hall for review this week. When will we be open? That’s a good question.

We begin our blog entries to document our process so others can have a sense of how even a small-scale bookstore start-up requires so many decisions and requires a whole team of advisers to avoid the pitfalls. Each decision usually relates to two factors: time and money.

Our Story & Song Bookstore Bistro is a hybrid concept that includes retail and food and beverage service and The Second Story for Art & Creativity, a second level with books, art on consignment, hands-on creative areas, and a gathering space for lectures, concerts and jam sessions, discussions, a reader’s theatre, and story time. It’s a reflection of the interests of our community and ours too.

You’d think the start-up phase would be fairly straight-forward: Buy a building, build it out for your needs. Sounds simple. It isn’t. Although we met with our City officials in a pre-construction session, the questions only multiplied. Did the space need a sprinkler system added? How did the “change in use” translate into new building requirements? When was the building constructed and what code changes have happened in the meantime? Is the space “grandfathered” in or will you need to comply with all of the updated requirements?

Keep in mind before you lease or purchase a building, what happened in the building before matters. So does any updates to the code and all of the changes you’ll need to make to accommodate your business. It’s important not to make assumptions, but to check in with your city or municipality to have the space assessed.

We know first-hand some factors that can make the space a “no-go”. We once investigated a space in our Historic District that had been occupied by the same tenant for the last thirtysomething years. It turns out the space would require over $100,000 in improvements to meet current codes. Our bookstore build-out would be in addition to these upgrades. The landlord was unwilling to make the necessary investment in her own building.

Today our construction drawings we submitted to the City for review. We’re told the review and feedback (hopefully approval) can take two to six weeks. Our contractors are in place, the signs are up in the window, and the community is excited.

When will we be open? All we can tell our eager friends and neighbors is the truth … so much right now is outside our control. We’’ll open a pop-up shop during the holidays if we don’t have our certificate of occupancy.

In the meantime, there’s much to do to acquire the restaurant and liquor licenses, and develop the opening inventories which will require weeks of concentrated effort.

I take a deep breath and visualize the store fully stocked with beautiful books, cards, toys, gifts, art and our community.

I think we’re at a tipping point in developing alternatives for affordable retail space …

Mark and I recently visited Nashville, our former home town, and loved traveling East Nashville, a community blossoming with home renovations and new cafes and retail stores.

While Nashville is known as a creative community … home of the Southern Festival of Books, Ann Patchett’s Parnassus Books, plus all of those creative songwriters and composers who come from all over the world to contribute to the world of entertainment.

IMG_0131What we stumbled across was The Idea Hatchery, a cluster of small spaces near a major intersection. The flyer we picked up began with the headline:

“Start a Small Business in East Nashville”

Then continued, “The Idea Hatchery is”

* A community of small independent businesses hosted in 8 individual buildings.

  • An arrangement of buildings that have footprints of 168 sf, 256 sf, and 320 sf.
  • An opportunity to experiment and to share ideas with other small business owners.

The Idea Hatchery offers:

  • 1 year leases with no limits on renewal.
  • Reasonable rents with pro-rated utilities…”

Check out the gallery of photos and just imagine all of the cool things people discover when they visit.

New models are surfacing. They focus on collaboration, synergy, and creative energy. It’s an exciting era for indie businesses.

We celebrate each new opening of an independent bookstore. Shelf-Awareness, ABA’s Bookselling This Week, and Publishers Weekly all do a good job of announcing new store openings. It’s interesting to learn how a dream has become reality, but sometimes a single photo can tell us that we’ll soon see an announcement of the store closing.

One of the common pitfalls in opening a new bookstore is understanding the financial dynamics of a bookstore to get the business plan assumptions right. The margins in the book business are tight, and metrics, like inventory turns are essential to clarifying what sales need to be in order for the business to grow beyond break-even.

While no one wants to lose money, it’s surprising when a new bookseller will say, “I can’t afford the time” to come to a workshop to learn the business that will require thousands and thousands of dollars to launch.

Our response is, “can you afford NOT to?”

Lean inventory levels will need sluggish sales and struggle to keep the bookstore afloat.

Lean inventory levels will need sluggish sales and struggle to keep the bookstore afloat.

The photo we’re featuring has been modified to post in this blog, but it’s one of the photos that indicate the bookseller has opened on “a wing and a prayer”, driven by a dream, but uninformed and positioned for early failure.

All retail businesses are based on the buying and selling of goods. Inventory turns is a key metric that measures the productivity of our inventory. You take your inventory at its retail value and multiply it three to five times to forecast your annual sales.

The key question then becomes, “Is this enough?”

We recommend that a full and interesting selection of books and non-book items should run about $125 per square foot at its retail value, $75 per square foot at cost. The inventory in this photo appears to be at about $15 per square foot at cost.

Launching a dream for a bookstore is a wonderful contribution to community, but only if the story of this new business continues. It’s painful for everyone when a dream crashes. Those of us in the book industry want to see more success stories. The margins are tighter in the book industry than other forms of retail.  It pays to learn the complexities of the book industry and the basics of retail management before you dive right in.

I am fascinated with the Every Door Direct tool developed by the U.S. Postal Service. Designed for use by small businesses for planning door-to-door marketing, it turns out this is quite a valuable resource for prospective business owners.

very Door Direct Mail allows you to analyze your market by postal carrier route

Analyze your market by postal carrier route for detailed information on neighborhoods within a community

Here’s how it works … Go to the home page at https://EDDM.usps.com and enter a zip code you want to explore. Using the menu options below (Route & Residential), refine your search. Use your mouse to hover over different carrier routes and you’ll see demographic data appear on the screen describing who lives there.

This resource is perfect for:
Obtaining much more detailed demographics than by zip code or market analysis that takes a random 1, 3, and 5 mile radius around a particular address

Identifying neighborhoods and even streets that would be best for your new business

Collecting data for your business

Gathering marketing information to use later as you target your promotions

And, it’s free and available to you right now.

If you’re a visual person like me, it’s great to see the map, clip and save sections, and use the tables to choose the routes and tabulate population totals.

Market research has never been this fast, easy, or valuable.

Today’s op-ed piece by New York Times columnist Nicholas Kristof, “Don’t Dismiss the Humanities” is a reminder that we need diversity in our lives … from decisions we make in government, business and non-profit organizations to our own lives and relationships. Especially in today’s world where conflicts are escalating, disease is spreading, and there’s rising concern about our ability to create peace, live safely, and use our resources wisely, we need literature and philosophy, art and poetry for perspective – and hope.

Books in a fieldVisit a bookstore and you’ll find artists and writers, readers and philosophers. In the back room, we’re busy with the science of electronically sending purchase orders, analyzing section reports, and assessing our profitability, but there are so many aspects of the business that are purely from the heart. Discovering an amazing new writer during a discussion with a publishers sales rep, picking up and flipping through the pages of a beautiful new book, writing a review for the store’s newsletter or a shelf-talker for a favorite title, and of course, suggesting books to customers are constant activities that happen every day.

If you’ve been thinking of leaving your career to open a bookstore and want this kind of balance in what you do for a living, keep exploring a career in bookselling. For those of us who enjoy the arts, but need to earn an income, have business skills yet want each day to be filled with interesting, meaningful conversations, owning a bookstore provides all of this. Success in life and work has many definitions. I agree with Nicholas Kristof, the humanities are to be valued.

What a fascinating time … and how refreshing it is to see ‘Local’ become fashionable. From Sarasota, FL to Rapid City, SD and Nantucket, MA to Bainbridge Island, WA, ‘Shop Local’ initiatives are moving full steam ahead, where residents want fewer national chains and more local flavor.

Was this predictable? Maybe in part. The last three decades brought us a deluge of stores and shopping centers that began to look the same. Perfectly coiffed with the same merchandise, their appeal didn’t have staying power. When the economy softened, corporate decisions, meant to preserve profits and shareholder investments, resulted in dark storefronts all across the country.

Bookstores sponsor events

Bookstores draw the right clientele

And who survived? The tenacious, spirited indie retailers — yes, the “Mom & Pop” stores. Not only have they weathered economic ups and downs (most recently created by the temporary deep discounting offered by the chains when they first moved to town), owners of independent businesses held on because their entire livelihood was on the line. Their commitment to community reached far beyond hitting profit targets – they were in it for the long haul.

Now that hundreds of communities are without bookstores — some driven out by the proliferation of Wall Street financed chains, and now Borders stores closing as a result of the ongoing mismanagement of the revolving executives who ran the company — there are openings for new anchors on Main Street and in retail developments from coast to coast. An independent bookstore is a wise choice to fill an opening, especially if the objective is to draw an upscale demographic.

While some would have us believe that e-books are rendering bookstores obsolete, brick-and-mortar bookstores are still relevant and here’s why. Printed books account for 85% of book sales and research now shows that those who read e-books still value — and buy — printed books. Bookstores are considered gathering places and symbolize an educated community that values learning as a lifelong endeavor. Also, people who read want to know what to read next. Independent booksellers have long been recognized for their genuine passion for books, honesty in making recommendations, and their ability to help publishers launch new writers. In most redevelopment polls, people say they most want a bookstore in their community — and will support it.

To developers and landlords, we suggest you look beyond the media’s obsession with technology to see the opportunities in your own backyard. An indie bookstore will draw the right demographic, hold a long-term commitment to the area, and will contribute to the well-being of the community.

As consumers become more and more mindful that a ‘Local’ focus helps their community, the momentum is continuing to build. To ensure that developments gain (rather than lose) appeal, you need look no further than an indie bookstore. It may require some investment and accommodation on the developer or landlord’s part to get a bookstore open for business, but its presence will generate ongoing tangible results.