As a re-seller and business owner, who doesn’t want to own 10 storefronts to their name? Who doesn’t want to tell people they employ 50 people and who doesn’t want to say they got all the exclusive and hypest sneakers that no one has? Often times our minds are skewed towards the thinking that bigger is better and no doubt to many…being or becoming a big business is better than being a small one. I don’t blame you because society shapes the way we think on this front. Bigger business gives people the perception that you are successful in life and who doesn’t want to be? But hear me out…bigger businesses means bigger problems and unlike success…problems are usually hidden from the public and all the people see is the glamorous side the business decides to show to its followers.
As a re-seller and business owner I have the luxury to share with you some of the first hand experience most business don’t talk about. I’m in my 6th year of business with Netmag and I still consider myself as a small business and I don’t intend to grow any bigger (atleast for the time being). Being a small business has its perks…all your problems are still manageable and you do not have to answer to no one. You can dictate your own growth without too much outside added pressure and you can scale once you think you are ready. You can communicate to your customers at a personal level, which builds a lot of relationships that will be critical to the success of your business in the future. What makes people shop with you when they can buy the same sneaker from another seller? Most of the time it boils down to the relationship you built with your customers.
Yes bigger is better on some aspects, but who says you can’t be successful being small? I choose to remain small because I want to limit my monthly overhead expenses. I don’t want to be forced to pay $10,000 rent for a store front a month because this gives me added pressure to sell. Rather, I chose to work online where my monthly hosting fee is $50 and my office space I rent is only $1,400. By keeping my fixed overhead cost low I’m able to sell when I want to and not having to whore myself out in selling to meet my cash flow needs. In my opinion, struggling to come up with $10k rent is much more stressful than trying to catch a W on a sneaker raffle on SNKRS. Just think about the numbers for a sec. Let’s say Travis AF1s are releasing on SNKRS today and I can flip for a quick profit at $300 a pair. I would need to be able to score 34 pairs of Travis’s just to break even at rent before you can pay yourself a profit. Scoring 1 pair is hard enough…forget about 34 pairs. Being small also gives me the flexibility to take a few days off if I wanted to and allows me to sell sneakers at a fair price instead of inflating my prices just to offset some of the rent i need to pay the landlord.
At the end of the day…everyone has their motive of why they enter the business or stay in the business, but the next time you think you need to be the next Goliath in the sneaker industry…try to sit back and think what you want in life. No one said you can’t be successful being small and by being small actually reduces the risk of your business especially if you’re in the hold and flip game. A lot of big shops rely on outside investors to pool money and often times the shop owner is under a lot of pressure from investors on a return of their money at which they are forced to do things they want to do as a business owner. So please…if you have to take away one thing from today’s blog…that will be don’t be discourage just because you can’t be a Flight Club, think about value add you can bring to your customers and build relationships. If you are doing a great job at that, I guarantee you will grow without you even thinking about it.