by Leah and Elina Furman

Published December 1, 1997

Read more Small Business Brainstorms

You know the drill; it happens every time you enter one of those heavy-duty video stores. You'll wander the aisles in vain search of that new Australian indie. Then, when you're just about ready to give up, you'll see a uniform-clad salesclerk, anxiously waiting to give you killer customer service. You'll ask about your precious film x, but alas! your only reply will be a quizzical look, a chipper database search, and a distressingly upbeat, "Sorry sir/ma'am, that film is not in our records."

But you won't be dismissed. Oh no! It takes more than that to dissuade you from your goal. To make a long story short, you get arrested for disturbing the peace, and have to cajole a reluctant parent into bailing you out. When you finally come home, you find that the three hours at the video store/holding cell would have been far better spent watching the Superstation's presentation of Tuff Turf. You cry and vow never to step foot in that store again. But, like Sisyphus and his rock, you're back at the gates of video hell come Monday. It's a vicious cycle.

This fate need not befall all you film buffs on the fringes of Hollywood's bell-shaped curve. If you're the type who gets on-line and heads straight for a "Movie Madness" chat room to extol the virtues of Harvey Korman and Ed Wood, then being a video store proprietor may just be in your stars. Whether you're stocking obscure B-movies, cult classics, foreign films, independent works, or all of the above, you're cornering a niche overlooked by Blockbuster — and in the dog eat dog world of video rental, that's no small consideration.

Raking in the Dough

Pick the right location, and there's no telling how far your earnings can go. Your pre-tax net will probably hover someplace around $50K, but who knows? A little cagey marketing, and you may be looking at a figure twice that size.

So what if the movies you stock were made on a shoestring? This certainly doesn't go double for your business. You'll have to come up with an airtight business plan, and invest a minimum of $70,000 to get into this venture if you don't want it to end up on the cutting room floor.

Trade Associations:

Keeping up with industry standards is much easier if you're in the loop. It doesn't take much to become an insider — check out these sources for a head start.

• American Video Association:
  Chandler, Arizona — (800) 421-2300
• Video Software Dealers Association: Marlton, New Jersey — (800) 257-5259

• Twice:
  Twice Publishing Corp., New York, New York — (212) 477-2200
• Video Extra: Home Viewer Publications, Inc., Philadelphia, Pennsylvania — (215) 629-1588
• Video Store: Santa Ana, California — (714) 250-8060

You'll find demographics aplenty in the trade periodicals listed above. Match those numbers to the ones you get from the good old U.S. Census Bureau and then let your common sense go to work.

Consider the types of people who enjoy less commercial films... not your average fraternity brothers. As your wares can only be categorized as "outside the mainstream," the same will go for your audience. Look around the area for artsy movie houses and cheap-end art galleries; these will signal a plethora of bohemian denizens. If you find that the burg is short one alternative video rental store, then plop down your deposit baby, you're home!

Our hunch is that red tape wasn't exactly what you had in mind when you decided to go into the video rental business. But unless you hire a lawyer and accountant to take care of the vital paperwork, such as membership contracts, tax laws, zoning ordinances, business licenses and articles of incorporation, you'll have to get through miles of this red stuff before you see any tape of the videotape variety.

Equip Yourself:

• A broad range of titles, numbering at least 900
• Enough shelves to display your entire selection
• A counter with at least two cash registers
• A computer to keep track of inventory and accounts
• Plenty of movie posters (a.k.a. one-sheets) to line the walls with

Cast & Crew:

An astute staff can only help matters, so be on the lookout for sharp minds and quick wits. Your customers will appreciate it. Also, encourage your employees to watch any stocked films that they may have missed out on. Then give them the go-ahead to recommend their picks.

U.S. Small Business Administration Online
A terrific resource with information about the Small Business Act, tips on starting and financing your business, local resources, and much more.

Getting the Word Out:

Besides advertising in the film section of your city's newspaper, it may also be wise to look into less obvious forms of self-promotion. Many grocery stores now offer coupons on the back of receipts. This is a great way to attract new customers

Keep them coming back for more by offering something in the way of incentives, like a punch card which entitles the bearer to a free movie after 14 rentals, free popcorn, or a special $0.99 film rack.

And while we're on the subject of spreading the news, let's not leave out the fact that an alternative video store is just the thing for you media hounds. If you've always wanted to be in the papers, here's your big break. Because small, independent films are all the rage nowadays, go ahead and alert the local rags to your entrepreneurial premier. It's as simple as drawing up a press release and sending it to all the Arts & Entertainment editors in the city. Follow-up with friendly phone calls, and you're bound to get a mention. Now that's advertising money can't buy!