Entrepreneurial musicians have a unique opportunity to turn their passion into profits within the music resale industry. Currently, used goods stores in the US make up a $13 billion industry. Not to mention, the music instrument industry is currently sitting at $6 billion.
As the largest and most recognized music instrument resale franchise, Music Go Round® allows consumers to buy high-quality used equipment and sell the gear they aren't using anymore to get paid on the spot. This is a prime opportunity for hopeful business owners with a musical interest or background to open a successful music store.
While there are many paths people can take to business ownership, the franchising route is a common favorite because it takes the guesswork out of operations and business practices. It's a tried-and-true, proven method for success. Because of this, it's important to consider the differences between opening a standalone independent music shop and opening a resale music store franchise.
Opening Your Own Store vs. Joining a Franchise
There are several differences between opening your own business and joining a franchise. Regardless of the route you choose to take, it's crucial to take a look at what it takes to open a successful music store.
Costs
When you join a franchise, the costs are typically predetermined, and you shouldn’t run into as many unforeseen costs or fees as you may starting from scratch. When you open your own store, determining how much money you'll need to run a successful business might be a little tricky. You don't know what you don't know, and if it's your first stab at owning a business, there will likely be some unexpected costs. Franchisors typically have established relationships with suppliers which creates buying power for the brand.
Time
If it's your first time as a business owner, you should expect to spend a significant amount of time devoted to your music store before starting to see a return on investment. In contrast, franchises usually get up and running reasonably quickly thanks to their operations. In both cases, you’ll need to take a hands-on approach to operations in order to achieve the outcomes you anticipate.
Operations
When you join a franchise, you're following an established business model with a proven plan to help business owners succeed. You won't be left to figure out the operations aspect of your business as you would if you were a single business owner.
Brand Recognition
Brand recognition is another added benefit of joining a franchise because you don't have to build a brand from the ground up; many times, the franchise is already a well-known name. Joining a franchise could save you time and money on marketing based on brand awareness alone. That said, you’ll still have to dedicate yourself to building a consumer base within your community to make sure people know you’re there and the products available to them.
Marketing
As a first-time business owner, you can expect to run into a lot of trial and error when it comes to successfully marketing your music store. You would have to test various marketing tactics before you learn what works and what doesn't. As a franchisee, you follow a method that's been proven to work, which takes the guesswork out of marketing. At the same time, the franchisor may run advertising and marketing campaigns on the franchisees’ behalf to drive awareness and in-store traffic.
Support
The most notable benefit of joining a franchise is typically the support that you receive from the franchisor. As a first-time business owner, you may have business mentors or access to a great network of entrepreneurs, but ultimately, they can only help you so much. Whereas, a franchisor knows what each of their franchisees needs and is prepared to answer or fix any question or problem.
With all of these factors considered, our music store franchise has created a fool-proof franchise model that's not only easy to follow but known to see results.
How to Open A Music Go Round Store
With Music Go Round, the steps to opening your resale music store franchise are pretty simple, regardless of whether you have former business or music experience. To begin the process, prospective franchisees should fill out the qualification form on our website and review our franchise report. From there, the Winmark® team will reach out with more franchise information regarding the due diligence process.
To open a Music Go Round location, we require a minimum of:
- $400,000 – Net Worth
- $90,000 to $105,000 in cash or liquid assets
We understand that not everyone will meet our requirements. Thanks to our relationships with various lenders and the fact that Winmark Corporation is so well-regarded in the industry, our franchisees have an excellent track record of success with getting funded.
From there, we'll get you in contact with various franchisees and learn more about the brand. This will allow you to see how to run a successful franchise and get a picture of the day in the life of a franchise owner. Next, you'll head to Discovery Day at our headquarters in Minneapolis where you'll meet the Music Go Round team and speak with our experts on all things franchising. After it's all said and done, you'll sign the agreement and head to franchisee training, where you'll learn all you need to know about opening your music store.
How We Support Our Franchisees
At Music Go Round, we've already identified the best workflow, systems and operations to open a successful resale music store. From the moment our franchisees sign the franchise agreement, to the moment they open their store doors and everything in between, we support our franchisees all the way through. Offering support in the areas of financing, site selection and real estate, marketing and advertising, inventory, training staff members, we're there through it all.
Interested in Getting Started?
With a proven framework for every business process imaginable, Winmark's Music Go Round is the perfect solution for aspiring business owners. Turning your passion into a thriving business becomes easier when you're backed by a leading franchisor guiding you every step of the way.
Interested in a business opportunity in the growing music resale industry?
Contact us to learn more!
