Deals on Wheels You can afford a retail business! Successful kiosk and cart entrepreneurs reveal how.

They're in malls, on street corners, at parks and outsideoffice buildings--entrepreneurs who've made their dreams ofretailing a reality by opening cart or kiosk businesses. They selleverything from hot dogs to sunglasses, from men's ties toT-shirts. And they do it with overhead costs that are far less thanthose of full-fledged stores.

For many entrepreneurs who dream of breaking into retail,opening a shop is cost-prohibitive--but a cart or kiosk is aprofitable possibility. Just ask Wally Rizza. In November 1995,Rizza, then 21, spent $25,000 to launch Shades 2000 Inc., asunglasses cart at the Irvine Spectrum Entertainment Center inIrvine, California. Within a year, he raked in $184,000 in sales.Today, Rizza has three sunglasses carts, a watch cart and a jewelrycart, and he expects to gross about $500,000 this year. "Acart business can be very profitable and is economically withinreach for many people," says Rizza, now 24.

"If you have the right product and a good location,it's not uncommon to make $2,500 to $5,000 per week [with acart]," says Bruce Stockberger, owner of Stockberger MarketingAssociates, a North Palm Beach, Florida, small-business marketingfirm specializing in cart, kiosk and Internet marketing. "Youcan buy a cart for as little as $11,000 and make $1,200 to $1,500per day." Kiosks--larger, enclosed, more permanent units inwhich the operator sits or stands--can pull in $20,000 to $60,000per week, Stockberger says.

You don't need special training to run a cart business. Whatyou do need is an outgoing personality, stamina and businesssense. "The business is stressful," says Stockberger."Most malls are open from 9 or 10 a.m. until 9 or 10 p.m.every day, and you're expected to be there. That's a lot ofstanding. Even if you set up shop on the street or in a park, tobuild a customer base, you have to show up regularly."

Employees may seem a logical solution to the intense laborrequirements, but that's not as easy as it sounds. "I haveemployees, but I have to watch them like a hawk," says Rizza."If they're talking to friends instead of pushing theproduct, I lose business."

Julie Bawden Davis is a writer in Orange, California.

Decisions, Decisions

Options for starting a cart or kiosk business include opening apermanent location in a mall and leasing a cart; buying a cart touse for outdoor events or on street corners; or renting a cartshort-term.

"The least expensive option is to rent [a cart] for a shorttime and see how it goes," advises Stockberger, who saysyou'll spend at least $600 per week for rent.

Whether you lease or buy a cart depends on your product andlocation. In malls, you generally lease a cart from mallmanagement. The cost of leasing depends on the season and malltraffic volume but is usually at least $800 per month for space anda cart, and can get very high in a good location. Some malls chargea percentage of your sales in addition to monthly rent. Rizza paysmore than $2,000 per month for rent on each of his five carts.

You can buy a new cart for $3,000 to $5,000, says Denise Clark,who started a hot dog cart business in 1988 in Los Angeles for$2,500 and made more than $3,000 her first two days in business atthe Rose Bowl. Today, Clark has six carts grossing a total of$200,000 to $300,000 per year.

"Kiosks start higher than carts, usually $9,000 or$10,000," says Clark, author of FromDogs . . . To Riches: A Step-by-Step Guide toStart & Operate Your Own Mobile Cart Vending Business (MCCPublishing Co., $39.95, 310-323-5557).

Additional start-up costs depend on your merchandise. Items suchas jewelry and crystal require a greater investment than, say, hotdogs, as Suzette Lindsey, 35, discovered two years ago, when shestarted a second cart business in the Kennesaw, Georgia, TownCenter Mall.

Lindsey and her mother, Betty Lou, 57, had been selling craftsat a cart for 10 years. "Our start-up costs were low--probablybetween $15,000 and $20,000--because we made all ourmerchandise," Lindsey says.

Then the two decided to switch to pre-made items. Their newcompany, Top Dogs & Cool Critters, carries pet-relatedfigurines, key chains, T-shirts and mugs. "[It cost] $75,000to get a good inventory," Lindsey says. Since start-up twoyears ago, sales have increased 25 percent annually.

Pick Your Product

What to carry depends on what you like and what you think willsell. "I gave 100 people a list of products and asked whichthey would buy," Rizza says. "Most people saidsunglasses. I determined sunglasses appeal to a variety ofages."

The next step is choosing a cart. Carts come in many sizes andstyles with varying capabilities. There are carts for specifictypes of food, some with refrigerators, grills, steamers--evensmall ovens to bake on location.

Determine your needs before ordering a cart, says JeffreyMorris, president of All A Cart Manufacturing Inc. in Columbus,Ohio, a cart design and manufacturing company. "List yourproducts and the equipment required to make or display them,"he says. "Also draw a simple layout of the cart to give [themanufacturer] an idea of size requirements."

Think versatility, especially with food. Don't limityourself to making one item, in case it doesn't sell well andyou have to switch gears.

"What sells might be completely opposite from what youthought," says Gerardo Gonzalez, director of food service atthe Statue of Liberty in New York City, which has several carts,and president of Gonzalez & Associates, a Piscataway, NewJersey, company that consults on mobile merchandising andfood-service start-ups.

You can get a good deal on used carts, but Clark, who also sellscustom-designed carts, urges caution. "People buy a cart theythink is cute--only to find out they've purchased someoneelse's headache," she says. "It ends up costing moreto modify than to buy new."

Set Your Sites

In cart sales, location is everything. First decision: Do youwant a permanent location or should you move from event toevent?

With a permanent mall location, you don't have to worryabout purchasing a cart, moving or battling bad weather (unlessit's an outdoor mall). You can build a clientele and predicthow business will go and how much product you need.

On the downside, rent may rise. If mall sales slump, you'llsuffer. And if your product isn't exclusive, a neighboringstore could start offering the same merchandise.

There are many upsides to owning a mobile cart, says Clark, whodoes most of her business at special events. "You don'thave overhead like rent and utilities," she says, "and ifsales are poor, you just move."

Research your location thoroughly. "Visit the area atdifferent times over a two-week period to analyze traffic flow andget an idea of potential clientele," says Gonzalez. "Doyou see a lot of children and teenagers or middle-aged people andseniors? Each age group has different requirements."

Don Roeder's Carte du Jour Catering has a regular locationin front of a law school in downtown Columbus, Ohio, but isespecially successful in front of downtown bars on weekends."I sell a lot of hot dogs and sausages to men coming out ofbars," says Roeder, 32, who has doubled sales since startinghis cart business in 1997 for $20,000.

Once you've chosen a location, contact the appropriateauthorities about setting up shop. For a mall, that's mallmanagement in charge of carts and kiosks. For a public place,contact the city or county to see if a cart is allowed and whatpermits are required. In a professional office building, contactbuilding management.

"Don't give up," says Morris. "If someonesays you can't put a cart in a certain spot, check with someoneelse. You may find it's possible after all."

You'll need a business license, and if you haul your cartlike a trailer, you must get a license from the Department of MotorVehicles. If you serve food, you'll need a permit from theDepartment of Health, which requires a specific amount of trainingin food preparation and handling. Malls often already have thecarts permitted and insured.

Once you've opened your cart or kiosk, attract customerswith eye-catching displays. You and your employees should bewell-dressed and enthusiastic and make eye contact withpassersby.

Most important, keep the faith. "Think positive," saysRizza. "Even if business is slow, look at the big picture andknow that, in the long run, you're going to make it."

Hot Stuff

Almost any high-quality product can sell at a cart or kiosk ifit's packaged well and offered with a smile. Some perenniallypopular offerings:

• Balloons
  
• cosmetics
  
• crystal figurines
  
• flowers
  
• food: hot dogs, coffee, doughnuts, pizza, ice cream, cookies,health food, candy, cake, pie, popcorn
  
• hats
  
• jewelry
  
• key chains
  
• perfume
  
• personalized children's books
  
• personalized coffee mugs
  
• scarves
  
• sports-fan-related products
  
• sunglasses
  
• sweatshirts
  
• ties
  
• T-shirts
  
• wallets
  
• watches

Contact Sources

Carte du Jour Catering, (614) 475-1821, droeder@aol.com

Shades 2000 Inc., http://www.shades2000.com