Starting up a library for profit...how?

[Tigresa]

Good evening, all...and Merry Christmas (to those who are celebrating). I'm new to this site and forum and have a question I hope to get some feedback on, as there really just aren't any people I know in real life who have any insight to offer.

So, I've got an idea to start a private library. I love to read, and I tend to like to read on what I'll label 'fringe' topics. Without getting into too deep, I'll just say that 10 times out of 10, when I go to my public library looking for these titles, I never find them in the inventory. Thus, I usually have to scour the internet for a PDF copy of what I'm looking for or just order it outright, if I can find the book at all. Earlier this year, I just got the idea to start a private library full of these 'fringe' books. I'm sure there are other people out there thinking the same thing I am, and I'd like to provide the space/service for like-minded individuals to come out and read and check out books from this specialty library. Without getting too ahead of myself, I want to start my library small but do already have so ideas of how I might be able to expand it, if it proves to be a 'successful' business in the first year.

My issue, though, is figuring out a way to actually make real money off of this library. Right now, I'm a stay-at-home mother, and I'm looking to turn what I love into a stream of income which produces, hopefully, comparable to what my spouse earns, or at least half to start. However, when I look at everything I'll need to even get started - money for renting a commercial space in the area, procuring licensing, buying furniture and purchasing inventory - I cannot figure out the details of what I'm missing. I'm at a loss for how I'll get the funds to start up (do not want to take out a loan). Furthermore, I really can't figure out how to turn this into a money-making venture, though I know it is possible...I just do not know how to accomplish it.

I'm looking for any ideas, suggestions, critiques...ANYTHING would help spark more thought as I start to really structure and refine a business plan for this fringe library. Does anyone have any idea how I can make money off of my own library? Furthermore, how might I procure startup capital for such a business? Any comment would be appreciated. Thanks!

[Harold Mansfield]

Before you even get to the money, you need to first figure out what it is you want to do.

One of the fist stages that every entrepreneur goes through is solving a problem that they themselves have had and discovering if there's a niche market in it that can also be profitable.

You seem to have identified a problem that you're having, however you made a significant leap from that to "I'm sure others are having this problem" without having done any research as to whether or not that is actually true. It's one thing to have a feeling, it's another to know for sure.

I personally don't see a library as the vehicle for a business in this niche. By their very nature libraries don't make money. They are for lending and borrowing.
The second warning sign should be that brick and mortar book stores have died, and the only reason libraries still exist is because they are tax payer funded. Not enough people would pay to keep a library afloat when there's so much information online now.

There may be other ways to capitalize on your niche, but unless you know there's a significant market in your area renting a commercial space to capitalize on it seems very risky, if not a completely losing battle.

Since we are talking hypothetical, lets say money isn't the issue, I may look at something else that actually makes money with which you can incorporate your niche...like a combination coffee shop, library, bookstore. But of course now you have to learn the coffee business.

Sorry, but I just don't see a physical library as the way to go. I sounds nice, but not if you actually want to make some money.

[tallen]

You might consider a different model than a library, like, say, netflix.

Your clientele (readership) is likely more scattered, not clustered in any one geographic location, so rather than a physical library, you may need to rent out your books by mail (or virtually).

Also you can still organize your business as a not-for-profit entity if that makes more sense than a for-profit entity. Both types of organizations need to have revenue in excess of expenses and can pay you a salary. The difference is that the investors in a for-profit are hoping to make a return on their investment, while the "investors" in a NFP are "investing" for the good of the community.

Finally, getting back to your own needs, have you ever looked into "inter-library loan?" Most public libraries are part of an inter-connected system, and even if a given book you are looking for isn't in your local library's catalog, you can place a request to borrow it through ILL, thus putting the librarians to work trying to find it for you in one of the other inter-connected libraries. (You do have to already know the title and author, and any other bibliographic information that you can supply is helpful.)