I'm convinced that the type of store most of us would want to open would need to be something along the lines of a medium sized store front which caters to the locals, with a large scale warehouse/operation attached on the order of liveaquaria.com or saltwaterfish.com. Such an operation would also need a buyer living in LA and other import cities and perhaps even develop overseas connections with collectors and such.
Why? as was stated - 500 dollar angels in the holding tank are 500 dollar risks - fish food sitting on the shelf is capital tied up and taking up space. You have to be competitive if you want to carry a lot of exotics and variety, and specialized equipment - or you have to be the only game in town. Otherwise your hit and miss - and we all want consistency. I live in NB and while I'm trying to give business to WaterWorld they don't carry the dry goods I like or livestock I am interested in. So if I need a LFS hookup - I hop in the ram and toodle up to Aquadome or down to Aquarium Designs. When I needed a new Skimmer I called up Jason ad AD and asked "Can you get me this Reef Octopus Diablo 12" 300-EXT" and he said "Sure - but i can't compete w/ Aquacave - you should order from them." Done and done.
In essence - I think unless you just have a really killer business plan - you gotta have a large successful internet store to subsidize the type of store thats going to carry the really cool stuff. I mean - if I can put that 500$ angel infront of all the interwebs AND you - then that's a whole different story.
"Maybe in order to understand mankind, we have to look at the word itself: "Mankind". Basically, it's made up of two separate words - "mank" and "ind". What do these words mean ? It's a mystery, and that's why so is mankind." ~ Jack Handey