Opening a Shop.

[magic-merl]

OK. I will try to keep this basic and simple.

I am thinking about opening a shop (Bricks and Mortar)

What are the common pitfalls?

Now besides the usual things such as taxes etc. I am looking for things which would be more specific to owning (leasing actually) the running of....

Business tax, Council tax, landlord issues.

[Jason_Lee]

What sort of shop are you thinking of opening?

[magic-merl]

It's childrens items, prams, cots, car seats etc.

[Strategist]

The single biggest issue for most individuals opening a shop are the premises. There are a lot of rogues in the commercial property arena. A common problem is tenants that are doing badly and behind in their rent, trying to sublet the premises (usually without the consent of the landlord). Always, always, always hire a solicitor or surveyor to act on your behalf in order to, ascertain the validity of the lease and to negotiate terms on your behalf. Even then, it is worth getting a second opinion. A client of mine was 24hrs from signing a lease when he spoke to a local concillor at a function the evening before to be told that the premises he was about to take on were Council owned and there would be no way that a sublet would be sanctioned. My client had used a solicitor during the whole process. He threatened to sue the solicitor who promptly paid him compensation!

[directmarketingadvice]

What are the common pitfalls?

Not having a market that's big enough to support the shop.

For example, it could be because the market is already well served. It could be because you have a weak location and there aren't enough people in your area or willing to come into your area just to buy what you're selling.

Steve

[magic-merl]

Yes, the last point I understand but the Marketing aspect of any business is another detail that has to be taken into consideration.

But I am looking for the pitfalls of opening a shop - or indeed benefits. Currently, if we opened the doors NOW. We would have 100% market share in my vicinity. there are no other shops within our area selling our products at the prices we charge - that includes the likes of Mothercare who's nearest store is 10 miles away.

We also have an aspect of service that no other competitor has, giving us a significant advantage in the marketplace.

Ideally I am looking for help on legalities, hidden costs, council tax's, business taxes (how the cost is calculated)- avoidable pitfalls which will help me in the short-term. For example - councils not emptying commercial bins. Mundane but helpful information.

[UKSBD]

A very important thing you should consider is the DDA. (Disability Discrimination Act)
Make sure the premises you use are easily accessible, easy to get around in and comply to other aspects of the DDA.

Ask your solicitor about any implications the DDA might have on you before buying a property or signing up to any lease.

[winton50]

Good staff can be exceptionally difficult to find

Make sure you are taking on a shop that fits in with your customer profile. i.e. don't get a shop in a secondary area if you need a high footfall like a £ shop for instance

Don't assume that because the shop is empty it's great. ask yourself why it's empty

work out exactly what you need to spend on fittings etc, add one third and then double it and you should be about right.

remember that commercial rents are usually paid three months upfront

get quotes from solicitors BEFORE engaging them. Their fees do vary

don't be tempted to bodge things. Nothing looks worse than a poorly done job. if you can't do it perfectly then get a professional to do it.

remember that friends and family are the worst people to take advice from. They will always tell you that everything is great.

Business link are the second worst people to take advice from. A man with a great deal of experience in welding will come and tell you that almost everything is great but you need to pay him £350 to come back and tell you a bit more.

If you are unsure about anything post a question on here. Most people are happy to help and you will get a great deal of free, impartial and practical advice

[magic-merl]

Now that is more like it. Thank you very very much much.