- Original Poster
- #1
I am torn between opening a catering establishment shop in the town centre or a shop just outside of the town centre.
Here are the advantages and disadvantages of each:
TOWN CENTRE SHOP
Advantages
Advantages
The money newspapes are writing about retailers getting hit hard and some sectors have profit warnings issued. Some shops are offering 'guerilla sales' due to poor christmas sales and some offering January sales starting early.
Credit crunch is hitting current retailers. But does not this just affect shops relying on home owners paying more in interest rates for mortages. My shop may not rely on customers affected by credit crunch because target audience not home owners but students (further education and univeristy, and school kids)
From the above information can any add to my list of advanatges and disadvantages to each shop?
What is your opinion derived from the information above? Should I go for town centre or out of town centre shop?
Here are the advantages and disadvantages of each:
TOWN CENTRE SHOP
Advantages
- centrally located
- lots of people passing by
- on main road (not on side street which might get overlooked)
- near too train and bus station
- can have permission to stock goods from another exclusive small business shop because further away from their retail shop
- I also can use the item to offer a different product than the suppliers retail shop; which in turn could generate more profits
- occassional events happening 2-3 times per year in town centre bringing thousands of people near to shop; for 2-3 nights per year business profits better than other days.
- possible good area for late night trade due to nightclubs and pubs nearby; more than out of town shop
- another similar business is opening up more shops at the rate of one a year.
- £13k,000 per annum
- £2000 or so business rates
- small store room
- higher overheads may mean that need much larger customer base to make same profit or break even.
- Larger customer base not guarenteed
- price of my goods no different to out of town centre shop. so mave to sell more goods just to break even; and is not guarenteed will have more goods sold due to location
- no car parking facilites for customers or staff other that than town centre car parks which charge a fee.
- more competition from other shops in town centre
- cant put up security shutters on shop front due to council restrictions and as result could cost smal fortune in replacing smashed windows - which does happen to shop windows occassionaly
- small store room offers less opportunity for moving into another division of another business idea
- could take longer to pay back business loan due to higher rate and rent; or even bankruptcy
- council owned
- same sized shop floor space as other shop
Advantages
- £5,200 rent (approx)
- £1,100 rates
- large store room; nearlly same size as shop floor
- on main road (not on side street which might get overlooked)
- large store room will provide me with opportunity for business expansion without having to find another larger premesis;
- large store room will provide me with larger office space and an extension of my home.
- developments happening in local vicinty bringing target audience near to the shops door step
- small free car park for staff and customers; and shop keeper
- less competition
- can stock same product as the wholesaler who will not supply to me due to too near his own shop but just by different supplier.
- can put up secuirty shutters at small expense
- low overheads (outgoings) (rent and rates)
- the main road links the town to other smaller towns and villages
- possible good area for late night trade due to nightclubs and pubs nearby
- another similar business is opening up more shops at the rate of one a year.
- less public passing by
- can't stock a key product due to restriction from supplier
- located on the other side of the ring road aroud the town centre - kind of cuts off the area from the town centre.
- Not near the best shops and location within the town centre.
- could take longer to pay back business loan due to less passer bys coming into shop and spending; or even bankruptcy; due to less passing trade
- same sized floor space as town centre shop
- probably more disadvantages just cant think of any
The money newspapes are writing about retailers getting hit hard and some sectors have profit warnings issued. Some shops are offering 'guerilla sales' due to poor christmas sales and some offering January sales starting early.
Credit crunch is hitting current retailers. But does not this just affect shops relying on home owners paying more in interest rates for mortages. My shop may not rely on customers affected by credit crunch because target audience not home owners but students (further education and univeristy, and school kids)
From the above information can any add to my list of advanatges and disadvantages to each shop?
What is your opinion derived from the information above? Should I go for town centre or out of town centre shop?
