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What costs are involved in setting up and maintaining a shop?

Discussion in 'E-Commerce Forum' started by coultog, Apr 19, 2007.

  1. coultog

    coultog UKBF Regular Free Member

    Posts: 286 Likes: 6
    Hi all,

    I've been thinking about setting up a shop. I thought I'd try and list all the costs involved and so far I've come up with a pitiful - I know there must be more than:

    • Rent / Lease
    • Council Business Tax (forgot the proper name for it!)
    • Telephone / Broadband
    • Salaries (the big one for me!)
    • Electricity & Gas
    That's all I've come up with so far.

    For one off costs, I also have:

    • Shop signage
    • Shop Fit Out
    I know there's more, perhaps I'm just tired. If anyone has a shop or had a shop and could share some wisdom, that'd be great!

    Thanks
  2. sharon25

    sharon25 UKBF Regular Free Member

    Posts: 24 Likes: 0
    WHat kind of a shop are you talking abt..? an online shop or an offline shop..?

    and if its an online shop you can save most of the costs that you have to pay for an offline shop
  3. coultog

    coultog UKBF Regular Free Member

    Posts: 286 Likes: 6
    I'm looking for the costs or a Bricks and Mortar shop - one you can walk into from any high street in the land.

    I have a number of online shops - i'm just looking to understand how much it would be for a B&M store for a new business venture.
  4. coultog

    coultog UKBF Regular Free Member

    Posts: 286 Likes: 6
    I wonder why or how I managed to put this in the e-commerce forum. I'll post this i nthe right forum LOL
  5. ianz1

    ianz1 UKBF Newcomer Free Member

    Posts: 1 Likes: 0
    hey, i would like to set up a shop aswell, im new to this thing the cost's i can deal with, the bit that i dont have a full understanding off where to get the products in bulk to sell in the shop things like that, any advice would be helpful :D thanks.
  6. barginboyrob

    barginboyrob UKBF Regular Free Member

    Posts: 185 Likes: 17

    surely you need that first lol?
  7. Bri

    Bri UKBF Regular Free Member

    Posts: 3,048 Likes: 600
    Security(Alarm, CCTV)
    Insurance (contents, employers liability, personal sickness & accident) £600+ per annum depending
    Till(either PC based with back office inventory and accounting)
    Tax requirements(VAT)
    Merchant Banking( to take card payments, hardly anyone uses cash except me when I've got it).
    Forget salary for a while, take a wage by all means, 1st rule of business, no good doing it if you cant pay yourself. Dont be greedy, only take what the shop can withstand. Retail is not big buck transactions anymore unless your M&S, John Lewis etc.
    Fixtures and fittings(unless you plan to sell everything from off the floor)
    Merchandising, Advertising. Promotion.

    Anybody feel free to add, it cost us near on £20,000 to open our shop four years ago.Bear in mind it was high value specilaist kit too.
  8. KidsBeeHappy

    KidsBeeHappy UKBF Regular Full Member

    Posts: 7,358 Likes: 1,580
    Water rates, these are always a lot higher than you think reasonable. And infact proabably the sole reason we shut one of our shops.

    Parking costs, permits etc.

    Waste disposal costs, these are not free for businesses. And if you're likely to have anything more than a standard wheelie bin a week, definitely check these out with your local council.

    Lighting - whatever is there already will probably be unsuitable.

    If you are employing, then would highly recommend some kind of employment protection insurance, or FSB. Shops = stock = employee theft. Not always true but you need to be prepared for it, partic if employees will be unsupervised at times (even shop managers).

    Electrical testing, PAT testing, etc.

    Fire extinguishers, annual servicing, and a fire safety policy.

    Buildings Insurance and Property Service fees, probably ontop of the rent. Shops are rarely standalone buildings. Flats ontop of shops = flooded out shops & lost stock when the washing machine leaks. Plus you'll probably be expected to contribute towards building maintenence costs etc (a share of the roof expenses etc.)

    Your legal fees.

    Normally, the landlords legal fees, partic if the lease is being transferred.

    If the lease is with the council, then anticipate it taking at least 2 months longer than it should, because the person dealing with it will be job sharing part timer, off on sick leave.
    Last edited: Mar 18, 2009
  9. deniser

    deniser UKBF Regular Free Member

    Posts: 6,904 Likes: 1,505
    I can add:

    Landlord's cyclical external redecorations including erection of scaffolding
    Sign writing
    Security tagging devices
    Blocked drains and drain repairs (plaguing the shop next door to us constantly, only we have to pay 90% of the cost based on floor space!)
    Window cleaning
    General cleaning
    Donating freebies to all those people that walk in asking for them on a daily basis
    Landlord's rent deposit
    Company incorporation fees
    Accountant's fees

    When we opened our first small shop - rent £5K pa - we thought we could do it with £15K. We ended up lending the company £35K.
  10. ginantonic

    ginantonic UKBF Regular Free Member

    Posts: 954 Likes: 129
    All I can say is "DON'T!" It was getting ridiculous, and we gave up when we were working far too many hours simply to keep the shop open, but weren't able to pay ourselves anything!
  11. Mattonella Tile Studio

    Mattonella Tile Studio UKBF Regular Free Member

    Posts: 1,679 Likes: 319
    PRS licence
    PPL licence
  12. michaelsmith

    michaelsmith UKBF Newcomer Free Member

    Posts: 4 Likes: 2
    don't forget fitting out the shop itself with shop shelving, racking etc.

    you can pick some up for free on gumtree sometimes but if you have specific requirements you'll have to try a proper retailer