Whats involved in starting a shop

[CodeWriter]

Hi All,

I'm currently looking into whats involved in starting a retail business. This is something that I am seriously considering so i would be incredibly grateful for any help/assistance.

I just really wanted to get peoples experiences. Especially people that have no prior businesses, and have decided to start up a shop.

I also have a question. What costs are involved with starting a shop?
Especially in the rental/lease side of things? I know that its an ever-going list (theres plenty of things to consider) but heres what ive got:

Shop lease/rental
Shop fitting (including all electrics/till etc)
Stocking
Staff (although this will be very minimal initially)
Advertisment
Misc (stuff like printing business cards, all little expenses).

Is there anything ive overlooked?

Thanks In Advance!

 

[kulture]

Location, solicitors, insurance, telephone, accepting credit cards, market research, diy fixing of whatever goes wrong, Rates, Licences(if any), Health and safety, payroll, Accountant,

as you say, the list goes on and on and on

 

[CodeWriter]

Hmm, it does truly go on and on... How do most shop owners/business people go about calculating all costs? Do most use consultants or is it a case of sit down and list it all?

 

[kulture]

Most people would sit down and do a business plan. This would cover the costs and a lot more besides.

 

[CodeWriter]

Already started with that! Theres just so much to consider! But im getting there slowly.

What about statistics, whereabouts do people usually get market research type ones? Ive looked on the government stat website and not found much usefull...

 

[CodeWriter]

Also, what licenses exactly are required to open a retail store? It will be pet based, so i know i will require a Pet Shop License, but are there any that are required for general usage?

 

[Toby1968]

I would ask why you started a thread at midnight?

I would say that most of us that have a retail business had the initiative to get off the ground without asking the most simple of questions on a forum - all the info' you require is readily available with a little bit of effort (you'll be needing a lot of effort in the future if you succeed in opening a shop).

If you can't even get the basic info' yourself you won't be suited to running you own business - it's not a "hand-held" experience. If you need "hand holding" then your only self-employment option may possibly be to look at a franchise.

 

[CodeWriter]

I started this thread at that time because i am the kind of person that gets up at 8:30 am and then keeps going until that time because i know that planning involves time. I may ask, how do you succeed in business without having the drive to be able to do that?

Yes, maybe my questions are the most simple, but everyones got to start somewhere. You're seriosly saying that when you started out in business you didnt ask the most basic questions? Or are you one of those that got things handed to you on a plate?

My experience is by no means in running business, my experience is withn the industry that intend on going into, hence why I may need a little more help than others. Seriously, it would have probably take you less time just to answer the questions than give some 'big headed', 'i'm better than you responce'. Every question i have asked i have done some research into myself, and either im looking for more options/opinions OR my research didnt find anything.

Thanks for your valuable input!

 

[dave1928]

First thing is rent / lease, rates, electric / gas, phone, broadband, insurance, security alarm, CCTV? general shop security.

Remember location is very important so make sure you are well positioned for your type of business at a sensible cost.

Kit out the shop with suitable display units etc and same for stock room and kitchen / office equipment. (computer, printer desk etc)

Suitable stock to make shop look full.

Till, phone, card machine and all suitable stationary needed for your type of business.

Signage for main shop outside done professionally. Make sure everyting is clean tidy.

Lots of research into what advertising needs to be done......try get someone to do a grand opening day and get yourself mentioned in local paper.

At least sort out a basic website with general info.

Good intro offers to get people talking about you.

Make sure your are well priced on stock with wide variity and offer good happy service and advise.

Thats of top of me head so bound to have missed some stuff out but there some basics.

 

[Toby1968]

I started this thread at that time because i am the kind of person that gets up at 8:30 am and then keeps going until that time because i know that planning involves time. I may ask, how do you succeed in business without having the drive to be able to do that?

Yes, maybe my questions are the most simple, but everyones got to start somewhere. You're seriosly saying that when you started out in business you didnt ask the most basic questions? Or are you one of those that got things handed to you on a plate?

My experience is by no means in running business, my experience is withn the industry that intend on going into, hence why I may need a little more help than others. Seriously, it would have probably take you less time just to answer the questions than give some 'big headed', 'i'm better than you responce'. Every question i have asked i have done some research into myself, and either im looking for more options/opinions OR my research didnt find anything.

Thanks for your valuable input!

You get up at 8:30am - nice lie-in every morning for you then, I would suggest this late start will be gone, as will the late nights, should you end up with a shop.

I seriously didn't ask the most basic of questions via a forum of people I don't know, many of whom could be kids or fools (no offence anyone!), I did research what I needed to know by talking to the District Council, Letting Agents, Landlords, Suppliers, HMRC, Accountants & Solicitors. Yes this did require a bit more effort than posting a few lines on a forum at midnight, but at least I knew I had the correct information from the right people.

If you call using redundancy and my life savings, and going it alone with a family and mortgage to support to start my main business, then yes, it was handed to me on a plate - life just looks down favourably on some us

It was not a "I'm better than you" response, just a realistic heads-up as to what running a business is all about, if you can't take that little bit of criticism then it would, again, suggest you are not best suited to being in business at all.

 

Hi All,

I'm currently looking into whats involved in starting a retail business. This is something that I am seriously considering so i would be incredibly grateful for any help/assistance.

I just really wanted to get peoples experiences. Especially people that have no prior businesses, and have decided to start up a shop.

I also have a question. What costs are involved with starting a shop?
Especially in the rental/lease side of things? I know that its an ever-going list (theres plenty of things to consider) but heres what ive got:

Shop lease/rental
Shop fitting (including all electrics/till etc)
Stocking
Staff (although this will be very minimal initially)
Advertisment
Misc (stuff like printing business cards, all little expenses).

Is there anything ive overlooked?

Thanks In Advance!

My initial advice would be to make your enquiry more specific. Find a vacant unit that might be appropriate for your business and you can gather some hard facts. from there you can look at your parematers - less prime location, square footage, parking etc.

As it stands you will be working with far too many variable; plus you questions will be taken more seriously.

 

[Doodle-Noodle]

Oh this is sooooo easy ..... you work out what you think it will cost you, quadruple it, then add 55% .....(plus VAT obviously) and remortgage your house.
Once you've done all that and bought a load of stock on your personal credit card because your initial budget was overstretched by so much that if you phone you bank to extend your overdraft you get the laughing machine instead of a person, you'll be ready to open.
You'll work 6 days a week, 11 hours a day with no pay; spend your time fending off people who never come into your shop to buy anything but expect you to hand over raffle prizes for the One Legged Beaver Society that you've never heard of and are really suprised when you tell them - politely of course - to bog off. Then, two and a half years later, you'll realise you got it completely wrong and spend sleepless nights wondering why on earth you ever thought it was a good idea in the first place ........
yes...... I am having (another) bad day ......

 

[dave1928]

Yes you will get lots of people phoning and coming into shop to ask for donations / support for raffles / charities etc. They all must think were making millions. I always just state that i already support my chosen charity so thanks but no thanks (which i do by the way!!). They never like it and think your mean, and even the odd cheeky souls say its only a fiver or whatever.

I always taken the attitude not to support the ones that come begging as i dont like that and puts us business in a slightly umcomfortable position. If your gonna support a charity or simialr then go out and pick one. Especially if you have charity more personal to you or family / friend. Mine is to do with deaf blind as i suffer myself.

 

Oh this is sooooo easy ..... you work out what you think it will cost you, quadruple it, then add 55% .....(plus VAT obviously) and remortgage your house.
Once you've done all that and bought a load of stock on your personal credit card because your initial budget was overstretched by so much that if you phone you bank to extend your overdraft you get the laughing machine instead of a person, you'll be ready to open.
You'll work 6 days a week, 11 hours a day with no pay; spend your time fending off people who never come into your shop to buy anything but expect you to hand over raffle prizes for the One Legged Beaver Society that you've never heard of and are really suprised when you tell them - politely of course - to bog off. Then, two and a half years later, you'll realise you got it completely wrong and spend sleepless nights wondering why on earth you ever thought it was a good idea in the first place ........
yes...... I am having (another) bad day ......

I think that's a little unrealistic: you say you work 6 days a week, but seem to forget that on Sundays you can do the books, plan your marketing, perhaps have a little change-around.

Lazy!!

 

[Doodle-Noodle]

I think that's a little unrealistic: you say you work 6 days a week, but seem to forget that on Sundays you can do the books, plan your marketing, perhaps have a little change-around.

Lazy!!

Indeed ....... really should make better use of my time. Have decided that at least once every two months I am going to make the time to have a good fart too ........

 

[Doodle-Noodle]

Yes you will get lots of people phoning and coming into shop to ask for donations / support for raffles / charities etc. They all must think were making millions. I always just state that i already support my chosen charity so thanks but no thanks (which i do by the way!!). They never like it and think your mean, and even the odd cheeky souls say its only a fiver or whatever.

I always taken the attitude not to support the ones that come begging as i dont like that and puts us business in a slightly umcomfortable position. If your gonna support a charity or simialr then go out and pick one. Especially if you have charity more personal to you or family / friend. Mine is to do with deaf blind as i suffer myself.

I am actually going to start a new thread on this very topic as I'm so fed up with it ........ another chance for a good old fashioned rant methinks!

 

[Toby1968]

Oh this is sooooo easy ..... you work out what you think it will cost you, quadruple it, then add 55% .....(plus VAT obviously) and remortgage your house.
Once you've done all that and bought a load of stock on your personal credit card because your initial budget was overstretched by so much that if you phone you bank to extend your overdraft you get the laughing machine instead of a person, you'll be ready to open.
You'll work 6 days a week, 11 hours a day with no pay; spend your time fending off people who never come into your shop to buy anything but expect you to hand over raffle prizes for the One Legged Beaver Society that you've never heard of and are really suprised when you tell them - politely of course - to bog off. Then, two and a half years later, you'll realise you got it completely wrong and spend sleepless nights wondering why on earth you ever thought it was a good idea in the first place ........
yes...... I am having (another) bad day ......

OP, just remember that there are some of us who don't have it quiet this easy, this is the extreme example of how things go when it's all set up and pretty much running itself - all you have to do at this stage is come in once a week and bank the profits. Doodles - well done!

 

[warnie]

Oh this is sooooo easy ..... you work out what you think it will cost you, quadruple it, then add 55% .....(plus VAT obviously) and remortgage your house.
Once you've done all that and bought a load of stock on your personal credit card because your initial budget was overstretched by so much that if you phone you bank to extend your overdraft you get the laughing machine instead of a person, you'll be ready to open.
You'll work 6 days a week, 11 hours a day with no pay; spend your time fending off people who never come into your shop to buy anything but expect you to hand over raffle prizes for the One Legged Beaver Society that you've never heard of and are really suprised when you tell them - politely of course - to bog off. Then, two and a half years later, you'll realise you got it completely wrong and spend sleepless nights wondering why on earth you ever thought it was a good idea in the first place ........
yes...... I am having (another) bad day ......

Doodles you have just summed it up perfectly! Best post of the year so far!

Especially the disappearing initial budget, and what is it with people thinking that because you have a shop loaded with stock you are rich and should donate to every tom Dick and harry?

We have just closed our 1st shop and are trying not to lay anyone off, so every last penny is accounted for , were trying everything just to keep people in work yet still we get hammerd by people if we say we can't donate this time. Sometimes you have to put the business 1st and now if we do donate we ask people to spend a little in the shop beforehand.

 

[CodeWriter]

Wow, there have been alot of new posts since i last checked... Havent read through them all proplerly yet...

First thing is rent / lease, rates, electric / gas, phone, broadband, insurance, security alarm, CCTV? general shop security.

Remember location is very important so make sure you are well positioned for your type of business at a sensible cost.

Kit out the shop with suitable display units etc and same for stock room and kitchen / office equipment. (computer, printer desk etc)

Suitable stock to make shop look full.

Till, phone, card machine and all suitable stationary needed for your type of business.

Signage for main shop outside done professionally. Make sure everyting is clean tidy.

Lots of research into what advertising needs to be done......try get someone to do a grand opening day and get yourself mentioned in local paper.

At least sort out a basic website with general info.

Good intro offers to get people talking about you.

Make sure your are well priced on stock with wide variity and offer good happy service and advise.

Thats of top of me head so bound to have missed some stuff out but there some basics.

Thanks, very helpful indeed!

One last question, whats the best way of approaching a larger business to ask for retail space within their premises. For example, approaching a garden centre to see whether they would be able to accomodate my business within one of their nurseries?

 

[CodeWriter]

I seriously didn't ask the most basic of questions via a forum of people I don't know, many of whom could be kids or fools (no offence anyone!), I did research what I needed to know by talking to the District Council, Letting Agents, Landlords, Suppliers, HMRC, Accountants & Solicitors. Yes this did require a bit more effort than posting a few lines on a forum at midnight, but at least I knew I had the correct information from the right people.

I think this is probably slightly under-estimated seeing as you dont know my personal circumstances of experience within the industry that im trying to enter.

You make it sound like im just on here posting to get all the answers to my questions. That is very incredibly far from the case (hence why i take offence to it). Yes, i am currently in the planning stages, and at the moment i am spending every waking hour thinking through thinks, getting ideas, trying to work out how to make thigns work. I have spent many an hour trwaling the internet, working out exact costs from councils and government regarding business rates, calling suppliers (wholesalers) and talking to shopfitters. Not to mention that I have a few contacts that are business consultants that I am currently seeking the advice of. No, I wouldnt class myself as a businessman by any means, but I know my industry and I know it well, so what if I need a little help on the financial/technical side of running a business!

The main point of what i'm saying is that i'm on here to get opinions/advice from people that are actually out there, not just trying to cheat and go the easy way about it. All I want is real-life experiences from the widest range of people possible, something which I would not otherwise be able to do without going via forums.

Sorry about the long post people...

 

[Toby1968]

I think this is probably slightly under-estimated seeing as you dont know my personal circumstances of experience within the industry that im trying to enter.

You make it sound like im just on here posting to get all the answers to my questions. That is very incredibly far from the case (hence why i take offence to it). Yes, i am currently in the planning stages, and at the moment i am spending every waking hour thinking through thinks, getting ideas, trying to work out how to make thigns work. I have spent many an hour trwaling the internet, working out exact costs from councils and government regarding business rates, calling suppliers (wholesalers) and talking to shopfitters. Not to mention that I have a few contacts that are business consultants that I am currently seeking the advice of. No, I wouldnt class myself as a businessman by any means, but I know my industry and I know it well, so what if I need a little help on the financial/technical side of running a business!

The main point of what i'm saying is that i'm on here to get opinions/advice from people that are actually out there, not just trying to cheat and go the easy way about it. All I want is real-life experiences from the widest range of people possible, something which I would not otherwise be able to do without going via forums.

Sorry about the long post people...

Liar, sorry but true, you have contradicted yourself, you original post was asking the cost of leases, staff, stock and advertising. Now you say you have all this information and taking council from two business consultants (why two?). So as I say you are either a liar or wasting peoples time.

I would also ask why you are "thinking" rather than doing?

 

[Deleted member 61074]

What's your problem Toby1968? There is no moderation here on questions asked, if you think the op is a timewaster just move on.

Some people are doers some prefer to think and plan first. Some people like to research on their own others like to research and then ask others just to check they haven't missed anything.

As with all threads here if you can't be useful and constructive - don't bother posting.

 

[Toby1968]

What's your problem Toby1968? There is no moderation here on questions asked, if you think the op is a timewaster just move on.

Some people are doers some prefer to think and plan first. Some people like to research on their own others like to research and then ask others just to check they haven't missed anything.

As with all threads here if you can't be useful and constructive - don't bother posting.

My problem is the OP is asking for the most basic of information. Then he claims to have this information?

What's wrong with calling a fool a fool or a liar a liar?

What's wrong with suggesting that he finds his most basic of information from credible sources rather than internet wannabees?

What's wrong with suggesting he maybe looks at a franchise if he's struggling with starting from scratch?

Very often a good kick up the backside motivates people to actually do something, what' wrong with that?

What have I said that is incorrect?

 

[dave1928]

Agree with Dunerider that Toby1968 should move on as nothing constructive in what your saying. Just becoming anoying having a go rather than give feedback that he can think on.

Toby1968...OP did say.....
''I just really wanted to get peoples experiences''

and

''Is there anything ive overlooked?''

So calling OP a liar is very harsh words. Yes he did ask price of rent etc but the whole general question was to ask for experiences and anything obvious thats not been mentioned.


OP....as far as getting shop space in garden centres etc....never done this but if i was looking into this, i would first do some research to see if the garden centre does have internal shops run serperate and if so send them a suitable letter. Even if they dont have any shops, could still be an oportunity and word letter a bit different to suit.

 

[Toby1968]

Shop lease/rental £18,000 + £3,500 rates pa
Shop fitting (including all electrics/till etc) £15,000
Stocking £20,000
Staff (although this will be very minimal initially) £28,000 pa
Advertisment £1,200 pa
Misc (stuff like printing business cards, all little expenses). £900 pa

Is there anything ive overlooked? Business plans, financing, VAT, PAYE, market research, competition just for a start

Thanks In Advance!

There you go every questioned answered. Now how does that help you as you don't know where I am, what I do, what position in the town my shop is etc etc

THAT was my point - these basic and unique questions can't be answered on a forum

 

[littlebiz]

Codewriter, there's also music licences if you want to play music in shop, both PRS and PPL. street trading licence if you want to put anything outside the shop. Plus you have to have a trade waste contract - read the small print on these contracts very very carefully, and do not go near PHS watetech. And fire extinguishers. Health and safety risk assessments. All big fun.

 

[dave1928]

There you go every questioned answered. Now how does that help you as you don't know where I am, what I do, what position in the town my shop is etc etc

THAT was my point - these basic and unique questions can't be answered on a forum

Your picking on a very small part of OP question in my opinion. Why didnt you make that point at start if thats how you feel and cut all the other unessasary rubbish out. I agree with your point made that those cost mean nothing as every shop will have a different price for a number of reasons but everything else the OP asked is sensible for someone starting / planning a new business. Yes its basic but can easily miss something out.

 

[dave1928]

Codewriter, there's also music licences if you want to play music in shop, both PRS and PPL. street trading licence if you want to put anything outside the shop. Plus you have to have a trade waste contract - read the small print on these contracts very very carefully, and do not go near PHS watetech. And fire extinguishers. Health and safety risk assessments. All big fun.

Very good points there if needed.

Music not nessesary in pet shop i dont think so money saved there.

Waste.....i get the council to collect all cardboard as and when i need it out the way rather than weekly. Hardly get any other waste so take it home bin. Only have about 1 bin bag every 2-3 weeks. If more waste produced then obviously be better on proper contract for large bin. SHop around and keep eye on any price increases!! As said above...PHS were very bad for this and bad contract for my parents business.

Fire extinguishers are a must and need servicing evert year.
Look into health and saftey regarding everything...things like first aid box, accident book, layout, electric pat test etc are allrequired plus lots more!!

Look into all info on business rates as some get it half price or large discounts for small business if your only business. Something like that, but probably varies depending on area.

 

[littlebiz]

Dave1928, the problem for small shops that only produce small amounts of waste is that the council says it's illegal to take it home- they even told florist that they had to pay for the cuttings to be taken away (where they would go to landfill cos PHS don't process green stuff) rather than take home and compost them.

And the charges for small amounts rare extonionate - PHS had sneaked the prices up to £4.95 for one bag of waste by the time we escaped them.

 

[CodeWriter]

Maybe i phrased my original question wrong, when i said "what costs are involved" i was after the name of the cost (i.e. business rates/lease/shopfitting) rather than how much they actally cost individual people. I can find how much things cost myself, but how do I know what costs to find out in the first place?

Hence why i found kulture & Dave1928's posts very helpful, and i am grateful to them (and other people who have posted similar way/info).

Thanks to everyone who's helped, certainly given me alot to think about!

 

[voyage]

lol @ Toby1968 :|

 

[littlebiz]

Codewriter - sorry your first exploring here was made unpleasant. I must be off to bed now in case I break the posting curfew.

 

[dave1928]

Codewriter - sorry your first exploring here was made unpleasant. I must be off to bed now in case I break the posting curfew.

Oops...must mean I defo broke curfew as fast approaching midnight, on a Saturday as well.

 

[fashionaaa]

hi, i am new here. Maybe you should find products resources. hope you can start your shop fast and have a good business

 

[Toby1968]

Codewriter - sorry your first exploring here was made unpleasant. I must be off to bed now in case I break the posting curfew.

Do you know what, I gave an opinion followed by the advice that the OP might be better suited to a franchise as he is apparently lacking initiative.

I questioned the time of the post because, if you come to this forum often, then you will know how many late night posts are started under the influence of alcohol with the poster having no intention of starting a business.

My first response was a genuine reply, the OP came back at me saying I didn't have drive to succeed in business, had things handed to me on a plate and made personal remarks against me. Then the OP says he has the information already - that makes it (sorry no gender mentioned) confused, a liar or just plain stupid?

There was nothing unpleasant in my replies, and yes, if someone proves themselves to be a liar I have no problem with calling them such.

Go back, read my first post and then tell me what part of it wasn't valid or may have been unpleasant (presuming we are all adults here of course!)

 

[newfashiongroup]

why not consider open an online store?find a supplier cooperate with you.do drop shipping.

 

[CodeWriter]

why not consider open an online store?find a supplier cooperate with you.do drop shipping.

Good idea, but the market/industry i'm interested in is too saturated with those already! Especially some big brand names too. The idea is to eventually run the store with the online shop in-situ, so that all of the tills are linked to the online shop for stock counts etc. That way I wouldnt be solely relying on online trade. Plus the fact that I was a web designer so running an online shop would not be too difficult for me!

Littlebiz - I am a regular poster and ex-regular on many forums so have encountered many, erm, character types over the years. Nothing that I havent witnessed/been subjected to before!