Advice on a giftware business...

[Joseph21]

Hello!

Since 2008 I've wanted to run a business and have gone through many ideas but the one that sticks to mind most is a giftware business, catering to tourists.

Probably wise to give some background information...

I am currently employed in tourism and have worked in a store selling souvenirs to tourists (albeit at christmas!) and enjoy working with customers. I studied business studies for 4 years at school and went on to complete a tourism management diploma at university. I participated in a successful PR campaign as part of my university course.

So about the business...

• Target Market: 18 - 25 Year Old's
• Unique Selling Point(s): Design, User intuitiveness and most imporantly customer service
• Location: Ideally York (England) as I'm familiar with the area and it's a popular tourist destination
• Types of products sold: Kitchenware (mugs and cups), Homeware (cushions etc.), Emphasis on smaller products in regards to foreign tourists taking products home (i experienced this a few times whilst working in the shop)
• Shop Design: Rustic feel, shabby chic esque

What i'd like to know...

• As the business is (in some respects) a concept, i have limited funds to go by (plus I've just left university but unlike some didn't spend all my loan!) so would it be more suitable to run an online e-commerce shop or a traditional bricks and mortar shop?)
• Secondly, is it a feasible idea? Of course, York has a number of gift shops as present but they are most orientated towards the cheaper end of the market, whereas my store would be mid priced.

(Draft) Finances
This is what (from my experience and a lot of reading), it will cost to run the bricks and mortar store. Obviously overheads will be different for an e-commerce store.

• Stock: £15,000
• Rent: £20,000 per annum
• Store fixtures and fittings: £7,500

The key thing to note is I would like to see if my idea is feasible or I should give it up as a bad job (if you get what i mean!)

Thanks for reading and i look forward to hearing from you

 

[Root 66 Woodshop]

(Draft) Finances
This is what (from my experience and a lot of reading), it will cost to run the bricks and mortar store. Obviously overheads will be different for an e-commerce store.

• Stock: £15,000
• Rent: £20,000 per annum
• Store fixtures and fittings: £7,500
• Business Rates
• Water
• Gas
• Electric
• Security
• Insurance
• Telephone/Data line
• Card Machine Costs
• Wages/Salary

There's more to add here... the list can seem endless...

 

[billmccallum1957]

We run two shops.

rent & rates 28,000
wage costs 54,000
expenses 25,000

turnover 131,000
profit 18,000

BUT, we sell donated goods, so we don't pay out for stock.

 

[mhall]

The gift industry is massive and full of competitors who will stab you in the back. If you are going for a B&M shop your first job is to make sure you have exclusivity from your suppliers- it is pointless selling the same as everyone else as you just end up in a price war. I cannot count the number of our competitors who have approached our suppliers over the years and we have ditched many suppliers who supplied others. Suppliers will stab you in the back faster than your competitors if they can, especially those using self employed agents who only really care about their commission. (we had one, who after promising exclusivity and gaining an order left one of our shops and literally went next door to give them the same pitch). Thankfully we insist on a contract with our suppliers and return every scrap of stock if they break it. Only once you have decided exactly what you want to sell (based on your research of your potential customers) should you move forward to actually looking for a shop/website and confirming with suppliers. See countless threads on here regarding negotiating a lease. Whatever you do, take your time - good business can always wait.

 

[Deleted member 59730]

Good luck with your idea. My experience as a supplier to gift shops is that the quality shops do better than the bottom end of the market. Of course it all depends on location but I've known quality shops squeezed in with tat shops do very well. I think your figure for stock is very low. There is a strong market for made in England products.

 

[Atanaha Event Center]

(Draft) Finances
This is what (from my experience and a lot of reading), it will cost to run the bricks and mortar store. Obviously overheads will be different for an e-commerce store.

• Stock: £15,000
• Rent: £20,000 per annum
• Store fixtures and fittings: £7,500
• Business Rates
• Water
• Gas
• Electric
• Security
• Insurance
• Telephone/Data line
• Card Machine Costs
• Wages/Salary

There's more to add here... the list can seem endless...

 

[Joseph21]

Thanks everyone for the responses, more than expected!

Good luck with your idea. My experience as a supplier to gift shops is that the quality shops do better than the bottom end of the market. Of course it all depends on location but I've known quality shops squeezed in with tat shops do very well. I think your figure for stock is very low. There is a strong market for made in England products.

Thank you. I'll be concentrating more on the quality side of the market rather than the cheaper shops. Location is obviously paramount, especially in the giftware industry. In regards to the figure for stock, i suppose the higher the quality, the higher the price you pay.

 

[Mr D]

The autumn fair at the NEC is early next month. Worth registering for and going to in order to see stock, get minimum order quantities, exchange business cards with suppliers and find out what they have.
And some seminars / talks by experts.

 

[Joseph21]

My only real concern is my age. I've only just finished being a teenager and I'm concerned that setting up a business at this moment is a too high risk situation. Sure, their are thousands of young entrepreneurs but they all have finance in place (something i'm still working on!) I'm really passionate about setting up a business and i have the experience and qualifications but find it a bit awkward discussing it with family and friends because i think i'm too young.

Maybe i should consider running it from a market stall (which i have experience of) or online first. Am i thinking a bit too far ahead?

Sorry if this thread took a bit of a turn

 

[Mr D]

My only real concern is my age. I've only just finished being a teenager and I'm concerned that setting up a business at this moment is a too high risk situation. Sure, their are thousands of young entrepreneurs but they all have finance in place (something i'm still working on!) I'm really passionate about setting up a business and i have the experience and qualifications but find it a bit awkward discussing it with family and friends because i think i'm too young.

Maybe i should consider running it from a market stall (which i have experience of) or online first. Am i thinking a bit too far ahead?

Sorry if this thread took a bit of a turn

Lots of people start with very little. The few that start with finance will in some cases be ahead of themselves on that part and behind on other parts.
Not that many business problems that money can solve on it's own and does lead some to jump straight in when better for them to start slow and learn as they go.
Lost count of the number of people taking incredible (to me) risks by starting with a load of money.

You could try market stall and online at the same time. So long as you keep on top of the stock.

 

[Hwgga]

Hi Joseph, I am in the process of opening a similar shop to you however in rural Wales. I would second the advice to attend Autumn Fair next month, it will give you a really good oversight into the costs of stocking and the all important minimum order quantities.

Even if you go online only, you will need storage facilities and quite possibly office space attached so weigh up the cost versus retail and the added bonus of tourist trade which you wouldn't have with e-commerce only.

I personally don't think your age should matter, there are many a teen that have launched very successful businesses.