Basic advice needed by complete novice

[bigmatt29]

Firstly... Hello all !

In a stark change to the large amount of techy business people on this site, I need help with a more modest and homely venture. I'm starting to write a BP with a view to opening a small tea room in Lincolnshire area and I think I need a little direction. I know what I want and where it's going to be - and I'm pretty focused on how I want this to work, but I seem to be drowning in a sea of BP software, Banks, and websites..

If you guys could offer me (as a complete novice) pearls of wisdom and golden nuggets of info that you wished you knew prior to starting your own business I would be very very grateful as it seems in the world of small businesses there's not that many friendly people out there willing to offer free and practical information.. I know I’m too cynical.

Many thanks in advance for your help

Matt

 

[Rob Holmes]

Hi Matt,

Welcome to UKBF.

A plan is crucial and I'm sure people will be able to give you some rock solid advice now you've invited them!

I look forward to chatting with you around the forums, feel free to post any specific questions you like - there are enough seasoned pro's here to help!

Rob

 

[webit]

I have seen some books about opening a cafe/tea shop in Borders that are worth having a look at)

Amazon:
http://www.amazon.co.uk/exec/obidos...9009/sr=1-1/ref=sr_1_10_1/202-7331732-5883017

Starting and Running a Cafe or Sandwich Bar: An Insider's Guide (Small Business Start-ups S.)
Stephen Miller

 

[bigmatt29]

Thanks, I've just ordered it.

p.s If you work for Amazon your sales technique is spot on..........

 

[Anonymous]

Hi Matt,

Welcome to the UKBF - I'm relatively new here also although I was a member some time ago. Anyway, here is a url that will take you to a business plan for an Internet cafe. You can tweak it to suit your own business venture.

http://www.bplans.co.uk/spv/3142/index.cfm?affiliate=pas

Also, if you want I will send you an excellent Excel spreadsheet for doing your cash flow projections. I've used this just recently and it works a treat.

Best of luck!

 

[Stephen]

Hi Matt

Sounds exciting - good luck with it.

Perhaps a useful way to think about your planning is to think about money - how you'll spend it and how you'll earn it. That's really what the majority of the planning comes down to!

Once you've got some rough idea of the amounts involved, then putting some detail behind it (like when you'll need to pay bills, when you'll receive money etc.) will help plan your cash flow. It's no use having money owing to you if you don't have cash in hand to pay screaming suppliers. (I guess though that most or all of your income will be cash based.)

Also, be aware employment issues can be a minefield if you intend to take anybody on (either part of full time). If you are looking to take somebody on, let me know (either by posting here or sending me a message) and I'd be happy to advise some basic things to consider.

Hope this helps.
Best wishes,
Steve

 

[bigmatt29]

That's geat. I've downloaded some other examples from allbusiness.com and these are proving very helpful too.

The excel sheets would be well recieved - cheers.

The next thing on the agenda is to find a recommended bank to deal with - any suggestions... I've heard Natwest/Barclays and Lloyds are the front runners.. ?

Matt

 

[Sibs]

Hello Matt

With regards to banks, I'm sure everyone can give some good and bad points about them all. I have been with Lloyds for the past year and a half, the main reason was that they were offering reduced bank charges. Anyway, I am now in the process of moving to Co-op because as a FSB member I can get free banking all the time. There is a thread about joining the FSB somewhere. That's also something worth thinking about.

Thanks
Sarah

 

[webit]

Abbey. Online service and free business banking for life. Thats who we went with and no problems (yet...)

 

[Deleted member 3454]

Abbey. Online service and free business banking for life. Thats who we went with and no problems (yet...)

Same here for me.

 

[DuaneJackson]

Hi Matt,

Welcome to the site.

I'm surprised that you've felt there aren't many friendly people out there in the small business community. I've found the exact opposite.

If you are under 30 you may want to check out the Prince's Trust for some help - they give good support aswell as low interest loans. Also, find out what your local business link is like. Having someone who knows their stuff help you to do your BP is invaluable.

Best of luck with everything, UKBF is a great site so stick around.

 

[winton50]

with regards to a bank I would suggest looking at their charges for cash.

some of the banks will give you 'free banking' on things like DDs and statement charges but will sting you if you want to bank small change which I imagine you will have a fair amount of

 

[Jayne]

Hi Matt,
I didn't bother with a professional business plan for the bank (Lloyds TSB). All the bank wanted to know is if you know what all the bills are to be paid each month, how you will advertise, what you will be selling and is there a market for it. They just want to know if you will be able to earn enough to pay them back and make a proffit. Right down all your ideas, list things you have reaserched. If you have the 25% deposit for a loan, the bank will 99% lend you the money. I have been in the food business for 12 yrs and Lloyds have been great, even though they charge you an arm and a leg. They usually do your first year in business free banking and you can actually talk to them at ease. Good luck with your new business.
Jayne

 

[webit]

I didn't bother with a professional business plan for the bank (Lloyds TSB). All the bank wanted to know is if you know what all the bills are to be paid each month, how you will advertise, what you will be selling and is there a market for it.

I think you should consider a plan anyway just to focus the mind on what you're going to do and how to do it.

 

[Cornish Steve]

I think you should consider a plan anyway just to focus the mind on what you're going to do and how to do it.

Just be aware, however, that things change on a daily basis for a small business. Don't become a slave to your plan. Build in flexibility.

Personally, I am not a big lover of business plans. We defined a core purpose and core values, and they influence most of our decisions. Strategy is vitally important. We also keep a keen eye on costs and cash flow. A business plan is a useful framework for assessing your cash flow.

As for sources of cash, we completely ignored the banks. As much as possible, we have funded our venture ourselves. In addition, I take shameless advantage of zero percent credit card offers.

Here's how it works for me. I accept an offer of a zero percent credit card. I look for offers of zero percent on balance transfers and new purchases. Usually, the offer is valid for about a year. When the current one expires at the end of the year, I shall accept another zero percent offer from a different company and transfer the balance at no cost. In this way, I obtain a reasonably large unsecured loan, with no interest, with no due date, and with minimal monthly payments.

I haven't lived in Britain for a while, so I don't know if the same offers are available. If they are, it's an option.

 

[JaneOwen]

You'll also need to consider regulatory compliance as you're going to be a food business. The Business Link site is helpful - you can get a list of licences and permits that you will need, personalised to your business at
http://www.businesslink.gov.uk/bdotg/action/lfilter?r.li=1075430181&r.l1=1073858805

There's another checklist that you would find helpful at
http://www.businesslink.gov.uk/bdotg/action/sujm?r.li=1075430180&r.l1=1073858805

They're all free to use as are the resources on my website - hit http://www.vitalproductsolutions.co.uk/advice.htm

Hope that helps

 

[Julie]

I think that a business plan is a good idea ... as long as you see it as a tool which is not just for the bank, but for you. A working tool for running your business day-to-day.

Putting together a business plan helps you think creatively about how you will solve such problems as, 'how will you tell people you exist?' (other than your passing trade); 'how will you tempt them in?'; 'how many people will you need to employ (if any)?'; 'how much will you pay them?'; 'how will you cover for your own holidays/days off sick?'; 'what are your running costs?'; 'how many meals/drinks, etc, do you need to sell in a week, a month, a year, to break even ... and then go into profit?'. Putting the plan together concentrates your mind and encourages you to consider all aspects of starting and running your business.

But it's only worth doing if you actually use the plan and don't just file it away somewhere!

Two big mistakes people make when starting a business are 1) to overestimate their sales and 2) underestimate their costs. It's actually harder than you think to get people to part with their money, day after day, year after year. A business plan will help you think about clever ways of doing that.

One more thing: You say, ''...there's not that many friendly people out there willing to offer free and practical information.'' In my experience, other business people are a fantastic source of help and advice so to keep benefiting from them I would keep visiting forums such as this, and also get out and meet other business people in your local area -- your Chamber of Commerce or FSB will know what is going on locally.

You will not only meet potential customers, but suppliers too. Plus you will build an invaluable support network. In my opinion, you can never truly understand all the challenges of running a business unless you have actually done it. The people you meet will understand the challenges.

One final thing. Try not to fall into the trap of avoiding competitors when you are out and about meeting other business people -- it's rare that you'll come across someone in direct competition to you who is a direct threat to you business ... and people who are doing something similar to you and have walked the path before you can be a superb resource.

Good luck with your new venture. Starting a business can be fun, and the beginning is a particularly special time.

Julie

PS We include lots of links for startup businesses on our website -- it might be worth taking a look (predictably enough, they are on the Links page)

 

[winton50]

I agree totaly about the business plan. I think It's vital that a small business has a plan but this should be used as a strategic tool rather than a bible.
Far more important is the cash flow forecast and P&L.
Get into the habit of doing a simple Cash flow at least every week and it will pay dividends I guarantee. Don't be put off if you've never done one they are really easy and not at all as complicated as we accountants would have you believe!

Stu