Changing a business completely

[Kooky1976]

Well, after 5 months of very hard work and the realisation that the previous owner of my business almost certainly had her books tampered with to improve the saleability, I'm looking at scrapping my entire business model and starting afresh.

Essentially, I own a sandwich bar / coffee shop (A1 use) with a 5.5 year lease (with a break option in 2.5 years). I've made one person redundant and can see that if I continue doing what I've been doing (having exhausted all options for improvement), I will be closing the shutters for good in March next year.

So....

....I can either resign myself to this, keep doing what I'm doing and possily, just possibly things might pick up - or maybe they'd just continue and the above will happen.

Or....

... I can take advantage of my lease rather than see it as a prison sentence and change the business to something completely different. The shop has been a cafe for 4 years. Before that I understand it was a Funeral Directors but the opening of a large crematorium nearby saw that business bust.

The main reason my business is not working is lack of footfall. I'm not in a prime location. The school opposite has imposed a ban on children coming out at lunchtime which has knocked my till by 15%. I'm doing deliveries and weekend childrens parties but it's not enough for it to be worthwhile.

So I'm writing here to ask if you guys have any thoughts as to what I could do. I've been thinking about a variety of options from pet shops to tanning salons. I have a hair salon next door, with a boiler show room and a Vets next to that. We're about 300 yeards from the shopping centre and most of my passing trade are in vehicles as opposed to on foot.

A bit depressing I know, but I need to act now before I have no option other than to close forever.

Any thoughts would be appreciated.

 

[Doodle-Noodle]

You poor thing, how awful for you. But at least you've recognised that you have major problem looming and that in itself will hopefully give you some prospect of turning things around.

So what to do? Assuming any change of user won't be an issue then the pet shop idea could be a good one as you have a Vet nearby, provided of course you have lots of people in the area who actually have pets AND the vet doesn't already sell lots of supplies to its customers.

Wht interests you though? Do you have a passion? A hobby? Is there something that you have always wanted to do that you could turn into a business idea? How much space do you have? Enough for a grooming parlour (perhaps run as a concession to someone already qualified/with their own cliens) to go with your pet shop?

Will converting from a food outlet to retail be costly? What is really lacking in your area? Loads of considerations ........... very tricky situation.

 

[GeorgeStrait]

Do you know what, I know a lot of retailers, including myself, who have to change what they sell form time to time. It's not a failure it's just moving with the current situation and keeping a income coming in.

Think about it before rushing in, but if your slightly "out of the way" as you suggest, then you need to be a "destination" shop, what that might be will depend on your locality.

So basically don't feel bad about it, just re-asses and move on to the next chapter - that's when the fun starts

Remember - they joy of being independent is just that, independents and the ability to change.

 

[emmylou74]

I am about to open my very first shop - and totally plan to if it does not work change what I'm selling.

I think its far worse to keep going when you know its not going to go anywhere and totally run it into the ground. Best to change while you can.

 

[Philip Hoyle]

You say you're on a road, but what is the parking situation? Is it easy/free for people to park or do they have to drive around a few times or give in and use a car park?

If parking is free and easy, you may still be able to make something of it by expanding your takeaway trade, i.e. doing bacon and sausage butties, pies, etc., for workmen, tradesmen etc.

There is such a shop close to my office, and literally, they get dozens of tradesmen driving up throughout the morning for their mid-morning snack, comprising builders, decorators, etc - basically all the trades who happen to be working locally or passing by. It's taken years to build up, but it's now well known. At lunchtime, there are often police cars or ambulances who've come for their sandwich or salad box. BUT, it's all down to free & easy parking outside. If you've got parking problems, then obviously it's not a valid option.

 

[TotallySport]

I know this isn't what you want to hear but on the restuarant and hostel inspector, people simply don't go because the quality of product isn't good enough, people will go out of their way for a decent product.

What research have you done to find out why people aren't coming in your door? And what makes you think changing will change that?

 

[gr9ce]

you say you have a school opposite? What happens after school? what ages are the children? (i.e. do a lot of parents arrive to drop off/pick up?)

Do children take packed lunches to school? could you provide a preordered packed lunch service collected on the way into school to help out hard pressed parents with no time to hunt around for the 'required' nutritional options? Distribute leaflets for nutritional, affordable lunch options tailored to individual tastes ?

Talk with the school re a lunchbag service where kids can collect prepaid lunches that have been kept chilled rather than festering in a school bag? or you deliver to the school at lunchtime?

Offer an end of day 'high tea' bag or snack items to bridge the gap before evening meal.

Sell ice creams and smoothies?

How large are your premises? would there be call for an internet cafe aspect?

A school provides a lot of footfall surely and pester power?

 

[AndyBlue]

Echoing other posts on here I would exhaust the options you have with your current offering as you clearly have a level of trade but just not enough. So are your prices right, is your product offering right, what about your marketing ?

Could you offer other services within current offering so you are not chnging direction completely ? Do you utilise all space in your premises, you say you have a hair salon next door - do you have space to put the sunbed in without completely changing the whole shop - in back room for instance ?

 

[mhall]

It seems to me that two businesses thriving are Tattoo Parlours and Teeth Whitening shops- especially in the poorer areas. Seems they can afford twenty fags, Diamond White, tattoo and teeth whitening but not much else.

Oh, and cheap boxing lessons.

Even the poor need pleasure

 

[internetspaceships]

It seems to me that two businesses thriving are Tattoo Parlours and Teeth Whitening shops- especially in the poorer areas. Seems they can afford twenty fags, Diamond White, tattoo and teeth whitening but not much else.

Oh, and cheap boxing lessons.

Even the poor need pleasure

~You forgot the latest mobile phones and the largest TVs...

 

[gr9ce]

'You forgot the latest mobile phones and the largest TVs'

Seems in London those are being obtained for free ...

 

[mhall]

~You forgot the latest mobile phones and the largest TVs...

A very sad world we live in

 

[Ihaveadream]

Hi
Sorry things not working out as you had hoped. I'd open a sweet shop if I were opposite a school. I used to save my dinner money every day and spend it on sweets when I left school... Mind I dont know if they do school dinners with 'real' money anymore or if they are pre-paid??
Other idea would be something to do with pets if there is a vets near by.

Hope things work out and try to use the situation you find yourself in as an opportunity.

s

 

[Philip Hoyle]

I'd open a sweet shop if I were opposite a school.

Trouble is that you'd have a shop full between 8.30 and 9 and then between 3.30 and 4, where you'd need lots of staff, tills and scales to cope with the rush (and to keep watch to avoid shoplifting). Then you'd be virtually dead for the rest of the time. There's a limit to how many customers you can serve and the average spend will be very low, so you could end up with not making enough turnover to cover your costs.

Now if it was another kind of shop that appeals to lots of people throughout the day, that also sold kiddies sweets at school start/finish, then it starts to look viable.

 

[warnie]

Trouble is that you'd have a shop full between 8.30 and 9 and then between 3.30 and 4, where you'd need lots of staff, tills and scales to cope with the rush (and to keep watch to avoid shoplifting). Then you'd be virtually dead for the rest of the time. There's a limit to how many customers you can serve and the average spend will be very low, so you could end up with not making enough turnover to cover your costs.

Now if it was another kind of shop that appeals to lots of people throughout the day, that also sold kiddies sweets at school start/finish, then it starts to look viable.

Wise words, If we were just a sweet shop we may just about get by.

Instead we sell greeting Cards, Gifts, Milkshakes, Tea coffee, Icecream plus coming soon Party Banners, baloons etc.

It's hard in this climate to just specialise in one area, there's just not enough people around spending money.

 

[GeorgeStrait]

Agree with Warnie & Philip, we started out 100% sweets and these are now about 70% of our sales with other items being added/changed seasonally and as when we feel required.

If your in a tourist area you will fare better than a clone town though, and August is a very busy month for us (not busier than some other shops though!!!) thanks to the tourist trade.

Don't build your business round school kids.

 

[Tax-UK]

The good thing is that you have realized on time your current trade position and are ready to do something about it (you would be surprised how many businesses are on denial and keep blaming someone else).

I would suggest, after researching your local community, to visit other areas for inspiration on types of businesses that appear to be successful.

 

[Chris Ashdown]

How about asking the head master if he would object if the parents brought fresh smoothies from you either each morning or once a week and you delivered children's size smoothies with their names on for the lunch time break, and you take a few trays of them over to the cook just before lunch hour and are responsible for any problems. serve in plastic or cardboard cups with tops on

Make good espresso coffee and maybe a different roast for sandwiches every weekday

 

[Pertinax]

Thanks for your comments. Spot on.

 

[bdw]

Have you considered spreading your wings into a wider catering service? Many clubs, pubs, etc. use caterers to supply buffets and sandwiches for functions, etc. You could contact all the local clubs and pubs in your area offering your catering service.

You could also advertise this prominently in your window so that the catering business would become known to your existing customers and passers by. The preparation work for catering could take place during your quieter times. Quite importantly you would also be doing something with which you are already familiar.

There is reasonable money to be made in this with prices of £3 to £5 per head upwards being typical. This would mean that you could also make fuller use of the premises during your lease. You could even advertise the catering business separately through a website, etc.

.

 

[movehut]

When you have decided which business idea you want to pursue, I would check with the Council if you need permission to change how the property is used.

We produced a blog on our website which can provide you with some information: 'Is Planning Permission Needed to Change How a Commercial Properties is Used?'

I cannot post links, but if you go to move.co.uk/blog?p=3304 you should find it.

 

[Kooky1976]

When you have decided which business idea you want to pursue, I would check with the Council if you need permission to change how the property is used.

We produced a blog on our website which can provide you with some information: 'Is Planning Permission Needed to Change How a Commercial Properties is Used?'

I cannot post links, but if you go to move.co.uk/blog?p=3304 you should find it.

Hi and thanks everyone for your positive suggestions.

The business has gradually worsened to the point that turnover isn't even covering the wage bill (which is only £188 per week). Even if things return to normal once the kids go back to school, I can't sustain this.

So...

I've decided to research my third love in life (after my girlfriend and children ;-)). I'm considering converting the shop into a Tattoo Parlour. I will supplement this with body piercing, tattoo removal and teeth whitening.

I'm in contact with a dear friend of mine whos been tattooing for 20 years to gather advice and will be contacting the local council / environmental health for advice also.

Having done some calculations, and then reducing my figures by 75% for worst case sake, I figure I can still finish each month with a net profit of £615 per month after my mortgage is paid. This doesn't sound much but at the moment I'm not even covering my mortgage.

Fingers crossed this venture will turn this around

 

[Y.Gunay]

if your place is big enough consider play centre for children.

 

[internetspaceships]

if your place is big enough consider play centre for children.

With free piercings for under tens perhaps?

 

[internetspaceships]

Hi and thanks everyone for your positive suggestions.

The business has gradually worsened to the point that turnover isn't even covering the wage bill (which is only £188 per week). Even if things return to normal once the kids go back to school, I can't sustain this.

So...

I've decided to research my third love in life (after my girlfriend and children ;-)). I'm considering converting the shop into a Tattoo Parlour. I will supplement this with body piercing, tattoo removal and teeth whitening.

I'm in contact with a dear friend of mine whos been tattooing for 20 years to gather advice and will be contacting the local council / environmental health for advice also.

Having done some calculations, and then reducing my figures by 75% for worst case sake, I figure I can still finish each month with a net profit of £615 per month after my mortgage is paid. This doesn't sound much but at the moment I'm not even covering my mortgage.

Fingers crossed this venture will turn this around

Get the right artist to come and work for you and you will make a fortune. Ever noticed that the poor always have enough money for a new "tat?"

 

[Y.Gunay]

With free piercings for under tens perhaps?

i did mean a new business idea, your located near a school and a shopping centre. most parents would love to leave there kids in a play centre while they are shopping.

you thought a play centre inside a tattoo shop smart thinking well done.:|:|