Help on starting a new business

[rkc86]

Good morning ladies & gentleman

This is my first post and I would like as much help as I can from fellow business people. Please forgive me if I have posted in the wrong section or ask silly questions. Right, where do I start?

Basically I want to open a retail shop, specifically a bathroom showroom open to the public in London.

Right now I have managed to find a good premises in a good location. I have offered my price and now awaiting their feedback from the agent through the landlord.

A bit of a background information on myself. I own a distribution business in Birmingham selling mainly bathroom taps to retailers. I now have access to all bathroom goods from a good source abroad, i.e. showers, pottery, baths etc, hence opening a retail shop in London. I have the necessary funds and the stock to start. My question is, where do I begin to plan.

I have ideas of refurbishment, plan layout, taxes, legal requirements, lease agreements, etc

Is there a step by step guide on where I should start first because I don't want to do everything at once. If there are advice from fellow business people, I will appreciate very much.

Please feel free to ask me any questions to help with my start-up business.

Regards, Richard.

 

[David@BusinessFood]

Hi Richard,

Not sure I understand. Sounds like you've done quite a lot of good planning already. I assume you have done some market research so you know there will be demand in the area of London you are aiming to setup your shop?

I live in London. There's a lot of people and a lot of competition. Good thing is, people like convenience down here i.e. trekking to Ikea for a cheap tap becomes not so cheap when it takes you two hours to get there and back

 

[rkc86]

Good afternoon David,

Sorry for not being clear.

I just want to know if there is a process for starting up the business. For example, do I start looking at refurbishment/quotes from builders first or setup my prices for my products or start recruitment first or get in touch with my solicitors?

As I do not know how long until the lease agreement is settled through the agent/landlord, I don't want to be sitting on my bum.

Regards.

 

[sprouting]

Hi Richard

We always advise our clients to have put in place a strategic business development plan ahead of doing anything. It will tell you if you actually have a business before you go for premises, etc., etc.

It's really about knowing everything about your business and the proposed environment you will operate it in including how much for fit-out, product prices etc., etc. As an example, if you go for a property and you can't afford to fit it out properly, then you are stuck with a lease.

Once you've done all that (your message is unclear whether that's all been done), then your solicitor should be aware of the premises and the outline proposed agreement, get quotes for the fit-out as quickly as possible and all the service costs to see if it fits with your business development plan and budget, then as the lease is being agreed, you can then determine whether the builders can fit-out accordingly with your timescale.

As fit-out is being done, you can then look at recruitment in preparation for opening.

. . . . And of course, all at the same time, undertaking marketing to let the local community and wider area know you are opening and what you offer so that your staff aren't sitting around waiting on customers to arrive.

So - there's a bit of free advice from Sprouting - want to know more or need assistance, why don't you say hello?

 

[David@BusinessFood]

Hi Richard,

I have not setup a shop before I'm afraid but I understand you don't want to be sitting around. You could write everything down that you think needs to be done (10 min job). Then see which items on your list are dependent on what your landlord comes back with. Cross those off the list for the time being and see what's left. I think researching prices would be a good idea.

Hope that helps, sorry to not be of more use.

 

[Billmccallum]

some useful project management tools here http://www.businessballs.com/project management templates.pdf

Common sense does have its place, you cant really get quotes for work until you're sure that you have got the premises as you cant be sure on the layout.

You can however look at product lines, sources, costs and get a start on setting retail prices.

As you already have a business you will probably have access to professional services, insurance etc, so can get quotes for cover for services the new business will require, even if you dont have the full details yet, you can still get some ballpark figures to help you with cashflow forecasting.

 

[Kirsty H]

Hi Richard,

My expertise is the leasing. If you go on the RICS website (I'm not allowed to put the link!) you should be able to download a pdf guide to "buying vs leasing premises". Ignore the buying bit and the leasing section gives you a bit more to think about.

You need to think about how long you want to commit to the premises, and if you want the flexibility of a break clause. Also, is the property in good condition and will the lease be full repairing - ie are you going to be responsible for all the repairs? If you are, there are ways to limit your exposure such as insisting on a Schedule of Condition. You don't want to take on a lease without it and then find 2 years later the roof needs replacing and you are liable for it - and although you can negotiate it to some extent then, you can protect yourself against it a whole lot more at the outset!

Also, have you thought about stamp duty and service charges? You have to pay stamp duty up front for the whole lease term, even if you exercise a break clause part way through. Also, if you have a shorter lease, then at lease renewal you have the potential for the rent to go down. It is very rare to have this ability on a rent review.

Many tenants get themselves into difficulty because they sign up to a lease without fully understanding what they are getting into - see other posts on this site! Don't make that mistake, and research fully.

Hope that helps, but let me know if you have more questions.

Regards

Kirsty

 

[Team Leith Training]

interesting thread this, but belongs in startup clinic i think