How to use money

[japancool]

I've got a problem, and that is, I've run out of room.

I have no more space for stock. I run my business from home, and I've expanded to the point where I've just got nowhere else to put it. During the pandemic, supplies were difficult to get hold of, so it was less of a problem, but supply is now easing.

I can't spend money on any more stock, so the cash is just sitting there in the company account doing nothing, which is a waste.

I could move to a premises, but there's nothing suitable that I can find at the right price. Since I don't drive, and am disabled, it limits what I can do.

So... options seem to be, use a fulfilment company. Problem with that is, our products are quite large for their price, and I have small quantities of lots of different items. It could get expensive, but I may have no choice.

Another option I've thought about is setting up a parallel operation in Europe. I would definitely have to use a fulfilment company then, but it would open up a new market (it's not cost effective to ship from the UK). Ireland seems like a sensible option, but given that the main market would be in northern Europe, perhaps it would make more sense to set up on the mainland.

I can order a café au lait and ask where the Eiffel Tower is in French, I doubt that is sufficient though. Not sure I fancy the idea of dealing with French bureaucracy.

Dunno, just casting around for ideas.

 

[Mr D]

Fulfilment companies can work for your faster selling stock. Don't have to send it all in, just some of it. The ones we have used most have been amazon and royal mail (amazon is great for amazon sales, more expensive for ebay sales).
Some at least can deal with foreign sales too.

 

[JEREMY HAWKE]

You never mentioned all this before

How much business and potential business do you see in the EU .
You could also hire a container at a self storage for cheap sucure storage here . All that stock at home must be driving you nuts .

 

[MarkOnline]

You never mentioned all this before

How much business and potential business do you see in the EU .
You could also hire a container at a self storage for cheap sucure storage here . All that stock at home must be driving you nuts .

Just goes to show how things can change virtually overnight. How about opening the retail outlet you talked about a few months ago, or is that idea no longer profitable enough? Intercontinental is the way to go, a bit like Pontins.

Or you could move to a bigger house, maybe one with a double garage a couple of extra rooms and a through lounge for xmas trading period.

 

[WaveJumper]

Yes trying to find storage is very difficult large or small seem to be very elusive. Good idea on the larger house allowing for big garage or building a "large shed". Retail unit is worth thinking about especially if you could go down the pop up route ie find some empty shops in your area and offer to pay just the business rates. You will have a temp lease but it will allow you to dip your toes into the retail world on the high street. You then get your storage and the added business that comes in the front door, hopefully enough to cover your small expansion.

 

[MBE2017]

Due to your disability, if you have the room maybe consider a garden shed or garden room, all tax deductible, convert a garage etc.

 

[japancool]

Yes trying to find storage is very difficult large or small seem to be very elusive. Good idea on the larger house allowing for big garage or building a "large shed". Retail unit is worth thinking about especially if you could go down the pop up route ie find some empty shops in your area and offer to pay just the business rates. You will have a temp lease but it will allow you to dip your toes into the retail world on the high street. You then get your storage and the added business that comes in the front door, hopefully enough to cover your small expansion.

Hmm, that's an interesting idea. Plenty of empty shops on the high street right now.

 

[japancool]

You never mentioned all this before

How much business and potential business do you see in the EU .
You could also hire a container at a self storage for cheap sucure storage here . All that stock at home must be driving you nuts .

The last time I did it, only around 5% of our business came from Europe, but I never actively sold to European customers. Plus, shipping from the UK was quite expensive.

I'd have one main competitor in Europe, and they're based in Ireland, so setting up on the continent should make shipping a bit cheaper.

 

[AllUpHere]

Invest in your marketing strategy. Turn the stock over quicker. Make more money. Rinse and repeat.

 

[Financial-Modeller]

If you could hold more stock, would you make more profit?

If so, consider using that profit to pay for your basement / loft conversion etc, or the other suggestions to acquire more space locally.

If not, perhaps try to adjust your product range to stock more of the most profitable smallest items, and fewer of the least profitable.

Using a European facility depends partially on how hands-on you want to be. Whether you outsource to a logistics company, travel weekly to your warehouse near a convenient airport, or combine with your ski-chalet or villa on the med, will each provide a range of benefits and headaches!

 

[japancool]

If you could hold more stock, would you make more profit?

Oh yes, definitely.

If so, consider using that profit to pay for your basement / loft conversion etc, or the other suggestions to acquire more space locally.

I'm a tenant, so that's not really doable, but a shed could be an option. Anyway, with only one foot, last thing I want to be doing is traipsing up and down stairs.

If not, perhaps try to adjust your product range to stock more of the most profitable smallest items, and fewer of the least profitable.

Bizarrely, in this industry, profit is approximately proportional to size - the smaller items are half the size of the medium items and return half the profit!

Using a European facility depends partially on how hands-on you want to be. Whether you outsource to a logistics company, travel weekly to your warehouse near a convenient airport, or combine with your ski-chalet or villa on the med, will each provide a range of benefits and headaches!

Now that's a thought. I'm thinking northern Italy is nice this time of year!

 

[MarkOnline]

Now that's a thought. I'm thinking northern Italy is nice this time of year!

If I were you Id concentrate on building a shed first, the chalet/villa can wait till the shed is full of stock. Judging by your recent meteoric change in circumstances, you shouldnt have to wait too long.

 

[Lawson@CBF]

Hi,

European shipping is a minefield at present. With both sides, UK and Europe trying to bed in new processes, paperwork requirements and tariffs.

We have had to locate a European Partner to process our clients orders smoother than the Royal Mail and Couriers can cost effectively. But, books are not the most complex items to be shipping and with the right UN numbers and Commodity codes, the goods travelling across borders should be reasonably simple.

We all have to bow to The Amazon marketplace as that's where the customers are.

 

[japancool]

We all have to bow to The Amazon marketplace as that's where the customers are.

We don't sell via Amazon, or eBay.

 

[japancool]

So I've decided to take @AllUpHere's advice.

I've increased my marketing budget by a factor of 15 (which isn't saying much, considering where it was to start with), and am initially putting the money into a couple of promotions to increase my audience and conversion rates.

Not sure if that counts as marketing though. It does in my parlance.

 

[MikeJ]

Another option I've thought about is setting up a parallel operation in Europe. I would definitely have to use a fulfilment company then, but it would open up a new market (it's not cost effective to ship from the UK). Ireland seems like a sensible option, but given that the main market would be in northern Europe, perhaps it would make more sense to set up on the mainland.

I can order a café au lait and ask where the Eiffel Tower is in French, I doubt that is sufficient though. Not sure I fancy the idea of dealing with French bureaucracy.

If you go down this route, look at The Netherlands. Far easier to deal with than the French, pretty much all speak English, good public transport system and don't go on strike every 5 minutes.

 

[MarcelvW]

And a lot lower taxes than the French. : )

 

[Lucan Unlordly]

There was a documentary on TV a couple of years ago which featured small businesses that had set up inside storage units like Big Yellow Storage. All racked out for children's clothing in one case.
It gave them the option to start small, move to a bigger facility in house, to have storage in other areas.
With access to a parcel courier service, forklift and delivery acceptance on your behalf. Rental periods from 2 weeks to 1 year and knowing exactly what you are paying - which may be the drawback . Might be worth looking into?

 

[japancool]

There was a documentary on TV a couple of years ago which featured small businesses that had set up inside storage units like Big Yellow Storage. All racked out for children's clothing in one case.
It gave them the option to start small, move to a bigger facility in house, to have storage in other areas.
With access to a parcel courier service, forklift and delivery acceptance on your behalf. Rental periods from 2 weeks to 1 year and knowing exactly what you are paying - which may be the drawback . Might be worth looking into?

A fulfilment company seems like a lot less hassle.

 

[Lucan Unlordly]

A fulfilment company seems like a lot less hassle.

True, but a storage unit would be less hassle than a shed or shop