Interior design retail store - crazy idea?

[Angel Design]

I've just been made redundant from my day job as a marketing copywriter, along with my entire department. I was pondering what to do next on this gloomy January morning in London (cry? scream? panic?) and then I started feeling more idealistic. I've long harboured a dream of opening a little interior design boutique selling stylish homewares.

I've squashed this dream down inside me because it's not 'practical' and because I have zero savings, but now I can't stop thinking about it. People who come to my house always say it's beautiful, ask me where I bought pieces and tell me I have a great eye for design. I can happily spend hours browsing interior design shops and it would be living the dream to open my own.

Now, I know that two months pre-Brexit probably isn't the best time to think about a new business venture. I'm also dissuaded by the fact that I tried to start three businesses in my 20s and failed each time, thanks mainly to a lack of business sense, a lack of courage and an inability to balance the books.

But I'm 38 now and a bit more shrewd and world-weary. I'm under no illusions about the amount of work involved in starting your own business: I know it means 80-hour work weeks and running into problem after problem. However, I don't want to work for other people forever, and I wondered if you kind and funny strangers could give me some advice? I have three questions:

(1) How much, roughly, would I need to start a venture like a small interior design/homewares retail store? Would I be eligible for a start-up loan, and would they want to secure it on my house? (Having a small child, I would never agree to this.) If not, how could they be sure of making their money back - or is it just a risk they take?

(2) Would you advise me to start small and online first, then branch out into bricks-and-mortar retail if it's a success? If so, how would you manage this process? Would you put together a website and get a third party company to hold your stock and post it out for you? (Holding stock at home will compromise my home insurance policy.)

(3) Where the hell do I find decent wholesale suppliers to purchase gorgeous homewares from in small quantities?! Is there an under-wraps directory I don't know about? Please take pity on a small redundant writer and DM me this secret! You will have my eternal gratitude (well, my uneternal gratitude, given that I'm an atheist).

Thank you so much in advance for your help.

 

[Mark T Jones]

Being blunt; it's a fairly flakey sector with many operators effectively running hobby businesses.

Having said that, done well it can be profitable and successful. The huge differentiator will be the research and effort you put into researching the needs and buying criteria of your target market - it really isn't about stocking stuff that you think is pretty!

Taking on retail premises is a fairly serious task that involves a good understanding of leases and/or solid legal advice.

If you can find a way to build your business before going into premises you will be far better placed.

The Government Start Up Loan scheme isn't secured on property, but is a personal loan, so you will be liable come what may.

 

[Angel Design]

Thank you, you are a sweetheart. I'll do my research this time, start small and build up gradually. Are there any other resources you'd recommend other than UKBF?

 

[Mark T Jones]

As you are (I guess) unemployed; you might want to look at the NEA scheme - Job Centres can point you to it.

It's quite variable, but a well run one will give a a mentor and lots of general business guidance

 

[Angel Design]

That's a great idea and it looks as though I might be eligible for it. Thanks for all your help!

 

[Mr D]

1. Probably quite a bit of money. If I was opening a shop tomorrow I'd want at least a year's rent put by in savings to get established. Rent in your area may not be cheap and if your business folds you are on the hook for the rest of the outstanding lease potentially - which can be tens of thousands of pounds.

2. Yes that could work. Online can reach billions of people, local shop you reach thousands.
Holding stock - there are fulfilment companies that can do that for you. Storage companies that you can store stock in. Even rent a garage is done by a few. Cheap isn't always great though.

3. Trade fairs - there's the Spring Fair next month at the NEC, typically 20 halls in use. There's a ton of trade fairs all over, mostly London and Birmingham. Worth registering for the Spring (and Autumn) Fairs at the NEC to get the little black book of exhibitors. Knowing a company name means you can research them.
You can search who is exhibiting at a trade event even if you don't go.
I'm a big fan of seeing the items in person before ordering - some stuff can look great on a site and not so good in person.

There's also trade mags. Gift Focus and Gifts Today are perhaps relevant for you. And free.
There may be others you find useful, worth looking around.
The minimum orders can range from no minimum but some freight charge up to initial several grand which is probably a couple of pallets or more. Often pallet orders are free - spend a few grand and get free delivery...

 

[Sunny Days]

Check out the Home and Gift trade fayres in the Birmingham NEC and Harrogate International Centre for suppliers.

 

[Angel Design]

1. Probably quite a bit of money. If I was opening a shop tomorrow I'd want at least a year's rent put by in savings to get established. Rent in your area may not be cheap and if your business folds you are on the hook for the rest of the outstanding lease potentially - which can be tens of thousands of pounds.

2. Yes that could work. Online can reach billions of people, local shop you reach thousands.
Holding stock - there are fulfilment companies that can do that for you. Storage companies that you can store stock in. Even rent a garage is done by a few. Cheap isn't always great though.

3. Trade fairs - there's the Spring Fair next month at the NEC, typically 20 halls in use. There's a ton of trade fairs all over, mostly London and Birmingham. Worth registering for the Spring (and Autumn) Fairs at the NEC to get the little black book of exhibitors. Knowing a company name means you can research them.
You can search who is exhibiting at a trade event even if you don't go.
I'm a big fan of seeing the items in person before ordering - some stuff can look great on a site and not so good in person.

There's also trade mags. Gift Focus and Gifts Today are perhaps relevant for you. And free.
There may be others you find useful, worth looking around.
The minimum orders can range from no minimum but some freight charge up to initial several grand which is probably a couple of pallets or more. Often pallet orders are free - spend a few grand and get free delivery...

This is wonderfully helpful - thanks ever so much. I’m also going to look into designing my own products and having them manufactured in smallish quantities, as I’ve spent the day looking at cheap tat that’s simply woeful! Plus that would ensure no one will undercut me (or reduce the risk, at any rate). But I suspect that’s a whole new can of very wriggly worms...

 

[Angel Design]

Check out the Home and Gift trade fayres in the Birmingham NEC and Harrogate International Centre for suppliers.

Many thanks Sunny - much appreciated.

 

[Craftymetal]

I’m also starting/operate in this sector but slightly different as I’m a small manufacturer and I sell online, locally also wholesale as well

As you’ve seen there’s tonnes of dropshippers bringing in cheap tat that’s not fit but seems to sell. There’s several very high end retailers selling own designs which are manufactured to high standards abroad with very clever marketing and then there’s Etsy where stuff is sold at either prices which are far too cheap for what it is or really silly markup.

To rent a shop you really need the right area firstly need to decide which end of the above spectrum you are going in at which will then determine your approach and customer base and if the area you are planning works.

The other point is different is good I sell to local shops who are constantly at trade shows etc just to find that one weird item that can go in a window to make people stop and go into the shop.

I might be able to help if you want items manufacturing depending what it is but this is quite complex and a lot of things to consider.

 

[Mr D]

This is wonderfully helpful - thanks ever so much. I’m also going to look into designing my own products and having them manufactured in smallish quantities, as I’ve spent the day looking at cheap tat that’s simply woeful! Plus that would ensure no one will undercut me (or reduce the risk, at any rate). But I suspect that’s a whole new can of very wriggly worms...

It is indeed a lot more worms.
However can also be fun.

 

[Awinner2]

This is wonderfully helpful - thanks ever so much. I’m also going to look into designing my own products and having them manufactured in smallish quantities, as I’ve spent the day looking at cheap tat that’s simply woeful! Plus that would ensure no one will undercut me (or reduce the risk, at any rate). But I suspect that’s a whole new can of very wriggly worms...

When you have completed your homework then decide which is the best way forward. Do not try both retailing and designing at the same time as although you can work your socks off (and will) there are time limits on all of us. Decide and go on with your best choice. Wish you good fortune on whatever you decide.

 

[Angel Design]

You guys are all awesome. Thanks a million. Lots to think on!

 

[Ashley_Price]

1. Probably quite a bit of money. If I was opening a shop tomorrow I'd want at least a year's rent put by in savings to get established. Rent in your area may not be cheap and if your business folds you are on the hook for the rest of the outstanding lease potentially - which can be tens of thousands of pounds.

This is SUCH IMPORTANT ADVICE.

Over the years on this forum, we have had so many people who opened a shop and expected it to do so well that the sales from month one would pay all the outgoings in month two... and of course this didn't happen and by month three they were gone.

Having a shop is a huge undertaking, with a lot of outgoings, and you have to plan that in the first three to six months you may sell very little, so don't just think about having the year's rent put by, but money for all the other outgoings (stock, staff wages, utilities, advertising, etc.).

 

[Steve12]

Taking on retail premises is a fairly serious task that involves a good understanding of leases and/or solid legal advice. A retail store is a space where you lease for the selling of goods to consumers. So, it is very important to choose a store layout that fits your business.
When it comes to business, retailers have one overall goal, to sell merchandise. That's why they focus on sales floor space, adequate parking for customers, and a whole image that draws in customers.