Opening a Shop

[VJT]

Hi,

Just wondered if anyone could help?

I've been trading online for 18 months selling vintage style homewares and in the last six months have seen a fair increase in business. It has now got to the point where I have out grown my spare room/attic and I have found a great retail unit for what I consider to be a good rental price.

So what do I need to know?

I have got quotes for insurance, rates, sourced stock and fittings, in process of comparing merchant accounts......

If anyone can offer any insight or advice about anything I might have missed it would be much appreciated!

Thanks
Vicky

 

[Urban Publications]

Hi Vicky

A little advice

Rates: If this is your first property/business then you should get new business rate relief....in other words half the rates you may have been quoted

Lease: Has the lease been signed yet, if not never pay what they ask, even if you feel embarassed about offering such a small amount, dont get invovled with long lease's always set a get out clause every 2-3years, push for the longest rent free period you can possibly get away with.

Legal:Ring a couple of solicitors, this maybe a figure you have not took into consideration. And its not a small figure when starting out.

What is the Estate agent asking for the rent?
How long has the property been empty?

 

[Chunky Beagle]

Is a shop really going to increase your sales.

You are obviously going along very well online and running the business successfully, however just because you open up a shop does not mean sales will increase.

With such a niche you are not going to really attract high street saturday shoppers, so again I'd think most of your sales would be online.

So you may still have 80% total sales online 20% from shop, however your shop costing you 20k a year say would not justify it.

Have you done any market research into if it's something people are interested in?

 

[GaryBennett(Telechief)]

Is a shop really going to increase your sales.

You are obviously going along very well online and running the business successfully, however just because you open up a shop does not mean sales will increase.

With such a niche you are not going to really attract high street saturday shoppers, so again I'd think most of your sales would be online.

So you may still have 80% total sales online 20% from shop, however your shop costing you 20k a year say would not justify it.

____________________

This is true, also I think you may be underestimating the price of fittings..

An idea would be to rent a local unit to store your stock, you then only have a monthly rental outlay, small compared to renting a shop. You may also be able to clear your house too.

You can then put money into marketing, getting people to your site, etc.

 

[VJT]

Thanks for your replies,

Luckily the property does qualify for the 50% relief - even better from Oct 1st till Sept 30th next year there are no rates to pay at all!

No lease on the property - its rented from the council, that however is causing me quite a headache, I don't think that they understand the concept of 'business'!!!!

Its something that I have thought long and hard about - opening a bricks and mortar business. If it wasn't for this particular premises I don't think that I would but it is located in a tourist attraction next to an art gallery and antiques centre so the location is ideal for the business iyswim.
If I didn't rent a retail unit I would still have to look at expanding in some other way as my house is bursting at the seams.......

Thanks,
Vicky

 

[Chunky Beagle]

Thanks for your replies,

Luckily the property does qualify for the 50% relief - even better from Oct 1st till Sept 30th next year there are no rates to pay at all!

No lease on the property - its rented from the council, that however is causing me quite a headache, I don't think that they understand the concept of 'business'!!!!

Its something that I have thought long and hard about - opening a bricks and mortar business. If it wasn't for this particular premises I don't think that I would but it is located in a tourist attraction next to an art gallery and antiques centre so the location is ideal for the business iyswim.
If I didn't rent a retail unit I would still have to look at expanding in some other way as my house is bursting at the seams.......

Thanks,
Vicky

Well you could always look into using a self storage facility. That would be alot cheaper than opening up a shop just for stock holding purposes.

 

[drounding]

Have you considered fulfilment companies to house the stock and forward your orders.

 

[VJT]

Hi,

Not looked at either of those options and will look into both if I decide not to go ahead with the shop. However there is part of me that says I have to give this shop a go and if I don't do it now I never will.

Vicky

 

[David Earle]

It's a nerve-wracking exercise and don't forget you'll need staff to cover when you want to take a holiday. Sounds like hiring a "unit" rather than a shop could be the way to go. Good luck with it, I wish you all the best. And congratulations on what you've achieved so far.

 

[winton50]

Just check what the council are expecting by way of advance rent and rent deposits. They may be fine but some landlords are getting a bit ambitious as to the amount of money they expect you to shell out in advance.

Also make sure you do a cash flow forecast and keep it up to date. It seems like a hassle but it makes a big difference to the way you see things. Whenever you find out a cost of something find out when/how it's paid. Often things get paid quarterly which makes a hole in your forecasts.

You also need to be thinking health and safety if you are going to be having employees so get your posters and stuff and make sure all your electrics are in order etc.

I'd echo what other posters have said. Understand why you are taking a shop. Will it increase sales or are you wanting it just as a storage/distribution location? In which case you may find it cheaper and more convenient to work from a unit. If a unit is empty and cheap then theres a reason.

Remember also that a shop is a tie unlike an onine business. You have to open up on time and close on time every day, otherwise your customers pretty quickly give up on you.

 

[VJT]

Thanks for all your replies, there's quite alot there to take in and consider.

Vicky