Opening a small convenience store

[George N.]

I would like to open a small convenience store in my town, near a busy road. This will be my first business ever. Can someone answer few of my questions please?

Who do i have to see for licensing advice? Can an hour with a solicitor be helpful?
For the start its me who will be in the shop doing 12 hour days.
Can someone explain what kind of insurance i need? Do i need Public liability insurance? Product liability insurance? Employers’ liability insurance? Equipment cover?
Stock will be around 5000£.
I also like to sell tobacco and alcohol, do i need a premises licence or a personal licence?
Can i just open the shop, start selling everything apart from alcohol, and when the licence sorted add tobacco and alcohol to the stock as well?
How can i take card payments?
And what kind of lease agreement you guys recommend? Only for 1 years to see if the shop runs well, and get it extended after?

Thanks ahead if anyone answers!!!

 

[Mr D]

Leasing - the landlord may well have their own ideas of lease length. Just bear in mind you (or the business) are liable for the rent even if you shut down. Until the lease ends (which can be years away) or a break clause is reached (often partway through the lease).
Get a solicitor to check the lease before signing. Sometimes hidden hand grenades are built in - such as you responsible for repairs.




12 hour days a hard. What happens when you are ill? What happens when you need the loo? What happens when you need to restock and you also need to deal with customers?
Get at least a couple of part timers in too.
12 hour days plus cleaning plus banking plus restocking. Get the flu and the business could be shut for a week. Break a leg and be in traction - several weeks.
Exhaustion does not help you.

 

[Onthebrightside]

You will need public liability insurance - for things like a wet slippery floor that customers may fall over etc. Most companies that cover that type of insurance will also do stock insurance and shop front insurance (always handy in case your front window gets broken by vandals or gets damaged by people trying to break in etc.

You need to contact the local council in terms of gaining an alcohol licence.

When I opened my shop I went with Barclaycard Business for card payments, they were a high rate in the first year but in the second year and onwards I played one off against the other. Barclaycard always gave a better deal. I am sure though that some of the others on here might be able to point you towards a better first time deal.

I was lucky and managed to get a short term 2 year lease - I don't think you are going to get a 1 year lease - after that I managed to negotiate 4 year lease agreements. A long term lease (of say 12 years) sounds good but if you fall ill or things don't work out etc. you have a 12 year lease hanging over you which you have to pay. In addition if you have a lease on a property you remain liable for the business rates - remember that an empty shop will attract full business rates, so you are then trying to sell the remaining term of the lease onto someone else. As already stated - ALWAYS get a solicitor to look over the paperwork for the lease to make sure there are no nasty clauses hidden in the small print.

Good luck.

 

[Lisa Thomas]

You will need professional advice from a commercial Solicitor and a good accountant.

If you aim to employ staff you should get advice from a HR advisor.

You will want to produce a business plan and cashflow forecasts to ensure the business will be viable.

To take card payments you will need to speak to either the bank or a provider - Speak To Joedy Lawrence here: https://www.smartareductions.co.uk/

You will need funding and might have to give personal guarantees to lenders and suppliers.

You will need to get your tax registrations ready - the accountant can help with this.

You will need to decide what entity to trade as - a sole trader or Limited Company each comes with its own risks and different tax implications and legal requirements.

Speak to other business owners with similar shops for advice on their experiences.

 

[George N.]

Thanks very much for the replies!!!

 

[Express_Couriers]

As someone who just got out of the convenience store game I wouldn't really recommend it, you really have to push high volumes with small margins to make a decent living out of it. It CAN work if you are the only shop about, but as soon as a Tesco Express or Sainsbury's Local open up around the corner then you are pretty much screwed.

The margins are getting tighter and customers are becoming more fussy on price (especially with the price wars you see between supermarkets and even Amazon), don't get me wrong it can work but with £5,000 worth of stock you will barely see any return on it (sorry to burst your bubble). If you want me honest advice it would be to stay away from convenience stores. Oh and bare in mind when I had Payment in my store which would give me a commission of about £30 a week but would cost me about £200 in bank charges.

If you would like to know more just ping me a private message, be more than happy to talk to you about it.