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Start Up legals and energy costs

Discussion in 'General Business Forum' started by NewTime, Oct 16, 2020.

  1. NewTime

    NewTime UKBF Newcomer Free Member

    8 0
    Good Afternoon.

    I am coming towards the very end of my business plan for a £1 discount shop and I am little confused by certain areas. We are currently going to be a £1 shop in a premises.

    Legals - I am not really sure what the legal costs I would need to carry out for this and what costs it is at. My business plan is currently very tight in regards what to do with the loan.

    Energy - We aren't planning on a huge shop and I intend to visit that shop next week. But are the landlords the ones expected to charge me for energy? I have looked through Google and it doesn't seem 100% on a specific answer.

    Also, I have a feeling the loan company will need a tenancy agreement. Will a draft one one?

    Many Thanks
     
    Posted: Oct 16, 2020 By: NewTime Member since: Aug 4, 2020
    #1
  2. Root 66 Woodshop

    Root 66 Woodshop UKBF Big Shot Free Member

    5,128 1,382
    You pay for your own energy... do a search on comparethemarket for instance, put in your business address and choose the supplier... set up your account - bobs your uncle.

    Legally, you need to have public liability to cover for anyone in the shop in case of an accident... and you also have to have insurance for staff and contents insurance.
     
    Posted: Oct 16, 2020 By: Root 66 Woodshop Member since: Nov 22, 2011
    #2
  3. intheTRADE

    intheTRADE UKBF Regular Free Member

    337 112
    Not always, totally depends on the terms of the tenancy agreement.

    Sometimes the rent includes energy costs, sometimes it doesn't. Sometimes you are even billed directly by the landlord who will add a bit on top of what they have been charged by the energy supplier.

    Just make sure it is clear with the landlord how the energy contracts work before signing the tenancy agreement
     
    Posted: Oct 16, 2020 By: intheTRADE Member since: Apr 14, 2019
    #3
  4. NewTime

    NewTime UKBF Newcomer Free Member

    8 0
    I did the homework on this before and there was a lot of differing information. I have also done what the first poster said and it involves doing a phone call where I just don't have the full details.

    If I am honest, we have a shop size of around 2 double bedrooms and I was just looking on what I should expect to pay.
     
    Posted: Oct 16, 2020 By: NewTime Member since: Aug 4, 2020
    #4
  5. NickGrogan

    NickGrogan UKBF Ace Full Member

    2,567 615
    It really depends, so you need to look at the potential lease.

    Sometimes the landlord will charge you, sometimes you will have to arrange it yourself.

    Some shops will have a live electricity supply and you can just take over the supply, with the supplier of your choice.

    Some shops won't have a live supply, and then you'll have to arrange a new connection and possibly a new meter. This can take a while at the moment.

    Have you checked if you'll be liable for business rates?
     
    Posted: Oct 16, 2020 By: NickGrogan Member since: Nov 15, 2012
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    24,926 3,037
    Probably a bit more than 2 double bedrooms would cost you at home.

    Heating, lighting, electronics - two shops the same size can have very different running costs for power.
     
    Posted: Oct 16, 2020 By: Mr D Member since: Feb 12, 2017
    #6
  7. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    4,965 1,945
    I'm assuming this is a theoretical exercise - project perhaps? As it would be a little odd to be applying for a loan before doing such basic research.

    With regards to energy costs, as others have said, it will depend very much on the nature of the unit, and what you intend to create (atmosphere, visual effect etc). What type of lighting is currently installed? How well insulated is the building etc, etc

    If you have a specific unit in mind, you might get some indication from previous utility bills or neighbouring units.

    With regards to legals, I'd start with a budget of £2K to review contracts etc - though that could escalate if the lease isn't entirely straightforward

    The biggie in your case is sourcing stock - particularly as it appears you will be buying in small quantities - have you researched this?
     
    Posted: Oct 17, 2020 By: Mark T Jones Member since: Nov 4, 2015
    #7