Starting Retail help (From ground upwards)

Discussion in 'Retail' started by Fishing Brothers, Aug 11, 2015.

  1. Fishing Brothers

    Fishing Brothers UKBF Newcomer Free Member

    7 0
    Hello and thank you for taking time reading this post and for any help you can offer.

    My brother and myself are thinking well no, re-phrase, are certain to start a Fishing Tackle shop in our local area. The area has currently 2 tackle shops that are closing down (One of which my brother is the manager of) 1 shop closing due to ill health, the other due to poor management.

    So this leaves a massive gap right in the heart of the Thames and other fantastic fishing venues.

    My big question is, for those who has maybe done similar would be, how easy would you say it is to get the basics up and running with little or no capital but what I would say was a very strong business plan?

    I have the E-commerce/Customer service aspect as I design and run websites, have also worked in retail including the tackle shop my brother manages. I am also a very keen and I would like to think a good angler.

    My brother as I have said manages a tackle shop already and has built up trust over the years with local anglers, clubs and fishing lakes. He also knows has the contacts and knowledge of the suppliers. He is also a well respected and top angler in the area.

    When the current shop he works in closes I am sure we will get help with equipment ect.

    So in my biggest question I guess is how powerful can a business plan be? We have the passion, idea's, contacts and knowledge, but we don't have the finance.

    Help and advise would be greatly received.
     
    Last edited: Aug 11, 2015
    Posted: Aug 11, 2015 By: Fishing Brothers Member since: Aug 11, 2015
    #1
  2. bigspender

    bigspender UKBF Contributor Free Member

    32 3
    Just throwing some ideas out here:

    Can you buy the current closing shop from the owner, with owner finance + cash?

    For the cash part, maybe you can pass the hat around family/friends.

    The owner might have debts he wants to pay, which you can provide the cash for - and would be happy just to walk away with giving you a loan for the rest of the business value.
     
    Posted: Aug 11, 2015 By: bigspender Member since: Feb 23, 2014
    #2
  3. Fishing Brothers

    Fishing Brothers UKBF Newcomer Free Member

    7 0
    Business not worth buying, plus the owner is selling the premises. We are however hopeful to buy stock for trade price and pay off monthly to help start us take other essential equipment
     
    Posted: Aug 11, 2015 By: Fishing Brothers Member since: Aug 11, 2015
    #3
  4. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    3,710 732
    You will find it very difficult without any finance.

    You could ask suppliers to assist you with credit terms etc.

    But you must have some capital behind you for rent, rates, bills, wages, etc etc etc.

    The idea sounds good................It would sound much better with some money behind you to cover the first 12 months of expenses.

    Good luck.

    ( Why don't you look at opening an online store, given your circumstances and experience you both have)
     
    Posted: Aug 11, 2015 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #4
  5. Fishing Brothers

    Fishing Brothers UKBF Newcomer Free Member

    7 0
    Online store is lost on its own, as the fishing season is hard in winter then you rely on fresh bait to keep the business running. This can not be sold online really
     
    Posted: Aug 11, 2015 By: Fishing Brothers Member since: Aug 11, 2015
    #5
  6. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

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    Are you kidding me?

    We supply fishing tackle to customers in Europe, USA, Australia.

    They are all doing well.

    Online means a window to the world, not just your area.

    Do some research.

    You will be surprised.
     
    Posted: Aug 11, 2015 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #6
  7. Fishing Brothers

    Fishing Brothers UKBF Newcomer Free Member

    7 0
    Oh I certainly know the UK's online market. When it comes to fishing tackle it's just not that easy like I said, plus what we sell would not interest the U.S. Market as that is mostly sea fishing and bass fishing. We deal in course and match fishing equipment and baits. Also shipping to Europe would not be something we would jump in to straight away. For various reasons.

    The problem with most suppliers is you need to be VAT registered, to start a small online shop alone wouldn't really work. I have done research and know the market well so that side of things we are not blind, however the business side/funding is the side we need help with
     
    Posted: Aug 12, 2015 By: Fishing Brothers Member since: Aug 11, 2015
    #7
  8. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    3,710 732
    It might be easier than getting funding for the shop and would certainly help with your sales figures overall.

    Best of luck and hope it turns out well.
     
    Posted: Aug 12, 2015 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #8
  9. Twinkle Toes

    Twinkle Toes UKBF Enthusiast Free Member

    540 75
    You'll almost certainly need six months rent money before you even get the keys to a shop, that's a deposit equal to three months rent and three months rent in advance. You may be able to negotiate but as a new business with no cash it's doubtful.

    Also getting finance will not be helped by the fact two similar shops are closing, that's a massive negative.

    Good luck, but I think you will struggle getting this off the ground given your personal circumstances.
     
    Posted: Aug 12, 2015 By: Twinkle Toes Member since: Feb 21, 2015
    #9
  10. Fishing Brothers

    Fishing Brothers UKBF Newcomer Free Member

    7 0
    A shop closing due to retirement is not a negative I do not believe, even then this shop with no real desire to restock is still turning over £250,00 a year, and this is without stocking some of the top fishing brands we have a desire to sell.

    This trade we would be essentially taking over, because my brother is the reason behind that turn over. You have to understand that this is not a retail shop that requires lots of marketing because of the competition. Fishing is a very tight nit sport and most of our customer come for the social aspect (Most of the regulars come in for a chat and a cuppa) So it would not be expected to have a slow start up to build a customer base like most new businesses do.

    The other shop is closing due to poor service (very grumpy and bad attitude lol) and the fact they do not offer the range of high quality fresh baits my brother currently does. However I understand this may have a negative business impact.

    I do how ever think that starting an E-commerce website now would be a positive thing and a start to show some success, so we are now in the middle of starting that up (Thanks MY OFFICE IN CHINA)

    We are looking at funding options like grants or start up loans.

    We potentially are the only tackle shop within a 15 mile radius of maidenhead.

    Taking over the current shop would not be something we want. Aside from explaining the person plans to sell, the shop is not in a great shape and very old fashioned. Also he has built a bad rep with whole sellers about bills and my brother has already built up a rapport and has agreements ready to be taken out of we go it on our own.
     
    Posted: Aug 12, 2015 By: Fishing Brothers Member since: Aug 11, 2015
    #10
  11. Lloyd N8N

    Lloyd N8N UKBF Regular Free Member

    196 31
    Just throwing an idea out there - but could you convert a van or old ice-cream van in to a store?

    It may not give you the space I guess, but could be quite quirky if you could find somewhere to regular to pitch up at.

    That does require money though.

    Otherwise, could you look around and find some unused space somewhere - that you could rent relatively cheaply without having to sign up for 2 years with 6 months rent up-front?

    Good luck!
     
    Posted: Aug 12, 2015 By: Lloyd N8N Member since: Jan 15, 2011
    #11
  12. Twinkle Toes

    Twinkle Toes UKBF Enthusiast Free Member

    540 75
    Of course the shops closing are a massive negative, if they were turning even a half decent profit they would be sold, would help boost a pension pot nicely! Profitable businesses rarely close.

    Also your last paragraph doesn't suggest all is well.
     
    Posted: Aug 12, 2015 By: Twinkle Toes Member since: Feb 21, 2015
    #12
  13. Fishing Brothers

    Fishing Brothers UKBF Newcomer Free Member

    7 0
    Thanks for your comments
     
    Posted: Aug 12, 2015 By: Fishing Brothers Member since: Aug 11, 2015
    #13
  14. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    9,533 1,923
    Look outside the area for a shop or small retail outlet or part of a garden center, You would be a niche business so people will find you wherever you go, your not looking for passing customers coming in.

    Old out of the way shops can be had with no large lease and low rent, the same applies to lock up workshops where you can have a display room

    Without money to go 6 to 9 months without wages you will find it very hard to survive as sales will take a lot of time unless you are lucky

    Banks may offer you a loan of 50% of the total required if you can get your 50%, few grants around these days, though if your both young the Price of Wales trust offers start up loans/ grants if under a certain age

    E-commerce you are taking on the big boys who have massive purchasing power so although a good idea for sales about three years down the line very slow to take off unless you have a big spend on PPC and can buy at the right price

    Don't ever buy the old stock at trade price it will only be worth auction price which on most things might reach 20% of trade price, think how will he get rid of it the suppliers wont want it back that's for sure
     
    Posted: Aug 12, 2015 By: Chris Ashdown Member since: Dec 7, 2003
    #14
  15. Fishing Brothers

    Fishing Brothers UKBF Newcomer Free Member

    7 0
    Thanks Chris, great advice.

    Wage wise we are lucky, as it will be a joint adventure with my brother, and no other staff to pay. So We both know we will take very little out in the first year. Both have understanding wives.

    Garden centres ect is a great idea as yes we do not rely on walk past customers.

    In regards to stock, our plan was to pay as we sell. So to do this thinking of offering around trade price to stop the current owner from selling on auction or similar. Helps us this way with up front costs and gives us stock to start or at least help start.

    I am also lucky enough to be the IT guy for an Airsoft company, I designed and run their E-commerce website, they are also interested in coming in to run a small shop within ours to help costs too.

    We have lots of options, it's why we are optimistic that we can get this running.
     
    Last edited: Aug 12, 2015
    Posted: Aug 12, 2015 By: Fishing Brothers Member since: Aug 11, 2015
    #15
  16. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    3,710 732
    This maybe an unusual idea.................Why not approach your biggest supplier to help fund the business.

    He gets the trade, you get the support.

    Say, a 2 year agreement, which should give you sufficient time to build profits and invest your own money.

    Just a thought.
     
    Posted: Aug 12, 2015 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #16
  17. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    9,533 1,923
    One other thing, face to face meetings with suppliers when you start up are very valuable to both sides, you can explain fully what you will be doing and hopefully get them on your side, hopefully get a credit account and some promotional material and good sale or return on some more expensive items,

    Even if you have traded with them before with the old company a visit to them shows you are willing to go out of your way to meet them which must be good and also you get to understand how they work.

    Don't forget to ask for a list of their top selling lines as it's a bit silly buying stock of middle or slow moving items which you may think are winners but the buying public have other idea's on. You can also ask if they have any discontinued stock lines they could sell to you at a good price if you think they will cheaply fill out your store

    Good luck
     
    Posted: Aug 12, 2015 By: Chris Ashdown Member since: Dec 7, 2003
    #17
  18. Funding for Communities

    Funding for Communities UKBF Regular Free Member

    197 47
    Hi Fishing Brothers,

    If you need to raise finance it can be very difficult for a startup. Look at raising money personally and using that for the business. It's how I got my first business off the ground many years ago and is often the only way.

    Good luck with your new venture

    Mike
     
    Posted: Aug 14, 2015 By: Funding for Communities Member since: Jul 22, 2015
    #18
  19. Haunted Worlds

    Haunted Worlds UKBF Big Shot Free Member

    4,475 1,219
    This!

    Get yourself a van, get it converted and get down to local fishing spots - you'll clean up, seriously... plus with the added bonus of being able to pitch a rod and catch a few at the same time! :D

    Just think about all those sat out there, early morning fishing away - along comes your fishing van - take with you a large bottle of water, a kettle, inverter tea, coffee, sugar and milk...and you're providing the social aspect at the same time - at least this way you'll be able to save up for your shop, while still getting the name out there and getting the business recognized.

    As the saying goes, if "Mohammed can't come to the mountain" ;)
     
    Posted: Aug 20, 2015 By: Haunted Worlds Member since: Nov 22, 2011
    #19
  20. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

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    It would be a hell of a area you could cover and with a e-commerce shop as backup

    You could also specialise the goods for the fishermen you are visiting each day

    A big transit the long wheelbase one would carry a hell of a lot of goods and they could try on clothing for fit etc which they cannot do online
     
    Posted: Aug 20, 2015 By: Chris Ashdown Member since: Dec 7, 2003
    #20