stock

[Abbyboo92]

Any ideas on how to finance my business?
Opening next week and I need to buy stock... however it’s looking a lot more than expected
Anywhere I can get financing this late in the game?
Loans are out of the question
Job centre maybe?

 

[MBE2017]

It might help to explain what stock, what business, the amount you want, need or could make do with.

I have thirty years experience in buying stock, and what I would say is most companies, new and old, carry far too much IMO. It is depressing to see you are only mentioning this with one week until you open, what had you allowed for in your business plan, what has happened to the financing I assume you had arranged to stock according to your business plan?

 

[Abbyboo92]

It might help to explain what stock, what business, the amount you want, need or could make do with.

I have thirty years experience in buying stock, and what I would say is most companies, new and old, carry far too much IMO. It is depressing to see you are only mentioning this with one week until you open, what had you allowed for in your business plan, what has happened to the financing I assume you had arranged to stock according to your business plan?

It’s food & ingredients for a takeaway. Roughly about £300 short. I’m buying only for the first week. I overspent on other things

 

[Higgsy]

Family/Friends?

 

[Mr D]

Personal bank loan?
Credit card?
Payday lender?


Jobcentre tend to give grants only to people who qualify and the process last time I had it took a few weeks for money to arrive. With a week to go you find the money somewhere or you do not open.

 

[Opinion87]

It’s food & ingredients for a takeaway. Roughly about £300 short. I’m buying only for the first week. I overspent on other things

£300 for one week? I've been following your posts... are you sure you're going to do anywhere near the sales you're thinking you are in the first few months, let alone the first week?

 

[Bronco78th]

For an amount that small, family and friends is the way forward.

 

[Mark T Jones]

I'd very much go with family & friends.

Failing that, this is what Start Up Loans exists for.

They do require reasonably good personal credit and the process takes a while.

The good thing is that they require you do do a business plan (and will help you), which you definitely need.

 

[Abbyboo92]

I have a business plan but I looked into start up loans before & as I am claiming benefits id need to go through the job centres new enterprise scheme. When I contacted the job centre they were really unhelpful and I was told to wait until my child is older when I actually have to look for work

£300 for one week? I've been following your posts... are you sure you're going to do anywhere near the sales you're thinking you are in the first few months, let alone the first week?

This includes some equipment storage units packaging I have had to buy in bulk
I have already spent about £400

Tried a loan, don’t really wanna apply for more (even payday lender sunny didn’t accept me) I did have good credit but taken out a lot of small things lately and “owe “ a debt to one company which I’m currently disputing

 

[Abbyboo92]

I do have another income, so I didn’t go into this empty handed but It’s been hard to find clients for my other business lately

 

[Abbyboo92]

Another option is to buy less stock which I don’t really want to do as I need it to be able to fulfill orders and actually make money
I’ll speak to my friends and family now though

 

[Mr D]

You are buying from a cash & carry? Or wholesale supplier?

 

[Abbyboo92]

You are buying from a cash & carry? Or wholesale supplier?

I did a lot of research a couple nights ago and found a lot of things were cheaper in Tesco
So 70% is from Tesco
30% from wholesale supplier

 

[Opinion87]

What I meant was, you're buying frozen desserts and then selling them from home via Just Eat... and you need £300 for ONE weeks worth of stock.

£300 seems like an awful lot of frozen dessert.

 

[Mr D]

What I meant was, you're buying frozen desserts and then selling them from home via Just Eat... and you need £300 for ONE weeks worth of stock.

£300 seems like an awful lot of frozen dessert.

Its also a LOT to be selling via any method. What happens if only £20 of stock gets sold in the first week?

 

[Opinion87]

Its also a LOT to be selling via any method. What happens if only £20 of stock gets sold in the first week?

That's my point. I think the OP is expecting sales WAY above what is realistic.

 

[Higgsy]

Abby, do you have to buy so much stock.. Can you not order a smaller amount, and if you suddenly have an influx, go back to Tesco and buy more?

 

[mattk]

I did a lot of research a couple nights ago and found a lot of things were cheaper in Tesco
So 70% is from Tesco
30% from wholesale supplier

If you're buying from Tesco why don't you buy enough for 2 or 3 days and then go back every few days?

The advantage of buying stock in bulk is you get a discount. I can't see Tesco giving you a bulk discount. The other benefit is in case you have a massive day, but three days of stock should cover that instance.

The downside of buy a week's worth of stock is that if you have a bad week you end up with a lot of wastage.

 

[Abbyboo92]

I’m not buying anything frozen apart from a couple cheesecakes & ice cream. It’s being made from scratch which requires several different ingredients
I don’t think people realise how little £300 can actually buy especially when buying branded products such as kinder bueno
When I get home I will post what I have olanened to make for the first week
Most foods will last 3-4 days

 

[Abbyboo92]

If you're buying from Tesco why don't you buy enough for 2 or 3 days and then go back every few days?

The advantage of buying stock in bulk is you get a discount. I can't see Tesco giving you a bulk discount. The other benefit is in case you have a massive day, but three days of stock should cover that instance.

The downside of buy a week's worth of stock is that if you have a bad week you end up with a lot of wastage.

I am buying enough for 2-3 days and the wholesalers near me rarely do a bulk discount. There is a Tesco next door to my flat which is convenient if I run out
For example today I bought 21 kinder bueno (40p each) I don’t think that’s a lot I will probably use half of them in the brownies and waffles in making sell the Rest

 

[Mr D]

I am buying enough for 2-3 days and the wholesalers near me rarely do a bulk discount. There is a Tesco next door to my flat which is convenient if I run out
For example today I bought 21 kinder bueno (40p each) I don’t think that’s a lot I will probably use half of them in the brownies and waffles in making sell the Rest

The whole point of buying from wholesalers is the items are in bulk.
They don't do bulk discount, they merely sell many things at a lower price per unit than the shops do.

Tesco sell a small tub of hundreds & thousands, cash & carry will sell a big tub of the stuff for only slightly higher price.

Or one of my recipes calls for Cadbury crème eggs - buying a few dozen is cheaper by the box than at retail prices.

Use multiple places and should be able to get a chunk of your ingredients cheaper in bulk.

 

[Opinion87]

Personally, I think you need to step back and run your numbers again properly before you think about launching.

Just because you're on Just Eat doesn't mean you're going to make sales.

You can't afford to spend £300 on stock, so what happens if you borrow £300 and in your first week you make no sales, or even 50% of the sales you imagine you will? Your stock (perishable goods) are gone, you have no money...

Seriously, I would implore you to take a step back. You've already realized that your costs are a lot more than you expected; the next big shock will be that your sales are a lot less than expected.

Where have you got your sales figures from? Are you just assuming that being on JustEat with zero marketing will mean sales? (It won't.)

 

[Abbyboo92]

Personally, I think you need to step back and run your numbers again properly before you think about launching.

Just because you're on Just Eat doesn't mean you're going to make sales.

You can't afford to spend £300 on stock, so what happens if you borrow £300 and in your first week you make no sales, or even 50% of the sales you imagine you will? Your stock (perishable goods) are gone, you have no money...

Seriously, I would implore you to take a step back. You've already realized that your costs are a lot more than you expected; the next big shock will be that your sales are a lot less than expected.

Where have you got your sales figures from? Are you just assuming that being on JustEat with zero marketing will mean sales? (It won't.)

I don’t think this is helpful advice. This business is going ahead. I have over 30 customers waiting, hundreds on social media and it’s been in the news. It would not even be possible to make 0 sales in the first week. I only need to make 5 sales a night to pay the driver, my only family and friends will probably order more than that. Look, I don’t need to prove sales to people, that’s not what I’m asking here.

 

[NickGrogan]

You have 30 customers waiting?

Excellent, take the orders and payment, buy what you need to make the orders. Assuming £10 profit per order (no fees to JustEat etc) there is your £300.

At £5 per order you've got £150 which is enough to keep you going.

Sorted.

Need more?

Send an offer to your 100's on social media - 5% prelaunch discount.

There's another 30 orders.

Done.

 

[Mr D]

I don’t think this is helpful advice. This business is going ahead. I have over 30 customers waiting, hundreds on social media and it’s been in the news. It would not even be possible to make 0 sales in the first week. I only need to make 5 sales a night to pay the driver, my only family and friends will probably order more than that. Look, I don’t need to prove sales to people, that’s not what I’m asking here.

30 customers paid? Great.
30 customers who say they will buy? Figure a handful will spend money.

Hundreds on social media may equal zero sales.
I like several dessert shops on social media that I've never purchased from. Maybe one day they will be open when I want something.

Its easy to make zero sales in the first week. Its easy to make zero sales on multiple days in a year.
Its a numbers game and you start off relatively unknown. When you have dozens of regular customers then you can say you won't make 0 sales.

Plenty of us have started up with what we felt were great products. And had quiet periods including multiple days of zero sales.

 

[Abbyboo92]

Even if I make 0 sales one day, it’s not the end of the world, I have 2 other incomes, and I’m not at all worried
I can’t take payment as it’s done through justeat. No ones going to send a bank transfer to a random new business with no credibility

 

[Opinion87]

You're not worried about making no sales... but you've considered taking out a loan for £300...?

If you have two other incomes and can afford to have zero sales, how can you not afford £300 for stock? It makes no sense.

By the sounds of it, you don't have two other incomes, you have two lots of benefits. If that's correct, I don't know anyone on benefits can afford to lose the amount of money you're talking about.

 

[NickGrogan]

No ones going to send a bank transfer to a random new business with no credibility

If they're not prepared to pay, then they're not going to order food from you either.

Would you eat something from a random business with no credibility?

 

[Abbyboo92]

If they're not prepared to pay, then they're not going to order food from you either.

Would you eat something from a random business with no credibility?

There’s takeaways in my area with 3 star hygiene rating, 1 star just eat reviews, and they get 30 orders w night. I know someone that works there

 

[Abbyboo92]

You're not worried about making no sales... but you've considered taking out a loan for £300...?

If you have two other incomes and can afford to have zero sales, how can you not afford £300 for stock? It makes no sense.

By the sounds of it, you don't have two other incomes, you have two lots of benefits. If that's correct, I don't know anyone on benefits can afford to lose the amount of money you're talking about.

I claim benefits and self employed, no I don’t have money to lose, but I cannot survive on such little income at the moment. My self employment some months I have made £2000 some months I have made £200.
Btw I’m home now so will post my shopping list in a moment

 

[NickGrogan]

OK, you know everything about the food business, have customers waiting to order, have 2 other incomes and will sell thousands of pounds worth over food from week one via JustEat.

Excellent, so why can't you raise £300?

 

[Abbyboo92]

OK, you know everything about the food business, have customers waiting to order, have 2 other incomes and will sell thousands of pounds worth over food from week one via JustEat.

Excellent, so why can't you raise £300?

I’m asking for ideas to raise £300. I may be able to do it this evening with my self employed job but it’s not guaranteed which is why I’m getting anxious. But I think if I cut down some of my menu, stock I may be okay. I think I’m just stressing myself out over this. I’m also waiting for a refund from an item (£80)
I was also meant to be getting around £600 compensation from a utility company but been told it can take up to 30 days to show on my account (was promised 15th Jan) so that’s let me down a lot

I currently have £280 in my bank account, so I do have the money, I’m just stressing it’s not enough. Get paid from benefits on 23rd but using majority of it to pay the driver

 

[NickGrogan]

I’m asking for ideas to raise £300.

You have 30 customers waiting?

Excellent, take the orders and payment, buy what you need to make the orders. Assuming £10 profit per order (no fees to JustEat etc) there is your £300.

At £5 per order you've got £150 which is enough to keep you going.

Sorted.

Need more?

Send an offer to your 100's on social media - 5% prelaunch discount.

There's another 30 orders.

Done.

Anyone who will order via JustEat will pay direct, why wouldn't they?

 

[NickGrogan]

How much profit will you make on those 30 orders, I presume its over £300?

 

[Abbyboo92]

How much profit will you make on those 30 orders, I presume its over £300?

Minus fees around £12 profit per avg order of £20
Yeah they will pay direct but I don’t have an ordering system. I don’t know how to take card payments, I looked into card terminals before but decided to leave this until my business was established so I don’t over complicate things for myself. I know personally yes I would pay direct, in fact I would probably prefer to. But not bank transfer (one issue with BT is that it can take up to 2 hours to go in) this is fast food. Do you have any suggestions I’m missing? Of course some people could pay in cash, but really, who pays with cash now days?

 

[Mr D]

Minus fees around £12 profit per avg order of £20
Yeah they will pay direct but I don’t have an ordering system. I don’t know how to take card payments, I looked into card terminals before but decided to leave this until my business was established so I don’t over complicate things for myself. I know personally yes I would pay direct, in fact I would probably prefer to. But not bank transfer (one issue with BT is that it can take up to 2 hours to go in) this is fast food. Do you have any suggestions I’m missing? Of course some people could pay in cash, but really, who pays with cash now days?

Some places do COD.

 

[UrbanRetail]

How many items are on your menu?

 

[MBE2017]

Ok, FWIW I would look at this in a slightly different way. You are confident in sales which is good, but ask yourself what the minimum stock is required to supply 60% of your projected orders, knowing you can pop next door to Tesco’s anytime.

Sales are rarely as high as most people imagine day one, it might take a couple of weeks or months to really get going. One more question, how fast do just eat pay your money into your bank? This might help or hinder your stock levels.

Cash flow kills more businesses than profit.

 

[Abbyboo92]

Ok, FWIW I would look at this in a slightly different way. You are confident in sales which is good, but ask yourself what the minimum stock is required to supply 60% of your projected orders, knowing you can pop next door to Tesco’s anytime.

Sales are rarely as high as most people imagine day one, it might take a couple of weeks or months to really get going. One more question, how fast do just eat pay your money into your bank? This might help or hinder your stock levels.

Cash flow kills more businesses than profit.

Sooo I ended up spending less than I thought, feeling much more confident now I have at least half the stock I need
Just eat pay every Friday for the week before

 

[NickGrogan]

Cash, bank transfer, PayPal, etc. There are plenty of ways that people can pay you.