Hoping to open a shop.

Errata

Start with a stall in Leeds market and see how it goes.

borders_dude

martindow wrote: »

A good starting point is always Business Link. Lots of free help and advice available

http://www.businesslink.gov.uk/

Good luck with your venture, but do plan it out and be sure you know what you are taking on.

Providing you are in England. If not dont bother contacting them.

Horace

You will be lucky getting a start up grant too - they are so thin on the ground they are virtually non-existent at present.

Vintage clothing costs..and people are willing to pay £30/£40 for a grandad jumper.

paulwf

More random thoughts on starting up...

Business plans analyse whether a market is expanding, mature or declining. Do you think vintage will still be as big in 5 years time? If not what market will you move into? A couple of years can pass very quickly, you need to have a rolling 5 year plan in place.

If you sell student items the turnover of your "suppliers" is going to be very rapid. As boring as it is a business is partly about logistics, you do need a supply chain where you can just order the same items in bulk and put them on the shelf and sell them in quantity then easily order some more.

property.advert

This is a hobby business, not a real one.

That is not to say that there is no potential at all. What the OP has to realise is that business is the real world and not university.

Looking at the potential of the site. What is the rent, premium, rates, anticipated service charges, utilities, deposit, length of lease, cost to fit out, marketing budget, website, promotional material, etc.

Where does the break even point need to be ? 6 months ? 12 months ?

For example, if the lease requires a premium of £5000 and the rent is £1000 a month over 7 years and there is a £6000 deposit, then you are in for 12k to open the door, perhaps 2k to clean it out, 5k for stock and 3k for promotional material and websites etc. Then if you expect services and bills of £500 a month and break even after 12 months you are in for 39k or so and an extended liability for another 72k on future rent.

I know these figures will be far higher (I hope) than what she is considering but I just want to highlight that these numbers do not give her £1 of profit. Add in her "wage" and you have over 50k.

I admire entrepreneurship and have had a number of businesses over the years but just because some of your friends like this or that does not make a business.

Lack of profits takes food off your table but fixed costs drive you to the wall.

Happy to crunch any numbers she cares to put up.