Opening a cash converter (buy and sell) business

Cpu2007

Hello everyone
I hope someone can help me out on this as information from this website are very useful.

I want to open a shop where is possible to buy and sell items ,especially electronics,I am sure many of you have seen it.

I just want to know what are the requirments to open a shop like this?
Is it there something that I should be aware of?
Is it there a need of any type of certificate or permission?
Can I open a shop and just start running it as cash coverter?
what things should I take in consideration before opening a shop like this?

thank you in advance

DCFC79

Cpu2007 wrote: »

Hello everyone
I hope someone can help me out on this as information from this website are very useful.

I want to open a shop where is possible to buy and sell items ,especially electronics,I am sure many of you have seen it.

I just want to know what are the requirments to open a shop like this?
Is it there something that I should be aware of?
Is it there a need of any type of certificate or permission?
Can I open a shop and just start running it as cash coverter?
what things should I take in consideration before opening a shop like this?

thank you in advance

do you want to open a cash converter or open your own style of shop, if the latter i wouldnt bother as you will have alot of competition, if the former why not contact 1 of the many firms operating in the field

Browntoa

a Franchise is easiest

http://www.cashgenerator.co.uk/new-franchise-opportunities

Example costs for a typical store

Opening costs including shop fittings of equipment and EPOS systems £105,000.
Working capital £50,000 Initial fees £19,950.
Total minimum £169,950 - £220,000 (excluding VAT)

they give you full time training in a working shop prior to yours opening



looks like they have some open days coming up

http://www.cashgenerator.co.uk/franchising-events

DCFC79

Browntoa wrote: »

a Franchise is easiest

http://www.cashgenerator.co.uk/new-franchise-opportunities

Example costs for a typical store

Opening costs including shop fittings of equipment and EPOS systems £105,000.
Working capital £50,000 Initial fees £19,950.
Total minimum £169,950 - £220,000 (excluding VAT)

they give you full time training in a working shop prior to yours opening

lol only a couple of thousand K

Cpu2007

DCFC79 wrote: »

do you want to open a cash converter or open your own style of shop, if the latter i wouldnt bother as you will have alot of competition, if the former why not contact 1 of the many firms operating in the field

Thank you for the answer guys ,, so you think opening my own shop and running it as cash converter will give me much profit?

Browntoa wrote: »

a Franchise is easiest

http://www.cashgenerator.co.uk/new-franchise-opportunities

Example costs for a typical store

Opening costs including shop fittings of equipment and EPOS systems £105,000.
Working capital £50,000 Initial fees £19,950.
Total minimum £169,950 - £220,000 (excluding VAT)

they give you full time training in a working shop prior to yours opening



looks like they have some open days coming up

http://www.cashgenerator.co.uk/franchising-events

I did not quiete get there, can you give me some further details as I am new to this.
will I have to pay around £105,000 for the opening of the shop if i decide to franchise?
what will be my profit in this case?

Judas wrote: »

They cant' even add up. £105,000 plus £50,000 is £155,000 add £19,950 is £174,950.

It says the minimum investment is £70,000 with you being able to finance the rest.

OP - do you have £70,000?

Why exactly do you want to do this OP?

so i have to invest as minumum 70,00 to open a cash converter and then some other money to make it run?
whats the point to work under them if I am doing most of the inverstment ?

paulwf

Those figures seem reasonable - a lot of people don't realise how much it costs to set up a retail store.

What is interesting is all the "one man band" small turnover unknown brand franchises out there that charge a lot more than the £20K Cash Generator are charging to set up a reasonably large store with several staff.

Cpu2007

Judas wrote: »

Cash Generators will cost you at least £175k (and this is probably a tiny non prime store). Of this you must have 70k and find a loan for the rest.

You will also likely have monthly fees etc.

You are in essence paying for the name and infastructure.

Franchises are notorious and almost always pile the risk onto you massively.

I would never consider one myself.

yeah exaclty, so basically it's just about the name,nothing much from them self.
Is better to open a shop for my self and then make it run in the same way whici will not require me huge investments and in case of not running properly i can still shut it down with not much loss.

Cpu2007

paulwf wrote: »

Those figures seem reasonable - a lot of people don't realise how much it costs to set up a retail store.

What is interesting is all the "one man band" small turnover unknown brand franchises out there that charge a lot more than the £20K Cash Generator are charging to set up a reasonably large store with several staff.

yeah but at the end of the day isn't better to open my own shop where I can get one on rent at the price of (around 1000£ a month if not less) and then work from there?
my investment will be as much as 15000-2000 pounds
lets say arounnd £5000-7000 to open a shop with all the setups
plus £6000-7000 pound to buy stuff and plus some extra costs.

I do repair electronics stuff right now on my own and then sell themm , i want to do the same thing by also buying faulty items and repair them and then sell them.

So i think even at most my invevestment will be £30000 and I will be able to run it easily for six month or more even if I don't get much profit.

tcr_3

Um. Don't you need a consumer credit licence for a cash converter type place ? Cos people will want to pay things up, buy things back, payday loans, cheque cashing etc etc etc ... you really need to think this through, OP, otherwise the local council will hang, draw and quarter you.

And I don't think the margins are that great either. A significant amount of the stuff people bring in will still be on HP with other companies, or it'll be stolen (sorry to say that, but it's true). I genuinely don't think you've got the faintest idea what you're taking on here.

Cpu2007

Judas wrote: »

Your missing one point. You know nothing about the industry or what it rquires. I would guess that £15,000 you suggest you would need 4 times as much and just end up having a dodgy second hand store people wouldnt use.

Also you mention reparing etc; Cash converters and cash generator etc will likely ban such practices and only allow you to do the core services they offer.

£7000 - Set up is delusional in all honesty
£7000 - for stock etc - again delusional

I have to suggest you dont have a clue and dont waste any money on this venture.

yes I know I don't know much about it but I think prices liek 4 times more are exagerated.... the reason is because my uncle has a repair shop which is quiete big and he does sell phones and accessories, in his case the investment is not as huge as said ,around £30000 and he is being able to sell phones that he buys as the prices of his phones are lower then else.

I know the name is something valuable but customer especially now are careful about what they buy and they always look for something cheap,so if we have something cheaper and we give them the chance to check and warranties then I think it can work.

I think there is good money in this if properly done and was wondering about any other requirment other then investment as the management part is the one that i do not have much knowledge about.
But I am good about the buying and selling part and now want to boost my profit by opening something like that which will give me the chance to buy also cheap stuff as many peoplle will come to us and also to sell more items

Cpu2007

tcr wrote: »

Um. Don't you need a consumer credit licence for a cash converter type place ? Cos people will want to pay things up, buy things back, payday loans, cheque cashing etc etc etc ... you really need to think this through, OP, otherwise the local council will hang, draw and quarter you.

And I don't think the margins are that great either. A significant amount of the stuff people bring in will still be on HP with other companies, or it'll be stolen (sorry to say that, but it's true). I genuinely don't think you've got the faintest idea what you're taking on here.

yes, these are some of the requirments I was talking about as I have not clue about them.
Will I need a license to do this? do i need this license if i choose to work for companies like cash converters or i need it even if i open something for my self?

Well I said i would like to open something like cash converter,but after the useful information given to me by some replies on this topic there is no way I will work under them as the investment is huge and the flexibility is not much as I will have to provide all the services that cash converter does.

Reason why I am looking for my own shop where I can provide the services i want such as just buying and selling and maybe also repairing.