help in deciding what to do..

Sarahpuggy

Hi all,

I am due to inherit about £20,000 in the next few months and i would really really love to set up my own business.

I am 24 years old and i have a degree in Fashion Design. I currently work as a fashion buyer, and would love to do something along those lines. I'd like to buy/sell something, but what!?

I am confident i have the skills necessary, ive always been very ambitious and customer orientated and really feel like it would be ideal for me. I enjoy my job right now, and i want to stay there for a good year or so and really research my chosen field and set up a proper business plan. Obviously no one wants to give away their own ideas, but does anyone have any advice or help?

A clothes shop is obvious, but i think with the rise of the internet this is not really the way to go. Maybe an online shop of some sort. my OH is a ocmputer programmer so i could set that up quite easily im sure..

Hmm, feeling frustrated and not sure where to start to get all this rolling!

Sarah x

helen_vasey

Is there a particular style of fashion that you are interested in? perhaps you can join the uk business forums and the wholesalers directory to get some ideas. there seems to be a lot of scope on the net for different styles i.e. skate/surf. goth and alternative. emo.etc. my daughter gets lots of stuff online ( on my c/c!). we have just opened an online shop for kite sports and there is a lot of call for "urban", skate-style clothing. in fact we have just found a brilliant company called plain lazy, they supply shops with t-shirts etc. and their stuff is very trendy. I agree that an actual shop is hard going, we decided against it as the overheads are just so high and the volumes of stock are just too massive. maybe when we have made enough cash for a whole year's overheads, we will re-think. but £1000 per week in sales just to pay the shop rent and rates is unthinkable at the moment. (that's for our local high street). what we are doing though, is having a market stall to test the waters, we are buying our own stall, but most markets will hire you the frame, you supply the covers etc. starting your own business is very hard work but ultimately very rewarding, there is nothing like your first sale.:j

Sarahpuggy

Thats a good idea, narrowing it down to a particular area..

How have you found sales through your site? Has it been successful so far?

How much stock do you buy at first?

I think i will start to research some more in depth areas and take it from there. The urban idea is great though as its not particularly mainstream on the high street but its very popular, and i imagine quite difficult to get your hands on the latest styles.

Thanks alot

Sarahpuggy

Also, i hope you dont mind me asking and you dont have to answer of course, but what have your initial set up costs been?

Thanks so much x

helen_vasey

at the moment we are selling on our ebay shop, our own website goes live in a few days, hopefully. stock levels are hard to judge, we have just gone with what we like, and have spent approx. £2500 on about 65 different lines, from £2.00 kids' kites to 4 metre power kites and mountain boards costing £150. we are ticking over on ebay , selling 1 or 2 items a day, we are also selling at our respective workplaces, handy as xmas is fast approaching. we are taking it slowly but hopefully within 6-12 months I will be able to give up my part time job to concentrate on the business. good luck with whatever you decide on, having the £20k will certainly make things easier, but don't risk more than you are prepared to lose. also be prepared for knock-backs from suppliers, they can be very brutal and it is dissappointing when you really want to stock something and they say no. some suppliers will bend over backwards for you and some just don't give a ****! as for set up costs, £2500 on stock. £200 for a stall. £105 to join the market trader's federation. about £500 on other things like web hosting, packaging materials, a separate phone line, we already have a lap top and pc etc. so really quite cheap.

bugbabe

hi helen spoke to you on my thread sorry to hijack this one can you tell me where you got your stall from am in cheshire so not to far away thanks

helen_vasey

bugbabe wrote:

hi helen spoke to you on my thread sorry to hijack this one can you tell me where you got your stall from am in cheshire so not to far away thanks

hiya, we are getting the stall from apex in wales, they have a very good website. they are delivring it on thusday.:j

martindow

I can thoroughly recommend Business Link http://www.businesslink.gov.uk/ a government service for business advice. Their experience of seeing thousands of businesses and free advice on starting up and web sites can be invaluable.

WhiteLily_2

Hi sarahpuggy

I set up a local high street shop in February 2006. Frustratingly, in my research, the one thing that I could not find was a finanancial case study of someone setting up a similar venture to give me an idea of all the costs involved to enable me to produce an accurate as possible business plan. So, I hope the following helps you in your venture and in making the right decision!

My initial investment was £25k. This was from personal savings.

My start up costs were as follows:-

Quarters rent and deposit £4500
Shopfitting Costs £2000
Solicitors Fees £1000
Stock £15000
Miscellaneous i.e admin bits, travel, advertising, £2500

My current monthly outgoings are as follows

Rent £750
Rates £116 (includes small business relief)
Electric £40
Insurance £33
Phone £25
Broadband £15
Mobile £25
Credit/Debit Card Terminal rental £18
Credit/Debit Card Charges £25

So, monthly I payout £1047 just to have the shop! However, I'm really pleased with how things are going!

The plus points of setting up the shop:- being your own boss; making your own decisions; lifestyle balance (work 32.5 hours at the shop a week compared to 40-45 hours plus travel in my previous job; sense of pride and achievement;

The minus points - inconsistent sales - some weeks taking in excess of
£1k but some weeks only taking £300 - no rhyme or reason why this happens it just does regardless of advertising etc; if you are planning on running the shop yourself it can be lonely as you are tied to the shop during trading hours - fine when there are lots of customers but dead boring when no-one about. Finally, it's the worry - especially when you have had a quiet week - and all the questions that go round in your head - what if things don't pick up; why did I do this etc; etc;

Overall, I personally feel that I'm doing fine for my first year of trading and am proud of my achievement so far. Obviously my plan is now to grow the business - I now have an idea of what sells well and what doesn't and have loads of ideas as to increasing turnover.

Key words for setting up a shop is cashflow - you need to be really on the ball with regards to what's due out and whats expected to come in. Secondly - location, location, location - prior to signing a lease stand outside a shop and see how many people pass your door and maybe even do some research as to see if passers by feel there is a need for a clothing shop and the liklihood of them using it.

With regards to opening a clothing shop you need to be very aware about the clothing seasons and how you will deal with unsold winter stock in spring/summer to ensure that you do not end up with lots of unsold overstock which basically means wasted money!!

Hope this all helps & Good Luck with whatever you decide to do!

black-saturn

Does anyone have any recommendations of where to buy alternative or goth clothing and accessories for an online shop?

sunsetgirl

Hi, I too can recommend buisness link also look at networking women http://www.networkingwomen.co.uk/page/index.cfm it is based in the north east but are really helpfull when starting a biz.
If you find a niche in the market your items will become sought after.
Good Luck to you.