Least risky way of operating non profit food shop?

watersign76

Hi there

Have recently joined a non profit - currently trying for charitable status.

For a number of reasons we are to turn part of our office space into a shop. We are going to use it to sell products (produced by others) which are part of our "message" and mission. They will be provided by small local providers, mainly packaged food stuffs. It won't be second hand goods.

Our initial costs are v minimal again for a number of reasons, but I want to try to set it up in a way that minimises our financial risk but doesn't restrict the potential of generating income.

Any suggestions about the deal(s) we strike with providers of the produce? It will be a mix of "long life" and fresher items.

Sorry for minimal info, but it isn't common knowledge yet, so I am keen that this doesn't identify me in 'real life'.

Thanks WS

Savvy_Sue

I'm not sure I know what the 'risks' would be, so I'd encourage you to get a clear idea of them first. Then you can work out how to minimise them.

Off the top of my head ... this is a non-exhaustive list, and not all the risks are financial!

there are no risks in renting / buying the premises, because you already have them.

However, there is a risk that you need planning permission / change of use to open a shop in your office.

And there may be things you need to do to make the shop safe for the public.

Plus the security risks of having the public in your office - is the shop are going to be completely separate?

Insurance: you presumably already have Employers Liability, check that your Public Liability is adequate, and that the insurer knows you're running a shop, and you'll probably need to increase your cover because of the stock / cash on the premises ...

I wouldn't, at this stage, tie yourselves into any long-term advertising contracts, even if astonishingly good deals appear to be offered to you.

I don't know how the supply of stock works, but see what deals you can get (obviously) without buying massive quantities: see if suppliers will give you an introductory discount until you can see what actually sells.

Ah, waste disposal: you may need to increase your contract for that, again, don't tie yourself into a long term contract if you can possibly avoid it, see what can be recycled, see if there are local projects working with vulnerable people who could take food items at short notice (if appropriate) so that they are used rather than thrown away.

I don't know if any of that helps, it all seems a bit random to me but retail isn't my area of expertise!

Oh, if you're going for charity status, keep your aims broad so that you're not committed to running a shop and only running a shop, IYSWIM.

paddyrg

Local suppliers - see if they'll do you 'sale or return' for stock so your startup costs will be negligible, if it looks like you will be turning over decent amounts of cash/stock you can change your deals later :-)

paulwf

As Sue says the first hurdle to overcome will be getting change of usage consent - you'll have to contact your council to see what they allow.

On the practical side if you open the shop 9am to 5pm that's around 40 hours staffing a week minimum, can you get someone to cover these shifts without fail week in week out and can you also get holiday and sickness cover? Unlike a lot of office work which can be left for a day or two in retail you *have* to have adequate staffing at all times, and customer patterns can be very random.