New Business Retail Shop

beebeecakes

Hi All
I know there is loads of posts and advice, but I am not sure where to start.
I want to open my own little shop, I have registered with serveral wholesalers and events etc
I am looking for the right shop to rent in the meantime, ive got a name, i know what I want to sell.
Now what?!
how much money do you think a new business needs to start up?
can you get a grant of any kind?
would it be better to register as a ltd company?

I would like to really get into this after christmas ....
Ive lost my job so thought it would be a good time to do this now, I know tough times are ahead but i guess now is as good as time as any for the next few years?!


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lincroft1710

beebeecakes wrote: »

how much money do you think a new business needs to start up?

Depends.

On how much deposit you will need to put down to rent shop.

On how much business rates on shop are.

On how much it will cost to fit shop out and paint/signwrite.

On how much you intend spending on advertising

On how much trade waste collection will cost you.

On what terms you negotiate with suppliers regarding payment for stock and how much stock you will need to start out with.

On how much your telephone, computer, cash register, alarm system cost.

On how much a month/quarter your electricity, water and heating cost.

If you are employing any staff, at least their first month's wage and employer's NI contribution.

Etc, etc, etc

Finally, there are virtually no grants available and usually if you want a bank loan, you are expected to have funds equal to the amount of the loan.

Have a look at the Business Link website http://www.businesslink.gov.uk/bdotg/action/home

pitkin2020

beebeecakes wrote: »

Hi All
I know there is loads of posts and advice, but I am not sure where to start.
I want to open my own little shop, I have registered with serveral wholesalers and events etc
I am looking for the right shop to rent in the meantime, ive got a name, i know what I want to sell.
Now what?!
how much money do you think a new business needs to start up?
can you get a grant of any kind?
would it be better to register as a ltd company?

I would like to really get into this after christmas ....
Ive lost my job so thought it would be a good time to do this now, I know tough times are ahead but i guess now is as good as time as any for the next few years?!

HMMM....well thats a novel approach, sort out your products and wholesalers before you have any clear understanding of any of the BASIC costs. You seem to have skipped all the important bits and jumped straight to the nice bits, the goods.

I'd suggest you write up a decent business plan before putting any money into the venture and get a good grasp on your costs.

As for your questions, costs could be anything from a few thousand to several hundred thousand depending on where you intend to sell (high street or back street) & what you intend to sell. Your question without details is unanswerable, its like saying how much is a car to buy? We could suggest you spend 3k on a fiesta to find you actually intend to use it for rally racing so you need a 350k car. Your shop would be no different, if your selling pound shop items you could probably be set up for a thousand but if you intend to sell fine jewellery you'll need a lot more.

Grants are usually pretty hard to get especially now and usually have loads of requirements, there was a website listing all available grants but I can't recall the address right now, a google search may help you there.

LTD co or sole trader, there are pro's and cons to both and without full details no one could advise you on how to proceed and which will be better for your circumstances, maybe a chat with an accountant where you can share all your details regarding your finances and assests maybe a better way to go than a public forum.

best of luck.

leveller2911

With regards to Business rates, dependant on rateble value of the shop you may be entitled to 100% rate relief and would also being a Ltd company can be good and bad in that accounts will cost a fair bit more than being a sole trader and more paperwork.That said if you go Ltd and then go bust you have limited liability.Business waste can be costly depending on type of business and steer clear of PHS Wastetec they are sharks....


The Prince of Wales Trust may have grants available, but speaking as someone who has been self employed for over 20 years there is very little help out there... One thing I would recommend is joining the FSB (Federation of small Businesses) its about £120-00 per year,its a good way of networking and within the fee is an insurance that covers you for any HMRC investigations. You also get free legal advice so well worth it...

Have at least 12 months rent put by, keep a close eye on your expenditure each month and do your research thoroughly and it will pay off..

Go for it and good luck ,if you can get a business going and keep it going when money is tight you will have a good business when the economy picks up...

paddyrg

£20k-£100kish, depending on oh so many things.

Pennywise

Do plenty of research on your overheads. Heat, light and power can be a thousand or two per year for an average small shop, and a lot more if you're using any equipment. Water rates could be best part of a thousand. Insurance could be £500-£1,000 and even more if you've a lot of stock, or high risk in any other way.

Whilst a small shop may currently be eligible for small business rate relief, it is temporary, and sooner or later, will be taken away, leaving you with a bill of several hundred pounds at the very least for the smallest of shops, and more likely a thousand or two for an average sized small shop. By all means regard not paying it as a "bonus" for the first year or so, but you do have to provide for it in your forecasts for year 2 onwards.

Waste disposal will be at least £100 - that's just for the sacks from the local council for light waste - far more if you need a wheelie bin or skip.

A credit card terminal could cost £25 per month, PLUS a few percentage points of the sales values. Bank charges could be high if you're handling and banking lots of cash or cheques.

Could be a few hundred pounds a year for security alarm and fire extinguisher maintenance - on top of the initial cost of them.

Lots of relatively small things add up to a few thousand a year, and that's before you think about advertising/marketing, telephones, stationery, postage, legal & accountancy fees, etc etc. In fact the rent is only the tip of the iceberg.

bris

Save your money and find another job, for now, it's not the climate to be opening a shop. The fact your on here asking about grants proves to me you don't have nearly enough to even scratch the surface.

Even with a ltd company, you will find it almost impossible to get a loan without any personal guarentees. Just negotiating the shop can cost a couple of grand in legal fees before you even sign the lease, then you will need a quarters rent plus a similar deposit up front. Before you know it you are 10k down before you even turn the key.

It's not easy out in the high st just now, it's going to get harder before it gets better too.
Then theres the online shops to compete with, not easy and they are getting stronger every year, this is why most, if not all major retailers have online market places.

You could try an Ebay, Amazon etc type shop to start with, cheap to set up and will get your goods seen by millions, if it works out for you and you can compete in this climate, then think about bricks and mortal shops.

greyteam1959

All the above is sound advice.
The best bit of advice is........dont open a retail shop.
Retailing for the independent is completely knackered. I have been in the food retailing business for 29 years now & this is the worst year
for ANY independent retailer.
Go & speak to some independents........they will all without exception say the same.
Save your money & your sanity.......go & work for Tescopolis.

oldoakey

Depending on what your looking to sell why not try shopping malls or supermarkets small or large that allow a small stand or something similar this could give you a feel of the business before you commit to signing a lease for a shop. These are typically around the £300 per week mark which is all inclusive and will get you good footfall which is one of main things that retailers need to be successful along with the right stock at the right price.

Think long and hard before signing a lease for a shop as its a big commitment and if the business does not pay then you will be held liable to pay the rent even if you shut the shop down. Also if you manage to re let to another retailer and they then go bust the landlord can call on you for the rent as your still liable.

inmypocketnottheirs

How much is your venture going to take each week according to your business plan?
What are your margins going to be?
How many times per year is your stock going to turn?

It's not the easy option people think its going to be.

texranger

all above are correct do get a shop.

i sell toys during the summer at fairs/country shows and have done for the last 8 years, buit each year its getting harder, so i looked into a shop last year and the costs were just unreal, so i checked my local out of town mall which gets the footfall and they had trading barrows at £1000 every 12 weeks, so as i sell toys i thought great i will test the market out and get one of these for the run up to christmas, so signup and got one from mid october last year which would take me to mid Jan. so covering christmas trade. this was a useless exercise, yes i covered the cost with a profit, but not what you would expect for toy sales leading to chrismas. you just cant compete with 50% off sales from toys r us and argos etc.