I have a business idea but I'm clueless

yan79

Don't say sorry!
This is great advice, I appreciate it all.

Yan

yan79

fishybusiness wrote: »

Profit margins I suspect will be the driving force, and the only way to increase those is volume sales to increase your purchasing power, and to keep overheads down.

Perhaps have a look on ebay, look at what the competition is doing. Look at traders stock ranges, can you do better, do you have better ideas?

Perhaps something like an ebay shop with 'relatively' low overheads would be a good starting point. Risk is low, and you can learn your business, make your mistakes and grow, perhaps to an online store of your own.

As much as it sounds pessimistic, I can't see profit margins paying your wages and shop overheads until years of trading and working your way in to your niche market have eaten away at your finances. Sorry :sad:

There's no competition on eBay for the main designers. It makes me wonder as to whether they won't supply to eBay sellers.

COOLTRIKERCHICK

I dont want to be party pooper, BUT... alot of people daydream about having their own shop, and it being busy etc..

In reality retail is up and down like a bloody yoyo..

It is tuff out there regardless what you are selling.

As you have no retail experience.. I would recomend you try and get some experience.... maybe do a day a week volenteering in a charity shop etc.... have you sold in a bootsale? If not then maybe this might be worth doing, just selling your unwanted items, which will give you some sort of buyer/seller rapour...

I would def not jack your job in, and do not rely on your shop to cover your homelife expenses, and in all honesty you will working for a long time before you will be able to take a wage out ( if you are lucky)

motorguy

Finger in the air stuff...

Budget £20,000 for startup and shop fitting, £10,000 for stock.

£2,000 a month shop costs.
£1,500 a month to pay yourself.
£500 a month continuity.
£500 a month VAT

So thats £30,000 startup costs and £4,500 a month the business needs to make just to function.

The business wont make £4,500 a month from day 1, therefore you'd need to budget to be able to support the business and yourself in that startup phase, so budget to have another £20,000 set aside for that.

Work out what your margin will be. If its say, 20%, then you'll need to sell £22,500 a month of stock. If its 50% - which is where it would need to be, then thats £9,000 a month you will need to sell.

So, realistically, £30,000 startup, £20,000 to burn through whilst the business is growing into something profitable, and approx £10,000 a month turnover consistently to stay afloat.

yan79

motorguy wrote: »

Finger in the air stuff...

Budget £20,000 for startup and shop fitting, £10,000 for stock.

£2,000 a month shop costs.
£1,500 a month to pay yourself.
£500 a month continuity.
£500 a month VAT

So thats £30,000 startup costs and £4,500 a month the business needs to make just to function.

The business wont make £4,500 a month from day 1, therefore you'd need to budget to be able to support the business and yourself in that startup phase, so budget to have another £20,000 set aside for that.

Work out what your margin will be. If its say, 20%, then you'll need to sell £22,500 a month of stock. If its 50% - which is where it would need to be, then thats £9,000 a month you will need to sell.

So, realistically, £30,000 startup, £20,000 to burn through whilst the business is growing into something profitable, and approx £10,000 a month turnover consistently to stay afloat.

Crikey!!
Really?

motorguy

yan79 wrote: »

Crikey!!
Really?

No doubt it can be done cheaper, but try pulling together some figures yourself and see what you come out with.

Running a retail unit turns into big numbers very quickly. Also, they're static costs, so if you've a bad month, then bills still need to be paid, which means you'll roll over that loss into the next month, etc, etc.

That also implies you're going to be there yourself all the time, which makes it difficult to go to suppliers, other events, etc, so you could be looking at employing a part time member of staff OR opening reduced hours.

Mistral001

yan79 wrote: »

Hi.


The only problem is, I'm not business minded at all. I have no cash behind me, just this idea.
I don't know where to start to set the wheels in motion etc could anybody advise me please?:p

Yan

There are evening classes in accounts for small businesses etc. that is a good way to start learning.

Savvy_Sue

motorguy wrote: »

That also implies you're going to be there yourself all the time, which makes it difficult to go to suppliers, other events, etc, so you could be looking at employing a part time member of staff OR opening reduced hours.

I'd say most retail needs to have a second person on standby, in order to ensure continuity. If you say you're going to be open from 10 till 4 Monday to Saturday, then that's what you've got to do: if you've got flu, if the dog dies, if you've got raging toothache - if you don't open in the early days when you say you're going to, you WILL lose business from people who won't come back. Especially if your niche market is parents of young babies / toddlers, and they don't always find getting out in the first place that easy, and they CAN buy these things online ...

lincroft1710

Can you compete with online reusable nappy suppliers (of which there seem to be quite a few)?