How to Start a Business

jscott05

Mistral001 wrote: »

What I read from this is that you wnat to make more money than you are presently earning and you think you might do that running your own business. Some people do make loads of money running their own business. You notice them. The rest who just get by or struggle do not publicise the fact - they tend to be a proud lot.

Wrong if i could make around the same or even 3-5 k less i would be more than happy. If i could start my own business and make a good livin and some long term security i would be more than happy.

Mistral001

jscott05 wrote: »

Wrong if i could make around the same or even 3-5 k less i would be more than happy. If i could start my own business and make a good livin and some long term security i would be more than happy.

You said the thought of making a low wage again made you sick. So you are not on a low wage now? Sorry got you wrong, you have been working for more than 10 years. I see.

SailorSam

Being a small shopkeeper isn't an easy life, you're going to have to work very long hours. Then remember it's not just when your shop's open that you're working, there's paperwork and going to the wholesaler to stock up. If there's a Tesco near that's where all the 'real' shopping is done and you get the leftovers that people have forgot. Most difficult thing is finding staff that you can trust, you can't be there all the time. All over the Country small shops are closing down.
I'm not saying don't go self employed, it can be much better than a 9-5 thing, but i don't think a shop is the way to go.

Savvy_Sue

jscott05 wrote: »

Wrong if i could make around the same or even 3-5 k less i would be more than happy. If i could start my own business and make a good livin and some long term security i would be more than happy.

I'd say there's very little long term security in self-employment: the buck stops with you, which is fine as long as you're fit and healthy and all's right with your world, but especially in anything retail then you will have to prioritise that over anything else! Or shut up shop ...

I've sometimes given the example of a friend who was running a reasonably successful little cybercafe in a small town in France: he did most of the hours, his wife did a few, and they had one part-time member of staff. Then his wife became ill, and was then hospitalised in a city over an hour's drive away. He had two pre-teenage children to get to and from school. It just wasn't possible to keep the place open.

jscott05

Lot's of good advice most of the thing's i had thought of. But reading them from other people brings home how diffucult it could be to get the same balance i have just now of decent pay and not have to work 60 hour weeks.

dktreesea

Setting up business in a bricks and mortar shop comes down to how much capital you have to invest. That will determine things like what kind of shop, be it leased or freehold, that you can afford and, importantly, the location.

Just to illustrate. This cafe, http://www.daltonsbusiness.com/cafes-for-sale/established-cafe-with-full-class-3-conse-edinburgh-midlothian-scotland/312631 for £42k, doesn't have enough seating, is in a poor location, with little or no passing trade, - I wouldn't buy it for £10k, let alone £40k plus.

This one, for £49k, looks a better bet. http://www.daltonsbusiness.com/cafes-for-sale/established-sit-in-and-takeaway-cafe-and-edinburgh-midlothian-scotland/304844
Good seating, a full hot food licence, a much better location with plenty of trade.

I still wouldn't buy it, because the rent alone is £22,500 per annum, and that plus the business rates means you'll be working for the landlord and your staff before you get anything for yourself.

The problem with bricks and mortar shops, especially food, is that at some point you are going to have to bite the bullet and employe people. Even if you get away with paying minimum wage, and are lucky enough that they don't rob you blind, the reality is you'll work all the hours under the sun and still be paid last. Your landlord and staff will be paid before you.

You could have a turnover of £100k per annum and still only make £3k to £5k per annum after paying for everything, and everyone, else. And it's 7 days a week.

Corner shops? There used to be one downstairs. He had a great business. Then, a few years ago, another guy opened up across the road. He took a lot of the old folk who didn't fancy crossing the road (from the local sheltered housing) off the first guy. Two more years go buy and a Costcutter franchise opens up, where there used to be a wine shop. He sells a lot of groceries as well as alcohol and stays open until 10pm. That made the businesses of the first two guys a lot more marginal. The killer though was when Asda opened up a supermarket just down the road. Morrisons were no threat because they close relatively early. But a 24 hour store? People will just jump in the car and drive for a few minutes if it means they can buy their stuff at half the price of the corner store.

If you still fancy a business, my advice would be to build one up, part time, while holding onto your day job. If it takes off and starts to do well, well enough to replace your day job income, only then give up the day job.

paddyrg

Personally I'd be wary of a premises business for now, especially ones where you're competing head on with similar businesses and fickle crowds. Do you have an interest or skills which you can use to find a niche? For instance if you had worked as a fireman and spotted a gap in the home fire prevention sector which you could now find a suitable service or product to fill, then license/protect it and start rolling it out nationally? Too many people think running a retail outlet is easier than working, but find out it is still working, but longer hours. Any insight you have into jobs, markets etc will make the difference between you and the next guy.

Slinky

What is it you are doing now? Maybe we can make some suggestions.

I agree with the above, taking on a bricks and mortar business with no experience in that area at all is a great way to throw away your redundancy money.

There are loads of ways of earning your own living without having to invest huge amounts of money in it. I work from home as a publisher. A neighbour runs a lawncare business he built from scratch. I have customers who are gardeners who are run off their feet. My mother in law struggled for ages to find somebody to clean her windows. The bloke who cleans my oven is always booked up.

Service based businesses, particularly those which the elderly will use, gardening, cleaning etc will always find customers. We have an ageing population and a lot of older people are happy to pay for somebody else to do the things they can no longer do.

Be wary of franchises though, do thorough research and talk to people other than the 'stars' the franchisor will direct you to. See if you can do some digging around on companies house and find out if it looks succesful. If the franchise is for Big Buns, you may find accounts for Big Buns (Bedford) Ltd, Big Buns (Bradford) Ltd etc etc. If there's loads of dissolved companies, that will tell you something, although not every franchisee will have registered as a ltd company or with this naming pattern.

A shop is not the answer. Even if you find a great location, everything can be thrown up in the air if a supermarket decides to target the same area with an Express/Local store as is happening near me.

FatVonD

Another here who lost a whole bunch of redundancy money on a startup business, even though it was loosely allied to my skills. Much as I love the idea of self employment it would seem that there just isn't anything that will pay me what I earn in my job (and in the great scheme of things, with so little hassle.)

I found too that it was hard having to service rent AND a mortgage. Friends of my ex husband had kebab shops/chicken shops etc and they all lived in the flat upstairs (sometimes sharing a bed on a shift basis!), their mindset was totally different, the business came first and THEN, when they'd made some money, they thought about buying property. I truly believe that those of us that come to it later in live with an established lifestyle need to earn too much money to make it workable.

It has been interesting to read though the views on running a cafe. My son is at catering college and ultimately a cafe/sandwich bar may well be the sort of business he goes into (obviously after working in other people's businesses to learn the ropes.) Are any of them successful and what should he look out for, is it all down to location?

Savvy_Sue

FatVonD wrote: »

Are any of them successful and what should he look out for, is it all down to location?

Yes, some are successful, although equally you only have to look at your local high street to see how rapid the turnover can be! Oh look, that was so and so's last week, now it's such and such, and next week you find it's him and her's.

One of the saddest phone calls I ever took at the charity I work for was from someone who'd got a load of catering equipment and food to get rid of, fast, because they'd been on the point of signing a lease for a cafe and had then realised that the terms were too draconian. She had a weekend to dispose of these things, and said they were then going to be homeless - I guess the lease had included a residential flat above the shop.

Still, I suspect they'd have been worse off if they'd signed an unfavourable lease and been unable to escape from it.

and no, it's not ALL about location, but if the location is wrong then that is the one thing you will NOT be able to change!

If you look back at previous threads on this board about coffee shops, the advice is to find a niche, do it well, and stick to it, at least initially.

Quick bite or leisurely coffee stop? Offer wifi, or not? Offer more savouries and sandwiches, or go for cake? Hot food, salads, 'speciality' food? Trying to do ALL of that at once is unlikely to work.

Every time he or you frequents one of these establishments maybe you should make a note: what was good, what would you change? What time was it, what did you buy, what was the footfall like in that time? Crucially, how long did you have to wait to be served? How much did it cost? And so on ...

I was away with my sisters last weekend, and we went to two craft centres with cafes, both well off the beaten track but both very busy, drawing in customers from all around because of the range of shops available. We went to a cafe in a small town centre too, and had coffee one evening in a 'posh' hotel. If I'd any interest in running a coffee shop, I'd have taken notes in them all!!!