How to Start a Business

FatVonD

Thanks, Sue.

It's still a long way off yet, he starts level 2 of his course in September, (he's taking level 1 on day release during years 10 and 11 at school), and a requirement of the course is that he has a part-time job in catering alongside his course. We live quite close to some thriving independent cafes so I will be suggesting he look for work in one of those and takes copious notes!

jscott05

dktreesea wrote: »

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.

Great post mate show me what i would be up against. The idea of trying to set something up just now is something i will look at only work 4 nights so do have spare time.

THEMONEYSPIDER_2

Not Business advice, just general advice:)

You say you maybe have a year before you are made redundant, and that the skills you have are not easily transferable, so if you end up taking another job it will most likely come with a pay cut.

I would suggest cutting your own pay now, as much as possible, put the excess into savings, learn now to live on a lower wage.

Savvy_Sue

THEMONEYSPIDER wrote: »

Not Business advice, just general advice:)

You say you maybe have a year before you are made redundant, and that the skills you have are not easily transferable, so if you end up taking another job it will most likely come with a pay cut.

I would suggest cutting your own pay now, as much as possible, put the excess into savings, learn now to live on a lower wage.

And you could also use that year to develop some more transferable skills, if we've put you off the idea of starting your own business!!!

Another thing to think about: you say your wife works part-time, would she like to go full-time, does she have a dream to fulfill, why not a bit of role reversal?

It wasn't the same situation, but for a while DH was home more than me, so did the school runs etc while I worked f/t to keep our heads above water.