Starting a hire company online

N3WLIFE

Hi everyone, thanks for looking and forgive me as I have little/no experience in this.....

For years now I have wanted to start my own hire business online, renting expensive designer handbags.

I had originally thought of the idea, when there were no companies existing that did the same thing. Now there are a few, but I still think I can provide a service, as I have looked at the other websites-and I have different products I could offer.

That being said, I have no experience whatsoever in starting my own business. But I am eager to give it a try. If I don't try, I will never know.....

I have only recently started saving (1 year) as I am working part-time. And would rather not deal with loans.

Obviously designer handbags are not a necessity, expecially in the current climate, but I do believe that I could make some sort of earning from it.

I have around £5000 in savings, and my current handbags I own have a current value of around £20,000.

I would also like to eventually include shoes at a later date.

Where would I start with this? I want to maybe speak to Bright ideas trust, but would they need to see a business plan? would they need to know how much I intend to make? as I have no idea.....

I have looked at website builder wix.com, is that good for my sort of business?

I have looked at websites for logos (£25) would you advise working on one now?

I have also been looking at packaging, labels etc.

I also need to look at delivery/pick up options.....

I have started a business facebook page to get the word out...

Also I need to obviously look into the legalities, and how to protect myself from online fraud etc....

Any advice you guys could give me would be much appreciated, as I'm sure you can tell, im pretty clueless lol

Thanks guys

P.S. Am I allowed to say my fb page is bag a beauty (rental service)

Any likes on my page would be very much appreciated! :-)

paddyrg

Alas this isn't a forum where you'll get 'likes', but you will get some pretty straightforward business advice and ideas and opinions from business owners. I know which I'd rather have

Firstly, blimey, 20 grand in handbags? No wonder you've only saved a grand! Do people really hire them? Would you have hired instead of buying? Look at your target market and assess it for size and their reasonings.

For instance, I'm assuming these are extremely fashion-led, would people only rent the newest models before the Chinese knock-offs devalue that style? Or before the next seasons colours come out? If you didn't pay full retail for your lot, what's to stop someone buying last year's at a less insane price?

Security - firstly are you 100% certain all your bags are genuine? If you hire out a fake by mistake that's the end of your business rather sharpish. Now you have to be able to ensure the exact same bag is returned, and make it absolutely apparent that some wide girl can't rent yours, return a fake/old/whatever bag and run off with your cash. How will you handle deposits (which I guess we'll be rather high)?

Wix? £25 logo? Aren't these supposed to be premium products? You can't go cheap on asking for top dollar. Design-wise you run risk of falling afoul of protected designs for the brands, expect lawyers letters!

Do I think it's a real business? No, but it's not my sector, maybe you've got the next big thing. I can't see it being credible starting it with a grand, could you liquidate some of the bags to get another 10 grand?

Wywth

Plenty of places you can buy some likes on FB - just google.
(about $0.01 each, minimum purchase applies)
As they are so easy to obtain, what's the point?

paulwf

When I worked in the bicycle industry we found that hire was a nice little sideline...you buy a product at the beginning of the season at trade, hire it out then sell it at the end of the season before it gets too battered. We would always try and buy below standard trade price as a lot of the major brands gave a special price on demonstrator products as once someone hires something they are more likely to buy it.

To me that's the key part of the business...you need to be able to buy at trade then sell on the items while they are still in good condition and restock with the latest fashions.

Hire items generally have a very hard life and will get used and abused, that's fine with things like roof boxes but the value of your bags will rapidly depreciate. The potential for theft and fraud when returning is very high as already mentioned. I also agree that for premium products a wix website and £25 logo is nonsense, looking to keep costs low is the way to go when starting a business but you're crossing that line where you are looking to cut corners. Luckily you're at a very early stage so you can develop a better strategy.

You already have the stock and you already have the capital investment and it isn't the end of the world if you give it a go and lose a couple of grand especially as you're not taking out a loan. Therefore I don't want you to be put off as you might as well give it a go. However I think you need to really develop your business plan.

Adding more products will be the way forward, the current business is rather limited. Shoes might not be the best start as you need to keep around 5 sizes of each design so a massive capital outlay, much better to find products where one size fits all.

Don't forget to think local, exhibiting at something like wedding fayres might have a better initial response than online. You will also need to develop mutual relationships with similar businesses, get outfit designers to recommend you for accessories and in return you promote them to your clients.

Fishingtime

I don't know much about handbags.

But would the women not say of your bags, That is so last year if it were more than a few months old

robatwork

My first thought is you would need some good insurance and a solicitor ready to roll.

Am sure there are people out there who would hire your real Gucci bag and return an identical knock-off (or the original but damaged). Your T&Cs would have to be watertight.

I think you'd be spending a lot of time in court. And for that reason I'm oot.

cheesemelts

Wow £20,000 in handbags, mind you if you you have the right ones they are an investment for sure.

cheesemelts

Robatwork, I have had people do that on ebay.... claim there was something wrong with it and try to return it when it is perfect. Never realised what it was all about.

CKhalvashi

robatwork wrote: »

My first thought is you would need some good insurance and a solicitor ready to roll.

Am sure there are people out there who would hire your real Gucci bag and return an identical knock-off (or the original but damaged). Your T&Cs would have to be watertight.

I think you'd be spending a lot of time in court. And for that reason I'm oot.

This was my first thought.

It's very different to say, car hire, when there is clear ownership of the property.

CK

Brassedoff

You might have the idea of a good business. What you are proposing is nothing new, it been around for a long time, I invested in this idea way back in 2010 through a friend called Anna who owns a firm doing the lot. Look for Girl Meets Dress and you'll know what I mean.

Your Achilles heel is you are limiting your outlook. Yes hiring out a bag will be easy online, but I know my better half ties up her bag to her dresses, so doing it online may be a problem co-ordination issues.
The one I invested in does the lot, the Shoes, Bag, Jewellery and a few other accessories.

Do you know what sort of returns you are looking for?(don't post it), but for a retail item that Anna buys for £350 (sells for circa £500), she ill only get £10-20 per hire (a hire where the user wants it for a day can take the product offline for 4 days), then cleaning!

Anna gets face to face deals, when I say face to face, I mean, networked the designers.

Good luck with your idea. Your website will have to be bespoke, no if's or buts, the volume of changes and design means a Wix site cannot do the job, although there's nothing wrong with a Wix.

So apart from the above, can I ask you if you would like to marry me? £20,000 of bags is cheaper than my wife who gets one for that "outfit" or that "event" and uses it once!

CKhalvashi

Brassedoff wrote: »

Your Achilles heel is you are limiting your outlook. Yes hiring out a bag will be easy online, but I know my better half ties up her bag to her dresses, so doing it online may be a problem co-ordination issues.
The one I invested in does the lot, the Shoes, Bag, Jewellery and a few other accessories.

This is something I hadn't thought about, and this is also something that with the prices mentioned below, you may need to take into serious consideration.

So apart from the above, can I ask you if you would like to marry me? £20,000 of bags is cheaper than my wife who gets one for that "outfit" or that "event" and uses it once!

I didn't realise you're male :eek:

Sorry Brassedoff, I think I've referred to you as 'she' several times!

CK