decisions, decisions but which one is right

winniepooh

Hi Everyone,

I posted on here a while back but I'll just recap.

I started a haberdashery stall on the market 2 days per week - I've got another job for 4 days.

Its been going well but its hard setting up and putting away because I dont drive I rely on my dad and his van, hes 65yrs old and is not in bad health but he feels the cold (well we both do because its been bitter) Ive so much stock now the it fills a secured lockup.
A shop has caught my eye which we viewed yesterday. The landlord will drop the rent by half and has offered a 12 month rolling contract.

So now im battling mentally with doubts.
Pros
I would be able to stock more
I wouldnt be relying on anyone
No more early starts so I will be able to take my little one to school
The shop is only a minute away from where my market stall is

Cons
I would have to quit my 4 days job
petrified my not going to make enough
the shop needs a bit of tlc and decoration


Any Thoughts?

zygurat789

winniepooh wrote: »

Hi Everyone,

I posted on here a while back but I'll just recap.

I started a haberdashery stall on the market 2 days per week - I've got another job for 4 days.

Its been going well but its hard setting up and putting away because I dont drive I rely on my dad and his van, hes 65yrs old and is not in bad health but he feels the cold (well we both do because its been bitter) Ive so much stock now the it fills a secured lockup.
A shop has caught my eye which we viewed yesterday. The landlord will drop the rent by half and has offered a 12 month rolling contract.

So now im battling mentally with doubts.
Pros
I would be able to stock more
I wouldnt be relying on anyone
No more early starts so I will be able to take my little one to school
The shop is only a minute away from where my market stall is

Cons
I would have to quit my 4 days job
petrified my not going to make enough
the shop needs a bit of tlc and decoration


Any Thoughts?

Produce a budget.
Do all the expenses first.
You know what your margin is so use the reverse calcuklation to find out the turnover required to cover them.
Now for yourself, the margin is all yours now.
Now you know the tuirnover required to make a go of it
Can you sell that much?

Seanymph

Don't forget to add in the business rates to your calculations - and insurance.

Both can be very high.

Savvy_Sue

On a shop, you'll have to pay biz rates (check what they will be), refuse disposal (trade not domestic), all utilities, insurance. And in each case - and with the rent - you'll be tied into a contract which will mean you'll have to pay even if you DON'T make any money. Also, you'll have to be open when you say you will be, which may mean staff. What will you do in school holidays?

Before you sign anything, get proper legal advice (ie the kind you pay for). You need a solicitor who specialises in commercial property. They may suggest using an agent to haggle over the rent, and they should certainly make sure you're getting the best deal on repairs, redecoration etc. Do make sure you're not left with a lease where at the end of it, YOU have to restore the property to a completely refurbished condition.

As zygurat says, your first step is that budget. Remember that even if you're taking £500 each day you're on the market, you may not take that much in a shop that's open 6 days pw - people might spread their purchases rather than more customer / people buying more.

I wouldn't rush it (but I'm very risk averse, which is why I don't work for myself!!!) - the weather WILL get better! And is there a reason you can't learn to drive yourself?

plzhelpmesave!

I would say stick with the stall for a while - Much cheaper and you get your customers coming to you and looking for you on those days you are there, and new people who can walk past and find you when looking for other things. In premises, you have to spend a LOT more time and money getting customers to come in through the door....

zygurat789

plzhelpmesave! wrote: »

I would say stick with the stall for a while - Much cheaper and you get your customers coming to you and looking for you on those days you are there, and new people who can walk past and find you when looking for other things. In premises, you have to spend a LOT more time and money getting customers to come in through the door....

Actually why stick with the stall, how many markets are there in your area?

DKLS

Does expanding into premises fit with the current business model? would premises allow you to ramp up the model.


I would be very aware about your stock levels and how you manage them, I once asked a MD of a large corporate what kept him up at night, he answered 'what's in the warehouse, as until it was sold it is just incurring costs..

winniepooh

zygurat789 wrote: »

Actually why stick with the stall, how many markets are there in your area?

The nearest market to ours is five miles away

patman99

Op, have you thought about learning to drive yourself ?. That way, you would not need to rely on your dad and his van.

Also, the main thing to think about when switching from a market stall to a shop is footfall. Whereas people may well actually come into town to specifically visit the market, they may not visit your shop. Also what would happen if another person started to sell the same stuff as you on the market stall you vacated ?.

If you want to increase trade a bit, then try selling online via sites like ebay or ebid, or even try your own site. Adds an extra potential income stream with minimal outlay.

winniepooh

Thank you everyone for replying.

I've rang the council and I would be able to claim rate relief on the rateable value.
I can't have driving lessons because of a sight problem that I have had all of my life. ...gggrrr very annoying.

Very soon I'm going to have to expand if I stay on the market so for standing for two days per week its going to cost me £102 per week where the shop would cost 120 per week. Insurance for the stock is 25per month which is £4.20 less a month which is what I'm paying now. Product and public liability insurance up to 3million is 95 per year. Which I currently have for the market and im paying 68 per year

plzhelpmesave!

Winnnie, what are your reasons for expanding? You will always incur other expenses when you take on premises and there can be a lot of looooong, lonely days when you are running a small shop - and i speak from experience. Most of your time will have to be spent marketing your business to get in those customers - and there ae ususally costs of marketing that most of us don't include in anywhere.

Your dad having to drive you and having a lot of stock are not reasons for you to take on a lease and go into a shop - they are why it is currently diffiucult for you to keep the stall going but please look into everthing very carefully and get some advice from start up advisers.

I speak as somone who has jumped into business and premises and struggled to make it work so my comments are based on my personal experience - wish you every luck hun x