Help Starting up a new business

Lottymark

Currently working as a nurse and I really want a career change.
I have recently had some money from a claim and want to start my own business.
I want a cafe or tea rooms in the manchester area but no clue where to start cos only lived here for 4 years.
I have no clue where to start area business plan so on.
I just want a change and it to work. Any advice would be grately appreciated.

TheTracker

Get some experience working in the industry before starting your own business.

Pennywise

Cafes/tea rooms are notoriously risky ventures. There are some little goldmines but a lot of dead ducks where you'll be lucky to make minimum wage for yourself.

They're also often notoriously over-priced, often asking £50k-£100k for a lease that only brings in £10k or so profit into your pocket per year. That's usually when someone has bought one, realised it's pointless, and trying to flog it off again for the same money so they don't lose.

It will need to be a fairly busy/substantial undertaking to replace your existing wage and earn enough for you to be able to continue paying into a pension to replace your NHS one you're gaining entitlements for.

So, first thing is how much money do you have to be able to put in to buy a business? Banks won't lend much at all, maybe £10k unsecured on a £50-£100k business purchase if you're lucky, so you need plenty of savings to put in or be able to re-mortgage your home or get a hefty loan from friends/family, and that's just to buy the business/lease.

Then, how much savings do you have to replace your existing wage for a few months whilst your new business beds in, or do you have a partner who can pay the household bills for those few months?

Assuming you can clear the financing hurdle, then you need to start looking around, I'd suggest the online business sale websites (daltons, ukbusinessforsale, etc -just google and loads will come up). That gives you an idea of what's available, pricing, etc. If you find any you like the look of, you need the full accounts for past 3 years, and then get an accountant to look over them and check how realistic they are and whether the business is viable. Then you need to see the proposed lease and consult a solicitor to get advice on whether the lease has any nasties etc.

Quite a long journey from where you are to where you need to be before you even think of committing yourself.

Aquamania

Lottymark wrote: »

Currently working as a nurse and I really want a career change.
I have recently had some money from a claim and want to start my own business.
I want a cafe or tea rooms in the manchester area but no clue where to start cos only lived here for 4 years.
I have no clue where to start area business plan so on.
I just want a change and it to work. Any advice would be grately appreciated.

If you want a career change, and despite wanting to start your own business have no idea how to, I would suggest you start at the job centre

Mistral001

As others have said, you have chosen, perhaps the riskiest type of investment for your money. You could lose it all.


However, if you set on this investment, I would not introduce yourself as an ex-nurse who has recently received money from a claim to anybody you deal with in connection with this project. You have to portray the image of a hard-nosed business person knowledgeable about the business you are getting yourself into in my view. That might mean making yourself familiar with the catering business if you are not already familiar and many financial matters.

More than anything, in my view, plan always to have some capital in reserve. People will love you at the beginning, as you have money to spend, but that can quickly change when you are running low in cash.

cavework

OK.. cafe!.
.tea room Manchester?
You have already lost my attention as a potential customer..
Why?
because I imagine there are already loads already established in this area
So what you need is a niche market.. something no one else offers ( but be prepared , if you find it others will jump on the bandwagon really fast)
So .. do lots of research, find out what people would like that they aren't getting now before you commit..
I would be looking at the new diet fads.. Pallo? think that's what it is called ?? Shed loads of others..
and delivering to local businesses for corporate events

paddyrg

How can you weave nursing experience into your tearoom experience? Is there a niche where your current skills and qualifications don't get wasted altogether and you can still use them indirectly? I've no idea, but there's no point going head to head with Costa without a differentiator.

oldoakey

You need to do the boring bits first and that is writing a business plan, this will help you understand what the turnover of the business needs to be to earn you the living you would need to keep paying the bills etc.

You can get free software online where you fill in all the blanks this will give you a guide to how much you need to sell each day to make it worth your while, its no good doing 40-60 hours a week if your only earning £5 per hour with no holiday pay, no sick pay etc. and you have sunk all your savings into it and are possibly stuck with a long term lease. (make sure you get a break clause or two so you can walk away if need be)

Sorry if I seem to be trying to put you off its just if you do your homework it will at least give you monthly sales and profit targets to aim for.

xxJudexx

You need to do some market research to find out what people want and if there is a need for another tea room in the area you are looking at. Are there any outlying towns/villages which have more independent shops? Some people will chose to shop locally and you could use this to your advantage. Could you offer something else as well? There is a coffee shop near me which has just opened up and they offer craft workshops in the evenings and on Saturdays. They are doing really well and seem to be fully booked every time.

You could consider contacting a busy tea room out of your area and asking them some questions on how they set themselves up, some won't give you the time of day but you might strike lucky!

I think as long as you are determined, put the time in before taking the plunge and are prepared for the lean times you will be fine.

Good luck with your venture.

Errata

I think the first boring bit to do is to understand the vast difference between a cafe and a tea room.

lost_for_words

Can understand a nurse wanting a career change especially at an hospital like the one I worked as a porter. While we got breaks in our 12 hour shifts nurse's never and their job can be so challenging sometimes. Maybe use your money on a new skill, and as others have said, find something that's different. I wish you well as I am kind of in the same boat.