Leasing/renting a shop - advise required on starting up

Savvy_Sue

it's a big step from selling online or doing popup shops to having a permanent presence, and I think the tone of replies reflects this: the OP seems to be going in with her eyes open which isn't always the case.

Other things to think about as well as the lease, your repairing liability and break points are utilities and waste removal. You'll need a contract for waste removal and this will probably be fixed term with a set notice period. Just another thing to be aware of.

mrs_sparrow

paddyrg wrote: »

I think Mrs S knows her market well enough and is willing to take a punt to expand the business - don't we all take punts with every new line/gig/contract? If she was a complete new starter the words of caution might feel more appropriate, especially as she's addressed a lot of peoples (genuinely concerned!) concerns - I think I'd be getting wound up myself! ;-)

:T Thank you.

I reply but it seems people do not read these replies and that is frustrating. I appreciate it is hard to understand why I have this niche, but if I post here what I do another small competitor could come along, offer a better price or higher rent and take this opportunity from me.

Someone said to me that every business has to take a risk to expand and this is true. I am trying to do this without borrowing any money as well.

mrs_sparrow

Mistral001 wrote: »

At the end of the day a business will have a monopoly on the supply of these items as far as I can see. No doubt it does happen, but aren't public authorities supposed to stop this form happening. Perhaps a plan B as a backup might be worthwhile before signing a lease, if paying the rent is dependent on keeping the monopoly

I do not need a plan B, my current level of sales can pay the rent.

It is not a monopoly, however, my supplier will not let another retailer sell these products in this town once I have a shop. Opening a shop means I get more loyalty from my supplier as I am offering a bigger service.

My products are not just for children and the majority of my customers are actually adults, however my customers are aged from 12-112.

There is nowhere selling my products round here, there are in the smaller towns around this town, but not in this town which is around 20 times bigger than the nearest town. Which is why I have so many customers already.

So, no monopoly. People can go off and buy online if they wish - that is their choice as there is no logo. Some people will shop online to save a few quid, others will choose to buy in person and get the benefit of the full service I offer and ensure the item is right for them first.

mrs_sparrow

Savvy_Sue wrote: »

it's a big step from selling online or doing popup shops to having a permanent presence, and I think the tone of replies reflects this: the OP seems to be going in with her eyes open which isn't always the case.

Other things to think about as well as the lease, your repairing liability and break points are utilities and waste removal. You'll need a contract for waste removal and this will probably be fixed term with a set notice period. Just another thing to be aware of.

I do not need the waste removal Sue, I have already checked, I can take the waste home with me and use the skip bag I already have at home for waste removal (agreed by the council for using when I was doing this from my home address). The waste I have is minimal anyway.

I have also checked on utilities and, yes, I have a repairing liability. However, the shop has flat on top, owned by the same council and should something happen from those, the council are liable to fix it. I appreciate that someone random could happen though. Again, that comes with the risk of expanding.

Anything I can think of, I have thought of and discussed with my husband.

I also have an appointment with a small business advisor on the first week of January to run over everything and apply for any grants I might be entitled to as a start up. Even a current established business can apply for these grants if they have the opportunity to offer a current product to a new client and expand the business. Because the schools are new clients, I qualify for this so may be able to get some money towards advertising.

martindow

mrs_sparrow wrote: »

yes, I have a repairing liability. However, the shop has flat on top, owned by the same council and should something happen from those, the council are liable to fix it.

Have you had the clauses in the contract read through by your solicitor? You seem to suggest that should, for example, the roof need replacing you would not be presented with some or all of the bill because the flat is above the shop.

You may be right, but don't assume anything and get the contract checked.

mrs_sparrow

martindow wrote: »

Have you had the clauses in the contract read through by your solicitor? You seem to suggest that should, for example, the roof need replacing you would not be presented with some or all of the bill because the flat is above the shop.

You may be right, but don't assume anything and get the contract checked.

I most definitely will, thank you. I do not have the contract in hand yet as I have been negotiating the things inside that I want done before taking occupation. Once these are agreed, or not, then we will move onto the contract stage. Things are obviously moving much slower because of Christmas.

loveandlight

Well done mrs_sparrow for having the courage to go out and make things happen. I can tell from your replies that you will do well in going offline. Make a list of questions in readiness for when you meet your solicitor to ensure you maximise your time with him/her. These are very exciting times for you and I wish you every success.

mrs_sparrow

Well, as promised I am coming to update this really as I have not been on MSE since I posted this. Sorry, just read it and it is long.

Getting things sorted with the council has been a complete nightmare but with the involvement with MP's and head of council things are moving. Yes, I did get a solicitor to do things for me.

I signed the lease a good month ago and some work inside was supposed to have been done for me to move in - the lease would be dated for the day I took possession - but the work was not done and the guy just kept on fobbing me off so, in frustration, I went to my MP and head of the council. Next thing I get an email from someone else and they were now dealing with things. I now have been told that the guy who was supposed to be sorting everything out 'has left their employment'. So it sounds like he got the sack in the end, but someone else has taken over and the work that was supposed to be done before I moved in was completed within a week. It is ready to go now but I have asked them to wait until after the Easter school holidays and they agreed to this (to my surprise tbh).

So we are where we are today and I will get the keys in a few weeks time.

By the power of Facebook there has been a huge buzz about me opening and I have a huge 'queue' of people already - every day I get more I have someone messaging me asking for an opening date. So yes, I am excited.

I have a break clause at 2 and 3 years so if it is not working out I can give notice after 17 months to close on the anniversary of the 2 years. My lease is 4 years so I am happy with that too, I felt this was perfect for me as a starter premises.

I get 50% business rate relief and another £1000 retail relief so my BR will be around £1000. I also managed to negotiate 3 months free rent which helps. It should have been more as I was promised more verbally but when it came to putting it on paper the guy was a complete snake and I was backed into a corner to accept because of where the business was headed. Something I have complained about since the new person took over. I did get 'lucky' though as someone I know was getting a shop and he gave it to her and, behind her back, gave the same shop to another 2 companies and then invited bidding for it....!! So at least that did not happen to me.

I am nervous, I will be honest as it will be an entire lifestyle change for me and my family, but the buzz from people has been fantastic and I am really looking forward to the challenge my new shop brings. Every day I get a message on FB asking when I am going to be open. I have so many people waiting I cannot do a big grand opening as I will have an influx and will not be able to cope. The last thing I want to give is a second rate service as I am too busy.

Even though I am an established business, because I am bringing something new to the locality, I applied for, and got, a £500 new enterprise grant - although not much - it means I can buy leaflets, mannequins and bras as I am starting an education programme for teenage girls (although I have had adults complain they want to be invited too so I will doing evenings for adults too).

As for what I do.... well, I am a bra fitter, I sell 'proper' bras and swimwear in all sizes not the rubbish that is available on the high street. They are all high end brands, some of which are designer.

What happened to get here? In my little pop up shop I booked a fitting evening for someone and her teens and there was another lady with her - she did not have a fitting but after I finished the girls she told me she was a PE teacher and they wanted me to go into their secondary school to give talks to the girls on breast care and why it is important to wear a bra that fits. The school is telling all girls they need a sports bra and I will be the recommended 'go to' place to get them from because they was so impressed with the service and fitting I gave. They are waiting to give this announcement until I am open as they do not want the girls going off to the high street stores and there is nowhere else round here to buy 'proper' sports bras. Yes, there are substandard cheaper alternatives in the area but, as with shoes, there will always be people wanting to get the better quality fitting and service. I do appreciate that some people will still go to Primark and Tesco however, there are some sizes not available on the high street here and I stock them all so this means people no longer have to get in the car and drive an hour to the next big town to get what they want, or shop online, these are the customers that will use me.

As you can see, because of the schools and what I sell my small pop up shop was not suitable to have young girls coming and going so I needed somewhere bigger and more appropriate. It also turned out the guy renting me the room had no planning permission to be there and that is why he did not want me advertising - but we won't go there!! What I do has now been picked up by another 2 secondary schools as well as girl guiding groups and some other schools where their year 6 girls are given talk on body care. The products I sell I have a territory on so no-one else could come in tomorrow and open a shop selling these same brands, it has nothing to do with monopolies but this is just want the brands do to protect their retailers. I also am setting up a fitting school several nights a week and I have enough people interested to fill up the weeks for a good 3 months!!

So you can see why people going on about monopolies and buying items from certain places by schools being disallowed was not really appropriate in my case - nothing has a school logo on, it is simply an item of clothing that all girls should wear once their bust starts developing. If 1/10 of the girls from these secondary schools, plus their mum, buys one item a year from me this will keep me in business and pay me a wage. And this is with the discount I offer if they come for a fitting to buy it. Anything else is a bonus. I also have another 8 schools in the area I am going to approach and offer these talks.

Will it work? No-one ever knows do they? I guess time will tell!! Nothing ventured, nothing gained. All I hear though is 'finally, why have we never had a proper bra shop round here, I can't wait for you to open'.

paddyrg

Great, glad it's all coming together and I'm excited for you! Yes, it'll be hard work and a change of pace but full credit to you for giving it a go.

somethingcorporate

Keep us updated please!