Starting up my own shop, personal loan v business loan?

Pennywise

ajc18 wrote: »

"I'd need to view your premises first"

That's more a matter of ensuring that their quality brand isn't diluted or jeopardised by selling to cheap/nasty shops or ebay spare bedroom merchants who'll undercut their established retailers.

Some top brands operate more like a franchise basis where they want consistency of their displays, pricing, etc., basically so their section of your shop looks the same as all their other outlets.

BakerBoy

ajc18 wrote: »

BakerBoy this is exactly what we have been searching for, any thoughts on where we might be able to source something like this?

No because I'm not in that trade, but I would start by looking for a trade body that supports the industry and who would know of any magazines for traders.

paddyrg

Pennywise wrote: »

That's more a matter of ensuring that their quality brand isn't diluted or jeopardised by selling to cheap/nasty shops or ebay spare bedroom merchants who'll undercut their established retailers.

Indeed.

One thought might be to see if any of the suppliers you want have massmarket sub-brands they'll let you start with. Or at trade shows if there are any new entrants to the UK market who are keen to be taken on anywhere to build exposure?

ajc18

Sub-brands would be a great start off. If we could just source trade shows for specialist running apparel....

BakerBoy

http://www.fibo.de/about_the_trade_fair_2.html

mrs_sparrow

Are there any factory stores you can visit? I started my business buying from the brands Factory Store, once I had been established a year then I was able to get an account as I had trading time behind me.

I started off using my own money and now I am going into this borring just a few thousands - but I have got a raft of 0% cards behind me to fall back on to buy stock in. I di already have stock but I need much more than I already have because of the market I am aiming at.

Good luck with your shop. I have just signed my lease today for my first shop. Everything seems to take forever!!

bris

Sorry but the hard truth is you have absolutely no idea what you are doing, the brands you need will not deal with you and even if you could get an unsecured loan for 25k it wouldn't even touch the cost of setting up, fitting out and stocking a shop.


The other problem is you cant compete with the big boys, for price and variety as well as the fact any premises you get will be out the way and pretty much in dead areas. The local high streets are dead for a reason, please don't throw your money away, it will end in tears.

firefox1956

I'm with bris on this..........forget it no way will you make any money in this sector without spending a shed load of cash.
Sorry but that's the way it is

paddyrg

I'm not quite so down on the idea, yes competing with the big boys, but it's a sector where quality independents can attract people who are really into running and who are prepared to spend well for expert assistance compared with Sports Direct. People go out of their way to frequent 'Run and Become', for instance. You don't have to compete on price alone.

Now, we all know Sports Direct license from some brands to make their own branded gear. It's made to a price, and is not terribly high quality stuff, often. They have their audience, OP will have theirs, the overlap may not be huge. If the OP can get some decent secondary brands or new to market quality brands, they have a unique and relatively attractive proposition. New to market brands may be a lot more eager to share risk in return for shelf space, and in return build a presence together. It all depends on the route the OP takes. I agree there's little point going head to head with a discounter (well, spurious discounts, anyone ever seen a single item 'full price' in SD?), but if for instance they are offering gait-based shoe suggestions, having people running up and down the street to fine-tune the kit to the runner, well that's a different proposition.

Bobarella

Hi AJ
Sticking my neck out a bit to tell you about my personal experience. 4 years ago I decided to follow my own dream which was to set up a neighbourhood cafe.
I took on a premises that needed a lot of work and therefore cost a lot to renovate. But the rent was extremely low & I did a lot of market research with locals to test the take up before going ahead.
In the end I took out a personal loan and also used equity from my property. These two combined were enough to get me open.
The business did take off and turned over £100,000 in its first year so on paper it has repaid me what I put in.
All I can say is many small businesses go for it on a wing and a prayer. And like many things in life if you wait for every factor to be right then you won't ever take a risk. If you need a 100% guarantee you won't be about to make the worst decision of your life, that's not going to happen. But would you want to be looking back at the end of your career with unfinished feelings about all of this?
Anyway just putting my two bits worth in. Small business life is hard and unpredictable. But also I love the freedom and ability to create my own situation and drive it forward.
Good luck with your decision.
Bob