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Debt and renting a Shop

2

Comments

  • samkma
    samkma Posts: 130 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Thank you for the responses, its nice to read the varied views that echoes a same message - DON'T go that route.

    As I don't want to respond all the questions asked above here are a few!
    My illness is done and dusted, I am free of it completely (Thanks to the Ayurveda treatment I had in Kerala in the South of India.)

    Some of my debt was incurred due to 3 months of continuous non trading (loss of earnings) while I was away on the treatment in 2015 followed by 3 more short 5- 10 days treatment trips over the last year.
  • samkma
    samkma Posts: 130 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    samkma wrote: »
    My credit history is fine 936/999 score on experian. No CCJs, No late payments, nothing like that.
    Will my credit in anyway affect the process of renting the shop, the shop is owned pvt landlord has agreed on 1 month bond and 1 month rent in advance with a 1 month rent free period to help me start, (2 year agreement) when the contracts go to the solicitors they do a credit history check?

    .

    Can someone answer this please. Thanks
  • samkma
    samkma Posts: 130 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    More over I have started trading again fully in Jan 2016. I started off well though I lost some regular buyers, I discounted my items that had competition and picked up in just 2 weeks but after March 2016 its been a steady decline. think people who sell on eBay will understand what I am saying, I sell some Niche products, here's some real stats, my main items have between 300 to 500 watchers - sold between 10500 to 14500 items since 2013 - but has suddenly stopped selling, checked my competition, NONE - this is been eBay for last 14 months, just random sales, meanwhile I built own website and listed all my niches items on it and have regular sales every day but not in huge volume as eBay used to do.

    I am looking at Amazon as well. The only problem is as no one sells these items I have to get the barcodes done. (These are items I developed and get them made abroad)

    The problem for me is I had all my eggs in one basket. I have very good income from eBay between 2010 & 2013 and that helped get a mortgage and buy a home in Dec 2014.

    Now I want to build my life and keep providing for my family and kids, (not had an holiday in last 3 years) I am willing to do hard work and 7 days a week will not be a problem. Atleast I can send them away on a holiday! My daughter will do her GCSE next year!

    The area for the shop has a large foot fall, its a tourist location, the main shopping town for the county plus 2 other nearby counties, has a 89% occupancy rate (shops), shop located on the main street and this is the only empty one on this side of the street.
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Your credit history is whats important, no1 but you can see the score.
  • System
    System Posts: 178,374 Community Admin
    10,000 Posts Photogenic Name Dropper
    samkma wrote: »
    I sell some Niche products, here's some real stats, my main items have between 300 to 500 watchers - sold between 10500 to 14500 items since 2013 - but has suddenly stopped selling, checked my competition, NONE - this is been eBay for last 14 months, just random sales, meanwhile I built own website and listed all my niches items on it and have regular sales every day but not in huge volume as eBay used to do.

    DO NOT OPEN A SHOP. If its turning to crap that badly online for everyone it'll fare poorly in a shop. Whatever the niche you're selling is it is obviously a trend that has moved on. You've sold say 3000 a year. No idea what your profit margin is but at least £4-£6 average PER ITEM SOLD would be eaten up by the cost of running a shop, even a small one, before you were able to draw a wage.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Spatton
    Spatton Posts: 36 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Quote:
    Originally Posted by samkma viewpost.gif
    My credit history is fine 936/999 score on experian. No CCJs, No late payments, nothing like that.
    Will my credit in anyway affect the process of renting the shop, the shop is owned pvt landlord has agreed on 1 month bond and 1 month rent in advance with a 1 month rent free period to help me start, (2 year agreement) when the contracts go to the solicitors they do a credit history check?

    .



    They ought to - under the rules the solicitor's on the other side should do a full 'hard' credit check to be sure there's nothing that would compromise their client (i.e. the landlord). Not all solicitors are especially good at following the rules though.


    For what it's worth, I would agree with many others here - DON'T open a bricks and mortar outlet. From what you've already described some form of indirect competition has taken your market. If you really want to go this route have you considered a pop-up venue for a weekend to try and find out where your customers are going?
  • samkma
    samkma Posts: 130 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    I am not going to sell my niche in the shop as it targets a certain group of customers only and are in the high end, the product average price is £14 and people will have to buy in pairs for the use of it, my average purchase made by a customer will be 3 to 4 pairs ie, £40 plus spend always.
    It's not my products going down the hill nor is customer spending, it's eBay going down the hill, if you are a power seller just log in to the powerseller forum to see how bad it is even for some big sellers on eBay.

    Once again thanks for your inputs, will have to sit with family and give a serious thought about this shop route.

    Will keep this thread posted.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hi Samkma

    I think it’s a good idea to take advice from Business Debtline on your situation.

    www.businessdebtline.org

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • samkma wrote: »


    My illness is done and dusted, I am free of it completely (Thanks to the Ayurveda treatment I had in Kerala in the South of India.)

    Just as an aside, I'd keep an eye on the health issues if you were solely treated with Ayurveda - this is not a proven scientific method of curing illnesses. Look after yourself :)

    HBS x
    "I believe in ordinary acts of bravery, in the courage that drives one person to stand up for another."

    "It's easy to know what you're against, quite another to know what you're for."

    #Bremainer
  • If the area has a good level of independent shops, you might be better renting a space in an existing shop, or offering goods on sale or return for their stocks.

    Are your products in keeping with any of the existing merchants? Actually go talk to them about their costs v turnover as well as a partnership arrangement - lots of shops sell directly from private makers like you now.

    Good luck.
    (Don't get a shop.)
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
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