Credit Crunch hits the Brodericks !!

Zammo

Lotus-eater wrote: »

What was the point of that?

Getting a bit nasty on here sometimes.

Not really, Brodders enjoys a bit of friendly banter with me.

:money:

fc123

Conrad wrote: »

Broderick I feel vulnerable even though we could down size to a fairly good house with no mortgage. I'd love some of what youre on. If we downsize and I ceased trading I would want to start another business, but Im scared it would'ny work, and I could'nt take being employed again.

I'd like a bespoke furnitue and fittings shop but the risk........

You know what, I have read a lot of your posts durring the past few months and, sometimes, you wrote responses from what seemed like a rather 'Holier than thou' position. I'm not being mean, it's just how they came across to me.

So, you can downsize and try to sell (within the constraints of the HPC) which leaves you free to do something else.

Problem in retail at the mo is that unless you have a unique concept, supply that can't be purchased easily on-line for less and you don't have to sub in all the labour (for the bespoke part) as you have the skills do to some of it yourself...so setting the initial standard and saving on labour, AND you can take on a retail premises that are't priced at silly rent...it could be possible.

On-line only requires a fat ad budget to get any quality traffic....ie; paying customers.

Problem is, if you can't face the WHOLE risk, then I would say it's not for you. The whole risk is that you can cost the entire set up to a penny of the true cost but forecasting the Turnover??? Well, how long is a piece of string?
You need a kind of 'Blind faith' in yourself and abilities.

I am no expert but I know a lot about small busines (retail/design/clothing) as we have started up 7 high risk concepts since 1987. We have never been Ltd (though we should be now....in the plan) so our !!!!!$ have always been on the line. Of the 7 ; 5 worked out, delivered a salary but all consumed way more time than any PAYE job. 2 were a mess and lost money.

I am currently head first in on no 8....have I done loads of sums and planning? Of course, but it is the self belief and blind faith that is the main driver.....plus a lot of concentration. I don't use the word 'work' as a lot of my day to day is quite automatic now...there is a key difference.

I won't go on as I hate to put anyone off but I have seen so many good retail concepts go to the wall, NOT because they were rubbish BUT because the fixed costs were too high for the level of turnover they eventually achieved plus their margins were capped too as they bought in goods rather than designed and produced them themselves.....always someone out there that will undercut you.

If need a certain level of salary, I would advise not now. If you have a years worth of salary saved plus start up costs...could be worth a try.

FWIW, we've never had any salary saved up or contingency funds...ever....that's why I say the above.

A close relative had researched a venture for some years, had 100k saved and was covering all angles, chewed over it for ages etc etc.
Should have come off...unfortunately, it didn't and he had to choose after 1st year between keeping at it and going into debt or closing it down.
He chose to close but the savings loss has gutted him.

I was asked to lecture on small businesss once and told to include 'tips' on entrepreneurialism......the academics didn't like my reply...can't be taught...it is felt.

fc123

Conrad, I forgot...a really old fashioned sum is 10 X rent....has always worked for us...when T/O is 10 times rent, we tick over. This gives you an idea of T/O needed if you saw a unit for, say, 20k pa.

Big problem in retail is that the chains are working on huge mark ups of minimum X 7 or 8 (in my sector) often X 12.
As an Indie retailer, one can only get X 2.7 or X 3 (in my sector on bought in goods) but one never sells everything...so overall ones ones stock costs are roughly (very roughly) half total T/O.

The retail rents have risen to absorb all this extra margin.......that's why there are few indies left in certain areas..they can get the T/O but NOT the margin.

Also some dodgy incentives around too......once you have signed a lease (and they will insist on personal guarantees even if you are Ltd) you are totally trapped and the rent will soar one day. Insist on break clauses at every rent review.

mr.broderick

Zammo wrote: »

Not really, Brodders enjoys a bit of friendly banter with me.

:money:

No worries zammo you know you'll be getting it back off me x 10

mr.broderick

Lotus-eater wrote: »

What was the point of that?

Getting a bit nasty on here sometimes.

Thanks lotus but don't worry zammo has had quite a lot of stick off me over the months so fair play.

Generali

fc123 wrote: »

OK, I confess I haven't a clue what Indexed Linked Gilts are BUT my dad is a shrewd investor (irony is that I will inherit a load of shares in commercial property funds one day...bought on the cheap during the dotcom boom) so I can ask him........so try to sell in the Autumn then I guess.

Gilts are UK Government bonds. Index linked means that rather than pay an interest rate of x% they pay a rate of inflation + y%.

It is the safest investment money can buy.

BettiePage

pickles110564 wrote: »

Explain that these people have not got a clue, green shoots already poking through.

:rotfl:.........................................................