any retailers...or ex retailers

[banditboy]

im currently toying with the idea of taking on a local empty shop, a smallishunit near to a main rd,
i have bought and sold stuff as a business in the IT field,but not many business are buying at the moment....i have been self employed for 20 plus years...so used to daft hrs...

im considering a retail outlet for ovens and hobs,[there arnt many about] purchased via the internet at good prices,
or possibly a home brewshop with internet sales as well,

what things should i consider, rent rates etc,

im looking at this as a ten year project, and have family members that could help out occasionally,
the shop is a 2 mins walk from home,

if i was trade for the 1st year at a loss or break even.[due to set up costs] will i be able to make it pay in future years..i assume it will get easier,

im sure a few of you have been there and done this.....im a bit apprehensive about jumping in at the deep end,[but not thwarted]
i do have some capital to fund it so loans arnt an issue...

thanks for you comments in advance

 

[holmslaw]

I think the retail trade will hit the buffers big time when 20% VAT rate starts. Its a physchological barrier and a massive disincentive to know that for every £100 you spend £20 goes to the taxman.

Also the majority of white goods sales are due to people moving house - and there's not much moving going on.

How will you compete against Comet etc?

I do know of one recession proof business, pet shops. I used to know a bloke who worked for a pet goods wholesaler, his job was to fit-out, stock and supply small retail outlets. That was during the last recession and he was making a packet and so were the shopowners.

Don't do it if theres a pets-r-us round the corner.

 

[banditboy]

some valid points there,
as the 20% vat is the same for everyone, so i cant allow for that, although im sure there will be some cash exchanges....

i have bought/sold a few ovens new and used through ebay,

i also deliver and fit electric ovens, having spent 25 years as a sparky,which has an added value,
comet charge £78 to deliver and fit,

i can get numerous graded ovens that are repairable...or just have slight marks
i will no doubt refurb a few ovens ...
its just that a shop may bring in a different customer,

ive also been home brewing for a number of years, [its become rather popular at the moment] and there isnt a shop in the county,with a population of 200,000 people,

anyone have any experiance of setting up costs...?

 

[Bahco]

I would NOT sign up for a long lease whatever "good " deal you are offered. If your business fails (as I believe over 70% fail in the first year) you will still have to pay rent and rates etc for the period of the lease if you cannot offload it.

This is how many people lose their home!

If you can get a yrs lease on decent terms it may be worth risking your money on this venture. Be of the mind that if you lose a few grand so be it as at least you had a go.

No risk no reward applys.

Good luck to you

 

[skitzee2k]

Where to begin, ...well obviously, you have rent, you have rates, you have public liability insurance, building insurance, employee insurance, commercial vehicle insurance.

You then have to consider that you are very persuable if you sell something (even accidently) that is duff...which brings me on to your accounts.

if you dont have an accountant..you'll need one, skip hire/bins, IT costs including selling programme, IT support, marketing costs, plus gas/electric (lighting will be a major factor, a good shop needs lots of lighting...all day, every working day...ka-ching!).

Depending where you are, you could be looking at 4-5k a month costs before your salary.

Don't bank on making money for the first 3 years. It happens sometimes, but not often, lose money in the first..so much that you'll wanna throw the towel in, lose less in yr 2, lose little if anything year 3, make nothing or a little in year 4, profit year 5...

 

[diane1]

http://www.smallbusiness.co.uk/channels/small-business-finance/government-grants/

have you had a look if you would be eligible for a grant??....

 

[Nige F]

some valid points there,
as the 20% vat is the same for everyone, so i cant allow for that, although im sure there will be some cash exchanges....

i have bought/sold a few ovens new and used through ebay,


...?

Then stick to e Commerce . But link in to your area and offer the delivery/ install service The BIG killer with eBay is the postage / collection costs