Opening a shop, advice needed

Register1

Hi guys,

I am in the process of opening a shop, First time out in retail sector.

Any advice or hidden costs I should be aware of?
Things to get right from the start etc.

Advice greatly appreciated.

Regards,

Reg1

DubTony

Is it urban, is it rural, is it in a shopping centre?
What sort of shop is it? What will you be selling?
What size is it?
Have you spokeen to a psychiatrist?


OK, that was a joke,but you should answer the other questions. Answers will be more specific if you are more specific

Register1

HI,

Its a nursery shop, looking at premises in outskirts of big town, retail park opening in the next few months.

I have stock sourced, finance sorted but absolutley no experience in retail sector and getting cold feet!

Have been incontact with local Area development, absolutley no help there, advisor has legged it! :rolleyes:

Any advice would be greatly appreciated.

Have market well reserched etc as I say no experience in running/managing shop.

Would I be better off to employ some one with experience to get started on the right foot. Cost of that again could do with out but would it be worth it in the long run?

Looking at 1000 sq ft shop size

Reg 1

maxwell smart

A couple of hidden things I had not thought of were the Fire Cert costs, also make sure your signed up to Airtricity/alternate power company for power.

waraf

This might go without saying but I spent nigh on ten years in the retail sector both with start-ups and established companies and you must always remember that the customer is king. This especially applies to start-ups. Go out of your way to help customers even if there is very little profit in it for you. You will see the benefit in the long run. Also, listen to your customers. If you don't have a product in stock and customers are asking for it - get it as soon as possible. This is a small country and word of mouth is how your shop will blossom. All the best with it.

Register1

Thanks guys,

Was also looking at setting up on-line store in accordence with retail unit.

Does this type of set up work?

Reg 1

DubTony

Its a nursery shop,

Is that kids stuff. Babies cots and prams and things?

I have stock sourced, finance sorted but absolutley no experience in retail sector and getting cold feet!

This bit scares the crap out of me. I've been behind a counter of some description since I was 10, and in the retail business 20+ years. I'm seriously not sure that it's the way to go for even the most experienced retailer these days (as in setting up a new store) To go into retail at any time with no experience is very very tough. Today, I would say it's absolute suicide.

Have market well reserched etc as I say no experience in running/managing shop.

Would I be better off to employ some one with experience to get started on the right foot. Cost of that again could do with out but would it be worth it in the long run?

Definitely. You need a manager. But I think you need one who is specific to that type of retail. In this economy your manager has to have his finger on the pulse, so there's not much point, in my opinion, in hiring a guy from Woodies or DID to run a shop selling prams. (if that's what a nursery shop is, or am I way off the mark there?)

Register1

Kids clothes and equipment

waraf

Register1 wrote: »

Thanks guys,

Was also looking at setting up on-line store in accordence with retail unit.

Does this type of set up work?

Reg 1

You definitely need a website to go along with your shop. You can have a static site to start with which just gives some basic info about the store (eg contact details, what brands you stock and maybe a link to google maps showing your location). You could set it up yourself or pay someone 500 euro to do it for you. If you are planning to sell stuff through the website you MUST keep the website up to date. People have zero tolerance for crappy websites. So if you scrimp here you will lose repeat business very quickly. The website can become a full time job on its own so I would suggest a static website to start with while you concentrate on the bricks-and-mortar side of the business. You can evolve into click-and-mortar in time.

Pixelcraft

imho you'll need to stretch the budget to more than 500 for a professional website. A website is vital, but if you cannot afford a proper one, wait until you can - a bad site will harm your business more than it helps it. Best of luck, everyone has to start somewhere!

Bandara

DubTony wrote: »

Is that kids stuff. Babies cots and prams and things?




This bit scares the crap out of me. I've been behind a counter of some description since I was 10, and in the retail business 20+ years. I'm seriously not sure that it's the way to go for even the most experienced retailer these days (as in setting up a new store) To go into retail at any time with no experience is very very tough. Today, I would say it's absolute suicide.



Definitely. You need a manager. But I think you need one who is specific to that type of retail. In this economy your manager has to have his finger on the pulse, so there's not much point, in my opinion, in hiring a guy from Woodies or DID to run a shop selling prams. (if that's what a nursery shop is, or am I way off the mark there?)

spot on, I'd be very worried your going to make a complete balls of it. Its a horribly difficult and time consuming (life consuming) business

Tbh if you had not gone so far down the road with it I'd be telling you to walk away.

DubTony

Register1 wrote: »

Kids clothes and equipment

Reg 1, I'm not trying to put you off going ahead with your business, but I do urge caution. If the year was 2002 I'd be pushing you to go for it. Get stuck in and make a killing. The buggy my parents bought when our eldest was born was a Stokke Xplory. It cost €750 in Tony Kealy's. We still have it, and only needed to replace 2 wheels at a cost of €60 in total. Fantastic buggy, but I can't see anyone buying one in this economy. This is available in Argos for a little over a third of the price of the yoke we have. And there are cheaper. This example might seem extreme but the thing is I fear the same goes for the basics.

My wife and I went to buy 2 jackets for the kids last September. At the time the eldest had just turned 4 and the other guy was 13 months old. We went into 2 shops in Mullingar and the cheapest jacket they had for the big guy was €55. The cheapest for the little fellah was €45. Mrs. DubTony wanted to buy them and I used the "let's look around and come in on the way back" technique to get her the f*ck outta there. I dragged her up to Penneys and we bought 2 jackets for €27 (€15 and €12). Both jackets are still in top notch condition, and both kids have grown out of them 5 months later. We skimp on almost everything we buy for the kids, choosing Dunnes and Penneys for everything except shoes. (No messing with shoes) And that has nothing to do with recession. I could never justify the Hilfiger label on the kids tee-shirt, but even my youngest brother has started to cut back in that area, and he's the very epitomy of a Celtic Cub.

The c-store I sold in Dublin a few years ago is currently down 10% since last November. That represents the weekly wages for 3 full time staff in that store. I spoke to the manager last week and he's thinking of closing it an hour earlier to save money as there's just no business at what used to be the busiest time of the day.

Some of the department stores in Dublin are currently staying closed until 10am each morning to save money. People are cutting back. It's not a good time to be getting into the shop business in my opinion.

I don't mean to piss all over your parade, but the economy is what it is. As I said, in better times I'd encourage you to jump, but now I'm not so sure. So unless you're buying the kids clothes direct from a sweat shop in Asia, and sourcing cots direct from the guy who cuts down the tree, you'll be up against fierce competition in the department stores and of course there's the like of Mamas and Papas and Mothercare to contend with as well.

If you haven't gone too far with it yet, I'd rethink if I were you. Sorry for putting the big downer on you, but take it from me, it ain't easy out there.

Register1

Thanks guys, appreciate the feed back.

will keep ye posted ..

Reg 1

gags89

I'l probably have to disagree with the general concensus here.Now we all know we are in a very very tough economic time right now. We hear about it all the time in the press and basically everywhere we go.

I think we need entrepeneurs like the o.p here and all over the country. Our over dependance on international investment has made us extremely vunerable to job cuts as the big co.s make cuts. Hence why i believe why we have been hit quite a bit harder than some other countries. The OP came on here looking for help, we need to encourage start-ups and innovations in business not say - ah if it wasnt a recession do it but right now dont. That means that we will have less job creation and the unemployment rate will soar.

I believe we need to innovate and compete in order to survive and i hope the o.p does this. Encourage spending by offering baby bargins throw in bundle deals or something. The online store is great and try get as much exposure on ''expectant mother'' websites as possible and make sure it is as stress free as possible - have a play area for the kids in your store. Mothers are stressed enough as it is. You will win customers off the established chains and others by great customer service and overall great experiences in your store. One thing mothers current and future ones love to do is chat and swap ideas and advice! Make sure you get your reccomendations!


best of luck mate!

Bandara

gags89 wrote: »

I'l probably have to disagree with the general concensus here.Now we all know we are in a very very tough economic time right now. We hear about it all the time in the press and basically everywhere we go.

I think we need entrepeneurs like the o.p here and all over the country. Our over dependance on international investment has made us extremely vunerable to job cuts as the big co.s make cuts. Hence why i believe why we have been hit quite a bit harder than some other countries. The OP came on here looking for help, we need to encourage start-ups and innovations in business not say - ah if it wasnt a recession do it but right now dont. That means that we will have less job creation and the unemployment rate will soar.

I believe we need to innovate and compete in order to survive and i hope the o.p does this. Encourage spending by offering baby bargins throw in bundle deals or something. The online store is great and try get as much exposure on ''expectant mother'' websites as possible and make sure it is as stress free as possible - have a play area for the kids in your store. Mothers are stressed enough as it is. You will win customers off the established chains and others by great customer service and overall great experiences in your store. One thing mothers current and future ones love to do is chat and swap ideas and advice! Make sure you get your reccomendations!


best of luck mate!

sorry gags but I'm going to disagree.

This is a lethal cut throat industry full of huge companies that spend millions on advertising, have top class websites and will bury any independent store on price, its all very well banging the "Go out there and make it succeed" drum, but in reality it doesn't work like that.

The OP has been very honest and said he has zero experience/knowledge of retail, therefore he has a tiny chance of succeeding in such an industry (in my opinion).

So advising him to go ahead and do it anyway is wrong, he'd be far better doing something in an industry he is familiar with or has experience of, otherwise he is going to lose everything he has.

How is this man supposed to plan to take on the big boys without havign the first notion of how a store should even operate? Taking on a manager will not solve his problem, the manager could be a bullsh!t merchant and the OP would not have the knowledge to identify this. And as soon as the manager realised the lack of knowledge of the Owner he's going to start taking the Pi$$ bigtime.

There is a time and a place to pick your spot and dive in headfirst witghout fear, this is not one of them.

gags89

hmmm yep your right, the experience is key. I will agree with you there. But if he DID hire a good manager... maybe a friend who has been recently let go who has worked in retail..im sure theres loads of unemployed retail-trained workers out there!recruitment is key.

If he had good day to day manager - he could train himself - nightschool/read books etc! What i would also like to point out that he does have a whole bunch of free advisors too here on boards that can give him ideas and advice on many aspects of business - from marketing to stock control to cash flow so i think he could do but i agree with people when theyt say he does need to be alot smarter about it now than say 5 years ago. He can learn very,very quickly with the right people. He could become the face of his business - getting out there promoting it each and everyday raising its awareness in his area and i guess more wider as it grows(hopefully)

On competing with the big dogs thats what i was trying to get at - develop locally through word of mouth,good name building and so on. Go above and beyond the call of duty in each customer service opportunity. It will pay dividends.


OP, want some encouragment - google companies set up during the 80s/ the great dpression etc that are still around today - these companies seemed like madness to be set up at these times and look what happened. They beat their critics!You can do it. just do it carefully and use every opportunity you can to learn and build your experience - its not impossible to do!

DubTony

My last post in this thread. I'm sorry for dragging it down but reality is harsh.

http://www.boards.ie/vbulletin/showthread.php?t=2055483681

Post no. 15 in that thread says it all

onedmc

In my experience you must work in a similar store for at least 6 months before starting into it yourself. In that 6 months you will learn the business understand what sells in what quantities and how quickly. You might as well learn the business at someone elses expense.

The biggest issue that you will face is dead stock. Items that you have spend money on and havn't shifted as quickly as you should. Each square foot of your store must pay for itself. If an item sells at a profit of €10 and takes up 1 square foot and each sq foot costs €10 per month then you must sell 3 per month to break even (3 times the rent). Do this accross the store and its a good start.

In good times its easy to shift the dead stock but everone is discounting so its more difficult.

So for the sake of the OP who has gone so far, would it be better for new startups at this moment in time to focus on online only and then if the business grows/economy gets better, only then should they consider starting a bricks and mortar business to complement their online sales?

happy09

As a mom, I personally shop online or in the Northern Ireland for kiddies stuff. Cheaper! I'd say it would be very hard to do it...I know that many moms first go to the nearby mothercare/ nursery shop, choose what they want and then look online....
Dublin Mama Blog


:pac:

jimmmy

Get a job in the public sector, you will be much better off than running a shop, and you will work far less hours, trust me.