Einstein in the Well. (Q&A)

Heisenberg.

This post has been deleted.

duncanb

Hey Einstein:)

Tell us a bit more about your background and how you got into the retail industry?

Also, iv just started a business which sells fittings to the retail trade.... do you have any thoughts on how best i could sell to and approach retailers?

Cheers

Duncan:)

DubTony

Coming from an IT background, what motivated you to go into retail?

niceirishfella

What has been your biggest business regret so far.
what has been you biggert business success thus far?

horgan_p

Couple of questions :

Do you see smalll retailers surviving the recession by being more agile than the bigger shops or do you find people will stick to a brandname ?

What are your thoughts of people tyring to expand their way out of a recession or should retailers be looking to consolidate their position and offer good customer service to the customers they already have ?

Finally , what would you say to someone looking to start a business at the minute ( given that banks are slow to loan capital and anyone starting a business are realistically using their own cash / redundancy) ?


Thanks in advance.

stepbar

I also come from an IT background (did a degree but never followed through in to the industry). So I suppose I'm interested to find out what did you did in IT and what made you jump ship?

Sonnenblumen

Why did you pick Newsagent and not a more added value retailing option where you might utilise more of your obvious intelligence and IT experiences?

shoutman

Lads lets keep the thread on topic please.

Einstein, do you have any plans to move into other business areas either within retail or outside of retailing?

What is your favourite sweet which you sell?

Do newsagents make much/any of their money from selling newspapers?

duncanb

i think einstein may have found an ingenious formula which has enabled him to escape from the well!!!!:D

niceirishfella

I'm beginning to wonder who Einstein is?

blue4ever

4 days ... it's not exactly light speed .............

shoutman

I've sent him a PM, last time he was on boards was over 36 hours ago....

Einstein

my bad folks, was uber busy last couple days...will be updating all questions this evening

thanks for waiting!

Einstein

duncanb wrote: »

Hey Einstein:)

Tell us a bit more about your background and how you got into the retail industry?

I started off in IT about 10 years ago, and essentially grew to hate working for other people. Took some time to figure out what I could do and then one day I was presented with the opportunity of a small newsagents. My part time job through school and college was always in shops, so I had a pretty strong grounding in retail.

After some researching and the preparation of a business plan, I opened the first shop in August 2005. 2 years later, we opened a 2nd shop. Unfortunatley, due to its location and the current climate, the 2nd shop closed 2 weeks ago, but we plan some work on the original shop to improve and get the most out of it that we can.

Also, iv just started a business which sells fittings to the retail trade.... do you have any thoughts on how best i could sell to and approach retailers?

I guess be honest...one of my memories was a sales rep that came in trying to sell me something, after I pointed out that I wasn't interested, he proceeded to tell me that "Matt" (the name over the door - who happened to be my grandad) was very interested when he saw him the previous week, he left fairly fast when I told him that Grandad died about 13 years ago!!

DubTony wrote: »

Coming from an IT background, what motivated you to go into retail?
I guess I didnt leave IT with the intention of entering retail. It was an opportunity that presented itself, and given the experience I had growing up, I figured I had the grounding to give it a pretty good try!

niceirishfella wrote: »

What has been your biggest business regret so far.
Working with Symbol Groups
what has been you biggert business success thus far?
Parting company with Symbol groups and sourcing suppliers myself.

horgan_p wrote: »

Couple of questions :

Do you see smalll retailers surviving the recession by being more agile than the bigger shops or do you find people will stick to a brandname ?

People trust what they know. I grew up on Batchelors Beans. Not Heinz, therefore, I buy Batchelors Beans. That doesnt mean that Heinz beans don't taste better or worse than Batchelors, but it's what I know, and what I'm familiar with. I feel that most Irish people are the same, and we like to stick with the brands that we know. I brought a new brand of marmalade into the shop. It was Irish, It was cheaper than the popular brands, and it gathered dust, while its counterpart (the more expensive, familiar brand we love and know) happily sold itself without even looking at its opponent.

However, given the current climate, people are watching money when it comes to grocery more than ever. The sterling issue was a huge thing for the retail industry...and when people started going up North and seeing the money they saved with a number of brands they may not have been previously familiar with with, they realised that theres not that much of a difference at all, which drove them into the like of the Aldi's and Lidl;s

What are your thoughts of people tyring to expand their way out of a recession or should retailers be looking to consolidate their position and offer good customer service to the customers they already have ?

As I mentioned above, our secondshop closed a couple of weeks ago (hence my absence) however, we are considering renovating our original shop, spending money, and possibly hiring a new staff member. Expanding is good, if it's financially viable, and the research is done, but my "expansion" involves putting in a hot+cold Deli and removing 75% of my grocery lines, leaving only a drop of the necessary stuff - Tea, Coffee, Sugar, range of Biscuits etc.

Good customer service as far as I'm concerned is one of the keys to repeat business. If you have "Mary's" cigarettes and Daily Star ready for her at 8.48 every morning, Mary aint going anywhere else. An elderly woman came in recently with a €100 note. I didnt have the change, and she said she'd come back later, so i gave her the €10 myself, and to sort me out whenever she saw me again...the poor woman nearly cried. These are the things that get you repeat business...prices come second, and I'm a firm believer in that.


Finally , what would you say to someone looking to start a business at the minute ( given that banks are slow to loan capital and anyone starting a business are realistically using their own cash / redundancy) ?

My accountant mentioned to me recently that a certain bank issued 13 mortgages Nationwide, in the first 3 months of this year. The biggest downfall in the current economy is the Banks. The ECB ordered banks to help struggling small businesses. The irish government did the same. The banks ignored them. They are simply lending to nobody.

But lets be honest, when it's your own business you always sacrifice something, money family time etc, and if you're not prepared to sacrifice things like this and possibly lose the money you invest (which I unfortunately have) for now, I'd sit on the idea. The main advantage in the current market is there are some fantastic deals on commercial property leases at the moment.

Thanks in advance.

stepbar wrote: »

I also come from an IT background (did a degree but never followed through in to the industry). So I suppose I'm interested to find out what did you did in IT and what made you jump ship?

To be honest, I got sick of fixing other peoples computers, once mine worked, tha's all that I cared about. There is an elimant of IT that I do enjoy, but when i realised that I detested coming to work, I knew it was time for a new direction.

Sonnenblumen wrote: »

Why did you pick Newsagent and not a more added value retailing option where you might utilise more of your obvious intelligence and IT experiences?
Great question. I guess i was young, uneducated in working for myself, and not aware of so many of the various self employment/franchise oppurtunities that are out there.
If I was to look back 4 or 5 years ago with what I know now, I would choose a different area. Most likely something that didnt operate on such tight margin guidelines.

shoutman wrote: »

Einstein, do you have any plans to move into other business areas either within retail or outside of retailing?
Absolutley. I'm also a qualified Neromuscular Therapist, which I continue to do part time, and whatever the future holds with the current shop, I'll most definitely use the knowledge and experience gained and venture into something different.
What is your favourite sweet which you sell?
lol...bounty bar...nom nom nom

Do newsagents make much/any of their money from selling newspapers?
Nope, maybe between 20-40c depending onthe paper. And if I had my way,I wouldn't even sell newspapers. The distribution companie's (with the exception of one) are a sham, and a joke to deal with.

THanks for all the questions, and again apologies for the delay, feel free to keep em coming

niceirishfella

Thanks Einstein,

Few more;
Whats the single biggest piece of advice you'd give to a new retail business entrant?
What do you worry about most businesswise?

Einstein

niceirishfella wrote: »

Thanks Einstein,

Few more;
Whats the single biggest piece of advice you'd give to a new retail business entrant?
Margins Margins Margins. Make sure you have your prices and margins correct - always
What do you worry about most businesswise?
tbh I'm not the worrying type, I've head of people pulling over at the side of the road to vomit because of problems. Life's too short. This should be an adventure. Enjoy the highs and remember the lows, because you cant succeed until you've learnt how to fail.

.

Mickk

Hi Einstein,

What has been the hardest thing about running your own business?

Given your grandfather's name was over the door I am guessing your dad ran the shop for the last couple of decades, has he commented on whether previous recessions have been harder on the business or is the "current climate" the worst he has ever seen?

What's your real passion in life?

How old are you?

Thanks

Einstein

Mickk wrote: »

Hi Einstein,

What has been the hardest thing about running your own business?
Keeping control on cash flow and getting reliable staff. Common sense aint all that common...
Given your grandfather's name was over the door I am guessing your dad ran the shop for the last couple of decades, has he commented on whether previous recessions have been harder on the business or is the "current climate" the worst he has ever seen?
In fact the shop was new...I named it after my grandad cos he always wanted a corner shop, so kinda like a hats off to him from me

What's your real passion in life?
Music. I also have a small recording studio that I love to spend time in. I'm a drummer!
How old are you?
I'll be 31 this coming July
Thanks

Mickk

Thanks for the other answers, this one is a bit sensitive so don't have to answer if you don't want but what percentage are you down these days in your current shop and how much did you drop in the other before closing? Also have landlords renegotiated rents?

I know my shop is down but thankfully there (used to) be the margins to absorb it but I imagine with news agents even a small drop could be a killer.

Also looking back with the benefits of hindsight would you do anything differently?