Great idea....need some help

Youngbusiness

I have a great idea for a retail prospect and have done some research that proved that the market was indeed growing, and unexploited in Ireland. I feel the 'recession' could actually really benefit the potential business with relatively cheap leases out there. However I have a few issues/problems.

I am quite young (just gone 20), still in university studying commerce, and i'm finding it very difficult to get prospective stakeholders e.g. banks, suppliers etc to even meet with me to discuss where to begin. I understand the risk involved in backing someone so inexperienced but surely there is a way to get people to meet with you. Any advice guys?

I am also currently in the middle of writing a comprehensive business plan. I don't know how to conduct some proper market research though. I've used plenty of desk results but haven't a clue how to do some field research. Is it really necessary and if it is where do I begin?

I'm sure there was more I meant to ask but its just left me. Any other advice or comments would be greatly appreciated too.
Thanks in advance,

Lplated

I'm not sure that its that difficult to get people to meet with you, depends who you want to meet, i suppose.

Before you get any meeting though, I think you need a fairly good outline (possibly a full business plan), as otherwise you're only meeting them to discuss the 'fresh air' of an idea.

When you do have a plan, why not try
a) go to the manager of the student bank branch/es on your campus, tell them what your looking for and ask them to set up a meeting with you with a branch that does business loans; or
b) go online to the various banks websites, they'll all (i think) have some form of fluff on their facilities for business customers, together with contact numbers or email addresses - then mail them.

On the market research - look for a 'Dummies guide to...' or 'Complete idiots guide to .....' book on the subject - they're usually good for a basic grounding in subjects. Alternatively, try your college library, which, seeing as your doing commerce, is bound to have something on market research techniques.

Fergal C

Start your research by asking friends and family what they think of the product, that you would be selling. Try to go beyond opinions and ask them if they have actually purchased something similar, say in the last six months.

Visit similar existing retailers to get a view of how they are doing and how they present their products, etc. If there are none in your town or city try to find out if there are any in other parts of the country. If you can't find similar retailers visit shops that sell to the same target market.

When considering a retail location find a place from where you can view the premises and then start counting the number of people that walk past it at various times of day.

I presume you want to keep the idea confidential, but can you give any details on the idea or the niche you would be serving?

Where abouts in the country are you considering opening the shop?

Youngbusiness

Lplated wrote: »

I'm not sure that its that difficult to get people to meet with you, depends who you want to meet, i suppose.

Before you get any meeting though, I think you need a fairly good outline (possibly a full business plan), as otherwise you're only meeting them to discuss the 'fresh air' of an idea.

When you do have a plan, why not try
a) go to the manager of the student bank branch/es on your campus, tell them what your looking for and ask them to set up a meeting with you with a branch that does business loans; or
b) go online to the various banks websites, they'll all (i think) have some form of fluff on their facilities for business customers, together with contact numbers or email addresses - then mail them.

On the market research - look for a 'Dummies guide to...' or 'Complete idiots guide to .....' book on the subject - they're usually good for a basic grounding in subjects. Alternatively, try your college library, which, seeing as your doing commerce, is bound to have something on market research techniques.

Thanks for that. Any idea what would be an acceptable amount to ask for in terms of a loan? And how much of my own money should i put forward in comparison?

Youngbusiness

Henri wrote: »

Start your research by asking friends and family what they think of the product, that you would be selling. Try to go beyond opinions and ask them if they have actually purchased something similar, say in the last six months.

Visit similar existing retailers to get a view of how they are doing and how they present their products, etc. If there are none in your town or city try to find out if there are any in other parts of the country. If you can't find similar retailers visit shops that sell to the same target market.

When considering a retail location find a place from where you can view the premises and then start counting the number of people that walk past it at various times of day.

I presume you want to keep the idea confidential, but can you give any details on the idea or the niche you would be serving?

Where abouts in the country are you considering opening the shop?

Hey, I would prefer not to give away too much. In an ideal world I would like a building off grafton street, or anywhere "up-market" for that matter as I feel the product and service would do very well there. However, being realistic it would be very difficult to secure somewhere so pricey.

stepbar

Let me start by saying that Friends and Family are the WORST place to start asking for opinions. Friends and family will always more than likely tell you your product is great yada yada yada. If market research mean walking around a housing estate with a clipboard full of questions, so be it.

Second, the bank will not meet with you until you have an idea what is it you want. The best way to conceptualise what is it that you want to do is by producing a business plan. If you had an accountant or other professional look over your figures to verify that they stand up, your plan would be all the better for it.

It would be a waste of time setting up a meeting at this stage. I mean think about it from their point of view - a person comes looking for (lets say) 50k but

A) doesn't know what he /she wants it for
is not putting up any money himself / herself
C) is planning to pay themselves 25k wages during the year (out of the 50k) :rolleyes:.
and finally
D) has zero experience

If you were the person giving out the money what would you think of the person in front of you?

Anyhow, even after you've done all the leg work, the bank is probably going to turn around and want a personal guarentee from you for the loan. As a student you would have no means to repay the loan if the business failed. Therefore unless you have parents who have sufficent means to guarentee the loan, this project will be a non runner. Even if you get the loan, prospective landlords are probably going to want some sort of guarantee or money up front.

Third, depending what college you are in, it can be a great place to setup a business. IMO DIT would be one of those places. Can't comment on others.

MB74

Have you looked to the Dublin City Enterprise Board for assistance?

Also talk to all the banks and learn a little from each one that you can bring with you to the next one.

Beat of luck, any insurance queries don't be afraid to ask.

Axwell

EDIT..i had read it wrong and thought Stepbar said DIT was not one of those places and was asking why..

bigbadben

Axwell wrote: »

Any particular reason why? They have a hothouse programme which is supposed to be very good and had some successful businesses come from it.

Have you not answered your own question?

I tried one of the hothouse programmes, found it a great place to make contacts and cheap rent/utlilites.

Youngbusiness

Sorry, what exactly is a hothouse program and how do I find out more?
Thanks!

Lplated

Youngbusiness wrote: »

Thanks for that. Any idea what would be an acceptable amount to ask for in terms of a loan? And how much of my own money should i put forward in comparison?

Thats a 'how long is a piece of string' question - what does/will your business plan say you'll need? Can you raise any of it through grants or angel financing?

If you had a grant/other investor, then 1/3 (your money), 1/3 (grant) and 1/3 (loan) might be a good balance. If its just you and the bank, then the more you can put up, the less proportional risk the bank will perceive itself as taking.

An alternative approach would be to have someone willing to go guarantor - maybe a family member.

Have you looked at the whole feasibility study area yet?

Lplated

Youngbusiness wrote: »

Sorry, what exactly is a hothouse program and how do I find out more?
Thanks!

'Google' is your friend. You're a commerce student, so should have the answers already to some of the questions you're asking. You should also be computer/internet literate enough to do most of the donkey work yourself.

In my experience this forum is most helpful/useful to those who put in a bit of spade work themselves.