Starting my own business

dellas1979

Its been a little dream of mine for a few years, but Ive never came across something that I would be interested in selling, until today.

I am thinking of approaching a shop to "franchise" their idea/concept. As far as I know there is only one of these shops - I havent seen the name anywhere else.

I have no idea where to start. I am not a business person, but I think I could be. I always try 100% in everything I do. I am currently working a 6 month contract (am upto Masters in education). I have no mortgage. No loans. No kids. I have savings.

What would over heads be? How could I approach this shop? I am not sure if I am even asking the right questions. I think location for a shop like this would be key.

Any advice welcome. Thanks!

Gloomtastic!

Start of by talking to the owner I suppose. They'll either be interested in developing the idea further or not.

If not then could you source the products they sell yourself? Could you sell the product on-line as opppsed to taking on the overheads of a retail unit?

If yes, then the owner should be willing to help and advise you on how to set-up in business in return for a % of all your sales (about 10% seems normal) and you may also need to source all your product through them.

Swings and roundabouts to both options. If it's a new operation and one that you've never seen before then other people will probably never seen it either so the premium that a franchise attracts is somewhat lessoned so you may be able to negotiate more favorable terms with them.

Good luck to you, remember if you don't ask, you don't get!

dellas1979

thanks for the reply.

Anyone any advice about how much it would cost to start all this up/what I should expect?

I am fairly qualified education and experience wise and I think I could stay working full time (on contracts or whatever) and pay someone to run the place (lower wage to me).

Anyone any advice abuot the whole thing or am I wishful thinking?

KED

No mortgage. No loans. No kids --- great starting point.

Acquiring a premises is costly ....... would your savings ..... fit out a premises, pay you a minimum salary for 6 months ..... if not, you really need to have this stacked away before considering a new business venture. As banks are unlikely to be lending out money to new start ups anytime soon. Get your education finalised first - plenty of time to work in your own business afterwards.

If you could borrow what level of debt would you be comfortable with?

can you tell as more about the business in question?

infamous

Hi Dellas,

Would you be able to replicate and improve their business model without going down the franchise route with this crowd. Fit out costs rent/rates etc are all dependant on where you are looking to set up etc so with a few more specifics I could give you an idea of these costs. I opened a franchise last year fit out costs were 30k franchise fees were 20k, rent is 18k pa rates are 5k other overheads are light&heat, phone/net advertising waste, stock and the largest of the lot wages.

dellas1979

Thanks a lot lads.

Its not a franchise per say. I dont think it is open any where else in Ireland (had a look). I would like to have the same shop, just in a different location.

I think the first thing I should do, even before approaching the shop, is to find out location costs. It is a funky retro shop that sells everything from handbags to childrens clothers, to furniture. Most handmade but really really good quality and well priced. I need somewhere with a lot of foot traffic. In my head somewhere like the crescent in limerick would be ideal (I am trying to find out what rents are like there - but no reply yet). Probably cost a fortune though.

That and salaries.

It would be a monday to sunday thing. 10-5/6 weekdays. Am thinking a fulltimer all week, and then a parttimer to come in from 1-6 (i.e. have 2 in the shop) and the part-timer would work the weekend. I/family could cover lunches/breaks etc.

I dunno - am a real novice about this and need some facts and figures I guess and how to carry out some research.

drunkmonkey

dellas1979 wrote: »

It would be a monday to sunday thing. 10-5/6 weekdays. Am thinking a fulltimer all week, and then a parttimer to come in from 1-6 (i.e. have 2 in the shop) and the part-timer would work the weekend. I/family could cover lunches/breaks etc.

I dunno - am a real novice about this and need some facts and figures I guess and how to carry out some research.

That's not going to work if your looking at a shopping center, You'll need to open the hours the shopping center is open, So if there's late night shopping your going to have to open until 9 like the rest of the center. It'll put wage costs through the roof.
Before you approach the store your looking at replicating, find out the rent, rates, management fees of your proposed location, also work out your staff costs. Also make a sales projection, you can only make an assumption. Put that all together and see does it make financial sense before taking it further.

LionelNashe

If the business you want to copy is a limited company, you could go to the companies registration office and see what accounts they have filed. I think they're available to the public? I don't know what level of detail is included, but there might be some useful info.

dellas1979

Thanks for the advice!
Have emailed crescent with a query on unit prices.
I looked up the company on that website and they were only registered 2 months ago!!! Very new indeed! Possibly harder to approach.

Tigger

rent and rates oh and make sure there are no outstanding rates
and dont bother trying to start up an business if yer not willing to work in it 50 hours a week for the first two years

if it was easy everyone would do it