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Retail Capital?

  • 09-06-2011 9:21am
    #1
    ziedth
    Registered Users, Registered Users 2 Posts: 9,081 ✭✭✭


    Hi all,

    I'm thinking of going out on my own as the Jobs Market here in Waterford is poor at best and I have a few questions that I'd appreciate someone having a look at. I'm a retail manager by trade so I don't think running a retail unit would be an issue I'm just trying to find/think of a gap in the market here but it's early days.

    What I really wouldn't be sure of would be the start up costs and I realise it's an impossible question given that I haven't a premesis or even products picked but a general heads up of the kind of costs I'd encounter would be ideal.

    Id have maybe 15-20k saved that I could push out easily enough to maybe 30k.

    Any help would be very much appreciated.


Comments

  • #2
    DubTony
    Registered Users, Registered Users 2 Posts: 3,267 ✭✭✭DubTony


    I guess it depends on what type of retail you're looking at. The amount you have is likely to get gobbled up by all sorts of fees. Solicitor for sorting out the lease on the premises is the first one I can think of (without thinking very hard). Landlords are still, in the main, looking for 3 months rent up front. On a 50K a year property that'll be €12,500 (this can be negotiated to monthly, and you will be in the driving seat as a potential tenant). Shop fitting can be expensive. If you need refrigeration, you can forget about it with your amount of capital, unless you can find some decent re-posessed stuff at a knock down price. Unfortunately there seems to be little in the way of finance these days, so even leasing of shop equipment is difficult.

    Of course then there's stock. If you can get credit from a major supplier that would be good, but personal guarantees and up front "deposits" are the order of the day. (One guy I know had to pay 50k upfront back in 2007)

    With the retail sector in the state that it's in currently, there are not a lot of positives. If you're in a job at present, I'd recommend sticking with it, add to those savings and take a look when the market starts to return. Unfortunately I think that bricks and mortar retail isn't one of those areas that you can start up in a down economy and wait for things to improve, unless you've an amazing location.


  • #3
    ziedth
    Registered Users, Registered Users 2 Posts: 9,081 ✭✭✭ziedth


    See now I'm glad I asked :)

    Cheers.


  • #4
    borderlinemeath
    Registered Users, Registered Users 2 Posts: 5,346 ✭✭✭borderlinemeath


    As a retail manager you will have experience in the day to day running of a store so you already know the importance of location and overheads.

    My advice would be to start small, something that you can cover most hours yourself with maybe a trustworthy part timer to cover your days off. Are you going to trade 6/7 days? Late nights?

    The problem with a good location, it demands high rates. A 1000sq ft unit in a high footfall location could cost you €10,000 in council rates.

    You will most likely need cash upfront for most suppliers, regardless of product.

    Check the likes of donedeal.ie for shopfittings, you might get a bargain from somebody closing their business.


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