Setting up a small retail business in a small town

Rua88

From the mid west and the career path I chose has not worked out so far. i have retail experience and for the last year or so i wanted to set up a baby apparel shop.

i have my wholesaler sorted and to be honest, I could run this from home no bother, i just think there is something nice about being able to pick things out in a shop.

there is no such shop in my town only Dunnes and Tesco and the clothes I have in mind would be affordable but not really available in their stores. if you want something nice and unique you have to travel to nearest city.

what would i have to do to get sorted, even if it was only me employed in the business. if it did take off i would love to take on another person or two.

teaching is my profession but as there is absolutely nothing there for the next few years I thought this would be an interesting venture. i will be unemployed more than likely for forseeable future.

i have it all planned out in my head, i just need a check list on how to get there.

Circa 20k people in the area that would use town as their shopping centre etc. commercial rent is cheap also and i could fund the rent and products on my own for first year on money put aside.

any ideas.

_Brian

Rua88 wrote: »

From the mid west and the career path I chose has not worked out so far. i have retail experience and for the last year or so i wanted to set up a baby apparel shop.

i have my wholesaler sorted and to be honest, I could run this from home no bother, i just think there is something nice about being able to pick things out in a shop.

there is no such shop in my town only Dunnes and Tesco and the clothes I have in mind would be affordable but not really available in their stores. if you want something nice and unique you have to travel to nearest city.

what would i have to do to get sorted, even if it was only me employed in the business. if it did take off i would love to take on another person or two.

teaching is my profession but as there is absolutely nothing there for the next few years I thought this would be an interesting venture. i will be unemployed more than likely for forseeable future.

i have it all planned out in my head, i just need a check list on how to get there.

Circa 20k people in the area that would use town as their shopping centre etc. commercial rent is cheap also and i could fund the rent and products on my own for first year on money put aside.

any ideas.

After rent you'll have fit out cost, insurance, rates and ESB. I know someone who costed out a similar enterprise and the weekly cost without other staff or a wage was in excess of €300 and that was for a second county town not a main county town.
If you took an average of 100% markup it means €600 in sales just to break even, then another €600 in sales just to have €300 in your pocket..

Do you see €1200 in weekly sales, every week ??

NSAman

_Brian wrote: »

After rent you'll have fit out cost, insurance, rates and ESB. I know someone who costed out a similar enterprise and the weekly cost without other staff or a wage was in excess of €300 and that was for a second county town not a main county town.
If you took an average of 100% markup it means €600 in sales just to break even, then another €600 in sales just to have €300 in your pocket..

Do you see €1200 in weekly sales, every week ??

With rent currently low, please do not be fooled. Costs associated with start up can be very high.

Depending on the size of the store, think about the following things and the time this will take

Rates: In most cases very high
Electricity: Initial install cost 1200 approx
Rent: Watch out in the Lease for costs which you cannot control outside painting etc.
Water: Obviously it will be a small cost but the buggers charge(d) standing fees which can add up.
Accountancy Fees: Do the book-keeping yourself and save cash. Always negotiate a price.
VAT: Obviously you will have to register, otherwise the venture is not taking enough.
IMRO (or whatever they are called now): No radio or you pay and they are a pain in the arse.
Service Charges: If the property has service charges RUN... RUN FAR AWAY!!
Theft: Probably the biggest looser of any profit around. You will have to become very aware of stock and implement a size/hanging inspection system.
FINALLY
Customers: They will pay for your stock, but don't be surprised if you hear every excuse under the sun as to why it "ripped, broke or is not fit for purpose"... you will be called every name under the sun also. Thankfully, the majority of people are very nice to deal with, however, you will always have that one or two who are the worst in the world..;)

As a general rule of thumb, you really need to be taking 3 times your costs figure to survive.

Help!!!!

Where abouts are you

Rua88

Help!!!! wrote: »

Where abouts are you

I will be in Nenagh

Rua88

NSAman wrote: »

With rent currently low, please do not be fooled. Costs associated with start up can be very high.

Depending on the size of the store, think about the following things and the time this will take

Rates: In most cases very high
Electricity: Initial install cost 1200 approx
Rent: Watch out in the Lease for costs which you cannot control outside painting etc.
Water: Obviously it will be a small cost but the buggers charge(d) standing fees which can add up.
Accountancy Fees: Do the book-keeping yourself and save cash. Always negotiate a price.
VAT: Obviously you will have to register, otherwise the venture is not taking enough.
IMRO (or whatever they are called now): No radio or you pay and they are a pain in the arse.
Service Charges: If the property has service charges RUN... RUN FAR AWAY!!
Theft: Probably the biggest looser of any profit around. You will have to become very aware of stock and implement a size/hanging inspection system.
FINALLY
Customers: They will pay for your stock, but don't be surprised if you hear every excuse under the sun as to why it "ripped, broke or is not fit for purpose"... you will be called every name under the sun also. Thankfully, the majority of people are very nice to deal with, however, you will always have that one or two who are the worst in the world..;)

As a general rule of thumb, you really need to be taking 3 times your costs figure to survive.

Thanks so much for the reply!!! Do you think it would be better to set one up online then?? Maybe I'd be biting off more than I could chew having an actual store.

Rua88

_Brian wrote: »

After rent you'll have fit out cost, insurance, rates and ESB. I know someone who costed out a similar enterprise and the weekly cost without other staff or a wage was in excess of €300 and that was for a second county town not a main county town.
If you took an average of 100% markup it means €600 in sales just to break even, then another €600 in sales just to have €300 in your pocket..

Do you see €1200 in weekly sales, every week ??

Not sure about that, to be honest it's just something that I always wanted to do and even though unemployed, OH has an income that he is more than willing to support us both on.

I originally had the idea as an online store from home, maybe that would be cheaper?

_Brian

Rua88 wrote: »

Not sure about that, to be honest it's just something that I always wanted to do and even though unemployed, OH has an income that he is more than willing to support us both on.

I originally had the idea as an online store from home, maybe that would be cheaper?

What I'd say is do your sums, and do them a few times, add 10% onto costs for unforseen stuff... In our town some stores open/close within months because folks don't do their sums first..

Also, there would be nothing stopping you having a B&M store and selling through an online site..

I'm not saying don't do it.. just be prepared and informed.

msdoc

Could you do online and link in with local mammy and baby groups? ask them if you could come along to their meet ups and show them some of your pieces

Mrs OBumble

Have you got quotes for the cost of public liabiliy insurance? It will be a lot higher if you run a bricks-and-mortar shop than if you're simply doing on-line, market trading and home-visit selling.

You still need it even if you're only doing on-line: someone's kid could still allegedly get hurt by something. All it can take is one false allegation from a parent with a lawyer on tap (partner, family member etc) for you to lose your house simply to pay the legal expenses to clear your name.

Buttercake

I would stay online, the novelty of walking in and picking up is worth nothing these days, Mums will be at home so won't mind deliveries. in fact you will attract the time wasters who will look &feel then go buy it online elsewhere!

If you offer a good online customer experience and service I.e Returns, you can be become very successful