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[1]
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 tein |
Sun, 31/05/09@17:25
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I've just come back from a informal meeting with my long time friend who is looking to open a shop in South Wales (Mumbles to be exact) it's such a lovely place & we are looking to sell unique clothing like skateboarding/surfboards & all that kind of stuff,
My friend has lived there for some years now & there is a few empty units/shops empty, Now we are very aware of the current economy situation but it's on the beach almost & we see a market for this area also the beach is a very busy place,
I'm 37 & he is 42 my friend has some very good contacts that can help us with a website/sponsors & using their name in advertising that relates to the type/nature of shop we would like to open, we are now at the stage where we are looking for funding.
I have looked at Business Link's website & they is a lot of companies offering help but many of them are to non-profit organisations & other fields different to ours & I see little in the way of financial help for the retail sector new businesses.? can anyone suggest a company or a link please.?
We have had this project on our minds for some time now but just recently looking to go ahead with it, today we disscussed many things which we both did meet in the middle with.
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wiz-king |
Sun, 31/05/09@17:51
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Create the company as a limited company, register it with companies house, get an accountant and bank account. Ask the local chamber of commerce, they can tell you of any grants available locally.
Look in the yellow pages for similar shops and then go and see how they look - are they busy or has trade gone flat? Dont forget that it can be a seasonal trade.
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buteman |
Sun, 31/05/09@17:59
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I think your Bank would be the obvious choice as long as you can put your house or something like that up as a guarantee of payment.
I would imagine that it would be extremely hard to get financial help from them just now.But you never know.
It is probably an excellent time to open up something like that with a lot of folk spending their holidays in the UK now.
But it does look like it will be seasonable with all of the work in the summer and quiet in the winter.
I wish you both the best of luck and hope that you get the financial backing that you need.
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QuizMan |
Sun, 31/05/09@18:21
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What a bank is prepared to do depends very much on how much you are able to invest yourselves, the strength of your business case and (depending on how much you wish to borrow, what security you have available.
Taking the first point for starters, no bank will put up 100% of the project costs. Ideally they are looking for 50/50 between your contribution and theirs. They are unwilling to take all the risk while you take most of the profits. That is even more relevant in the current climate.
Talking of profits, the next point is to get your business case, operating budget and cash flow forecast prepared. Depending on your own financial expertise, you may need help with this. You need a business case to set out what you are trying to achieve, how you are going to get there and the strengths and weaknesses of your aims. The operating budget will prove (hopefully) profitability and the cash flow forecast will confirm how much you need and how the business will generate funds to repay a lender.
Lastly there is security. If, as wiz-king suggests, you form a limited company, the bank will look for personal guarantees as a minimum plus other security to back up the guarantee. This is likely to be a first or second mortgage on property such as matrimonial home, if there is one, but it can be more liquid assets such as stocks and shares.
I hope that this helps. Good luck.
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GANDALF <|:-)> |
Sun, 31/05/09@18:35
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It may be a lovely place but for 5 months of the years there will be few visitors who will be your main market. Bear this in mind when forecasting cash flow.
Funding will be difficult in present times, more difficult than ever before and you will need a large deposit with financially strenuous guarantees. Also remember that more people may be spending holidays in the UK but take this with a pinch of salt...2 weeks in a half decent 2/3* hotel in The Lakes is incredibly expensive when compared to 2 weeks in a 4/5* hotel in Egypt. The reason people will holiday in the UK is because they are not wanting to spend too much money...in theory. I would seriously think about 'putting up your house' as collateral. That flippant remark could be the most expensive you ever hear.
G
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Forum Editor |
Sun, 31/05/09@19:27
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We have a Business forum for this kind of enquiry, and I'll transfer your thread there now.
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tein |
Sun, 31/05/09@19:37
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Thankx FE i wasnt aware there was this thread!
Thankyou members for ALL your help Thats been GREAT!!
Kindest Regards
T
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DieSse |
Sun, 31/05/09@19:46
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The first thing you will need if you approach any outside sources (and for your own benefit too!), is a Business Plan.
This will need to cover what you're planning to do, and how, and why you think it will work - plus a profit and loss forecast and a cash-flow forecast.
Here is a site which can help click here lots more of you google.
You'll need to specify how much money you will put into the business, how much you want to take out, what you estimate you can sell and why, the terms of business with your suppliers (which will affect your cash-flow), and so on.
Cash-flow is exceedingly important - many profitable businesses go under simply because their cash-flow is out of kilter. There's a big difference between profit and cash!
Negotiate hard with your suppliers to get discounts and good payment terms. The times are on your side.
Don't make your plans overly optimistic, and plan for what you'll do if you fall behind with them.
Look at all marketing opportunities - the shop - mail order - direct marketing to surfer clubs, the web, etc. Put together some special packages for them. Look at finding places for surfers to stay (for a commission, of course) which you can market along with goods. Look at marketing overseas too. In short look at any and all opportunities your basic business will open up.
Don't start up at the wrong time (ie after the start of the season) - otherwise your leanest times will be too soon.
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DieSse |
Sun, 31/05/09@19:50
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PS - try amd join any and all relevany business and trade associations, and get to use as many of their logos as you can, too.
And checkout the competition thoroughly.
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DieSse |
Sun, 31/05/09@19:51
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E.g. click here
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tein |
Mon, 01/06/09@08:56
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DieSse"
Thankyou so much for your time!
I' am very greatfull for your time & effort the info is of great need!
Kindest Regards
Tein
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tein |
Tue, 02/06/09@18:08
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Hello everyone!
Ive just got the business plan from the bank, it comes in the form of a DVD can anyone help me with what figures id be expected to identify & produce in this please & how would i estimate these.?
Regards
t
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wee eddie |
Wed, 03/06/09@09:10
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tein I hate to damp your enthusiasm but:
You may need to borrow money to cover the costs of setting up the shop before you have an income stream, rent, shop-fittings, stock, advertising, your living expenses, and possibly, staff wages, etc.
Remember that you may have to sign a Personal Guarantee in any Loans that you take out. This means that, should the Business not survive, you will have to prove that you can find the money to pay them off. For instance, you may need to put the Deeds of your Home in the Banks hands. Should the worst happen ~~~~~~~~ They will then sell the House to recover the Loans.
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DieSse |
Wed, 03/06/09@11:12
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"what figures id be expected to identify & produce in this"
All your costs, and all your income. Plus a schedule of when it comes in and when it goes out (that's that cash-flow is - it tells you how much actual cash you have at any one time.)
Normally you would do this on a monthly basis for at least a couple of years.
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Chris the Ancient |
Thu, 04/06/09@15:39
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tein I applaud your desire to think in the terms that you do.
However, I do feel, from what you have written so far, that you may be venturing into a great unknown deep hole. One that could cost you more than you could ever realise - financially and emotionally.
Many years ago, I went into business on my own account. I was given advice by my local Training & Enterprise Council (TEC). I'm not sure if these are still around, but if you can find one in your area, give them a ring. Usually, the first session is free.
The best advice I was given, back then, was to buy this book... click here It is a good guide into what is involved in starting a business and it is expressed in easy to understand language.
It also gives a concept of what sort of work and figures are involved in producing a business plan. Expect to spend a lot of time and a lot of iterations in getting it right. There are no short cuts. The first thing that any investor (or bank) will look at is the quality and apparent thought - then the actual figures. There are no right or wrong answers as to what they look at, but a poor business plan will go no further than the 'round out tray'.
Drafting and producing this may also well display why you (maybe) should not go the way you feel looks good. A good business plan will help you decide if your idea is sensible or not.
Buy the book. It could well be the best investment you will ever make. I did when I started - and it took me a good 3-4 weeks to get it in a presentable form.
CtA
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Chris the Ancient |
Thu, 04/06/09@15:41
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ps Peter Higston has also produced companion books in the series to help with marketing etc. But the one mentioned is the starting point.
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tein |
Sat, 06/06/09@14:31
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wee eddie/DieSse & Chris the Ancient!!
Thankyou so much for the replies!
I appreciate the link as well Chris il have to look into this!
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RealGem |
Thu, 11/06/09@22:51
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Banks are not lending to small businesses at the moment.
It would be a lot less expensive to learn internet marketing and have an entirely online business until you have enough to buy or rent a shop.
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wee eddie |
Fri, 12/06/09@08:00
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Some advice I was given Don't start a Business if:
You are not prepared to work for nothing for the first 2 years.
You are prepared to take no days off for the first 2 years.
You are available to work round the clock and every weekend.
Your knowledge of the product is not encyclopedic and you don't have sufficient Funds to employ someone who has that knowledge. They will be able to charge you "top whack" until you know sufficient to replace them.
Have eyes in the back of your head, otherwise half your stock will walk.
One of my Chefs thought that I had an easy life and started a Delicatessen using his own considerable Cooking Skills to prepare "day goods" for resale. Unfortunately he took 2 Holidays in the first year and returned from the second to find that his Shop had been visited by the local EHOs while he was away. It closed shortly after, loosing his Mother's House as well as all his savings to pay for the stock and equipment.
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wee eddie |
Fri, 12/06/09@11:30
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The paragraph below should start with an "If" Your knowledge of the product is not encyclopedic and you don't have sufficient Funds to employ someone who has that knowledge. They will be able to charge you "top whack" until you know sufficient to replace them.
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