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I'd like to pick your brains about starting a business

(7 Posts)
TheFunPolice Sat 12-Jan-13 16:55:32 clever, lovely lot smile I've had a brilliant business idea and really want to set it up. I don't want to say exactly what it is on a public forum, but it's completely above board. It'll be very unique in my local area. It's a physical business if that makes sense, as in having a premises, instead of working out of my home.

How do you get the capital needed? Are there loans/grants available to start up?

UnexpectedItemInShaggingArea Sat 12-Jan-13 18:40:28

You start by writing a business plan, including identifying the market demand and projected financials - sales, costs etc. - for min 3 years.

Grants and loans are available but it's not enough to have a great idea, you need to have all the detail written down

TheFunPolice Sun 13-Jan-13 16:59:28

How much capital, on average, do you have to have behind you?

sydlexic Sun 13-Jan-13 17:35:10

There is no answer to that question, especially with so little information.

TheFunPolice Mon 14-Jan-13 08:11:54

For example, how much as a rough figure, would be needed to start a cafe? I wouldn't have to convert the premises as it's already a cafe.

NotaDisneyMum Mon 14-Jan-13 18:38:34

There are so many variables - I've just done exactly what you mention, so these are the things I have considered:

What is my survival budget - how much do I need to "make" from the business each month to make it work?
You might need start-up capital to cover your living expenses until the profit is sufficient to live on.

What are the overheads for the business - how much does it cost to "open the door" each trading day?
Include the rent or lease, utilities, waste collection, banking charges, maintenance contracts, safety inspections, website hosting, insurance, services (wifi, merchant card etc). You might need capital to set these up/take them over and cover some of the monthly in the early months if turnover is low.

What is the age/condition of any equipment; will it need replacing soon? Allow some capital for replacing at least one of the essentials on day 1 as they are bound to go wrong at the worst possible time!

Will you be reprinting menus,redecorating, re-branding, replacing sundries such as tablecloths, displays, cutlery? This can add up - as I've recently discovered!

If the sale includes SAV (stock at valuation) then you'll need capital to cover the cost of the stock, plus extra capital available to fill the gaps - there might not be any coffee beans, tea bags in stock at the point that you buy it - I had to buy 16 different types of tea before I opened the doors, for instance!

Will you be marketing? What is currently in place to promote the business, is there a cost, and what extra advertising do you want? Press releases are great when you take over a premises, but with a lot of local rags you have to pay for a small ad alongside a half page editorial/photo!

Clothing! If you haven't got a suitable wardrobe for running a cafe every day, you'll need to buy some!

There's probably lots more, but if you want to PM me, I'll give you the warts and all story of taking over a cafe!

TheFunPolice Tue 15-Jan-13 14:21:16

Hi, I can't pm as I'm on my phone, but any and all information is welcome!

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