Small business - with shop ideas

[Skint2022]

So I’ve been given the opportunity to rent a small shop in a small market town local to where I live. I’ve been looking for a move out of the industry I’m in and start something new. I’ve always dreamed of having my own small business and this opportunity has made me really stop and think. I’d love to sell children’s clothes/toys/books but I’m just wondering if this will be profitable? I’d be leaving behind a 50k salary and the thought is quite daunting. Any other ideas? I’ve not done anything about this dream before as I just don’t think I’m going to be able to match my salary and the thought of failure is quite scary. I’d be happy to sell online too but just looking for some advice really. I gather this may not be the best place but posting for traffic in the hope someone can help. My family run a business but in a different field so I’d have support with the admin side of things.

Have you done any market research specific to the location?

A kids clothes shop might do well on a high street in an affluent town with lots of SAHMs ans surrounded by "naice" independent shops, whereas it could be a very different story in a struggling, post industrial town where the other shops are either big name discount shops, charity shops and nail bars (or boarded up!!)

Do you need to maintain your 50k salary? How long can you manage without it?

Clothes/toys/books you'd be competing unfavourably with online retailers.
How about something along the lines of artisan food/cheese/coffee?
What's the local demographic?
What would your competition be?

Well tbh OP, it's really hard to comment without knowing the town, what's available there already, the sort of average income, what sort of footfall this shop will get. Is it a touristy town? You'd have to do this sort of research really rather than ask on here as it would vary wildly between market towns.

I appreciate this is very preliminary casting around and you obviously weren't thinking of just opening a shop off the back of MN advice. I'd try your family for advice maybe as they know the area and business?

I would do lots of market research, average incomes, working patterns (no point closing at 5pm if most people work conventional office hours!). You need a usp

Hey OP,

How come the shop has come up for lease? What was it before, can you look at the books?

Be wary of business rates. They can be VERY expensive and long-term binding, so if the lease has come up and appears cheap or unexpected, look into that.

Most small retail business only cover their costs in the first year or so (if at all) so bear that in mind if you need a significant income.

Be aware of what you are committing yourself to on a shop lease. For what is included, the cost and for the contract duration.

Can you sustain yourself for an initial period of time preparing the shop before you open, and for business to begin to take off?

Are there shop fittings already? Will you have to provide everything in an empty shop? (Can you negotiate disposing of the former fittings and cleaning a vacated shop? And is it worth your while to do so? - that gets you existing fittings, but takes your effort & time and you then need to dispose of what you aren’t going to use)

Commercial rates, the rent and utilities are the obvious starters. But retail landlords don’t have the same landlord responsibility as domestic landlords do. If the roof leaks that can be your problem, so you want to start with a good roof and then look after it
(There are retail properties around here that businesses are taking on then leaving - the
landlords don’t want to go to the full expense of works required, and are managing to lease out to businesses - even if it’s at reduced prices and shorter term leases)

Look into any business subsidies, is there a business start up subsidy, rates concessions etc

(Check against different types of business use as this can effect your business rates and eligibility for subsidies)

Would the business be viable when subsidies run out?

Is the shop suitable for your possible use - stock room, parking, loading access etc?
Is your potential business viable ?
Can you diversify ?
(Can you see their contract terms? That can restrict changes to your business and what your can do to the shop such as painting, fixing to walls, etc)

Thank you all, some helpful advice here and lots to think about.

You can’t just open a shop because you have an opportunity to rent somewhere. The idea and business plan comes first, the actual physical space is only one small element out of running a business like that. Based on your message, I think you should stay in your job for the time being until you have a much better plan. The physical space will be easy enough to come buy as businesses like this fail all the time and units become available.