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I really really want to open a shop

23 replies

BlastedPimples · 30/10/2023 10:27

I don't live in the UK, first of all.

Where I live, bricks and mortar retail experiences are very important and still generate an awful lot of interest.

I really want to be in business. I've worked in shops before but not recently and am keen to learn as much as I can.

Can anyone give me any pointers or tips, please?

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Whataretheodds · 30/10/2023 10:28

What need or want does your shop service? Who would shop there? Who would your main competitors be and why would customers choose your shop over competitors?

BlastedPimples · 30/10/2023 10:40

Oh yes. I would cover all that in my business plan.

I'm just a little concerned about my lack of retail experience.

Bags of enthusiasm, through preparation and research might not be enough.

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Lamelie · 30/10/2023 10:42

Get some retail experience. Work for someone else or even volunteer first.

SuperLoudPoppingAction · 30/10/2023 10:44

Can you try it on a small scale in the first instance? Online or a market stall or pop up shop?

SleepingisanArt · 30/10/2023 10:51

It's not just working in retail! You need to know about buying stock, keeping accounts, cash flow, insurance, marketing, HR (for staff), payroll (for you and staff), security and more. You have to be prepared to work much longer than shop opening hours and to work very hard to drive customers to you. Owning a shop is much more about business management....

BlastedPimples · 30/10/2023 10:55

So my back ground is marketing so I have a good understanding of that.

Staff would be me and my business partner.

Hard work isn't something we are afraid of.

Things like insurance would be straightforward, no?

I am concerned about the product buying side of things. This is definitely an area I have no experience in.

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ErrolTheDragon · 30/10/2023 11:10

Finding the right shop to rent is obviously a major consideration. What's the situation re business rates?
What's the local footfall like?
Is your shop one which may attract people beyond the local area, if so is there parking?
What sort of lease - if it's a 'fully maintaining' lease make sure you understand what you're liable for!

BlastedPimples · 30/10/2023 11:18

Thank you very much for all these things to consider.

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BlastedPimples · 30/10/2023 14:10

I mean, there's nothing I can't learn, right?

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Goldenmemories · 30/10/2023 14:15

A shit shop? Or a store?

ErrolTheDragon · 30/10/2023 14:21

Goldenmemories · 30/10/2023 14:15

A shit shop? Or a store?

What?Confused

Silverfoxcub · 30/10/2023 14:23

Stand in your garden and burn a few notes of currency
That will get you ready for owning a shop.

user1497207191 · 30/10/2023 14:25

BlastedPimples · 30/10/2023 14:10

I mean, there's nothing I can't learn, right?

Well, you can always learn the theory, but practical experience is something you have to, well, experience!

I'd say dealing with suppliers, procurement and stock control are the hardest areas. Trying to find out where to buy your stock, how to "negotiate" volume discounts, retro sales rebates, advertising/marketing contributions, credit terms, sale or return, etc etc. You can only get that with experience - no one can teach you how to get the best deals, what kind of deals your suppliers give to others etc. Basically you need to learn how to haggle and that comes from experience, making relationships with suppliers/factories etc.

Try to avoid using wholesalers - all your competitors would be buying from the same places and wholesalers sometimes make higher margins than retailers (especially in food!). Try to buy from as close to the manufacturer as possible, i.e. direct from the factory, or at least from the importer/distributor, or if hand-made/crafty items, straight from the maker. Do your utmost to by-pass wholesalers!

Try to source unusual/unique items, maybe even by working with factories/manufacturers for them to make stuff especially for you, and you alone, that no other shops (or online retailer) are going to undercut you on price!

Re stock control, be very wary of buying too much stock. I presume you don't want to do a "pile it high, sell it cheap" kind of race to the bottom shop, so be particular as to your product range, keep orders/stock as low as possible, but at the same time, try to give a good choice/range to your customers. It's a balancing act really. Having too much money tied up in stock will jeopardise your business as you'd have to sell it off at a loss if you hit cash flow problems. Also, obviously, if your products have "sell by" dates, i.e. food, medicines or other perishables, even more important not to have too much stock! Sometimes, you really can have too much stock - if your shop is cluttered, it may put off customers if they get confused with too much choice or a confused range of goods.

Unfortunately, none of the above can be learned in theory! Well you can get the idea of the theory, but real life experience is the only way really to do it right!

Goldenmemories · 30/10/2023 14:27

Motherland reference: #shitshop. Couldn't help myself, sorry

SleepingisanArt · 30/10/2023 14:33

Insurance can be complicated! You need the right type to cover the products, fixtures and fittings, building (if not covered by the landlord in the lease) and public liability. Will it cover for fire, floods as well as theft etc? (We had the correct type of insurance which covered pandemic but it took the insurers 3 years to pay out and they only did so because the Court ordered them to do so - choose your insurer carefully.)

You will need a lot of cash upfront to buy stock - will it be sale or return or bought outright? Will you buy cheap direct from China or use a wholesaler?

Does the shop have fittings? If not you will need money for that. A cash register will be needed. Will you accept credit cards? Yes? You will need a way to accept payment.... Will you have a website? Hosting it costs money and if you can't design it and build it yourself that's another expense.

You will need quite a chunk of cash to get started and it could be 2 or 3 years before it is profitable enough for you to take a salary - so you need either plenty of savings or someone who will support you financially in that time.

shardash · 30/10/2023 14:37

BlastedPimples · 30/10/2023 10:55

So my back ground is marketing so I have a good understanding of that.

Staff would be me and my business partner.

Hard work isn't something we are afraid of.

Things like insurance would be straightforward, no?

I am concerned about the product buying side of things. This is definitely an area I have no experience in.

"I am concerned about the product buying side of things. This is definitely an area I have no experience in."

In that case, I suspect that you also have no experience in setting the selling price of the items you are buying in for resale. You can't just say 'Oh, it cost $10 so I'll sell it for $12 and make $2 profit' because you are forgetting that the cost of the item also includes a proportion of all your other expenses as well. For instance, if your rent is $1,000 a month and you hope to sell 1,000 items, then you need to divide the rent cost between the number of items you are intending to sell and include that in your calculation.

he true cost of the item to you is the buying price of $10 plus expenses of $1 = $11. Your selling price as in the example above would need to be $13. (cost plus overheads $11, profit $2).

That is just adding rent for the sake of a simple example. You would need to budget for all your expenses in the same way.

Oblomov23 · 30/10/2023 14:38

What sort of shop? Cakes? Fresh fruit? What are you selling? Can't you just initially sell online, eBay, set up a website? Less costs. See if anyone wants to buy at the price you've set? Before then opening an actual shop?

Needmorelego · 30/10/2023 14:41

Unless you are selling something that is really really not sold anywhere else in your local area then I wouldn't.
You've got to be something really unique and special.
If it's something unique and special would you have enough customers? Many independent shops only survive because they also sell online and the in-store sales are usually a small amount.

Iamasentientoctopus · 30/10/2023 14:49

.

mumda · 30/10/2023 14:56

Why am I coming in to your shop?
What are you selling?
Do you like people?
Do you like standing up all day watching your stock walk out of the door?

ReviewingTheSituation · 30/10/2023 15:07

It's hard. Really hard. I did it for 4 years, and turned a nice profit (but could only do that because I could afford to be without a wage for the first 6 months, so I could put profit back into the business initially). We remortgaged our house to get a bit of capital (£15k), so I didn't have expensive business loans to pay back, and my shop didn't rely on passing footfall (it was more of a destination), so I could afford to be in a slightly cheaper part of town. Added to this, I had a very high GM on what I sold, so my stock costs were low. But retail is relentless. You have to be there, ALL THE TIME (or have staff, but then £££), and you can't have an off day, or a day where you can just coast along doing the bare minimum. And you have to be good at doing everything - marketing, sales, customer service, accounting, stock control, cleaning, merchandising, admin....

All of this was 15 years ago, and the high street has changed hugely since then. Footfall is lower, competition with online retail is higher, budgets are stretched, customer expectations are sky high...

I loved it, for the 4 years I did it. I made a profit, and I sold the business. I missed my holidays, weekends off and was ready for a break from being 100% responsible for everything, all the time. And I was so glad to move on.

Do your market research - through clear lenses, not rose tinted ones - make a solid business plan, being totally honest with yourself about the numbers. Visit similar shops in other towns, follow them on social media and befriend the owners if you can. The costs in the first year can be huge, so make sure you know you can afford it.

If all that stacks up - go for it, and good luck!

Whataretheodds · 30/10/2023 15:48

I am concerned about the product buying side of things. This is definitely an area I have no experience in.
Concerned in what way? Your product is the core of your business.

BlastedPimples · 30/10/2023 17:33

@ReviewingTheSituation and @user1497207191 thank you very much for your insights. Much appreciated.

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