Starting Up Your Own Business...

[Jimlad]

Ok... myself and 1 other person, maybe 2 are thinking of starting up our own business.

We were taking about it over the weekend etc, but we need to know what is actually needed.

We're going to see a small business advisor soon in the future to get some info from them also. The business would be shop based ( something along the line of Game/Electronic Boutique ). Eventually going into the online side of things etc also.

There is nothing like this in the area where we live. As long as we can slightly undercut the likes of Comet etc, it should be a good un.

What do you think ?

Any info greatfully received !!

:D

[Yarisboy]

so long as you can afford to pay business rates on the shop you're renting... and assuming you can undercut massive chains like comet/currys/dixons (all part of the dixons group), game... etc... you should do fine..

I would do some serious research however and really find out whether or not it's a viable enterprise, draw yourself out a business plan - and discover realistically whether or not you can sustain a profit, and more importantly... whether you can sustain a profit for 4 people... and more importantly still, whether all the effort for the profit you will gain is worthwhile...

the business advisor should help you out m8

sam

[Jimlad]

yeah... the business advisor will help alot. Interesting to see what they will say etc.

It will be a profit for 2 or 3 people max. Should see no probs about undercutting the bigger chains etc as there are not many round here and they do charge a bomb!

I could put quite a substantial amount of personal money into it initially to start it off etc.

Just curious as to how much shops would actually cost to rent etc.

Also suppliers etc for such a thing. Does anyone know if Entertainment UK supply video games etc ? I know they do Videos/DVDs.

[corollasr]

i'm gonna start a business sometime in the next few year doing an online mail order modifying site. got a mate who can do the IT side and i sort the rest. will be as well as a day job anyway

[vmail]

you gonna inform the tax ppl?

banks can give you a loan to start up

Im making a online thingy for a company for my uni project, looks like im using Win2003 and (PHP an MYSQL cos Steve sed)

an online thingy you need a merchant account(cost alot) and a business bank account(monthly fee approx 2.50 HSBC) plus surcharges

or use paypal/nochex/fastpay/pppay

then the hardest bit is the delivery cost, need to know the weight of the product first

[dave5282]

Jim, If your going into business like that, There should probably be grants etc to help you out, unless Scots setup is different

[Jimlad]

yeah.... that's what we were thinking.. a grant/loan etc to help start up. Need a good business plan put together tho also.

We were thinking of a bar/pub, but I've personally seen a few go down the drain recently which made me change my mind.

[Funkadelic]

Estimated cashflow etc etc...

LOTS of market research to be done if you're going to do it properly. It's not easy. You can pay other people to compile that sort of stuff but it's not cheap.

There are lots of books on the subject. Maybe you should have a look on Amazon.co.uk?

One of the best pieces of advice, however, is for God's sake make sure you're going into business with people you know you can trust. If you have a disagreement and everything goes !Removed!-up, the last thing you'll want is one of your partners trying to rip you off.

The odds are stacked in favour of you not succeeding... Just something to keep in mind as a motiviational kick up the ***** should you ever need it.

The problems with bars and pubs is the high overheads, coupled with licensing and the fact that most of them are just **** anyway. Being successful is about taking risks and pushing the boat out a bit.

[Moxy]

A mate of mine started up his own buissness last year and still going strong. He got a grant of a few k's from Scottish Enterprise and they provided support etc and still do I think. Might be worth giving them a try

Good luck

[Nicola]

Also think about if you can afford to live without a salary for quite some time.

Also think about the high street chains bulk buying, so they get a good discount (even though this is rarely passed on to the consumer). So undercutting them may be tough.

You know we are not trying to put you off, but just prepare you for anything.

What about distributing some questionnaires to find out locally what the public what?

My uncle opened a video shop quite a few years ago as there were no others for miles, but people were not interested and so it closed.

Good luck.

[Moffmo]

yeah about the pub idea.... You have to wait something3-5 years to get your pub license.....

[+Steve]

mate

best advice i can give you is

Set up an eBay store first.... you will have instant business to get you going.

shops are expensive.. better off doing it all online then you have the whole of the UK instead of your home town

[Moffmo]

Steve makes a good point mate...

if ya can find a supplier that would dropship , ya sorted mate...

[jaxx]

yes set up an eBay store and work through there

thats my prefered line of startup, ive had mine going a month or so now and its not doing bad. its hard work and requires alot of computer time and you need to sort your suppliers as always but its a darn sight cheaper than a bricks and morter shop!

mines currently work in progress but im gettin there its called RJL Autofactors if you search on the shops bit

but beware of the rather high fees that eBay can nobble you with if your not careful

(BTW not tryin to advertise steve just passing on my knowledge)

[+Steve]

with an avatar like that I would think you look real trustworthy too!

[jaxx]

oi! thats my hero your talkin about!

[Matthew_McNally]

do it through a limited company, with the voting and equity stock split equally between the three of you (or pro rata with the initial level of investment)

1 - the split in equity, coupled with a regular salary from the three of you, will resolve any money and profit sharing.

2 - limited liability can be a fabulous things - means you will not be in the position of sellng your house, car and left !Removed! to bail out your business.

[tezza]

You can claim the dole for 6months as long as you dont pay yourself in that time.

the dole fraud guy said it was a fine line but legal

Depending on the area and the time of year for funding, they may also pay you to go on a business start up course

[pizza boy]

Ohhh..money and "friends". Watch it m8 every1 has a story! Also grants are only supplied if you can prove you have a viable business to a panel(business gateway etc)They want serious kick azz market research and realistic estimates on the success of your business. Also im sure your not the only dude that hasnt thought if the idea in your area..must be a reason no1 else has done it.

Also starting a new company as a LTD is not a good idea as suppliers will not want to deal with you..think about it...new company thats an LTD wanting credit off you...so they can run up a high cred and run? Theyll say fack off...and come back when your mr sole trader so we can eat you if you screw us.

Whats up then Jimlad..you need a way to launder the money your making from your arms/drugs trade? :D

Stick to layin down tha goon fistin to yo' ho's

[Yarisboy]

jim, an online business would be much better for profit.

Think about it, you're not paying rental space, business rates, warehouse space, staff/employees, etc etc

You can work from home - using a JIT supply method, advertise nationally....

The only problem you face then is competing against the likes of www.play.com - who are very, very good at their game!

Try the eBay shop idea, if it works it will give you confidence to set up in scotland - if that's still what you want to do.

pubs/bars - are notoriously murderous to run m8... the success ratio of restaurants and bars is only 1 in every 20 survive..... scary really.

[pizza boy]

pubs/bars - are notoriously murderous to run m8... the success ratio of restaurants and bars is only 1 in every 20 survive..... scary really

Yea thats why they are mostly owned by dodgy geezers especially up here in Glasgow...theyre not in it to make money...they just want to hang out the washing

Like Jimlad!

[jez_1_2000]

*cough cough* gold members discount *cough*

:D

[Moffmo]

JIT = just in time

this is when you get stock when ya need it, instead of buying loads and paying money for stock to be stored that could go bad unusable.

On the other hard you dont get economies of scale (bulk buying discounts)

JIT will mean less stock wastage if ya go bust or if the stock is not needed.

[jaxx]

i use the exact JIT method!

sometimes i dont even see the things i sell!

i just have my supply send direct to customers doors

[LORD_ED]

pubs/bars - are notoriously murderous to run m8... the success ratio of restaurants and bars is only 1 in every 20 survive..... scary really

Yea thats why they are mostly owned by dodgy geezers especially up here in Glasgow...theyre not in it to make money...they just want to hang out the washing

Like Jimlad!

as some of you know i am about to open up my bar in battersea and they are can be a pain in the ***** to run but you have more control over changing your product than a game style shop. for example if the gastro pub idea which we are doing does not work out we can convert it into a young funky bar if that dosnt work we can............. you get my point.The trouble with opening the shop is that if you do start to undrcut dixons etc they might just drop there prices no skin of the managers nose not his money . i used to run wetherspoons pubs and all big companies are bullys and sometimes do not stop till they have put someone out of business.

and ive just remebered my ne****t competitor is a wetherspoons :censor: .

but i would recommend the pub game most go down the tube as they take the :censor: all the time giving themselves and there mates free booze using it to pull and dosnt care about the business it dosnt matter how busy u are its your gross profit u wanna look out for.

if you do wanna open ur own shop/bar wait a year or so and go and work for a large chain and let them train u up nick there operatingprocedures and then set up on your own

cheers

ed