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View Full Version : to high street or not?



calvinabc
06-12-2015, 02:03 PM
we are thinking of opening a shop in the high street offering our services does anyone here do this/have done/tried failed? thoughts and comments please.

pisquee
06-12-2015, 02:16 PM
What service(s) do you offer?
Does anyone else already do this locally?
What are shop rents and rates like in your town - how many things would you have to make/sell before you made a profit?

calvinabc
06-12-2015, 02:42 PM
we do embroidery, vinyl printing, sublimation and engraving. so quite a few different things. we also do quite a bit of logo design work and work closely with a web developer. which is another service i would like to offer. and then probably look to add the pvc banners and flag banners. we dont do any marketing at all and stay relatively busy. but with more of a presence could be quite good i think. i dont want to give to much away on here re location just in case. but the small town is growing great new development with 150 homes starting soon. lots of small business already. fairly wealthy area. but would like to offer from business cards to engraved tankards the whole works.

the shop i have my eye on has been empty for nearly 2 years. very good location. lots of footfall not set back or anything. large car park due to supermarket. but £13000/annum plus rates and service charge. we have 2 young children 1 and 4 and i run a dairy farm in my spare time.(Ha ha ha).

GoonerGary
06-12-2015, 03:46 PM
I think there is more business online than there is on the high street. Do you need to be there and pay all that extra rent? How many people will google for your local business vs how many will drive past?

calvinabc
06-12-2015, 07:15 PM
i totally agree GG. but are finding more of my customers do not necessarily use online. 1 of them even asked what was this 3d secure on checkout the other day.

pisquee
06-12-2015, 10:08 PM
Have you looked at what rates are payable - sometimes they can be as much or even more than the rent is.
Think whether you need to be in a good part of town - are you wanting a shop front for passing trade, or do you just want somewhere they can come to in town- there may be other options with lower rent, and possibly no/low rates, if your local council are kind - ours has designated one part of our town as essentially no rates, and the rents are very low there too.

jennywren
06-12-2015, 10:22 PM
I have a shop and it works for me but like everything it is a risk, it sounds as though you are going ahead, and if you don't try you will never know. Do your homework, which I'm sure you have. Running a website alongside help but mainly I get orders through recommendations and word of mouth. These two ways are much better than advertisement, I have advertised and spent good money and only to find nothing comes of this. This could be just me but most people I have spoken to have said the same, and they have come come from hairdressers to butchers.

pisquee
06-12-2015, 11:19 PM
If the shop has been empty for 2 years, then you're in a very good position to negotiate terms - lower rent would be a start, or even a short 'trial run', if not a trial run, a decent amount of free rental period to allow you to get the shop fitted and established before you start paying etc etc.
Is a shame you weren't looking at this 6 months ago, to negotiate your trial run/free rent period to be around oct-dec time though - good time to get the shop established and have money coming in.

We're currently looking at getting our own shop (we set up a community art centre in partnership with a local charity, and are currently based there) and rent on the new shop (just across the way from the art centre) is only £5K per annum with no rates. It's two storey, so we'll have production upstairs, and downstairs will be the shop. All our products are our own designs though, we don't do personalised printing etc, so a different business model to most here, but can certainly see from our products sales in the arts centre shop that that rent us easily covered

we-print
07-12-2015, 08:55 AM
How do you run a dairy farm part time?

sent using tapatalk on my Note4

calvinabc
07-12-2015, 07:58 PM
we-print. i was being sarcastic. the dairy farm is a full on 4am till 7pm job with 230 cows. then trying to grow and develop our business on the side. yes should be able to negotiate fairly well. and will ask for some free time like you said pisquee. where do you draw the line between expansion or just happy as you are. this is the dilemma/conundrum i am facing at the minute. with a young family and already very busy is adding a shop going to push us over the edge or should we embrace the challenge now? i am a believer in if you dont try you will never know.

i do need to check on the rates. i know there is a quarterly service charge. are the rates business rates? would this be from the council? do small business not get a grant/relief from this?

GoonerGary
07-12-2015, 08:06 PM
I'm at that point too, sitting where I am or expanding. I'm turning away lots od work because I haven't expanded so it is time to start the ball rolling. Hiring an apprentice and finding a unit with cheap rent.

https://www.gov.uk/apply-for-business-rate-relief

logobear
08-12-2015, 01:39 PM
I would doubt that you could run a retail biz AND maintain employment on a farm...... doing 2 things badly instead of 1 thing well .....?
A thing to REALLY think about if taking on premises is term of the lease and frequency of rent reviews.
If you sign a 10 year lease, and you don't make the venture work, you are still liable for the 10 years worth of rent unless you can assign the lease or fold a limited liability company .....
Empty for 2 years, might settle for a token rent, but if you have a rent review it could go to arbitration and will be set as the going equivelent rent for comparables in your area, - it could go up A LOT, - and you cannot bail, - unless you write in exit clauses.
Finally, small business rates relief, - has been reniewed for a few years in past, but looks luike it ends next march, so rates return april 2016.
RV could be more or less than the rent you agree .....
I have traded from retail since 1987, and come from a farming background ....
with retail you have to be in & open, - not same as working from home when you can fit emails & making in with farm life.
imho you coudn't do both properly

calvinabc
08-12-2015, 02:21 PM
Hi Logobear. you are right on all fronts. i wouldnt be in the shop on a daily basis. that would be the employee or the mrs. i do the books and help out behind the seems manage orders, invoices etc, and the vinyl side. it would purely be on the mrs. so the decision is hers. would defo write in exit strategy, rates, rent, service charge, elec etc. £20000/annum.

i am just waiting for someone from council to ring back re rate relief. there is an 18month scheme which would save about £3200 in year 1. but not sure if that means up until april 2016. or if you have to have applied by then.

jonna
17-12-2015, 03:20 PM
rate relief is usually april to april or it was when i had my shop until recently. If your business is small and not expected to have a certain turnover then you should qualify. Personally if you have a dairy farm could you not have a seperate building on your premises to set up in? ( very little cost, no rent, no electricity bills, no rates , insurance would be minimal if any and you would be on hand to help on the farm. Be wary of going to big to fast printing etc is mainly seasonal . Will you have enough work to cover you through the quiet periods?

calvinabc
19-12-2015, 02:21 PM
hi Jonna. already spoken with council. the only relief will be about £250 for the year. i said to her not even worth bothering to apply for that. main reason for the shop would be its great location and footfall. we do embroidery, print and engraving so keeps us fairly busy all year round.

jennywren
19-12-2015, 04:18 PM
[QUOTE=calvinabc;107431]hi Jonna. already spoken with council. the only relief will be about £250 for the year. i said to her not even worth bothering to apply for that. main reason for the shop would be its great location and footfall. we do embroidery, print and engraving so keeps us fairly busy all year round.[/QUOTE
250 pounds is worth claiming for, it could pay for stock and in turn earn my more money, you are crazy not to apply for it, and I mean that in a nice way. Think of how many mugs you could buy with and the profit would easily double that at really cheap price for those mugs.

pisquee
19-12-2015, 06:09 PM
For small business relief, you should get the first £6K of the rateable value reduced to zero, and then a sliding scale up to £12.5K ... this only counts if it is your first/only business premises. From what you've said, is the business you're wanting to put into the shop part of the same company as the farm? If so, you would be better off setting it up as it's own seperate company.

logobear
19-12-2015, 06:09 PM
if it takes less than 2 and a half days to get the £250 relief it should be worth doing !