Go Back   Teneric Business Forums UK > Small Business Forum > Finance Forum

 
Thread Tools
15-01-2007, 01:40 PM
  #1  
envyjewel's Avatar
Business Planning
 
Join Date: Jan 2007
Posts: 5
Question
I have £7000 cash in bank at the moment, and I am thinking to open a small grocery store in Hampshire, but the premises rental is high, minimum is £15000pa exclusive. There will a partner who has only few thousands to contribute to the store, taking all these into account. Does the financial situation look good? can we borrow loan from bank and roughly what figure we can get.

many thanks for your input.

regards,
EJ
Reply With Quote
15-01-2007, 03:56 PM
  #2  
TWD-Tony's Avatar
Moderator
 
Join Date: Apr 2005
Location: Manchester, UK
Posts: 773
In my honest opinion - If you don't know how much money you will need to startup then you are nowhere near ready.
You will need a business plan for starters (before you even approach a bank) and you will need to sit down and think of every cost possible for starting this business, a simple list would be:
  • Premises
  • Stock
  • Fixtures & Fittings
  • Equipment (Till etc)
  • Sign writting
  • advertising
  • New van for trips to the cash and carry
  • Legal fees (companies house, accountant etc)
The list is far from complete and just what I can think of off the top of my head... When you have finished your list and have a total price for your startup add about 10-15% on for things you have bound to have forgotten!

On the PLUS side, banks do like you to put some of your own money into these things - the more the better
__________________
Total Web Development - Business Website Solutions.
Feel free to contact me with any website issues.
Reply With Quote
15-01-2007, 04:39 PM
  #3  
envyjewel's Avatar
Business Planning
 
Join Date: Jan 2007
Posts: 5
Wink
thanks Tony.

You are right, I need to work out a detailed business plan before go to the bank.

regards,
EJ
Reply With Quote
15-01-2007, 04:58 PM
  #4  
Eagle's Avatar
CEO
 
Join Date: Dec 2004
Location: UK
Posts: 285
Obviously, it depends on size but I'd say you'll need at least £20-30,000 for your initial stock.
__________________
Logo PortfolioBitmap Redrawwww.eagleimagery.co.uk
The UK-Centric Business Network: UK Business Labs Forum
Reply With Quote
16-01-2007, 12:15 AM
  #5  
envyjewel's Avatar
Business Planning
 
Join Date: Jan 2007
Posts: 5
Unhappy
Hi,

Thanks.

£20000-£30000 is too much for me

regards,
EJ
Reply With Quote
18-01-2007, 11:42 PM
  #6  
Business Director
 
Join Date: Apr 2005
Location: Essex UK
Posts: 73
I'd say £20-30,000 for your initial stock is on the high side, unless you are trying to compete with a major chainstore that is, and it doesnt sound like you are to me.

I think the best advice has been given (Do a business plan)

Out of interest though.......why a 'grocery store'
Reply With Quote
26-01-2007, 04:29 PM
  #7  
Business Planning
 
Join Date: Jan 2007
Posts: 3
If you havent done a Business plan before the rule of thumb is costs twice what you think they will be and turnover is half what you think it will be.

7000 wont be enough,proberbly enough for stock but certainly not enough for premises,equipment etc and stock.

Then theres the problem of which goods are the bread and butter (no pun intended)for your enterprise and which goods will sit about for ages

This would be quite an undertaking from the word go ,personly i wouldnt even consider a grocery shop even the Business will be a nightmare to write up.
eg, who are your customers? you cant say everybody
how many tins of baked beans do you expect to sell each week?
not to mention perishable goods and loss due to wastage!

Mind you there are alternatives to a shop to test the water...if your concidering a local shop for local people why not go door door from the back of a van..dont laugh people do this all over the country and customers will try you out especially with tins and heavier items,dog food etc

5000 A5 leaflets telling people on what day/days you will be on their street,list your stock,prices discounts(buy one get one free) to drum up trade

most will order over the phone and you deliver and collect your cash,very low overheads and you can offer good value....just an idea,but im sure there are better one out there
Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
What can i open to start a new business??? pavels_k Starting a Small Business 3 18-04-2007 11:42 PM
Starting a Retail Grocery Store Georgeta Starting a Small Business 2 05-11-2006 11:58 PM
eCommerce Store Builders JSWEB Introduce yourself 0 17-01-2006 09:17 PM
Lingerie Store Seeks Partners slava Offers & discounts 0 03-06-2005 08:13 AM
Open Source blackcatz General Discussion 4 20-05-2005 05:06 PM


All times are GMT +1. The time now is 05:23 PM.


Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2010, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.1.0 ©2007, Crawlability, Inc.