is £7000 enough to open a grocery store

[envyjewel]

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

[TWD-Tony]

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

[envyjewel]

thanks Tony.

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

regards,
EJ

[Eagle]

Obviously, it depends on size but I'd say you'll need at least £20-30,000 for your initial stock.

[envyjewel]

Hi,

Thanks.

£20000-£30000 is too much for me

regards,
EJ

[UKRobin]

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'

[davezzr]

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