Starting a shop

[Imme]

Hi Guys
I am about ready to take the plunge.
I have been looking for a while and have now been offered a small shop at a very reasonable rent but I need to know what other costs are involved.
I have not run a bricks and mortar shop before and am unsure about what insurances etc are needed.
Any other advice all of you that have a shop could offer would be very much appreciated.
Cheers
Rob

[smitch6]

Hi Rob and congrats for taking the plunge
it's something i'd love to do but haven't got the money

you'll need 3rd party insurance incase a customer hurts themselves in your shop, and if anyone has a reaction to any of your products etc.
if you have any staff you'll need insurance for them.

would love to see some pics when it's all up and running

[Imme]

The wife is being made redundant after 17 years, and she is quite a good sales person and works for free (NOT).
It just seems to be falling into place at the moment.
Is the third party insurance you mentioned the same as public liability insurance?
Cheers

[smitch6]

yes i think so but don't take my word for it
i haven't had a shop for a long time now so i'm not keyed up on the ins and outs sorry

what i did though when i got my shop was to ring a broker and ask their advice, then when you know what you want ring around and get the best price available from a reputable insurer

[Earl Smith]

My advice before you sign is to see what the conditions are in the contract if you have to get out. Is there a rent assessment halfway through and so on. Why is the rent reasonable? Is it privately owned and are they likely to sell it to a big concern? Is there a likelihood of a new shopping center being built nearbye?
Im saying this from experience. My reasonably priced shop was owned by a pensioner, he decided to sell to a big concern because he didnt want family problems when he died. New shopping center was being built and the rents went sky high at the rent review, thanks to the new shopping center.
Rent went up by four times ( 7,000 to over 30,000 pounds) and I couldnt do anything about it. Had to get out as I couldnt afford the new rent. Had to pay the next four years of the rent so I lost my house, business, car and all. That was 21 years ago and the shop is still empty.
Sorry for the negative reply. Im sure your place is OK. Just be very careful and trust nobody.

[bassqee]

Its a minefield running your own shop - remember you'll most likely have to pay for any and all repairs that need done. (i suggest getting a survey done before signing anything) Get the contract checked by a professional, just to be on the safe side.

You'll have rates to pay (unless your in an area that do small business discount) check out how much they wil lbe along with any other levies you might be expected to pay. Also building insurance - you'l leave to pay that (make sure it has the insurance!)

in terms of insurance - public liability is a must and professional indemnity is useful if you screw up a big job.

Colin

[Fidget242]

We took the plunge in September last year, loving it so far

As has already been mentioned you will need public liability insurance. Most commercial leases are classed as a 'full repair and insuring lease' which basically means YOU need to get insurance and YOU are liable for any repair work that needs to be done inside the building (anything outside the shop is the landlords liability). We were lucky as we have fantastic landlords that sorted our insurance etc out for us, they also call in every other week and have a cuppa etc just to make sure we're happy and everything is ok.

You should also try and get an escape clause in your lease (so you can leave after 6 months or 12 months if you need \ want to). We have an option to leave in July or December this year if we want to.

My advice is to make sure you work out exactly how much this is going to cost you first and make sure you can afford it in the long run. Remember you'll get bills for electricity, water, gas if it has any, internet\broadband if you need it, business rates, insurance, etc. Also if you've got snoops around you'll end up needing a license just to listen to your radio. We also have a couple of fire extinguishers for health and safety - and they need an M.O.T every 12 months which costs about £40. It all adds up really quickly and can end up costing a lot more than you expected it too!

Also you should see if you're in one of the lucky areas for small business rates relief - it's free until next year and then it goes to a 50% discount after that.

[Ian M]

One thing I would do is get in touch with the local Chamber of Commerce as they should be able to answer all your questions. I've found the local Chamber are so willing to help you without even being a member.

[Imme]

Wow guys, it makes me wonder what we are getting into.
Thanks for all your advice and guidance so far.
The shop is owned by the proverbial friend of a friend.
But the contract they are offering does have a get out clause.
Not sure if we are eligible for rates relief but taking Ian Ms’ advice and getting in touch with our Chamber of Commerce should help answer most things
Guess you can’t learn everything on YouTube
Thanks Again
Rob

[bassqee]

Its a huge leap to move into a proper premise where you need to get people through the door. First year will be tough, you need to build a reputation.