Setting up a business and shop, advice and experiences?

[[Phexxie]]

This isn't quite a 'oh, i want to sell dreads, how do i do it?' post

This is more to do with setting up a business in terms of having an actual shop, dealing with wholesale etc.
I know a few girls on here have shops, so I would love to hear your advice and experiences!

If there is already a thread concerning this, please point me to it as i couldnt find anything specific...

Anyway, what im hoping to do is open a shop, just a small-ish one
Selling stuff like clothing, shoes, accessories etc. and possible having a website to accompany
Its an idea i have wanted to follow through for a long time, but im just unsure on the ins and outs of it all

I have an idea of the companies i would like to approach for wholesale, a lot of places sell the same old stuff and im hoping to bring something a little different, so im considering the likes of Bat Attakk, SDL, Aderlass, Lip Service, Punk 69 etc as opposed to the more common brands you see in shops like Living Dead Souls, Burleska and Criminal Damage
I would also really like to offer handmade accessories and clothes from smaller independent companies as well as some of my own handmade goods including dreads

Of course, i will need a shop, so theres rent and bills to take into account as well as wholesale budgets
I may need to employ 'staff' at some point but i doubt the business would be large enough to bother! but if i do, there would be wages to think about
And general living costs for myself, i need a roof over my head and food on my table!

I understand there is a lot of thought and effort to be put into this, and most businesses make a loss in the first year or so
I am aware of the availability of business loans from banks, so would this be something worth looking into?
A large problem i face is of course the current economic state, so would it be worth considering in this climate?

There is a possibility i will be moving in the next few months so of course i wont be setting up anything until i am settled, but the town i am moving to has nothing like this and from what i have seen there is most definitely a market for it, it is also a popular 'day trip' destination and surrounded by other popular holiday locations
There is also a city nearby that has nothing but a tiny, matchbox sized Soho store, so that location could be a possibility to but i should imagine the rent for shops is much higher! however, more customer potential and more passing trade?
I should imagine my main customer base would be young adults, teenagers and their parents

I do not want to do this to make loads of money and be amazing, i want to do it so i can work for myself selling products i myself would wear and enjoy rather than something i hate and working for a company i have no love for
I have always been the type to do things for myself and because i want to, and its about time i stopped working for other people and made myself happy doing something i think i would be good at and enjoy

Any advice that anyone can give would be absolutely wonderful and greatly appreciated!

[MrsEss]

There's a similar thread, might be of some use to you: viewtopic.php?f=25&t=14645&p=256280#p255199

[[Phexxie]]

Thanks for that Sarah, some good info there!
Looks like a visit to the JC may be in order... though i do work full time, and they dont take to kindly to people who are looking to give up 'a perfectly good job' for anything that may actually make them happy
we shall see....

[MrsEss]

There might be a local charity ran place, I was given the name for one here. Failing that, you could always go to the princes trust. they have some really good advice & will give you a loan to get set up. You do need a business bank account before they'll pay you though, but that's an easy enough thing to set up.

The JC should be able to point you in the right direction of local places that can help you though.

Good luck Laura!

[[Phexxie]]

thanks hun

this is probably the scariest thing i have ever done in my life lol, im going to be doing some hardcore saving up over the next few months!

[iamdolleyes]

when I was in highschool I took an "entrepreneurship" class. We had to go into a bank and pick up their business plan and loan kit, and write up a plan. then they had bank loan approval officers come in and hear our proposals.

uh, the whole point of this story is there is probably still a similar kit out there from banks, or even your municipal/local government (here the process would be to check city, then province, then federal websites for info and kits..so I imagine it would be similar for you even overseas)

From what I know and remember, it will really help you consider all those things you are so worried about (and rightly so, because many people forget!) including you know, rent and utilities, insurance, misc operating costs, display..etc

My city (and every city I've lived in so far) also tends to have a small business or entrepreneurial association, where there are resources to help new/startup companies (such as planning info) help with local bylaws or whatever, and often times they even have like, group breakfasts (lol) once a month to get together with businesspeople in your area and just chat. I can't say I'd be in on the breakfasts, but hey you never know right? The local government also has a branch dedicated to info for small (brick and mortar) businesses.

best of luck to you, sounds exciting!

[[Phexxie]]

thanks sweets

when i was signing on, i remember being referred to a company called 'Enterprise' if i remember correctly after i casually mentioned i wanted to sell dreads as a small side business... they thought i wanted to set up a salon or something which wasnt quite what i meant!

anyway, i never did get to see the Enterprise advisor, i turned up to my appointment only to find the building locked and no one around to tell me what was going on... never did find out what happened
but the point is, there is help available here that i know of and im hoping there will be more that i just dont know about yet
i think a quick visit to the JC as Sarah suggested might be in order, i had a look on the Princes Trust site and kinda just went and closed it down lol... clearly i do need and want someone in the know to help explain it all to me and give me the knowledge i need to take it further!
i just hope the JC dont fob me off like they usually do... my local JC and its staff are quite honestly useless at the best of times
im half considering finding out if there are any adult night courses at the college in business and finance... good/bad/pointless idea?

ive been on the phone to the other half taking ideas and im getting terribly excited now, i have so much swimming around in my mind that i dont know what to do with it all!
i think its list making time

[dragongirl]

I've been running a shop now for over a year. My first advice would be try trading from a market stall in the town you want to trade from to build up a custmer base. Most town's have some form of market where you can rent a stall on a temporary basis. Also look for local events and craft shows to build up money to take your business to the next step.

I traded at craft fairs, markets and one off events for 7 years before I took the step of resigning my full time job to open a shop. In the past year I have moved to 3 locations, slightly bigger premises each time. So I would recommend not putting all your eggs in one basket. Try to get a short term lease to start so if the location doesn't work out for you, you have the chance to move. Most land lords are desperate to get tenants in as there are so many empty shop units at the moment due to the recession, so don't be scared to barter and haggle as they will probably be willing to cut you a deal.

The most important piece of advice I can give is make sure your business is forever changing and diversifying. Bring in new lines and discountine others when they are not selling. Listen to what your customers want rather then what you want to stock. Have a range of prices. You are more likely to sell lots of cheap things and the occasional more expenive item rather then just stocking lots of expensive items.

With regards to money. I did not have any savings or a loan when I opened my shop. I had built up stock from things I made and brought the stock for the shop from my last pay check. Family loans are very helpful if you have family willing to help. My husband lent me £4K as my start up money which I've paid back within a year. Then as I've sold things I've been slowly able to build up my stock levels with the money I've had coming in.

Don't expect to bring in any profit for the first 1-2 years. Again this is where a supportive other half comes in handy.

I have to admit I've not read many books or been given any advice from anyone about how to run a business, I just threw myself into it as I was fed up in my old job and loved running the odd stall and decided thats what I wanted to do.

Finally don't be scared or put off. Give it a go and if it doesn't work out for you, at leat you'll know you tried rather then thinking, I wonder what would have happened if....


Oh and I wholesale my jewellery at www.dragondreadswholesale.co.uk if you'd like to stock a fellow small buisness

Let me know if you have any other questions.

[[Phexxie]]

aww thanks Sally, thats really encouraging
im way ahead of you... already looked at your wholesale site and youre on my list lol

the more people i speak to, the less scary it all seems, i think i might just be able to pull this off with the right support
i would LOVE to get into going to craft fairs and the like, but due to my full time job and god-awful hours i have no time to make any stock
its something that i will keep in mind though, im thinking about trying to find a part time job or cutting my current hours and doing some crafting on the side to build up my own stock to go with the other suppliers i want to stock stock, as well as make a bit of extra cash... but i think i would miss my full time wage too much because of my debts and standing orders, i dont know >_<

my manager at work has actually offered to sit down with me and help me draw up a business plan... not the response i was expecting but a bloody great one non the less!

i just hope im not biting off more than i can chew... im renown for doing that

[SdSiNthetics]

I only run a tiny hair business but my one piece of advice would be not to throw yourself into the deep end, it seems so obvious, but don't make a date to open as chances are you wont be ready, do a couple of practice runs for discounted price, make sure everything is considered as not to loose yourself in the first few weeks best of luck, I hope it goes well x

[dragongirl]

Thought I'd add this here. I've written a blog about my first 2 years of starting a business and what happens day to day. Check it out: http://dragondreads.blogspot.com/2012/0 ... ragon.html

[Goffy_lucc]

Sally, that is so SO helpful. Really informative and down to earth. Thank you, I have it bookmarked now.

[Psychotika]

Thought I'd add this here. I've written a blog about my first 2 years of starting a business and what happens day to day. Check it out: http://dragondreads.blogspot.com/2012/0 ... ragon.html

Cool, thank you for sharing this!

[Izzybeau]

Sally, I just read you're whole blog about your business over lunch and loved it. Its completely inspiring and has given me hope with pushing on with doing something like that for myself. Although If I do get going it will only be online and at the odd event/craft fair. But fair play to you having the guts to do that and making a go of it.

How are things in your second year? Is business still good for you in the recession?

[dragongirl]

Thanks. I found it quite freeing to write. I just wanted to give out some advice from what I've learnt so far. Just added a new post about my experience at a Trade show if your interested

[Little Wicked]

This is exactly what I intend to do sometime in the near future. At the moment, I work full time as a civil servant, and I hate it, I'm really sick of working full time in jobs I hate! So, the plan for me is to open up my own shop, starting off by selling on eBay and etsy (for my own handmade stuff only), and using those outlets to build up enough capital to open up a physical shop premesis.

Like Phexxie, I'm intending to stock established brands, but less common ones like Lip Service/collectif/mode wichtig, along with some more high-end expensive brands like Stop Staring & Mode Merr. I'd also like to stock my own designs (I studied fashion design at college), but will keep the wholesale brands so that I'm not totally dependant on the more expensive handmade clothing selling to make a profit.

Depending on what our decision is regarding emigration (my husband and I are considering emigrating to Canada), I will either work full time for another year to year and a half (if we stay in the UK) and use the period of steady income to gradually build up my business, or if we do decide to emigrate, I'll work full time for another 2-3 years, then open up my own business from Canada once we've emigrated.

Good luck to everyone!

[[Phexxie]]

I didn't realise this thread was still going!

Well, if anyone wants an update on how things are on my end... they aren't, lol
It looks like I may be moving to Wales at some point this year for sure, so being sensible I've put my plans on hold for the moment while that gets sorted out

As for the handcrafted side... I have every intention of selling one-offs and the like as soon as I can while it is something I can still do at the moment. We shall see, I think sometimes it's very easy for me to underestimate how busy I actually am!
It might not be anything big, but it's a start and it will also be something of a springboard into online selling which, after some thought, is how I think I want to start out and save the physical shop for a later date when things are more established and I'm feeling comfortable with it

I'm still very much in the frame of mind that this will be the right path for me and I'm determined to bring it all to life, all I need todo islearn to manage my time a bit better... I've never been that great with time management!