Leasinrt g a local Shop

KwackerJack

My local shop was closed or was closed down after only a few months, apart from having hardly any stock the stock that was present belonged to different stores

Anyway I'm looking at an empty store and thinking of contacting the owner about opening another store.

What are the usual up front costs and the general rules and regulations that go along with the whole lot!!

Are goods bought on a sale or supply basis or bought at my own risk??

DubTony

KwackerJack wrote: »

My local shop was closed or was closed down after only a few months, apart from having hardly any stock the stock that was present belonged to different stores

Anyway I'm looking at an empty store and thinking of contacting the owner about opening another store.

What are the usual up front costs and the general rules and regulations that go along with the whole lot!!

Are goods bought on a sale or supply basis or bought at my own risk??

Assuming its a convenience store, I'll ask this first? Have you got any experience? If you don't, you've got the same potential as the guy who just closed. If you don't know what you're doing, these things can be a money pit.

Anyway, you're looking at shelving, fridges, a counter and a cash register or two, and your cost depends on the size of the shop.

Free fridge from Coca Cola / Britvic. Cash registers can cost anything from a couple of hundred to thousands if you include stock control and scanning. Any shop fitter can give you a price on shelving, but there's probably a lot of second hand stuff out there due to the number of these stores that have closed in the last few years. Contact a leasing/hire purchase company to see what they might have repossessed recently for a good deal.

Stock is only sale or return (SOR) on chilled products, although a SOR deal on milk isn't even that easy to get these days. Almost everything else is at your own risk. You'll be hard pressed to get an account open with cigarette companies, so cash and carry will probably be the only option with a reduced margin.

Contact your local Musgrave Cash & Carry and ask to speak to the Daybreak representative. He or she will be able to guide you in the right direction.

KwackerJack

*Apologies for the title, no idea what happened *

Currently I manage a small casino so I have some idea of running a business but obviously a convenience store is different.

I plan to get all the information and legal advice I need before starting. I will look into business courses aimed at convenience stores and take it from there.

I can use the casino accountants as we have a good relationship. They do cost money but it's the extra peace of mind knowing my accounts are correct.

I will contact Daybreak and see what they have to offer.

Thanks for your reply.

highlandseoghan

The first thing I think you need to do is find out why the last shop closed? If it only lasted a few months you need to know why?

Is the rent on the unit to high?
Did the last owner not know what he was doing?
Is there too much competition?

Once you know the real reason it closed then you can start working on a very good business plan and correct what went wrong in the past. Do research ask around what people thought about the shop, what did they like and not like.

Customers want value nowadays and if your shop can offer good value it will be very beneficial to your business succeding.

Corkbah

also.... consider good security (thats costly - as you would know from the casino business)

KwackerJack

Corkbah wrote: »

also.... consider good security (thats costly - as you would know from the casino business)

The previous shop was very expensive even for bread, milk etc.

Also the owner never stocked to shop up so it always looked empty. The shop is surrounded by 2 large and 2 small housing estates and located directly beside a primary school so its in a prime spot!

Being able to match any other store locally is the key, people are lazy and if they have a shop beside them well that's were there going to go to!

As for security I'm hoping it will not be as high as the casino!! The tills and stock room will be monitored, CCTV is already installed outside. I have not been at the back of the store but a cctv/managers office will be needed and locked from staff.

If money needs to be transferred from till to safe a chute could be used so the room stays secure!

A convenience store is completely new to me so I'm learning as I go

Nuttzz

KwackerJack wrote: »

The previous shop was very expensive even for bread, milk etc.

Also the owner never stocked to shop up so it always looked empty.

That sounds like a serious cash flow problem, people might be lazy, I know I am, but I still buy my milk in a supermarket

DubTony

KwackerJack, I've been out of the business as an owner for over 3 years. Personally I wouldn't go back in unless I was hands off, but that says more about my unwillingness to micro-manage than anything else.

Here's a link to a post I wrote 2 and a half years ago. I think you'll find some useful info in there. It's quite specific in that it pertains to the time and the impact of the recession on the c-store business. Some of this is still relevant.

http://www.boards.ie/vbulletin/showpost.php?p=67206559&postcount=8

For context this is the full thread http://www.boards.ie/vbulletin/showthread.php?t=2055411079