Advice on opening a small shop ?

Helpneeded2019

Hi over the last few months I’ve been thinking of opening up a small convenience store but I have very little knowledge on how to go about it what’s needed with tax/permits/stock etc

Also how much money would normally have to be put in to get started??

As you can tell by my questions I have little to no knowledge in this area so any advice would be much appreciated

Thanks in advance

Tell me how

Helpneeded2019 wrote: »

Hi over the last few months I’ve been thinking of opening up a small convenience store but I have very little knowledge on how to go about it what’s needed with tax/permits/stock etc

Also how much money would normally have to be put in to get started??

As you can tell by my questions I have little to no knowledge in this area so any advice would be much appreciated

Thanks in advance

Talk to your local enterprise office, they will have someone to talk you through the requirements.

There are training courses which you can apply for, you'll walk on to them if you are receiving Job Seekers Allowance, but even if not, they'll probably let you attend or you may have to pay a nominal fee which I think is €50 or less.

One thing I would say to you, is it is a cut throat business, particularly convenience stores who are competing with the centras/super values, fuel station forecourts etc not to mention the big players who try to grab as much business as possible.

I would have thought (but stand to be corrected) that anyone getting in to it would have experience of it having been something their parents might have done or that they worked in a management role within one for an extended period. Or maybe taking over an existing business where stock lists, suppliers, customer base and premises are already in place.

Definitely line up a good accountant who not only will be able to give advice but should help setup invoicing/accounts/cash flow etc.

It seems like a challenge, but best of luck if you proceed.

Trojan

There are some seriously good posts on this topic in the history of this forum - it might take a bit of digging, but worthwhile to do. In particular, posts from DubTony, although I'm sure there've been some other great contributors too.

This thread in particular is worth reading: https://www.boards.ie/vbulletin//showthread.php?p=84343510

DubTony wrote: »

The only way to learn about that business is to work in it. So you should probably get a job in a shop first.

While a small shop costs less to run, everything is relative. It's also limited in how much business it can do. Low cost can also mean low turnover if location isn't great, but consider that a bad location costs as much to run as a good one of similar size. Rates will likely be the same, while fittings, and ongoing costs will be the same. And without half decent footfall you'll become expert at sweeping the floor and tidying paper bags behind the counter. Pick the busiest location you can find.

You're unlikely to get any interest from a symbol group in a very small store.

Fitting out costs can be relatively cheap these days. Finding 2nd hand equipment will save you a lot. The trick is to drive the price down. Even half the price of new kit is probably expensive.

Good luck with that 40 hour week thing.

Costs of stock is hard to quantify, as I've no idea what sort of goods you intend to sell apart from the usual. But consider that the major distributors/manufacturers of confectionery, minerals, and crisps & snacks would easily have over 1000 lines between them. Then you've got greeting cards, news and mags, dairy, ice-cream, services (phone credit, bus tickets etc.) to name just a few on top of that.

Most suppliers won't touch you these days without bank guarantees or deposits. Certainly, you'll be buying cigarettes from a cash and carry as the tobacco companies just don't open accounts for independents so your margin will be reduced by half giving you less than 5% on each pack sold.

Newspaper and magazine distributors are to many retailers as bad as the shoplifters you're likely to encounter. They'll want a deposit up front and will then cost you an arm and a leg as you try to get back credit for undelivered product and uncredited returns.

To the experienced convenience retailer the business is a stressful minefield. Most of them have the map to get through it. Going into it blindly, and by blindly I mean without the necessary experience, is foolhardy at the best of times. And this is not the best of times.


*DubTony Wealth Warning: Do not go into that business without the necessary experience*

Other related topics might be worth a scan too:

https://www.boards.ie/vbulletin//showthread.php?t=2057192966
https://www.boards.ie/vbulletin/showthread.php?p=62511581

Go nuts with the search feature and see if you can dig up anything else from the best contributors on those discussions.