Oh deli deli me...

I'm in a quandarry. Work has been slow for a bit and I'm pondering new avenues, one of which is a new delicatessen. Not a coffee house or a cafe or sarnie shop but a proper deli selling charcuterie and other delights. I've contacted potential suppliers (all good) and seen a few places it might work (location is key) but obviously start up capital is an issue. I'm about to start looking at a loan from the EIB which are specifically for expanding and buying premises etc.
The thing is I've also just been offered interview for a fairly decent role in London, the spec of which could have been written for me!
Naturally I'm going to attend but I'm left with the question - 'Do I want to do it all again?!' (used to commute a lot, meetings and general officey business stuff) and if they offer me the job what do I do?!

I think I'll get the info on the loan to see if I can raise the cash in the first place and if that's a yes then find a location/premises. By which time I'll know if I'm offered said job and I can decide what to do at that point.

Thanks all, you've helped a lot

 

Early days! Had a chat with the bank after writing that lot out and after the 'essential' bouncing around between people I got told that yep, no probs the EIB loan is right for you... but they ran out of funds lol
'Oh bugger' I say, that's that then.

...'Oh we do have a new product that came out a few days ago to take over from it. Do I think that might be OK?' Well yes I said, I rather think you could have mentioned it much earlier though.

I hate bankers.

Business plan next.

 

Loofah, there's nothing wrong with wishing to start a business but there are many pitfalls and you need to look at things carefully.

Up to a few years ago there were many places that you could get free advice but, evne in that area, things are tighter now. There are still a few Enterprise Agencies around (free advice) but I don't know about your area. Then there was Business Link - but that Quango has been redirected. There may still be one near you http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&topicId=1073858805

This may be of some use as well.

http://www.syob.co.uk/startup-articles/start-ups.php

Your business plan needs to be very comprehensive and you also need to look at how to protect yourself if it fails. A Limited Company gives more protection but it is usually more difficult to get landlords to accept them unless you give personal guarantees anyway. The bank will also want personal guarantees and a large chunk of the start up capital to be funded by you.

Major expenses:- Initial capital expenses (apart from any premium for the lease) to include shop fitting and decorating, legal fees, planning permission if change of use, planning permission for your shopfront signage etc. Continuous expenses to include rent, rates, wages (+NIC etc), stock, utilities, insurance, repayment of loan, VAT (possibly), vehicle, advertising, plus many others.

Good luck but be wary.

 

I once met a chap while working on a project in London. I was telling him about a potential piece of work that I had to consider betting the house on and the nerves obviously shone through to him (a self made man); he said 'If you can't bet your house then you don't believe it will work and should walk away'. It made me think and in all future things I have had the same discussion in my head so only do things I'm certain will work out.

A little background on me... I've set up and help set up plenty of business, in fact I'm a business consultant. Rates have been sliced and diced and focus has shifted to the financial arena where I have zero experience hence the position I'm in. Business case writing isn't a problem but thankyou for the advice Shiney, it does focus me. (In my humble opinion by the way, business link are useless and far too tied up by the organisation itself)

How is it in my area? Wealthy. Do they all spend it? Nope, but for a variety of reasons - not too many really good shops to spend it in and accessibility. Location is key. The shops that have been closing here have been ill-suited to location and/or were always going to be fly-by-nights. There will be other factors that I want to examine further however.

In terms of an 'economic crisis atmosphere' a recession is the best time to open a new business as thats when you get the best deals. I agree that people read the scum gutter press and believe what is said, following like sheep because that's what they're told by people allegedly in the know. It's an issue but overcomable (is that a word?!)

Will people spend in the shop? Yes, the ones that would have anyway at least which is my target audience if you like. The actual business model is yet to be decided but it won't be a sandwhich shop! It will partner other local businesses though so catering isn't out of the question and I like the idea of having a greengrocery area and making my own 'stuff'.

Hmm business rates... all I can say about those is Yikes!

 

Andy, I agree with your assessment of Business Link but they may be the only thing available. In theory Business Link ceased to exist last year but some of their places have re-emerged under the new system.

I set up our local Enterprise Agency 35 years ago (these were originally completely independent and funded by local businesses and local grants - and the government had to put up as much as the local authority did) and it successfully helped lots of people start up in business. Then the government started putting restrictions and targets on the Agencies or we wouldn't get their funding (exactly what they said wouldn't happen ). Then they set up Business Link to administer the distribution of their funds - and they creamed a large percentage off the top for doing it .

Anyway, I don't know whether you have had retail experience with setting up the businesses that you have helped, but one of the tough parts with setting up a retail business is being able to show you have done your homework and market research.

As the financing is usually tied to whether the financial institution think your project is right for the site it will be in, they normally like to see what you have done to examine the potential competition and whether there is call for the service you wish to provide.

They also like to see if you have got figures for the current footfall in the immediate vicinity and the equivalent figures for previous years. Your local authority Business Developement dept should be able to supply those. Of course, high footfall usually means higher rent.

They also like to see what plans you have for publicity and marketing - even if it's just you planning to get your family (and friends) to get out on the streets and leaflet your opening special offers. Nowadays, of course, it helps if you have a website (address on leaflets) showing a continual change in your special offers.

Business rates:- I've been retired for a while now so don't know if they've changed things but, for retail premises, it used to be based on shop frontage. A shop that had a narrow frontage but was long would have a lower business rate than something of exactly the same area but had a wider frontage. The base rateable value was applied to the front 20ft, then a reduced rate for the next 20ft etc. Don't know if they still do that.

Good luck.

 

Well the interview finally came around yesterday and it seemed to go well but hey, you never can tell can you?!
The business plan continues today. I had found a great place but theres an established deli in the area already so scrapped that and the other place I had identified is now off the market. Bother.