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Shop Keeping


PopGun

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It’s hard to make a living in retail since overheads tend to be quite large and competition in many sectors continues to suffer from online operations exapnding with cheaper cost bases. The best brick and mortar busineeses at the moment would be outside fashion since this is exposed to seasonality and having to carry stock of various sizes etc, and food since this is perishable etc.

Good businesses should have high gross profit without much money tied up in current or forward inventory. A small coffee shop selling cakes and biscuits springs to mind, in a decent location (GProfit through the roof), but then again on the downside there is loads of competition from pubs etc tuning into the game, as well as Mc Cafes, Starbucks, Costa Coffee etc giving strong chase for the same customers. Online cafes ditto, around student area's primarily, since again the main income derives from coffee sales, although again on the downside, this is a pretty saturated marketplace.

Bookie shops are also a way to make money especially located beside pubs with strong sales (not necessarily prime location). These are easy, cash cows if managed correctly. Also on the plus side off-centre working class area's with cheaper rents/rates are not as affected from the onslaught of online, since many punters are uneducated unfortunately in the use of internet and opt instead for the traditional route without need for a credit card etc.

edit add~on On the downside for certain locations, there maybe the need to pay protection money to some local hoodlums.

The only thing keeping the High Street bookies going are the FOBTs(fixed odds betting terminals). These have been banned in Ireland. I took these figures off another site and apart from the rent being on the low side give a good indication as to how hard it is beng a bookmaker these days.

"Expenses (are you lying down)?

SIS £17400

TURF TV £6200

RENT? SAY £10000

RATES?SAY £2500

GAMB COMM £1650

MACHINE LICENCE £9000

MACHINE RENT £15200

PREM LICENCE £500

FOOTBALL LICENCE £500

LEVY £2000

STAFF WAGES? £15000

EPOS £1000

INSURANCE £600

ALARM CCTV £400

SLIPS COUPONS ETC £3000

BETTING TAX (ASSUME YOU WIN 100K) £15000

ELECTRIC £2000

INTERNET PHONES £1000

STATIONARY BITS £500

NEWSPAPERS £1350

MAKING £103450 AND ASSUMING YOU WIN 100K YOU ARE £3450 DOWN.

FOBTS; MAKE 2.75% AVERAGE OF TOTAL STAKES SO LETS SAY YOUR MACINES TAKE A MILLION QUID YOU MAKE £27500 LESS THE £3450 LEAVING YOU WITH A PROFIT FOR YOURSELF OF 24 GRAND.

7 days a week and 6 nights, say approx 72 hours a week or 26208 hours a year so you will be on 0.91 pence an hour, for a business that turns over approx 1 and a half million pounds, and makes a GP of £127500."

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How about a fast food outlet?

Traditional fish & chips always seems to undercut Kebabs/Chinese/Indian takeaways and always seem popular round our way. However I guess the regulations would be a nightmare plus lots of evening work.

Or go a step further and operate one of those mobile food caravans seen at various events up & down the country. They seem to be able to charge top prices for food (typically £5 for burger & can of coke) but always have people queing up. No doubt the event organisers take their cut but the overheads must be lower than a high street outlet.

Not that I'd want to try these myself but it would be interesting to see some real figures.

I know a guy doing this. It is his second job and the only way it pays is by him using out of date meat not fit for human consumption.

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Gross profit for coffee shops is about 3.64 times cost price. But as a rule of thumb turnover should be ten times rent. Therefore turnover for this type of rent should be in excess of £250,000 and acheive £55k profit, or £39k with another fulltime staff member.

Or, rent at £17.5k would yield £7k profit which admittedly is not great. Many commercial rents are presently being assessed down (by up to 30% ~ even with upward only leases). The reality for many landlords is a business in place paying rent is better than getting nothing at all.

When you say that, as a rule of thumb, turnover should be ten times rent - what about council business rates?

Shouldn't it be that turnover should be ten times rental of premises and council business rates combined? Council business rates can be truly destructive to a shop.

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Guest X-QUORK

There are still plenty a few people out there who would pay extra for fresh, seasonal and quality goods.

Corrected. I speak from bitter experience, the organic food market is deader than dead.

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I'd love to open my own little store, a little cafe or a deli-type shop.

Looking at the cold, hard figures on this thread however it seems quite grim and let's face it, if a Tesco's or any other large, faceless conglomerate opens up near you, you're proper f*cked.

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