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  • #987338
    MissLucy
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    Hi All,

    I am in need of some help. I have a Women’s Online Clothing website and I am wanting to take the next step and rent a commercial space. I have started my online business from nothing and I have am ready to take the next step as my home is not a home anymore, its become a warehouse and I don’t want to be spending money I don’t have or need to and getting sucked into something I wish i would of asked about before this.

    What I would really love to know is when I’m calling around Real Estates what questions should I be asking?

    What is outgoings? is this like electric included in outgoings.

    My other question is What do I have to give to the real estate to sign a lease, does it work like renting a house? What will they ask me for? Pay slips etc ….

    I am not wanting to go main stream in a shopping centre or foot traffic main street, I’m wanting a warehouse space with a showroom so I can build a head office first.

    I really look forward to hearing all your feedback.

    Thanks in advance,

    Miss Lucy :)

    #1162209
    elig84
    Member
    • Total posts: 29
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    MissLucy, post: 187473 wrote:
    Hi All,

    I am in need of some help. I have a Women’s Online Clothing website and I am wanting to take the next step and rent a commercial space. I have started my online business from nothing and I have am ready to take the next step as my home is not a home anymore, its become a warehouse and I don’t want to be spending money I don’t have or need to and getting sucked into something I wish i would of asked about before this.

    What I would really love to know is when I’m calling around Real Estates what questions should I be asking?

    What is outgoings? is this like electric included in outgoings.

    My other question is What do I have to give to the real estate to sign a lease, does it work like renting a house? What will they ask me for? Pay slips etc ….

    I am not wanting to go main stream in a shopping centre or foot traffic main street, I’m wanting a warehouse space with a showroom so I can build a head office first.

    I really look forward to hearing all your feedback.

    Thanks in advance,

    Miss Lucy :)

    Hi Miss Lucy

    Where are you based? I run a property consultancy operating in NSW called Navon Retail. We help retailers obtain planning approval for opening new shops.

    You will need to consider whether you need planning approval to open your new shop. In some cases, you don’t require any approval. But be cautious with real estate agents as they don’t always tell you the correct information about planning approval.

    I’m happy to assist you if you’re in NSW. My email is [email protected] and website is http://www.navonretail.com.au

    Eli

    #1162210
    Anonymous
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    • Total posts: 11,464
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    Hi Miss Lucy,

    Good on you for doing your research before you proceed – I hope you find exactly the right place, and quickly!

    Thanks for joining the forum today too, by the way :)

    Jayne

    #1162211
    affgar
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    • Total posts: 123
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    Going into retail or into bricks & mortar shopping is quite a leap.

    Often you are looking at around a 5 year contract or commitment(benefits can be mutual).

    Your costs are going to be heavy. Are you earning enough currently to warrant this move into this direction … or are you moving into this direction because you feel you have reached a limit with your current business model?

    If you are going into a retail shop space here are some key points:

    – make sure you don’t show that you really want the place (act business like).
    – try to assess whether the place you are looking at has been vacant for a long time … if so you will have more bargaining power.
    – if place has been recently tenanted.. try & contact them (they may talk to you about costs, negatives, landlord temperament etc).
    – try to get into a place on a free rent agreement … you may be able to get a few months or more free to setup your shop/retail space.

    As mentioned check with council about building, regulations & zoning.

    Bare in mind you may need to do extensive cosmetic renovations to building … replacing a similarly required fit out has some advantages (often not possible).

    Outgoings are going to be around $1000 min per week give or take depending on your location & if staff are required etc …

    Basic expenses: rent, electricity, water, gas?, telephone, internet, staff (associated costs), accounting/store management software?, administration, insurance (different kinds will be required), travel to & from work.

    I may have missed some things …

    Do yourself a favour & don’t under-estimate costs … it will back you into a corner if anything changes (normally costs increase not decrease).

    Hope there is a little information that may help you.
    Best of luck with it. :)

    #1162212
    PerfectNotes-Kathy
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    • Total posts: 500
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    Hi Miss Lucy,

    I think affgar has covered most of it. The only thing I would add was that when we rented a shop, the rates were also included in outgoings – which was not a trivial cost. We were lucky in that my then partner was handy, so we were able to fit out the shop ourselves for a cost of a few grand in materials (don’t ask about the cost for our time to do the work!) – but a retail clothing store will probably not allow you to do the required work yourself. Remember that you will need to include the cost of shelving/mannequins/window setup as well in your initial setup.

    As has been said, don’t take this as necessarily offputting – just that you need to be aware of what you actually are getting in to. Good luck!

    Kathy

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