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  • #1000549
    kmiller
    Member
    • Total posts: 2

    Hi all – can’t see an exact thread addressing this, so would appreciate any insights.

    I’m looking to begin a small retail business in my local neighbourhood. I’ve done my research and think it has sound potential.

    However, this would be my first time flying solo! And I’m struggling to work out what order to approach things in…

    I need to talk to the bank about loan options for start-up (I have good security for this)
    I need to inspect and negotiate with the agent at the site I’ve identified
    I need to do all the finance / admin – register company name, detailed plan with projected margins, risk, etc

    I can see the logic in doing each of these things first. Perhaps I should be doing them all at once?

    Any advice would be great.

    #1224743
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,175

    Hi and welcome to Flying Solo.

    Thanks for joining and posting.

    As a retailer, it is hard to do small, low cost experiments first unless you go online or the local markets to see if there is actual interest in the products you want to sell.

    Signing a retail lease is a big commitment that could possibly last years and years so there is a fair amount of risk already built in.

    At the very least, I would prepare a comprehensive budget first with cash flow projections if not a full business plan.

    Good luck in your endeavours!

    Come back often and let us know your progress or the ups and downs you have.

    Cheers
    Paul

    #1224744
    kmiller
    Member
    • Total posts: 2
    Paul – FS Concierge, post: 271847, member: 78928 wrote:
    Hi and welcome to Flying Solo.

    Thanks for joining and posting.

    As a retailer, it is hard to do small, low cost experiments first unless you go online or the local markets to see if there is actual interest in the products you want to sell.

    Signing a retail lease is a big commitment that could possibly last years and years so there is a fair amount of risk already built in.

    At the very least, I would prepare a comprehensive budget first with cash flow projections if not a full business plan.

    Good luck in your endeavours!

    Come back often and let us know your progress or the ups and downs you have.

    Cheers
    Paul

    Thanks Paul! It definitely wouldn’t be an experiment beyond the general unpredictability of life, I guess I’m just working out the best order to correlate the various bits of data in order to lock a detailed plan in.

    My idea is very location-centric, being a strip shopping local opposite to a busy train station, next to a busy cafe, with mid-price gifts and homewares.

    I’m aware of not biting off more than I can chew! I’ll keep you guys updated.

    #1224745
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,175

    Starting with a budget and cashflow projections would be a good start.

    Talking to an Accountant would also be good and of course your Bank because commercial loans are very different to mortgages.

    Talking also to commercial real estate agents is also important because again, commercial leases are way different to residential leases. Most will want to lock you in for many years and who pays, for example if the air conditioner breaks down? Do you have a commercial lawyer to look over any lease you are interested in?

    Next up would be an insurance broker.

    You can talk all these steps without rushing in and they will not cost you money or at least much money.

    Cheers
    Paul

    #1224746
    JacquiPryor
    Member
    • Total posts: 2,344

    In terms of the order of things –

    Purely my personal approach, not advice on this – I’d be inclined to have my business plan/marketing plan done first – as this will apply to the current location but likely to any other if the first doesn’t check the boxes, then perhaps inspect with agent, and see what might be possible in terms of rent negotiation. If the inspection fails your hopes and/or you can’t negotiate this may impact what you do next. If that all checks out, then perhaps discuss with the bank – who may very well want to see business/marketing plans and projections anyway, and, then, ‘admin set up’ things.

    A slightly side note – you mentioned the ‘admin’ side of registering a company name. Keep in mind a company name doesn’t protect the name nor ensure it’s safe and available to use. If you have a name in mind, before registering the company with that name (which obviously costs money), check it’s not likely to infringe registered trade marks, and, that it’s available as a domain name and across social media platforms. It can be disappointing to register the company name only to realise you can’t set up social media/website by the same name, and certainly not great if you are forced to rebrand due to another person owning a trade mark. You can conduct your own basic TM searches at https://search.ipaustralia.gov.au/trademarks/search/quick (look not just at identical names, but anything that looks or sounds similar to the one you want to use for your shop – where confusion could occur), and, https://namechk.com/ can help find names available across social media/domains etc.

    Good luck :)
    In any case, all the best :)

    #1224747
    bb1
    Participant
    • Total posts: 4,485

    1. Business plan,
    2. Business Plan,
    3 Business plan

    #1224748
    Rhonwyn
    Member
    • Total posts: 5

    Hi kmiller,
    I agree with all Jacqui said.
    So at the practical level…
    Do basic business plan as bank will need this and cashflow and budget projections for business loan application.
    Check business trading name on asic.gov.au business name search, plus the IP Australia trademark check, plus domain search on godaddy or crazydomains are easy. (Socials too but this is more flexible).
    Once you’re sure on name, get legal AND accounting advice on structure of owning entity, it’s more complicated than u might think, especially if you have other assets to protect and you’re considering a loan.
    Once entity is set up, and names registered, open you business trading account. The potential loan and bank acnt don’t have to be at same bank but may be more favourable for loan. Would not go to same bank as who has my house mortgage though.
    Negotiate with commercial agent. I would highly suggest asking about a ‘casual’ lease option for first 6 months. This will not force you to do full shop fitout or hefty other fees or long term lock in if covid hits or the community doesn’t rally behind it. It gives you breathing space to ensure all your ducks are aligned and you’re doing your store in the most appealing and profitable way. Giftwares are an especially tricky business and you should be prepared with something to set you apart from the Kmarts of this world.
    Then your entity will apply for loan with you as guarantor etc.

    Don’t underestimate detailed planning. Good instincts will only get you so far. Sounds lime you’ve found your passion and purpose and I’m sending good vibes your way :)
    Good luck.
    Rhonwyn

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