New business advice please!!

Q

quinerty

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I'm am about to be made redundant next month. I have decided to bite the bullet and do something I've talked about doing for the longest time - open my own bridal shop. I have no retail experience as i currently work in financial services. I have spent some time researching this business idea however and feel there is a gap in the market in my area which I could fill.
As I have no previous retail experience however I need some advice on the practical issues.
1) Rent negotiation. I have no experience negotiating rents with landlords. I would hope to get a good deal ie pay x months up front and get x months rent free. Should I have someone do this on my behalf if so who should I speak to about this?
2) What is the best way to source suppliers? I want to carry ranges that are not carried locally but just wondering how I should go about sourcing reliable yet reasonably priced suppliers.
3) How much capital will I need? I believe I can buy stock for €150-€700 per item and I would need 30-40 dresses to start off so I'm budgeting about €15k for stock ie dresses, wedding accessories, underware, shoes etc. I am also thinking of carrying a previously worn range which I would only have to pay for once sold so they shouldn't cost me at all. Outside of this what would I need?

I know people may look at this and say; this ones bit off more than she can chew, but I'm prepared to put in the hard graft and determined to make this work for me..
Any advice I could get from those of you in retail or any other business would be very much appreciated.
Thanks in advance
 
There is an Enterprise allowance available from the DSW whereby it may be possible to get social welfare whilst you start this business. The allowance is similar to the Back to Work Scheme Allowance. People to speak to/things to do:
Accountant
DSW (department of social protection?)
Estate Agents - checking rental rates - avoid long leases
Solicitor
Suppliers - most stuff now imported from Developing World via USA
An other Bridal Shop owner - not competing with you.
Website developer - beware of costs here
Business Plan Development
Get serious and get ruthless - start as you intend to go on. No time for dreamers!
 
Negotiate on the rent as much as possible, look at other properties in the area and find cheaper examples - even if the property sizes and desirability are less, that doesn't matter, you bring up the cheaper options as a psychological ploy and bargaining chip.

Don't be shy to say a low price - always hit low in your first offer, then when they decline, offer something in between what they asked and what you offered first then see how they react. However try not to make too many counter offers, you need to gauge what mindset the property owner is in and try to get a deal within 2-3 offers.

Also ask for a 'grace period' (i.e. free rent or reduced rental) for the first 3-6 months so that you can set up shop and move in properly. When setting the lease terms, don't get yourself stuck in anything for too long - if you agree something for 3, 5, 10 years.. make sure you include a 1 year break clause in the contract - a chance for you to cancel and pull out after 1 year in case things are not going so well with the business.

Check with the council that the property is suitable for retail use in the industry you intend to trade in and what the business rates are - if you are in the town centre, expect to pay a lot more.

For suppliers - you need to make sure you are buying at the right price in order to be able to sell at the right price. I don't know anything about wedding dresses, but if you have good design examples you can copy them and have them manufactured yourself for cheaper if you go abroad.
 
Also if you want to build an online presence feel free to contact me, as I have web project management experience I'd be happy to help you out in whatever capacity I can and give you some ongoing advice.
 
Thank you so much for the advice folks - was expecting to be shot down with reality checks left right and centre!! So good to get some positive feedback - definitely food for thought....
Have 5 weeks before redundancy kicks in but will take my time to get up and running - better to do things right if doing it at all.
Research, research, research.....
 
Hi there
I have a client who opened a Bridal Shop in Derry in the last couple of years.

It is a tough business, but I think she enjoys it.

She goes to Harrogate in the UK in March and September every year. This is where she buys all her stock.

You need to check which designers supply shops in your area as they will not supply two in the one area.

This was where she had problems, as there was 7 other bridal shops in Derry at the time, she had difficulty sourcing suppliers.

She also spent alot on opening stock - the difficulty here is that if the shop rails only look half full, brides will think they dont have enough choice.

Hope this helps a little bit!

Tomorrow
 
Dont be afraid to approach bridal shops in other areas. I was in the trade and never minded being approached, telephone is best, if you arrive in a shop and start looking around they might not be so appraochable. The approach is I heard you have a very good reputation and............
The wedding trade is very specialised but if you have good flair with style and alterations and suggestions you could do very well. There is a lot of alterations. The bride might present as a size 16 and say I will get the weight down order a size 12. This is difficult but my friend will order a size 14 and have an early fitting. They are always ambitious about loosing weight. If they insist on a small size you might like to keep order book and get them to sign. This you can seldom stick to if it does not work out but it will encourage brides to get to that size.
You will not need to carry stock of each size. My friend still has a bridal shop and she stocks one of each style and maybe, depending on the style, whether it suits the small person or the larger person, the most suitable size for the style. Be careful to access who the particular style might suit. The custom is to order each one separately, they take about 4 months for delivery, depending who you buy from.
Could you get a few weeks working in a bridal shop for the experience for free, in another area is best of course.
There are good bridesmaids dresses to be bought online. You will need a price range, if you stock only top end that might not work, middle range is necessary also. Quality is good. Harrogate is wonderful to source distributors, it is usually held around March, I think. Do familiarise yourself with current styles from wedding fairs and wedding magazines.
You must stock all the accessories, most brides want everything complete and your recommendation of what goes best with what and what suits them best.
It can be enjoyable but you are not going in at the best of times. I hope I have been helpful.
Good Luck. Browtal
 
Soembody asked this question in the past, so you might be able to do a search and find that most or even contact the OP to see how they got on.

I suggested talk to people in the industry already as I previously had clients in the industry and understood it to be very though.

I was shot down on the basis that the OP at the time thought that othe shops would not be helpful so I am pleased to see browtal's comments and suggest you listen to that point.

It is a difficult time to be starting a business but it is by no means an impossible time.

I would strongly sugguest getting familiar with the industry, drafting a business plan and adjust it as you get to understand more about the industry.

As for the rent, I would be more concerned about taking out a least for x years and having to give a personal guarantee!

Also, without trying to sound too down but do understand that whatever money you put into the business you mase lose so dont put all of your eggs into this idea.

best of luck.
 
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