First business. So excited ! Retail Fitout costs, advice ? - Small ...

Member ? Join Date: May 2012 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts

Hi ! Just a Lil' warning, this is quite a post. I'm a new member here, and i was looking around for information, but could hardly find anything useful. So i stumbled on this forum and boy do i love the community ! Full of like-minded people all helping each other out. It's great ! I think I'll stick around ;p Anyways, I'm 19, a young entrepreneur (or yet ?) Studying Small business management cert IV at TAFE. And did about a year of Business and commerce at university, which i dropped out of. lol I have found an excellent business opportunity, one where there is a extra large gap in the market which is also a relatively new and young market. Not just in my local area, but a very wide area, in fact the next "similar" store is the only one in the Sydney City CBD, and they only stock a certain type of the product group. I am out at the south western suburbs. Ive done my market research and pried into every store in Australia carrying similar products. Melbourne has 3 to 4 stores right in the CBD and a few others in the suburbs, all very popular. Brisbane also has a few very crowded stores and the market for my product is growing very rapidly. Sydney is still getting there, so this is my opportunity ! And they just opened a new store in Brisbane last month ! I did trial selling on eBay, and it was pretty good success despite the online competition from international sellers. There is a local markets/stalls area the next suburb down, i held a trial stall there for 2 weekends, and it was VERY popular. My planned location is very ideal, with everything i need to ease myself into the market. It is well anchored by big things. Ive sniffed around and done a lot of examining. This is the perfect place, with my target market readily available in this area and the surrounds. I'm not telling you where it is, but the location is being developed quite nicely by the local council for the past few years and still more to come. And in a few years time, i can see this place growing up even more. xD So there is my babbling on, and you can see how keen and excited i am. I am working two jobs and trying to save up all the money i can, while i study TAFE online and pray that my opportunity stays open for a little longer ! The main reason of this post however, seeing that i am ready to open business around October/November: 1. Retail Fit outs ! Does anybody have an idea of the costs for a basic retail fitout, for say, a 50-60sqm shop ? Ive looked everywhere, and im not ready for a real quote yet. Assume that the floors need to be carpeted, and walls painted, basic shelving and a window front as well. Give or take a couple thousand, what would be the price bracket ? I'm on a budget, so I'd like to know if there's anything i can look at, along with the price ranges. 2. Advice ! Does anyone have any advice regarding me rushing into business ? Have i missed out on something disastrously important in my babble ? What are your ideas on a business partner. I've met someone great lately and they are also very interested, but I'm not sure is it's the right thing to do... Although it does sound very tempting, seeing they are very willing to invest money as well. 3. I have received advice from a friend to spread rumors about my store to get people hyped up. Is this a good idea ? I'm really worried someone might do the same thing, after all i am only 19 and still working my bum off. You never know who has cash ready and can jump on someone else' plans. 4. Leasing ! I'm shaky on this one. Do i really need a solicitor ? The company that works the leases for these properties is pretty big, and manages a quite a few of the commercial plots in my area. Is it possible to negotiate a lease a bit cheaper ? Does a discounted lease sound possible ? I'm still reading up about lease contracts and exits and all these things, so confusing. 5. Is there anything else you think i should know ? I am pretty young, and this is my first business as well. I am scared for sure, but i love these products myself and i have big plans. Thank you in advance ! I look forward to reading your responses (: Last edited by omocha; 1 Day Ago at 05:39 PM. Reason: Optional

Senior Member ? Join Date: Dec 2009 Posts: 96 Thanks: 0 Thanked 7 Times in 4 Posts

Quote: 1. Retail Fit outs ! Does anybody have an idea of the costs for a basic retail fitout, for say, a 50-60sqm shop ? Ive looked everywhere, and im not ready for a real quote yet. Assume that the floors need to be carpeted, and walls painted, basic shelving and a window front as well. Give or take a couple thousand, what would be the price bracket ? I'm on a budget, so I'd like to know if there's anything i can look at, along with the price ranges. How long is a piece of string? 50-60sqm by a professional shopfitting firm including pland and drawings $40,000-100,000. DIY, you should figure $20k+ minimum by the time you have put in comms, EPOS etc. Quote: 2. Advice ! Does anyone have any advice regarding me rushing into business ? Have i missed out on something disastrously important in my babble ? What are your ideas on a business partner. I've met someone great lately and they are also very interested, but I'm not sure is it's the right thing to do... Although it does sound very tempting, seeing they are very willing to invest money as well. Generally better off with someone with some experience particularly if they have cash. 50% of something successful is better than 100% of a failure. Quote: 3. I have received advice from a friend to spread rumors about my store to get people hyped up. Is this a good idea ? I'm really worried someone might do the same thing, after all i am only 19 and still working my bum off. You never know who has cash ready and can jump on someone else' plans. I don't think people will get that 'hyped' unless you are giving away free money? And if they do get 'hyped up' and you are months away then the hype is wasted... wait until you are close to opening. Quote: 4. Leasing ! I'm shaky on this one. Do i really need a solicitor ? The company that works the leases for these properties is pretty big, and manages a quite a few of the commercial plots in my area. Is it possible to negotiate a lease a bit cheaper ? Does a discounted lease sound possible ? I'm still reading up about lease contracts and exits and all these things, so confusing. Yes and no. Everything will depend on how popular the area is and vacancy rates etc. I have just leased 75sqm in Melbourne CBD and the best I could negotiate was an extra month rent free and a reduced yearly rent increase. Zero negotiating from the landlord, but with a building of 60 tenants and only two vacancies then why would he? As a general rule you should get 3 months rent free (or 6 months half rent) for a three year lease and 6 months on a 5 year lease. If you are in an area that is struggling for tenants then you could do a lot better. Landlords will give preferential deals to tenants they would rather have (large multi-nationals etc.). For retail then passing trade is everything. EVERYTHING. If your business won't work because of the rent then it likely won't work. Do you need a solicitor? No not really but sounds like you should get one. To get a lease agreement looked at will be less than a grand. If you are a busy shopping mall then it is likely there is no flexibility in the lease so in my mind a solicitor is a waste of money if you know how to read..nontheless it would probably be wise to find a good all-round solicitor who can advise you on other issues as well as the lease. Good luck. DM

Power Member ? Join Date: Jan 2011 Location: Perth WA Posts: 1,061 Thanks: 172 Thanked 126 Times in 116 Posts

My only suggestion, and since you are studying I'm assuming you already have it under control, is your costings and cash flow analysis. How much your stock will cost (delivered) including all customs/import costs, your expected outgoings including rent, electricity, insurance, wages (the list is endless) and how many units you will need to sell per week to firstly, cover costs, and secondly to make a profit. Wendy __________________ Couple It - Innovative undies release clip A daily living aid giving Independence with Dignity to the injured, disabled, elderly and heavily pregnant

Advanced Member ? Join Date: Apr 2011 Location: Parramatta Posts: 113 Thanks: 11 Thanked 22 Times in 20 Posts

It will depend on where you want to set up business, what the layout of the shop will look like, and how you want it fitted out. I've seen all sorts of figures however at the end of the day you'll probably have to do the homework yourself, call around a few places, and get quotes. Some landlords as an incentive offer some assistance with retail fit outs. It's hard to speculate on what you can or can't do - you haven't really told us what you're doing other than it being something in retail. As for business partners, should you proceed you should put together a partnership agreement or a shareholder's agreement (depending on what kind of company structure you have). This is critically important to determine what your responsibilities are, what your partner's responsibilities are, and more importantly, what happens if you have a disagreement and need to go your separate ways. Quote: 3. I have received advice from a friend to spread rumors about my store to get people hyped up. Is this a good idea ? I'm sure that you can market your store some way without telling others the critical aspect of the store. Again, you're vague on details. It's hard to speculate what you can or can't do. Quote: 4. Leasing ! I'm shaky on this one. Do i really need a solicitor ? Yes. If you're confused, you do. Quote: 5. Is there anything else you think i should know ? Trade Marks, Business Names, Australian Consumer Law, Retail Leases Act. If you're playing music in the store you need to get licenses to play the music. Development Approval for your fit out (if required). Employment or contractors (Fair Work Act). You'll also need to consider all costs associated with the lease - parking licenses, your share of outgoings, electricity, council rates, land tax, and some large retail places also levy a "marketing" fee. Last edited by Kennethti; 13 Hours Ago at 10:19 AM.

Power Member ? Join Date: Jun 2009 Location: Jayne is based in Sydney's northern beaches. Posts: 4,169 Thanks: 295 Thanked 203 Times in 193 Posts

Hi Dion, Welcome to the forum, and thanks for your advice to omocha. So that we all know who we're chatting with, please start by posting in the introductions thread and also let us know a little about yourself by filling in your profile in 'Control panel', including details of which state or suburb of Australia you're based in. Having a completed forum profile is very important to other community members and shows them that you do indeed reside in Australia and that you're here to participate openly and genuinely. As a newbie to the community, we'd also be grateful if you could take a few minutes to read through the forum guidelines. Thanks for joining us, we're looking forward to getting to know you. Jayne

Member ? Join Date: Apr 2012 Posts: 27 Thanks: 0 Thanked 1 Time in 1 Post

I have to agree with the above posts - why not sell online and once you have made a name for yourself then look for a bricks and mortar store front. Your start up costs would be tiny compared to a lease and you would have so many more potential customers than those just walking by. Utilising the markets in your area would also get your product out there. A number of my customer are on-line stores who work from home and in their own hours but looking at their stores on the web you wouldn't know. I've been in a shop front situation - years and years ago in retail and there is nothing worst than having a quiet day and knowing that you have to pay the rent at the end of the month. Maybe I misunderstood your post but you said that some of the stores in Australia only sell some of the product group - are we talking about a brand name here - and if so that is something totally different - they will determine how much you spend on outfitting the store. Whatever way you go well done on your initiative and drive and hope you have a wonderful success. Keep us posted on it all.

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