Starting a new business?

[Changamagic]

Guys,

Had a pipe dream of starting up a new business (retail clothing) with a couple of collegaues. At the moment it is nothing more than having identified a niche in the market and throwing aroundsome potential ideas.

Can anyone give me some advice on what we would need to do to take this 'dream' any further in terms of developing a business plan etc???

Cheers.

 

[frantelle]

need a solid business plan
can i just point out a recession is quickly going to hit us and clothes are one of the first things people will stop spending on
if your still interested...
research research research (you cant do too much hw when looking at starting your own business)
check all your finances and match that up against how far that will go
do you have enough money for a few lean early years?

just a quick stat....9/10 small business's go bankrupt in australia

check out possible rent spots (how much it would be)
then stake it out and see how many people walk past etc

go into a few successful business (in the industry you want to enter) and again stake it out and see why it works...and see what doesnt work...then are these things applicable for your business

also doesnt matter what industry your in...your in a people business...whether that be with suppliers or customers

 

[rhino49]

need a solid business plan
can i just point out a recession is quickly going to hit us and clothes are one of the first things people will stop spending on
if your still interested...
research research research (you cant do too much hw when looking at starting your own business)
check all your finances and match that up against how far that will go
do you have enough money for a few lean early years?

just a quick stat....9/10 small business's go bankrupt in australia

check out possible rent spots (how much it would be)
then stake it out and see how many people walk past etc

go into a few successful business (in the industry you want to enter) and again stake it out and see why it works...and see what doesnt work...then are these things applicable for your business

also doesnt matter what industry your in...your in a people business...whether that be with suppliers or customers

so 90% of small business's go bust in australia??? i find that very hard to believe its that high?????

 

[Hawk Dork]

The stats are something like
80% in the first year
Then 80% of the 20% left die in the next 5 years

 

[Changamagic]

Ok then... thats a worry!

 

[frantelle]

Ok then... thats a worry!

it doesnt apply to every business
like franchises arent included
its your 'mum and pop' type stores around the corner sort of thing

 

[wallyt99]

I wouldn't suggest the fashion industry. You are up against large companies which have generated 'scale'. They but massive volumes, and have a high turnover, yet still only generate a max of 10% on investment.

You will buy small volumes (higher cost) and have a slow turnover (which will mean stock will go out of fashion)



If you want to start a business, find something which there is a strong need for and limited supply. Often these are the things that no-one wants to do....like ceiling exhaust fans.

The more glamour, the more competition.

 

[Chief]

There are a million ways to do business. What is the niche? Don't worry about posting it here as:

a) Anyone in the industry will know it already and

b) This board hardly gets any traffic

If you've never worked in fashion retail I'd go and get a job in the industry first.

Get paid to learn the ropes.

When you spot a good niche go for it. Live it. Breathe it. 24 hours a day, 7 days a week.

After 5 or 10 years you can relax a little. Take Sundays off.

Better yet try doing it online at first. Get a feel for what works and what doesn't.

Market your site imaginatively. Make a name in your niche. Then go retail if you want to take on the extra hassle.

Cloning existing shops is a sure way to barely scratch a living as your cloned competition doesn't have to do much to match or beat you.

If all else fails: Phat pants will never go out of style...

 

[ben_cats_fan]

There are a million ways to do business. What is the niche? Don't worry about posting it here as:

a) Anyone in the industry will know it already and

b) This board hardly gets any traffic

If you've never worked in fashion retail I'd go and get a job in the industry first.

Get paid to learn the ropes.

When you spot a good niche go for it. Live it. Breathe it. 24 hours a day, 7 days a week.

After 5 or 10 years you can relax a little. Take Sundays off.

Better yet try doing it online at first. Get a feel for what works and what doesn't.

Market your site imaginatively. Make a name in your niche. Then go retail if you want to take on the extra hassle.

Cloning existing shops is a sure way to barely scratch a living as your cloned competition doesn't have to do much to match or beat you.

If all else fails: Phat pants will never go out of style...

The other thing is, get a solid accountant/business advisor to be involved in the setup process. In my line of work, we see a lot of poor business structures in areas that could really have taken off had they received the right advice from the very beginnings. There are so many things that even people in business didn't know existed. Best get someone involved who knows about such things!

 

[Scotland]

Small business failure statistics are often misrepresented.

90% go bankrupt? I don't think so.

There is s distinct difference between closing the doors of a small business because it isn't meeting its desired targets and filing for bankruptcy.

If you run a small business that is generating bugger all in profits you are probably better off shutting it down and getting a job somewhere else. If you run a small business that is making considerable losses and has a number of outstanding debts, then that is a different kettle of fish.