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garinda 27-03-2009 19:52
Re: Thinking of opening a business
 
Quote:
Originally Posted by Lolly (Post 697475)
Not a bad spot if its anything other than food i'm afraid. You already have a butty shop at the end of that row, then Tesco will be opening soon. You then have another butty shop on the next block. Then the Co-op. Then four more butty shops before you get to the Rose & Crown. Then theres the chippys, newsagents & pizza/kebab shops.

I wish you all the luck in the world in whatever you decide to do, but I don't think it lies in food on Union Road.

The one thing involving food on Union Road that is missing is a decent fresh fruit & veg shop. At the moment you have to go all the way into Accrington to go to the market. So that might be an idea. :)
Someone tried a fruit & veg shop near Rogreave Road, and worked really hard offering good quality fare and a friendly service, but couldn't make a decent living at it.:(

steveh 28-03-2009 19:25
Re: Thinking of opening a business
 
if u workon 5% u will be bust in a month

derekgas 28-03-2009 21:34
Re: Thinking of opening a business
 
Quote:
Originally Posted by entwisi (Post 694749)
why does a butty shop need a web prescence? or in fat most websites. unless your clients come from > 5 miles away i'd say a website is rarely a benefit to your business...

whilst I'm all e commerce, I'm also sensible enough to see the benefit/cost ratio is not good on some businesses
I wasnt meaning a butty shop in particular needed a web presence, I was just stating costs that some wouldnt think about, my business does receive a lot of calls through one website, and the other website we have will do the same when I have finished with it, to qualify the need for a website in my business, it is a fact, that we have no yellow pages ads in this year, work will come from word of mouth, and the website, with possibly a few leaflets delivered for good measure.

Ossywarrior 03-04-2009 01:22
Re: Thinking of opening a business
 
Quote:
Originally Posted by garinda (Post 697524)
Someone tried a fruit & veg shop near Rogreave Road, and worked really hard offering good quality fare and a friendly service, but couldn't make a decent living at it.:(

mother in law used to own the fruit and veg shop that is now the reena's restaurant and she made an ok living, nothing major and had to work long hours though.

ive always thought a good computer game shop that offers game trade ins would do well at the top end of ossy, nothing flash mind keep overheads as low as you can.

think start up costs could be a problem though

bobs11 05-05-2009 20:44
Re: Thinking of opening a business
 
Where on earth can you make 100 - 200% on food??? That is impossible. If you are talking about selling something at retail at twice the cost price then that is 50% ie cost price £1 and sell for £2 is 50% gp. You can never make 100% profit unless you have no costs involved in producing what you sell!!!

Royboy39 05-05-2009 21:27
Re: Thinking of opening a business
 
Quote:
Originally Posted by bobs11 (Post 711056)
Where on earth can you make 100 - 200% on food??? That is impossible. If you are talking about selling something at retail at twice the cost price then that is 50% ie cost price £1 and sell for £2 is 50% gp. You can never make 100% profit unless you have no costs involved in producing what you sell!!!
What is that in answer to?
£1 against £2 is 100% on cost and 50% on retail.
That is the fist sum you must do before calculating expenses.
How miuch can I make and what will it cost me?
That is cost of sales.
Not an easy task and advice is needed.
100% is not possible whatever the situation.

ian1 06-05-2009 21:15
Re: Thinking of opening a business
 
Quote:
Originally Posted by Ossywarrior (Post 699788)
mother in law used to own the fruit and veg shop that is now the reena's restaurant and she made an ok living, nothing major and had to work long hours though.

ive always thought a good computer game shop that offers game trade ins would do well at the top end of ossy, nothing flash mind keep overheads as low as you can.

think start up costs could be a problem though
The computer game shop has be tried at the end of howarth street lasted about 3 months !!
ian

Studio25 07-05-2009 08:40
Re: Thinking of opening a business
 
Quote:
Originally Posted by bobs11 (Post 711056)
Where on earth can you make 100 - 200% on food??? That is impossible. If you are talking about selling something at retail at twice the cost price then that is 50% ie cost price £1 and sell for £2 is 50% gp. You can never make 100% profit unless you have no costs involved in producing what you sell!!!
I don't think it's that big a deal, you're just each calculating profit based on a different starting figure. Derek calculates profit based on his cost price. You calculate it based on the sale price.

Of the first three hits when googling for "profit calculator" two of them calculate it the way you've done it (profit as a percentage of selling price), and one calculates it the way Derek (and I) calculate it (profit as a percentage of material/labour costs).

Funnily enough, the calculator on the fourth link doesn't work, which doesn't bode well for the accountancy firm on whose site it appears.

Gayle 07-05-2009 09:14
Re: Thinking of opening a business
 
I've always fancied a fishmonger would do well on Union Rd. All those good catholics in Ossy wanting fresh fish on friday. :D

But what you also want to consider is using a shop as a front but finding something that is specialist on the internet for mail order. A good example is the second hand book shop - they actually do the majority of their business online but if you need a storage place for books you might as well have them in a shop so you get some passing trade as well.

That way you're not reliant on business in Ossy, or even within 5miles for that matter.

jaysay 07-05-2009 09:36
Re: Thinking of opening a business
 
Quote:
Originally Posted by Gayle (Post 711430)
I've always fancied a fishmonger would do well on Union Rd. All those good catholics in Ossy wanting fresh fish on friday. :D

But what you also want to consider is using a shop as a front but finding something that is specialist on the internet for mail order. A good example is the second hand book shop - they actually do the majority of their business online but if you need a storage place for books you might as well have them in a shop so you get some passing trade as well.

That way you're not reliant on business in Ossy, or even within 5miles for that matter.
I've got over the Fish on Friday for catholics thing Gayle, I just look at my steak pudding and chips, close my eyes make the sign of the cross and utter those immortal words "Your Cod and Chips, Your Cod and Chips" works for me:D :rolleyes:

bobs11 10-05-2009 19:51
Re: Thinking of opening a business
 
Thats in answer to a previous thread on this post stating you make 100-200% on food. If you do a business plan then of course its relevant. You have to calculate your GP and Net Profit.. So of course you have to deduct the cost of buying/making the product from your retail price hence the true GP figure. go to a bank and tell them you expect to make 200% GP and you will be shown the door, There is no such thing as 100% GP (or anythin in excess of) - its impossible

derekgas 11-05-2009 19:17
Re: Thinking of opening a business
 
So, if you buy a box of ten (anything) for £100, then sell them for £110 each, you havnt made more than 100% profit over your original costs?

Studio25 11-05-2009 22:20
Re: Thinking of opening a business
 
It depends on the base of your calculation. With your example, it depends whether you use the £10 cost price or the £110 sale price as your starting point. The way you and I work it out, it's a 1,000% profit, because the sale price of eleven times the cost price means a profit margin ten times the cost price.

With Bobs base of the selling price for profit calculation, the base price is 9% of the cost price meaning the profit is 91%

There is no "right" or "wrong" answer, but it does illustrate the need to understand how any given statistic is calculated.

garinda 11-05-2009 23:41
Re: Thinking of opening a business
 
Quote:
Originally Posted by Studio25 (Post 713015)
It depends on the base of your calculation. With your example, it depends whether you use the £10 cost price or the £110 sale price as your starting point. The way you and I work it out, it's a 1,000% profit, because the sale price of eleven times the cost price means a profit margin ten times the cost price.

With Bobs base of the selling price for profit calculation, the base price is 9% of the cost price meaning the profit is 91%

There is no "right" or "wrong" answer, but it does illustrate the need to understand how any given statistic is calculated.
You're slashing his prices before he's even got going.:eek::D

In his example he said his original cost price was £100, not £10.

derekgas 12-05-2009 08:43
Re: Thinking of opening a business
 
I understand that Gareth, my point was, there are more ways to work out the figures, and I am not so blinkered as to think that the way I work them is the only way, but the bank manager would not throw you out based on those figures! Calculating the figures as I stated originally would result in good, base cost profits, it is well known that, with food, these are the margins many would, and do, use! I didnt intend for it to be a lesson in accounting, just a pointer that was understandable to anyone without the knowledge.


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