Starting-up - what do I need to take care of? (off-licence/grocery shop)

[mikex79]

Hi everybody
I am planning to open up an off-licence/grocery shop in London.I am thinking what do i need to take care of at the beginning and in the nearest future.I mean licence, insurance, lease, loan and what other general paper-work needs to be done to start it up? Is there any councill or building control needed or fire safety control (and what else) to make sure that the premisses is ready to use. I am gonna create a limited company and me and my business partner both are going to be the directors. Is there any thorough guidance available in the internet?
many thanks

[fundingportal]

Hi

There is loads of information on the internet; however your challenge is going to be to put theoretical advice into perspective. A useful source of information would be someone who has recently opened a similar business (as long as you are not directly competing they will often be helpful with real-life advice.

A specific note of caution: The vast majority of our new-start retail customers (particularly those in the licenced trade) open significantly behind schedule. This, of course, means that you are setting out with full overheads and no revenue - not a good situation. Most frequently the delays are caused by planning permission and licence applications (other things that have caused hiccups are power supplies and buildng overruns). For this reason, I would strongly adise that you make realistic (bordering on pessimistic) estimates for all applications you will need to make.

Business Funding Portal can assist with non-bank finance and all business insurance matters, I'm sure that other forum members can provide valuable input on other business matters.

Good luck with the venture!

MARK

[AboveParr]

Find your self a good local accountant that has dealt with the type of business before - they'll be able to help you with a lot of the initial stuff and could save you a lot of money in the long run...

[NikkiPilkington]

https://www.alliance-leicestercommer...tor_trends.asp

[Limeminds]

As a retailer you'll be able to get alot of support (equipment, store layout, free stock, display advice, etc) from manufacturers and your wholesaler and all (usually) for free.

In terms of some of the legal aspects the independent retailers confederation is a good place to start.

[Kay]

Good luck with your new business!

I agree with most of what's already been said. However, I would also caution you to think very carefully - and take professional advice if necessary - about whether you want to set up a limited company straight off.

The legal requirements of accounts and reports are quite onerous for a company. Plus it can be rather expensive if you can't do them yourself.

Sure, it's the best way for some people. I'm just saying to make sure it's the best way for you and your business partner before jumping into it. It's quite easy and cheap to set up a limited company but it's not so easy to comply with the law once you've got one.

[FundFinder]

good luck with your new business hope it works out

[John Dickson]

Hello,

I would agree with the other people that have commented about getting an Accountant ASAP. They will be able to guide you and advise you properly on all these matters. I would also go with an Accountant that someone can recommend to you. I'd also advise you to get a quote upfront from an Accountant because some businesses can later receive a shock when their bill arrives. As a guide you can see how much a fair accountancy bill would be for specific accounting services by getting a free quote at accountantsquoteme.co.uk. Just useful for a guide or selecting a new accountant too. I can't emphasise the importance of getting an accountant asap - if you haven't done so already.

Cheers
John.

[JamesCartwright]

Probably the best thing you could do is go to an accountant for advice on all of the paperwork you'll need to complete.

With regards to setting up your limited company you can set it up directly with Companies House. This is fine and will cost you slightly less than using an agent, but you do have the hassle of making sure you deal with the articles and memorandum correctly.

The other option is to use a company formation agent. They will usually charge between £20 - £80 to set up your company and are highly experienced in doing so.

The best advice is to use a formation agent backed by a firm of Chartered Accountants, that way you still have the security of knowing that the job is done correctly without incurring massive fess.

Your final option is to go to your accountant or lawyer. They will happily set up the company on your behalf, but will also charge for their time. As a result, costs are likely to £100 - £350.

If you would like more information you could visit our website (the link is in my signature) or call us and we'd be happy to help.

Hope it all goes well for you!
James.

[Ray Stewart]

You have had a stream of excellent advice already - well done forumites

Although an accountant is very useful in the early days (I would say that I know) they are not the source of all knowledge regarding licences, trading requirements in that industry etc., but they may well already have a client in a similar business they can put you in touch with away from your area who will, as someone suggested, hopefully (if they aare doing well) put you straight.

An introduction from an accountant will often open a traders mouth better than walking in off the street - that has been my experience anyway

[Steve Sherlock]

Hi Mike,

In terms of insurance there are a number of things to consider but, boiling it down to absolute basics, there is one type of essential cover for any business: Employer’s liability Insurance. This type of policy is legally required for any business which employs any staff. It protects your company from any injury employees may sustain as a result of their work. If you are found to employ people without suitable insurance, you can be issued with a fine of £1000 and your business fined an additional £2500 for each day you remain without Employers Liability Insurance.

Because your work invovles interaction with the public. you should consider Public Liability Insurance. In an age of increasing litigation, it is important to protect against any accidental damage that may be done to the public in the course of your work.

The list of possible insurance requirements is potentially as long as your arm. Really, you need to do a thorough risk assessment to decide what cover is essential and what fits your budget. You may wish for example to also consider Business Interruption insurance. This type of policy will cover you for any loss or damage to your stock which might affect your business.

Packages/suites of business insurance products are available for shops and retail outlets which can further be tailored to factor everything dependant on your appetite for risk and available budget. Make sure you shop about for the best deal for your business!

To learn more about business insurance, we actually have a dedicated section on the Coverzones website that might be useful: http://www.coverzones.com/learn-more

Best of luck!

Steve

[marketing difference]

Have you considered marketing? How are you going to get customers in to your new shop? What makes you stand out from other off-licences and supermarkets in the area?

Even shops in excellent locations can struggle to attract business due the natural shyness of potential customers to try something new.

Ian