How to Open a Shop

There’s no doubt that it’s been a tough couple of years on the high street. We’ve seen a lot of big names disappear as the triple whammy of internet shopping, Brexit and COVID-19 has hit businesses right across the country.

However, in most towns there is still a demand for independent shops that offer something different to what’s online, who can offer a more personal service, and who can create a unique shopping experience for their customers. So, if you’re planning to open your own shop, as long as you have a good idea, are willing to work hard and have plenty of patience, there are opportunities out there.  

But there’s a lot of work that needs to be done before you can open your doors on your first day of trading. Let’s take a look at some of the most important steps that are required:

Assuming you already have an idea of what it is that you want to sell, the first and most important thing to do is find out if there is a demand for it. After all, there’s no point trying to sell something no one wants to buy. You also need to think about the sort of people likely to be interested and work out the best way of promoting your business to them.

You’ll also want to research potential competitors – are there businesses offering similar products or services in the vicinity, and if so, how are they doing? If they’re flourishing, there may be room for a similar business. Otherwise, you’ll need to make sure that what you’re offering is able to take their customers off them.

You also need to find the right location for your business. If you’re going to be relying on at least some passing trade, does the area have the sort of shops likely to already be attracting your kind of customer? If you’re going to be selling something bulky, is there parking conveniently nearby that will enable buyers to easily take their purchases away with them?

There are a lot of expenses involved in opening a shop. You’re going to need stock and you’ll need to decorate and fit out your store so that it’s a pleasant place for potential customers to both browse and buy your products. You’re also going to have to do some marketing to both create a recognisable brand and let people know that you’re in business.

But it’s not just about upfront costs. Very few shops start making a profit from day one – it will almost certainly take time to establish regulars, get the word out and grow the business. That means you’ll need to have enough capital to see you through the first few weeks or even months of trading.

So, it’s important that you work out as best you can what you’re going to need to get through to the point that you actually start to make money. If you’re going to try and get a loan, you’ll have to draw up a comprehensive and, most importantly, realistic business plan so that any potential lender can make an informed decision about whether you’re a safe risk. 

A business plan comprises:

• Your business analysis – what you’ll be selling, the state of the market you’ll be entering, the competition
• Your marketing strategy – how you plan to attract customers and grow the business
• Costs you’ll have to meet such as rent, energy, staffing and insurance
• Finances – sales and cashflow forecasts, how much you’ll need to make to break even
• Even if you’re going to be fully self-financed, a business plan is still a good idea so that you’re fully aware of all likely future costs and to make sure you’ve got all the bases covered.

For those new to writing business plans, we recommend either getting an expert to help, or there are some good online tools you can use to help you that will guide you through every step.

Once you’re happy that your new business is viable and that the finances are in place to see you through to the point where you can hopefully start making a profit, there’s a lot of legal work you need to do to set up your business. Exactly what you’ll need to do will depend on the nature of the business, but most new enterprises will need to:

• Register with Companies House
• Register for VAT and other taxes
• Register any branding or intellectual property
• Ensure any software packages being used are licensed
• Insure stock, premises and members of the public entering the shop
• Risk assess the premises for health and safety

Once you’re happy that your new business is viable and that the finances are in place to see you through to the point where you can hopefully start making a profit, there’s a lot of legal work you need to do to set up your business. Exactly what you’ll need to do will depend on the nature of the business, but most new enterprises will need to:

• Register with Companies House
• Register for VAT and other taxes
• Register any branding or intellectual property
• Ensure any software packages being used are licensed
• Insure stock, premises and members of the public entering the shop
• Risk assess the premises for health and safety

You can’t run a shop on your own. You’ll have plenty to do with ordering stock, managing records and other important tasks and everyone needs a break every now and then – even if it’s just to have some lunch or go to the loo! So you’ll need someone to help out. 

Naturally, you need to make sure that you’re employing someone trustworthy and suitable for greeting customers, so that means interviewing potential employees and checking references. And of course, once you’re into taking on staff, you’re also into PAYE, National Insurance, holiday pay and other employer requirements.

This is by no means a comprehensive guide on how to open a shop, but should give you a good idea of the processes you’ll need to follow if it’s something you want to do. 

Here at Morplan, we’ve worked with retail businesses of all sizes for many years supplying the kind of fixtures and fittings essential to any new store. So whether you’re setting up a new shop or you’re looking to breathe new life into an existing business, we can help - give us a call today or visit our website for ideas and inspiration.