Thursday, October 23, 2008

[new venture] overcoming the negative climate


Despite the last two posts, I'd say it's necessary to keep a bright outlook however much it's stacked against us.

To this end, I've just explored, in a neighbouring town with the council officers, the idea of setting up a venture selling from a booth. The product is not a major consideration [to me although it was vital to him] as long as it's something people would walk across the carpark from the supermarket to avail themselves of.

An example might be a dry cleaning pick up point or power tool hire - let's leave the product for the moment and concentrate on the process. To do that it would cost £30 a day, each and every trading day and you'd nominate maybe four trading days in the week. Electricity usage is another cost before stock.

The plusses include that it does not involve huge overheads to set up, it can start gradually and new stock can be bought from takings and diversifying will also follow that. Advertising would be in the weekly local rag.

Hard work but it could be done if there was a positive climate.

There's not. For a start, the council has started charging for 8-6 carparking and this has apparently halved the shopper numbers. Now people are tearing in, getting everything from the supermarket [which has diversified its product range accordingly] and getting out before their 50p is up.

This has killed browsing in the shopping centre and while rentals go up, takings have gone down and businesses are going to the wall. The notion that the council relax its iron grip just a little does not seem to sway it one bit. It's of no consequence to them who goes to the wall or that half the stalls are empty.

It used to be impossible to get stall space apparently and the place was packed. Not now.

So, unless you have a product which would cause people to come to you and then pop over to the supermarket for the other things, it's not worth the effort. You'd need to be taking minimum £350 a week in sales to be able to expand even slightly.

This now brings us to the business climate at a recessionary time. At such a time, logic dictates that regulations are freed up, greed is reduced and small business is allowed to breathe. It's the only way to trade out of the recession. The most immediate people to do this are the councillors.

Will they do it?

The question of why not is tied up into what I believe [and others also] that there is a thrust to remove uninvested wealth from the individual [including the sole trader], in favour of larger corporations offering a diversified range of products, including what you were hoping to sell.

The only possible way to overcome this huge barrier, this climate inimicable to enterprise, seems to me to be to offer a product which has low unit cost, is wanted by the targeted shoppers, mainly pensioners and would sell in sufficient numbers. The old problem, isn't it?

Could this succeed?

6 comments:

  1. I think this is a great idea. One should think of kiddies, for parents often take them to shops during the day and if kids are set on having something, the parents will pay to avoid tantrums.

    An item say like hellium balloons for £2- each-fancy ones. Then appeal to mum's when they come over by having maybe homemade scented soaps, candles - little luxuries they can't get at grocery store.If you kept your items to around £5- mark and invited locals to contribute their wares , for you to sell, at a commission I think you could do nicely indeed.

    And for £5 a woman will impulse treat herself .You would only have to sell 70 items a week.Around 20 a day ecluding the balloon bait- something flashy kids will see and want!

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  2. Dollar stores thrive on cheap good and volume sales, that people can't resist.I think you should wear a top hat too, to stand out.

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  3. Sounds as if Ubermouth might have the right idea. All the very best of luck if it goes ahead.

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  4. Whatever you sell, James, get it on "sale or return", if you can.

    Make sure your agreement with the council gives you an exit without strings, try to negotiate incremental days at cheaper rates.

    Councils are rarely flexible, throughout the country parking fees are decimating town centres in favour of shopping areas which give free parking. Councilors don't give a ratz.
    Local authorities will be the last to trim spending plans/council taxes, in the face of recessions, - locally I see no pause in their mad-cap recruitment drive, and capital spending seems to be accelerating.

    Because of redundancies, etc, council taxes will be levied on an increasingly smaller population base.

    If it were me I wouldn't bother.
    A job FOR a local council, car park attendant, traffic warden, etc.
    Many councils are screaming out for bus drivers, and pay you to qualify.....
    Depends on your aspirations.....
    What about a taxi driver?

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  5. Good advice and thanks. Think I might try one of these. Has to be better than the reception so far.

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  6. I think I have said it before but will say it again. There are LOTS of avenues that you could try!

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