resources available

[Paulat]

I have gone through a lot of your material and am now wanting to be a little more specific.

I'm wanting to start a homeware/gift shop and the only information I can find is that for a gift/card shop.

Please can you lead me in the right direction.

Thanks
Paula

[Statler]

Hi Paula,

Unfortunately that appears to be the closest factsheet to your business idea, but it should still contain alot of information that you will find of use.

Lee

[Paulat]

Hi Lee,

Is there any information you can give me about suppliers' websites, or magazines I can sourse - as you have for card gift retailers?

Thanks
Paula

[Statler]

Hi Paula,

I'd recommend asking our online community for sources and leads. E-mail me to find out how you can get involved: lee.longstaff@pne.org

Lee

[Afzaal]

Dear Paula,

The gift industry is a very large industry, as many different types of goods constitute a 'gift'. One of the best ways to learn about suppliers to the industry is to visit a trade show, of which there are many.

Two of the largest gift industry trade shows are the Spring Fair www.springfair.com, which takes place in February, and the Autumn Fair www.autumnfair.com, which takes place in September of each year. The venue is the NEC Birmingham for both shows, and they are organised by Trade Promotion Services.

Clarion also organise a number of trade shows for the gift industry:

January - Top Drawer Spring, Earls Court London, www.topdraweronline.com
May - Pulse, Earls Court London, www.pulse-london.com
July - Home + Gift, Harrogate, www.homeandgift.co.uk
September - Top Drawer Autumn, Olympia Grand Hall London, www.topdraweronline.com

Further regional shows are the Torquay Fair in January www.torquayfair.co.uk, and the Brighton Gift Fair in May www.brightongiftfair.co.uk.

These shows present an excellent opportunity to meet with suppliers from around the world, as well as publishers of trade catalogues and other support organisations. The gift industry's trade body is The Giftware Association based in Birmingham. Visit their website www.ga-uk.org to find out more.

Many trade catalogues/directories and magazines are published by the industry, some are monthly and others are less frequent. These are normally available by subscription and give details of suppliers, as well as industry information. Ones to look out for are:

Gift Focus by Kline Davis 01376 535 602
Gifts Today by Lema Publishing 01442 289 930
The UK Gift & Jewellery Directory by Harrion International 020 8515 2112
The Heritage Shop Catalogue by IMS Publications 01525 853 700
The Source Book, and Progressive Gifts & Home Worldwide, both by Max Publishing 020 7700 6740.
There are others too, depending on your particular interest.

You can either pick up copies at trade shows, or contact the publishers for a sample copy and subscription details.

Hope this helps.

Regards,

Afzaal
LiveWIRE mentor

[Paulat]

Dear Afzaal,

Thank you so much for your advice - it is invaluable.

Just one question - are these fairs only open to people who have businesses, in which case I would assume they produce some sort of card, or can I go as someone setting up in business?

Thanks again.
Paula

[Afzaal]

Dear Paula,

The fairs are normally specified as TRADE ONLY, and intended for bona fide members of the industry and not the general public. If you have an interest in opening a gift shop, then there shouldn't be a problem.

When you register, best to do it in advance and online (visit the websites I have given), you will be asked to give your details and to choose from a list of options describing the nature of your interest. There are usually plenty of options to cover most people, so don't worry. On registering, a badge will be sent out to you for entry to the show.

Let me know if you want any specific information on trade shows, as I have plenty of experience as an exhibitor and a visitor.

Good Luck.

Afzaal
LiveWIRE mentor

[Paulat]

You've left yourself wide open to an abundance of questions now!

I know nothing about trade fairs. At the moment I'm sourcing products and suppliers. I've been advised that I should get all of this in place before I secure a site - maybe you can advise if this is correct as well!

What info can you give me on negotiating with suppliers as well as setting up a contract?

thanks again
Paula

[Afzaal]

Dear Paula,

It's best to do all your research on suppliers and products before securing a site and setting up your shop. It is important to choose your product ranges carefully, such that they tie-in with the location of the shop and your target market. Will your customers be locals or passing tourists? What is their demographic make-up and socio-economic grouping? Who will the gifts be purchased for, and how much will your customers be willing to spend? Your market research should point you in the right direction.

With regard to trade shows, you need to have a professional approach. So, for example, try to have some business cards printed, even if they are done through a high street shop in a rather standard format. It's a way of communicating your contact details to potential suppliers who will otherwise be reluctant to hand out catalogues and brochures to those who appear to be rather vague in their intentions and don't leave their contact details behind.

Trade shows can be exhausting, and therefore it is best to do as much preparation as possible before visiting, so have a plan of action - who you wish to see, what types of products are you looking for, in which Halls will those suppliers be located in etc.

If you are buying ready-made goods off-the-shelf, then you don't need to preoccupy yourself with contracts; it's simply a case of placing an order on the supplier's order form, but before doing so, take account of the following:

What are the minimum order quantities in each product type, design, size, range etc? Alternatively, some suppliers have a minimum spend value or both. So, find out.
Note the trade prices, and any VAT that may be payable.
What is the RRP, and what margin will this give you?
Ask about the best selling lines in the product ranges that interest you.
Lead times to delivery?
Delivery costs? These are normally waived above a set order value, known as a 'minimum carriage paid order'.
Any discounts? Normally apply to volume orders.
What about Point-of-Sale material? This may require a minimum spend.
Read the terms and conditions of each supplier, especially with regard to damaged goods.
Are the goods available on a 'sale or return' basis?
Check the quality of the goods and find out where they are made; are they imports? If so, how does the supplier ensure quality?
Do the goods comply with all the applicable regulations?

As a newcomer to the industry, and operating on a small scale I presume, you will normally have to pay pro forma for the goods you order, i.e. paying prior to the dispatch of goods. After a number of repeat orders and prompt payments, the supplier may offer you credit terms of 30 days. Also, you will find it difficult to negotiate terms with the larger suppliers, but you may have better luck with the smaller ones who are keen to grow their businesses and may be quite flexible in some of their terms, for example, on min. order quantities.

Above all, enjoy the show and the experience.

Regards,

Afzaal
LiveWIRE mentor

[Paulat]

Dear Afzaal,

You really have been a tremendous help. Thank you.

I'll be going through to the Brighton Fair on Sunday and I'll let you know on Monday how it all pans out.

One last question (for now!) - do I have to have a business plan regardless of whether I'm looking for a loan or not?

Thanks again.
Paula

[Afzaal]

Dear Paula,

You definitely need a business plan if you wish to set up in business. Not only can it be used to raise finance through loans and grants etc, but it will help YOU to think through all of the issues involved in setting up your business.

For example, the business plan will help you to identify your strengths and weaknesses, the opportunites that your market research has presented, and what the major threats might be. You will also have to think about your target market and how you will attract those customers. What will be your unique selling points, and what sales figure will you need to aim for each week/month to pay for all of your outgoings in the same period? This is where a cashflow is really useful, as it can help you to plan ahead for any seasonal variations in your sales.

As you can see, there are many issues that need to be explored, and questions answered. The business plan will simply enable you to write down all that you know, and plan to do and achieve, in a structured way, so that any gaps can be easily identified.

The business plan can also be used to bring on board other investors, and furthermore, it can be used as an evaluation tool to assess your performance against set objectives on a regular basis. Don't forget that the business plan is a working document, so feel free to update it with the benefit of your experience and feedback.

If you haven't already done so, then register with Shell LiveWIRE for their Essential Business Kit, which will include guidance notes on how to put together your business plan.

Hope your visit to Brighton is a success.

Afzaal
LiveWIRE mentor

[Paulat]

Dear Afzaal,
I'm back with more questions.

I'm now in the process of looking for a premises and a loan! Yes, that awful word "loan"!!!

One of the agents I'm dealing with has said that because I'm a new business and therefore considered "high risk", the landlord is going to ask for a bond. Please can you explain to me what this is.

Also, who can you recommend I go to for start-up business loans.

Thanks again for your help.

Kind regards
Paula
07929 000174

[Statler]

Hi Paula,

If you have registered online with Shell LiveWIRE at http://www.shell-livewire.org/cgi-bin/register.pl (this is different to registering for the Mentor System), you will be able to access all of the information within the Be Your Own Boss section. You should then take a look at the Sources of Business Funding article:

http://www.shell-livewire.org/beyourownboss/main.php?catid=1&subcatid=19

Where abouts are you looking to locate your business?

Lee

[Paulat]

Hi Lee,

I'll be located in Edgware, North London.

Can you explain what you meant by the first part of your email.

Thanks
Paula

[Statler]

The main part of the Shell LiveWIRE website is the Be Your Own Boss section - this contains hundreds of articles on business related issues. It is another password protected area, and the only way you can access the information is by registering via the link I posted. If you have done this, then you will find the section on Finance and Funding of interest.

[Afzaal]

Dear Paula,

I'm glad to learn that you are making progress with your business idea.

My knowledge on business premises is limited, so I would recommend contacting Business Link www.businesslink.gov.uk for advice and information, as well as your local authority. It may be useful to arrange a meeting with a lawyer specialising in commercial law to gain a better understanding of terminology, leases and contracts etc. Many law firms do offer a free initial consultation, so take advantage of this.

Some issues to think about in the meantime. As you are opening a shop, the premises you choose will be an extremely important part of your business and therefore should be chosen carefully. You don't want to tie yourself down to a long inflexible lease, in case things don't work out, or you require smaller/larger premises, or perhaps a change of location. New businesses can grow and develop very rapidly, and it's important that your set up is flexible. On the other hand, if things don't work out, then you want to be able to move on as quickly as possible. This is where your business plan will help, as it should take account of different scenarios under Risk Management.

I know some businesses that have leased premises whereby the landlord has paid for the shop to be fitted out in return for a percentage of the turnover. It’s a kind of trade off, in which the landlord strongly believes in your idea and is willing to set up the premises for you, and you have the further advantage of not paying rents beyond what your business can afford. However, as your business grows you may end up paying a larger sum than you would otherwise, but that's the compromise. This is only an idea, and it may not be right for you or your business. It's worth exploring though, so speak to a lawyer about the legal implications, and your Business Link for further information.

About funding: try contacting The Prince's Trust www.princes-trust.org.uk as they give grants/loans to young people meeting their criteria. They also appoint a mentor to your business if your application is successful. Business Link may also be a good source for further information on this subject, as well as your local authority and the government development agency covering your region.

Best regards,

Afzaal