Hi everyone,
This may be long winded but I need as much advice AS POSSIBLE.
I am about 2 months away from finishing uni for good. I studied fine arts (photography major) but have done a number of other things since finishing school, including fashion design and styling (my favourite). I LOVE vintage shopping and always have and have been told I have a good eye for those types of things. I feel like I could own a vintage store and where I live in Sydney there is a very popular area that doesnt have a vintage clothing shop, therefore I feel there is a niche/gap for one that stocks womens and mens items. Im 22 years old, and I think I could do it.
The main idea is this: open a vintage boutique, for men and womens clothing and accessories. It would be really nicely setup, have a range of cheaper but GOOD quality items as well as vintage designer stuff (like dior, chanel etc) and would be more like a boutique in that it doesnt have rack upon rack of clothes that people have to thumb through (as this would be exactly the same as someone going to vinnies or salvation army). Im wanting to eliminate the searching for good stuff and have all the good quality stuff there for the customer. Also I would have a few one off pieces of my own label.
So Ive researched the heck out of this and this is what Ive got so far:
- Business plan
- Budget (for the things that I can immediately think of)
- Cash flow projection
- Business name
- Tons of info
- Positive attitude (but trying to make myself aware of risks as well)
The things Im wanting to know about, especially with a start up business, is:
- How can i get financing from a bank/lender in Australia where there is no collatoral needed to back up the loan? My parents wouldnt be able to take out a second mortgage and I would definitely need a loan. Im thinking between AU$30-50k.
- How much is an accountant and a solicitor and how much would I need to use them etc?
- How much to pay myself to begin with
- How much to pay an employee (as I would have to be out sourcing vintage clothes about 3 days a week)
- How do I pay tax, how often, and how much?
- Should I speak to someone who has done a similar job and knows what is involved, like a business planner or something like that?
- How much would a basic shop fit out cost, as Id like a lot of the furnishings to be vintage, not all new metallic racks etc.
How much would I be looking at budgeting to get a nice website? How much extra to put an online store on there?
- CAN I DO IT ALONE?
I do not think Id have trouble maintaining the stock for the store, but I dont have any accounting experience so would not really know how to keep on top of those sorts of things, like filing everything, knowing which expense goes where, paying staff etc.
Also, any insurance, rent, accounting, legal, TAX, advice that anyone can give me would be AMAZING.
I am a very determined person and feel as though I could do this really well but as I have obviously never owned a business before I need to know exactly what I would be getting myself into.
If anyone has any FIRST HAND experience in opening a store and things that are unexpected costs, Id like to hear from you, whether your business is successful or failed, any advice is welcome!
Please only serious answers.
Thanks in advance.
Ill focus on the loan aspect of your long list of questions: without collateral, your chances are very very small
Getting a business loan is NOT easy – especially with the tough economic climate.
You just don’t go to a bank to ask for a loan with only your business idea. Banks look at other factors not just your credit score when applying for a business loan. Banks want to see:
- demonstrated ability of the business to generate revenues businesses that are already operating and have at least 2 years worth of financial statements that demonstrate strong profitability. Business ideas are just ideas; not proven to generate profits
- ability to repay the loan through collaterals and assets
- solid management team: they want to know that the business will be run by someone who knows what they are doing
- excellent credit history
- your investment in the business: they want to see that you believe in your business enough to put down your own money into the business
If you have the above, then prepare a business plan. The business plan is NOT the first thing banks want to see. Its important, but banks will need to see your ability to repay the loan. Sometimes, they wont even bother to read your business plan if they know you dont have any money. If you have to have a business plan, you need a good executive summary (as that is what theyre most likely read, if at all) PLUS solid, realistic financial projections/plans
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