New business idea. Advice please?

Discussion in 'Starting a Business' started by New start, Feb 10, 2018.

  1. New start

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    Dh wants to open a small cafe/healthy food shop (sit aprox 8 ppl). He is weighing up the pro's & cons etc. He wants to set it up in a empty shop unit in a rural area. There are no shops in the area( last 2 closed down) as ppl prefer to shop in Lidl etc now.
    There is a hairdressers & beauty salon in one of the housing estates (where we live) and also a busy crèche. The national school is across the road also.

    He thinks it would be great to have ready made meals, vacuum packed fhealthy burgers, coffee's sandwiches and to sell lots of healthy and delicious foods. He thinks the parents droppinv kids to & from the crèche would love this and is all eager to get it going. He's recently qualified as a chef and is an Outstanding cook I have no doubt whatsoever.

    Thing is I'm scared. I'm also worried because it's not in a town we won't get enough trade.

    Can anyone offer any advice please?
     
  2. Joseph.Shivell

    Joseph.Shivell
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    Let's go through the pros & cons for him. First, the cons:
    1) the last two shops closed down
    2) there are no shops in the area
    3) People prefer to shop somewhere else
    4) the only existing businesses are a hairdresser/beauty salon
    ad a daycare center

    Now the pros:
    1) He is allegedly an outstanding cook

    It looks to me like there aren't too many reasons why this business would succeed, and 2 businesses have already failed. He thinks parents dropping off kids would love his idea, but has he really researched this to find out if they actually would? Until he does due diligence, I wouldn't start any kind of business.
     
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  3. New start

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    Thanks for your reply. How would you suggest finding out if the parents would love this idea? A survey?
    I suggested this to him, but I also think people might write down what they think you want to hear and not be completely honest.
    My husband says if the food is nice people will come.
     
  4. fisicx

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    No they won't. Unless it's cheaper than Lidl and the local takeaways and the local population actually want to eat healthy food it will fail.

    Stand outside the unit and count the number of people who walk by at different times of the day. Look at the way the walk, how they dress and how they behave. They are your prospective customers.
     
  5. New start

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    I appreciate your reply. Cost of food is definitely a big factor.
    Why do you suggest watching the way they dress & behave? Excuse me for being naive. This is all a learning curve.
     
  6. fisicx

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    Shuffling along in scruffy clothes with a fag hanging out their mouth would suggest they aren't they type of person who would frequent a health food shop.

    Or maybe most of the passers by are children on their way to school or commuters heading for the train station.

    You might find after 9am the road is dead until everyone is one their way back home.
     
  7. New start

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    Very true. You are very right. Appreciate your help. Given me lots to put forward to my husband.
     
  8. fisicx

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    If you want to open a heath food shop/café it needs to be where your target customers are.

    You need to be where there are plenty of shops and businesses whose staff would come to you to pick up lunch. You need to be where shoppers will pass by and pop in for a coffee and panini.
     
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  9. New start

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    Very true.thanks for that. Really appreciate your reply.
     
  10. Ali Imam

    Ali Imam
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    I would suggest you look from a different perspective. If 2 business had failed in the past, Doesn't imply it as a bad thing. If you are sure that people would like to eat your food, then you should go ahead with your idea, everything else can be worked out. If you think people won't come to your place, then hire a delivery person, which could deliver in your neighborhood. If you worried about some other problem, well figure out a solution to that problem, or ask for help from the experts. Afterall you are an entrepreneur, be proud, be confident, and go against the wind. Hope you get all the success that you desire, and all the best.
     
  11. Simon_G

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    I suggest you ignore Ali above. His comments have no business relevance whatsoever.

    As Fisicx stated, without the market, you have no business, regardless of what your OH feels about the possibilities.

    Research, research, research. Both the target market, the cost of sales (including all expenses), and your break-even point.

    Then when you have that, go back to the potential market and pitch the idea to them to see if they will pay the money you need to be able to break even. Even then there is no guarantee that you will get the seats required to meet your expenses, let alone make you any profit.

    The simple fact is that without the footfall, you have no business.

    Do your research, thoroughly, is the best advice I can give.
     
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  12. Harry2018

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    The best way to save money is by not losing it, the next factor is heart ache and stress, third factor, running a cafe or shop is an 16 hour a day business, one has to prepare food, order foods, keep clean, staffing issues and organization.
    Personally, I would never place any funds in to a business unless I can afford to lose it.
     
    #12 Harry2018, Apr 5, 2018
    Last edited by a moderator: Apr 5, 2018
  13. Jessica A.

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    The way people dress and behave tells a lot about their personality. People who doesn't give a care if they're wearing tight or loose-fitting clothes doesn't care much about eating healthy as well. A small town like that does not jump into the healthy bandwagon unlike those who live in the cities. Ready made meals and vacuum packed burgers does not fit into their lifestyle because they are not busy bodies like city dwellers are. They have a lot of time in their hands and they would prefer making their meals themselves.

    City folks have lots of distractions and influences which greatly impacts their decision making. If they see that the people around them are trying to be fit, then they would too. Healthy food is hard to come by when you're living in a big city and packed meals is essential when you're always on the go but when you bring stuff like this in a small town, you might face the closure of your shop. Go with food that fits your market.
     
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  14. Julia Sta Romana

    Julia Sta Romana
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    Simon's right. Can your market afford the food you'll be serving? Would you be able to break even operating at full capacity (8 pax isn't much)? What about half capacity? What's the state of the businesses that are currently thriving there?

    There's a chance setting up a food business there might be viable IF it's the right fit for the market. And you would also need to make it more accessible. If there's a school nearby, I wonder why the other food businesses fail. Just because your ideal market is close by doesn't automatically mean you have a great location.
     
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  15. Bhorniegie Gaco

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    I totally agree. In short, you can need to put the business in an accessible place and also make your store standout among the others too.
     
  16. CouponZeta

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    I am not pretty sure about the place but yes i would surely suggest you to choose a place the best place for this because food and beverages are the best ones that you can try ever. It is the most profitable business as well as gives you the best on investment as well. Make sure that you go ahead with a proper plan and get the best out of it. All the best
     

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