Premises and the weather
Discussion
At the moment i'm in the process of starting a small company. Mainly dealing with work on commercial panel vans (transits and the like, not mechanics though). I havn't got any orders/customers on board yet but I've mailed out approx 500 letters explaining who we are and what we do. I am reluctant to go see some of the main possible customers at the moment due to small matter of premises and the weather. I'm using a relatives double garage rent free which has no facilitys(i'm using a generator for power) and is up the proverbial back street. Now this can cause problems regarding weather as when it rains i'm partialy screwed for completing any work. Now would anyone advise renting a small unit so I can complete any orders and to prevent leaving customers with a bad taste and not being used again. As against having no orders and paying the rent regardless.
What it does mean is that the buisness will be running at a loss until customers can be found and the weather gives me a break (cold I can do it's just the sodding rain!) and I'm in that scary position whether to dig in and ride it out or wave bye bye to a quite few thousand and go back to becoming a wage slave. Is it just me or are the majority of start ups similar in the first year?
I'd be really glad of any advice and any and all will be massively appreciated.
PS I work nights also to pay any essential household bills etc.
What it does mean is that the buisness will be running at a loss until customers can be found and the weather gives me a break (cold I can do it's just the sodding rain!) and I'm in that scary position whether to dig in and ride it out or wave bye bye to a quite few thousand and go back to becoming a wage slave. Is it just me or are the majority of start ups similar in the first year?
I'd be really glad of any advice and any and all will be massively appreciated.
PS I work nights also to pay any essential household bills etc.
Well, David Whelan of JJB Sports started out with a single market stall in Wigan......
From small acorns, sometimes big oak trees can grow........
IMO you need to locate some secure CHEAP DRY premises, and don't tie yourself up with a long lease to start with, six months max.......
Stick at it......
From small acorns, sometimes big oak trees can grow........
IMO you need to locate some secure CHEAP DRY premises, and don't tie yourself up with a long lease to start with, six months max.......
Stick at it......
) wolf1 said:
Mainly dealing with work on commercial panel vans (transits and the like, not mechanics though).
What are you doing to the vans? Ply lining, sign writing, racking etc? I have several years experience in and around the LCV market, primarily dealing with the larger dealer groups. Depending on the service you're offering you may be able to start to build a customer base by carrying out the work at the dealership. If your service is being sold to 'Joe Public' then IMHO premises are good idea.
Not wanting to 'pee on your chips', so to speak, but 500 marketing letters doesn't strike me as very many. In my experience most direct marketing has a success rate of 1 to 2%. If your letters were aimed at carefully selected targets you may get a retun of 4% to 5% at best. You will need to decide if this will this generate sufficient income for you to cover your overheads in the first few months.
Good Luck with the new venture.
PS: If you tell me what area of the country you're in and what you're offering I may have some useful contacts.
Also worth noting, that if you are leasing something you may be able to get an initial period rent free or discounted.
Many people offer this and if they dont then I would certainly suggest it, especially if you identify somewhere thats been empty for a while.
i.e say to them you will give them a 12 month commitment in exchange for 3 months rent free at the front end, this should give you time to build up the business. If they say no then find someone else more accomodating.
>> Edited by obiwonkeyblokey on Friday 22 October 17:57
Many people offer this and if they dont then I would certainly suggest it, especially if you identify somewhere thats been empty for a while.
i.e say to them you will give them a 12 month commitment in exchange for 3 months rent free at the front end, this should give you time to build up the business. If they say no then find someone else more accomodating.
>> Edited by obiwonkeyblokey on Friday 22 October 17:57
Wacky Racer said:
IMO you need to locate some secure CHEAP DRY premises, and don't tie yourself up with a long lease to start with, six months max.......
The six month lease is, in my experience, a myth. I certainly could'nt get one! Had to go for a six year lease. But i have a six moth get out clause, which is the same as a 7 month lease essentailly, but rolling. So there are alternatives!
When we started the business we did something slightly different.
We bought a "Virtual Office" service. You have people who answer the phone with your Company name, take messages and provide the "front" as far as remote communications are concerned.
Whilst I was in the phone call would be routed to a phone in a house I rented. Three of the bedrooms were offices!
OK so you need larger premises than that - but the spirit of what I'm suggestint holds true.
You *can* find some option that is *very* inexpensive. And this is what you need during start-up as it makes your seed money last longer.
And start-ups can take a *long* time to start delivering income.
Its also worth noting that even after start-up and you've got yourself a salary you can live with that you need to put back your seed money someplace safe again a.s.a.p. In my time in business I have had *long* periods with no income as economic conditions change.
Good luck. Keeping costs low is what lets start-ups survive.
We bought a "Virtual Office" service. You have people who answer the phone with your Company name, take messages and provide the "front" as far as remote communications are concerned.
Whilst I was in the phone call would be routed to a phone in a house I rented. Three of the bedrooms were offices!
OK so you need larger premises than that - but the spirit of what I'm suggestint holds true.
You *can* find some option that is *very* inexpensive. And this is what you need during start-up as it makes your seed money last longer.
And start-ups can take a *long* time to start delivering income.
Its also worth noting that even after start-up and you've got yourself a salary you can live with that you need to put back your seed money someplace safe again a.s.a.p. In my time in business I have had *long* periods with no income as economic conditions change.
Good luck. Keeping costs low is what lets start-ups survive.
If prospects see your 'premises' they will certainly be put off (unless they're simply going for a bargain deal).
As a first step, can you not put some 'facilities' into this space, or make it rain-proof? If so, simply offer a collect and deliver service and they need not see where the work's actually being done.
But as the last chap said, low overheads is the key: be a financial camel (gee, I should write books!).
Good luck with it!
As a first step, can you not put some 'facilities' into this space, or make it rain-proof? If so, simply offer a collect and deliver service and they need not see where the work's actually being done.
But as the last chap said, low overheads is the key: be a financial camel (gee, I should write books!).
Good luck with it!
Ply lining? My Connect cost £150 to have lined, but we paid that to Ford so how much made it to the (subcontract) guys who did the job I don't know.
I'm sure the work was done at the dealership, since the mileage on the van was the same when I collected it, as when I first saw it - unless it was trailered off-site, which seems unlikely.
So all you need is a van with an up-and-over tailgate; shelter under that!
Ian
I'm sure the work was done at the dealership, since the mileage on the van was the same when I collected it, as when I first saw it - unless it was trailered off-site, which seems unlikely.
So all you need is a van with an up-and-over tailgate; shelter under that!
Ian
If you have to lease ask for a six-month 'option to break' at the commencement.
The landlord may be reluctant but if he doesn't have to prepare the unit for you, he has little to lose maybe.
That way, apart from your legal fees,if things go pear shaped, you're only liable for six months rental.
If the lease is for 2 or 3 years, you should know within six months if it's working out for you.
Good luck!
The landlord may be reluctant but if he doesn't have to prepare the unit for you, he has little to lose maybe.
That way, apart from your legal fees,if things go pear shaped, you're only liable for six months rental.
If the lease is for 2 or 3 years, you should know within six months if it's working out for you.
Good luck!
Kwacker said:
Depending on your location have a look around for a farm with a bit of space/workshop. We got a workshop for a really (Really) good rate.
Good luck!
Kwacker
But do watch it. Many farmers charge by the week and it sounds cheap. However many times I have found that farm buildings cost more than purpose built modern units!
So always check the rate in a common format. Usaully £ per annum per sq ft.
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