Forum

topBanner
First Previous - Page 1 of 1 - Next Last

Pet Shop

David
  • Fellow PM.Dip
  • Practice Licence
  • 424 posts
  • # 76412

I am looking for a bit of advice.

I have been approached by a friend who wants to start up a small shop selling pet foods, toys, accessories, etc. He wants me to do everything to do with his accounts. Basically he will be a sole trader employing only his partner so I am qualified in that respect.

What I was wondering is this: He needs some start up figures and I am looking for an easy way to do this. I have spreadsheets ready for use and would like to know if there is a simple way to estimate costs with regard to selling. I have loads of info on the prices he can buy stock for and all the outgoings from rent and utilities, to running costs.

There are so many variables: different pets, different foods, different toys & accessories, as well as the bedding, cages, hutches etc.

Does anyone have an idea how I could simplify this information to get some estimated figures so I can give him an idea of a projected cash flow?

Thanks in advance.

David
Geoff
  • 180 posts
  • # 76413

My opinion is that you can't unless you have the relevant experience and expertise in the business.

How much of this (expertise and experience) does your friend have? If he/she has a lot then they should be able to provide you with all of the required information, cost of goods, mark up, estimated turnover, overheads etc.

When you have that then you - as the financial expert - will be able to put together meaningful figures and it will be up to your friend to ensure that their expertise in the business realises those estimates.

If they can't give you that information then, in my opinion, they have chosen the wrong business to start up.

And as a friend perhaps you should ask them why they have chosen that particular line of business (you may have already).

Is it because they love animals and it seems a good place to be - in which case they should perhaps get a job at Pets at Home - or is it because they already have extensive experience in which case I would have thought that, as said earlier, they should already have what is needed for you to provide the figures.


BTW - I always tread carefully with friends (and family) who seek advice, they like what they want to hear but don't like what they need to know. 

Geoff  
David
  • Fellow PM.Dip
  • Practice Licence
  • 424 posts
  • # 76480

Thanks for your input Geoff.

The information I have to hand is reams of wholesale prices with the individual company's RRP. I also have a full list of all the overheads from the small shop including the wage he will pay his partner when this particular shop starts. At the moment it is a secondhand shop, but he wants to change to pet supplies. He is very dedicated, passionate and committed about the new venture.

He has (allegedly) done a lot of research into this, in that he knows the local area. I am told that he would be the only one in the area that could offer this. I have visited the shop and although it looks small from the outside it has a good sized interior. He also has a very large basement so could hold a vast amount of stock.

The problem I wish to simplify is projecting sales figures as this will be a new start up. From the information that I have, there are so many variables that makes it difficult.

Thanks again.

David
First Previous - Page 1 of 1 - Next Last
bottomBanner
loading