# New cafe opening



## Simone (Aug 19, 2020)

Hello everyone!

Hope everyone is doing well. I am thinking of opening a coffee shop in Guildford and rent, of course, is not cheap. I found few very nice places which costs from £35k till £47k. p.a. I have been working in coffee shops for more than 5 years and I know what to expect from it. The main things I don't have any clue about where to start. For example business loan (if I do not have deposit is it even impossible to get) about renting, how much would it cost for me and so on. I think I have a huge potential to open and to do something what people never had before in Guildford. I love coffee, I love to work in this kind of environment I just need if someone could explain me about money and how everything is working.


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## Blue_Cafe (Jun 22, 2020)

May I politely suggest you read some current news?

A coffee shop? In this current environment?


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## Rob1 (Apr 9, 2015)

I'm assuming this is envisioned for some time next year?


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## higbert (Jun 10, 2020)

I think you do not need coffee advice so much as general business advice in the first instance. I'd advise you to talk to the business manager at your bank, the Inland Revenue for tax, or get some advice from people like the FSB.


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## 24774 (Mar 8, 2020)

Simone, I would go to a bank and discuss financial options that could be available to you. Find out from a professional what is feasible and go from there. Once (if) you have secured funding there may be small business owners that can guide you when starting up. A thorough business plan grounded in researched costs and projected income should be your first port of call. Then take this to your bank to enquire about funding.

I am a random on the internet and I don't know if this is the norm, but I own two business properties and rent is paid quarterly in advance. You will need fees for solicitors. You will need start up costs.

Without wishing to tread on someone's aspirations, we are in a severe recession (around 20%) last quarter and Brexit at end of year will bring a further ~10% drop in GDP from January. Starting a small business in the next few years, particularly high street consumer, will be extremely difficult, we are in for some very, very tough times so I would research what is happening to the economy now and what projections are for the future before you commit funds (if they are given to you). For what it's worth, I have a background in investment banking, small high street operations are not what I would recommend at the moment.


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## Simone (Aug 19, 2020)

Well, I didn't mention when I would like to open my own cafe, did I? 
It may be next year, or year after..

I'm just asking for advice what is the best support for example government, bank, ect.


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## Simone (Aug 19, 2020)

CocoLoco said:


> Simone, I would go to a bank and discuss financial options that could be available to you. Find out from a professional what is feasible and go from there. Once (if) you have secured funding there may be small business owners that can guide you when starting up. A thorough business plan grounded in researched costs and projected income should be your first port of call. Then take this to your bank to enquire about funding.
> 
> I am a random on the internet so I don't know if this is the norm, but I own two business properties and rent is paid quarterly in advance. You will need fees for solicitors. You will need start up costs.
> 
> Without wishing to tread on someone's aspirations, we are in a severe recession (around 20%) last quarter and Brexit at end of year will bring a further ~10% drop in GDP from January. Starting a small business in the next few years, particularly high street consumer, will be extremely difficult, we are in for some very, very tough times so I would research what is happening to the economy now and what projections are for the future before you commit funds (if they are given to you). For what it's worth, I have a background in investment banking, small high street operations are not what I would recommend at the moment.


 What a good answer! Thank you!


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## 4085 (Nov 23, 2012)

You mention up to £47k pa....if that is rent and rates then that's approximately £900 pw before any overheads are added....all I can say is the pressure is going to be on you from the start to cover overheads and turn a profit......good luck! If you have none of your own money to put in, then you might find it difficult persuading others to take all the risk


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## Mark70 (Jan 12, 2020)

Simone. Look up Start Up Loans from the Government. These are provided with support such as mentoring to new start businesses. Loans can be obtained up to £25k per individual in the business. If you need to know more about these let me know as I work in the sector


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## Rob1 (Apr 9, 2015)

If I were you I'd be looking at alternative properties, converted shipping containers in markets, coffee carts, potentially even buy/rent a strip of land and sticking a converted shipping container on there that you own. It will at least be something you could sell on rather than sink 40k+ a year into rental. Even a market stall might be be a good idea to start with, giving you some idea if there's appetite for what you plan to offer without committing to an expensive lease.


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## Northern_Monkey (Sep 11, 2018)

@Simone - I would suggest you also look into locations of where you want to start up, projected foot fall and the specific market you are aiming at i.e. working professionals, weekend custom or a combination. Get an idea on how many coffees you would need to sell plus food in order to break even and cover the staff cost for at least another person as you won't be able to do it all by yourself in the busy times.

You would need to be doing something different or combining it with another offering to stand out in what I am assuming is a pretty mature market place in Guildford.

If it's mainly working professionals, then see what happens in the next year or two. I think a lot of businesses will have more WFH for cost savings even after we get out of the Pandemic.


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