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4 Tips for Becoming a Shop Owner

Posted on by Nova Blogger

Even though retailers have had a hard time over the past few years there are signs that the economy is on the mend, which means that shop owners are expecting a brighter future. This is why it may be a good time to start thinking about getting into the retail business, however for many this may seem a bit daunting as they don’t know where to start. This is why Nova Insurance is here to help with our four top tips for becoming a shop owner:

Think about what you want to offer

The first thing you need to decide when getting into retail is what type of services and products you want to offer your customers. Most people will already have an idea of this before they begin the buying process, however just because you have an idea it doesn’t necessarily mean it’s going to be a successful one. For instance, if you are planning on selling clothing you need to look at other shops in the area and see if you can realistically compete.

Getting to know your local area and its high street is a great way to help you decide what type of business you want to start, as not only will it give you an idea of the amount of demand in the area but also the type of shops that are already popular. For example, if you want to open a shop in a quiet rural area you should think about the types of products that would appeal to those that live there; instead of a high tech music store maybe focus on selling vintage radios and records instead.

Research the market

Even though the economy is improving it will still take a long time for shops in Britain to see the success they did pre-recession, which is why it is important you understand that investing in a shop is still risky. In order to reduce the amount of risk you should research the market to understand what issues you may face in the future. Don’t forget that the rate of success for businesses vary from area to area, so make sure you get information not just from the national papers but also your local council.

Another thing to keep in mind when thinking about opening your first shop is that there are a number of outgoings you will have to pay for even if business isn’t doing well. Rent, shop insurance, and even the products themselves all cost a considerable amount of money, so it is advisable that you have some sort of contingency fund in place in case you go through a rough patch.

Future proof your business

Many people claim that the demise of the high street has been partially caused by online shopping, especially as it has become increasingly popular over the years. However, there are still enough people who like the option of physically seeing a product before buying it, so as long as you give your customers the choice you can protect yourself for the future.

It is essential that when planning on buying your first shop you think about how you are going to market it online. It is very rare these days for any company not to have a website at the very least, however if you go further you could improve your business. Offering your customers the ability to order products online is just one way of doing this, however you can also utilise social media platforms in order to get to know your customers, build an online community and further advertise your store and products.

Be Passionate!

If you are still on the fence when it comes to deciding whether to open your own shop then you need to think about what you truly want. Putting time and effort into your business is the only way that it will have a chance of succeeding, and so you need to make sure that this is something you really want to do.

Owning your own shop can be great fun, especially if you have a real passion for the products you sell and want others to enjoy them as much as you do. As long as you make sure you plan ahead and give it your all you should enjoy your new career path!

Things To Consider When Searching For The Right Business Premises

Posted on by Nova Blogger

For any business, finding the right premises can be challenging. Business premises are one of the biggest expenses for a business, so it is important to find the right one at the right price, in the right location. It can often take longer than you think and you might need to look at many places before finding the right one, but it is usually worth it.

Here are a few tips to help with the process:

 

Decide On What You Need

Do you want to buy or lease? Both have their pro’s and con’s, it depends on your situation. If you are just starting up, it may be wise to lease somewhere until your business has proved its-self, before making the commitment to buying a property. However if you are an already established business looking to grow, then buying a premises could be a long term investment.

Which ever you decide on you will still need to workout what you need, based on a combination on both your businesses current and future plans. A few things to consider are: what size of premises, what layout, and the length of time you require the property if you are renting. Your location of choice will depend on your business type, and you may need to be near your customers if your business requires it.

Set a Budget

The most important thing here, is to make sure you can afford which ever premises you are interested in. Look at your business financials to get an idea of how much you can afford to spend, and do some research about the various costs you are likely to incur. For example there are costs to get the premises such as deposits, equipment, furnishing, renovations, moving, and any professional fees. Then there are also costs to run the premises on a monthly basis such as rents, heating, insurance, business rates etc. Once you have a realistic idea of your budget and the costs, then you can start the process of looking for your ideal premises.

Get Professional Help

Now it’s time to get professional help for your search. You need to make sure you seek professional advice before agreeing any terms, signing any paper work or paying any deposits so you don’t make any mistakes. Your accountant would be able to double check your budget to see if it is affordable.

Commercial property leases can be complicated and so there is a good chance you will require a commercial property lawyer. Also you will need a commercial property agent to find a list of vacant premises for you to look at.

Start Searching

At this stage it is important to try an see as many properties as you can. It may help to make up a schedule so you know in advance when you have to view properties. Setting up a checklist can be a great way to compare the properties you see, so you can make a better decision about which is best.

The list could contain all the elements that are important for your business. You can then score each property you see based on your criteria. At the end of your search, the ones with the highest scores can be put on a shortlist for further consideration.

Purchase The Premises or Sign The Lease

Once you have found your ideal premises, one that fits all your requirements and meets your budget, then it’s time to sign agreements and hand over deposits. Your professional advisers will help to guide you through each step of the completion process. After all that is done then it’s time to renovate, move into your new premises and carry on with business as usual.

 

What Are The Allowable Business Expenses For The Self Employed?

Posted on by Nova Blogger

Every year the majority of self employed people in the UK are required to file a self assessment tax return. For those that do it online, the submission deadline is January the 31st each year and the 31st of October for those that file paper returns. Here is a look at the subject of business expenses and how they are included in annual returns.

What are allowable business expenses?

They are defined as costs that are incurred “wholly and exclusively” for the purposes of the business.

Who is entitled to claim them?

Any one who is registered as self employed with HMRC. Theses expenses can be written off against any income you earn in the tax year, thereby reducing the final amount of tax you pay.

What can you claim for?

Not all expenses are allowed, you can’t claim for personal expenses, and there are some business expenses that you can’t claim for. It is very important to separate business expenses from personal ones, and if there is something you use for both, you can only claim for the business use.

For example if you work from home you can claim for costs such as heating, electricity, council tax, mortgage interest, rent, internet & phone. However you have to calculate them, based on how much time you spend working at home and how much space you use when you are working. Then you have to figure out what proportion of your total house costs they account for.

Here are some of the business costs that you can claim as tax deductible expenses:

  • The cost of goods that you are going to sell or use in providing a service.

  • If you are in the construction industry, you can claim payments to subcontractors.

  • Staff costs such as wages, salaries and any other staff costs.

  • Travel cost including car, public transport, taxi’s and other travel expenses.

  • Premises costs such as rent, rates, power and insurance.

  • Office costs such as phone, fax, stationery and other office costs.

  • Advertising and business entertainment costs such as websites, social media.

  • Finance costs such as interest on bank and other business loans, bank and credit card charges.

  • Professional fees such as accounting, legal and other professional fees.

Here are some of the costs you cannot claim as tax deductible expenses:

  • The cost of goods or materials bought for private use.

  • Your own wages, drawings, pension payments, national insurance contributions.

  • The costs of buying, improving or altering premises.

  • Cost for entertaining clients, suppliers and customers.

  • Repayment of the loans or overdrafts, or other finance arrangements.

  • The costs of buying premises for your business.

  • Any payments to clubs, charities, political parties and so on.

How and when can you claim them?

When you complete your annual self assessment tax return, you are required inform the HMRC of your deductible expenses for the accounting period in question. This is when you make your claim.

If you are self employed, you have to keep records of your business income and expenses for your tax return, so throughout the tax year you should keep all your receipts. It can also be very helpful to record them as they occur in some form of bookkeeping / accounting software, or on a simple spreadsheet. This will save a lot of time and make your final calculations easier when it comes time to file your annual taxes.

If however you don’t want to work out your actual costs, you can use the simplified expenses table provided by the HMRC for that tax year. It has flat rates for expenses like like vehicles, working from home, or living on your business premises. Also you can check out the HMRC’s site for other tools and calculators to help with you self assessment submission.

 

 

How To Hire Your First Member Of Staff

Posted on by Nova Blogger

 

Hiring your first employee should be exciting, because it means your idea is succeeding. The additional staff will allow your business to cope with increase in workload as it grows. However it is important that you only take on employees once your business has the cash-flow to support the additional expense or it might cause financial problems for the business. The hiring process must be done carefully in order to make sure you are comply with the legal responsibilities that come with taking on staff.

Once you have decided that you are ready to take on staff, then there are a series of questions that need to be answered before you can begin the process. You need to identify ahead what type of person you are looking for both in-terms of skills, experience and personality, so you hire someone that fits your businesses culture and values.

Decide how much can you afford to pay them, they must be paid at least the national minimum wage. Next you have to decide whether you are going to hire a full time, part time or contract staff. Each has their pluses and minuses, but the decision will ultimately depend on your business plan.

Recruitment Agency, or Do-It-Yourself:

To find the your first employee, you have the choice between using a recruitment agency, which you will have to pay for, or doing it yourself. As it is your first employee it can be a good idea to use an agency because they have experience with all the legal and financial aspects of finding and employing staff.

If however you can’t afford an agency and you have to do it yourself there are a few things you can do. First you need to create an attractive job advert, then you can use a combination of social media, the job centre and free job boards to get the word out.

Background Checks & Contracts:

Next comes the process of going through all the applications in order to find candidates to call for interviews. Make sure they can legally work in the UK, and be sure to get references. Also conduct any other background checks that may be necessary such as DBS (The Disclosure and Barring Service).

After selecting the right person for the job, there are a few other things that need to be done before they can start. You need to give your employee a written statement of employment and an employment contract detailing things such as their responsibilities, salary and holiday entitlements.

You can hire a lawyer to draw up the employment contract and the statement of employment.

Protecting Your Business & Staff:

It’s then time to sign up for employers liability insurance to protect your staff from injury or illness, and to protect your business from any employee claims. Register with HMRC as an employer and enrol your new member of staff into a workplace pension scheme. As an employer you must also comply with all the necessary health and safety regulations so that the working environment is safe.

Payroll:

Once the hiring process is done and your new team member has begun, then it is a good idea to hire a bookkeeper or accountant to handle your payroll duties. They will ensure that all the paper work is completed in the proper way and on time.

Training & Skill development:

Now your new member of staff is can start work. It is important to keep staff happy as they are your most important asset, make sure the working atmosphere is happy and stress free. Invest in continued training and skill development, and be sure to include regular performance assessments as well as reviews of salary and employment terms.

Strive to have the best employee/employer relationship you can, with trust and plenty of open dialogue. Treat your staff with respect, make them feel a valued part of a team and they will reward you with loyalty and productivity.

 

 

Planning Your Grocery Store Layout

Posted on by Nova Blogger

 

It is important to understand the needs of your potential customers when planning a grocery store.

By doing so you can make good plans that will result in better customer experience and increased sales.

  • Difference Between a Grocery Store and Convenience Store

While the two are similar in the the products they offer there are still some key differences between the two. For example grocery stores offer perishable items like meat and fresh produce, but convenience stores don’t. They tend to stock just the basics food items that are commonly used such as soft drinks, and prepared foods. Also a convenience store may sell petrol, offer money transfers, and other administrative services. As far as size goes, grocery stores tend to be larger and owned by national brands. Convenience stores on the other hand tend to be smaller and independently owned.

Choosing your floor plan

The floor plan is the foundation of a stores layout, it provides the base structure for organising everything else.

  • Types of floor plans

There are several types of floor plans available to any retail store. The straight floor plan use fixtures and displays placed at right angles and the angle plan use a lot of curves in both the fixtures and the displays. The diagonal floor plan places the fittings and fixtures diagonally, and the geometric floor plan places them in a geometric in shape. The mixed floor plan is a combination of diagonal and angular layouts.

  • Deciding on Your Size and Placement of Aisles

Having spacious aisles is one of the key aspects of store planning. The minimum recommended size is 4 foot wide without distractions so your customers can move comfortably around the store without bumping into each other, including those with wheel chairs and push chairs.

The placement of the aisle is important as this will dictate the flow of your customer traffic within the store. The aisles need to be placed in such a way that they expose your customers to most of the products. So you need to work out where you want your customers to go and what you want them to see.

Once you know this, it is then a case of choosing the type of isle layout that matches your objectives, bearing in mind the available space and the floor plan. There are 3 common layouts to choose from, these are the grid layout, the loop layout, and the free-flow layout.

The grid layout runs parallel and perpendicular to walls. The loop layout consists of one main isle that loops around the store. The free-flow layout is open plan.

Display and Sales

  • Mapping out your product, displays, and registers

A good way to start is by walking through the store so as to see it from a customers perspective. It will then be easier to figure out where to put what. Place new products in the best locations and everyday favourites near the back. You can keep some small items near the cash register. Fixtures and displays should emphasize the product and should be adequately spaced apart with cash registers placed away from the front of the store.

Your Store Lighting

  • Types of lighting

There a 4 types of lighting that can be used in a grocery store. There is general lighting for whole store, ask lighting for the work areas, accent lighting for specific areas of the store, and finally decorative lighting to beautify your store. All types must be used, however the most important are the task lighting and accent lighting, because they highlight your product and illuminate your work areas.

  • Setting Up Your Grocery Store Lighting

There are a few key point to take into consideration when setting up your store lighting: Make sure to factor in replacement and energy costs. Then use mirrors to reflect light and dimmer switches to control the atmosphere while reducing energy bills. Most of all the lights must not be in the customers way as it may get too hot.

Conclusion

In summary, planning a grocery store requires a lot of attention to detail. However the results are worth it for you and your customers. Also while the store layout is important, so is the way the shelves are stocked, as this has just as much of an impact on the shoppers buying habits.

 

Affordable ways to Decorate your shop at Christmas

Posted on by Nova Blogger

When it comes to Christmas shop owners have a lot to compete with, as most shop windows are covered in flashing lights, sparkles and fake snow. Not only do shop owners have to pay for these decorations but they also have to spend their own time putting them up and making sure their shops look perfect. December is an expensive month for everyone and we have already given top layout tips for your shop but here are some ways to prevent forking out too much money on your Christmas decorations… Continue reading “Affordable ways to Decorate your shop at Christmas”

4 Ways to Manage Returns in your Store

Posted on by Nova Blogger

As a shop owner the last thing you want is your customers returning items to your store, however these days it is very rare for a shop not to have some sort of returns policy. Unfortunately, debates concerning returns can sometimes become extremely heated between customers and shop owners, which is why you need to know how to handle them correctly. Luckily, Nova Insurance is here to help with our four top tips! Continue reading “4 Ways to Manage Returns in your Store”

Top Layout Tips for Your Shop

Posted on by Nova Blogger

Retail shops are cleverer than you think and every item is placed in a certain place for a reason. Researchers have spent a lot of time studying how the mind works, meaning more often than not you will walk out of a shop with more than you needed as your brain corrupts your shopping choices. In previous blogs we have spoken about making your shop more authentic, so now we are going to give you some top tips for the layout of your shop to help boost sales. Continue reading “Top Layout Tips for Your Shop”

Making the Most out of your Shop’s Dressing Rooms

Posted on by Nova Blogger

When buying a car you will likely make a decision on whether you are going to part with your money or not during the test drive. This is why so many car dealers make sure that they pull out all the stops during a test drive – and the same should be done by shop owners when their customers are ‘test driving’ their clothes in dressing rooms. While in a dressing room your customers will decide whether they are going to buy your products or not, so it is essential that you make the most out of them… Continue reading “Making the Most out of your Shop’s Dressing Rooms”

3 Tips for Selling Products Online

Posted on by Nova Blogger

Anyone who works in the retail industry will tell you that there has been a notable shift in the past few years from people shopping in stores to shopping online. This has meant that shop owners have had to adapt their business strategies in order to keep up with the times and secure sales from shoppers that are now more likely to go online. Therefore, if you have not yet created an online presence for your shop you may be missing out on business – but where do you start? Here, Nova Insurance provides three top tips: Continue reading “3 Tips for Selling Products Online”

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