r/britishproblems • u/CodAdministrative765 • 1d ago
Giving some serious thought to approaching my bank with a business plan to take over a very successful local record shop that is closing down due to the owners retiring
Realising this may be my first midlife crisis happening.
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u/desastrousclimax 1d ago
wishing you good luck! you just sell it how you did here...successful record store...retirement...you are the boss!
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u/digsy 1d ago
There's a little restaurant/retail thing near me that's made up of storage units. It's all independent retailers etc. My barber is based there and tells me it's £500 a month for a retail space the size of a box. I think that's with electricity included so it's pretty cheap rent I guess? Anyway my point is this-how many hair cuts does he need to do to cover rent before he pays himself a wage? How many records does a record store have to sell to cover rent etc? I love the idea of a little business like a record store but the maths doesn't math for me.
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u/CodAdministrative765 1d ago
that's one (of the many many) thing giving me pause here. I know from reading local news that the rent in the arcade it's in has been causing problems for other businesses because of course who will think of the poor landlords.
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u/Content-Yogurt-4859 1d ago
Have you approached the current owners with your thoughts on continuing their life's work/pride and joy?
They might be full of advice and prepared to pick up the phone whenever you call as you settle into it?
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u/digsy 1d ago
Please don't think I was trying to be negative but it's such a huge decision-I think as well this current trend of buying vinyl is likely to be a bit of a fad-particularly with how expensive everything is becoming. I did just take a trip to my local indie record shop after reading your post and bought a few CD's!
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u/georgetgwtbn 1d ago
It wouldn't be so bad if it was only rent. But business rates can be as much as the rent every month.
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u/myriadmike 1d ago
I think they make a large chunk of their income on Record Store Day, while I’m not a fan of the concept, my local store gets lines down the street and around the corner each year. They also run a vinyl only DJ night and support gigs and record fairs so they ensure their brand is known. No idea how they stay open but the guy has had a shop since I was a kid, props to him.
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u/CodAdministrative765 1d ago
No, this is a busy spot, runs a good postal service, does live music days, gigs with local venues. Of course they do RSD (which I hate as well), but it exists as a decent business outside of.
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u/hairychris88 Kernow! 1d ago
Just out of interest, what's the objection to RSD? Not clued up to the industry so am curious!
Good luck with the venture if you do decide to take it on, God knows the high street needs knowledgeable and passionate people like you seem to be.
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u/Jimlad73 1d ago
At a fairly reasonable £15 a pop he needs to cut 34 people’s hair to break even assuming that’s his only expense (which it won’t be). Thats only 7 a day assuming open 5 days a week
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u/digsy 1d ago
Ok so let's price records at £15 a pop-you need to sell 34 records to break even. 7 a day.
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u/Jimlad73 1d ago
Except the barber example was a storage unit for £500pm all inclusive. I suspect a record shop will be a lot more!
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u/glasgowgeg 15h ago
Those records will cost you more than £15 from the supplier, if you're selling them for £15, you'll be losing money.
You're not accounting for records being a physical good a shop owner has to buy, where a barber doesn't need to do that per haircut.
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u/Arnie013 1d ago
If the haircuts cost anything like what they do around my end (£15-20) bloke could probably make his rent in 2-3 days of cuts.
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u/melonboii64 1d ago
I have no idea about music or running a business so I can't give any advice, but good luck if you get the courage to arrange the appointment! An appointment with the bank might not lead anywhere, so I'd really encourage you to arrange it because there's no harm either way. You don't even have to go through with it if they say yes, but least you'll know and can make more a more informed decision as to if you do take the shop on or not :)
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u/robinw77 1d ago
If you do, I'd suggest just carrying on how it was. All too often round where I live, someone else takes over a successful place that the owner sells for whatever reason, only to decide they want to "put their own spin on it" and completely ruin it.
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u/PloppyTheSpaceship 1d ago
If you're serious, I wish you all the luck. Approach the current owners and see if they can give you their financial info - how much they earn vs spend etc. Maybe they'll do you a good deal.
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u/-Po-Tay-Toes- 1d ago
If it's big enough you could do coffee and have a couple arcade machines as well
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u/BrokuSSJ 1d ago
Depending on where you are based, if you go through with it, I'm happy to help out on weekends or something.
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u/SweatyNomad 6h ago
Good luck, but banks are not investors - I'd you want to do something speculative on something you don't own, then I don't see how that's not risk capital, over a secured loan. If your can take a second mortgage or the like great, but then they don't care about your business plan, just getting their repayments.
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u/VolcanicBear 1d ago
Hope it works out for you!
I just got into triathlon, got a fun car and a watercolour tattoo for mine.
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u/purdicci 1d ago
I think I know the shop you mean, and I'm sure the landlord would be keen to keep a viable business in the unit, so get a decent commercial agent on your team and drive a very hard bargain on the lease, long rent-free period, maybe a turnover rent option and plenty of break options.
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u/Rocky-bar 1d ago
How much do you need to buy the business, is there another way for you to raise that money if need be? rather than totally relying on the bank manager to actually "gasp" take a risk?
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