Bridal business financial advice for starting your new venture

Before you even consider opening a business you need a sound business plan and realistic help. Unlike many of the ‘online guides’ or the generic business plans you receive from a bank you will find I tailor my bridal business financial advice to your individual business.

One of my key areas of expertise is providing bridal business financial advice by helping you create a financial plan, setting us apart from other consulting services.

Continue reading if you would like to know just a few critical points that you need to consider to help your business start successfully and possibly avoid losing your investment:

Financing your business
You should not start your business until you have a complete business plan in place to set you up for success. Not a ‘bank’ business plan but a bespoke business plan for your’ business. If you need to borrow funds the bank will need an explicit insight into your proposed business before even considering a loan. I can help you with preparing your business plan.

Creating a financial plan
The most important part of any new business is establishing a sound financial plan. The aim must be to run your business profitably and not fall into a trap of not taking a wage for numerous months or even years. You need to set out all costs to avoid your business being underfunded. In my many years providing bridal business financial advice I have never, ever found a start-up business implement a full list of overheads or costs to manage the business to be able to manage the sales targets efficiently. Let’s get you realistic overheads and sales targets.

Investment
If you need investment the bank will need to know what funds you have in place before offering you a loan to give you the additional finance you need to enable you to start trading with confidence.

Premises, rent & associated rates
Location needs careful consideration. It is not vital that your shop is on a high street, but having easy parking nearby is a huge bonus. I suggest a 5-year lease with 3-year break clause to keep your options open. Be very careful about the terms within the contract, take time to read them all and don’t be afraid to ask questions.
Not seeing just two words within the lease one of my clients had to pay £1,000’s towards the Landlords costs to enhance the building.

Overheads
You may not know what some of the costs there will be going forward when making your financial plan. Many forget to include areas such as credit/debit card costings, buying dress samples every year, advertising, insurance and so much more.

Sales targets
Many businesses don’t realise that only when you have detailed realistic annual costs and overheads can you then effectively set sales targets, predict profits. This is where your financial plan is so important. You should be able to reach sales targets on a regular basis, and this is not dependant on how many dresses you sell, but actually is all about cash flow.

Cash flow
Reasons for new businesses failing within the first few years is due to not enough investment, too much stock and not enough sales. I will be able to help you achieve the right balance. I will be able to help you achieve the right balance.

Costing of dresses
If you under-price your stock, it could affect your profit margins. If you overprice your stock, it could affect your sales. The designers will supply a suggested retail price, however this needs to be looked at carefully to give you a good balance of sales and profits.

Choosing Designers, suppliers etc
Don’t over buy to impress the designer. Decide how many samples you want in your showroom and keep to budget. Remember, you may have to purchase new designs twice a year to keep your chosen designers. And it is best not to stock the same designer label being offered within a 20 mile radius.

Credit Debit card transaction
Selecting a credit card service that best suits you is vital. Familiarise yourself with associated fees as they could end up eating into your profits if you are paying too much. There can be many hidden costs if you are not diligent in your research.

Marketing & advertising
Make sure you keep to your advertising budget. Don’t assume that social media activity is all free, but your time costs money and much can be achieved through free and paid social media campaigns. Exposure and brand awareness of your business is an essential part of businesses operations and without it you are likely to fail to reach success.

Stationery with terms and conditions to protect you and the bride
It is vital that a bride-to-be understands that she is entering a contract when purchasing a gown. You will need to have a contract that protects both the bride and you. Without a full contract all manner or of unforeseen problems can arise, particularly if a bride wants to cancel her purchase, or wishes to change her dress size after ordering. If you have a signed contract this can help to avoid discrepancies later.

Employment
Many people believe that they can start a business on their own This simply isn’t recommended. You can employ three members of staff for the price of one. I’ll show you how.

Insurance
With so many different policies available you need to research fully to ensure you have protected the multiple aspects of your business. You need to take time to research what is available.

Above are just some of the questions that you may have.
Let’s talk in more detail and get some of the answers you will need to start on the right road to success.

Take a look at our Improve an existing business for more bridal business financial advice as there may be tips there to also help you when planning your new business.

Take a look at my about page to find out more about me.

If you would like a FREE 30-minute informal conversation or on-line meeting regarding your business, please contact me by email to arrange a suitable time to talk.

Online contact form: online form
Email: janewatson@bridalbusiness.co.uk
or call: +44 (0)7909 52 02 47