02-05-2007
High street retail still a viable new business
Retail figures have slipped in recent months, as consumer confidence in Britain appears to have dropped.
But this should not dishearten budding entrepreneurs with grand plans for a high street shop, online store or retailing behemoth.
With thorough planning and the right financial solutions, a bright business idea can become a lucrative reality, since Britons have more expendable funds than ever. And, contrary to widely-held beliefs, you do not need to have a trading history in order to apply for merchant status from a credit card issuer.
The provider will expect to see a coherent business plan if you are forming your first business, or accounts for the past three years if you have traded in the past.
You can apply for the following acceptances:
o Visa, Mastercard, Switch, Solo, Connect & JCB
o American Express
o Diners Club or similar specialist cards
The former group is the most straightforward process and will give you access to the largest cross-section of consumers. But without the ability to accept plastic, your business may deter customers and will not draw as much as business as it may warrant.
Before you get down to the brass tacks, however, it is important to carefully consider whether you plan to buy or rent your first premises, unless you plan to operate from a virtual domain.
Should you rent your retail space a large proportion of your income will go towards this significant overhead, with no long-term gain.
With a commercial mortgage, however, your business will have a significant asset from the outset, with a high chance of capital return and the possibility of leasing the space in the future.
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