Opening a shop in Ryde

Goldbug · Joined: 21 Jun 2010 Posts: 3 Location: Essex

Hi all, I am new to the forum and hope you can give me some feedback.
At the moment, my partner and I have a shop selling second-hand toys in Essex, but we are hoping to move to the Island within a couple of years.

Our plan is to put in a manager at the shop, rent out our house and try it for a year or so before we commit permanently - but I'm sure we'll want to stay!

We intend to rent or buy a property with some form of income-generating potential, such as a shop with a flat above, a tourist attraction or a guest house/B&B.

I have family in Ryde and it's the town I know best, so a shop in Union Street was my first thought.

We are looking for a type of shop or other business which could be run successfully on a year-round basis, as I understand from my family that the Island is very quiet in winter as there are so few tourists and the local people don't have any money as half of them are on income support in the winter.

Any suggestions?

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Wight Portal · Joined: 17 Sep 2009 Posts: 316 Location: Carisbrooke

Shops here on the Island come and go like the weather. There's a lot of businesses that have ceased trading but the owners are still paying leases on property they are not using and desperately trying to sale. The only people making money are those who hold the freehold and sell leases.

Guest houses and B&B's on the other hand if well run prosper and this is what I'd invest in rather than a shop. In the next few years once the Island roads start to be overhauled, there's likely to be a fair few sub contractors from the Mainland doing the work all needing accommodation, which isn't a bad market to get into.
But you will only do well if you set up with your own money and not borrow huge amounts from the banks. A lot of people start with massive loans and then realise they can't afford to be competitive and so fail.
It's a long winter whatever you do here.

Ventnor Long Knives · Joined: 09 Oct 2009 Posts: 31

Yeah its great in the winter with no holidaymakers around, just us benefit scroungers. As Cameron now refers to anyone on benefits given that the election is over.

Trouble is half the people on benefits are also working full time they just cant afford to live on the wages.

Goldbug · Joined: 21 Jun 2010 Posts: 3 Location: Essex

Thank you for your feedback so far, and I'm sure it must be a hard struggle for a lot of people in the winter. It's good to know it's very much a 'buyer's market' as far as leases are concerned, so we'll drive a hard bargain!!

If we do a B&B, as long as it can generate a year's income in the summer months, I don't mind working myself into the ground all summer and taking things easier all winter!

eebahoo · Joined: 11 Nov 2008 Posts: 5 Location: Shorwell

Interesting post. I've been looking at shop prices too, not in Ryde admittedly.
I kept hearing people say "shop owners are DESPERATE to let their shops" but every person I've contacted wants big money for their out of the way tiny shops.
Maybe desperate and cheap aren't the same thing Smile

Wight Portal · Joined: 17 Sep 2009 Posts: 316 Location: Carisbrooke

Most are in the situation I describe in an earlier post. They jumped into a contract on a lease that has left them out of pocket and are trying to sell for a profit or at least to cover their original contract.

At the time the property market was booming, leases went for silly money and it would seem the takers jumped in without a thought to what would happen if the bubble burst.

Taking out a 5 or more year lease is a big commitment and should be avoided if you need to borrow the money to do so. Being saddled with a payment each month for a shop you're not using because your business failed is an expense no one needs.

What a situation to be in you want shot of it but can't afford to sell at the now lower market rates.

If anyone's heart is really set on a shop, then find like minded people pool your money together and get the biggest one you can and divide the retail area between you, leaving room to rent out further space to others.

By doing this if one goes belly up there's still an income coming in to help cover the rent.