Retail

Setting up a retail business in the countryside can take many different forms from selling from the side of the road to rural shopping complexes. The majority of farm building conversions for retail are through the development of a Farm Shop. Farm shops focus on the sale of products from the farm or other local producers. Other retail options include: country clothing stores, nurseries, pet food, delicatessens, cafés and tea rooms and crafts.

Rural retail has the benefit of creating a venue for the consumer and may allow the development of other businesses off the back of the shop. It is relatively easy to develop a brand as the location is usually picturesque and rustic. Farm shops enable the farm to add value to a product or service already offered on the farm.

The development of a rural shop often requires high staffing levels and a substantial level of management input. There may be problems in running a shop due to seasonality in both supply and customers. Retail businesses rely on a large number of customers and they can be very fickle if customer service is not good or prices are too high.

This website helps your fill out our generic business plan, which you can download to your computer by clicking here.  Listed below are sections which relate to the sections in the business plan, giving you detailed information, case studies, useful documents and links to make the writing of your business plan easier.

Teddy Maufe: The Real Ale Shop, Branthill Farm, We
Background Teddy Maufe is a tenant farmer on the Holkham Estate. Barley grown on the farm is malted and used to make ales by a number of local micro breweries. These local ales are then retailed from the shop on the farm. Managing diversification Mr Maufe commented that for a farmer to enter into the direct retail business is a big leap. He felt it was vital that everyone involved in such a venture was fully committed to the idea, and filled with enthusiasm. The project must therefore be one you are really interested in. You also need to be able to relate to people, and feel comfortable with the public coming onto the farm. It is important that the returns outweigh the effort – for example, the conversion costs at the farm were low, and it was possible to do a lot of the work ‘in-house’. Mr Maufe commented that this kind of diversification should not be embarked on if you do not enjoy being busy. He works seven days a week all year round, but enjoys it. The shop is actually supporting the farming side of the business, and this has made the difficulties and pressures of farming easier to cope with, emotionally as well as financially. As a tenant, Mr Maufe felt that it was important to establish both the support of the landlord, and the financial arrangements between the two parties, right at the outset, when the business is still an idea. Marketing The business has won awards from the EDP and CAMRA, and the Big Farm Weekly Food Chain Award. Mr Maufe felt these were very important in establishing the business in people’s minds. Visitors have often seen two or three reminders of the existence of the shop before they actually get round to visiting. Keeping a high public profile is very important. Staff carry out a monthly survey of visitors, which has shown that half come because they see the local signs, and around a further third come after seeing leaflets, displayed in local pubs. Knowing your market is important. For example, the survey has found that this particular business appeals most to men, and that providing leaflets and other printed material is important to occupy the rest of the family, while the men choose their ale. The business is expanding, with a franchised shop opening in Suffolk. The target is six new shops in six years. Legislation Mr Maufe obtained permission for retail because the shop is designated as a Farm Shop. Setting up the business required compliance with Health & Safety legislation for the shop. Legislation connected to the sale of alcohol was daunting. Mr Maufe had to pass an exam in order to obtain a personal license, and also had to obtain a premises license. Good directional signs are very important, and he recommends that full permission for these is obtained at an early stage. He felt that being very open with officers, and involving councillors was important. He invited councillors to visit the site during the application stage.
http://www.therealaleshop.co.uk/	Caroline Davison