George,

There are a number of issues that you need to consider before you take the “giant leap”

1) How much smaller and how much more expensive is the new unit?  Can you sustain the increased costs (if sales are slow to increase in line), and can you display what you need?

2) As you have remarked, it’s not just the volume of footfall that matters, but the quality (and spending power) of that footfall.  I certainly subscribe to the argument that you will struggle to sell quality goods in a downmarket establishment (just think where the boutiques are located in relation to the Primarks of this world).  It’s where YOUR target market (ABC1s) shop that matters to you – find them and locate there!

3) For creative industries, I also strongly support the idea of the “cluster effect”.  A couple of galleries, small boutique shops, independent coffee shop and some niche retail makes much more of an experience for the shopper and is more likely to lead to impulse purchases as well as planned purchases

Without seeing the facts and figures it’s impossible to provide sound business advice.  However, reading between the lines your heart’s set on this location and you instinctively know that the investment is the right thing to do for your business – so go for it! But remember – retail’s in the doldrums at the moment so drive a hard bargain with the agents!!

Selling your product can be a challenge for business owners and, for Marcela, selling “her babies” is providing her with a problem. Her’s is a traditional question – “who can possibly sell these products better than the creator with passion?”

Whilst I applaud her passion and commitment, I would question whether that alone is enough to generate optimum sales revenues. Too often the “creators” of a product are so engrossed in it, and are steeped in its development, that they can’t see the product with the same level of clarity as an objective observer.

Hiring their first employee is providing challenges for both Marcela (Fishbowl 2) and Owain & Dom (Fishbowl 3). It seems that, for both businesses, the first employee is, to one extent or another, a friend of the founder.

Whilst this is a logical step, and one that many young businesses take, there are risks as well as benefits in employing friends. As an old business mentor of mine used to say: “never sell a used car to a friend – the moral obligation to put right faults, or to “do a deal”, is just too great”. The risks are similar for Rico Mexican Kitchen and Head and Griffiths.

Hiring part time help has positive and negative aspects. I was fascinated to read Marcela’s blog about “Managing Business Finances” and her experiences of meeting a potential part-time FD (financial director).

I think Marcela has faced/is facing 2 of the biggest challenges that any early stage entrepreneur must address:

1. Recognising that few people have all of the skills that they need to deliver the true business potential themselves
2. Releasing the absolute and complete control of the business, and letting others have a strategic input.

Choosing the bank account for your first business could be thought of as a straightforward process based upon who offered the longest “free” banking period... It shouldn’t be! This advice is in response to Bank accounts and VAT questions from Fishbowl One.

In headline terms, here are some considerations that you should think about when considering your first business bank account.

Recruiting first employees and when, and how, to do that is a common problem which will be encountered by most early stage businesses. I can well remember taking the plunge, and the feeling of responsibility when the first one started!

I guess the key issue for early stage businesses is the desire to stay in control – leading to the perceived need to do everything on your own. This can be a major barrier to realising the true potential of businesses; with business owners dragged into the mire of (essential) administration at the expense of concentrating on business growth or product development.