Business Question. (Advice)

Neoni

Neoni

Neoni

Soldato
Joined
26 Dec 2004
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Location
Sweatshop.
I recently moved into an office about 3/4 months ago on a trial period i previously ran everything from home.

Now the business is a Clothing Brand, all i require is storage and a workstation to design and email/produce, i manufacture clothing overseas and then ship to retailers once they land in the UK, i also run an online store, so i stock in the warehouse/office and ship direct to customers.

Now here is the question, the business is doing great but my trial period is up now, and its time to start paying rent for the building, now the building/office space gives me nothing extra apart from its luxury. I could 100% run the business again from home..

Now here's where i need you guys, is there much point in me staying in the office, its essentially dead money to me? its costing me a small fortune per month the rents dirt cheap, its extras like costs of living while out of the house, and travel etc.. (its not that i cant pay it, ill feel like its a stepback to move the office/warehouse back home BUT its not really a step back rather than using my head and being smart yeah?)

What do you guys reckon, move back home? save money?

Cheers Neoni
 
Based on what you've said then I see no reason to stay in the office.

I would move back home and look at fulfilment services when you grow further. What kind of volume are you doing?
 
Jambo said:
Based on what you've said then I see no reason to stay in the office.

I would move back home and look at fulfilment services when you grow further. What kind of volume are you doing?
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the new shipment coming back is 3000pcs, 1000pcs of this will be shipping straight out to a UK High Street Retailer
 
Jambo said:
Sorry I meant more like number of orders a month. Split between wholesale and mail order?
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Its hard to put a finger on that, i dont have them numbers to mind, whats fulfillment services? (i have a rough idea)
 
You've given all negatives on the office, but no positives. It's almost like you're asking permission.

What are the immediate benefits to staying?
 
Nix said:
You've given all negatives on the office, but no positives. It's almost like you're asking permission.

What are the immediate benefits to staying?
Click to expand...

Erm, the address is a brilliant part of town. Its in a working environment, its a meeting area/show room also (but have barely had any meetings here) PLUS not keen on the fact of advertising the place to everyone, due to the amount of stock held on premises.

Its essentially what home was but in an office in town, i dont see no REAL benefits essentially.. or massive positives.
 
Neoni said:
Its hard to put a finger on that, i dont have them numbers to mind, whats fulfillment services? (i have a rough idea)
Click to expand...

Basically sending your stock to an outsourced warehouse and they pick, pack and dispatch everything for you. Once you reach a certain volume it usually works out cheaper than having your own warehouse.

If you can handle it easy enough at home I would just do that for now and look at fulfilment services later.
 
Neoni said:
Erm, the address is a brilliant part of town. Its in a working environment, its a meeting area/show room also (but have barely had any meetings here) PLUS not keen on the fact of advertising the place to everyone, due to the amount of stock held on premises.

Its essentially what home was but in an office in town, i dont see no REAL benefits essentially.. or massive positives.
Click to expand...

Sounds to me like you've already made up your mind.
 
Just to share my personal experience a bit more. I have a similar business model and have done home based, small rented warehouse, outsourced fulfilment and home based with a nearby storage container.

There can be problems with outsourced fulfilment and it's annoying because it's outside of your control. But the same can be said when you have employees. Personally I don't want to pick and pack orders or have staff to look after so my preference is probably outsourced fulfilment, generally it saves cost and a lot of hassle.

I have been researching Fulfilment By Amazon a lot and it is actually quite attractive so I am going to give it a try for a new product I am doing and maybe move more products to them if successful. It can appear expensive but when you consider it includes marketing, storage, pick, pack and dispatch it is actually quite good. Especially if you are doing your own brand and have no direct competition.
 
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