Re: Bicycle shop
 

I hope they have audited accounts that show a profit you could survive off? , don't believe the old "we make a load but pocket the cash so the accounts show no profit " carp.

Re: Bicycle shop
 

Hi

There is a scheme in Seville that works well, thousands of bikes I reckon with hundreds of places to exchange / park. AND that would kill your business DEAD. So please - make sure that the scheme is not being extended to your area of business. And check out the Seville scheme - because if it really is successful, then other town are sure to jump on the bandwagon.

Sorry to maybe put a dampener on your life, but better find out now that is the reason behind him selling his business.

Davexf

Re: Bicycle shop
 

You are probably doing them a bigger favor than they realize:thumbup:

Re: Bicycle shop
 

concur the Seville scheme is really successful, I saw solicitors walking out of office, paperwork in pannier and off to the court or client. low cost, probably allowable on expenses, young people off to college, some tourists tried it as well but one fell into the tram track - ho hum, but still its a good thing in the summer and helps a city to make environmental claims as well

sure other larger locations have looked at this, probably waiting for EU funding to set it up.

however, if someone is able to get in with the council and operate the scheme for them under contract there must (or shoud) be profit in it. so is it the kind of project that would only be awarded to a Spaniard ??

Re: Bicycle shop
 

What larger locations are there? Seville is the 3rd largest city in Spain and Barcelona already has a very succesful cycle scheme, bcing

These things cost millions to set up, you would need to be a very large company to be considered by the ayuntamiento. Clear Channel operates the Barcelona one. They are a very large multinational, not "a Spaniard" at all

Re: Bicycle shop
 

Audit being carried out at the moment, but thanks for the advice.
Have not yet come across anything to suggest such a scheme in the area at present, I see your point that it could happen though.
Owner is selling up due to divorce and having to go back to Argentina for personal reasons.

Re: Bicycle shop
 

The shop has been trading for several years, I suspect the accounts will be poor as he always deals in cash with me!. I do have a suggestion which is sit watching the shop all day.Get a feel for their amount of customers.

After my last reply, I noticed the sheer number of cyclists on the front in Fuengirola, it is quite large, and like anything they all go wrong from time to time.

He seems to buy old bikes and do them up selling them at a fair price, I would try this and do the 2nd hand market on Saturday.

As long as the rent is not sky high you must be able to make a living.

regards
al

Re: Bicycle shop
 

Well good luck:) At least you are out of the box with your business choice. We had bikes and used a place on Fuengirola main st. not far from the mosque. Far enough away from you though for competition.They were always busy. When we left we sold them very quickly so there must be some demand.

I would advise you not to just concentrate on ex-pats. Spanish are into cycling so best to market yourself to them.

Re: Bicycle shop
 

And I would advise you print this one phrase on a piece of paper, laminate it and stick it with your 'mood board' or whatever the business equivalent is, to remind you. ;)

Re: Bicycle shop
 

I totally agree with all thats been said, we have actually watched the shop on occasions during the quiet times too. We would never consider only concentrating on ex-pats, although we do hope to see you all at some point ;-)
and we know we have a lot of work to do to market ourselves well and expand to the point where we dont just always deal in cash! My partner has run his own business for 30 years and is totally against any shady accounts system and cannot get his head round the often done spanish way of business accounts!

Re: Bicycle shop
 

[QUOTE=blackjack;9940879]I totally agree with all thats been said, we have actually watched the shop on occasions during the quiet times too. We would never consider only concentrating on ex-pats, although we do hope to see you all at some point ;-)
and we know we have a lot of work to do to market ourselves well and expand to the point where we dont just always deal in cash! My partner has run his own business for 30 years and is totally against any shady accounts system and cannot get his head round the often done spanish way of business accounts![/QUOTE]

Give it 2 or 3 years in business in Spain( If you last that long) and he will understand why ,survival not greed.

Re: Bicycle shop
 

I have explained that to him, but he seems convinced if we dont keep it totally above board we will end up with investigations, fines etc.

Re: Bicycle shop
 

Im not suggesting you go "dodgy" but that you will soon see why others do .

Re: Bicycle shop
 

well the most common sight I see is the till open but no transactions being entered, so the takings must be the difference between float and cash in hand at closing time.

my BIL worked on the markets and he worked that system, everything was paid for out of the leather bag he wore like a sporran but no records.
he went bankrupt after the Revenue chased him all over the country.

Re: Bicycle shop
 

Running a businessin the uk is nothing like running one in Spain.

VAT is due not matter how small the takings, there is not VAT threshold, and if the same rules applied as regards minimum turnover required before paying VAT, then loads small business in Spain would not pay a penny.

I believe that bike repairs have a 7% vat rate, due to the nature of the work involved, as it is classed as small repairs, so the bill to the customer would not have the full whack of vat on top.

Also the SS contributions will be over 500 euros per month for you both, which can be a killer to lots of small enterprises.

I personall know of a father and son team that does wrought iron work, they pay the 500 odd per month SS, and a monthly rent on their "workshop" of 88euros.

The saving grace is the father is retiring in 3 months, so the son can have all the work to himself, and the SS contributions will be halved.

As you say it is a matter of survival for many, and now with the crisis more widespread.

Some business of course are so regulated that it is very difficult to go "dodgy",but most are on the lookout to "cash in" a little......if they can.....:rofl: