Why would you open a Business in a recession??

Why would you open a Business in a recession??

“Why the F**K would you open a clothing store in a recession??" It’s a question that I get asked when I tell people to follow my business on Instagram. Obviously opening up a business is never easy, especially financially but I wouldn’t be lying if I said that it’s undeniably cheaper (in my case) to set up shop during a recession!

Setting up a business during tough economical times isn't for the faint-hearted, but it has its silver linings. Long before the cost of living crisis hit, I had my eye on the perfect store. So when the previous tenant unexpectedly closed up shop and exited their lease early, I was happy that I didn’t have to wait three more years to get the shop I wanted. I knew I had to seize this huge opportunity to do what I always dreamt of. To me getting the shop that I wanted early, was the biggest push to start Lidos Boutique.

Once I had the store, there was a whole lot of work that had to be done. She is an old store that hadn’t had a lot of love in a while. I was the project manager which meant I had to get every contractor and tradie myself, which had its difficulties but there is a lot more room for negotiating this way. I have never been an overly stern person, so it was hard to get into the habit of asking for what I want, but now I can 100% say that from negotiating the lease, to engaging each contractor, assisted in stretching my budget further. 

I also did as much as I could do myself on the shop. Credit to my Family and Friends who came to help out painting, patching, drilling and constantly cleaning. It’s never a dull moment doing it yourself and you truly have a new perspective on every shop you walk into after organising your own fit-out.

What's more, literally all of my fit out was recycled. In just mirrors alone I would have saved around $7000 which is crazy! My clothing racks, counter, fitting rooms, displays, mannequins, plinths and everything in my back room was recycled into my shop. Sustainability has always been a huge focus for me, in not only business but as a human, so when the choice was in front of me I was so grateful to recycle and reuse a much loved fit-out.

The smart buys I found on Facebook Marketplace were also game-changers, helping me stretch my budget further than I thought possible.

Another huge plus for me was that a lot of retail brands won’t work with Boutiques that haven’t been open for at least 6 months. To me, that condition was make or break. If a brand new Boutique opened up and they had practically nothing in it; I wouldn’t go back in. A customers mind is made up within 20 seconds of entering your shop. So having limited brands wasn’t an option for me.

Due to the recession, brands had to change their way of thinking. So when a new Boutique enters your inbox asking for you to take a chance on them, It was hard for them to say “No, wait 6 months”.

All of that being said, there definitely are some struggles to opening in a recession. Everyday for a few months I would open instagram to another business I loved and followed posting they are closing. Reading that after just quitting your job to go in head first is one of the scariest feelings!

Through it all, I’ve learned the importance of community support. Australians rallied behind small businesses during Covid, and now, more than ever, we need to keep that momentum going. Choosing to support local businesses over big chains makes a real difference.

So when you come into my shop and you see the decals on the front windows, just know that I designed them. When you try something on in the change rooms, know that I painted those. And when you sit down on the chair in the far right corner, know that drove a long way home in my (very small) car from Facebook Marketplace.

In the end, opening Lidos Boutique in a recession has been about seizing a huge opportunity sitting right in front of me. Don’t miss out on your dream because of what is happing in the economy.

Together, we can weather any storm, recession or not.

Big Love,

Ava xx

 

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