Would this retail chain be sucessful?

[Will]

Hey there, wondering if any business/economics experts could help out.

I'm 17, currently taking various courses in business.

The market for economy retail 'mini supermarkets' has grown by 300% since 2008 (for obvious reasons).

As the market grows, there will be opportunity for small business to get a share of the expanding market value, like i'm proposing to do here, it will channel various economy brands (in the same form of Poundland), and 'should' be a success.

When i'm 18, I will receive upwards of £3,000,000 due to a family member passing away, and I'm, seriously considering making something of this.

If anyone has any comments/ suggestions, please comment below.

[Pr]

I am a SBE entrepreneur, but TBH economics and commerce are not my strengths. That said, I can still help you.

Firstly your inheritance. A very good sum of money that could, with careful management but also some risk taking, really work for you. I, and the Richard Branson, always advise one needs much starting capital. This you have.

Do, however, put say £500k into an investment for your personal long-term future (Pension, etc). Also maybe put a whole £1m in Reserve. The remaining £1.5m will focus your mind more, yet still be a very sizeable amount to fund the startup.

Nearer the time do, though, get expert advice on this.

Now the retail market. Other than those mini supermarkets it is now struggling very much. However, there are a sizeable number of people who prefer not to shop online, particularly with groceries etc. Therefore there could be a secure future in the strata you plan to enter.

And the economic recession is going to last many more years yet, so being thrifty will be your best strategy.

Also, for a venture of that size I strongly advise find a formal business partner. Preferably not a present friend, rather someone who complements your personality and abilities.

For example, if you are say an extravert and creative, find someone who's an introvert and logical.

Whoever, ensure all contracts are written by a lawyer. To ensure you aren't left with any debts, or other legal actions, if s/he suddenly departs. Take no-one on 100% trust!

Getting customers... Most advertising used to be 'outbound', where the vendor approached potential consumers. Often by 'cold calling'. Nowadays people are more savvy and 'inbound' marketing is much more effective. Especially with Internet users, though not necessarily only with them.

To summarise inbound marketing, you have to be considered "the" place to go (to be "cool"). Facebook is much to blame for this sheepish behaviour, but it can leverage you immense market power. Do also use the blogger Twitter, to liaise with your customers (followers) and to announce specials etc.

I advise you to offer not just shopping in your store(s), rather some "experiences" too. Be creative with these. Make a visit not only cheap(er) and value-for-money, but a fun day out too (for families, couples, youths & children).

One example might be have musicians playing in the foyer, not to use just musak. You could have say a pianist, and on other days a local singer or struggling bands. That kind of thing. This will make you "cool".

Also you could try to help your local community in other ways. Two ways that come straight to my mind are these: have a local farmers' produce policy as much as you can; and encourage apprentice bakers, butchers, fishmongers, etc. To put back into your community.

Lastly, I suggest you locate this/these store(s) in poorer cities and towns. For example east of London; South Coast ports; East Midlands; South Yorkshire; North West; North East; South Wales; Central Scotland; Northern Ireland; also in Ireland itself.

To conclude, you've got the capital, though don't risk it all; the market is still there to be exploited; get yourself a partner (for 'synergy'); and use the Social Media to attract much interest.

Finally, a suggested name for your business:

- 'VFM Community Stores'

(Value For Money).

What do you think?

I wish you good luck....