Tips To Open Your First Retail Store
Everyone dreams of starting off on their own and being their own boss
. But if you think that you will be free of pressure from above and constant deadlines think again! While it promises to be stimulating it can also be very challenging. Most new businesses fold up within the first few months of operations; so, a lot of thought must go into business ideas and models before they can materialize.
Here are some basic suggestions that will help you open your first retail store.
Initial Groundwork
The first thing that must be undertaken is extensive research of the industry that you plan to enter. Study the entry and exit barriers, the competition, the supply and distribution channels and local regulations.
The size of the market and any shortcomings in the existing players are also important considerations of any business plan.
Business Plan
Once you have decided what industry you plan to enter, it is important to make in-depth plans detailing the initial investments, running costs (insurance, rent, wages, utility bill estimates and so on), number of employees, expected size of the market, personal investment, partners and, most importantly, the idea that will set you apart from the rest. Ensure that expectations are based on reality as non-performance has a higher price than lower estimates.
Place Of Business
Where you conduct business will assume relevance if you are opening a new retail outlet. To begin with, it will be difficult to start business at a central location. Attracting the nearby customers with exclusive offers will go a long way in earning goodwill. You can then slowly branch out into online transactions which will enable people who are far off, to avail of your products and services.
Target Market
It is not possible to begin selling products and services to the whole market. Keep in mind a certain demographic segment and aim at attracting them. It could be the youth or aged, sportspersons, homemakers, long-distance commuters and so on.
Seed Capital Required
Make a list of all the possible sources of finance. The business plan along with reports including expected earnings, payback period, breakeven period, collateral, partner interests, if any, target market and so on, should be ready at hand for banks, financial institutions and venture capitalists to examine.
Manpower Resources
As a retailer, it is important to be able to co-ordinate the different activities of the business and stay in control of all the goings-on. However, while leading by example is essential, delegation of strategic functions is also an important task. Hiring competent personnel with integrity will ensure that business operations are carried on without any difficulty. Those employees who are at the client end of activities, are the face of the company and as a result, must put forward their best foot.
Marketing
Advertising will make customers aware of your products. Details of services extended, product features and USP of the product should be promoted extensively. It could be done through publicity campaigns, newspaper inserts, road shows and posters. Advertising on popular websites could also attract customers attention.
Licenses, Regulations And Taxes
Remember to consult local authorities regarding licenses required to practice, taxes applicable and name of the concern. Take care of any other local regulation that needs to be complied with to avoid future hassles and fines. A CPA could also guide you on tax breaks, if any. Also remember to register yourself to benefit from legal recognition by the authorities.
Opening a retail store is not a means to escape from accountability. On the contrary you are now answerable to the general public without a corporate shield. But you get a chance to live life on your own terms. Hard work and persistence are vital to succeed in the retail business. Remember not to bite off more than you can chew. It would be wise to start slowly but steadily and expand gradually.
by: Jane M Dawson
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