subject: 6 Easy steps to opening a shop [print this page] 6 Easy steps to opening a shop 6 Easy steps to opening a shop
Are you fed up of the rat race? Has it been your lifelong dream to open a shop of your own, be your own boss, and call your own shots? Why not take the plunge? Now is a better time as any. But, before you jump head first into the scary world of shop ownership, there are a few steps you must take to ensure the success of your shop.
1. Capital
Ensure you have the capital to start and run your business sufficiently for at least 6 months. Be sure to include all potential costs such as fixtures and fittings, stock, wages, rent, business rates, accounting costs, and a budget for marketing, advertising and market research.
2. Insurance
The retail sector is busy by nature and however many precautions you take, accidents always have the potential to happen.
Ensure you have the correct shop insurance policy; remember to consider the following aspects:
Public liability insurance is essential for your shop premises as you will be in regular contact with customers and members of the public.If they were to become injured at your premises or if their property was to be damaged while in your store, public liability insurance would cover you in the event of any such claim.
If you have employees working for you, it is your legal obligation to have relevant employers' liability insurance. Every business in the UK, regardless of its size or turnover needs to have this cover in place with a minimum cover of at least 5million in place.
Shop building insurance will cover for your premises while shop stock and contents will cover the stock & contents you may hold in your shop.
Business interruption will provide protection if you find you are unable to trade for a length of time, it will cover your losses.
Shop money cover will cover your float, vouchers, wages for your staff, essential cover if you keep money at your premises overnight
Shop glass cover coversdamaged glass, shop front, and window frames replacements and the cost of boarding up affected areas is also covered.
Some insurance companies will allow you to construct a policy to suit your specific needs.
3. The Law
It is absolutely crucial that you now the laws that you have to comply with as a shop owner. Some include:
Sales of Goods Act 1979
Supply of Goods and Services Act 1982
Sales and Supply of Goods Act 1982
Disability Discrimination Act 1995
As a seller it is your responsibility to comply with the law. Visit your local government websites for the latest Act Amendments and ensure that all your staff also comply with any laws. Legal action could be taken against you if not.
4. Market research & planning
Carry out research on your target market. You need to identify your target customers. You need to find out what your target customers require, what they feel is lacking from the market place, what they are prepared to pay for these offerings and how they would like to purchase them.
Some will rather the option to buy online, others will rather visiting a premises and speaking to someone face to face. All these factors need to be taken into consideration.
Trading online is a fantastic opportunity to help your products reach an ever expanding market as 30 million people a day access the internet, recent figures from the Office for National Statistics (ONS) shows.
Plan your promotions. You must be clear who you are going to advertise to and how. Get your local community involved if you can, if you are opening a shop on a high street, speak to your neighbouring shop owners, get the buzzing about your shop, and arrange mutual advertising so you will promote each other wherever you can for free!
5. Find your niche
Identify and evaluate the market you aim to target. Find gaps you can do this in your market research, rather than compete with major players to provide the same products that larger companies/superstores provide, try and find more bespoke products which make you "different".
If you can give the customer an extended experience e.g. if you are selling beauty products invite the customer back for a demonstration night where you can show customers how to make the most of the products that they buy and different ways they can utilise them.
If you are planning on selling computer software packages, then offer customers an evening at your store where you can give an hour teaching session on how to use the software correctly and answer any trouble shooting question. These kinds of acts will give you the upper hand when it comes to your competition.
6. Competition
Study your competition. You will need to know your competitions every waking move as they could be the reason your business does not take off.
Remember the saying keep your friends close, keep you competition closer!
