How To Start A Retail Business A Complete Guide
It takes more planning to open a retail business than you might think, especially in today’s highly competitive market. To open a successful brick-and-mortar store, You will need a business plan, including market research, a legal structure, an ideal location for your storefront, startup funding (around $100,000), and products and a team of employees ready to sell. You’ll also need to launch your online store and get marketing started.
13 Ways To Start A Retail Business
1. Develop a plan for a retail store business
A formal business plan is essential for any business. A business plan will give you a clear path, show that you have done market research, and set you up for success.
The Small Business Administration (SBA), outlines two types of business plans: lean startup and traditional. If you are applying for funding, such as loans, traditional business plans will be more detailed and appropriate. Lean startup business plans can be more informal and are best suited for businesses that are flexible and adaptable. A shorter one-page business plan is also possible.
We recommend that you follow a traditional business plan when opening a retail shop. This plan is more detailed and you don’t want to be unprepared. It will also give you a clear outline to present to potential investors or business partners, such as banks.
These are the nine elements of a traditional plan for a business:
- Executive Summary: A high-level paragraph that outlines the purpose and mission of your company, as well as why it will succeed.
Company description: Be specific about the details of your company, such as what problem you are trying to solve, how you will do it, who you intend to serve and what talent you have. - Market analysis: Include industry outlook, trends, successful competitors, and your strengths.
Management and organization: Describe who will run your business, and what experience they have in a startup or retail environment. - Product Line: Describe the products you intend to sell and why they are necessary. Also, include any research or development on proprietary products and private labels.
- Marketing and Sales: What are the strategies you’ll use to retain and acquire customers?
- Funding Request: If your organization requires outside funding, please outline your requirements and describe how you intend to use the funds.
- Financial projections: Describe how your business will be stable and profitable over the next five years, with a projected financial timeline.
- Appendix: Use this space to store any additional documents, such as product prototypes, pictures, credit histories and licenses, permits, and so forth.
Although it may seem overwhelming, the best way to make sure that readers are able to read the entire document quickly and absorb all the information. This includes the “why” behind the “how”.
There are many options when it comes to writing and formatting your business plans. You can also type in word processing software such as Microsoft Word or Google Docs.PowerPoint also allows you to create your business plan in a slideshow. This is a great way to present your plan to an audience.
2. Determine Your Niche & Select Products
Your retail business will be more successful if you create a niche. The competition is fiercer with retail giants such as Amazon and Walmart. Many large retailers like departmental and box stores carry similar products. A unique perspective can help you offer something that shoppers won’t find at their local Target.
A niche market is defined as a group of people who have a common interest. It is easier to be the preferred retail destination in that niche market if the interests are narrower. There may be many shops in the area that sell pet products. However, you might be the only one that specializes exclusively in dog costumes.
Originally published on The Tech Trend
