Step-by-Step Guide to Opening Your Own Retail Store

Although online shopping is on the rise, it will not be able to eradicate shopping trends at retail stores. When convenience and price are counted, in-store shopping does not hold a candle to online shopping. Yet, a few features such as better quality, a wide variety, and above all, an indelible shopping experience make the latter way better than the former. However, as online shopping gains popularity in years to come, the trend of in-store shopping will never cease to exist.

Retail is the largest industry, allowing you a chance to pick from multiple niches. You can run a grocery store, footwear store, clothing store, supplement store, to name a few. Before taking the plunge, you are counselled to identify your interests and pick a niche. Here are the ways to open your own retail store:

·        Decide what you want to sell

Do not hold the first thought that crosses your mind. Instead, do some research to identify challenges in a particular field you want to pursue. There is a high possibility that you do not have the right skill and capability to do what you feel inclined to do. There are multiple niches you can target, such as clothing, electrical appliances, handmade products, office supplies, and the like. How will you pick the niche?

·        Explore your interests and passions. Ask yourself what you find enjoyable to sell.

·        Figure out obstacle courses in your journey. Do you have efficacious strategies to overcome those challenges?

·        Is there any potential of making profits? Do you think your business will continue to grow despite mushrooming competition?

·        Research competitors to know what and how they are selling. Is there any approach to outperform them?

Do not assume that you are part of a monopoly in that you do not find competition in the niche you have picked. A lack of competition implies zero demand.

·        Create a business plan

A business plan is like a roadmap. It will help you focus on each step one by one to ensure a seamless operation of your retail business. A business plan is also needed to borrow money from financial institutions. As you are looking to invest in your start-up, your business plan must reflect the scope of profitability. No lender or bank will sign off on retail business loans without perusing your business plan. Make sure it is compelling and impressive enough to convince lenders to lend you money. Include the following points in your business plan:

·        Products you are selling

·        Who is your target market?

·        In what way will you set your retail store apart from your competitors?

·        Why do you think your idea has the potential to run a business?

·        How many employees do you need to hire?

·        What will be the initial setup cost?

·        How long it will take to reach the breakeven point?

Your business plan does not need to be perfect, as it is an outline of your future course of action. You can make alterations as and when needed.

·        Establish a budget

The start-up cost will be quite high when opening a retail store. Undoubtedly, you must have some savings to bear the upfront cost. Startup business loans with no guarantor will be fruitful if your savings have fallen short. Bear in mind your budget plays a paramount role in deciding how much you will be able to borrow money from a direct lender.

Instead of a random figure disclosure, lenders expect you to allocate your budget to comprehend your potential for money management. In addition, projected profitability comes into the picture when deciding whether or not to approve your application.

·        Choose a physical location

Location matters the most when running a retail outlet. A heavily trafficked location will put your customers off. At the same time, you need to pick a location which is easily accessible. Pay attention to the surroundings.

For instance, there should be a parking lot, a café, a restaurant or an eating point. Basic refreshments in the vicinity encourage people to visit the store. If you decide to choose a mall as a location, it will be a much better idea.

·        Register your business and obtain a licence and permit

Once you have picked the niche and location for your business, you should start the registration process. Choose a name that reflects your niche. Make sure it is not being used by any others. Before registering your business, you will need to choose a legal entity for your business.

Consult a business attorney for any advice. Then, you will have to head to apply for an employer identification number used for the identification of tax purposes. Additionally, you will need a licence or permit to run a retail store. Some state legislations are quite stringent.

·        Market your business

You will need to market to some extent to attract your target audience. Create a website to enable users to get information about your products online. Your website should be able to give your potential customers an idea of what experience they can obtain by visiting your store. You can promote schemes and discount offers on your website, too.

Social media presence is another way to reach out to your customers. When you engage your target audience online, you boost your chance of making higher sales.

·        Find suppliers

After the completion of initial formalities, you should look for suppliers who will deliver the products you want to sell. You can find suppliers online. Contact them to know the cost. It is always suggested that you choose a supplier who offers you high-quality goods at better prices. Comparison is the key to finding a good supplier.

·        Complete preliminary steps just before opening your store

Do you need any specific equipment to run your store successfully? You can either buy it outright or fund it. Bear in mind the total cost of equipment. At the outset, you will not have much profitability, so it can be hard to keep up with loan payments.

Another thing to focus on is the staff. You will need to hire some people. Hiring does not have to be expensive because you can hire people with the help of newspaper ads. Social media is a less expensive platform from where you can hire people for your business. Make sure your website has a career page, too, from where people could potentially apply for available roles.

The bottom line

It can be daunting to open your own retail store. You might not have an idea of where to start. The aforementioned tips will help you run your business successfully.