The economic downturn has reduced the level of job security considerably. This has meant that there has never been a better time to take a risk and start up your own business. If you have been considering starting your own retail store, then there are lots of different things to consider. This is not a process that should be rushed. If you take the time to plan and prepare, then you have a great chance of long term success.
The first thing you need to think about is funding. As a baseline, a small retail store is likely to need at least £35,000 worth of funding to get started. This will cover small levels of stock and advertising, money for a lease, uniforms, equipment for the shop and some extra cash for labour. It is worth nothing that a small-medium operation is likely to need £50,000 or more, with larger stores needing at least £100,000 to get off the ground.
Do not underestimate the importance of location. You need to get the perfect balance in order to be successful. Sometimes paying a little extra for a prime location is going to be worthwhile. That being said, there are some occasions where just being accessible is going to be all you need.
For instance, a niche store relating to fishing or extreme sports won’t see the benefits that a computer store would, in a town centre. This is because the majority of people use computers, whereas the minority are involved with fishing and extreme sports.
Many first time business owners are delusional. They assume that if they open their shop doors, consumers will come and they will turn a profit. Unfortunately, this is certainly not the case.
In order for a business to thrive a successful and ongoing marketing campaign needs to be put into place. You’ll need to use a combination of print and online media in order to reach your target audience. This might mean marketing using SEO and PPC for online and leaflet delivery and trade shows for offline marketing. You need to reach your target audience and let them know that you are open for business.
Don’t assume that you need to purchase all of your stock upfront. Some suppliers will help you by offering a sale-or-return deal. Basically, after 3-4 months, you send back the stock you have not sold and pay for stock that you have sold. This means that you don’t have to dip into the initial funding that you managed to obtain.
Of course, sometimes buying best sellers in bulk will help you to save 5-10%, which will make a huge difference when it comes to the end of year accounts.
Part of running a shop is merchandising. You need to make sure that the shop flows and that it is laid out in a way that makes people want to spend more. A shop can drastically increase its sales by incorporating point of sale displays and special offers that link products that have a high profit margin. Part of merchandising is ensuring that all the shop fittings compliment the products in the store and help them to stand out.
Alex is a content writer that has been working with a number of marketing agencies since back in 2007. During this time he has taken a keen interest in blogs and has even started some of his own. He has had pieces published on blogs relating to the economy, worldwide global warming issues and sports.