A small retail business can prove to be very profitable for an entrepreneur, especially if the initial start-up is organised correctly after come careful consideration.
Entrepreneurs should start a business by taking into account what they know and are familiar with. Trying to dominate a market that you know nothing about will be no easy feat, which is exactly the opposite of what you want given that starting a retail business is already challenging enough.
Do your research, plan extensively and ensure that you have safeguards for the financial side of things, including start-up fees like advertising and licensing fees.
Amongst all of the excitement of venturing into business ownership, it’s important to plan accordingly. There are numerous requirements, such as:
- Choosing a product or collection
- Finding a store location
- Finding suppliers
- Putting together a business plan
- Registering your business
Even for a small retail business, proper planning is required and these pointers will help in organising your start-up procedure in a better way.
Choose a product to sell in your small retail business
The product that you are familiar with is the one you should focus your business plan around. If you’re massively into fashion and enjoy styling others, then selling clothes is the clear winner. Equally, if wine is your one true love, then sharing that expertise and helping others to enjoy a glass or two is clearly the route you should take.
Once you’ve decided what to sell, the next big consideration is how you’re going to store your products. You don’t want to lose money by being careless and not storing your items correctly, so store your products in attached lid containers for better results.
Retail business location
As seen in most of the cases, retail business space is often leased. When a retailer leases a space, they are expected to pay maintenance of the property and also part of property taxes.
Small retail business space should be spacious enough to display your products, accommodate office space, should be located where it is easy to access and has high traffic area.
To save the pennies, it may be worth choosing a location that is slightly smaller if you can accommodate your stock smartly. Using stackable tote boxes will save on space, plus you’ll be creating an organised space for your stock, so it’s a win-win!
Contact retail supply vendors
Looking for supply vendors to provide stock for your retail business is as simple as looking through yellow pages and contacting other retailers in the area. Except it’s even easier these days as you can access details for retail suppliers at the click of a finger. The digital world has made it easier and faster to get started than ever before.
What’s even better about the online world is that businesses have to be transparent if they are to be trusted. Anyone can leave a review, whether it’s good or bad, so you’ll be able to ensure you are choosing the perfect supplier for your retail business based on what other people are saying.
After you’ve put together a list of potential supply vendors, contact all of them and ask for their minimum opening order. Don’t be afraid to haggle as you never know where or what it will get you.
Create a business plan
In order to know how much you’ll need to invest to get your idea up and running, you will need to do some careful research and put some figures together. Remember that you won’t start making money the moment you start, so you will need to have your finances in order.
Work out what your profit margin will be – and be realistic. That way, you will know exactly what you’ll need for the next three to six months whilst you get your business off the ground.
Creating a well-thought out business plan will enable you to have a smoother transition to becoming a retail business owner. If you can put the plan together yourself, do it. If you’re slightly dubious about tackling such a daunting task, hire a professional business plan writer. There are certified public accountants that can put together a pro-forma statement, which is essentially a document that makes future cost and revenue projections.
Register you business
In most cases, you will need to register your business with the proper authorities. An online legal documentation service can provide you with Articles of Incorporation. Register your business’s fictitious name with the authorities. You’ll also need to apply for an Employer Identification Number and enquire if there are licensing or permit requirements for the resale of your product.
A retail business can soon become very lucrative for any business owner, but in order to make it successful, you must put in the effort beforehand to avoid any unwanted surprises.