Many people would say that this is the worst time to start a retail business because no one is shopping.
That’s not accurate. Despite the global pandemic, retail sales are expected to grow by 2.3% in 2021. Not all of those sales will be online, either.
It’s possible the people can’t wait to get back to normal life again, and that includes going shopping for more things than groceries.
Despite that growth, starting a retail business isn’t easy. You need to make sure that your business is ready to handle a competitive environment.
Read on to learn what it really takes to start a successful retail business.
1. Don’t Start Without a Plan
You can’t start a business like a retail business without a business plan. You have to do the hard work and research to know your audience, your local marketplace, and the competition.
You also have to know if your business model is actually profitable. The business plan will help you think through your idea and make sure you have a viable business.
2. Register the Business
Your next step is to officially register your business. You do this through the secretary of state’s office in your state.
As you go through the process, you need to choose a legal structure. You should talk to an attorney to understand the differences and potential tax issues about the various corporate structures.
You’ll also have to register your business with the local municipality. That may come before or after you choose a location, depending on your municipality.
3. Choose a Location
Your location is going to determine the success or failure of your business. You have to keep in mind your budget and accessibility.
You should know your target market and where they live and work. The location needs to be convenient for them and get a lot of traffic.
You also have to keep parking in mind. If people think that parking is a pain, they’re going to go someplace else or just order online.
4. Work With Top Vendors
Who is going to supply your retail store with inventory? You need to make sure that you have quality vendors who deliver on their promises.
You don’t want to hire a vendor that delivers products late, causing a lot of items to be out of stock. Your customers will see your business as unreliable and go elsewhere.
5. Create the Same Experience Online
Your retail business is going to be known for delivering great customer service. That’s what’s going to set your business apart from all of the other businesses.
It’s important to be able to translate that excellent experience online because that is going to be people’s first interaction with your business.
If you deliver a mediocre online experience, it’s likely that your customers will head to your competition.
You can position your retail business to be successful online by having a clear message and make it consistent both online and offline.
6. Don’t Ignore Social Media
Just because you have a physical store doesn’t mean that you can ignore social media. That’s where most people learn about new products and services.
You can build a strong local following and invest in paid ads that promote your retail business.
7. Set Up Online Directory Listings
How will people find your business if they do an online search? Your business needs to appear in the first few search results in order to get a call or an in-store visit.
An easy way to build your online presence is through directory listings. Search engines like Google and Bing have business listings, which puts your business on a map in search results.
You’ll ensure that your business gets seen by people who are searching for stores near their location.
8. Manage Your Finances
You need to know a lot about business finances in order to be successful. Cash flow is often a reason why businesses close down, and you don’t want to be one of them.
Always take a close look at your income and expenses. You should create profit and loss statements each month and anticipate seasons when sales are strong and weak.
9. Plan a Grand Opening
A grand opening sends a signal to your local community that you are there and you’re ready to serve their needs.
It’s a celebration of the work that went into your business. Plus, it’s an opportunity to get press coverage. You should invite community members, your local chamber of commerce, and local journalists to celebrate your new business.
10. Ask for Referrals
Did you do a good job for your customers? Make sure that they tell their friends and bring people to your business.
You have to remember that customers aren’t going to just refer people to you. You need to ask for those referrals.
You can ask people that you know personally or people who are your best customers if they know anyone. You can also ask for online reviews since this will boost your business listings.
11. Be Ready to Respond to Change
If there’s one thing that’s certain in your retail business, it’s that things will change. Your customers’ tastes may change. Your vendors may have to change. The economy is going to change at some point.
Your job as a business owner is to be ready for any possibility, even another global pandemic. The best business owners understand potential risks and they put plans in place to respond to them.
If there’s a change in customer trends, how will you adjust your product line to stay true to your core business and serve your customers?
These are things that you always need to think about. If you get caught off-guard, you may not be able to react in time.
This Is a Great Time to Start a Retail Business
If there’s ever a great time to start a retail business, this is it. You need to make sure that your business is ready to handle the pressures of a highly competitive environment.
Did you like this article? Wait until you see the other helpful business tips on this site. Go check them out now.
