Business Journal

Posts Tagged ‘Starting’

Opening a new retail store may seem daunting at first glance, but with an organized and systematic approach, you can successfully launch your business. Start with the guidelines below.

Location, Location, Location
Choosing where to operate your retail store is perhaps the single most important factor in ensuring your business’ success. Choose a location with high foot traffic that is near non-competing retail stores that have their own steady following of clientele. Research the demographics in the area you are considering to determine whether they fit the criteria of your target customer. Most importantly, take your time considering and choosing your location, and consider all factors.

Merchandising
You’re likely to already have an idea of what you want to sell. Choose a market niche and design a theme for your retail store that will help dictate what type of merchandise you put on your shelves. Visit wholesalers or distributors, attend trade shows, or contact manufacturers of they types of items you’d like to carry. Make selections based on your store’s theme, your target consumer, and the price range you’re hoping to hit. Determine what your markup will be and do the math to figure out what your breakeven point will be (how much volume you’ll have to sell in order to stay in business).

Staffing Your Store
Hiring staff is not easy, and it can be even more of a challenge for retail businesses. Accept the fact that you will likely have young people working for you and focus on how to determine whether their interests are in line with your business. If you hire people who are truly interested in your type of business, you are more likely to hire a dedicated employee. Be sure to check references and train new employees thoroughly.

Indispensible Technologies
Retail software, specifically a good point-of-sale (POS) system is an absolute must for any retail business. A good retail software package will make your life as a small business owner much easier. A really thorough POS system will help you manage almost every single aspect of your business, including:

- Inventory input
- Inventory output
- Managerial material
- Staffing
- Organization
- Leadership
- Customer Databases

The ways a POS helps manage these facets of retail business may include:
- Sales tracking
- Barcode scanning
- Transaction processing
- Credit card processing
- Inventory management
- Layaway tracking
- Purchase order creation
- Customer history management

A POS system also has the distinct benefit of helping you determine how much merchandise you are losing to shoplifting and theft. Another technology you may want to consider for loss prevention is an in-store video surveillance system. These systems range from very affordable to very expensive. Having video cameras in your retail store is a very effective method of preventing employee theft. When your staff knows that you conduct and monitor video surveillance in the store, they are much less likely to steal merchandise or cash.

The initial creativity of your business idea should be maintained throughout and there should be nothing that should interrupt this momentum that could lead you to your dream house in some quiet Indonesian island and retiring young. While this is an ideal, I believe that the core of the business should be – well just business but the problem with start-up companies is that they have so many administrative and set up issues that they often come across a huge wall of red tape – even before they can get their idea up and running and making them money. Why should valuable time be wasted on setting up an office, applying for the various permits, budgeting, hiring office assistants and managers, cost evaluation, rental, space allocation – anyone who has ever tried to set up a business should know about the list of bogging activities that can happen. Profits and the success of any business should not be easy, but its should not be anchored down by the nitty gritty of business setups anymore, not in this day and age of virtual real estates and the gaining popularity of the virtual office worker.

The industry has responded with services that help new and start-up companies gain the extra added advantage with a virtual office. What a virtual office gives you is all the benefits of a physical office but its setup only takes a few days. Some of these companies offer virtual boardroom services, your very own personal assistant who will take your calls and sort through your faxes. Even a prime virtual office address will be provided for your clients to mail you. Anything and everything is granted at a fraction of the cost of setting up a real, physical office. There is no setup on your part and there is no hassle. The ‘rent’ that you pay is simply a fee that upkeeps all the digital systems and pays for things like the shared receptionist and fax/mailing services. Even the most expensive virtual office providers charge an amount that is a fraction to the costs you will incur if you decide to rent or buy an offline real estate space to conduct your operations. The world is changing, and working at home doesn’t mean one is lazy – but one is being prudent, working in an environment that is tactile, comfortable and increases your productivity level.

The only thing you must understand that there is a higher level of discipline to ensure that operations within the business are run smoothly. The virtual distance means that responsibilities can be overlooked and there must be constant communication to ensure that there is as little hiccups as possible when it comes to the daily ins and outs of the business. Create rules and regulations that everyone can agree to – and most of all meet up once in a while. Sometimes there is nothing like a physical handshake and a warm smile of your business partner as you discuss the latest success over a hot cup of coffee.

Starting a retail business is one of the first steps many take into the world of business, particularly for those first leaving full time employment. The retail sector is booming at present, with a new retail chain business springing up every single day. Starting a retail business is a great way to get involved in business, and in generating enough money to keep you in full time employment within your enterprise. But what are the risks associated with starting a retail business, and is a retail business the most effective way to enter the world of business for the first time?

Starting a retail business has cost considerations, particularly relating to stock and premises that many other small business owners don’t have to endure. After all, if you’re intending to sell stock, you need to have stock in the first place and a platform from which to sell, both of which cost money. One way to limit this initial cost burden is to opt for an online dropshipping retail business. Like other retail business owners, you’re still providing goods to customers, except you don’t hold any stock – deliveries are made direct from the warehouse to your customers. Provided you can find a reliable supplier, this can be a great start in the retail business allowing you to earn a respectable margin.

An alternative is to retail over EBay or online auction sites. Business owners choosing online auction sites don’t have to incur the costs of premises or any physical overheads, and can sell from their garage space. This is certainly a cheap way to go about it, but it does limit your distribution capacity and it’s important not to become too dependent on any single auction site for your sales. Nevertheless this can be a great introduction into the world of retail.

It’s also possible, and financially feasible to go the full distance and open up shop premises for your business. This can allow you some form of scale, and you’ll also benefit from passing trade through your shop front. You’ll also be able to store stock on premises, have a base for your business, and close sales throughout the day interacting face to face with your customer. In line with an online retail business, this can be a great way to add revenues to your business and to improve your sales overall.

Starting a retail business is a popular but tricky route into self-employment. While there are profits to be had in the retail industry, any retail business is difficult to establish, and growing a chain takes both time and effort, as well as a good bit of luck. There are numerous risks associated with starting a retail business, but there are also extreme rewards for those that get it right, in the form of an evergreen, sustainable business, ready to scale and grow. However, by making sure you’re prepared to overcome the initial obstacles of getting started, you should be able to quickly realise a successful and profitable business from your retail venture.