The Essentials For Opening A Retail Business
Opening up any retail business, even a small one, takes a lot of time and expertise. A large amount of research has to be done before it can be decided if the idea merits more research and planning. The following are just a few of the steps any entrepreneur looking to start their own small retail business will have to complete before they can open the doors.
Research is Key
Initial market research is the first step. Can the area support your store? Are there competitors nearby? If so, are they doing well? These questions need to be answered early in the process. When finding an actual retail space, there are several factors to keep in mind. Foot and car traffic in the area is important. So is the composition of the area businesses. Most small retailers need to be in a location anchored by a major business of some kind. Rent is possibly the most important consideration of all, since it will determine sales necessary to keep the business viable.
Know Your Suppliers
Next, the entrepreneur needs to find suppliers that can provide the best possible prices for the goods they wish to sell. Many small retail businesses, like dollar stores, have price ceilings that customers are used to and willing to pay. If a supplier can’t provide stock that can return a high enough profit, a business will have a hard time staying open.
A Plan for Action
All this information needs to be collected into a very detailed business plan. The entrepreneur needs to plan out how to make the business profitable as quickly as possible. They need to figure out how many customers they may be able to draw and how much each would be likely to spend in the store. Financial projections are vital to making a business attractive for financing.
Finding the Funding
Financing is essential for most small business owners. If their credit is poor, there are steps that need to be taken to fix it. Then they need to look into several lending options. Many are out of reach for the average person, and big banks are less likely to give out loans than in the past. Alternative options exist, but learning about all the different unconventional funding sources that may be able to help is a daunting task in itself and many are looking for very specific candidate information. Handing them a generic business plan and simple financial data can often cause long delays and outright rejection.
If financing is finally achieved, all that’s left is designing and building out the store, stocking the shelves, buying interior and exterior signage, running promotions and of course hiring and training a staff. If an entrepreneur has experience, they may be able to think fast enough on their feet to make it to profitability with no ongoing support or training. Everyone else is at significant risk of a joining the majority of small businesses in failure.
A Better Way
If this all sounds a bit intimidating, a better option exists. Discount Retail Store Services completes each of these major tasks with over 20 years and over 3000 store openings worth of experience. They handle site location, lease negotiations, business plan preparation, securing financing, store design and build out, and they provide general business training plus retail concept specific training for owners. They have relationships with a vast network of suppliers to secure the best possible prices. And they offer ongoing training and support for the life of the store, all for a one-time fee. DRSS is an experienced partner which can provide turnkey service to our owners, removing the vast majority of the uncertainty and hassle of getting started in the business of your dreams.