Starting your own retail business doesn’t have to be as difficult as you might think. In fact, you can get started on a shoestring budget with just a little bit of time, patience and hard work to follow these five tips when starting your own retail business.
Write a business plan
The first step in starting a retail-oriented business is writing a business plan. As with any type of plan, this entails coming up with answers for the following questions: what are the goals of the venture? What goods or services will be offered? Who are the competitors, and what are their strengths and weaknesses? How will your product or service stand out from those offered by competitors? Who is your target customer and how will you reach them? What is the startup budget? These are all important considerations when writing a business plan. A comprehensive outline of one’s company needs to be drawn before any operational decisions can be made. One should think about the long term goal of his or her venture before deciding anything else. Considerations like financial resources, time commitment and availability should also come into play at this stage. It would not be wise to start a company that requires being available 24 hours per day if there are young children at home who need attention as well. Writing a business plan ensures that any foreseeable problems are addressed prior to operation.
Map out startup costs and funding.
The first step in starting a retail-based business is mapping out startup costs and funding. This will allow you to determine the most appropriate route for your specific needs. Remember that many entrepreneurs use their personal funds, some people start with low levels of debt, while others may decide to seek outside investors or government grants. The next steps are critical, but they can also be overwhelming.
It can be difficult to know where to begin when you’re looking at all the tasks that need completed before opening your doors for business; however, it’s important not to bite off more than you can chew. It’s best to take things one day at a time and tackle them as they come; don’t try and set timelines too soon because it’s not realistic and could cause you undue stress.
A good starting point is deciding which business structure you want to pursue. The first option is forming an LLC (limited liability company), which protects your personal assets while also providing tax advantages. The other options are a sole proprietorship or corporation. If you plan to keep financing costs low or have no interest in creating new entities or corporate divisions down the road, then choosing a sole proprietorship is probably your best bet for now.
Register your business.
Registering your business can be done by filling out paperwork with the state or city you reside in. A lot of people overlook registering their business because they don’t want to pay an expensive fee, but what they don’t realize is that there are several benefits of registering your business. For example, registering your business will help you avoid penalties and fines if you have unpaid taxes. You also have the option to receive tax deductions for any business expenses incurred. It’s also important to know that when it comes time to register as an LLC, S Corp, or C Corp, this information will already be on file with the appropriate governing agency. Registering your company is one of the first things you should do when starting a new venture.
You may not have the capital to invest in an expensive storefront, but there are still plenty of ways to get your business off the ground and make it profitable. Here are five tips for starting your retail business with limited funds:
- Get online. There are many free or low-cost avenues that allow you to market and sell your products without incurring high start-up costs, like social media platforms, blogging sites, and email marketing. You should also invest in an affordable ecommerce website like Shopify or Big Cartel that offer easy set up options for basic stores. 2. Sell at markets or fairs until you can afford a storefront space.
Find a location or make an eCommerce plan.
The first thing you need to do is find a location or make an eCommerce plan. The best way to get started is by figuring out where your customer base will be coming from. For example, if you’re selling shoes, and your customer base lives in your town, then you should think about opening up a retail store. If they live in the next town over and their commute time is an hour long each way, then it may not be worth it for you because they would never come into the store (unless there’s something else they can do while waiting for their children at school). Also take into account how many people are within driving distance of your business. You want enough customers that are close by so that your inventory stays fresh and doesn’t go bad before it gets sold.
Make a supplier plan.
Selecting your product is the first step in starting a retail business. Narrow down what you want to sell by thinking about things such as: What do you enjoy? What are you interested in? Who do you know that can help make it happen? Make a list of potential products and then pick one.
Next, make a supplier plan. Figure out how much each item will cost, how much inventory you need and when you need it by. Ask questions such as: Is there an up-front cost for the first order? How long does it take to get the item shipped after I order it? How long will I have to wait for my money back if I decide not to buy the product from them anymore?
Market your business.
The first thing you need to do is market your business. The best place for this is social media, so make sure you have an account set up and ready to go. This will be your best way of reaching people and getting the word out about what you’re doing. You should also promote your business by talking about it wherever possible, like at work or with friends and family. Once people know what you’re doing, they’ll be more willing to check it out for themselves.
Set up a payments system.
Whether you’re just starting out or have been in the game for years, it’s always important to set up a payments system. Not only will it make your life easier, but it can also help with branding and customer trust. We’ve compiled some of the best solutions for different budgets that’ll be sure to fit your needs. For those of you on a tight budget, Square is an easy and cost-effective way to set up a payments system. With its low monthly fee, this app will set you back only $15 per month for usage fees–well worth it if your business takes off! It’s so easy to set up as well: sign into Square, click Set Up Your Business from the menu at the top of the page, then fill in your contact information (name and email address). Press submit at the bottom of this page, choose what type of account opening process is right for you (Business Card order number? Credit Card? Social Security Number?), and start accepting payment from anyone with a Visa card.
The conclusion of this blog is that starting a retail store as an entrepreneur is hard, but not impossible. With careful planning and dedication, you can make your dream into reality!
As always, feel free to ask any questions in the comment section below! Don’t be shy–you never know who might be reading ? If you enjoyed today’s post (and hopefully it was helpful!), please share it with your friends so they can benefit from it too. I am truly grateful for each person who has taken time out of their day to read what I have written. It means more than you will ever know.
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