If you are a first-time retailer, you will be excited and nervous about setting up your retail business. Instead of jumping in, you should be prepared for the challenges you will face. That is the key to running a successful retail business.
Before you start your business, you can look online for Retail Business Ideas. It will not only allow you to select the perfect retail business but also give you an idea about the competition you will face. Remember, when it comes to retail, besides having a brick-and-mortar store, you should also have an online presence so that your reach spreads beyond your geographical area. But, that is something we will come to a little later. Before that, you should know how to set up your retail business for success.
Have a Proper Business Plan
Even the best retail business services will fail without a plan. You should have a business plan in place before you try to get funding for your business or rent space.
A business plan should cover the following:
- Executive summary to spell out your business goals and objects
- A description of your company along with the products and services you want to offer your target audience
- An overview of the products. This should include both a general overview as well as specific products that will help your retail business stand out
- Market analysis that provides details of the trends, the geographical area, SWOT analysis of the competition, retail sales operations, and any other information that allows you to understand how your business will stand in the market
- An organization chart highlighting the management structure and responsibilities of key personnel
- Marketing and advertising strategies that you will undertake to promote your business
- The kind of funding you expect, the initial investment that the business will need, and the funding you will need in the first five years
- Sales projections and balance sheet
- Licenses and permits that you need to start the business
A business plan helps you create a roadmap that you can follow when you start your retail business. It prevents you from deviating from your business goals and objectives. A strong business plan helps you get the necessary funding.
Get the Funding in Place
Without a business plan, it will be next to impossible to get financing from lenders. You can approach banks and third-party financing companies that help small businesses. Remember, this is money that you will need to pay back. So, it is essential that you add it to your business plan.
Ensure you have mentioned how long it will take you to repay the loan so that potential lenders/investors know what they are getting into. It is a good idea to check your credit score and history before you apply for funding. You will get the best terms and conditions if you have a high credit score.
Get the Right Space
When it comes to retail business services, the location can make or break your business. Hence, look for a space where there is high footfall. Of course, such a place will come at a premium but it could be worthwhile if you market and advertise your business properly.
Do not go for a very small or big space. If it is too small, it will feel cramped and restrict your options for displaying your products. On the other hand, if the space is too big, it will appear empty and understocked. Instead, check each space that you have shortlisted to find the right size. Ensure there is adequate storage space for inventory and determine how much it will cost you to make the retail space ready for business.
Get the Right Furniture and Accessories
You need shelves, racks, hangers, podiums, display cases, counters, and other tools to display the inventory. You will also need security tags to prevent theft and shoplifting. Other things that you will need are bags (paper, reusable, or plastic bags), baskets and/or shopping carts, banners, signs, PoS, barcode scanners, and also a retail inventory management system.
Depending on the products you intend to sell, you will need to get the right supplies, furniture, and accessories. So, it is best to sit down and create a list of all the things that you need so that you can keep ticking each item as you procure it.
Hire the Right Employees
You want to hire friendly and professional staff. They should be able to assist customers and provide exceptional customer service. This will increase the likelihood of making a sale. You can easily hire and train people. Make sure you have a training manual and written down dos and don’ts so that there is no scope for ambiguities.
Be very specific when you are placing job ads. Mention the duties and responsibilities, personality traits, and anything else you deem essential to set your staff apart from other similar retail businesses.
Get Your Back Office in Place
Now that you have finished organizing the front end of your retail business, it is time to focus on the back end. This includes software for accounting and inventory management. Make sure you choose specific software designed for small retail businesses.
Look around for Inventory Management For Retailers as that will help you monitor what is selling and what is not. Also, accounting software will keep your books up-to-date and ensures you get a clear picture of your cash flow, expenses, and profits. The other thing that you need to get into place is a payroll system. For greater efficiency, get a system that can be integrated with the PoS system. That will allow you to generate checks, do direct deposits, and calculate the amount of taxes you need to withhold. You will also be able to use this system to pay your suppliers.
Be Active in Your Business
If you want your retail business services to be a success, make sure that you lead by example. Play an active role in not just managing your business but also your employees. Listen to your employees to find out the challenges and problems they are facing. Then look for ways to address them. If your employees have ideas, accept them to keep them motivated.
Learn to delegate responsibilities and give them monthly goals. Have one-to-one meetings with each staff member to see the progress they are making to meet their goals. You can think of incentivizing this to improve performance.
Keep Track of the Inventory
When it comes to retail business, inventory management is essential for its success. Get an inventory management system that offers real-time data and streamlines internal processes. Of course, you should not overlook physical counting as you will have figures to compare with those on the computer.
Put the best practices for inventory management into place and train your staff. Invest in the right software and you will be able to automate the entire process of ordering fresh stock from suppliers.
Build an eCommerce Store
As your brick-and-mortar retail business picks up, you can build an eCommerce store. Provide the option of shipping as well buy online and pickup from the store. It will boost your sales and help you get repeat customers.
Use omnichannel retail software that can integrate the in-store PoS with your online store. By working to create an omnichannel experience for your target audience, you will not only be able to enhance your reach but also improve revenue generation.
In Conclusion
These are the steps that you should take to set up a successful retail business. Investing in the right things, including versatile software, will help you stand out and build your retail business for the present as well as the future.
