If you are keen to start a retail business, there are numerous opportunities out there. However, such a business is highly competitive and if you do not plan it smartly, it could be a risky proposition.
With so many different retail businesses out there, your business must stand out. Here is a guide to help you get started and allow you to open a Retail Business that is poised for success from the very beginning.
Create a Proper Business Plan
A business plan shows the future objectives of a business and the steps a person will take to achieve them. It offers a roadmap so that you do not lose your way. The plan shows what you intend to achieve three to five years down the line and also includes milestone markers.
Your business plan should include the following:
-Executive Summary: This is a description of your business and goals and how you intend to achieve those goals.
-Business Description: This section of the plan conveys your business idea succinctly. You should consider this as the elevator pitch.
-Market Analysis: This part of the business plan explores the current market and also identifies the target market.
-Competition Analysis: As the name suggests, this section of your business plan gives details about your competition, including a SWOT analysis.
-Service and Product Line: Here, you need to talk about the retail products and services that you intend to offer your target customers.
-Operations and Management: This part of the plan concentrates on how you intend to manage and run the day-to-day business.
-Financial Analysis: Finally, the last section talks about the capital required to start, operate, and expand the business.
The Costs Involved to Start the Retail Business
Just having a great retail business idea is not enough. You also need to have money to help your business flourish. This requires you to create a budget so that you realize the costs involved in operating the business. When you know the areas of your business that have high costs, it will become easier for you to tackle them at a later stage.
Some of the costs that you need to budget for include:
-Location: If you want to have a physical place, where customers can come and buy what you are selling, you should ensure that it is a place where there is high foot traffic. Such a space comes at a premium. You would not only have to pay a deposit and monthly rent but also spend money to decorate and remodel the space so that you can customize it to suit the needs of your business. In case you want to just sell online, you need to look into hosting your website as well as creating a virtual store.
-Merchandise: Whether you are selling online or through a brick-and-mortar store, you need to consider the initial cost of procuring the merchandise as well as storing it. Based on this, you can easily forecast monthly costs and plan your budget accordingly.
-Insurance: A retail business needs business insurance. This will protect you and your business should something go wrong.
-Technology: Whether you intend to have an omnichannel e-commerce platform or a physical store, you should have a robust retail POS system. This is especially true for an eCommerce platform as you should be able to easily integrate it. Universal is one such software that is designed specifically for retail businesses. So, it is worth exploring it. Furthermore, you also need the right security to keep products safe from burglary and theft.
-Marketing: The cost of marketing is often overlooked when creating a budget to kick-start a business. You can opt for software that allows omni-channel marketing automation. It will ease a lot of your stress and allow you to focus on creating a result-oriented marketing strategy.
-Payroll: To run a retail business, you will need help with the day-to-day operations. The cost of paying salary or wages and other benefits should be part of your budget. This will be a recurring cost and hence, you should never ignore it.
Funding the Business
Once you know the total cost to start your business, you need to create a plan to fund it. Perform financial analysis to forecast not just profitability but also the breakeven point. When you do a thorough analysis, it will be easier to get financing. You can opt for a business loan through your bank. It can be used to start your business. Make sure you have the paperwork in place before you apply for the loan. Also, check your credit score as the bank will assess it before sanctioning the loan. Your score will determine the interest rate and other terms and conditions.
Registering the Business
Come up with a good name for your retail business and then come up with the right ownership structure, which can be a sole proprietor, partnership, or corporation. Then you have to register it with the tax authority and get the Employer Identification Number. You also need to check with the local authorities to figure out the different licenses and permits your business needs to stay compliant.
Supplier Management
Since you are starting a retail business, you need to have your vendors in place. Make sure you opt for vendors, who offer quality products without charging high costs. You also have to ensure that selected vendors have the right supply chain so that products can reach your store as quickly as possible. Ensure you research vendors well. This will affect the way your customers perceive your business and brand, and that, in turn, will have an effect on the bottom line of your business.
After shortlisting vendors, you need to establish a supplier budget that takes into account the wholesale prices for products as well as the cost of shipping and delivery. Try not to have exclusive contracts with vendors as it can put your business at risk should the vendor not be able to meet your needs. Involve an experienced attorney when you draft supplier contracts so that you set the right terms and conditions and the vendors know your expectations from the outset.
Payment System
Many retail business owners often forget about how they will accept payments from online customers. Thankfully, with Universel, you do not have to worry. It is a 360-degree retail solution that not only enables you to accept online payments but also helps with omni-channel marketing, including Google and social media platforms, inventory management, customer care, and more.
You can even use Universal for contactless in-store payments. It allows you to accept cryptocurrencies and credit card payments. It has extremely low to zero fees on payments, allowing you to maximize your profitability. The payment solution enables you to accept a wide range of online and offline payment methods to quickly process payments and reduce checkout time.
Marketing Your Retail Business
As mentioned already, the retail business is highly competitive, so you need to position your brand in such a way that it stands out. Your marketing strategy will be based on the needs of your target audience. Hence, research is the key to a successful marketing plan.
You can opt for omni-channel marketing so that you focus on those platforms where there is a sizable presence of your target audience. Creating a compelling marketing strategy builds awareness and loyalty to your brand. Ensure that your messaging appeals to your target audience and gets them coming back for more.
In Conclusion
These are the steps that you need to take to start a successful retail business. These steps are designed to help you start an online or brick-and-mortar store.
