Starting your own retail business is a very challenging yet rewarding adventure to undertake. There are various ways you can create a retail business from solely trading online to having your own physical store or having both! Many budding entrepreneurs dream of becoming highly successful having both an online store and physical stores that can cater to the world!
But, how do you get there? How do you even start your own retail business? Discover how to set up your own retail business and how you can build it up to reach the ultimate end goal.
Create A Business Plan
A business plan is a written document that outlines a business’s goals, how to achieve them, and a time frame to reach them. This is a vital first step to starting any type of business. Creating a business plan will steer you towards a definitive path to follow when setting your business up.
A plan is also important to have for when you are looking for investors. You can show this plan to them to persuade them to invest in your business by getting a glimpse into your business’s future.
There are two business plans you can create:
- Traditional business plan- this is thorough and ideal if you’re seeking funding from banks or other traditional loan sources.
- Lean startup business plan- this is more informal and is perfect for more fluid businesses that change a lot as they grow.
Find Your Niche And Products
Finding your niche is important to set you and your business apart from the competition. It also aids in finding your target audience as your niche will appeal to certain individuals. Your niche can be defined by its own unique needs, preferences, or identity that sets you apart from the crowd. When you find your niche, it will steer the types of products you sell, the quality of these products, your price range, and how you market your business.
The more unique your niche is, the easier it will be to become the go-to retail destination for the niche market. You can find your niche by listing your hobbies and interests as this is a great place to start, since you will be consumed by your business it’s ideal for you to love it. Plus, it will make your business personable and authentic. You can also research the potential for each niche you think of to see which is more popular. This will help if you’re stuck between a couple of niche ideas!
Once you have chosen your niche, you can base your products on what fulfills the niche and the market that comes with it. This means you can start to pick out products you would like to sell. Ensure you can upsell these products so you can gain a profit otherwise, you can be at risk of losing money.
Develop Your Brand
Creating and developing your brand will help you to stand out from the competition and market your business. Coming up with a branding strategy can also help you figure out your business’s identity. Doing this can attract new customers and build strong relationships with any existing ones. The brand identity is the essence of who you are as a store and aids with maintaining cohesiveness between your products and the feel of your business.
To develop your brand, think about what feelings you want your business to draw out of people. Research the market and see what your biggest competitors are about and how their branding works so you can be unique.
Pick A Legal Structure
Picking a legal structure is vital as it allows you to know what you need to do to be a legal business. You can find out how to collect and report taxes, how you can be paid from your business, and your level of personal liability. There are many different types of legal structures but three are most common for retail businesses. These are sole proprietorships, limited liability companies, and corporations.
If you don’t set up a legal structure, then the sole proprietorship avenue becomes default. It means that you’re doing business as an individual and are not separated from your business in any way.
Limited liability companies are legal structures for small businesses. It protects your personal assets, such as your house and car, in the case of lawsuits or business bankruptcy. It is the most popular choice for small retail businesses and is highly recommended for you to start with.
Corporations are the most structured legally. These have strict tax guidelines, and your business becomes completely new and separate to the government.
Organize Finances
Whichever legal structure you decide upon, it is highly critical to separate your business finances from your personal ones. Setting up a business account with a bank of your choice needs to be done from the start. This is because having one will make it so much easier to track your expenses and income, so you can stay on track financially and bloom into success. It will also help when it comes to filling out your taxes as your business figures will be clear.
Launch An Online Store
Launching an online store is the first step to serving your customers as it’s the most popular form of shopping today. Plus, it is easy to manage by yourself at the start and keep track of. An online store can help with attracting a larger customer base as it can be accessed statewide, and even worldwide!
To begin your online store, you need to select an e-commerce platform. The majority of e-commerce platforms have templates and tools to help you run your store and design it to make it look appealing to you and your customers. You can use platforms, such as Shopify, to begin with as this is easier to use and is a basic point of sale. This ensures you can start to get orders out the door!
When shipping your orders within your state, to different states, or even worldwide, think about the best way to transport the products. At first, you may only use a delivery service to deliver a small amount of orders. However, when your business grows, you will find larger amounts of orders to fulfill and you may need to send them in bulk. To do this, you may need to seek transportation for your goods, especially if your products are going worldwide. Ensure your products are stored safely and correctly for wherever they are being shipped to. For example, if going to Europe, your products should be stored in Euro pallets. When you reach this stage, look for Euro pallets for sale so you can legally and securely transport your goods anywhere within Europe!
Select A Storefront Location & Tailor It To You
After a while of trading online, if you want to, you can get your first-ever physical store. This will happen slowly over time and if it’s your business goal, then it can be achievable. You could wait until your business is flowing online and you are financially able to through the profits or get there quicker with funding. You may not want a store and that’s okay, you can continue trading online only!
Once you have the money for a store, you can select a storefront location that works for your business. Narrow down your options by focusing on practicality and convenience first. Then choose a store that you can easily reach and commute to daily and scope out the competition to see if you will stand out from the crowd in that location. You need to stand out and attract customers in that area easily so that your store can be successful.
Once you’ve chosen a storefront location, you can personalize your store to you and the business’s brand. Decorate it in the best way that fits these elements and ensure you think about product layout. You need to have a system where customers can easily browse every product but that also makes them view the whole store. For example, you can put a few bestsellers at the front of the store and some popular products at the back, so customers are enticed to browse the whole store.
It is also important to identify where your point-of-sale system (POS) will sit within the store too. It needs to be in a place that doesn’t block the flow of the store but that’s also easily located.
Hire And Train Staff
Once your physical store is set up how you like, you will need to hire and train staff. This is a vital step as it allows you to put your focus where it’s needed most, instead of running everything by yourself. Plus, you can’t physically be in the store every day from open to close while managing your online business too!
Having staff will release pressure on you and boost your business’s efficiency when it comes to the physical store. It can be difficult to hire the right staff, manage them, and ensure your business can pay them too. It is best to do some in-depth research before hiring and training staff and speak to a financial expert to make sure you are ready for this stage.
Create A Marketing Plan
Throughout your business journey, it is important to create a marketing plan. This plan should include everything from your pre-launch initiatives to your store’s opening and first few weeks post-launch (this applies to either online or physical stores).
The best way to begin marketing your business is via social media. Set a business account on multiple platforms, such as Facebook to be included in local groups, LinkedIn to network with other businesses and seek advice, and TikTok to capture the attention of millions of potential customers worldwide with fun video content. TikTok is the leading social media platform and can be an excellent and easy way of boosting your business and getting it out there!
Starting your own retail business takes a lot of time and effort but can benefit you in the long run, if you have the passion and strive for it. It involves many steps and years of planning to get set up, trade, and grow your business. However, if you have the patience and drive, you can be on the path to success when your business is running and reap the rewards of all your hard work!
