My Knowledge on Starting a Retail Business


Have you noticed that retail shops, such as a clothing retail store, are becoming more and more common on the streets, or on malls, or on places where you least expects it. Retailing has become one of the fastest growing trends in businesses today. Business-minded individuals are now opening their own retail stores in all directions. Providing jobs and business opportunities for others.

Truly, retailing has become a huge trend in our world. But retailing is still a business, and businesses always face a lot of adversities, adversities that could lead your business to the depths of the ocean. This is why preparation, planning, and first-hand knowledge on what problems are you going to face when you start opening the doors of your retail store. So here are some first-hand pointers and tips on how to start a retail business.

Location

First-off is location. Location is where you want to see your retail store or shop doing what it does best, selling. So choosing the right location for your retail business is essential for the success of your business.

Just think of this: What good is it if you have a great staff and awesome merchandise but no customers? Choosing a location for your business is very important. Take the time needed to look around and observe where people usually go and where they usually hang-out. You'd also have to check if the location you chose is relevant to the theme of your business. It's pretty awkward if you chose to build your retail clothing store on an industrial location.

Retailers, such as yourself, needs to be where all the happenings are happening. You need to be where the action really is. And the best place where you'll find this is on a mall or a shopping area. These areas are abundant with foot traffic. You'll likely to get your success on these places. But a place with high traffic is also a place where competitors are closely nearby. This is also important.

Before opening your retail store on a location, you should also look on what competitors you'll likely face. First of all, stay-off clear away from those branded retailers or those with a franchise, because these guys doesn't need marketing strategies to get known. If you're planning on starting a retail clothing store, you should check and observer your competitor's strengths and weaknesses. Lastly, check the competitiveness of their prices. If they can provide a lower cost of your stock, then you better leave that place because people won't bother visiting your shop.

Another thing about malls and shopping centers is that these places are expensive. Building a business in these locations requires you to provide more capital. If you're a veteran in retailing and wanted to relocate your shop to these places then go ahead. But if you're just starting out, and are low on capital, then you'd have to pick other location for your business rather than on these kind places.

The most preferable location for a retail business combines the visibility of the location, the affordability of the location and lease terms you can live with. There several phases that experienced retailers go through when choosing a location. One of which is the city.

In choosing the city from which you want your business to stand requires you to investigate these main factors: The size of the city's trading area, population and trends, total purchasing power, retail trade potential for different lines of trade, the number and size of competition, and the quality and aggressiveness of competition. By gaining knowledge on the size of the city's trading area, its population and trends, and purchasing power, you'll know what range of price you'll be able to give out. By knowing the number and aggressiveness of competition, you'll know what first-hand of what they can do and can't do.

Now once you've done that, once you have general idea on that city you'd like your business to stand, choose an area or type of location within a city by observing these: Customer attraction, nature of competition, availability of access routes to the stores, geographic direction, appearance of the area, sales and traffic prospects, and demographics of the area.

Choosing your location is the most important step in making your dream of owning a retail store come true. You should choose a location that has a high traffic count. A new retail store isn't going to have a following unless it's a franchise with a well-known name, if you're independent, you'll need all the help you can get.

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Merchandize

First of all, before buying your merchandize, try and think of a theme for your retail shop. Let's say you want to open a retail clothing store. Now you won't just buy any kind of clothing and put it on your shelf. Choosing a theme can make it a lot easier for you to prioritize those that you want to sell. Retail clothing stores range from formal wear, wedding dress, baby clothes, kid's clothes, urban or street wear, and many more.

The name of your store is also important. It must be relevant to the theme of your business and the stock you're selling. If you named your store Gangstah Land, then customers would expect for you to sell highly fashionable urban and street wear and not some sort of formal dresses.

These are some of the things that you should think about first-hand before actually b. But when you've decided on what theme and what stock you're going to sell, its time for you to find where you're going to get these stuff.

There are a lot of ways to find your own supplier and the most popular way of finding these guys is by Trade Shows and Trade Magazines.

A Trade Show or Trade Fair is an exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products, service, study activities of rivals and examine recent trends and opportunities. Trade shows alone offer multiple opportunities for you to not only spot upcoming trends, but also to network with potential suppliers and hopefully find just the right product source. These events gathers together different people in this business. Wholesalers, distributors, dealers, and retailers just like you are common on these spots.

By being in those kinds of events, you establish yourself as a businessman or woman being in business as opposed to simple consumer. This makes them know that you are willing to make business and work together with other businessman and woman of your stature.

Trade magazines, meanwhile, can be an inexpensive way to find companies with which you want to correspond. Scour them frequently for mentions of any companies that might offer the products you need, then try to find out whether they'll be exhibiting at any upcoming trade shows you can attend. 

Once you've chosen your supplier, its time for you to make business with business. Firstly, make sure you get some samples from them. This'll make sure that what they sell to you is authentic and that these stocks are what you're looking for.

It's also a good idea if you get not just one supplier but 3 or 4 suppliers. This way, if anything happens on one of your suppliers, you won't be that much affected by it. Safeguarding your interest is your highest priority so make sure you have fall backs when things get rough with your supplier.

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Hiring People

While you may have the skills and knack for running a retail business, doing it alone is not enough to get you to your success. Manpower is still needed in this line of business.

Did you know that consumers often form their impression based on sales talk? Men that have good marketing skills are what you need if you want to run a retail business. Look for initiative and problem-solving skills in employees who can ring up repeat sales for your business and keep customers satisfied.

The common skills and abilities that you must look for an employee is that they can describe a product's features, demonstrate its use, and show various models and colors. Thus, you need to hire people with experience in the same area of business like you. Just imagine your looking for someone like you, able to market your stock as good as can possibly can, and if possible, even better than you.

Now there is a question of the number of people you have to hire. So here is a way to know how much manpower you need for you retail business.

• First of all, in hiring your people, you should take not of the size of your store or shop. If you're running a multileveled building, then you'll most likely need a larger pool of manpower. But if just running a single leveled place, then you won't need that much of manpower.
• The second thing you should take into mind is the product you ware selling. Sophisticated products and higher price range needs to be handled by those who are skilled with marketing and personal sales abilities. More personal sales abilities mean more manpower.
• You should also take care on your opening hours and how long does your store remain opened. If you store is open for only 12 hours, then you won't need to have too much manpower. But if your store would run for 12 to 24 hours, then you'll need to have shifting schedules. And this would mean added people on your pool.

Depending on the type of store and your policies, your workers may also handle returns and exchanges, wrap gifts, stock shelves or racks, arrange for mailing or delivery of purchases, mark price tags, take inventory, and prepare displays.