Things to Know When Starting a Retail Business


Opening a new retail store may seem daunting at first glance, but with an organized and systematic approach, you can successfully launch your business. Start with the guidelines below.

Location, Location, Location
Choosing where to operate your retail store is perhaps the single most important factor in ensuring your business' success. Choose a location with high foot traffic that is near non-competing retail stores that have their own steady following of clientele. Research the demographics in the area you are considering to determine whether they fit the criteria of your target customer. Most importantly, take your time considering and choosing your location, and consider all factors.

Merchandising
You're likely to already have an idea of what you want to sell. Choose a market niche and design a theme for your retail store that will help dictate what type of merchandise you put on your shelves. Visit wholesalers or distributors, attend trade shows, or contact manufacturers of they types of items you'd like to carry. Make selections based on your store's theme, your target consumer, and the price range you're hoping to hit. Determine what your markup will be and do the math to figure out what your breakeven point will be (how much volume you'll have to sell in order to stay in business).

Staffing Your Store
Hiring staff is not easy, and it can be even more of a challenge for retail businesses. Accept the fact that you will likely have young people working for you and focus on how to determine whether their interests are in line with your business. If you hire people who are truly interested in your type of business, you are more likely to hire a dedicated employee. Be sure to check references and train new employees thoroughly.

Indispensible Technologies
Retail software, specifically a good point-of-sale (POS) system is an absolute must for any retail business. A good retail software package will make your life as a small business owner much easier. A really thorough POS system will help you manage almost every single aspect of your business, including:

- Inventory input
- Inventory output
- Managerial material
- Staffing
- Organization
- Leadership
- Customer Databases

The ways a POS helps manage these facets of retail business may include:
- Sales tracking
- Barcode scanning
- Transaction processing
- Credit card processing
- Inventory management
- Layaway tracking
- Purchase order creation
- Customer history management

A POS system also has the distinct benefit of helping you determine how much merchandise you are losing to shoplifting and theft. Another technology you may want to consider for loss prevention is an in-store video surveillance system. These systems range from very affordable to very expensive. Having video cameras in your retail store is a very effective method of preventing employee theft. When your staff knows that you conduct and monitor video surveillance in the store, they are much less likely to steal merchandise or cash.