Do you want to start a retail store business? Find in this post a detailed step by step guide to starting a retail store.
Most people believe starting and running a retail business is easy. However, in reality, that is always not the case. To start and run a successful retail store business, you need a lot of work beforehand. If you are serious to make your retail business profitable, invest as much time as possible in planning. It will considerably reduce mistakes for the future.
12 Step Business Plan Guide to Start a Profitable Retail Store Business
1. Decide your Niche
Deciding what kind of retail store you are going to start is one of the most critical aspects of starting a retail business. The most popular retail store niches are mainly grocery stores, specialty stores, and general merchandise stores.
Grocery stores generally deal with products related to the daily requirement of food and non-food items. These stores sell a wide variety of products related to food, beauty, health, etc.
Specialty stores sell products in categories like electrical and electronics. sports, apparel, automobiles, etc.
General merchandise stores often sell products related to clothing, daily food items, home decor items, etc.
2. Choose Products
After you decide what kind of store you are going to start, it is now time to find and decide what products to sell. This selection of products requires a good amount of research on the local demand of people.
3. Contact Suppliers
After product selection, you need to find out the suppliers for those selected products. Remember, purchasing the right product at the right price is extremely critical in successfully running your retail store business. It is like a make or breaks part of the business.
4. Select Location
Location is perhaps the most important aspect of the retail store business. You have to find out a location with expected high footfalls with a budget that you can afford. You need to give considerable time to find out the best possible retail store location.
5. Make the Business Legally Compliant
A retail store depending on the nature of the business activity will require permissions, licenses, and certificates from the concerned authorities. Check with relevant authorities for permissions required to make your retail store
6. Consult with an Accountant
Accounting plays a key role in the day to operations of successfully running a retail store business. You must check with a competent accountant for proper accounting process you need to maintain.
7. Choose Proper Business Entity
Registering your business entity is advised before launching your business. There are several formats for registering your business entity. You can register your entity as a proprietorship, partnership, LLP, Pvt Ltd, etc depending on your requirements.
8. Interior & Operational Tools
The interior of your retail store is an important aspect of a profitable retail store venture. You must consult an interior designer and decide how best the retail floor space can be utilized for merchandising.
9. Hire Manpower
Another key factor for successfully running a successful profitable retail store business is the competence counter salesman and floor sales managers. Recruit people who command good communication skills and possess a customer service-centric attitude.
10. Soft Launch
It is always advised to have a soft launch before you open your retail store to the public. A soft launch is that period where open your store without informing the public. Take as much time as required for this exercise, as it might reduce potential mistakes that can happen when you or your employees actually start interacting.
11. Hard Launch
This is the day you were waiting for a long. You must prepare for the grand opening of your retail store. Invite as many people as you can. This is the first impression you are making of your retail store. Check, everything is in order and the invitees don’t catch you unprepared.
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12. Promote your Retail Business
Finally, do some local promotional activities to let people know what you are selling. Remember one thing while promoting your retail store, you must find out reasons for what customers to visit your store. You must define your unique selling proposition before promoting your retail store business.