Retail stores are plentiful---and challenging to own.
Opening a retail store can be challenging, especially in lean economic times. They are one of the biggest components of the U.S. economy, but making one successful is not always easy. Before opening a retail store there are many things to do and steps to consider---and there are risks involved---but you can reduce these by doing your homework first.
Business Plan
A business plan is a written strategy that gives you information about your market and defines your goals and mode of operations. A business plan helps identify your market and competitors and gives you an idea of projected income. It might outline best-case and worst-case scenarios and give you tools to get through either eventuality. And a well-written business plan can help you find the capital you need to get started, which is important as your enterprise moves forward and grows.
Location
Once you've secured enough capital and have decided on what type of store you wish to open you will need to find the best location. Look for an area that is within your budget but provides the highest amount of foot traffic, and make sure you know the competitors in the area.
Try to find an area in which you will be able to carve a niche. For example, if you want to open a bookstore, do it in an area that is not near a large chain bookstore and where education is valued. Post signs in your storefront so that people know what you offer and can easily find you.
Merchandising
Know where you will get the products you intend to sell and know how much they cost. Plan on attending trade shows so you can keep up with trends, and contact wholesalers, manufacturers and distributors to buy products for your store. Know what your markup must be in order to make money and survive against competition, and order products that are in line with your concept and desired pricing.
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