Every store is a little different, but there are some things that every successful retail business has in common. They all have well-developed brands, draw in shoppers both in person and online, and consistently provide a positive customer experience. Read on to find out how to get these and other crucial details right when starting a brick-and-mortar retail store.
Develop a Clear Business Plan
The first step towards opening a successful store is to develop a clear and thorough business plan that accounts for every aspect of the store’s operation. Go beyond the basics of what the store will sell and what customer base it will target to include information about local competitors, pricing strategies, and how the opening and expansion of the store will be financed. To keep loans to a minimum, try looking into options like buying used shelving when old businesses are liquidating store fixtures.
Cover the Legal Basics
There is some legal legwork that must be done no matter what type of business an entrepreneur plans to open. For retail stores, covering the legal basics means:
- Determining the appropriate business structure.
Learning about all relevant regulations.
Registering the business.
Obtaining a business operation license.
Obtaining a seller’s license.
Requesting an employer identification number (EIN).
Obtaining business insurance.
Most store owners cover all of the legal basics well before opening their doors to the general public.
Differentiate From the Crowd
There are few, if any, markets that present no competition. After all, wherever there are people, those people need places to shop. The key to successfully getting a new store off the ground is to differentiate the brand from its competitors.
Knowing the store’s intended audience is a good first step. However, standing out from the crowd requires finding a way to add value that’s absent from competing establishments. Because modern stores are competing not just with large, multinational chains but also online-only shops, this can present a challenge.
In today’s complex retail landscape, added value typically comes in the form of improved customer experience rather than lower-priced or entirely novel products. Create a memorable experience by offering samples, making sure that each customer gets personalized attention, and establishing a clear brand identity that appeals to the target demographic’s unmet needs.
Don’t Be Afraid to Explore Opportunities
While it’s important to have a clear business plan and stick to all of the basics established within it, entrepreneurs shouldn’t be afraid to explore opportunities before settling into routines. In some cases, that may mean working with different vendors to find out which of them offers the best combination of low pricing and reliable service. In others, it could entail setting up pop-up shops in new locations to pique interest and draw in new customers or even partnering with other local business owners to organize events that offer opportunities to showcase the brand.
Remember That Starting a Successful Business Takes Time
It takes years for most new retail businesses to get established, so don’t get discouraged if people don’t start flocking to the store as soon as it opens its doors. Instead, take some time to study the competition, come up with new marketing strategies, increase brand recognition, and explore opportunities for adding value to keep existing customers coming back for more. Eventually, all of that hard work will pay off in the form of an established retail business with a solid customer base and possibilities for future expansion.