Starting up a new business can be challenging and opening a retail shop can be daunting. You need to think about many factors before you declare to the world that you are open for business. Opening up a brick-and-mortar is a massive step for online small companies, it is a milestone indeed. But coming up with a name for the store is not enough preparation before you dive into the market. There are a lot of important stages that you need to go through before you set up a full fledge outlet. So what are these aspects that you should consider?
First and foremost, it is massively essential for you to know what are you selling, meaning know your product. You cannot go into the marketplace with an undeveloped idea or strategy, you will fall flat on your face. Harsh isn’t it? Well, so is the world. Choosing the correct location holds the most importance in the process of launching your first physical outlet. For instance, opening up a grocery store is a kind of idea that is not dependent on the location for a profitable experience but such shops are an exception. Following up on the finances and measuring the costs is another crucial step that you cannot ignore if you want to have a successful entrepreneurial journey.
Pointless to mention creating brand awareness and adopting the right marketing plans is a crucial stage that you need to work harder on. Last but not the least, knowing your legal rights as a businessman and taking care of your lawful responsibilities such as registering your establishment legally is something you cannot afford to miss or overlook. Without wasting much of your time, allow me to go over some of these essential factors in detail that will not only help you to understand the basics of starting up a brick-and-mortar but also how to make it a joyful journey.
Knowing Your Product is a Must
If you are completely new to the market, then you should know what kind of product you will be selling to your target audience. You need to have a clear goal. Diving into the corporate world with an unclear vision is the worst thing you can do for yourself. You need to identify the gap in the market to decide on the product that you want to sell to potential customers. Furniture, clothes, grocery, beauty products, and many more are some of the common items that are already available in the market. The smartest approach would be to come up with something unique and most importantly that is a solution to the problem of your consumer. Opening up a 100th grocery store in the area won’t be the smartest idea as targeting the cliché niche won’t help you earn the pretty bank notes.
Place your Shop in the Right Area
Choosing the right location should be your primary concern when you decide to launch a business. You need to study the areas carefully and position yourself where there is a demand for your chosen product. The points you should think about while hunting for the ideal place for your outlet include its accessibility and affordability. Being a newbie in the corporate sector, it is given you have a strict budget to follow. It is completely okay to go for a small-size shop rather than going for a three-story right away, bearing in mind that a small-sized location would cost you way less and won’t cause stress in your pocket.
Similarly choosing the right area is also an essential part of the process. Depending on what you are selling, for instance, if you are retailing stationary then opening a kiosk in a shopping mall won’t be a smart decision. However, if you are running one of the clothing stores then it could be a suitable choice, that is if your budget allows it. For a stationary establishment or a bookstore, the ideal place to settle in would be the areas that have educational institutes around. Similarly opening a supermarket in an industrial area would be a decision that might make you regret deeply.
Figure out the Set-up and Running Costs
Finance, finance, and finance! The whole model of your entrepreneurial journey sums up in this little word. Understanding the basic rules of financing and budgeting are extremely important to attain your goals. I don’t mean to scare you but opening up a physical store does include expenses that you should calculate, think about, and then calculate again some more. You need to invest in inventory and other fundamental parts for setting up the store. Buying equipment like a cash register, shopping carts, countertops, display cases, and security systems are expenses that you cannot exclude from your list. These are must-haves for your establishment. Once you have figured out the set-up costs, you need to look over the running costs too, which include rent, electricity bills, maintenance, salaries, accountancy, and legal fees. These are the sort of expenditures that you cannot afford to halt or delay. So, make sure you have enough savings to back up these costs for at least a year or take out a bank loan if you could for your shop.
Branding and Marketing are the keys to your Success
Opening up your outlet in the right location with costs and products figured out is not enough steps to take for your successful entrepreneurial journey. Announcing your arrival to the world is a requirement you cannot afford to postpone or be lazy about. Luckily with tools like digital marketing available, it is quite easy to obtain the attention you deserve. But as much as the corporate world has gone competitive, one kind of advertising plan is not enough. You can surely earn an audience through social media advertising but try to come up with organic ones as well. For example, running a contest in the area or putting up large posters in bold colors with a relatable message which encourages customers to stop and give it a read leading up to enquiring about your location is another way of creating awareness of your brand. The passersby are also an easy target to create more footfall in your outlet. Setting up your business page on Google My Business is another important hack that you should apply to gain identity in the market.
The Legal Matter
Whether you are running a supermarket or a bookstore and no matter in which area you are located. You need to register your venture legally and must be familiar with the necessary legal precautions. Also, if you have employees then you must take care of providing them with a healthy working environment and provide benefits such as health insurance. Moreover, taking care of taxes like a responsible member of the entrepreneurial community is morally correct.
Ending on a Positive Note
People who say “it doesn’t matter if you are situated in a shopping mall or run a bunch of clothing stores in a non-commercial area, you will make a profit if you have a passion towards your goal” are dimwits. While you do require passion, it is not the sole reason your business can flourish, not in a hundred years. There are some logical aspects that you need to take care of before you jump on the bandwagon. I hope the factors mention above, clear your doubts regarding opening up a brick and mortar. Hopefully, you will take each of these under serious thought process and work towards achieving your goal efficiently.