Retail business is a good investment, especially if you know how to manage it well. Before using your hard-earned money to open a store, you must equip yourself with the knowledge of the ins and outs of the business to avoid unnecessary pitfalls. These are just some of the common factors but often overlooked and not taken into context.
Herein are some tips to consider when planning a small retail business. Business is such a thriving industry. Due to its proliferation, the market easily gets saturated thus it’s quite risky to open a new one. Others who just opened stores on impulse without really studying the place or making thorough consideration and assessment often ends up in closed shop and declared bankruptcy. So what are the factors one has to consider to ensure success of the business? Below are some tips:
Know your Product and your Business
This is the most important factor in running a business. You must have complete knowledge of your products and services so that you will have a clearer picture of who your market should be and what can you offer to them. For instance, if your product includes car parts, car accessories, then your potential market are those people cars/vehicles. Thus it’s easy to design promotions and marketing strategies that will benefit them.
Check Out the Location
Another important factor in opening a business is the feasibility of the location. Before you try to establish a store in your chosen location, make sure you have already studied your proposed site. Get facts like demographics, income, economic growth of the area, zoning, etc. Make sure that it is easy to find, easily accessible and has sufficient parking space for your customers.
Different types of products and services have different target market. Target market refers to your proposed client base, the people who are expected to purchase your products and services. When starting a business, have a specific target market in mind. This way, products and services are tailored fit to their needs. Locate in a place where your target market is, so that there is a high probability of increased sales.
For any business, establishments surrounding your proposed site will, in one way or another, affect your business. It is an advantage for your store if you will relocate in a place where there are traffic generating establishments and there is an active trading area. The more people go and pass by your site, the more chances of foot and drive in traffic to your store, thus increase in sales.
Product Assortment and Variety
One factor that attracts a customer is product assortment and variety. It also boosts loyalty and promotes return customers since they know that the products they needed can be found in your store. Customers wouldn’t like incomplete store and will not waste their time in a store that doesn’t offer choices.
Superb Customer Service
Nothing beats getting a superb customer service when shopping. It gives the customer that feeling of being important and well taken cared of when you listen to their complaints and understands their needs. Moreover, you need to educate them of your products and services and be attentive to their questions and answer it truthfully and honestly.
Generally your store should offer the market the comfort and convenience. From the attractive product displays, well-defined lanes, clear prices, sufficient lighting, ventilation, colorful marketing collaterals etc., you must provide these all. Customers tend to stay for longer hours in your store when they are purchasing something, thus they need to feel the convenience of shopping in your store.
To address competition, your pricing should be competitive. Consider the cost of your products and services, and yet your store is still able to make profit when pricing your products. It’s also important to check your competitor’s prices of products so that your price won’t be too far from the prevailing price in the market. Just remember, if customers’ finds the price is right, he/she will be willing to pay.
Manage your Money
To keep track on your business, you need to have a good data recording of your financials. Create your budget, keep an eye on your cash flow, know well your expenses and control your inventory. Thus you know your operating expenses and your profits. Lastly, save, save save. You will never know what the future will bring with all the inflation, recession, growth and all other business ups and downs.
Overall, you need to think outside the box, be unique. Look at it from the customers’ perspective and put yourself in their shoes. Go beyond the extra mile if necessary. If you are able to keep customers coming back to your store, you will have an edge over your competitors that will surely speak success for your store.