Article was written by Herb Kimble
Summary: Retail stores might seem like a profitable endeavor but there’s more to the business than what it seems.
Running your own small business means you would be independent, but it also comes with much risk. Now, the reason you’re reading this is because something about the retail industry has piqued your interest. Maybe it’s the potential financial success that awaits you. Or, it could be that you’re looking to start your own independent retail shop with a recipe that’s been handed down from generation to generation.
Whatever the reason may be, you’ll need a solid plan in order to thrive as a business.
Research Your Competition
Say you’re considering opening up shop in the heart of Los Angeles. With great weather, constant foot traffic, and an abundance of business opportunities awaiting, it might seem like a good idea at first. However, dozens of other entrepreneurs are thinking the exact same thing. But, they might have beaten you to the punch.
Before you designate a location for your store, be sure to visit existing competitor shops to see what type of advertising they use, how they draw traffic, and even look at the special equipment they have. If they’ve stayed in business for years, they must be doing something right. Take notes and don’t be afraid to adopt some of their strategies.
Monthly Expenses Vs. Income
When you first start to develop a business plan, you’ll need to include all equipment and supplies that you’ll need in your store along with an estimate of monthly and yearly projected sales.
To be on the safe side, you’ll want at least three to four months of funds saved up in the case of low sales, but best is to have savings to last you one year. Most likely you would not be making enough money in the first 6 months at least.
Keep in mind that the first year is always going to have its ups and downs. Rarely will a business have immediate success. Be sure that you plan out the monthly costs like rent, supplies, advertising, and others. This way, you’ll have an indicator of what your income goals are along with how well your business is doing.
Advertising your brand is a huge aspect of growing your business. Try and aim for local magazines, newspapers or even local radio programs. Provided you’ve already placed flyers, you can also create a website for even more exposure. These days, most people will check your business out on the Internet prior to visiting. So be sure to always maintain a presence online – either through social media, blog posts, and mentions. Popular review sites are another way to gain proper exposure. You can even place a sign by you register that politely asks the customer to write a positive review if they’ve enjoyed their experience.
This article was written by Herb Kimble. Herb Kimble is the founder of CineFocus Productions, a film production company in Los Angeles and Urban Flix, a streaming network that specializes in multi-cultural content. For more info, about Herb Kimble, visit his Facebook.