Setting up any retail business will involve considerable financial outlay and time. The purpose of this guide is to take you through the steps to get started and provide you with relevant information that will help you plan your business start up.
These are steps for preparing a retail business from scratch:
Market Research
Before you even think about selecting a retail premises, it is essential that you carry out detailed market research. This will reassure you that you are doing the right thing and that there is a market for your new business. One of the main reasons why businesses fail is that they did not research their market fully before starting up. You can learn a lot about your intended business by conducting market research and it may influence the direction of your business. It is always better to know this information before you start rather than after.
Compiling Costs and Selecting a Premises
Deciding where to locate your business is likely to be one of the biggest decisions you will make. This will be influenced by budget constraints and availability of suitable premises.
Finance
This will help you determine what level of sales you will need to generate each week in order to make your business profitable. This is very important and will ultimately help you to decide whether or not to proceed. Knowing what your level of sales needs to be each month will also help you decide how much stock you need to purchase.
Legal Aspects of your Retail Business
You have two options when setting up your own retail business. You can trade as a Sole Trader or you can set up a limited company. Trading as a Sole Trader is very straight-forward, you automatically become a sole trader by starting a business on your own. If you set up a limited company, it is a separate and distinct legal entity and separates you from the company.
Marketing
At this stage of your development, you need to have a marketing plan in place. What is your marketing budget? How will customers hear about you? What image do you want to present of your business?
These are all areas you need to have considered before you open your business.
Following on from your market research you should have a good idea of your customers and you will need to work out the most effective way of promoting your business. Advertising may not be enough, remember there is more to promoting your business than advertising. Other forms include:
- Direct Mail
- Personal Selling – how well you and your staff interact with customers.
- Public Relations
- Publicity – official openings, sponsorships, inclusion in events such as fashion shows, wedding fairs, sports events,
- Internet – website, make sure your website it optimised.
Staffing and Employment Legislation
One of your biggest expenses in your business is likely to be staff costs. There are many issues to consider when taking on staff, if you have never been an employer before it can be daunting so it is worthwhile reading some useful guides