If your brand is a mouthful, it's probably not the best name for branding purposes. Uniqueness — Don't opt for a name that's close to that of your competitors. Look for something original and authentic that encapsulates your business. Try to draw your own inspirations for names without looking at other brands. It's also important to check that the name isn't already trademarked or taken.
You can start with a quick Google search for the name before taking a deeper look at state databases of unavailable business names. The name doesn't determine the success of your business, so it shouldn't be the focus when opening a retail store, but you do want to at least put some thought into naming your business entity. Cover your legal basics Covering your legal basics includes choosing a business structure, following any regulations and obtaining the right licenses and permits.
A seller's license. It's recommended you check in with your state's government office to determine whether or not you need it. For retailers, however, becoming a sole proprietor can be risky. Taking on a business structure that doesn't place liability solely on the individual owner is a good way to mitigate your risk, should the business fail. It's common for retailers to become limited liability corporations LLCs or corporations.
Both of those options help limit personal liability. Find the right location If you're opening a brick-and-mortar retail business, you need to focus on finding the best retail space for your business. The retail real estate business is very psychological, and the price [of real estate] is usually one of the last considerations for most retailers. While it can be tempting to try to pick a cheap location and hope your business generates a steady flow of customers through its marketing efforts, sometimes, there's no substitute for being in a busy part of town.
Picking a location downtown might be pricier than an option a few miles away from town, but the pricier option might bring in thousands more customers per year.
When determining a location, find where your customers spend their time. If your customers live primarily outside of town, opening a downtown location might be more expensive and bring in fewer customers. Try to place your retail location in an area where your target audience spends its time.
While that tip may seem simple, businesses often focus on finding a location they think is fantastic, rather than trying to narrow down where their target market resides. You may also have a location with additional space to store inventory. If you expect to have a lot of inventory, because you sell a lot of items at affordable prices, you may want additional space.
Other stores may sell a few high-end items and don't need a large space to keep inventory. Keep inventory in mind when selecting a location. Create a personalized experience Finding success in retail often comes from adding value that competitors are not. This frequently comes in the form of personalization. Many retail stores find success by allowing customers to try the products. Whether it's free samples at a food shop or dressing rooms at a clothing store, brick-and-mortar retailers can offer personalized experiences like that, while online retailers struggle to find the same level of personalization.
Check out our best picks and reviews of software that can help. Personalization and a quality in-store experience are important ways to consistently attract customers. To define your values, think about all the people your company is accountable to, including owners, employees, suppliers, customers, and investors. As you make a list, your core values should start to emerge.
Once you know your values, you can pen a mission statement. Your statement should explain, in a convincing manner, why your business exists, and should be no longer than a single sentence. Your vision statement, unlike your mission statement, can be longer than a single sentence, but try to keep it to three at most. The best vision statements are concise. Finally, your company overview should include both short- and long-term goals.
Short-term goals, generally, should be achievable within the next year, while one to five years is a good window for long-term goals. Make sure all your goals are S. If you choose the wrong market, or the right market at the wrong time, you may find yourself struggling for each sale.
Market analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it. This is why market analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it. Thorough research supporting your conclusions is important both to persuade investors and to validate your own assumptions as you work through your plan.
How big is your potential market? Potential market is an estimate of how many people potentially could buy your product. Use your unique selling proposition as the basis for the marketing message you will deliver to target customers. Describe the merchandising strategy for your store; for example, how you will arrange the merchandise to showcase high profit margin items and provide easy access to impulse purchases.
Personnel Plan Forecast your staffing requirements by day of week and time of day. Project any seasonal variations as well. Describe how you intend to train your employees so they will consistently deliver superior customer service -- a key success factor for any retail business.
Financial Forecast Prepare a month-by-month forecast of revenues and expenses. Build a revenue model that reflects the sales process with measurable variables you can track over time. The structure of a basic business plan outline can vary, but the best business plans typically include the following elements: 1.
Executive Summary This is your elevator pitch. It puts the big takeaways in a nutshell, providing people with quick insights on all key components of your business plan.
You may find it easier to write the executive summary in the end when you finished the rest of the business plan. Consider including a strong hook or a pitch deck that captivates people, effectively getting your foot in the door. This is an opportunity for brand storytelling, which may help potential investors forge emotional connections with your business and its ideals.
Also, it can be a strong motivator for you to refer back to in tough times when you feel yourself plagued with doubts or conflicts about where your business is going. When creating this component of the plan, think about the following: What is your business model?
Who is your audience and how are you trying to serve them?How do you plan on reaching your customers? Uniqueness — Don't opt for a name that's close to that of your competitors. You'll want to start by figuring out what type of store you want to open.
Other stores may sell a few high-end items and don't need a large space to keep inventory. Sales can be a good way to draw customers into your store. During the selection process research prices, the payment terms, how quickly they can fulfill re-orders and whether or not you can get credit, suggests The Small Business Association.
According to Blair Smith, a financial consultant and former banker, it may not be wise to dump all of your cash into a new business. Personalization and a quality in-store experience are important ways to consistently attract customers.
What is the projected growth of your business? A seller's license. If so, a one-page business plan might suffice.
Who is your audience and how are you trying to serve them? To define your values, think about all the people your company is accountable to, including owners, employees, suppliers, customers, and investors. You may find it easier to write the executive summary in the end when you finished the rest of the business plan. Who will be on your team? Product description and differentiation.
Take time to determine your hiring process. Address Marketing Another important component of your business plan is defining how you will market your business to new customers and retain old ones. When determining a location, find where your customers spend their time. Taking on a business structure that doesn't place liability solely on the individual owner is a good way to mitigate your risk, should the business fail.
Generate an idea and business plan The first step to opening a retail store is coming up with your idea and developing a business plan. Opening a store on a Tuesday at 2 p. Check out our best picks and reviews of software that can help. How do you calculate your pricing?
The option might be doing nothing at all.
Create a personalized experience Finding success in retail often comes from adding value that competitors are not.