If you want to open a store or if you want to make sure that you get the best result out of your retail adventure then it’s important to understand how retail stores work and what you need to do in order to set up your own.
How to open a store: 6 factors for success
Don’t rush into things
Even before you go and decide on your location, the first step for how to open a store successfully is to make sure that you have a plan that details the cost of your production and then the cost of selling your product. You will need to show any investors the plan that you have and you also need to explain how your plan will be profitable as well. This will also need to include how you plan on funding your start-up costs as well.
The next thing that you need to do in how to open a store is make sure that you get set on your location. It also helps to find what equipment you need and the inventory you need as well, before working out how much money you need to hire your staff. This will all be covered in your meetings with the investors, and this will help you to make sure that your idea is solid.
The basics of business
So now you understand the things you need to go through in order to operate your own business, it’s time to move on to what you actually plan on selling as the nest step in how to open a store. For example, you could sell baked goods, clothing and even your own homemade creations. Anything in the world, really.
It helps to know what you are good at in this instance, because when you do know what you are good at, you can then move on to making the right decisions with your business. The main thing to remember here is that you have to focus on your own talents and interests, as this will help you to go the distance in facing the hurdles of how to open a store.
Know the current demand
When you have settled on your financial plan and when you have decided what products you want to sell, the next step in how to open a store is to then find out if there is a demand for those products in your city.
If you don’t have any aspirations already as to what kind of store you want to own, then try and take a more practical approach. Think to yourself, what is your city missing? Walk around, write down all of the businesses and companies that you see.
Using baking as an example: If you see 10 bakeries then you may want to reconsider your idea of opening up your own. If you don’t see any homemade chocolate or truffle stores, then this could be a viable business idea, especially given the fact that there is clearly a demand for home-baked products.
If that doesn’t sound like something you want to do then consider putting a twist on the type of baking you want to do. This could include weird and wonderful creations, or even innovative recipes. This concept applies to nearly every industry, because if you have a lot of competition then you have to give your customers a reason to choose you.
Your team
If you want to make your business look more professional in the retail sector then things like uniforms and even nametags are a must. Websites such as Imagin Products are great for this because they can provide you with all of the nametags you need and without any difficulty at all.
When planning out your uniform, think about what reflects your brand as a crucial step in how to open a store successfully. For example, if you want to start an innovative and creative bakery, think about having brightly coloured uniforms with a creative logo. If you are going for the rustic look, try beiges and slub weaves, or farmer coveralls. This will really help you to establish yourself as a brand and as a professional as well.
The cost of your products
This is something that a lot of people tend to overlook in how to open a store. You have to consider the cost of your product and whether or not you will be able to get a profit from it. Take the time to try and compare the cost of selling and creating your product with your competitor, and try and find out what you can do to streamline your cost.
A lot of people find it hard to do this because they can’t understand the math behind it, and this is especially the case when you have to calculate your margin. A financial advisor will be able to help you with this and they can also help you to understand the expenses that you will have to pay for as well.
Overheads
The overhead costs you’ll experience when running a retail store include your phone bills, your rent, your marketing costs and more. When you have this number, you will then need to add the cost of creating your product. This is a great way for you to put all of your expense into one number.
It then helps to calculate the number of areas that you plan on creating the product. If you spend 50% of your working week creating your product, you can then take your yearly expenses and divide it by the amount of hours that are going to be spent creating the product. This will then give you a number as to how much expense you are experiencing per hour.
You can then take this hourly expense and find out how many items you need to sell per hour, or per day in order to make a profit. Remember that you will have to have a wage for yourself when you do this, so don’t forget to add that on as well as a crucial step in how to open a store successfully.
Conclusion
Running a store is actually relatively easy when you understand the steps for how to open a store, and know what you are aiming to do — and you would be surprised at how easy it is for you to get the best result out of your experience. If you have never started up a store before then it may also be worth hiring a financial advisor or even a business advisor, because they can then help you to work out everything you need to know without any risk or room for error.
