Outlined below are some basic things to consider when thinking about opening a retail store. Hopefully this article will point you in the right direction.
Starting a retail store is a dream for many individuals. You can make this dream a reality, and it’s easier than one would think possible. It does take careful planning though. Using forethought, patience and sacrifice, along with making the right choices, starting your own retail business has the potential to offer many rewards for the entrepreneur.
Choose a Retail Model
Once you know what you are going to sell, you locate your supply source, you have developed a business plan, … then you will then want to choose the retail model for your business. Common retail models are often referred to as a brick and mortar stores, online retailing and non-store retailing which includes orders by phone or mail or door to door sales. You could also do a combination of these retail models.
Choose Your Location
Once you know which type of retailing model you would like to do, the next step is choosing a location to operate out of. Location, location, location may sound like a cliché phrase, but it is one of the most important aspects in opening your retail business, especially for a niche market. You will want to consider what type of items you sell, the price range on whats offered, and lastly which area will have the demand necessary to sell your wares.
You will also need to decide on how to finance your business. A retail store complete with rent, utility and overhead is going to require a lot more upfront expense than a hosted domain on the Internet. Common business financing includes unsecured business loans, secured business loans, private investors and grants. Unsecured business loans require the least amount of risk on behalf of the borrower, but the most risk for the lender, so are extremely difficult to be approved. A secured business loan does require collateral, but often has the lowest interest rates as the risk is lower for the lender. The best way to decide is to determine exactly how much money you will need and how adequate your credit history is, if you have poor credit, you may have to rely on bad credit business loans or private investors to secure your funds.
Choose Your Business Structure
Once you know you have the financing in place to fund your business, you will need to decide if you want to go at it on your own or bring in a business partner. If you have trouble securing financing on your own, it may be necessary to bring a business partner in to share the risk and the cost. There are advantages and disadvantages to each one and is ultimately a personal and financial decision that needs to be made.
The last thing that you need to do is file all required legal and financial documents in order to open your doors, or website, for business. The legal aspects are where many small business owners stumble, and particularly when dealing with art, there are also many insurance aspects you will want to ensure are covered.
Sara Mackey works for www.Connexx.com, an authority in the field on small business financing. Connexx has been connecting entrepreneurs to the start up capital they need for 15 years.