So You Want to Start a Retail Business: 8 Steps to Get You Started
The retail business world has changed dramatically in recent years, especially with the advent of online shopping and Amazon. Does that mean you should give up your dreams of opening your own brick-and-mortar store? Absolutely not! There are plenty of reasons why you should still open a brick-and-mortar store, even in the digital age we live in now. If you’re thinking about opening your own retail business and want to start by learning how to start a retail business, here are some steps to get you started on your path to success!
Define your target market
This is the most important step in any retail business. If you don’t know who your target market is, then chances are that you won’t have much success in attracting customers. Your target market needs to be specific and well-defined. The easiest way to do this is by asking questions like Who will be my customer? or What type of customer am I looking for?
Conduct market research
Research is important because it helps you know if your idea is viable. Before getting started with the business, there are two things you want to do first:
1) Test out your product or service in the real world and
2) Gather feedback on whether people would be willing to pay for it. This will help you assess whether or not there is enough demand for what you are planning on selling.
Narrow down your target market even more
The millennial generation is one of the largest, most diverse, and demanding demographics in recent history. There are an estimated 75 million millennials in the U.S. alone and this generation’s spending power is expected to reach $1.4 trillion by 2020! With such a large and influential population, it’s no wonder retailers have been going after the attention of this demographic for years now with plans that target their needs and desires. And because they make up more than half of the U.S.
Research possible business locations
- Consider what kind of location would best suit your needs. For example, consider whether it would be better to rent out or buy the space you need. A retail storefront is the most obvious choice, but if you’re looking for more flexibility, you might consider other options such as a kiosk at an outdoor mall or renting space in another store.
- Figure out how much square footage you’ll need and how much that will cost based on your region and the type of business you’re opening.
- Create your business plan
- Research Your Industry
- Contact Local Government Agencies
- Register your business name
- Open a Bank Account
- Decide if you want Employees or are going to work as an Independent Contractor
- Determine your Market Niche
- Make a List of All Necessary Items
- Narrow Down Your List of Products, Services, and Prices
- Create Your Marketing Plan
- Find the Right Location for Your Store .
Find a co-founder or partner
It’s hard to start anything new alone. When you’re starting a business, having someone who shares your vision and has the same skills as you is crucial. It will make the process much easier and it might even help you avoid some pitfalls that could otherwise happen.
Start looking for potential partners by asking friends or family if they would be interested in joining you in this venture.
Write your business idea on paper and start with an LLC
Step 1. Write your business idea on paper.
Step 2. File an LLC with the Secretary of State (or equivalent) in your state.
Step 3. Create and file articles of incorporation, which sets out the terms of the corporation and its management structure.
Register as an LLC and make sure you have the right insurance coverage if you work from home
If you work from home, you’ll also need to register your business and make sure that you have appropriate insurance coverage for any potential accidents. This can usually be done with the state’s Department of Labor website, or by speaking with an agent at one of the many insurance companies in your area.