Despite the rise of e-commerce, opening a physical retail store remains a fantastic prospect for entrepreneurs to start or expand their businesses. For those looking to dip their hands in the business brick-and-mortar business space. There are real-world considerations for shop owners to remember, especially in our current digital-first world.
Begin with a well-thought-out idea
Whether you’re looking to get into the physical space or expand into the digital e-commerce space, you must set what type of retail store you plan to establish. Common physical retail businesses include bakeries, coffee shops, bookstores, gift stores, apparel stores, craft stores, and bars.
Get a good business banking partner
Having a good business banking partner is as important to your business as anything since they will handle your business savings and investments, and it’s where you get business funding as loans, transfers, and everything in between.
Write a business plan
After creating a solid idea, the next step is to develop a business plan. When writing a business plan, develop a step-by-step outline outlining how your retail store will launch and operate. The business plan needs to include an executive summary, a budget plan for the first five years, a review of the present market landscape, a competitive analysis, a comprehensive explanation of your product or service, and an operation plan.
Register your business
To legally register your business, you must choose a name that fits your brand. Brainstorm different ideas with your management or leadership team and research to ensure that no one else is operating a business under your chosen name. After finalizing your name, you’ll also be required to buy the domain name for your website and general online presence.
After getting your business name, the next phase is to know what type of legal entity it will operate as. Choose between sole proprietorship, limited liability company (LLC), corporation, or a partnership to see how you will be taxed. Your business structure will also determine the legal protections your business will be entitled to, including the ownership structure and how the business can receive funding.
Depending on the five-year budget your business plan outlined, check costs to develop a financial business plan and evaluate how it will be funded. Entrepreneurs can kickstart their business using their own money or business banking loans. Still, since retail stores often necessitate a lot of overhead expenses, you want to take out a business loan or get financial backing from other investors.
Ensure that you have a good financial plan regardless of your funding source. Doing so will help you determine how the money will be used and put up for profitability. Learn more about business banking from your local bank’s website.
As you look for different e-commerce platforms that will be most appropriate for your business, see how they will integrate with your point-of-sale (POS) system, what inventory will look like, the maintenance learning curve, etc.
Find a good location
The ideal location for new business will largely depend on your budget and the commercial space availability in your preferred location. General factors to consider are the presence of competing businesses, potential foot traffic, and available parking. Furthermore, the retail location needs to be accessible to differently-abled customers and include office spaces, restrooms, and inventory storage.