How to Start Your Own Retail Business

A retail business is a dream for many, but it can also be a long and difficult process to start. Having an item to sell is just the beginning. There are a number of decisions that have to be made and processes to go through before a retail business can open its doors.

Instructions

1. Decide what type of business you want to be. For some people, getting a general retail business license from the nearest courthouse is the easiest option. But some people want the liability protection of incorporation. Talk to an accountant about what types of protection you may need and what becoming incorporated can do for you. Pay the fees for whatever business type you choose and get your retail license from your county.

2. Pick a name and a location. Choose a name that makes it immediately obvious what kind of business you have and choose a location that will get plenty of traffic. The best types of locations for a retail store are areas where people will walk by every day. Placing your retail store near a larger store, also called an anchor store, will bring foot traffic into your business.

3. Get a steady supplier for your inventory. You will need enough items to sell that the store will always have plenty to choose from. Small retail businesses rely heavily on repeat customers, so avoid disappointing buyers. Always have enough products and plenty of complementary items to choose from. If one supplier is slow to ship your inventory, get your products from two suppliers to make sure the store will always be stocked.

4. Sign up for business insurance. You will need insurance on your inventory, liability insurance in case of injuries and renters’ insurance if you are renting your store.

5. Set up your store. Create a pleasing arrangement in your store to draw in customers and interest them in what you have to sell. Attractive displays, interesting items in the window and a soothing color scheme can all bring in customers and keep them there long enough to choose something to buy. Make sure there is nothing in the store that can injure a customer. Keep the aisles clear of inventory and attach shelving to the wall to avoid injuries and lawsuits.

6. Post your store hours and stick to them. If you start closing early or changing the store hours often, customers will become frustrated. Keep hours that will allow for plenty of customer traffic. This should include weekends or hours after 5 p.m. to allow working people to shop in your store.

7. Advertise your store. The traffic you get will be a combination of foot traffic from people already in the area, car traffic from people who see your sign and people who hear about the store through advertisements. Advertise in the local media by placing radio ads, newspaper ads and TV commercials. All of these methods can be done on a modest advertising budget. If your budget doesn’t allow for all three, choose two methods of advertising to make sure the community knows about your store.