How to Start a Retail Business in Illinois

Starting a successful retail business in Illinois takes planning.

According to the Illinois Department of Commerce, 16 percent of all retail sales in the Midwest are made in Illinois. The state encourages retailers planning to start a business in Illinois to do so through the Illinois Business Portal, which offers detailed business profiles of start-ups like flower shops, bakeries and, appliance stores. The profiles also include an economic summary of the industry in Illinois, details on the business' legal requirements, regulatory requirements, employment laws and other general information.

Instructions

Plan for Sucess

1. Research the retail business in Illinois. The state of Illinois provides prospective business owners with a number of specific guides to starting a retail business in the state. Illinois Business Start-Up Guides are another source of information on regulatory laws, business structure and other details needed to put together a business plan.

2. Put together a business plan. Lenders require a business plan for review as a part of any financial application, and without one, a new business owner cannot apply for government-backed loans, commercial business loans or grants. The State, in partnership with the U.S. Small Business Administration (SBA), offers new retail business start-ups free assistance in creating a business plan. Contact the district SBA office for details.

3. Understand the business' retail customer before picking a location. Wharton Marketing School professors David Bell and Teck-Hua Ho conducted a study of how location and price affected a consumer's store choice and buying behavior. They found that the most successful retailers understood their customer profile the best and chose locations, pricing and marketing to attract them. The State of Illinois' Site Locator offers location information, demographic details and real estate listings to help business owners find the right location for their retail business. Publications like "Chicago Magazine," the online City Search service and local newspapers are excellent places to start researching retail locations.

4. Organize financing for the retail business. Before a new businesses owner can begin to seek capital financing, he must review his personal credit reports, correct errors and adjust credit scores, which helps to gain an approval. Make sure to review all Illinois small business loan and grant opportunities available through the Illinois Business Portal.

5. Include an advertising budget, which is essential in establishing a successful retail business in Illinois. The SBA offers class and mentor programs for start-ups seeking to understand this important factor in Illinois retailing.

6. Set up retail operations and plan for the grand opening. If the business and marketing plans are in place, setting up the retail location, hiring staff and organizing other aspects of opening should be easy.

Tips & Warnings

• Plan a grand opening event that supports a popular local cause to gain free publicity.

References

• Illinois Business Management Guides
• Illinois Department of Commerce: Business Profiles
• Illinois Department of Commerce: "Markets and Resources in Illinois," 2008
• Wharton School of Business - University of Pennsylvania: "How Store Location and Pricing Structure Affect Shopping Behavior," July 5, 2000
• State of Illinois Business Portal

Resources

• Illinois Business Start-up Guides
• State of Illinois Business Site Locator
• U.S Small Business Administration