Deciding to open a retail business can be a big endeavour. According to Canada’s Business Service Centre, 80 percent of all retail stores fail within the first five years. To ensure your business is successful, consider the following:
- Skills a retail business owner should possess include a knowledge of a current trends, sales and market demand.
- Pick a store location that is away from the competition. For more details on choosing the best store location for your small business, read Picking a Store Location for Your Small Business.
- Spending up to 6 percent of your overall budget on advertising when you first open is a good way to establish your brand.
- Identify your target market and base inventory orders around it.
- Take training courses in human resources, management and designing a retail space if you don’t possess the skills.
- Hiring security staff and putting in shoplifting measures will save your business money.
- There are two types of pricing in retail: mark-ups and margins. A mark-up is based on the cost of the item and retail clothing typically has mark-ups between 43 and 67 percent. Margins are based on the selling price of the item. Retail clothing can see margins between 30 and 40 percent.
If you need advice about opening a small business, the Winflow Financial Group can help. Our trained consultants can be reached at 1.800.956.6897.
For more articles about opening small businesses, see below:
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