Posted by – June 10, 2011
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:
For those who want to make the transition into entrepreneurship, you have two options; you can buy a pre-existing business or start a new one from scratch. To determine which plan is better for you, identify what you want to achieve with your business. If you want to get involved right away and avoid the problems that go along with a start-up, buy an existing business. Some things to consider when owning an existing business include:
- You can start making money right away. Since the business is already established, its existing market is already in place to make a profit.
- If you need financing to expand the existing business, getting a loan will be much easier since you already have a working business model.
- The business model in place may not be cohesive with your ideas.
- The initial investment may cost more than starting your own business.
If owning someone else’s business really isn’t for you, consider starting your own business. Keep this information in mind while you are planning:
- You will be able to do things your way and not have to abide by old practices and protocols.
- There is no way to guarantee your business will be a success.
- You will have the chance to make a niche for your business in the market.
- It can take awhile to see any money since you have to make back the start-up costs.
If you are interested in becoming an entrepreneur but not sure which direction to go in, contact the Winflow Financial Group. Our consultants will determine what the best course of action is based on your needs.