(Newswire.net — July 23, 2018) Salt Lake City, Utah — The rise of the small business is climbing impressive heights as individuals leave traditional jobs to start their own enterprises and try their hand at entrepreneurship. One popular niche is the retail sector, with business owners opening shops in the fashion, electronic, and grocery industries. While the brick-and-mortar days appear to be faltering, retail is evolving instead. If you are planning to open a small retail store, there are several factors you might want to consider that may raise your chances of success.
Structure Type
Before you can open your retail location, it is important that you choose a legal structure. This will be the official business type for your company. Smaller businesses are typically either a sole proprietorship or a limited liability company. However, if you are going into business with a partner, then you might consider a general or limited partnership. If you are unsure about which legal structure will best suit your retail store, you can learn much more about LLC and S-Corp by seeking out professional legal help or by contacting the Small Business Administration for assistance.
Goal Planning
While opening a retail business can be an exhilarating experience, planning both short and long-term goals will likely be necessary if you plan to thrive. It is wise to plan goals before you open your business, especially when it comes to considering the financial side of your business. For example, will you get a loan from a bank or a non-traditional source? Will you rent or buy your retail space? Where will your inventory come from, and how much will it cost? Careful planning can help you understand and organize your financial goals.
Long-term goals may be more of a challenge to set, especially in those first few months when you are trying to stay afloat. However, having these goals can keep you motivated, especially when you are facing challenges. A few long-term goals can include expansion after reaching a certain financial status or hiring a service you might not have been able to afford at first, such as professional tax preparation or web design to give your business site an upgrade. Even if you only choose a few of these goals, they may help you visualize the future of your business.
Hiring Staff
Unless you plan to open an extremely small retail business, how to hire employees will likely be a factor in the process. While staff requirements vary from sector to sector, it is important to consider issues such as how you might handle training, how many employees you will need per shift, how you plan to advertise for jobs, and who will oversee the general hiring of new people. Keeping a set number of criteria in mind while browsing resumes and interviewing potential hires may make the procedure simpler.
Business Licenses and Permits
Obtaining the proper permits and licensing from your local, state, and federal offices is typically a must for anyone opening a brick-and-mortar business. You may want to start this process early on because it can be time consuming and you may run into snags that could delay or disrupt your timetable. Look into which safety permits you will require, and whether state and county licenses will need to be obtained and displayed, depending on what you sell. In general, retail locations that sell food require more specific licensing than other types because of health code restrictions.
Storing Inventory
A business with a physical location is going to require storage space for inventory, so this can be an important factor to consider. While not all storage options are costly, you might want to decide if you plan to store on or off-site. There are several pros and cons to both options. For example, if there is a fire, you may lose all your inventory instead of what you had on site. However, onsite storage can mean reduced costs and convenience.
Another way to offset the cost of storage is to start out with small batches of inventory. While you may run the risk of temporarily being out of stock of a few items on occasion, it may cost you less in the long run.
Maintaining Motivation
Starting a business can be as frustrating as it is exciting, and maintaining your motivation once the initial excitement wears down can be daunting. However, there are a few ways you can boost your enthusiasm. One tactic is to look to other successful entrepreneurs, such as Sjamsul Nursalim.
This Indonesian businessman has made a fortune in the retail business and currently owns several different chains in his home country. His success and business model may inspire you to stay the course, even during difficult times.
Reviewing your goals may also help you regain lost motivation. This can be especially true of long-term goals. For example, if your goal a year ago was to have made enough profit to open a second location, revisit that possibility and remember why it was important to you. The realization may help you get back on track.
Opening a retail business may open doors to personal and financial achievement. However, it is important to look at all the angles before you try to reap its rewards.