Steps To Start A New Retail Business
1. Choose a Business Legal Structure
Choosing the proper legal organizational structure for your business is one of the most important decisions you will make. While it is possible to change your structure at a later date, it can be a difficult and expensive process. Therefore it’s better to make the right decision before you start your own business. The business legal structures may not have much impact on the day-to-day operations of a small business, but it can have a huge impact come tax time when you want to borrow money or attract investors, or in the unfortunate event you get taken to court.
2. Choose a Name for Your Retail Business
Easily one of the most enjoyable, yet utterly important, aspects of developing a new venture is creating a great, original business name. Dreaming up a moniker may come easy for some, but others may struggle with the task. The wrong name can actually be the end of your wonderful business plan.
3. Apply for an EIN or Employer Identification Number
A number used to by the Federal Government to identify a business.
It costs nothing to apply for an EIN, it can be registered online, and most vendors will require a tax id before conducting business with a retailer.
4. Decide What Products or Services to Sell
Choosing a product for your retail store to sell may very well be the most difficult decision you will need to make when starting a retail business. The choices are limitless and the task may be overwhelming at first. Not only should there be a demand for your products, but it must be profitable and something you enjoy selling. Before you commit to a product or product line, consider the following factors while deciding what products to sell.
5. Write a Business Plan
One of the most important things you can do for your business, new or existing is to write a business plan. Businesses have different reasons to write a business plan but the process of creating a business plan will only help the business become successful.
6. Learn the Laws
Knowing what licenses and permits your retail business needs can be very confusing when planning a new business. Each item requires time, energy and paperwork (depending on the government office you’re dealing with) to obtain the proper registrations.
As unpleasant a task as it may be, don’t risk your business shutting down before it fully begins. Conducting business without the proper licensing is a criminal offense in some states, while others hand out hefty fines. Here are some of the more common retail licenses and permits to keep your business operating legally.
7. Location Solutions
Where you choose to locate your retail business will have a major impact on everything your store does. The difference between selecting the wrong location and the right site could be the difference between business failure and success.
Midevco has on staff individuals who have day-to-day practical involvement in the management of store build out costs, coupled with knowledge and background in the construction field. Having negotiated and initiated the amendment of numerous leases, offers-to-lease, subleases, franchise agreements and other related documentation, “Midevco” is completely familiar with lease terminology and remains in touch with the latest legal issues affecting the industry.
8. Buy Wholesale Products
Having a successful retail business depends greatly on offering the right product, at the right price, at the right time. Therefore, it is paramount to the success of your business to be able to locate the best sources for those products. Once you know what products or product lines you would like to sell, it’s time to find places to buy wholesale merchandise.
9. Establish Store Policies
The best time to establish policies and procedures for your retail business is during the planning stages. By anticipating problems before you open your doors, you can strategize how you’ll handle special situations, as well as the normal day to day operations. This helps avoid making mistakes once you’re faced with customers.
Document each policy in a procedures manual. It doesn’t have to be fancy, just a three-ring binder that you can continue to update as time goes by. Make several copies of the manual, give one to each employee and store one near the cash register for easy reference. To begin creating policies, ask yourself the following questions. Decide how you would like for your retail store and your employees to handle these items of business.
10. Hiring the Right Employee
Hiring employees for your retail business will be necessary. It is imperative that employee brings efficiency to your business. Sometime “new fresh blood” will also bring you some great business ideas from their past experiences.
11. Spread the Word
Before you open a retail store, start spreading the word. Create a retail marketing plan, brainstorm sales promotion ideas, begin branding and advertising your retail store. Learn how to use loss leaders, media buys and sales events for the benefit of your retail shop.
Need help to open a new retail business? Contact us and we can help!