What are the critical first steps in setting up a retail business?
I want to set up a chain of small retail stores selling food, both fresh and packaged, useful day to day use items, gifts, ice cream, etc. in hotels and stand alone locations. What are the critical first steps I need to take to get this idea off the ground?
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Jun 1, 2015
I recommend this book on exactly that subject http://www.amazon.co.uk/You-Dont-Many-Drugs-Cauliflower/dp/1781488053
You don't get many drugs for a cauliflower" is a publication which allows any type of retailer an opportunity to maximise the performance of their business. It offers an insight into 35 years of the author's experience in the retail sector and the lessons learned. It contains information on how to be successful and also examples and exercises of how to improve the performance of any retail business, irrespective of size or type. It is a workbook which can be used on a regular basis to keep the business effective, efficient and profitable.
May 29, 2015
Consult a lawyer who specializes in retail food. Take a food safety class. The legal requirements will help you understand how you must lay out a store (staging areas, washing stations, sufficient refrigeration, etc.).
The legal issues will also help you assess the costs, initial and on-going.
To make a chain, you need to get one running first. Expect long hours. It will not be easy.
May 29, 2015
See what marketing statement and strategies work for others
Than budget to market your success and failure
May 29, 2015
Who is your competition, and are you in a position to compete successfully with them?
What need would your stores fill that is not being addressed by existing retailers in your market?
In the areas where you address the same need as competitors, why and how would your stores do it better?
May 29, 2015
Akin,
A business plan is a good idea but first you need to do a lot of research. What is the problem you will be solving for your demographic? What I mean by this is, is there a need in your community that your business will be addressing?
After you determine that then you need to research the competition in your demographic area.
These are all questions a lender will want to see addressed in your business plan if you will need to acquire outside funding.
I believe these are the basic first steps you need to take in getting your idea off the ground.
Please feel free to contact me should you want to discuss in more detail.
May 28, 2015
One of the keys to being successful in business is to perform your research. You may want to take the following into consideration in order to complete a business plan successfully as well:
Research product cost, selling cost, competitors, demographics, legal requirements, environmental concerns, management, etc.
Research Business Model - Corporation, LLC, Sole Proprietor Read: http://www.amazon.com/gp/product/B00VJ6ABAI?*Version*=1&*entries*=0
Decide if you may need Business Credit in the future. (Remember your business model may affect future credit opportunities.)
Determine what you want to achieve as an expected outcome with your business.
Develop a financial model based on your products and services and what you hope to achieve annually for your financial projects. (e.g., if you need $1m in revenue / 12 months you need to sell how many of each of your products to receive ______ monthly. A Financial Model will help you to draw assumptions/projections)
Consider branding and marketing strategies.
How does what you have to offer to potential customers add value? What is unique and different about it? Who is your targeted audience?
Planning is the factor that will help you to remain focused and aligned to your vision. You will also need it if you plan on getting financing.
Let me know if you have further questions.http://www.vcita.com/v/keilifecoaching/online_scheduling?staff_id=6628c6e0047b7cb8
May 28, 2015
I have a free e-guide you can download and go through in case you miss any key points: http://lulu.com/shop/c-k-yap/1-million-business-ideas/ebook/product-21920607.html
From experience, because Malaysia has a lot of high and low end retail, you have to achieve high turnover at low prices. There's no other way to survive in today's economy except volume sales and budget prices. Sourcing your product for maximum impact isn't hard with so much choice. I recently bought NUDE mints from Japan - that's a killer product.
May 28, 2015
Hi Akin,
Congratulations on taking the plunge to start your own business. But before you do so, I have a number of suggestions and these are from my own and others experiences as a retail entrepreneur and business mentor.
The first critical steps in setting up any business should be the ideation test. I will take excerpts from my previous answer to a similar question here - http://www.mosaichub.com/answers/question/how-can-i-find-the-exact-list-of-people-and-expert#43823
You may want to answer these questions to begin with;
1. Is this a business that is going to fill a void, solve an existing or future problem?
2. What value will this business bring to the customers?
3. How/Where do you intend to start, continue to reach and serve your customers?
4. Are you ready to commit blood, sweat and tears to make this work?
If you decide to go ahead, by all means, get all the help you can to develop a business plan, but before you commit, you may also want to check out the competition to see what you can learn from them. It may also pay if you can find a good mentor, someone in your trade who understands that particular industry and what it takes to be successful.
Your first exercise should be Test Marketing - Creating a Minimum Viable Product if you are going to be producing the products yourself.
Producing samples of your work - This is what you're going to use to test the market and see if there's a need for what you're going to make, produce, stock or sell. If people can see, touch, try and ask questions about your products, you'll soon understand if it is a workable business idea or not. This will also enable you to understand your customers and their demographics.
During this process, you will also become familiar with who your customers are, where they are, why they want or don't want it and what they willing to pay for it. Who your suppliers are, partnerships, staffing requirements, location etc.
Ensure to minimise risk at all levels - and avoid the burn and crash scenario.
This should help you get started and the lessons you learn from this exercise will inform on a lot of the decisions you make from here on.
I hope this helps. Feel free to connect if I can of further help.
Good luck.
May 28, 2015
Think margin first. What will you sell and how will you ensure it has a sufficient margin to make a contribution to overheads and your salary. There are hundreds of other retailers in your space and a cold start up just can't compete unless you get a location that allows you to charge a premium price and hence you make a sufficient margin.
What is your source for goods? Will you be able to buy at less cost than your competitors? Will you have any unique products? (they command better prices). Is there anything to suggest you can achieve better sales prices than your competitors?
I agree with the other posts, get all this into a business plan, and let the numbers destroy your optimism bias. Once you are realistic you can begin to tackle the obstacles you must overcome.
Also think about seasonality, is there a steady flow of business all year round or is it just 5 months of 12 hour days and then close the concession down until next season?
Last of all start with one site and get it working and profitable before you expand.
May 28, 2015
!. Create a budget. 2. Raise the cash you need to survive for two years including your own living expenses. 3. Location, location, location 4. Start with one location, build traction, reputation, and learn what sells and does not. SWOT--figure it out, write a simple business plan then rewrite it several times. I think 7-11 is already in your business.