Self-Made: 9 Steps to Setting Up Your Retail Business
While budding entrepreneurs may believe that getting into retail is as simple as a business model and a grand opening, there’s more to process than meets the eye. Prepping your store for a successful start and continued operation is an undertaking that can lead you to the most prosperous profit.
Here are nine steps to setting up your retail business and running it successfully.
Step #1: Construct a Plan
Hardly any concept or business model can succeed without a plan. Consider writing a business plan covering all major and fine points of your business’ development to keep as a reference.
Step #2: Seek Financing
Many entrepreneurs seek out small business loans through banks or brokerage firms to get their business off the ground. Before securing a loan, consider determining the exact cost of your business and how you plan to use your loan.
Step #3: Seek a Space
Seeking the appropriate space for your retail business can make a significant difference. You’ll want to secure a location close to high-traffic areas to attract more clientele. Consider the size, cost per square foot, and facilities that fit your vision.
Step #4: Acquire Store Equipment
After seeking your space, consider acquiring adequate furniture and equipment needed to display your merchandise. Standard supplies may include shelves, racks, mannequins, podiums, counters, and display cases.
Step #5: Establish Your Team
The right team can take your retail business to new heights, and you’ll want a group with excellent customer service skills. Look into each team member’s skills and abilities through interviews and assessments before onboarding.
Step #6: Set Up Your Back Office
Your back-of-house area is just as essential, if not more, than your storefront. The back office is the prime setting for accounting, HR, and inventory management operations.
Step #7: Acquire a Point-of-Sale System
Investing in a quality point-of-sale system is crucial as it will take care of all operations. A POS system can ring up orders, help you manage inventory, and track revenue. That way, you stay up-to-date with logistics.
You’ll want to remember to invest in card readers, barcode scanners, and cash drawers so that you can offer credit card payments and cash transactions.
Step #8: Strategize a Bookkeeping System
Retailers need an accounting and bookkeeping system to balance operational expenses and income to know if they’re making a profit.
Step #9: Set Up Payroll
After hiring and onboarding employees, they’ll expect a paycheck. It would help to acquire a payroll management system that you can integrate with your POS and bookkeeping system to generate checks, start direct deposit, and calculate taxes in one space.
As you navigate through the model, you’ll realize that there are more steps to setting up your retail business than you would anticipate. However, with your business goals in mind and passion in your drive, you may enjoy the finer steps of the process.