Is Starting a Retail Business Right for You?
by Carrie Hinkel on March 20th, 2008
With the retail industry taking in $4.5 trillion in sales in 2007, it’s no wonder that more and more people are considering opening their own retail store. But, being a successful retailer isn’t as simple as entering the industry and opening a store. In order to have the best chance of running a successful retail establishment, you should first assess your skills to figure out what your personal strengths and weaknesses are for being a retailer. If you fall short in some areas, don’t worry, you can always take a course, do some research or, even easier, hire someone who excels in that area.
Retailing skills - where does your experience fall?
It’s no surprise that successful small business owners consider themselves jacks of all trades, with experience or knowledge in almost all facets of their business - from customer service to product selection. However, it’s also important to know where your skills are lacking. If you have zero experience in marketing, it’s best to realize that an attempt by you could end up backfiring, leading your business off on flat note. Don’t be hesitant to hire professionals when you know your experience in a certain area is minimal. Here is a list of the basic skills required in order for a retailer to be successful:
* Customer service - A friendly smile and a welcoming atmosphere is important to any retail store. The way employees treat their customers can many times make or break a store. From the extra effort of special ordering to handling customer returns, each situation needs to be handled in a calm and friendly manner - even if the customer is being rude and demanding. If you have a hard time controlling your emotions (especially anger), then maybe hiring a customer service agent to handle these situations would be best.
* Sales - Depending on the store, having a background in sales can be imperative to turning visitors into customers. It’s important to learn the line between pushy and annoying and helpful and informative. While the former can literally drive potentially customers out of your store (and never to return), the latter can make visitors feel comfortable and eager to make a purchase.
* Marketing - Having a great store is one thing, but getting people in the door is quite another. Flyers, in-store events, advertisements and online websites are all important to getting your store’s name in front of potential customers. Professionals with a background in retail marketing can help create the right marketing blitz for your store, getting people excited about what you have to offer.
* Management - Managing a store and its employees is harder than most people think. It’s important to have well-trained workers who are excited about their job and ready to help customers. Do you have experience in training, hiring and firing employees? If not, you may want to hire an employee who also serves as the employee manager. But, management doesn’t stop with employees. Your store - from ordering products to setting up product displays - will need to be managed as well. Otherwise, you could end up with backordered items and a stale store layout.
* Accounting - This is the one area where many new retailers feel in over their head the most. If your only experience with accounting has been balancing a checkbook, you may find that hiring a bookkeeper is money well spent. In addition to regular monthly bills like rent, phone and utilities, you’ll also have product vendors and employees to pay, advertising costs and, eventually, business taxes to prepare. With everything else you have to worry about to make your store a success, you may quickly find that, even if you have the skills, accounting simply takes too much time away from the business.
So, while retailing is by no means rocket science, it’s certainly not as easy as running a lemonade stand either. Before deciding to open up a new store, it’s important to first assess your skills and then determine in what areas you will need to employ outside help. Good luck!