Establishing A Retail Business

Becoming a small business owner can be very exciting! Keep in mind that it’s not an “overnight” accomplishment, and it takes some thought and planning before-hand, as well as persistence and patience in the first several years.

Before you start your retail business, you need to decide on two things…what you’re going to sell and a business name.

If you have created a unique product, then the “What Do I Sell?” question is already answered. If you dont’ have your own product(s) how do you decide what to sell? Studies show that businesses are more successful when the owner has a passion for their product. Think about what you love to do..your hobbies. Is there a product or group of products that compliments or includes those hobbies? Consider these things when making your decision. You’ll be more successful if you feel a passion for the product you sell.

The name of your business comes next…along with a logo design, the name is most important and designing your logo will be easier once you’ve gone through the steps mentioned in this article. Think about what your business will offer, and what kind of first impression you want to give. Write down ANY words that come to mind when you think about your new business….the name you choose will come from those words. Use nouns and adjectives, use words that have caught YOUR attention when you’re shopping. Use these words to help you decide. I’ve even advised people to use a thesaurus and look up the words they’ve written down…to come up with even more words that have the same meaning. When you know that you’ll have an online store, it’s even helpful to use words in your name that people will type into their searches for your product.

Next important thing…..VERY important thing…..write a business plan. It can be simple to start, that’s fine….but the important thing that this does is it puts your goals and ideas down on paper so you can refine them, and LOOK at them! I didn’t do this when I started, and I regretted it TERRIBLY. You don’t have to write a plan that’s suitable to present to banks, or anything like that (at first), just something to organize your thoughts! Your business plan should include a Marketing Plan. If you don’t sit down and think about how you’ll advertise and market your business, you won’t succeed.

Remember that it’s easier to add products than it is to take away….so start with a small inventory of favorite items (use colleagues, friends, and relatives to determine what those are…they won’t mind) and then add products as you go. After you have an established website for your products, you can create polls for new items…to see what’s most desirable.

Once your logo design is complete, start by designing business cards and then some flyers or brochures to pass out, you might even want to consider a printed catalog at some point, especially if you plan to market offline.

To recap…

First step:
Decide on a name

Second step:
Business Plan with a Marketing Plan
(download free templates for each by clicking on the links above)

Third step:
Decide on initial product offerings

Fourth step:
Design your logo

Now it’s time to find a small business advisor in your area. This can be done by calling or visiting S.C.O.R.E. (www.score.org) Your initial call to the advisor should include these questions:

1) Do I need to file a Certificate of Assumed Name for my business name?
2) This is what I will be doing, DO I NEED A BUSINESS LICENSE to do that? If so, what are the fees?
3) Who do I contact to get registered to collect sales tax, and be considered a reseller? How do I go about collecting sales tax?
4) Will you help me with the entire process of starting my business? If not, who can?

Once you’ve spoken with an advisor, what’s the next step? Sit down and write out the goals you’d like to achieve in your first year of business. Once you have this list, separate it out—one to a page. On each page, list the steps you’ll need to take to reach that specific goal. Being organized, and thinking things through is the key to a successful start—and if you ever need financing for your business, it will be very impressive to a loan officer that you have put so much thought into your business.

A WEBSITE

Now you’ve put enough into your business planning to be able to sit down with a designer and create your website. It helps to have a Design Worksheet/Questionnaire. And don’t forget to consider color space and your target market!

MARKETING

What’s a TARGET MARKET? It’s the people who would be most likely to buy your products. If you sell make-up and skin care, your target market is women. If you sell toys, your target market is Moms. Give your target market some real thought….yours may not be what you think….or you may have a wider market than you think! Did you know that marketing candles as an easy way to keep a home smelling fresh suddenly adds single men to your market?

One of the first things you’ll find helpful in the online world is becoming a member of social media groups, internet forums, and small business message boards where others in your business go to discuss business. These can be invaluable to a new business owner for learning the ropes. Don’t be afraid to jump in and ask all of your questions….most of the people on these boards are there for the same reason you are, and may have already gotten past your dilemma…so they’ll be able to help you!

Need a product or service to get your business off the ground? Never forget the old stand-by—Bartering!! Bartering has become even more popular with small businesses than ever. It’s a wonderful way to get the things your business needs (business cards, stationery, catalogs, fliers, etc.) in exchange for your own products!! If you have something to offer, put it out there. Businesses like to have “give-aways” or contests to boost their recognition, so if you have gift baskets, candy, or any items that make good gifts….offer to trade them for whatever you may need.

Consider having a “give-away” yourself. You can print up a flyer and put it in your catalogs that you hand out around town….something simple like-“Purchase $25 or more and get a free candle snuffer”. This will encourage higher purchases.

Don’t forget that there are many people that procrastinate when it comes to gifts!! A couple of days before ANY holiday, you can make up some simple gift bags or baskets (have several on hand), and go out to car dealerships, auto shops, sporting goods stores, doctors offices, etc. and show your gifts…..people can buy them on the spot, and many times…will!! Make sure you have gifts in all price ranges with you!

Start a “gift reminder service”. Have a place on your web site where people can sign up for a reminder service-this can easily be done with special scripts for your website code. When you send out their reminder, put your web site URL at the bottom! The easiest place to go, once they’re reminded, will be the link to your site!

There are some very inexpensive ways to advertise your business on the internet. If you have a website, set up a matching Facebook and Twitter account…and USE them to talk about your business and your industry. Add a blog to your website, and blog about your products and their benefits. Many online newsletters have inexpensive ads available, and if the newsletter subscribers are your “Target Market” it will be worth your while. Purchase “one-way” links to your website from reputable sites that cater to your clientele, be sure to research online with the search engines such as Google and Yahoo to make sure you aren’t breaking any of their rules.

Finally, never stop thinking of new ways to market. Trade shows, home parties, flyers, and blogging are just a few. Using social media sites, blogs, and forums (on the internet)-tailored to your specific market-is a great way to keep your spirits up, and your ideas fresh!