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Setting Up and Running a Retail Store

Updated on November 10, 2016

Store Front Window

Always put your best merchandise in the storefront window for potential shoppers to see as they pass by. Another way to attract customers, is to hang banners or signs advertising sales or great deals that are located inside hanging in the windows or outside of the store altogether. Remember you want to draw in your customers to the store and then, you will want to find a way to keep them there.

Financing Your Store

The following steps can be followed in order to help secure financing for your retail store.

1. You will need to start by writing up a business plan. A short term plan and a long term plan. Be sure that you provide very detailed reasons that your business will not only succeed but, thrive. Positive thinking about your business strategies can be more productive than negative thoughts.

2. It is a good idea to come up with some petty cash, collateral and cash. It is good that you know your credit rating. You will want to be sure that you have the best credit rating possible to ensure that you get the best rate on your loan. Of course, the more collateral and cash you have, the better.

3. The next step would be to pick a location for your store and apply for a loan with a bank, credit union or other financial institution. When you are approved, you are ready to open your store for business. Picking a great location for the store and finding a great price for the store can be a challenge.

4. There is always a possibility that a loan cannot be granted to some applicants who apply for the credit on their own without a co-signer. A co-signer can be a some great financial help if you needed a significant amount of money. When you get started well in your business venture, you can pay them back. That is, if this is what the two of you agree upon.

Operating a Successful Business

Starting and running a retail store takes a lot of hard work but it can be rewarding.
Starting and running a retail store takes a lot of hard work but it can be rewarding. | Source
Always have coupons or specials in order to help drive sales to your store.
Always have coupons or specials in order to help drive sales to your store. | Source

Stocking and Maintaining The Store

The front of the store and the presentation of the store is very important when stocking a retail store. If you have perishable items be sure to rotate them. Always keep your store stocked full of great and trendy merchandise for your buyers at all times. If you sale a lot of a particular item, whenever that particular product starts getting low, be sure to put more of that particular item out on the sales floor. If your merchandise to the front is kept neat and clean appearance at all times, will make for happier customers. This could increase your sales or be a sale buster.

Always keep up with your top selling items so that you can be sure to keep the items are in stock, and never run out. Be sure to keep any damaged product pulled from the shelves right away. Also, look for ways to purchase products in bulk so that you can make maximum profit on the markup.

Maintaining your store is more than just stocking shelves or decorating the store. It's also about cleanliness. To prevent accidents and boost customer sales, you will need to maintain a clean and classy environment to shop always have the store swept, mop and free of all garbage on the floor and from the bathrooms at all times. Keep the floors and isles including shelving, clean and always pull the out of date product from the shelves as soon as you see it.

Have You Had One?

Have you ever owned a retail store?

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Cross-Merchandising

Cross-Merchandising is the process of placing similar items together. The idea is to cause something called, impulse buying. Placing items on the shelves near each other that would be used together, makes shopping easier, and can also increase sales.

Examples:

Place shoe strings and/or socks next to shoes or boots.

Place floats and swimming goggles near swimming trunks.

Place charcoal and lighter fluid together.

For Forth of July, you can group together, mustard, mayonnaise, ketchup, pickles. On the same isle you could have a grill or a box fan.


Advertise Your Business

Use Google or other search engines to help advertise your retail store. It will work wonders but be sure and keep it updated monthly.
Use Google or other search engines to help advertise your retail store. It will work wonders but be sure and keep it updated monthly. | Source

Impulse Buying

It's a good idea to put items near the checkout counter that are Impulse Buys. Impulse items are items that people need but don't think about. If you put it in their face they will get it.

Examples of Impulse Items at the cash register are:

1. Light Bulbs

2. Batteries

3. Shoe Strings

The Cash register is your final chance to entice a customer to make any final purchases. Always keep the front end of your store neat and presentable to help maximize your sells.


Quality Customer Service is Important!

Customer Service should be a first priority when operating a retail store.
Customer Service should be a first priority when operating a retail store. | Source

Sales and Clearance Specials

Its a great idea to run sales once a week to entice shoppers. Also, Keeping fresh and new product inside your store is crucial. Sometimes when merchandise does not sale It's important to run final price clearance sales in order to make a small profit and get rid of older product. Highlight sale items with star bursts or bright signs to showcase your specials.

* Please share your ideas about starting a retail store in the comments capsule located at the bottom of this article.

What is Most Important?


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Price Points!

Pricing is an important part of running a retail store. Below is a list of thing's to remember when setting prices for your store.

1. Always have the correct price and have the price in plain sight next to the item.

2. Use prices such as 2/$10 to help sell more than one item.

3. When placing merchandise on sale be sure and list the original price as well as the sale or clearance price.

4. Do not over price items but at the same time do not sell yourself short. A 20-30% markup is a good standard to go by.

Top Retail Chains (Based On Revenue)

Wal Mart
Target
Kroger
Best Buy
Wal Greens
Costco
 
Home Depot
 
 
 
 
The seven largest income producing retail stores in America in 2013.

Tips For Running a Business

Customer Service is Vital!

The saying, "The customer is always right", should be a fundamental store policy. If the cudtomer has a receipt and the merchandise give them a refund. If the customer has the merchandise but not the reciept either give them a refund or at the very least an exchange. As always in retail or any form of business we must remember that the customer is always right.

* Remember although you can not please every customery you should still try very hard to anyway. The main way that a retail store will make income is through repeat business. Also, the best way to advertise your company is through word of mouth.

How To Open a Successful Retail Store

© 2014 Buster Johnson

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