4 Tips to Open a Retail Location

The prospect of opening a retail location for your business is exciting. It could be the next big step needed to take your business to new heights. There are many details to prepare for, and it will require most of your time to manage the store. It’s important to learn as much as you can about how to operate a retail location for profit. Here are 4 tips to think about before you open your doors.

Tip #1 – Write a Business Plan

You should not open a retail location without a business plan. Unlike an online business where you can lower your overhead and therefore afford to make some mistakes, a retail location can go under if you make a few errors. One way to avoid that is to have a detailed and well thought out plan. Most entrepreneurs associate writing a business plan with asking the bank for money. The main reason for a business plan is to understand your business model, and to direct your business to success.

Tip #2 – Choose the Right Location

It’s all about location when it comes to a retail location. You could have the greatest store, but if it’s in the middle of nowhere, you won’t get as many customers. Choosing the right location is complex, and it involves many issues for you to consider. Some of them include:

• Property taxes
• Zoning laws
• Local population
• Surrounding retail businesses
• Foot traffic

If you don’t have experience in this area, then hire a consultant to help. It can make a difference in the failure or success of your business.

Tip #3 – Understand Your Lease Agreement

If you’re leasing a location, it’s important to understand your lease agreement. You’re not renting an apartment where it may not matter if you have to move out due to a breach of the agreement by you or your landlord. You’re running a business, and if you’re evicted from your retail location, you may lose a good portion of the customers you worked hard to gain in that area. Hire an attorney to review the lease agreement with you, and understand your obligations under it before you sign it.

Tip #4 – Find Complimentary Retailers

You can benefit from the foot traffic from an already established business if it compliments yours. Customers will come to your retail location out of sheer curiosity and to learn more about what you have to offer. The owners of those stores may also be willing to work with you on co-marketing efforts. For example, other retailers may recommend you to their customers for the products that you offer and they don’t. You should do all that you can to network with them and figure out ways to attract their customers to your store as well. Make sure that those retailers are not in fact your competitors.

You should launch a marketing and advertising campaign months before you open your retail location. Don’t just rely on putting up a sign to attract your customer base.