If you’re thinking of starting a retail business in 2022, you’re not alone. A record number of e-commerce stores such as Addison Bay were launched last year, while the number of physical stores also grew at a blistering pace.
To stand out from the competition and carve out a place for yourself in this increasingly competitive industry, you’ll want to start off on the right foot. For that, we have what you need. Read our step-by-step guide to starting your own successful retail business.
1. Find a gap in the market
Your first step is to find a niche that offers growth potential without being overexploited by competitors. You will need to apply a forensic eye to your business idea and analyze it from all angles to decide if there is a viable gap in the market. Let’s say you want to sell homemade candles. Is there a specific underserved market or demographic that you can tailor your offering to? What can you do to differentiate your candles from other suppliers? Maybe there is a cultural angle you can pursue? Can you collaborate with artists to give your candles a unique touch? How can you make the company attractive through sustainability? It is essential that your brand stand out from the rest. Buyers need one or more good reasons to choose you over other suppliers.
2. Choose your plan
Next, you will need to decide how you want to sell your products. For a growing number of retailers, e-commerce is the way to go. Selling online means cheaper overhead and less logistics, but it’s not always the best option. If you want to provide a more boutique and upscale retail experience, a physical location might just be your best bet. Consider your target audience and how they would prefer to shop with you.
3. Create your five-year plan
Even the best retail idea will fail if you don’t have a comprehensive plan. You need to have a growth strategy and concrete goals in place for your new business to have momentum and momentum to succeed. Where do you want your store to be in five years? How much revenue do you expect to earn in a year? Are you going to open additional locations? These benchmarks are important not only for you, but also for investors.
4. Secure funding
This brings us to our next point – funding. As you may know, starting a retail business is not cheap. You may need hundreds of thousands of pounds in funding to get your business off the ground. As a new business owner looking for funding, we recommend using a third-party service such as SeedLegals. These services can help you deal with the legal formalities of obtaining financing, while offering many resources to educate you on the subject, as well as expert support to guide you through the process. It’s much easier than going solo. Expert support will dramatically improve your fundraising confidence and efficiency.
5. Fill out your paperwork
As with any business, you will need to go through some red tape before you can start operating your retail business. For starters, this means properly registering your business with GOV.UK and obtaining any business licenses that may be required (this may depend on the products you wish to sell). You should also take out comprehensive business insurance which includes liability insurance to protect your business in case something goes wrong. Getting your documents now will save you a lot of stress in the future.
By following these five simple steps, you can start your retail business successfully and start serving your customers as soon as possible.