5 Things You Need to Consider Before You Open a Retail Store

In today’s digital economy the business possibilities are virtually endless for veteran and military spouse entrepreneurs. Still, there is some difference between industries. Retail specifically has become a tumultuous arena for small business owners – for both online and brick and mortar establishments.

Are you considering opening a retail business? There are a few things you need to be aware of before making the leap.

#1: Check Your Expectations

One of the drawbacks of the digital marketplace is that it looks so easy to launch a business and find success. The reality is very different. The retail industry in particular has steep highs and deep lows that you need to be prepared for – online or in a brick and mortar location. You need to be prepared for the process to be slow, and have a plan in case things take longer to get going that you initially thought. Research is your best friend in this stage of business. Don’t be afraid to talk to those who have established stores, and get the real scoop – not the rose-colored view.

#2: Location, Location, Location?

You have choices here! You can be a traditional brick-and-mortar store, and online-only store, or a combination of both. The best option for you really depends on your budget, your goals, you product, and your customer. Don’t skimp on your business plan, and have a growth strategy that matches your unique store. You can always start online and build a store later. Pop-up stores are becoming increasingly popular as well if you just want to dip your toes in the brick-and-mortar process.

#3: Choose Your Tech

Whether you have an online store, or opt for the brick-and-mortar approach – you’re going to need some tech savvy in order to succeed in the retail industry. From point-of-sale systems to inventory tracking, the more you research your options, the more efficient your systems will be. Go beyond just looking at cost, consider training, and opportunities for the systems to grow with your business. If you have to change systems every year, it may not be as cost effective as you think.

#4: Get Your Insurance In Order

Retail stores have unique insurance needs. You need to make sure you understand your requirements for employees, location, vehicles, products, etc. Pay special attention to liability insurance options as well. If you sell a product, and a customer is injured while using it – you can theoretically be facing spendy legal ramifications. Shop around for the best policies for your business. It’s a good idea to review your options with an experienced attorney as well. A little protection before you need it can save you a lot of headache in the future.

#5: Define Your Pricing Strategy

This goes back to the importance of a business plan. Retail businesses of any kind tend to require a bit more of an initial investment. There’s a higher cost of doing business than there is in a traditional service-based business where time and experience is the main commodity. This means you need to understand your margins and your break-even point. Obviously, you want to turn a profit, and not just break-even – but you need to know where your rock-bottom pricing can be, and where your unique product line should fall.

Are you a veteran business owner in the retail industry? What would you add to this list?