Budding entrepreneurs often ask us how to start a retail business. The U.S. Small Business Administration (SBA) has lots of excellent resources – everything from writing a business plan (yes, you do need one) to obtaining licenses and permits to understanding your responsibilities as an employer.

If you want to know how to start a retail business online, the SBA can help you with that, too. (More and more retailers are combining online and storefront operations to reach a bigger audience and better serve customers.)

You can also check out this step-by-step guide that discusses how to start a retail business. It will help you sort through the key decisions you’ll need to make:

• Selecting the right merchandise.
• Understanding your competition and “market position.” Remember, just because you like some product and it appears profitable on paper doesn’t mean there’s a market for it. Or that there’s room for yet another store selling it. Uniqueness is your best bet for success.

• Finding the perfect location.
• Budgeting. The number one reason small businesses fail is money. It takes a greater investment of time and money than you expect to start a retail business.
• Paperwork. What are the laws and local regulations that govern retail businesses in your area?
• Hiring sales associates. Even if you plan to go it alone at first, your business cannot grow unless you hire help at some point. Choosing the right people is as important as choosing the right merchandise.

If you don’t have enough capital to open a brick-and-mortar location right away, consider a kiosk or similar alternative, instead. You can establish a presence and name for yourself, then grow into a larger location (or multiple kiosk locations) later on.

Study your customers. They will be a fickle bunch – unpredictable even when you think you know them well. Listen to them, but pay the most attention to your sales. They’ll tell you what customers really want. Fabulous service and overall experience are critical, but sometimes things go wrong. Learn how to deal with rude customers. 

Face facts. Along with all the functional planning, it’s essential to understand what “real life” in retail is like. Your days at work may be fun or frustrating or both, but you can be sure they’ll be long. Chances of making a profit – let alone a comfortable living – any time soon are minuscule. Can you tough out the early days, keeping your eyes on the prize of retail success?

Find a way to laugh. The ability to see the humor or absurdity in things will help alleviate the exhaustion and, yes, frustration that retailers all deal with. Owning a business is a lot of work, but it should be fun, too. 

The more you learn up front, the better prepared you’ll be to have the grandest of Grand Openings and a bright, profitable future. So become a lifelong student of retail trends and best practices. Success will come only if you continue to stand out from the crowd and delight your customers with great merchandise and even greater service.

Palmer Retail Solutions strives to offer our clients the absolute best combination of innovation, quality, service, and value for our diversified custom store fixtures and merchandising displays. For more information about our designs, retail fixtures, cash wraps, kiosks, or point of purchase displays, visit our website at: http://www.palmerretailsolutions.com.