Retail entrepreneurship: steps to success

If you are looking to get into retail and run a successful bricks-and-mortar or online business, then there are a few rules you should follow. Here are the top five, as selected by us.

Know the customer

To succeed in your retail business venture, and also to deliver the highest quality product or service to the shopper, you really need to get inside the head of your consumers. What are their motivations, rationale and behavioral patterns? To acquire this knowledge, a few simple things you can do include speaking face to face with them and their friends and family; canvassing shoppers randomly in the mall and other places out in public; running focus group sessions; and even monitoring and tracking peoples’ preferences using new smart technology. The best option is to utilize both technology and face to face methods spazzola rotante.

Perfect the product

Once you’ve got an idea of your customers, and what they want, the next step is to perfect the product. Set up your store and then see how the consumers interact with the product, including the packaging, the sales process, the entire retail experience in fact – in order to get your product just right. You will probably have to do a lot of hard work here – designing and paying visits to suppliers and the like – but it will certainly be worth it in the end; both for your sake and that of the consumer.

Metrics

There are no shortage of consultancy firms in retail that plug a whole host of metrics, there are only two in particular that you need to keep in mind when evaluating the success of your business venture. They are

Gross margin return on footage: this is the primary metric you should use to judge any retail project. Before starting out, and whilst planning your venture, you should try to get an idea of what ‘GMROFF” you will achieve. Use the following formula to calculate it: Gross Margin % x (Sales/Square Feet).

Store built up costs: this is another metric to keep a close eye on when building the store for your retail project. It’s easy to overspend on store built up costs – and it can greatly impact the bottom line of your business later on down the track. It’s calculated in $/Sq Foot.

It’s all in the details

Before proceeding, you really need to get into the nitty gritty of your venture. What location are you going to choose for your store, and what alternatives are available? Read through all contracts and legal requirements. Understand all the taxes that will apply. Plan the layout of your store down to the finest detail, saving store space wherever you can. Finally, research your customer base, and observe, observe, observe, rasoio elettrico barba in Italia.

Become a salesperson

To be a successful entrepreneur you need to be a good salesperson, so waste no time reaching out and creating a network of customers and suppliers, hiring then training your staff, reaching out to consumers, and even making individual sales yourself.