How to START a Small Retail Business?
The dream of starting a retail business can easily become a reality. It may take a lot of initial work as you start your own business, but with the right planning anyone can achieve their goals. The following steps to starting a retail business should be used as a guide before you open your store.
But before you work through these steps, let me offer one bit of caution or advice. As a retail consultant, I deal with stores every week who are struggling and on the verge of closing.
The number one reason I encounter as to why these stores are closing is a lack of a retailer at the helm. Retail is one of the easier business to open. And for the person dreaming to have his or her own business, it makes sense to try retail. However, retail is much harder than people realize. As much as I respect a person wanting to "own their own business" I advise you to read a book before you decide. It's called the E-Myth. And if, after reading this book, you still want to proceed, then these are your first 15 steps.
1. Choose a Legal Structure for Your Retail Business
Choosing the proper legal organizational structure for your business is one of the most important decisions you will make. While it is possible to change your structure at a later date, it can be a difficult and expensive process. Therefore it's better to make the right decision before you start your own business.
The most common structure is an LLC. While S corps have a lot of traction as well, the LLC is the simplest structure to use.
You will want to incorporate, though, to protect you and your family in the future in case all does not go as planned.
2. Choose a Name
Dreaming up a moniker may come easy for some, but others struggle with the task. Considering the truncated nature of social media and online searches, you want to be careful to select a name that can communicate who you are quickly. Too often, retailers select a name that is clever to them or just a word or their name, but these become difficult for organic search traffic and SEO. The more it takes to explain your name, the more it will cost you to win business online.