Despite the rise of the online store, the world of bricks and mortar is not going to disappear any time soon. Often people think these stores are harder to start, but that isn't the case. With correct planning and following these steps, you can be on the track to starting your own little business empire. The satisfaction of running your business can be immense, and it is a path to financial freedom. Learn how to start your own business today!
1) Find a Market Niche
Research, Research, Research: It’s amazing how many entrepreneurs come up with an idea, start to execute it, and then find out that there’s already someone doing it. The easiest way to avoid such problems is to do thorough research before ever launching your business. Look for markets that aren’t saturated; look at your competitors in the area and see what they’re doing well and what you can improve upon. Use these observations to inform your marketing strategy. If you don’t think you can compete with existing businesses, try setting yourself apart by providing a different product or service entirely. Whatever approach you take, make sure it fits into a larger plan – if your niche isn’t going to be profitable on its own merits, make sure everything else falls into place as well (i.e., keep expenses low). Otherwise all of that careful market research will have been pointless!
2) Create a Business Plan
Before opening your brick-and-mortar business, it’s important to create a detailed business plan. Your business plan will serve as your guide for how you’ll run things like staff management, operations, inventory control, financial planning, etc. Even if you intend to leave day-to-day activities up to others (managers), having an entrepreneurial outlook on your company is still very important. Having a business plan can help you keep focused on what you want out of your new venture. It should include an executive summary, along with what you expect to earn. If you want to get funding, this step is everything. Remember, not every good idea goes over well with investors—so make sure you know all about startup costs and work diligently toward reaching them! All in all, a comprehensive business plan should be crafted based on careful research about your industry/niche, insight into customer needs/wants, and competitive analysis. The more time spent here will reap big rewards down the road.
3) Market Research
Before opening your doors, start by identifying your local competition. If you’re opening an ice cream shop, take some time to browse Yelp or TripAdvisor to see which places are around. Visit other stores in person; it will give you a sense of what works and what doesn’t. Take note of how crowded their location is—while data can be skewed if they have good marketing, it will still give you an idea of whether there’s opportunity in that area or not.
4) Naming Your Business
Have you ever wondered how big businesses come up with their name? While there’s no concrete formula for choosing your business name, there are best practices to keep in mind. First, choose words that describe your brand. For example, let’s say you’re opening an online store selling fun, brightly colored handbags. You might consider Vibrant Handbags or Fashion Handbags. Secondly, steer clear of using words that may change meaning over time—like Google did when they decided to switch from being googol to google. Additionally, try not to use phrases too close to another company’s name if possible.
5) Budgeting For Start Up Costs
Budgeting is essential, no matter how you plan to start your business. If you’re planning on opening a bricks-and-mortar store, however, it’s absolutely essential to budget for startup costs. Many of these are one-time expenses that will have to be paid before opening day—and many others are ongoing costs that will need to be accounted for each month after opening. Identify what these will be before you launch so that you can adequately prepare. Whether or not you decide to self-fund or seek outside capital, consider hiring an accountant at least six months in advance so he or she has time to familiarize themselves with your finances. An accountant should also have ample time to look over all financial records thoroughly before coming up with an estimate of total startup costs that factors in other smaller items, such as furniture rental fees if your location doesn’t include furnishings, building permits if applicable by city ordinance, etc.
6) Finding A Location
Location, location, location. It’s more than just something your realtor repeats to you over and over again; it’s also one of the most crucial elements to starting your business. You can have the most brilliant product in the world, but if nobody can actually get to the store, it is pointless. You have to find a tradeoff between the price of the location and where it is though. It may be the world’s best location, but if it sends you bankrupt, it is pointless. Talk with as many people as possible too before deciding to buy. Many massive financial mistakes have been avoided by simply talking to the locals to see if the real estate agent is being honest. This is likely to be the most important investment your business ever makes, so don't rush it.