Opening a new retail business can be challenging. With the retail industry being competitive these days, you need to be careful and ensure that you set your business up for success. Here are seven things you should do, to enable success for your new retail business:
1. Offering the Right Products
There are several things to consider when it comes to the products you store. Do you store products that the locals would find useful? Does your target market shop for these products frequently? These questions can help you answer which products would lead to a greater footfall in your store.
At the same time, consider also that some of your products may not be selling as well. Doing regular inventory can help you keep track of which products are selling and which aren’t. If a product isn’t selling that well, then you should consider removing it from your inventory, and replacing it with something that sells more. You can also think about asking your customers about the products they prefer. Customer surveys, or directly asking customers questions, can help you discover what they are looking for.
Think about attending trade shows, as a way to discover now products you can store. You should also consider doing a competition analysis, to ensure that you offer better products, at competitive prices.
2. Business Model
More and more retailers are turning to selling their products online. There’s a need to offer more than in-store purchases, to compete against other retailers. Even if you can’t compete at prices many overseas brands offer, aim for clients who want to buy from Australian brands. You’ll find that many people would be willing to pay a premium, to support a local brand.
If you find that your retail store is doing well, consider researching a different location for it, at the same time. Targeting areas that have similar customer bases, can open up new locations where you can open profitable retail outlets.
3. Marketing Strategies
Retailers who are successful, are often also in the habit of reviewing their marketing strategies. You’ll need to keep up with current market trends, how people make purchase decisions, as well as how competitors price their products. You should also ask customers about how they found out about you. Digital marketing, as well as direct marketing, cab both help you to reach your target market, and raise awareness about your business.
Consider doing your research on your competition as well. Is there anything you can learn from them? You should also try to learn from their failures, as a way to avoid making them yourself. What kind of marketing strategies worked for your competition, and what failed?
You should also try to learn as much about your customers as you can. Create buyer personas so you can create more targeted marketing campaigns. Seasonal trends are another thing to watch out for. They can affect your product prices, as well as how customers shop. Seasonal discounts and offers are a great way to entice customers to buy from you.
Social media marketing can be key to getting your business noticed. Develop a social presence, and engage with your customers as often as you can. Should your customers offer valuable feedback, consider implementing those changes in your store.
4. Checking Your Systems
Your inventory management system should be up to par. Even if you’re ordering from multiple vendors, there should be no hiccups in your product procurement process. You should always document and note down any inventory you receive. This can be done using an inventory management software, which frees time that you can use to manage your business.
Consider providing customers with multiple payment systems. Offering online payments frees up time from invoicing and billing. Set up systems that collect money automatically, from late payers. You should train your employees to keep up to date with the products you’re selling. They should prioritise the customer’s experience.
5. Check Your Capacity
If your business is dealing with queues outside the door, then the time may have come to implement some changes. You may need to hire more staff, or stay open longer. You could need to open more cash registers as well. The idea is to ensure that the customer has a pleasant and hassle free experience.
Should you not be making as much profit as you hoped, then you may need to check your breakeven point. Lowering overheads or raising product prices, are some ways you can make a higher profit. Using a cash flow management system to monitor your income and expenses, can help you better manage your finances.
6. Key Performance Indicators
To ensure that your sales forecasts are on track, you should measure your actual sales figures against them. Should your figures be inaccurate, it could be time to rethink how you predict your sales figures. You should also monitor your fixed costs, to ensure that you’re staying in budget.
Remember that every industry has a certain markup that’s accepted for the products. You should be achieving your industry standard. If this isn’t the case, you should consider ways to increase your profit margin. There are several KPIs that can affect how you run your retail business. They can help you monitor how well you business is performing, especially when compared to others in the industry.
7. Be Current
It’s becoming increasingly important, to find ways to connect with your customers. Social media is a great way to achieve this. Aside from using your social media accounts to engage with customers, you can also think about writing blog lists relevant to the retail industry. Try to use your consumer data to send personalized emailers, as these can help you get returning customers.
You should also follow consumer trends, especially if they pertain to the products you offer. The more you know about what influences your customers to make purchasing decisions, the better you can target market to them.
Opening a new retail business is easier than setting it up for success. From learning more about your customers to target market to them, to ensuring that your inventory management system is up to par, there is a lot you have to do. Use these seven tips to ensure that you set your retail business up for success. With time and consistency, you’ll be able to influence customers to shop from you. These seven tips will help you to build a successful retail business.
As a business owner, you should also consider business insurance Australia. This is as, both you and your retail business are exposed to certain risk factors. A customer could trip and fall in your store, and then sue you. You would then have to engage in an expensive lawsuit, where you would have to pay exorbitant amounts. If you had business insurance, however, then you can find yourself protected against the most common business risks. Consider protecting your finances, as well as your retail business, with business insurance Australia. Learn more about small business insurance.