E-commerce has surely shifted the attention of customers towards itself but there are still so many customers that prefer to go to a retail store. If you want to start a retail business and you are passionate about it then nothing can stop you to achieve that goal. In India, the retail market is pegged to grow at a CAGR of 10 per cent from $641 in 2016 to $1.6 trillion by 2026. Indian retail industry is one the fast-paced industry which offers an ample number of business opportunities.
You can start your own business but you need to go through a long procedure and if you want a simple solution then you can buy an established profitable business. In order to buy a business, you can search for the same on BusinessEx online portal.
If you are seeking for the information that could help you start a retail business then read and follow the step-by-step information given below.
Steps to start a small retail business:
Decide your product offering:
This is the first and the most important step, as you will need to decide what type of business and what you want to offer to customers. So in order to decide, you will need to find where your interest lies and in what area you have expertise. You will need to check the product demand in the market. Now the crucial part is making contact with suppliers and distributors, you can ask for similar retail businesses to share the contact as some would be happy to share their contacts. Then calculate the potential profit you will get after calculating all the facts and figures. If the business opportunity is feasible, then only invest in your time and money in it.
Prepare a Business Plan:
You will need to identify the competitors in the market you want to open up your own store. You must analyse who are the target customers for your business then you need to analyse that how you are going to approach them. Prepare an organisational chart as what kind of work there will be in the business and how many members required for the same. After preparing an organisational chart, decide a marketing strategy to promote your business and attract customers. Then prepare a budget you require to meet your business needs.
Find a Location:
It is a difficult task to find a suitable location for a business. You can contact real estate agent who is expert in retail business and can find a perfect location for your business. But always remember that all that agent need is commission so you need to do a proper research of the location before finalising it. You need to check that whether potential customers exists there or not, whether rent rate is in your budget or not, check whether there is any extra space to expand in the years to come or not and find the drawbacks of the location.
Laws and regulations:
In order to operate legally, you need to generate necessary documents. But you must know that the legal formalities are different for each type of business. Type of businesses: Partnership, Sole Proprietorship and Limited Liability Partnership (LLP). Business legal obligations that you need to fulfil are:
Once you get to know about all the things that you need to do, then determine how much expenses you need to incur. The relevant expenses would be rent, marketing research, agent commission, legal documents amount, workers pay, product cost, etc. Once you have the number required to start the business then its your choice whether to bootstrap the business or take a loan from bank or any financial institution and you can also find investors for the same.