Starting a business requires an idea and the passion to make that idea into reality. A retail business opportunity is a good idea to venture in if an entrepreneur is planning is to start from small. The benefit of investing in this industry is that a business is not bound by any particular segment that they want to cater in. As retail business is selling of diversified products at one place.
Indian retail industry is the fifth largest among all other countries. This industry contributes 10 per cent of GDP of India and 8 per cent of employment. It is being analysed that more entrepreneurs from domestic and international are planning t venture in this industry. A good business opportunity is hard to find but you can think of to start your own retail store by buying a running business, buying a franchise or starting up.
It is essential that you know that buying a running business is the best idea as you dont have to pay any royalty fee to anyone from time to time like in the franchise and you dont need to take the pressure of creating a network like in a startup. There are online networking portals like BusinessEx which helps in finding the opportunity in the industry you want to cater in.
It is estimated that Indian retail market will grow at a CAGR of 10 per cent to $1.6 trillion by 2026 from $641 billion in 2016.
This sector is further divided into two segments which are organised retail and unorganised retail. The organised retail contributes only 9 per cent of the sector while the 91 per cent is of unorganised retail.
The e-commerce market for B2B business is projected to reach $700 billion by 2020.
(Source: IBEF Report)
What to look for while starting a retail business?
Target Audience and Location
It is mandatory to look for the target audience that you are planning to cater to in order to decide the location for your business. For example, a coffee and food retail brand Starbucks focuses only on those customers who can afford their products and open their store at those places only. Although McDonald's, on the other hand, focuses on low and high-income customers so they have an advantage. So you need to know what type of audience you are focusing on before starting up.
Demand and Type of Business
Now you need to decide what type of business in a retail industry you are planning to venture in. A retail business could be a convenience store, a focused product store like a jewellery store, etc. After deciding what type of business you plan to invest in then you need to check whether there is demand for it or not.
Resources and Investment
You must check two things before financing the business is the availability of resources and cost to start this business. In a retail business, you need to have resources from where you can get the goods that you are planning to sell. Also by analysing cost, you can estimate how much revenue you can raise and know whether it is a fruitful opportunity or not.
A retail business is a good investment for you to venture in but make sure that you look out for these factors before doing it. If you wish to start your own retail business by buying a running business then you can explore the business opportunities at BusinessEx.