Retail Business Basics

Finance & Banking

Good preparation and showing confidence in your ideas as an owner establishes the credibility necessary to convince a bank that you have business sense. Take note of the following points:

·        Establish a relationship with your lender.

·        Do your homework before expanding, making a significant purchase, or purchasing another retail space.

·        Have a business plan that highlights the key elements of your business in one document and know your store’s worth.

·        Perform an in-depth analysis of your financial needs no matter if you’re starting a new business, remodeling, or expanding an existing one.

·        Educate yourself on whether you should lease or finance new equipment.

Retail Location

Industry experts agree that location is probably the single most important factor in the success or failure of a retail store. Be sure to examine the following points when determining your store’s present and future needs:

·        Assess the population density to determine the general population and the number of potential customers in your specific area.

·        Target your audience. When you know who your potential customers are, it will be easier to select a site. If you want to target an upscale audience, the location should be in an upscale neighborhood. If you want to target students, select an area near a local university.

·        Know your competition. Your best protection is a well-respected, ongoing business, based on exceptional service and outstanding product performance. Customers are loyal so don’t give them a reason to run to your competition.

·        Lease or purchase a site. In determining the size of your store, consider the amount of money you have to invest and the amount of equipment that it will take to operate profitability. Before building or leasing, check with the proper local offices to verify all zoning ordinances, building codes, etc. Seek legal help prior to signing a lease.

Supplier Network

Using your supplier network is one of the best ways to keep your finger on the pulse of the industry. Establish strong relationships with your manufacturers and distributors and use it to your advantage. There are several issues to consider when choosing your partners.    Does the company provide an annual review of new products and promotions? Does the company offer co-op opportunities? Does the company back its products and services? Does the company offer technical support or customer service support? Does the company provide manufacturer or distributor symposiums and in-store selling strategies?

Product Selection

·        Set a standard for quality at your store and only purchase those products that meet this standard. Discuss your quality concept with the staff, making sure they understand what you look for in a product.

·        Carry product lines or brands that are familiar to the consumer and a have good reputation. Brands are those labels that are easily recognized by the consumer and are manufactured according to the strictest of quality guidelines.

·        Ask your customers the right questions to determine what supplements and health food products are appropriate to their needs and what their shopping expectations are.

·        Offer a range of products that will have a wide appeal with your customers, and be sure to train your staff well so they can explain the features, advantages and benefits of all your products. Your staff’s knowledge will help sell more, as well as provide you with feedback in terms of which products are not meeting your quality standard based on customer responses.

·        Be confident in the products you are selling. If you are not, consider changing or dropping lines. If you don’t believe in and stand by what you are selling, you will never be able to increase your retail profits.

·        The closer products are to the point-of-purchase, the better. Customers do not want to go far to find and purchase something that interests them. Displays of products placed near the point-of-purchase are beneficial because they encourage impulse spending and make it easier for your staff to soft sell or cross-sell different products. It also makes it easier for your staff to answer questions the customer may have about products.

·        Make your reception sales-oriented. In order to sell supplements and other retail products, salespeople are needed. Hire customer-oriented, outgoing staff members with a sales background and educate your existing staff on how to sell.

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