Want expert guidance on how to set up your physical store? Here’s all you need to know to breathe life into your dream of setting up a physical
Setting up a physical store is one of the most significant achievements of a business – it’s a sign that you’ve made it throughout all the initial struggles and are at the forefront of customers’ minds.
However, it’s in no way an easy feat.
From raising capital to finding a suitable location, there are countless factors that you have to consider and plan for before you can even think about setting up your physical store.
But don’t worry.
The journey of a thousand miles begins with one step or well, in this case, six steps.
Here’s a simple six-step guide to help you get started.
1. Market Research
Market research is conducted to get acquainted with the market demand and trends.
It can help you analyze your product’s demand and ascertain the lifecycle of your product.
You can even get deep insights into your market and finalize your unique selling propositions through market research. This can help you get going and achieve a competitive advantage.
Needless to say, you have to study the market carefully before opening your store. Otherwise, the repercussions can drive you out of business.
Understand the playfield you’ll be operating in, study your target population’s demographics, including age and gender, and see what value you can provide through your products or services.
Accordingly, construct a solid business plan to get going.
2. Selecting A Location
Once you’re done analyzing the market trends, you have to search for suitable premises for your physical store.
You might fancy the idea of choosing a cheap location or an over-the-top premium location, but this is not always the right option.
The location should be at a busy place where there is a high footfall of customers.
More importantly, it should be at a place where your target audience resides or usually hangs out.
Plus, keep an eye out on where your competitors’ stores are. That will also help you finalize a location.
Now, it’s true that choosing a busy place might come with heavy rents, but it’s worth the value you get.
3. Calculating Costs
Choosing a location is just one aspect, you have to decide about other costs as well.
Some of them are:
- Furniture and utilities cost: You will have to purchase customized furniture and design because it’ll give off the accurate vibes about your store. Creating a personalized interior will make customers visit you more for an in-person experience.
- Employee cost: Initially, it may seem that you can manage it alone. However, you will need some employees at your store, including cashiers, accountants, helpers, and guard.
- Software cost: Many shops use accounting, CRM, and inventory software for their physical store. It can help to keep things managed and updated.
So, make it a point to first understand and estimate all the costs involved and then proceed.
4. Financing Decisions
Once you’re done finalizing your cost, you have to decide how to finance it.
In most cases, you won’t have the entire capital at your disposal. Therefore, you might need external financing.
The best way to get finance is through banks.
You can visit several banks and explain to them your business plan.
If they find it interesting, they may be willing to lend it to you at low-interest rates.
Alternatively, there are government schemes that support new startups. So, you can always try your luck with them.
If not, you can even look into raising investment privately.
Remember that financing is critical if you want to run a physical store successfully. Way too many businesses are forced to shut up shop due to cash-flow problems. Make sure that you are not one of them by planning ahead and keeping your bases covered.
5. Covering Legal Requirements
A physical store might come with several legal requirements.
You might require a seller’s license, employer identification code, and a basic business operating license.
Next, you might have to decide your business structure.
You can be a sole proprietor, but it comes with risks.
You can even go for partnerships or an LLC, but they also require some legal work.
So, pick the option that suits you best and get to work.
6. Marketing
Finally, marketing your business is the most vital step.
It’s a powerful tool that establishes the unique identity of your store and helps you attract and convert prospects as well as retain customers.
From social media marketing campaigns and developing a user-friendly aesthetic website to running targeted ad campaigns on search engines, there are several digital marketing strategies that you can use to create awareness, visibility, and affinity for your brand.
Try offering discounts, PRs, and giveaways – they’re the simplest yet most effective ways to get people to visit your store.
Plus, don’t forget to make the most of conventional marketing methods as well.
Takeaway
So, what are you waiting for?
Four Seasons General Merchandise is here to help you on your journey of starting and building your very first physical store. We have thousands of items to choose from at the lowest prices!
Get started and breathe life into your dream of setting up a physical store.
Take it one step at a time, and slowly but surely, you’ll build the best brick-and-mortar in town!
