Starting a Retail Business

You're on your way to finishing your one-year MBA program. As with these types of graduate programs today, part of it is to visit companies in other countries. You were fortunate enough to spend several weeks each in China and South East Asia.

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You were amazed by the size of the manufacturing business there. The plants are enormous, and you're blown away by how cheaply everything can be produced, from water heater parts to toys to electronic devices. You're looking to put up a business in your hometown of Orem. It could be a repair business, a hardware store, or just a retail store in general. With the low cost of manufacturing practically anything, you're more inclined to pursue a retail store business.

You've learned a lot from your MBA program so far, but what are some of the practical knowledge one needs to have to start a retailer business. Let's look at the possibilities.

A Trillion Dollar Industry

The retail trade industry in America is a trillion-dollar industry, with 2018 revenue figures estimated at $5 trillion. There is nearly 3.2 million business operating in the country that employs almost 18.7 million people.

It's a crowded market, but it's a vast market. Growth is on a steady rise at 2.1% per year. The cost of starting a retail business varies. It is maybe as low as $2,000 to upwards of $50,000.

How to Start

The excitement and the number of items you need to attend might overwhelm you. Selecting products, getting a reliable supplier, managing your inventory, etc. are just some of the main things you need to address. Try focusing on the following essentials to get you going in the right direction.

Decide on your legal entity & business name. Avoid the headache of unexpected costs and get your business set-up in order immediately. Is it going to be an LLC or a partnership? Experts advise that following the most conventional track, the LLC, would be wise. If your business grows, incorporating might be inevitable. Part of your legal entity is your business name. Spend time to decide on a good name.

Location. If you have people helping you during the planning stage, give them assignments so that you are attending to multiple issues at the same time. Scouting for a commercial space to lease is time-consuming but necessary. Make sure that the right facilities are available, from electricity to the Internet connection. Note that this item is where you are likely to shell out a significant amount of money upfront.

What to sell? Don't immediately go for the things that you like or those that connect with you because your passionate about them. Think about what your customers might need. You need to find the right fit and something that you can push out the door the soonest for greater profitability. This should be laid out in your business plan, of course.

Moving your product. There are various channels by which you could sell your product like, online or via brick and mortar stores. Figure out what your plan is so that your customers become familiar with how to access your products. This will be part of the building blocks of your branding and creating a company culture.

You need to know the laws if you are importing goods from abroad. Marketing will be a critical aspect of your success, but these main ideas can help you start your next retail business.

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