Brick-and-mortar stores allow business owners to display their products in a way that will entice customers. Salespeople can develop personal relationships with shoppers and help them determine which items best suit their needs, which is impossible in strictly online sales.
Brick-and-mortar stores can be found in small towns, city centers, malls, streets and other public places. Retailers sell various items, including clothing, specialty food items and home decor. It is a competitive space, as profit largely depends on whether or not customers are captivated by those products.
World retailers generated $24 trillion in revenue in 2020. By the end of 2024, this amount is expected to reach $31.3 trillion.
Here are some things to know about starting a brick-and-mortar business.
1. Create a Business Plan
Planning the structure of your business is one of the first steps to starting a brick-and-mortar operation. It assists you in making decisions about the smooth management of your brand, which will help you overcome daily and future challenges.
If your retail business is listed on online marketplaces, you must factor in which apps you would use and how you will manage product orders.
2. Get Familiar With Your Market and Audience
Understanding your market, your target audience’s preferences, industry trends and broader economic shifts is crucial. This can aid in your decision-making regarding what products to sell, where and for how much.
Knowing what kind of audience you will be dealing with also gives you an idea of what they will like. If your brick-and-mortar business will have an online presence, you need to know how the internet can be beneficial in getting your audience to buy from you.
3. Have a Budget
You need to have enough money to start a brick-and-mortar operation. It’s vital to ensure that aside from your business plan's budget, you have extra cash. This enables you to run your company smoothly in emergencies.
4. Choose the Right Location
Experienced brick-and-mortar retailers always consider several variables when choosing the best location for their businesses. It takes more than just making the best offer to rent a storefront in a bustling area. You need to know where your audience is and where they frequently go when they need what you sell.
When choosing a location for your brick-and-mortar business, some factors to consider are:
- Demographics: This includes who your customers are, what they are interested in and where they are located.
- Competition: You must consider other businesses in the area that offer similar products or services.
- Infrastructure: The kind of brick-and-mortar business you venture into will determine how much space and assistance you need.
- Zoning and codes: The kind of company that can conduct business in specific regions is restricted by zoning regulations in several cities and states.
- Visibility: You must consider how fast your business will thrive in your chosen location.
5. Consider Staffing
Customer service is an essential part of a retail business. Though you might be able to manage operations by yourself at first, you need to find experienced personnel who will communicate directly with the audience as time goes on. Tasks such as hiring, bookkeeping, marketing and inventory should be handled by assistants.
6. Understand the Law of Marketing
You must be aware of specific legal obligations, such as payment options. These laws can vary depending on the type of products you sell, who you sell to and what form of payment is available when customers buy products from you.
7. Find Stable Suppliers
Suppliers with a solid track record can significantly help a new retail business. Working with a stable company can result in better deals and more reliable service, helping solidify your reputation. You may also want to try using foreign suppliers to gain a competitive advantage.
8. Take Advantage of Social Media
After setting up a business plan, finding the right location and getting your finances in order, one last step is to inform people about your company. Social media has changed the marketing game, and promoting your brand through different online channels will give you visibility and let people find you when they need your service.
Start Your Brick-and-Mortar Business
Once you know the strategies to operate a brick-and-mortar business, you are ready to sell and start making a profit. Follow these steps to set you up for success.
