Proven Small Businesses You can Start - Introduction and Retail Shop
Introduction
Small businesses of numerous types are started everyday by people from a variety of job backgrounds. Most of these are new businesses, although they can often include home businesses that have expanded.
As with home businesses, small businesses are usually considerably more successful when based around your existing knowledge and experience, or abilities that you are in the process of learning.
The following are ten popular examples of small businesses that are started across the country every year. Each example contains important information and lists some advantages and disadvantages to help you find a business that is right for you.
It is important to remember that running a small business will usually have higher costs than a home business (E.g.: Office space, Shop space); but it will also have much higher earnings potential. It is always important to weigh up the advantages and disadvantages carefully before going ahead with any business idea.
Running a retail shop will primarily involve serving customers and the management and ordering of stock, as well as managing any employees.
You will need to be able to communicate well with your customers, and offer them any help they may require. You also need to be able to keep track of the ordering and sales of stock, ensuring that you never run out of popular and profitable items. Knowledge of the products you are selling will help you, especially if you are likely to get questions from customers about them; though you do not need to be a total expert unless you are promoting the fact as part of your business.
If you have previously run a home party or home selling business, a shop is usually the next step of expansion; allowing your existing customers to buy, but encouraging new ones as well. By expanding a successful home business, you will have a much better idea of the potential market, as well as which products are popular.
When you choose a location, you need to study the local area in detail. Are there enough people who have access or pass by to make the shop successful; and are there many competitors with the same or similar products nearby? Don’t forget that the better location your shop is based in, the more expensive your building rental will be; and popular retail locations are normally very costly anyway.
There are a huge number of products that you can sell in a shop, including adult and children’s clothing, children’s toys, groceries, antiques, and almost anything with a large enough market.
It is important to remember that you will need to buy a sufficient set of stock when your shop opens, this may prove quite expensive if you sell a large number of items. As with all product sales; some items will make you large profits, whereas others will make little to no profit. Supermarkets and large retailers often sell some products at a minimal profit to attract customers, where they can sell more profitable items, this is called a loss leader strategy; it can be effective, but is risky if planned poorly.
A retail shop can attract new customers in a variety of ways, although the effectiveness of different methods will depend on what your shop sells. Many shops use local newspaper advertising, and shops with smaller items like food or clothing often post leaflets (sometimes with special offers on) through local doors. If you sell larger items, and are within reaching distance of a larger area, then radio advertising can sometimes attract lots of new custom.
Pro:
With a good location it will be easy for people to buy from you.
Selling products that are not widely available can bring in lots of customers.
Profits on some types of goods can be very high.
Con:
There may be high competition for the products you sell.
Most good locations will have very high costs.
Some products will carry low profit margins.
Skill Level = Low
Start up Costs = Low to Medium
Training = Not needed for most products
Experience = Not needed, though an advantage
Equipment Costs = Depends on goods sold, usually low.
Location/Office Costs = High
Transport Required = Not unless you provide personal delivery service.
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