How to Start a Retail Business in 13 Steps

Entrepreneurs are always looking for the next big thing. And in 2018, it’s all about retail (and how to do it). This article walks you through the must-dos and don’ts when starting a small business as an entrepreneur.

The “starting a retail business checklist” is a list of things that you should do before starting your own retail business. This will help you avoid mistakes that other people have made in the past.

In today’s competitive environment, opening a retail business takes more careful preparation than meets the eye. To build a successful brick-and-mortar shop, you’ll need a business strategy (including market research), legal structure, a great storefront site, startup financing (about $100,000), merchandise, and a team of ready-to-sell personnel. You’ll also want to start promoting your internet shop once it’s up and running.

In 13 easy stages, you’ll learn how to establish a retail business:

1. Make a business plan for a retail store.

Making a written business plan is an important first step in launching any firm. Writing a business plan lays out a clear route for you to follow, ensuring you’ve done your homework, and positions you for success.

The Small Business Administration (SBA) distinguishes between standard and lean beginning business strategies. Traditional company plans are more comprehensive and appropriate for obtaining capital such as loans. Lean startup business plans are more informal and tailored to firms that are more flexible and change often as they expand. A one-page business plan is also a viable option.

We suggest adopting a typical business plan when starting a retail shop. It’s more meticulous, and it’s never a bad idea to be too prepared. It will also provide you with a more solid plan to present potential company partners or investors, such as banks.

The following are the nine components of a standard business plan:

• Executive summary: A one-paragraph explanation of your company’s purpose, objective, and reasons for success.
• Company description: Be explicit about your company’s specifics, such as the issue you’re addressing, how you’ll solve it, who you intend to serve as customers, and who you have on your team.
• Include an industry forecast and trends, what successful rivals are doing, and what your strengths will be in your market study.
• Organization and management: Describe who will be in charge of your company and what experience your employees have in retail or startup contexts.
• Product line: Describe the kind of items you’ll market, why they’re required, and any private label or proprietary bespoke product research and development.
• Describe the strategies you’ll employ to attract and keep consumers in marketing and sales.
• Requests for money: If you need outside funding, describe your requirements and how you intend to utilize the cash.
• Financial projections: Describe how your company will become stable and successful, providing a five-year financial forecast.
• Appendix: Include any other documentation in this section, such as product prototypes and photographs, credit histories, licenses, permits, and so on.

This may seem to be a lot of material, but it’s better to keep each section brief so that readers can quickly scan the whole page and absorb all of the information—the “why” behind the “how” you’ll open a retail store.

There are a few different alternatives to pick from when it comes to developing and structuring your business plan. You may, of course, write in standard word processors like Microsoft Word or Google Docs. You may also create a PowerPoint presentation of your business plan, which is a terrific alternative if you need to present your strategy to a group.

There are also industry-specific templates accessible in business plan software products like LivePlan. This business plan template and checklist may also be used. Alternatively, you might hire a company to write your business plan for you.

2. Determine Your Niche & Select Products

Creating a specialization for your retail shop can help you stand out from the competitors. The rivalry is fiercer than ever, thanks to retail behemoths like Amazon and Walmart. And, to be honest, many huge merchants, such as department and box stores, offer items that are fairly comparable. Having a distinct point of view will enable you to provide something that customers can’t obtain at their local Target (aside from feeling great about shopping small).

A niche market is a small group of people with a common interest. The more specific the interest, the simpler it is to establish yourself as the market’s go-to shopping location. For example, there may be a dozen pet supply businesses in town, but you may be the only one that specialized in dog costumes.

Our guide to finding a niche market lays out three actions that shops may use to identify their niche:

1. List your hobbies and interests: As a business owner, you’ll be immersed in your selected specialty for a long time, so start with your own passions. Plus, picking something you’re passionate about will give your shop a more genuine feel.
2. Check out rivals on social media and do some research on Google Trends to make sure you choose a subject with a lot of money-making potential.

The word “dog costumes” seems to be declining in popularity, suggesting that a new niche may provide a better long-term chance.

1. Research prospective profits: To determine how lucrative each niche may be, look at industry data and Amazon bestseller lists to see what sales are like in the areas you’ve picked. You can also use sites like Alibaba to look out wholesale costs for items and compare them to normal retail prices to get an idea of possible profit margins.

Amazon’s best-seller lists showcase the most popular items in each category.

Obtaining Products from Vendors

It’s time to select a dependable provider for your specialized items now that you’ve narrowed them down. You must first comprehend the many possibilities before deciding how to purchase items for your retail business:

• Manufacturer: You create the idea for the product and outsource the manufacturing. This choice gives you the greatest control over the product, but it’s also the most time-consuming.
• Wholesaler: Wholesalers create things and sell them in large quantities to retailers at a discount. The things are subsequently resold for a profit by retailers. This is the fastest way to get a product, but it also gives you the least control over it.
• Dropshipping is when you offer items directly to consumers and then have the manufacture and fulfillment of each order handled by a third party. Dropshipping is the least involved alternative, but it also has the worst profit margins.

When selecting a source, look into a few different possibilities and get samples from two to five different vendors. To limit down the things you wish to source, go through quality assurance testing. From there, cultivate vendor relationships by good communication and prompt payment; ultimately, you’ll be able to negotiate discounts, particularly for large purchases.

The COVID-19 epidemic has posed several obstacles to global supply networks. Almost every supplier has been harmed as a result of this. When researching your alternatives, inquire about how they handle such problems and what their contingency plans are in the event of sudden closures or lockdowns. You may prepare for these challenges as a retailer by padding schedules and providing yourself some breathing space in case of delays beyond your control. Have numerous sources for your most popular items, and if feasible, pick local providers.

Market Research for Retail

Instead of deciding on a few niches and then doing research, you may begin by conducting primary market research on your target audience to determine their interests. If you’re launching a physical business, you may do a firsthand research of your target population to assess their requirements. It’s conceivable, and probable, that your shop can meet certain special requirements in the community.

The following are some examples of effective market research strategies:

Sending Surveys to Customers in Your Retail Store

Surveys are a simple and efficient technique to collect a large amount of data. When it comes to sending emails, most established firms rely on their client database. You may market your survey using local Facebook groups and targeted Facebook advertisements if you don’t currently have a client database.

Your initial polls might be quite broad, just asking locals why they enjoy their current favorite shops and hobbies. You may send out surveys to gauge client interest and response to certain goods as you move closer to making a decision. In our customer satisfaction survey post, we describe this kind of product development survey and provide a free form.

Conducting Consumer Panels & Focus Groups

A focus group or consumer panel may give more accurate data than a survey, but these sorts of information-gathering events can reveal finer nuances and deeper insights that a poll would overlook.

Guidelines for conducting focus groups include the following:

• Maintain a small group size: It’s best to have eight to ten people so that everyone’s voice may be heard.
• Incentivize participants: Make it obvious in your marketing that they will be compensated in cash or gift cards for their time.
• Carefully choose participants: Request that attendees RSVP to ensure that they live or work near the future site of your shop.
• Before you begin, have participants fill out a contact form: Consent documents should be provided, stating that their replies will be recorded.
• Begin with broad inquiries: Ask basic icebreaker questions to get the conversation going. Then go on to soliciting product feedback and shopping preferences.
• Make sure everyone receives equal speaking time: You want to hear a diversity of perspectives, so try to avoid having one or two people dominate the discourse.
• Remember to remain unbiased and receptive to input, and don’t attempt to influence or steer people. The purpose of focus groups is to get input. There is no requirement for agreement.

3. Create a Personal Brand

Your merchandise is just one aspect of your retail operation. Customers have a connection to your brand as well. Creating a brand is crucial because it attracts new clients and allows you to create strong ties with existing ones. Your brand identity encapsulates who you are as a business and defines your “why.” While you only have seven seconds to establish a first impression, brand awareness might take up to seven impressions. This need consistent branding.

Consider why your company exists. Use your market research to find out who your greatest rivals are and what sets your shop apart. All of this data contributes to the basis of your brand. Your brand consists of the following elements:

• Logo, storefront, typefaces, signage, and colors are all examples of visual branding.
• You may come up with your own store name and tagline. To help you come up with ideas, use our free company name generator.
• Describe how you wish to help your community and consumers in a mission and vision statement.
• What sets you unique from the competitors in your specialty, market, and community.

4. Decide on a legal structure for your retail operation.

It’s crucial to choose a legal structure for your company since it defines how you’ll collect and report taxes, how you’ll be paid from your company, and your degree of personal accountability. There are numerous other legal forms, but sole proprietorships, limited liability companies (LLCs), and corporations are the three most popular in retail.

If you don’t set up a legal structure for your company, it will default to sole proprietorship. It basically indicates you’re running a business on your own and aren’t independent from your company in any manner. Sole proprietorships are a common choice for freelancers, business consultants, and other self-employed people who do low-risk, low-visibility work.

LLCs are legal entities for small businesses that safeguard your personal assets, such as your home and vehicle, in the event of a lawsuit or company bankruptcy. This is the most common legal form for small retail enterprises, and it’s the one we suggest if you just want to have one location.

Learn more about the advantages and disadvantages of LLCs.

Corporations, sometimes known as C-corporations, are the most organized legal form for a retail company. They have very severe tax regulations. In the viewpoint of the government and the IRS, forming a company creates a wholly new and different organization.

5. Get Your Financials in Order

Regardless of whose legal form you pick, it’s vital to keep your company and personal money separate from the start. It will be much simpler to manage spending and revenue if you have a specialized company account, which will help you remain on track financially. You’ll also find it simpler to file your taxes. Not to add that combining your personal and company money may “penetrate the corporate veil” of your LLC if anything goes wrong.

Best Bank Accounts for Small Businesses

There are nearly endless alternatives when it comes to selecting a small business checking account. Look for a bank that caters to small businesses and has low costs. Check to see if there are any branches near your shop or house. Because you’ll be making a lot of cash deposits and change as a shop, going to the bank should be simple.

Consider additional options like mobile banking and online check deposit that will make your life simpler. Consider if the bank offers options such as business credit accounts, loans, and general branch location accessibility that will benefit your company as it expands.

Check out the following tips for assistance in selecting the finest small business banking options for your company:

Retailers should invest in accounting software.

You’ll need an accounting software application in addition to a small company checking account. Products and shipping, personnel compensation, and advertising charges are just a few of the costs connected with operating a retail shop. Tracking your income and spending accurately will allow you to know precisely how much money you’re generating, discover where your costs are out of control, estimate your product purchase budget, and make paying taxes a million times simpler.

QuickBooks is one of our favorite accounting tools for small companies since it’s economical, easy to use, and interacts with a variety of popular retail point-of-sale (POS) systems (more on POS systems below). It’s especially useful for retailers since it has retail-specific report bundles, such as gross margin by inventory volume, and it interfaces with ecommerce platforms. QuickBooks plans start at $10 per month and include a 30-day free trial.

6. Open an Online Store

While you may be considering building a real retail business, you should also think about a digital equivalent. In 2020, retailers that sold across several channels, including online, made more than $350 billion in sales. Experts expect that by 2023, multichannel sales will account for roughly half of all internet sales.

Launching an internet business offers a lot of promise to improve your Conclusion. Opening an online shop alongside your brick-and-mortar location may help you reach a wider geographical audience while also providing you with another destination and channel to cultivate current customer connections.

Choose an ecommerce platform that works with your accounting software and POS system. You may use the templates and resources provided by most current platforms to design your shop, or you can pay an expert to do it for you. Remember that selling online necessitates the additional steps of order fulfillment and shipment. While you can theoretically provide click and collect, you’ll also need to figure out how to transport things to clients who aren’t in your immediate area.

Not sure where to begin with your online store? We’ve put up a comprehensive tutorial on how to create an online business. You might also look into the following resources:

7. Obtain Funding for Your Retail Business

Opening a retail shop requires a significant initial expenditure. You’ll need to acquire a lease for a physical location, invest in renovations, buy merchandise, set up your POS system and payment processing gear, market aggressively, plan a grand opening, and pay employees. It seems to be pricey, and it is. A retail business might cost upwards of $100,000 to operate.

To finance your retail shop, you need have a substantial portion of the initial expenditures saved up that you may contribute yourself. However, there are other small company finance solutions available where you may get funds from outside sources. Among the possibilities are:

• Small company loans are available through banks, credit unions, the Small Business Administration, and even your current network of contacts.
• Credit cards: If you’re just getting started and don’t have any company revenue history or a poor credit score, a business credit card may be a better alternative. You’ll also have greater freedom with a credit card to account for unexpected spending. See which of the top small business credit cards is appropriate for you in our guide.
• Crowdfunding: Crowdfunding is a terrific approach to generate interest in your shop and encourage people to engage financially and emotionally in it. Furthermore, you are not required to repay this money.

The interest rates (APRs), upfront costs, and application criteria are the most important variables to consider.

Using your IRA or 401(k) retirement plan as a source of capital for your company is another possibility. Your immediate response to this concept could be, “Whoa, no way.” However, just because you’re utilizing your retirement account to support your company doesn’t imply you’re cashing out or borrowing against it.

Rollover for Firm Startups (ROBS) is a program that allows you to put retirement assets in your new business without paying taxes or incurring early withdrawal penalties. This procedure might be time-consuming. So, if you’re thinking about leveraging your retirement savings to start a company, we suggest partnering with a seasoned provider like Guidant.

8. Decide where you want your retail store to be located.

Choosing a location for your company might be difficult: So, where do you begin? How do you tell whether you’re picking a lucrative niche? Will people want to visit to your site in the first place?

If you’re looking for a place to open your company, start by narrowing down your possibilities based on practicality and convenience. Think about how far you’re willing to go every day for the foreseeable future. Select locations that are readily accessible from your home. Spend time in each region to get to know the local demographics and tastes, as well as to look for other local companies.

Working with a real estate agent will give you peace of mind during contract negotiations and help you find the best space for your business. Contacting listings directly can offer the best deal; however, working with a real estate agent will give you peace of mind during contract negotiations and help you find the best space for your business.

Inquire about traffic, customer demographics, and the area in addition to scouting out your potential business. While visiting the space, ask your selling agent as many questions as you can. Keep in mind, though, that their goal is to get a lease signed. Instead, go to nearby companies, introduce yourself, and ask if you can take the owners or managers out for coffee to get some feedback on the area.

The following are important questions to ask regarding the property:

• Who is the property’s landlord, and how is it managed? Other companies and workers in the area will provide you with candid comments on the landlord’s maintenance approach, including how they manage snow removal and general property care.
• Why did the prior occupants leave the premises? Examine the complex’s tenant turnover and, if feasible, speak with any renters who have departed to learn more about their experiences there.
• When is the busiest time of day and which days of the week are the busiest? Find out what other renters have to say about the area’s traffic.
• What is the average length of stay for tenants? If you’re in a neighborhood with other businesses, it’s preferable if they’re well-established with regular customers who can assist bring traffic to your new location.

Aside from foot traffic and tenant comments, there are a number of additional storefront aspects to consider that may have a significant influence on your retail company. Is there, for example, a designated parking lot at the location? Potential customers may not make the effort to visit your business if there isn’t a designated parking lot with plenty of spots and street parking is tough.

Consider what choices there are for signage and street-facing displays. Shoppers need to know your company exists in order to attract all of the foot traffic you tracked. Your storefront should ideally face a busy thoroughfare. Is there a huge sign by the driveway so visitors can see what companies are inside if the site is located farther back? Inquire with the selling agent and a nearby renter about potential signage alternatives and who pays for them.

Also, be aware of any town or local rules that may have an impact on your storefront promotion. Some municipalities, for example, limit the size of the sign that may be placed in front of your shop. Other cities ban the use of temporary signs such as A-frames.

If you’re building a retail business that depends largely on impulsive purchases, such as a corner convenience store or a souvenir shop in a tourist town, as we said before, investing on a good location might be a smart choice. However, most boutiques must keep to their budgets, which means paying rent that is less than 10% of monthly total sales.

Learn more about how to identify and lease retail space in our guide, which includes information on the various kinds of leases and clauses to be mindful of, as well as how to determine your monthly rent budget.

9. Create an interior design for your retail store.

It’s important to start systematically preparing the inside when you’ve secured a retail outlet. The importance of strategically arranging your shop layout cannot be overstated since it has a significant influence on in-store sales. A well-designed layout will greet customers, make them feel at ease, and point them in the direction of certain items.

Choose a Structure for Your Layout

The first decision you must make is whatever sort of floor layout you choose. This will mostly be determined by the sort of shop you want to create. The majority of retail establishments fall into one of three layout categories:

Best for specialist shops, showrooms, and businesses that wish to direct customers along a certain route.

This floor layout is precisely what you’d expect from a supermarket shop or a big box retailer: straight, angular lanes.

This is a popular concept for boutiques since it offers for a lot of design flexibility.

Place your order for checkout

A well-positioned checkout will open up prime retail space for displaying products and encourage shoppers to move through more of your store. Instinct might tell you to Place your order for checkout at the front of the store so it’s most visible or on the right-hand side of your store where traffic tends to flow. But the best place to position a retail checkout counter is often on the left side of a store.

When people enter a business, they naturally go to the right side. That’s where you’ll want to put your money-making and new items. The checkout counters in certain department shops and bigger mall businesses are located at the rear of the store. For smaller businesses, however, positioning the checkout at the front makes it easy for employees to attend to the register while keeping an eye on the entry.

The checkout counter is located on the left side of the shop, while prominent items are presented on the right side.

Learn how to optimize your checkout to increase revenue.

Outfit With Fixtures & Displays

You’ll need to invest on display fixtures, signs, and lighting after you’ve laid out the bones of your shop layout and checkout counter. Begin with the areas of the shop that will be primarily permanent, such as the counters, lighting, dressing rooms, and any fixed shelves.

Invest in high-quality goods that will establish a coherent aesthetic and will not go out of style since these pieces will be permanent. The remainder of your business may then be outfitted with more cheap, temporary item displays and decorations that are easy to change up with the seasons or trends.

For step-by-step instructions on how to set up various fixtures and displays, see our guidelines below:

Put Your Products in the Best Position for Success

What sort of shop you have and the layout you pick will determine how you merchandise your items. However, there are a few easy strategies you may utilize to increase sales in any shop.

• Products displayed at eye level, rather than above or below, are more likely to be seen and bought.
• Seasonal goods and new arrivals should be prominently displayed: Many businesses use a table display five to 15 feet inside the entryway that is refreshed nearly daily to showcase new and limited-edition items.
• Increase spontaneous purchases at the time of sale: Consider candies in the grocery store; placing small, low-cost but helpful or attractive goods near the checkout desk, such as phone chargers, Chapstick, and lottery tickets, is an excellent method to boost add-on purchases.
• Keep it comfy: Customers that spend more time in your store spend more money; provide Wi-Fi, product demonstrations, and comfortable seats to entice them to remain longer.

Download our shop layout e-book for step-by-step instructions on how to stock your business for additional information.

Checklist for Creating a Store Layout for Free

10. Choose & Install a Retail POS System

Choosing a point-of-sale system is a critical step in starting a retail business. POS systems are software programs that combine sales and retail transactions with inventory and other company administration tools into one streamlined platform, allowing retailers to operate their businesses more efficiently.

Using a point-of-sale system saves time, is simple to use, and gives you more information into your sales, inventory, customers, and employees. Many POS systems also have built-in payment processing, allowing you to deal with only one vendor. When choosing a POS, there are several variables to consider. It’s crucial to make a wish list of the characteristics you desire before you start truly exploring other possibilities.

The following are some of the factors we use to assess the top retail POS systems:

• Price: Most POS software solutions require a monthly subscription, with some charging extra for additional inventory management functions.
• Setup and installation: Some POS systems allow for self-installation, while others need a costly professional installation.
• Ease of use: Try out the POS to see whether the UI is user-friendly; study user and professional evaluations to learn about any bugs or common issues.
• To save time, make sure the retail inventory management solution you’re using offers capabilities like bulk upload orders, stock notifications, and the ability to generate buy orders straight from the system.
• Customer management tools: While almost all POS systems offer a customer directory, they differ substantially in terms of loyalty, marketing, and customer feedback functions.
• If you want to sell online as well, ensure sure the POS you chose includes an online shop functionality so that all of your inventory, customer, and order information is synced across online and offline sales.

We often suggest Lightspeed for conventional brick-and-mortar retailers, boutiques, and speciality shops. It’s a small-business point-of-sale system with big-business features like custom report builders and powerful inventory management tools (including built-in product ordering), as well as a sophisticated ecommerce platform.

Retail POS Lightspeed

Choose a Credit Card & Payment Processor

The next step is to find a credit card processing or merchant services firm. Some POS systems handle payment processing in-house, while others need you to utilize a third-party service. When picking a retail credit card processing firm, the two most crucial factors to consider are pricing and compatibility with your POS.

Credit card processing costs are typically hazy and hard to quantify. Our credit card processing glossary clarifies popular words and delves into the many forms of fees.

In general, there are three kinds of cost structures for card processing:

1. Flat rate: Processing firms charge a fixed percentage of the transaction; this is generally a viable choice for shops with smaller average sales (under $20), such as convenience stores.
2. Interchange-plus: Processing providers pass on interchange fees from Visa, Mastercard, and other payment processors, plus a per-transaction cost; this is often a suitable choice for most established speciality businesses.
3. Tiered: Processors charge a varying rate based on the kind of credit or debit card used in the transaction; we don’t advocate using a processor with this fee structure since it’s unreliable and often more costly.

Monthly fees are also charged by some card processing companies. Some applications take longer to complete than others. Contracts are required for certain conventional merchant accounts, and early termination costs apply. Before registering with a card processing business, be sure to read the small print.

Another thing to think about is if the payment processor is compatible with your POS system. Choosing a processor that works with your POS is great since it eliminates human mistake in transactions and guarantees that your POS’ inventory and sales data is accurate. We’ve put together a list of the finest retail credit card processors.

11. Hire & Train Retail Staff

Last but not least, you’ll need to hire a fantastic team of individuals to work as your company’s front line. It might be difficult to navigate the hiring process if you have never done it before. Our new hiring checklist walks you through all of the details, including acquiring an employer identification number (EIN), registering for state and local taxes, and more.

It’s unlikely that you’ll have a dedicated HR team member as a small company store. Because to COVID-19, it’s very difficult to get retail employees right now. In April 2021, more than 600,000 retail employees left their employment, the largest pace in the business in a single month in 20 years. As a result, now more than ever, it’s critical to take this step seriously.

To discover more about how to overcome hiring obstacles for your retail firm, see our guide on retail recruitment.

• Make Attractive Job Ads
• Prepare for your grand opening by beginning your training now.

The job description for the role you’re recruiting, whether it’s a retail assistant or a shift manager, is the first step in drafting an accurate and appealing job posting. Then think about what attributes would be the greatest match for the job. Finally, provide a description of your firm and why potential workers will like working there at the top of the article.

Consider employing an application tracking system (ATS) in addition to an all-in-one HR management solution to manage your hunt for the ideal individuals. An applicant tracking system (ATS) is a piece of software that automates the recruiting process and keeps track of applicants from the time they apply to the time they are hired. Here are a few tools to assist you pick the best ATS for your new company:

With every ability, practice makes perfect, and customer service is no exception. From the moment your business opens, you want your personnel to be ready to provide A+ service to your customers. This is where new employee training comes into play.

Hold a paid training “boot camp” where employees may practice customer service skills, review shop regulations, set expectations, and learn about your items. To keep the training interesting, find methods to add games and competitions.

“Experience is the most important part of training; you teach them what to do and they comprehend.” You won’t be able to keep staff responsible unless you commit to having a successful sales process in bite-sized courses that you rehearse and role play. You’ll settle for anyone will work your shifts if you don’t have responsibility to execute that procedure every time. You’ll hobble your potential to succeed, and you’ll inevitably use the loser’s excuse that Amazon was the reason you weren’t successful. Training isn’t something you do once and then forget about.”

— Bob Phibbs, CEO of retail consultant The Retail Doctor

12. Create a marketing strategy

It’s time to create a retail marketing plan now that your brand and shop are ready. Your marketing plan will establish the groundwork for your launch (as well as pre- and post-launch) to guarantee a healthy balance of new and returning consumers.

Make plans for your grand opening.

You’ve worked hard for months, if not years, to conceptualize and create your shop from the bottom up. A grand opening is an important approach to make a strong first impression on the community.

Market ahead of time

It’s frustrating to plan a party just to have no one turn up, and that’s not the tone you want to create for your new company. Make sure your event is well-attended by enlisting the help of friends and family, as well as beginning your marketing efforts as soon as you’ve set a date. Prepare a press release to distribute to local media outlets and businesses. Create a Facebook event. Place an ad in the local newspaper. Go for broke.

Collaborate with other companies

Working with companies that are comparable but not competitors, such as spas, fitness centers, and other sorts of merchants, is a wonderful way to tap into an existing consumer base. You’ll spread the word about your shop to their consumers as well if you include other companies. Use your local chamber of business, networking groups, schools, and even kid sports clubs to your advantage. Invite members of such organizations to your grand opening celebrations.

13. Make Certain You’re Compliant

Finally, and perhaps most importantly, make sure you’re entirely compliant and legal when launching a retail company. When creating a retail business, be sure to follow all local rules and regulations. Among them include, but are not limited to:

• Federal tax ID or EIN: This is a nine-digit number provided by the IRS that all employers must apply for. It is used to identify companies for tax-paying reasons.
• The state issues a sales permit, which permits enterprises to sell goods and collect sales tax.
• A certificate of occupancy is a document issued by the local government that certifies that the building in which your company is located is up to code.
• Permits for some types of signage, such as the one you would wish to put on your storefront, are required by certain local governments.
• Information bulletins on safety and health: You may be obliged to post notice on employee rights or safety information; these are often offered, but it never hurts to double-check with your local government.
• COVID-19 mandates at the local level: It’s possible that you’ll be forced to have a completely vaccinated workforce and to conduct frequent testing for individuals who haven’t been vaccinated. Many stores may have to require employees and consumers to wear masks.

Check with your local town hall or municipal center, as well as your local chamber of commerce, if you’re unclear where to begin or want to be sure you’re not missing any compliance requirements.

Conclusion

It takes years of planning to open a retail business. However, once your firm is up and running, taking the time to create a clear strategy and following it will put you on the road to success.

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