2020 has hit the world hard; however, this hasn’t held some entrepreneurs back from chasing their goals. Whilst the retail industry has been hit hard, not all people want or can shop online. Do you want to start a new business in your area? With the very best market research completed, you should seek to see what people in your area, or city want. This way, you may find that there is a gap in the market just for you. If this is the case, then you will need to look at opening up the store.
The physical store allows customers to visit the store to choose the products and services to purchase.
A typical way to open a shop is franchising. This is an agreement whereby an entrepreneur allows an affiliate to use their business formula to sell goods or services at a point of sale.
Opening a franchise allows other franchisees to start a sales business of any kind with a small investment. In fact, the affiliate will be able to take advantage of a brand and a format already started, generally committing to reselling the entrepreneur’s products.
Requirements and financing
The main requirements for opening a shop are standard whether you open a sole proprietorship or a company.
In particular, to start, you need to open a VAT number, register with the business register and submit to the government. Once this has been done, you will need to look at financing and then detail precisely what finances will be needed to ensure you are giving your customers the best possible service from day one.
Start-up costs must include everything you need to open doors and keep them open.
Sit down and brainstorm all the expenses you can imagine, including toilet paper for the bathroom, or alarm systems. The list is quite extensive and should take you some time to get to the nitty-gritty of the finances. Here are some possible outgoings that you will need to account for each month:
Rent
Make sure there is enough capital to cover the rent for at least two years
Store design
Depending on the type and size of your business, you may need shelves, displays, cases and furniture, so you should check your needs thoroughly.
Initial inventory
You must have a full supply on the opening day and a product that is sufficient for at least four months. If you don’t know the exact price, use an estimated surcharge to go back to the prices you’ll likely see from distributors.
Equipment and technology
Key elements like POS systems, computers, internet access, televisions, mobile payments, and other IT costs are not cheap. If you are going to be importing or exporting, then you will need to ensure that you have reliable shipping services, for everyone’s sake. Get the best pricing on full truckload shipping carriers and ensure your business is always running smoothly.
Company insurance
Consider everything from property insurance, including employee compensation liability and any coverage required for employees or for you.
At this time, you may feel as if your new business is impossible to reach. However, in these climates, there could be a valuable niche too. Covid-19 has not completely eradicated the high street store and there are many small towns who will always rely on their local shops. Make the lists, focus on what you want, and plan meticulously.
