Guide to Starting a Retail Business

How to Open a Store by Meir Liraz

This guide will walk you step by step through all the essential phases of starting a successful retail business. To profit in a new store, you need to consider the following questions: What goods do I sell? Where is my market? Who will buy? Who is my competition? What is my sales strategy? What merchandising methods will I use? How much money is needed to operate my store? How will I get the work done? What management controls are needed? This guide will help you answer all these questions and more.

Here's what’s in the book:

~ Things to consider before you start - crucial things you must consider before you start pouring in your hard earned money. Ignore it at your own peril.

~ How to plan and start your new store - complete, step by step instructions, this is must-know must-do information; ignore it and you stand a good chance to fail. You get specifically designed instructions for each phase.

~ How to select the right location for your business - the location of your store is what will make or break your retail business. Here are specific instructions on how to choose the best location for your business.

~ How to develop winning marketing strategies for your retail business

~ How to plan and execute a results driven advertising program - tips and strategies to make your retail advertising pay off big.

~ The art of personal selling in a retail store - If you're having problems selling what you're selling, it's time you see this. Here's an amazingly effective eight-step selling formula. Just follow this simple formula and see how your sales soar. More importantly, you come away with the most comprehensive understanding of the essence of the selling process. This skill alone, which few people possess, is worth a small fortune.

~ How to set the right prices - pricing secrets to help you make money and still be competitive. You get specifically designed instructions for a retail store.

~ Fundamentals of retail pricing, sales and markdowns.

~ Clever strategies and techniques for preventing retail theft.

~ All these and much much more.

My name is Meir Liraz and I'm the author of this book. According to Dun & Bradstreet, 90% of all business failures analyzed can be traced to poor management. This is backed up by my own experience. In my 31 years as a business coach and consultant to managers, I've seen practically dozens of owners fail and lose their business -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work. And that is where this book can help, it will teach you how to avoid the common traps and mistakes and do everything right the first time.

Sample Content:

When you have decided what business you are in, you are ready to consider another important part of you business plan. Marketing. Successful marketing starts with the owner-manager. You have to know the merchandise you sell and the wishes and wants of your customers you can appeal to. The objective is to move the stock off the shelves and display racks at the right price and bring in sales dollars.

The text and suggested working papers that follow are designed to help you work out a marketing plan for your store.

Determining the Sales Potential

In retail business, your sales potential depends on location. Like a tree, a store has to draw its nourishment from the area around it. The following questions should help you work through the problem of selecting a profitable location.

In what part of the city or town will you locate?

In the downtown business section?

In the area right next to the downtown business area?

In a residential section of the town?

On the highway outside of town?

In the suburbs?

In a suburban shopping center?

On a worksheet, write where you plan to locate and give your reasons why you chose that particular location.

Now consider these questions that will help you narrow down a place in your location area.

What is the competition in the area you have picked?

How many of the stores look prosperous?

How many look as though they are barely getting by?

How many similar stores went out of business in this area last year?

How many new stores opened up in the last year?

What price line does competition carry?

Which store or stores in the area will be your biggest competitors?

Again, write down the reasons for your opinions. Also write out an analysis of the area's economic base and give the reason for your opinion. Is the area in which you plan to locate supported by a strong economic base? For example, are nearby industries working full time? Only part time? Did any industries go out of business in the past several months? Are new industries scheduled to open in the next several months?

When you find a store building that seems to be what you need, answer the following questions:

Is the neighborhood starting to get run down?

Is the neighborhood new and on the way up? (The local Chamber of Commerce may have census data for your area. Census Tracts on Population, published by the Bureau of Census, may be useful. Other sources on such marketing statistics are trade associations and directories).

Are there any super highways or through-ways planned for the neighborhood?

Is street traffic fairly heavy all day?

How close is the building to bus lines and other transportation?

Are there adequate parking spaces convenient to your store?

Are the sidewalks in good repair (you may have to repair them)?

is the street lighting good?

Is your store on the sunny side of the street?

What is the occupancy history of this store building? Does the store have a reputation for failures? (Have stores opened and closed after a short time)?

Why have other businesses failed in this location?

What is the physical condition of the store?

What service does the landlord provide?

What are the terms of the lease?

How much rent must you pay each month?

Estimate the gross annual sales you expect in this location.

When you think you have finally solved the site location question, ask your banker to recommend people who know most about location in your line of business. Contact these people and listen to their advice and opinions, weigh what they say, then decide.