Article by Frank Lucer
Over the last few months, a cautious optimism with regard to the economy has been growing. Many aspiring entrepreneurs suspect that independent retailers will be among the first to enjoy the coming surge in business. To that end, many of them are making plans to launch small retail shops. Some of these would-be merchants have been recently laid off from their corporate jobs and are looking for an opportunity to carve their own path. Others are simply ready for a change in the way they earn their living.
Whatever the catalyst, there is an enormous opportunity for those who want to become independent retailers. This article will provide a high-level blueprint for not only surviving in your market, but also thriving among your competitors.
Plan To Dominate Your Niche
It is far easier to succeed as an independent retailer who serves a targeted niche than it is to succeed as a general store owner. Shops that focus on niches cater to those who share passions. As a merchant, that allows you to maintain a tighter control on your inventory, emphasizing products that you’re confident will move quickly. It also allows you to enjoy higher margins on those products.
Plan from the beginning to dominate whatever niche you’re entering. This extends much further than merely selling merchandise. It involves hiring employees who can offer unparalleled product knowledge to passionate customers. It entails doing everything you can to build a customer experience that encourages people to return over and over.
Build A Captivating Customer Experience
Many aspiring retail shop owners become trapped in the mindset of thinking low prices are the most powerful lever they can use. That is a dangerous strategy that often ends in disaster. If prices were the only consideration, your prospective customers would simply order everything online.
One of the core advantages that small retailers enjoy over megastores and mass merchandisers is their ability to create a memorable experience for their customers. That experience is one of the reasons customers return, even if prices are a little higher than those offered by the big-box retailers. The manner in which you present your merchandise, combined with your floor layout, promotions, lighting, and other factors contribute toward an engaging experience that builds long-term loyalty.
Watch Your Numbers Closely
Even if you carry the highest-quality assortments, and enjoy quick turnover with wide margins, your retail shop can fail if you neglect the numbers. You should create a 12-month sales plan, cash flow plan, and inventory plan. Each functions as a road map that will help you make informed decisions based upon your limited cash flow, vendor requirements, and expected turnover throughout the year.
While your sales, cash flow, and inventory plans cover a 12-month period, each should be broken down further into individual months. That will give you the flexibility to make quick changes to compensate for cash flow shortfalls, slow sell-throughs, or to take advantage of sporadic opportunities (for example, hot trends).
Empower Your Employees
Your employees represent one of your most valuable assets as an independent retailer. They can offer your customers detailed product knowledge that cannot be matched by mass merchandisers. Far from being simple order-takers, they become problem-solvers for the people who walk through your doors. In doing so, they create a customer experience that is both engaging and memorable. Give them the authority to do their jobs. If you notice areas in which you’d like to see improvement, coach them. You’ll discover that your employees, when given the freedom to perform to their abilities, will rise to the occasion.
Operating a small retail shop is fraught with challenges. However, aspiring merchants can thrive in any market if they follow a methodical approach and create a captivating experience for their customers.
About the Author
G.A. Wright specializes in high-impact store closing sales that produce big increases in sales volume and attract big audiences. Check out their website for more information: http://www.gawrightsales.com
