If you’ve launched a business, chances are you’ll need a retail location. In today’s ecommerce world, brick and mortar stores help keep neighborhoods alive. According to the National Retail Federation (NRF), retail in America supports 1 in 4 jobs, and 98% of retail locations are comprised of small businesses. Whether you’re in the restaurant industry or are simply moving from your garage to a more official location, opening a retail location is a big step, and it’s a decision that needs to be made carefully. Opening a retail location is no easy task. Here’s what you need to know.
- Set Up Your Legal Structure
Although this part of opening a retail location isn’t fun, it’s one of the most important steps you’ll have to take. Defining your legal structure affects how you’ll pay for your taxes, the amount of personal liability you’ll take on for any debt you incur, and your ability to have shareholders or raise capital. Each of these things have a huge impact on how you’ll operate your business. A sole proprietorship is the most simple option, but it’s not always the best choice. With this option, your income and expenses are tax deductible, however, you are liable for your debt. Other popular legal structures include partnerships, corporation, and limited liability company.
- You Need a Business Plan
Even when you feel as though you’ve got everything under control, this doesn’t negate the fact that you need a business plan. It doesn’t have to incredibly lengthy and complex, but a solid business plan can be the foundation you need to guide you through the retail process. As a business owner, it’s easy to get lost in your ideas and and to veer on the idealistic side. A business plan forces you think through the tough questions. If you’re struggling, research sample business plans—preferably in your industry. For example, take a look at this business plan for a coffee shop.
- Get Necessary Permits
No matter what industry you’re in, you’ll the need the right licenses and permits to operate. Without them, you could be breaking state laws and end up with a hefty fine, or even be charged with a criminal offense. An employer identification number (EIN) is one of the first things you should get. Think of your EIN like a social security number for your business. You can apply for one easily through the IRS website.
You’ll also need to check which permits are necessary on a local level; the Small Business Administration is a good place to start. If you plan to buy products from other distributors or vendors, you’ll need a resale certificate. For example, if you opened a coffee shop and want to sell baked goods from a local bakery, you’ll need a resale certificate.
- Choose the Right Location
Choosing the right location independent business could make or break your success. A great brick and mortar store has the ability to improve your visibility, bring in foot traffic, and works within your budget. There are several things you have to consider, such as the population of the area, nearby transportation and parking, the competition in the area, price, and more. Use the Scribble Map to help you hone in on your ideal retail areas. This makes it easy to identify the type of customers who are within a 10-mile radius of your potential location.
“It’s also important to get an inspection from a licensed contractor, and be sure that your pipes and electrical wiring are in order,” says Fix It Right Plumbing, plumbing experts in Melbourne. “It also helps to get associated with a local plumber and other contractors to ensure you always have a team you trust if something goes wrong—especially if it could affect your business.”
- Set Up an Ecommerce Site
Although you’re investing in a retail location, it doesn’t dispute the fact that you’ll need an ecommerce site if you want to stay on the same page as your competition. An ecommerce site not only can generate revenue, but can make it easier for potential customers to discover you. Be sure to get started with Google My Business: a free service that helps you attract local customers. With the majority of searches for local businesses happening on mobile, this is a necessary step. An ecommerce site is cost-effective, too: it’s easy to get up and running in no time. Ideally, you can choose an ecommerce site that integrates with your point-of-sale system.
