I’m about to conduct an exciting experiment and in this series I will take you with me through all the steps leading up to opening a new retail store, both online and brick & mortar.
We will be going through a series of steps and go deep in each one to understand everything that goes behind the scenes on how to open a retail store.
In our case we will be opening a new location for an existing businesses, but this also applies to opening a new retail store as a single location.
We will focus here more on the financial preparation for taking such a step and how to make accurate projections to ensure your business is viable and can support itself in the future.
Why Would You Want to Open a Retail Store?
Starting a retail business is not for the faint of heart, but in this series we are about to reveal why this could be a very good investment (read the financial projections article). If done right, it can be a lucrative, sustainable business for generations to come.
There has been a lot of pessimism around retail in the past few years, but as we have shown here, retail is still a huge part of the economy and it is not going anywhere.
The retail industry is the largest private employer in the U.S, supporting 1 in 4 U.S employees. A lot of families make their living from income connected, one way or another, to the retail industry.
In fact, some of the richest people in the world are engaged in the retail industry and made their money either through a chain of retail stores, or by selling their products or brands to the public through retail stores.
A lot of pure play ecommerce retailers open brick & mortar locations, because they realize the huge market in physical retail. Despite the high growth of ecommerce in the last few years, it still only contributes 11% of total retail sales in the U.S.
That’s why I always advocate for opening a brick & mortar (if you can afford it) and connecting it to an online store to have a competitive advantage and get the best of both worlds. In this series we will show exactly how to do that.
How to Open a Retail Store?
if you have arrived at the idea to open a retail store, we assume that you have already decided on which segment or product category you want to do business in. We have compiled a list of retail benchmarks by retail segments to give you an idea of the profitability and margins of each category.
This in series we will show in details how to prepare for the opening of a retail store. Keep visiting as we update with new additions to the series..
(Click on each link for more details)
Here you will need to decide on the location, where you will want to set up your store. Location is a very important factor in your success, so make sure you spend enough time evaluating the different options and doing your math to see if this location will pay off in the future. In this article we discuss all the things that need to be considered when renting a store location.
This takes us to the next point..
Here we will show you how to draft a financial projection for your new retail store and how to know whether or not you can expect to make profit and have enough cash flow to pay yourself a salary.
Here we will give you a breakdown on all the areas that you will need to put initial capital in, so you can make your own calculations and arrange for the initial capital investment. This will include your initial investment in your starting inventory, and we show you exactly how to calculate that amount.
In this list we curate our top picks for the equipment, software and services you will need to open a new retail store.
Make sure to also check out our flagship article on Starting a Retail Business
Retailer & Founder of Retail Dogma, Inc.
Rasha has 12 years of retail & ecommerce experience. She has started an ecommerce business in 2008, and later worked at H&M, Bath & Body Works, Victoria’s Secret and Landmark Group.
She has lived in 4 different countries, speaks 3 different languages and holds a master’s degree in Strategic Management & Marketing.