Being a store owner can be a very fulfilling job for many people. That’s because opening a new store can be the starting point of a larger business down the line, and a life of being your own boss, while running a big business empire.
If you get one location right, and have the vision and strategic mind to expand, you can build a huge business on the success of your first retail store.
Read Also: The Economics of Retail Expansion
Some of the biggest fortunes in the world have been made through retail, and the story of these big businesses have always started with one store location and took off from there.
We’ve actually counted more than 200 billionaires on Forbes from all over the world with retail as their primary industry. And more are added to the list every year, with social media icons and celebrities monetizing their fame and huge following through retail.
Now let’s have a look on what your life as a store owner would look like, at least for the first location, before you start hiring managers.
What Does a Store Owner Do?
The job description of a store owner overlaps with the job description of a store manager, except that the store owner will be managing the business end-to-end. This will include managing the financials of the business and sourcing the products, besides managing the store team.
The Main Areas of Responsibility for a Store Owner Are:
- Managing People
- Managing Products
- Managing Finances
Duties of The Store Owner Will Include
- Managing the store staff and their scheduling
- Managing relationships with suppliers
- Product sourcing and building a product assortment
- Merchandising the store
- Managing the store’s P&L
- Paying the bills and managing cash flow
- Driving traffic to the store through partnerships and marketing efforts
- Managing inventory levels and taking corrective actions when needed
- Growing the business and managing its expansion
- Reading & analyzing the different retail reports
Read also our article on managing a retail store from opening to closing.
How Much Does a Store Owner Make?
The store owner can choose to be paid in the form of a regular salary, by estimating what would be a reasonable amount for the duties performed for running the business. Since the closest job to the store owner is that of a store manager, a store manager’s salary could be a reasonable estimate.
The current national average salary for a store manager is 51,959$ per year, and this could be used as a benchmark for an average store owner’s salary.
It should be noted, however, that a business needs enough cash to stay up and running. In some cases, especially at the early stages, there might not be enough cash to pay the owner a full time salary.
The best way to assess this is by creating a full retail budget in advance, using the estimated sales and expenses and then drafting a cash flow plan that shows the cash in and cash out for every month.
This way the owner can better estimate how much he can pay himself and still keep the business in a solid financial state that will then allow it to grow.
Create a Full Financial Budget
Access our members area and learn how to create a full financial plan (step by step) and download all the needed templates to get started right.
What Skills Are Needed to Be a Shop Owner?
In order to be a successful retail owner you need to have business acumen and good people skills.
You are going to be managing a team of people, so your managerial skills will help you get the most out of your team, and let them help you grow your business. Your people skills will also help you attract loyal customers, especially at the beginning of your journey.
You also need to be comfortable with numbers and using retail math in your day-to-day running of the store.
Retail is a numbers game, and the most successful merchants are good with numbers.
We’ve compiled a list of retail math formulas and a free cheat sheet download for store owners.
What is a Store Owner Called?
A store owner is an entrepreneur in the first place. He can also be called retailer, retail owner, boutique owner or small business owner.
Why Become a Shop Owner?
As we mentioned, a store owner job can be a starting point for many people towards building a big business empire. But actually, that’s not the only reason to open your own shop.
In fact, starting a retail business is a way for many people to provide for their families without having to get a regular employment that has a lot of limitations and restrictions. The store owner can set his own schedule and time off, and even manage the store remotely as we explained previously.
Check out the in-depth Retail Operations Management Course on how to manage a retail store end-to-end.
Store Owner Resources
Access a set of exclusive resources that will help you run your business more efficiently and take it to the next level, by optimizing the different aspects of your business. Learn how to create financial plans, how to set prices correctly and how to grow your margins.