| Retail business plans tackle the issues
relating to all sorts of stores, from exotic parrot stores to custom
clothing designers. KEY
CONSIDERATION
The world of the "little guy" (or gal) is
nearly gone. Huge boring boxes have taken over the retail world. Most people
know the aisles of their local K-Mart as well as they know their own
neighborhood.
This is not a cheerful circumstance for this writer, nor, I suspect, for
many of you. But there is light at the end of the tunnel. That light is has
two components: unique product and personal service.
Even Nordstrom's well-publicized customer
service cannot compete with that provided by a local retail shop owner. When
your retail store can provide those two elements, you are ready to take
advantage of all that retail business plans can offer you.
STRONGEST ADVANTAGE
You are "local business". You are exactly
what most banks say they promote. Well, give them every reason possible to
help you. If you will be doing much promotion, even offer to add their name,
"With funding assistance of My Local Bank."
STRONGEST DISADVANTAGE
It's going to be tough for you to get a
location that will match your talents. The big malls get humungous amounts
of traffic. Not only are these malls very expensive, but they nearly all
prefer large chain stores as clients. In fact, since your store will provide
unique product, you may not cater to the huge crowds that the mall attracts
at all. So location, location, location is likely the biggest issue you need
to address in retail business plans.
OVERCOMING THE DISADVANTAGE WITH YOUR
RETAIL BUSINESS PLANS
Tie down your location first.
Retail business plans tend to focus on the
written material. Be assured, your legwork upfront will serve you better
than more pages in your business plan. Identify a location that provides
decent traffic, easy access, and is near your potential client base. If you
can accomplish that, you will be a big step on your way.
Prove that you have the experience to make
the store successful.
There are two types of experience that you will need to prove: Your
knowledge of your niche product, and your knowledge of marketing that niche
product.
No, retail business plans cannot address
every possible product or scenario that might occur. But focus on the two
noted above, and you will do well.
Use the retail business plans outline to
prove that you have the marketing background and skill to make your store
successful.
First, you need a track record in your product niche. Note: I do keep using
the term "niche". You cannot compete with Target or Office Depot. Don't even
try it. You really need to focus to a product niche that the biggies don't
deal with.
It doesn't matter whether your knowledge
comes from a career or from a hobby, as long as real, direct knowledge is
there. And don't be shy about touting your talents -- the lender will think
you don't know a thing about the product unless you demonstrate that you do.
Identify your core buyers. If you are
selling specialized golf clubs, your market is obvious. If you want a flower
shop, the market may not be as obvious. Whatever it is, identify it.
Identify the number of your core buyers in
your selling area. A Scottish shop need only have a slew of McDougals et
al. A wedding gown shop is looking at a very different clientele. Whichever
it is, quantify it.
Base your projections on valid, provable
statistics. No pie in the sky here -- it just won't fly.
OTHER PLUSSES FROM RETAIL BUSINESS PLANS
Your lender may or may not be a potential
client, or even know what your product is. Be sure to really identify the
product. For instance, there's a big difference between a "sports store" and
a "custom fishing lure shop".
FOR ADDITIONAL INFORMATION FOR RETAIL
STORE BUSINESS PLANS AND RETAIL STORE MARKETING PLANS
For traffic information on your
retail location, contact the owner/manager of the retail center. Also go to
your city or county planning department where you can get traffic counts and
information on housing and construction in that area. You may need to look
to specialized organizations, like boating clubs or miniature railroad
groups, to really get a handle on your potential market.
For statistical information for your
marketing plan for a retail store on a particular industry, go to
BizMiner.
At the home page, look for the Industry
breakdown on the bottom of the page. Click on "Retail"
This is your gateway to thousands of
specialized industry reports, one that is likely to be perfect for your
business, such as
- Apparel Retail Store
- Auto Parts Retail
- Automobile Dealers
- Computer and Software Retail
- Consumer Electronics
- Cosmetics and Beauty Supply
- Department Stores
- Discount and Variety Retail Stores
- Drug Stores and Pharmacies
- Home Furnishing Stores
- Jewelry and Watch Repair
- Music, Video, Book and Entertainment
- Office Products Retail
- Party and Holiday Accessories
- Toys and Games Retail
... and lots more.
Click on one of these topics to go to a
list of reports specially designed for your area of interest.
Be sure to check in the left hand
navigation bar for "AREA VITALITY REPORTS" to find out more about your
metropolitan area.
YOUR ONLINE PRESENCE
The internet is the great leveling field
for small entrepreneurs. Here is where you can compete against anyone in the
world, and do it effectively. In fact, the stronger your niche area, the
better the possibility that you will be a strong contender for online
visitors.
Take a look a a few of the
success stories --
sites created by individuals to promote their own businesses and hobbies.
And if you need help establishing your online store, contact
Your SBI Coach.
YOUR LIKELY LENDER/INVESTOR
The
SBA is a
strong lender in the retail field.
If yours is an established retail business
looking to expand regionally, nationally or internationally, a venture
capital firm may be your best choice. Be sure to check out the newest
development in venture capital:
venture
lending.
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