Aspects of a Retail Startup to Consider in 2023
Many Australian entrepreneurs like to invest in the retail sector, despite the recession the pandemic caused, the retail industry is bouncing back, which is a relief for investors. If you are planning to launch a retail outlet, there are many aspects to consider, which we analyse in this article.
- Location –Ask any seasoned retailer and they will confirm that location is everything; you need to be near several residential areas and main roads are preferable to quiet, side roads. That empty land for sale in Bendigo might be perfect for your project, although leasing is probably a better idea. Either way, do some groundwork and create a map, using pins to mark competitors and housing zones.
- Lease or buy – If your startup budget is limited, leasing would be preferred; ask a business lawyer to scrutinise any lease agreement, to ensure that you are not restricted. Your business plan might chart 3-5 years for the first stage of business development, so you want a lease that gives you at least 5 years. You may wish to have the purchase option when leasing retail premises, which some landowners are happy to provide.
- Parking – Most of your customers have their own transport, so you do need ample parking space, which narrows down the venues. Lack of parking can kill a coffee shop; unless you are in a retail zone, where traffic is restricted.
- Store fitout – Search the web for reputable fitout contractors and show them your concept; ask several to quote for the project, then you can make an informed decision. Most fitout contractors can work to the client’s budget; make sure the price quoted is ‘all-inclusive’ and set an agreed timeline.
- Marketing – If you are planning a big launch, social media marketing should get your message out; talk to a local digital marketing agency and ask them to compile a detailed online marketing plan that includes SEO and social media coverage. Posters and advertising boards are effective ways to inform the local community, which ties in with your digital campaign.
- Security – Retail outlets are a target for thieves, especially in the evenings, when most businesses are closed. Aside from CCTV, you can outsource premises security to a local provider; they would patrol at night, making several visits during the night. Regarding inventory, your insurer would insist that you have adequate security; there are numerous policies to suit every business.
- Hiring staff – The best type of person to work in the retail sector is service-minded and likes to meet people; approach a recruitment agency and they will screen all applicants and give you a list of candidates to interview. If you are managing the store, inject some positivity into the business, motivating staff and helping employees to become good at what they do.
Every business should start with a business plan and if, after a lot of scrutiny, the plan holds water, the next step is to cost the startup and find the capital you need to turn your dream into reality.