The Simplest Ways to Start a Retail Business

Our world is more connected—and easily accessible—than ever. That's why the current generation is often called the instant gratification generation. While the size and variety of segments in the retail industry offer many opportunities for entrepreneurs, it is also highly competitive, making it an extremely risky venture.

A retail business acquires products or services from manufacturers or wholesalers and sells them to consumers. Simple, but the industry is enormous - it includes everything from food to apparel to home decor and auto. When opening a retail store, more planning is needed than meets the eye. Depending on your niche and level of involvement, a retail business can be profitable. 

With some smart planning, you can start a retail business that stands out among the rest. To assist you in starting your retail business, we will take you through the steps you need to take and offer additional resources to assist you throughout the process.

Develop a Business Plan

Develop a business plan to understand the structure and priorities of your retail business. Identify the key points to include in your business plan that will make it stand out by asking yourself the following questions:

• What types of products will you be selling? What motivates you to sell these products?
• Are there any statistics that prove there is a demand or need? What are the sources of this information? How reliable are they?
• Which type of business are you interested in operating? If you choose to go omnichannel, you will have access to brick-and-mortar locations, eCommerce stores, home-based businesses, mobile businesses, or any combination of these.
• Which demographic do you aim for? Do you have any qualitative or quantitative data at your fingertips? What are your plans for reaching your audience?
• What makes your retail business different from others in the industry? How does it differ from those around you? Do you have a business like yours nearby?
• How do you determine when you'll break even?
• What will you do to stock up?
• What is the timeframe for making a profit?
• Does the business require a lot of funds to get started? And what is needed to maintain it once it is up and running?

Considering unforeseen events or aspects you didn't consider in the beginning can cause a business plan to need to be readjusted at any time. You should consider your business plan a work in progress that will continue to evolve as you grow your business. Here are a few things to include in your business plan.

Identify Your Target Audience

You need to know your target audience to solicit sales and scale your business. Consider both demographics and psychographic data when determining their needs and preferences.

1. Demographics

In addition to basic socioeconomic characteristics such as age, gender, ethnicity, income, and job title, demographic data also includes other factors.

2. Psychographics

An individual's psychographic data includes various psychological features, such as values, beliefs, interests, opinions, etc.

All of this information gives you a deeper insight into your ideal buyer's needs, preferences, and purchase triggers. 

Learn About Your Competitors

Understand who your competition is. Nothing today is completely original. Be aware of how many alternatives your prospects have to you and to what you're offering.

Understanding your competition will help you develop a strategy for competing. How will you compete on price? With quality? With service? What about variety? Be specific about what sets you apart. How will you communicate this to your customers?

It is crucial to understand what makes your business unique and what gives it a competitive advantage. Your retail business will be competitive, so you need a clear plan to succeed. It is perhaps the most important aspect of opening a business to identify how you will help your target market.

A common risk of opening a retail location is getting lost in the crowd.

In a crowded market, you run the risk of not being noticed. Currently, consumers have a ton of options for finding information about products. There are numerous shopping options available to them. Buyers have many purchasing options to choose from. The retail strategy must target the consumer both through product and marketing. It must resonate with consumers.

Choosing the Right eCommerce Platform

Ecommerce platforms serve as the technical foundation for online sales. A social e-commerce platform offers everything you need to run your business from a product catalog to payment processing. Every year, more and more people are getting comfortable with online shopping, increasing your pool of potential customers. The global e-commerce market will reach 22% of retail sales by 2023.

Against this backdrop, Markaz was designed to help resellers navigate the challenges associated with making the most of opportunities and growing their businesses. It is often difficult to find high-quality products because suppliers operate differently and lack visibility.

To circumvent these difficulties, Markaz uses a platform that connects multiple suppliers and resellers. Their approach is to see what is available, offer the goods to their customers, and then place orders whenever they need them. Markaz handles not only the delivery but also the payment, shipping the goods directly from the supplier to the reseller.

Select a Product Line

Before purchasing or manufacturing big orders, you should holistically consider your product(s). The following questions can help: 

• Is there an online business that sells similar products already?
• Can this product sustain demand? If so, how long?
• Are the mathematic calculations sound? Will it generate a profit?

Don't be fooled by the product's cool appearance. What matters is that it's a viable business plan!

Add Your Products

Although your business plan probably outlines the general products you wish to sell, this step requires a more comprehensive listing of your items. Consider mentioning the products' unique characteristics, such as colors, sizes, etc. It is generally better to find a supplier or an option that lets you distribute through drop shipping or reselling if you are not producing your products.

Adding products to your store catalog is the next step after choosing a platform and a theme. You should be especially attentive to:

• Images of the products. Provide high-quality visuals that show the product from different angles.  
• Descriptions of the products. Do not lineup features - focus instead on benefits for the customer.

Product descriptions and images are vital in determining conversion rates for your product pages. Make them as great as possible!

Boost Your Business

Your business's success depends on establishing a solid marketing strategy.

You can use a creative marketing strategy and find ways to grow your customer base and brand value. The possibilities are endless. Use social networks such as Facebook, Instagram, Tiktok, etc., to sell your business.

You can begin driving traffic to your e-commerce store as soon as everything has been set up. Focus on the following channels:

• Paid ads. Establish a budget for PPC (pay-per-click) ads on social media and search engine results pages. This is the fastest way to increase a new store's brand awareness.
• Influencer marketing. Promote your products by partnering with social media influencers. It's a quick and effective way to expose them to your target audience.
• Social media marketing. Using Facebook and Instagram to build audiences to complement paid campaigns.
• Search engine optimization (SEO). Make sure that every page on your website is search engine friendly. Once you've done that, develop a content marketing strategy.

Should You Start a Retail Business? 

Do you have the right skills for retail? It depends on a number of factors. Your list of criteria should include personality, motivation, strengths and weaknesses, money, and experience.

Self-assessment and market research is necessary to make an informed career decision. Identify the products and services you can provide to start the self-assessment process. What are your strongest skills? 

Your new business will have a much better chance of success if you tie your skills to your market's wants and needs.

Getting Your Own Business Off the Ground

Suppose you have a new concept that you believe is better or different than anything else, and you want to build your own business from the ground up.

The most successful small businesses add some innovation to what's already there to provide something appealing or advantageous. Do you have an improved method for delivering goods to clients? Or perhaps you have a new product idea that will fill a market void. What makes you any different than the competitor? 

Suppose you have created new markets or promotional techniques for existing goods and services. In that case, you are also entitled to go your own way without protecting an existing business model. 

Frequently Asked Questions

What is the cost of starting a retail business?

A start-up store's cost depends on your chosen platform and the features you need. Some platforms are free, while others charge you a monthly fee. With the Markaz app, you do not have to pay additional setup fees. 

Where can I source products for my retail business ideas?

There are many sources from which you can obtain products for your online store, including wholesalers, manufacturers, and distributors. 

What is the best way to start a retail business without money?

One of the easiest ways to get started online is by selling products and using a free e-commerce social platform such as Markaz, which enables businesses with zero investment. Markaz aims to facilitate social shopping using technology, a network people have already built. The platform caters to retail businesses in Pakistan. Providing budding entrepreneurs with the means to market and sell their products through social networks and applications.