08/ 30/ 2004
by Vicki Gerson
Whether you are opening a new retail business or seeing slumping sales in your current business, there are several factors that will determine your success. Take a look around you at business owners you admire, and then look at these seven cornerstones that help determine the success of your business. How many of these successful business owners are following these building blocks?
Consider opening a business or strengthening your business on these seven building blocks; these will make a difference within the fiscal year:
The right population in the right location
In order to grow a retail business, there must be enough people around your store to shop there and support it. It is hard to grow any retail business without a growing customer base. Be sure your retail business is located where you are attracting the right population for your store. For example, if you own a children’s clothing store in a singles neighborhood, chances are your store won’t do as well as if you were located in a neighborhood with lots of families. You could also be located in a place where seniors purchase clothes for their grandchildren.
Appearance
Your store should never have dirty windows or windows that are left empty instead of having merchandise displayed in them. Potential customers should see merchandise that will draw them into the store. If your store doesn’t have a display window, make sure the merchandise they see on the floor nearest the window is attractive.
The inside of the store should have an easy layout and enough space to walk through the racks or the aisles. The lighting should be ample yet not glaring so customers can see the merchandise. Be sure the store looks neat and clean.
The size
Think about an appropriate size for your shop. A space that is too large may not be useful to you. Too many retailers open up shop in a space that is too large for them, paying for square footage they don’t really need. On the other hand, a space that is too small may not be very customer-friendly. You want customers to be able to move comfortably around your store as they shop.
Advertising
Spend your advertising dollars wisely. Determine the right place to advertise and track how new customers hear about you. Do you want circulars, direct mail or newspaper ads? Do you want a mix of all three? Should you add radio or cable TV? Decide what amount of your budget will be spent on advertising and stick to it.
Publicity and marketing
These two elements go hand in hand. Try to get as much free publicity as you can. When you are holding a special event at your store, hire someone to send a press release to get it in the newspapers. Market your store anywhere you can by word of mouth. Join local business organizations to make sure other business people know who you are. Whenever you can, donate something to an important business-sponsored event such as a Chamber of Commerce Auction or business-sponsored charity.
Merchandising
Before bringing a new product into your store, research your marketplace. Know what products will sell in your store and price them competitively. In addition, be sure to have an assortment of merchandise to meet customer needs.
Good management is essential. Good managers also lead and produce good, quality employees.
By starting with these seven cornerstones of success, you'll have a strong foundation for building a successful retail business.
