A retail store is any commercial building that serves consumers with products or materials for purchase from a merchant.
Opening a retail shop by tapping into your entrepreneurial spirit can be exciting and rewarding. Like any other business proposition, you need the dedication, planning skills, and know-how of the proper channels to go through.
Retail buildings come in all sizes and designs, from stand-alone to mega-stores to strip plazas, depending on the products that are being sold. A retail construction contractor is responsible for providing a quality construction that meets safety regulations.
But besides that, there are various important things you need to consider when building a retail store.
1. Define your mission and plan
State of the purpose of your store. Identify what kind of products or services you intend to provide. Know who the primary customers will be.
You should develop a business plan or outline, detailing your goals and objectives, as well as how they will be achieved. This will be the framework in which you build the business. It should drive you through the process of establishment and keep your store competitive.
2. Know your customers
The whole point of building a retail store is to run a profitable business. And you’ll need customers for that!
Advertise why you are opening the store. To draw in customers, remember to study the market and local community. What will inspire them to buy from you rather than your competitors? For any business to survive, you have to beat the competition. Is it quality, convenience, or the price of service and products? Therefore, you should know who the potential clients are and let them know that you are available to benefit the community.
Figure out how you’re going to attract your target customers. You will need to get creative and develop awareness, whether it’s through social media, promotional flyers, or online searches. With nearly all retail stores using IT, you will need to consider aspects of e-commerce.
One of the crucial factors of building a retail store is the right location. An ideal location is one that gives you a sustainable advantage over your competitor with easy access to your customers.
It should be close to your target market. If you plan to sell an assortment of goods, a standalone store with a lot of traffic nearby is vital to the business. You need to draw customers from a larger geographic area to make enough revenue and profit. But with a niche store, boutique, or any spot enclosed in a mall, passers-by, and customers on foot is essential. The size and traits of the local marketplace play a key role, and it influences how much you need to invest. Again, if you don’t have enough customers, your store won’t succeed. Therefore, assess the local marketplace before signing a contract.
4. Investigate further
Spend time on location before starting. Study the surroundings to gauge how it impacts your store. This includes business hours of nearby shops, after-hour traffic, lighting during the day and night, the safety of workers who will open or close the store, parking space, etc. All these factors will influence the retail store in the long run.
5. Figure out finances
If you don’t have the money to finance the start-up expenses and operating expenses, it’s not a smart move forward. However, you can raise money through investors or lenders, though they will need to see a viable business plan. But as the business takes off, you’ll need an ample supply of capital. Have an estimate of the design and construction cost as well as the time required for the project’s completion.
6. Design layout
When designing the floor plan, it’s important to keep in mind the products the store will have. Larger merchandise will need a bigger display area, while others might need various electrical outlets. All these factors directly affect the cost of construction. The design team needs to keep this in mind to utilize the potential of the store space. It is essential that products are allocated according to size to increase customer traffic and maximizes sales.
If you’re building a retail store, you’re going to need permits and certificates. Failure to do so can result in penalties or hefty fines. Besides this, it’s important to file the necessary paperwork describing the type of business that you will be doing, ownership (or partnership) details, liability, taxes, insurance, etc.
Make sure that you become familiar with local laws, zoning ordinances and any surrounding areas that may affect your business.