Opening a store can be an exciting yet daunting process. With careful planning and preparation, you can set your business up for success from day one. In this comprehensive guide, we will walk through everything you need to do before opening up shop. From choosing a location and designing your space to obtaining licenses and permits, we’ve got you covered on the key steps to take to get your retail store off the ground. Follow along as we answer common questions aspiring business owners have when embarking on this new entrepreneurial journey.
Choosing a Business Location
One of the most important decisions you’ll make is where to locate your retail store. Ask yourself the following questions as you evaluate potential sites:
- What type of neighborhood or commercial district best suits your target market? Are you opening a high-end boutique or a discount store? Your ideal location will differ accordingly.
- Is the area convenient for customers to access via major roads and highways? Is parking readily available?
- What is the visibility of the space like? Will you have drive-by traffic and foot traffic past your storefront?
- Who are the other tenants nearby? Being located amongst complementary businesses can help drive shared customers.
- What is the rent cost per square foot? Be sure your budget aligns with rents in the area.
- Is the space the right size for your inventory and operations needs?
Take time to thoroughly evaluate demographic data on traffic patterns, customer bases, and spending habits around prospective locations. Drive to the area at different times of day and walk around to get a feel for the environment. Observe nearby businesses and activity levels.
Designing and Building Out Your Retail Space
Once you’ve secured your location, you can begin designing and building out your store’s interior space. Optimize the layout and decor to bring your brand vision to life. Key elements to consider include:
- Will you utilize shelving, racks, cases and other fixtures to display products? Map where these will go.
- How will you designate areas for point-of-sale, customer service, and backstock inventory?
- What lighting, flooring, walls, and other finishes will you implement? How do these tie into your brand aesthetic?
- How can you make the space unique to your business? This could involve artwork, custom builds, or special features.
- How will you direct customer flow patterns through the store?
- What signage, displays, and sensory elements will you use? These impact overall ambiance.
- Is the layout compliant with all accessibility, fire and building codes?
Work closely with your architect, contractors, and visual merchandisers to bring your retail vision to life. You want customers to immediately “get” your brand when they walk in.
Obtaining Business Licenses and Permits
With your location secured and buildout plans in motion, it’s time to get your paperwork in order. You will need to obtain proper business licenses and permits before opening up shop. Requirements vary by state, county, and city, but commonly include:
- General business license – Register your business name and entity type
- Sales tax permit – For collecting and remitting sales tax
- Seller’s permit – For wholesalers making bulk sales
- Food permits – If selling edible products
- Fire department permits – For occupancy and fire safety
- Building permits – For renovations and meeting code
- Zoning permits – To use the space for commercial purposes
- Health department permits – If serving food samples, etc.
- Signage permits – For any outdoor business signage
Apply well in advance so you have all required approvals before your target opening date. You may also need to register your business for state and federal tax IDs.
Selecting Your Product Mix and Suppliers
A key part of your retail planning is determining what exactly you will sell. Your product mix encompasses all the lines, categories, price points, brands and SKUs you will carry. Some considerations when shaping your mix include:
- What selection will appeal to your target audience and meet their needs/wants?
- How wide or deep should your assortment be in each category?
- What mix of staple and trending products should you carry?
- Will you sell private label in addition to national brands?
- What margins can you get from each product type?
- How frequently can you expect to refresh your inventory?
Once you decide on your product mix, you can begin sourcing from suppliers and vendors to stock your shelves. Having the right partners is crucial for achieving your desired margins and service levels. Here are key considerations in your supplier selection process:
- Does their product selection, pricing and minimums align with your needs?
- Can they reliably meet your order volumes and delivery timelines?
- Do they have a track record of good customer service?
- Do their values and business practices align with yours?
- Can they accommodate your payment terms and process returns/damages?
- Do they have contingencies in place if supply chain issues arise?
Take time to thoroughly vet, interview, and onboard suppliers well before opening. Test samples to ensure consistent quality.
Hiring and Training Your Retail Staff
Your team will be fundamental to providing great customer experiences. When hiring staff, look for:
- Retail experience
- Product knowledge/passion
- Strong salesmanship and diplomacy skills
- Reliability and responsibility
- Ability to stay organized and focused
- Physical stamina for the job
Also ensure any key roles like buyers, managers, and visual merchandisers are filled. Create a diverse, well-rounded team.
Invest time upfront in thoroughly training your staff on:
- Your brand story, mission, policies, and procedures
- Stock awareness across all categories
- Product information and inventory management
- Delivering knowledgeable, personalized service
- Addressing customer questions and objections
- Processing transactions, returns, and exchanges
- Troubleshooting issues
- Maintaining visual standards
- Opening/closing routines, security protocols, etc.
Set clear expectations and provide ongoing training once open. Knowledgeable, polished staff will be key brand ambassadors. Foster engagement and team spirit.
Developing Your Brand Identity and Marketing
You’ll want to build brand awareness in your community leading up to opening day. This starts with developing a strong brand identity and messaging. Some key components include:
- Your logo and tagline
- Your mission statement, values, and positioning
- Your color palette, fonts, and imagery
- Your tone of voice and personality
- Your website and social media profiles
Ensure all visual assets and brand communications are cohesive. Work with designers and marketing professionals as needed. You want customers to immediately recognize your brand.
Some impactful pre-opening marketing tactics include:
- Signage and window displays at your location
- Local radio, TV, and print advertisements
- Partnerships, sponsorships, and community involvement
- Promotions and giveaways leading up to opening day
- Email marketing and social media engagement
- Networking and cross-promoting with neighboring businesses
Generate excitement and provide value from day one. Share your brand story and keep the community updated on your progress. Offer special previews and discounts for early customers.
Securing Inventory and Supplies
You’ll need to accurately forecast and purchase inventory ahead of your opening to sufficiently stock your store without overbuying. Look at your selling space, product mix, and sales projections to determine ideal opening order volumes and future reordering timelines. Build in cushions for safety stock and some overages.
Aside from product inventory, also adequately stock up on:
- Packaging and shopping bags
- Hang tags, signage, and displays
- Office supplies
- Cleaning materials
- Employee uniforms
- Transaction supplies like receipts and register tape
Think through the checkout process. Will you provide shopping bags? Do you need security tags, sizing sticks, or other merchandising tools? Stock up on what you’ll need for day-to-day operations.
Configuring Your POS System and Finances
Your point-of-sale or POS system is mission critical for processing transactions and accepting payments. Ensure you select user-friendly, secure software with features like:
- Inventory management and reporting
- Customer relationship management (CRM)
- Ecommerce integration, if selling online
- Robust payment processing and security
- Employee management capabilities
- Easy software updates and support
Train staff thoroughly on using the POS. You’ll also need to set up payment processing accounts and obtain equipment like terminals and receipt printers.
On the financial side, be sure to have the following ready for launch:
- Projected profit and loss statement
- Cash flow budget
- Business line of credit or working capital
- Insurance policies (liability, workers comp, etc.)
Consult your accountant and insurance brokers to ensure you have adequate capital and coverage. Some expensive surprises can happen—plan ahead!
Complying With Regulations
In addition to obtaining the proper business licenses and permits, you must comply with all relevant regulations before opening up shop. Some key requirements include:
- Passing fire and building inspections
- Meeting accessibility guidelines (ADA compliance)
- Providing proper bathroom facilities
- Posting required signs and notices
- Adhering to workplace safety standards
- Retaining necessary employee documentation
- Collecting and remitting sales tax
If selling regulated goods like alcohol, tobacco, or cannabis, additional compliance steps are required. Fail to comply, and you risk fines or even forced closure if violations are found. Stay up-to-date on all federal, state, and local regulations.
Planning Your Grand Opening
The big day is almost here! A stellar grand opening event builds buzz and ensures high traffic and sales on launch day. Some components to consider include:
- Having a soft opening 1-2 weeks pre-launch to train staff in real time.
- Sending VIP invites to top customers for early access and special perks.
- Working with local media outlets to announce and promote the opening.
- Offering promotions, freebies, and prize giveaways.
- Having festivities like refreshments, music, and live demos.
- Ensuring you are fully staffed and stocked up on inventory.
- Welcoming passersby and handing out branded collateral.
Make a strong first impression and show customers you are open for business! Continue the momentum with ongoing promotions and community engagement after launch day.
Conclusion
Opening a retail store requires extensive planning, preparation, time, and financial investment. Following this comprehensive checklist will set you up for success. Secure your ideal location; design and build out your space; obtain required permits and licenses; hire and train staff; develop your brand and marketing; procure inventory and supplies; configure systems and finances; comply with regulations; and plan your grand opening event. With diligent effort and passion, you can turn your retail dreams into reality. The reward of launching your own store will make all the hard work worthwhile.
