Opening an online store is a great way to see if your business plans have traction; that is, if your products or services are unique enough to be in demand. Many small online retailers view the next step as opening up a brick-and-mortar retail store. But is this right for you?
Before committing to such a big investment, you’ll need to do a bit of research. When selling online, it opens up the whole country (and even the world) as potential customers. But a retail store limits your business to local customers. Can your community support your business? Look into the demographics of nearby areas to find which locations are closest to your target audience. If you sell athletic gear, you wouldn’t want to open a store in an area that contains mostly elderly people.
Once you find an area for your store that has great potential for success, think about your products. Most people enjoy the ease of online shopping, but they wish to shop in person when items require touching, smelling or tasting to get the full experience. Chances are that you prefer to try on clothes before buying or taste a cake sample before ordering an elaborate tiered masterpiece. If what you’re selling falls into this category of products and/or services, then it’s a good idea to learn more about retail spaces in your chosen location.
However, it’s still a good idea to test the market on a smaller scale first. Rent a booth at fairs, trade shows and other local events where you can sell your wares. If those efforts are successful, try a kiosk in a mall. Strong sales are a good indicator that opening a physical store is indeed the right path for your business.
Retail stores come with many expenses, such as rent, utilities, security deposits, shelving and display structures, inventory, common area maintenance, employee payroll, business insurance and more. To learn just how much you can expect to budget for, consult with an attorney to learn more about employment laws and what you will be required to obtain before opening your store. It’s also a good idea to have your attorney look over your lease before signing.
Once all of your ducks are in a row, it’s up to you to expand and grow your business. Wishing you the best of luck for future success!
We’ll help you get the coverage you need to get started. Call Pro Player Insurance Group at (954) 316-4662 for more information on Fort Lauderdale business insurance.