Each retailer can identify with the count of activities to help & keep their retail business operational, successful, and significant. Therefore, mostly any retail setup can identify with having a “list of things to get done” of activities for a business that involves some additional penny being spent.
As retail entrepreneurs, keeping up a “to-do list” of things to put resources into for your business is a good practice to follow. Eventually, without making advancements or updates to your business, how you can hope to remain relevant in an extremely serious competitive market?
To help figure out what ought to become the first thing first, ask yourself the following Frequent Question:
Which sector & what brands or brand (in case of EBO) to go for?
- Industry sector of entry
- Brands availability in that sector
- Scope & future of the same sector for the next 10 years
- Brand and industry awareness among customers and requirement meter working
- Social audit of the same sector and brand you want to get into
What is the Revenue model – margin & pay off structure?
- Gross Margins
- Net margin
- Operational cost per month
- Discount/reduction cost per year
- Taxes and levies in the sector/industry
Who is your target customer?
- Customer base you are targeting – Individual B2C or B2B, corporate/ Govt, etc
- The catchment area of the target customer
- Relative cost to retail for that catchment
What will be the start-up cost?
- Location Rent deposit
- Staff Cost & selection
- Stock Purchase
- Fixtures cost/Civil Cost
- Marketing cost
- 6 months of initial Opex funding (operational Expense analysis per month)
Is your“Business ROI” ready? – An extremely important step before you take the first step
- Expected sale potential
- Expected Return on investment for the project
- Expected Break-even sales per month (no profit no loss business)
- Expected return after Tax & Interest– (PAT analysis)
What will be the weekly, monthly, and annual commercial & sales goals you have for your retail business?
- Monthly/half-yearly/Daily sales Report Analysis and working schedule
- Monthly Target and expected return working beforehand
- Sales to expenses ratio – (how much expenses over the monthly sales)
- Marketing budgets & Social media Marketing Budgets
Does your business require a big store façade and entrance which converse what your business offers and meant for? (Required Retail space clarity)
- High street location or mall Store
- Required Size of retail space
- Fixture cost per square feet basis
- Commercials working – Rent, Tax, Depreciation, etc
Store façade commercial working (bigger is the façade more will be the Fixture cost and that will affect your ROI)
- What is your competition analysis and study of the industry you have chosen?
- Competition survey – Sales, commercials, market share, merchandise, etc
- Competition advantage or USP
- Competition’s Manpower survey
Is there a diversification opportunity in the industry/brand you have chosen?
- Any chance of further Product development in terms of add on feature
- Other brands in the portfolio
- What another sector your brand is present?
What will be the operational challenges?
- Manpower Selection, Management & training
- Monthly expenses Supervision
- Merchandise selection and order replenishment
- Store Management/Maintenance as per retail SOP
- Cash arrivals Vs Cash Outflows Management
- Timely insurance renewals – cash transit, Stock, Staff, Fire, Burglary, etc
Have tried to answer the basic and practical questions and real ground-level aspects of retail business that any retailer should think before he is getting into it