Setting Up Your New Shop – What You Need to Think About
At its most basic level, opening a shop seems pretty simple. You sell stuff, people pay you, and you have no boss. It’s the easiest business model in the world, or so it seems, and deep down, we’ve all thought about it. As kids walking into a toy store or candy shop, we all fantasised about owning the premises so we could get all the sweets and playthings we wanted for free. We probably didn’t understand the concept of money at the time. But we knew if it was our shop, we wouldn’t have to pay, and nobody could say, ‘You can’t have it.’
The saying goes, ‘Men are just little boys grown tall,’ and it applies to all genders. Our inner child is still alive, kicking, and tantrumming. We just hide them better, squeezing them into grown-up clothes and distracting them with responsibility. And so at some level, the idea of owning a shop and taking whatever you want from it, whenever you want, without asking anyone … it’s a giddily exciting idea. Of course if you actually ran your business that way, you’d soon be bankrupt, so take a step back and review.
Find the right spot
Let’s assume you’ve already decided what you’re going to sell. Now pick a location carefully. If you have a specialty shop, people will come to you. You’re the only one that supplies their requirements, so location is less of a barrier. But for a regular store, a place that’s visible and high in traffic is a better deal. It will attract passers-by, and that incidental business makes up a big chunk of your bottom line. You might consider other aspects, like how close the shop is to your home, or to your kids’ school – so they can hang out there on the way home.
A bigger factor might be budget. Ideally, sales from the store should pay for themselves, but it may take a while to pick up. And even when it does, there will be slow months – that’s the nature of business. You want to be sure you can afford the rent, even in a month with no sales. Check the lease too, and double-check the agreement. Look for something that doesn’t lock you in for unreasonable periods, and that has a workable exit clause.
Security measures
Most shops require the basics – an alarm system and well-positioned CCTV. Modern surveillance systems can be linked to your smartphone, so you can monitor the security screens at any time, wherever you are. You could be sitting in traffic, take out your phone, pull up the store, and look at the feed from your security cameras. Just be sure to put the phone away while driving. “Don’t text and drive” covers other screen-based distractions too. You might have access to a quick-response emergency service, and you could deck the outside of the shop with floodlights and motion sensors.
This depends on your neighbourhood though, because lights triggered by movement could be tripped by outdoor pests and strays. You need a physical form of security as well, to support your tech. Roller shutters are a good choice. They’re solid enough, and their triple-layer construction makes them resistant to ramming (and crowbars). They offer insulation, are fireproof, weather-proof, and are available in lots of pretty colours. Their automatic latch mechanism clicks into place when you close it, but you can also padlock inside and outside.
Confirm your suppliers
It’s not possible to stock an entire shop in cash – it’s too expensive. Plus, because this is a new store, you don’t know what will sell and what won’t. You have to buy your stocks on credit. Make sure your suppliers are reliable. You don’t want to get an item that sells well then when you go back, they don’t have more of it. You also need to be very clear on stock agreements and payment terms. You can’t pay them until you get paid, but you can’t just keep their money for nine months either.
Find out their policies on returns. If an item stays on your shelf and doesn’t look like it’ll ever sell, can you give it back or exchange it for something more popular? What are their terms on (nearly) expired products? Do they deliver to your store or do you need to send someone? Are they willing to source things for you if they’re not in stock, and can you make a special order for something a customer has requested? These are all factors that could affect the success of your shop, so get them clear from the start. Good luck!
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