Retail Business Ownership: Preparation and Planning

Are you one of the thousands of Americans who have dreamed of starting your own business? Everyone who dreams of starting a business has their own reasons. Whether your reason is independence, the ability to be your own boss and make your own hours, or one of the many other reasons people take that entrepreneurial risk, starting your own business is a time-consuming and difficult task. Regardless of your reasons for wanting to have your own business; knowledge, preparedness and diligent planning will make the process much more smooth and your dream achievable.

Preparation is a step which unfortunately some future business owners overlook. However, this step is vital, especially for those who would like to lessen their risk as much as possible. There are different ways to prepare, but all of them include learning. One way to learn what you would need to know would be to attend a two or four year college and obtain a business related degree or certificate. This is a great choice, but it is made much better when coupled with job experience in a related field. Another way would be to become an apprentice to an owner or store manager in a business similar to one you would like to own. With this path, you can learn about running the business and gain experience simultaneously. Whichever path you choose, be sure to learn as much as possible about all the aspects of business. This will ensure that you do not overlook any aspects in your planning. When you feel prepared, and have a general understanding of all the aspects of planning and running a business, this is when your planning phase should begin.

One of the first steps you should take is choosing your location. This is important to do before many others steps because where you are will determine what you are allowed to do and how you will need to do it. There are many variables to consider when choosing where you will be doing your business. You must consider the population; who has the buying power, what are the trends, does enough traffic pass the location, and what are the demographics of the neighborhood. This would be a good time to do a market analysis of the locations you are considering. You must also be aware of your competition; the number of competitors in the area, the size of the competition, and the quality and aggressiveness of it. You also have to consider who your landlord will be. It is a good idea to find out if previous tenants were happy with them. They can give you a good idea of how they really do business and if there are any concerns you should be aware of. It is good to find out if they have any restrictions that will affect your business in a negative way, such as not being allowed to put up signs on the property (entrepreneur.com).

It is good to find out at this point what the laws and regulations are in the city you are planning on opening your business. Knowing these ahead of time and being prepared for any and all paperwork, forms, applications etc... will help you keep on track and minimize any bumps in your planning phase. For opening a business in California, the website calgold.ca.gov lets you select from a list, what type of business you would like to start, then based on your selections, gives you a list of permits and licenses you will need on local, city, state, and federal levels. An example of some of the permits and licenses you would need for a miscellaneous store retailer in San Marcos, California are: a business license, a fire department permit, fictious name filing, registration form for employers, a seller's permit, an employer identification number, and a proof of residency requirement. The website provides you with contact information you would need in order to file for all of these and other permits and licenses.

After you have carefully chosen your location and you know all the laws and regulations associated with owning a store in the city you have chosen, it is a good time to begin planning the layout and design of your store. "Store design is concerned with atmosphere, image, interior design, and exterior design factors. Store layout involves the internal arrangements of each department, selling and sales support allocation, and the evaluation of space productivity" (entrepreneur.com). There are two ways you can design and determine the layout of your store. The first would be to hire a professional such as an interior designer and the other way would be to do it yourself. Doing it yourself can be the right decision if you are up for the challenge, but it can also be tedious and actually cost you more if you do not do your research and know what you are doing. Hiring and interior designer or other professional, if it is in your budget, will save you a lot of time and energy on trying to answer questions like "where should the register be?", and "what colors should I use?". You will still be the one making the final decisions, but you will have the direction of someone who has spent as much time learning about design and layout as you have on business. This makes it nicer for you because you can spend your time focusing on other important details, like compiling all the information you have gathered so far.

The last step of planning is to do just that. Compiling all of the information you have gathered, as well as some other papers, will make your business plan. This is a vital step that will help others visualize the business you are creating and is a key ingredient in obtaining any financing. Any lender or investor will want to see your business plan. According to the Small Business Administration, it should include a description of your business, your marketing and operating procedures, your personnel, and information about your insurance (SBA.gov). Also included should be financial data such as loan applications, equipment and supply list, a balance sheet, a breakeven analysis, profit and loss statements, a three year summary and a cash flow statement. There should also be supporting documents such as past tax returns, a copy of lease agreements, any licenses or legal documents, resumes, and copies of letters of intent. The Small Business Association's website gives a perfect outline of what a business plan should look like and shows sample business plans as well.

Preparation and planning for a business are just the beginning, but with a solid foundation, you can feel more secure that your business will be successful. With a good education, a lot of research, time, and hard work; you can own your own business.

 

Works Cited

1. "Write a Business Plan." SBA.gov. 2008. Small Business Planner. October 17, 2008.

2. "How to Start a Retail Business." Entrepreneur.com. 2008. Retail Business Start-Up Guide. October 17, 2008. .

3. "Business Permits Made Simple." CalGold.ca.gov. 2008. Miscellaneous Store Retailer. October 22, 2008.