7 things you should know before starting a retail business

However, in other to be successful with this, it is important that we know the meaning of supply chain.

What is supply chain?

The supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to consumer.

How to start a retail business?

1. Write a business plan

It's worth thinking about. If you don't have family or friends who can help with reasonable contributions, a business partner can help. They can also help share the risk.

2. Determine the right business for you

It is quite funny that a lot of people venture into businesses because they think they have what it takes to do it. And often, the reverse is always the case.

Once you've succeeded in developing a business plan and have a clear idea of what it is you wish to retail, you will need to decide which type of retail model is right for you.

Traditional choices include store retailing, online retailing, non-store retailing (such as door-to-door sales, mail order, etc.) or a combination of any of these three.

3. Find the right location

No matter how hard and well they try to make it work, a ™ Lewin store will not function in my village. And this is because petty village earners cannot afford the fortune of a ™ Lewin shirt.

As a new retail business you definitely need to be where your customers are, and you can do this by simply finding out where the demands of your products are high.

Above all, when it comes to location, you'll want to ensure you combine visibility, accessibility, affordability and commercial lease terms that you can live with, through the good times and the bad.

4. Brand your retail business

In a country like Nigeria where packaging is everything, the importance of using a well packaged name, logo, or time line cannot be over emphasize.

A dumb logo or an awkward name will only birth a negative result.

5. Use the right suppliers

If there's one thing you must not forget when it comes to supplying customers demand, is that authenticity attracts customers.

And this is because when people trust your product, they help advertise you.

Africa is a porous region filled with all sort of fake products. Find the registered dealers or licensed wholesalers for your retail business. Link up with the manufacturers if you can and make use of them.

6. Advertisement

Advertise, advertise and advertise. T

The importance of advertising your business through the media or mouth to mouth can not be over emphasize. And this is because advertisement create awareness for your brand and business.

In a retail business, brand awareness is as important as meeting with demand.

7. Feasibility study

This is the summary of the whole list. Find out everything you need to know about your business, because this knowledge will surely pay off in the long run.

What are the types of Retailing?

1. Store retailing

In other to sell a particular product, the location of a store is taken into consideration.

Retail stores can be in different formats like a department store, supermarkets, convenience stores, discount store, off price retailers, and super stores.

2. Non-store retailing

Non-store retailing involve the use of electronic media or direct selling medium to sell a product to customers. And examples of non-store retailing are direct selling, tele-marketing, automatic vending or online retailing.

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