Learn2succeed.com Incorporated - Steps to Starting a Successful Retail Business: How to Find a Niche and Turn it into a Money Machine

ISBN: 978-1-55270-437-0

Written by:

Learn2succeed.com Incorporated

Published in Canada by:

Productive Publications, P.O. Box 7200

Station A, Toronto, ON. M5W 1X8

Phone: (416) 483-0634 Fax: (416) 322-7434

Canadian Web Site: www.ProductivePublications.ca

American Web Site: www.ProductivePublications.com

Front Cover Art:

Spider web adapted from copyright free clip art from Corel Gallery 200,000

Corel Corporation, 1600 Carling Ave.

Ottawa, Ont. K1Z 8R7

Copyright 2011 by Learn2succeed.com Incorporated

All rights reserved. No part of this publication may be reproduced, stored in retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without written permission of the author.

No representation is made with respect to the accuracy or completeness of the contents of this book and both the author and the publisher specifically disclaim any implied warranties of merchantability or fitness for any particular purpose and in no event shall either be liable for any loss of profit or any other commercial damage, including but not limiting to special, incidental, consequential or other damages.

Steps to Starting a Successful Retail Business

How to Find a Niche and Turn it into a Money Machine

Heres a book thats a little different! It shows you how to find a niche so that you can compete effectively against the big box stores. Find out where to get great ideas and how to direct import your own merchandise.

Learn how to research the market for the merchandise that you have selected. Then take a look at the legal structure for your business and how to register for sales tax permits.

Think about the importance of location and the hazards of lease renewals. Factors to consider in your layout and store fixturing. Dont ignore the importance of exterior and in-store signage, lighting and window displays.

Youll find a lengthy chapter which shows you how to advertise and use direct marketing to augment your sales.

Look at some of the factors you may want to consider when hiring staff and be alerted to the horrendous increase in theft by staff and shoplifters.

Find out how to use planogramming to fine-tune the position of merchandise within your store and how to determine whether you should discontinue certain lines.

Extend your reach beyond your bricks and mortar operation by using the World Wide Web to advertise your merchandise. Learn how to set up your own Web site and how to open your own e-commerce store so that you can accept online orders. Also, find out how to drive traffic to your Web site.

Finally, why you need a business plan before you start and how to use it to arrange financing.

This book will show you how to operate a retail store in the digital age and turn it into a money machine! If you have ever wanted to go into retail, you should start by reading this book first. Youll get tons of great ideas!

In the USA, there are about 4.9 million retail outlets and the industry employs about 15.5 million people. The US Census Bureau estimated that retail sales in 2007 exceeded $4 trillion. To be honest, this figure included sales of automobiles and the food service industry. Even if these items are excluded, it is still an enormous figure.

In Canada there are almost a quarter of a million retail outlets according to the Retail Council of Canada. In 2006, these outlets generated about $390 billion in sales and are the second largest employer in the country with over 2 million workers.

So, the retail industry on both sides of the border is a major force to be reckoned with.

Retailers face enormous challenges in the current economic downturn. Indeed, a Michigan-based turnaround consulting firm, AlixPertners estimates that over one-quarter of all large retailers will either file for bankruptcy or face severe financial distress during 2009 and 2010.

With predictions such as this, it is incumbent on anyone entering this area to do so very carefully and I would recommend that you try to find a niche market where you may be less exposed to the downturn.

Obviously, if you sell some kind of necessity, you are less likely to get sideswiped by the economy. Products which reduce energy consumption and others that can help people save money could provide examples.

One area which usually does well in severe economic downturns is entertainment. Indeed, Hollywood got a tremendous boost during the Great Depression. People flocked to the movies to escape the realities of everyday life. Obviously, the movies have changed as people purchase DVDs or download over the Internet.

Another instance was an ice cream parlour which sold expensive ice cream in a very economically depressed area of Atlantic Canada. Even though people could hardly afford it, they spent a much higher than normal amount on an ice cream just to feel good. So hard times do not necessarily mean Kraft Macaroni for supper every night!

Recession, does not necessarily spell disaster. In every downturn there are opportunities. The trick is to find them!

It is possible that people with hobbies such as collecting toy trains, will retreat into their basement and enjoy their hobby to escape from the reality of the outside world.

A classic example is Georges Trains in Toronto. It was established in 1962 by George Orieux to serve the model train hobbyist. It offers a huge line of model trains, accessories and other vehicles which cannot be found in the major box stores such as Wal-Mart.

Another example is the Little Dollhouse in Toronto which boasts of being the largest and oldest retailer of miniature dollhouses in Canada.

If you have the money to travel, it would be a good idea to examine the merchandise in stores in foreign countries, since these can be a great inspiration for new products that are not available in your local market.

Essentially, trade shows are of two types. There are those that are open to the public, such as many of the sportsmans shows, food shows, home shows and gardening shows, etc., and these are held (usually on an annual basis) in major centres around the country. They are easy to gain access to... all you have to do is pay the entrance fee and you are admitted.

The other type of trade shows are those which specialize in specific industries or services and are intended only for people who work in these areas. In other words, admission is not open to the general public and for that reason I would strongly suggest that you prepare yourself by registering a name for your business and have business cards printed with all your contact information. Often, a business card is all that is needed to gain admission onsite, however, there is usually an admission fee.

An alternative is to contact the show organizers in advance and request a show registration form which you can complete and mail or fax back to the organizer who will then mail you your admission badge. In order to contact the show organizers, I would recommend that you visit your local reference library and they should be able to supply you with directories of trade shows that are held both in North America and throughout the world.