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Tips for Retail Business

Every year, many businesses are going bankrupt, mainly because they do not take a detailed study and planning of the business. Let`s consider the most common mistakes and look at some interesting advices that you should consider in your company formation procedure.

The wrong choice of location

In retail, location has a paramount importance. People do not pave the path to your doorstep just because you offer a good product for the” right “price. Do not be tempted, like many small businesses, the choice of premises based on the low-rent or purchase price, as well as on the fact that you like the area. The choice of location must be in accordance with the proximity to your markets and potential buyers.

The absence or lack of knowledge about the size of market

Many small shops are bankrupts because the market may be large enough and not provide them with the necessary number of customers, or it can quickly be reduced by highly competitiveness, despite your expectations.

The absence or lack of knowledge about the motives of purchases

Some stores have little idea about the type of customers they serve. As a result, they can`t carry out sales promotion or develop a marketing strategy and generally, find it difficult to say what kind of business they are engaged. For example, a clothing store is considered the main factor in the price, whereas this market is dominated by the factors of quality and strength, will not be able to significantly increase sales. Do not lose sight of the characteristics of consumer demand in the planning of your business.

The absence of a system or policy for the selection, training of employees and management

Few of the new entrants to the retail trade has experience in leadership, selection and training of personnel, and it is not surprising that mistake in this area may appear later. A crooked or poorly qualified staff can negate all your profits. In forming the customer is your most valuable asset – a well-trained staff.

The inability to keep accounts

Many new and small businesses do not follow the ratio of the sales of goods for the current and previous months, do not know exactly what is the profit for the current month. Most often, they are either not aware of the financial statements, or do not have adequate administrative system. Shop, founded and managed in a similar way, has little chance of success. Without basic accounting information, your shop can go to the bottom and you will not even know what the problem is, until it is too late. Often ruin of retail stores comes as a result of theft of stocks of goods. An effective monitoring system will not only eliminate the losses, but also have accurate information for the purchase of the right products at the right time.

And now some  interesting advice to increase your sales in 2016

  • Sell not only goods, but also emotions. The main thing that the purchase of such products caused positive emotions.
  • Change the place of sold goods. Lay out products in unusual places for rationalists. Try to induce an emotional reaction to the product via tasting, sampling, show promotion.
  • Arrange discounts. A variety of bonuses and discounts will help to influence on budget conscious consumer.
  • Do individual offers. One-time draw cherry-picker can be a good deal. And to return them to the store, they should be included in a loyalty program, and one that will contain unique price offers.

That’s all for now.Good luck with your business in this year and walk and ye shall reach.

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