Opening a retail store can be a fun and financially rewarding experience that gives you the opportunity to build lasting customer relationships. Whether you intend to sell apparel, groceries, convenience items, sporting goods or practically anything else, though, the initial startup costs can burn through your available capital rather quickly. The good news is that you can a huge chunk of money by taking a few precautionary measures.
Shop Around For a Location
One of the biggest mistakes entrepreneurs make when opening a retail establishment is choosing the first store location they come across. Even if a location looks perfect, you should never sign a lease agreement until you’ve shopped around for other locations. Who knows, you could find a store that’s cheaper, cleaner and in a better location. The only way you’ll know, however, is if you get out there and start shopping around for suitable locations.
Used Store Fixtures
Another incredibly easy way to save money on a retail store opening is to opt for used fixtures rather than new ones. Buying an entire store’s worth of new gondolas is quite costly, but thankfully used models work just as well. Rather than purchasing brand new gondolas and fixtures for your store, consider buying used models instead. Depending on your store’s size, this alone could save thousands of dollars.
Shrinkage is a dreaded word that no store owner wants to hear or think about. As you may already know, shrinkage is defined as the loss of product between the manufacturer and point of sale. The most common cause of shrinkage is from theft, so keep this in mind when launching a retail store. Setting up some security cameras and installing a theft prevention system will naturally reduce your store’s shrinkage.
Do It Yourself
Rather than paying professional contractors and companies to perform all of the work in your store, try doing some of it yourself. Even if you have little-to-no experience in this field, chances are you can still paint the walls, clean the floors, and do other basic tasks.
Carefully Choose Marketing/Promotional Material
I know some store owners are eager to spend money on marketing and promotional material, but you should carefully choose the ones that will serve your needs best. Avoid overpriced marketing that will leave your business in a financial drain. Instead, focus on affordable marketing that directly draws more customers into your store.