The Do’s and Don’ts of Starting Your Own Retail Brand

Retail is one of the powerhouse industries in our economy. It encompasses a seemingly endless list of companies and sub-industries from supermarkets and department stores to e-commerce websites. In most cases, retailers buy their goods from wholesalers and stock the goods in their own location at a new price. In other cases, independent retailers will make their own products to sell.

If you’ve been thinking of starting your own retail brand, you likely have several questions and aren’t sure where to even begin. In this article, we will explore the world of retail entrepreneurship and provide important do’s and don’ts.

Here’s what to consider if you’re interested in building your own retail brand.

Do: Find Your Niche

Retail is an umbrella term that can mean many things to many people. When starting any business, particularly in retail, it’s essential to know what products you plan on storing in your shop, warehouse, or on your online market. Are you looking to provide artisanal food products? Perhaps you’re looking to sell clothing to men or kids specifically? Knowing what you plan on selling will help you begin to plan your budget, find your suppliers, and create appropriate marketing strategies.

Don’t: Try to Do It All

Starting a business is challenging enough without feeling overwhelmed with your inventory. Unlike big-box stores, you don’t have the resources and staff to offer a wide variety of products. Instead, focus on a smaller scale of products that you can easily manage — especially if your current team can be counted on one hand.

Do: Identify Your Startup Costs

As a retail entrepreneur, several start-up costs must be kept track of to ensure you can sustain your current business model. Having a clear understanding of where your costs are coming from will help identify where you can cut costs and which expenses are a necessity.

Your location will be a significant factor — if you’ve opened a physical store, you’ll need to calculate your monthly rent and utilities. If you’re working solely online, your costs may be lower, but you’ll likely need somewhere to store your inventory.

Business insurance is crucial and commonly includes business property, income, liabilities, and crime insurance. With the proper insurance, you’ll have peace of mind knowing you’re protected in case any unexpected obstacles occur.

The cost of your merchandise will be a significant contributor to your overall budget. Purchasing and storing inventory should be calculated immediately to ensure you’re not overspending.

Don’t: Overspend

It can be easy to overspend in the early days of starting your business, but it’s important to be cautious of where your money is going. When purchasing inventory, avoid going overboard with quantities until you have a clearer picture of your customer base and volume of sales. Excess inventory can be costly to store, and you’ll still have to pay your suppliers, regardless of how much you sell — which can lead to the need for speedy installment loans to ensure you have the cash on hand to pay for your inventory.

Do: Build Healthy Relationships

As a business owner, you will rely on solid relationships to sustain your business. This starts with your suppliers. From the first phone call to the last order, each interaction should be executed with a commitment to fostering a healthy and long-lasting relationship. A crucial component to these relationships is the ability to pay your suppliers on time.

Don’t: Settle For the First Price

When it comes to entrepreneurship, the ability to negotiate without severing relationships will help you throughout your entire career. While you want to maintain a good relationship with vendors and suppliers, you should also be cautious of your bottom line and try to get the best price possible. This may take time, but always keep the lines of conversation with suppliers open and never settle for the first available price.

Do: Create a Strong Marketing Strategy

Depending on your niche, your marketing strategy may be simple or elaborate. Social media is a crucial part of marketing in today’s landscape and shouldn’t be overlooked, especially as a new business. The first step is to identify your competition and explore their customer base and their marketing approach. Learning what they do well and what they could improve on will help you avoid the same mistakes.

Don’t: Bombard Customers with Emails

If you’re adding an email subscription to your website or social media platforms, you’ll want to avoid hounding your customers with emails — no matter how well-intentioned they may read. If someone has subscribed to your company, it means they’re interested in what you’re selling and want to stay updated on promotions. If they feel like they’re receiving too many emails per day or week, they’re more likely to unsubscribe.