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Is Retail for Me?

List 1. Five Personality Questions Retailers Must Honestly Ask Themselves

Answer the following five questions honestly. Even if you are suited to be a business owner, is a consumer-focused business for you? Are you better suited to be a wholesaler, a distributor, or a manufacturer?
As a reality check, talk with your spouse, best friend, or prospective partner about your answers.
1. Are you good at multitasking? In retail, every day can be a stretch, as you encounter customers, employees, vendors, and landlords. You can't say, "That's not my job." It's all yours.
2. What is your risk tolerance? In a start-up retail business, you must adjust quickly to unplanned events or prefer more predictable, organized projects. Sometimes you must see risk as an opportunity rather than a threat.
3. Do you count on a paycheck? If you break out in a cold sweat if you aren't paid on the same day every month, you may want to rethink going out on your own. Most of the money you make will go right back into inventory and other costs of doing business.
4. Are you a self-starter and comfortable being alone? In your own business, you must lead, knowing what to do and when to do it, and be fully accountable for everything that happens.
5. Do you value predictability or prize diversity? Retailers need to be people-oriented, flexible, and good-natured.
Source: “How to Start a Retail Business,”

List 2. 14 Questions to Measure Your Retail Quotient

People with high “retail quotients”—the ability to weather the ups and downs of the retail industry—are self-aware, decisive, patient, strategic thinkers, courageous, and good students. Answer the following questions to estimate your RQ.

1. Why am I entering retailing?
2. Which business am I starting?
3. What goods or services will I sell?
4. Where will I get my goods or talent?
5. What is my market and who are my consumers?
6. Who are my competitors?
7. Can I compete successfully with the competition?
8. What is my sales strategy?
9. What marketing methods will I use?
10. How much money is required?
11. Where will the money come from?
12. What technical and management skills do I need?
13. Where do I want to be in five years?
14. Do I want equity, income, or both?

Start Your Own Successful Retail Business.

List 3. 15 Questions to Answer in Deciding to Buy or Start a Retail Business

Will buying this business give you a jump-start into retailing or waste precious resources trying to breathe life into someone else’s failed dream? Ask yourself these questions when you consider buying a retail business.
1. Do I have the interests, skills, temperament, and experience to step in and run this business the right way?
2. Do I have enough money to buy and operate the business and still have a reserve fund for unexpected needs?
3. What are the market trends for this business?
4. How many years has this business been in operation, and how many owners has it had?
5. Why is this business for sale?
6. What am I actually buying—physical assets, name, location, customer list, existing business, or projected business?
7. Are the books accurate?
8. Is a profit being earned?
9. Are the operating ratios compatible with industry averages?
10. What is the worth of the business’s assets?
11. Are the employees highly trained and productive?
12. Are the customers loyal to the present owner or to the store?
13. How long is the current owner willing to spend assisting in the smooth transfer of the business?
14. Does the business need an immediate cash infusion?
15. Is the owner reluctant to cooperate in providing details and answers?

List 4. The Five Things for Which Retail Experts Advise New Merchants to Prepare

Until the late 1990s, buyers and sellers conducted trade through three channels: in person, by phone, and by mail. The internet has become the fourth way for consumers to get what they want.

1. Doing business 24 hours a day, 7 days a week
2. Making price comparisons with sources around the world
3. Consumers’ web research influencing billions of dollars in offline sales
4. Consumers turning to the Internet in record numbers to fulfill their gift-giving and other purchasing wants and needs
5. Retail competitors conducting business online and building relationships with customers through e-mail, forums, and chat rooms

List 5. The Seven Most Common Physical Store Categories

1. Off-price enterprises, e.g., Kmart, Target
2. Convenience stores, e.g., 7-Eleven, Circle K
3. Membership warehouse clubs, e.g., Costco, BJ’s
4. National and regional chains, e.g., Starbucks, Nordstrom
5. Category-killer stores, e.g., Home Depot, Best Buy
6. Conventional supermarkets, e.g., Safeway, Kroger Co.
7. Specialty stores, e.g., Crabtree & Evelyn, Victoria’s Secret

List 6. Top Ten Causes of Retail Failure

Be ready to reinvent yourself and your company to survive and thrive. Below are the top ten reasons retail businesses go under.

1. Macro-economic factors
2. Management incompetence
3. Poor sales
4. Heavy expenses
5. Neglect
6. Disaster
7. Capital problems
8. Fraud
9. Customer problems
10. Overexpansion
11. Corruption in politics of regulations
12. Sabotage
13. Exclusion
14. etc.

Retail Finances and Financial Facts

List 7. The Five Highest-Yielding Retail Businesses

According to the Risk Management Association, an association of lending, credit, and risk management professionals that serves the financial services industry, the following are the five retail businesses that yielded the highest operating profit percentages. (The operating profit is the gross profit minus operating expenses.)
1. Used merchandise stores 6%
2. Jewelry stores 5.9%
3. Candy stores 5.7%
4. Bakeries 5.3%
5. Optical goods stores 5%

We disagree, there are other in retail that yielded the highest operating profit percentages.

List 8. 17 Common Retail Business and Their Average Start-up Costs

Below is a sampling of businesses and ballpark start-up cost figures gathered from researchers and retailers.

1. Costume/novelty shop $30,000-50,000
2. Alterations $500-3,000
3. Amusement arcade $90,000
4. Antique dealer $15,000-50,000
5. Art gallery $35,000-100,000
6. Balloon decoration store $500-1,000
7. Carpet cleaning $500-20,000
8. CD exchange $60,000-100,000
9. Child care $500-15,000
10. Coffee shop $15,000-250,000
11. Dance instruction $20,000-45,000
12. Dating Service $15,000-100,000
13. Doll houses $6,000-15,000
14. Elder care $5,000-11,000
15. Flower shop $30,000-90,000
16. Gift baskets $2,000-40,000
17. Health food store $30,000-80,000

List 9. Nine Unforeseen Expenses That Can Throw off a Retail Store’s Start-up Projections

Retail stores need to take into consideration the following expenses before starting a store.

1. The unexpectedly large expense of an attention-gathering grand opening
2. Changes in sales taxes
3. Difficulty attracting customers in your market
4. Changes in consumer styles, preferences, and demand
5. New competitors in your area and on the internet
6. Price increases by your suppliers
7. The cost of shoplifting and spoiling, depending upon your genre of retail business
8. The cost of stocking your shelves before making the first sale
9. Retail seller’s permit deposit

List 10. Advice on Point-of-Sale Computer Expenses

Point-of sale systems vary dramatically in cost depending on features, functions, and the number of stations in your store’s network. Here are some sample prices for hardware and software to give you a ballpark to play in.

1. Magnetic strip reader $235
2. Credit card processing software $395
3. Thermal receipt printer $375
4. Cash drawer $185
5. Bar-code scanner $225
6. Laser bar-code scanner $595
7. Pole price display $185
8. Cash register $150
9. Touch-screen POS system $1,995
10. Canfield POS complete Windows system $1,099
11. QuickSell 2000 for Windows software $685

List 11. The Average Gross Retail for 20 Common Retail Businesses

According to the Risk Management Association, an association of lending, credit, and risk management professionals that serves the financial services industry, the average gross profits for various retailers before taxes are as follows, in alphabetical order.

1. Miscellaneous home furnishings 3.7%
2. Apparel and accessories 2.0%
3. Auto parts 2.5%
4. Bakery items 3.8%
5. Boats 1.8%
6. Cameras 3.5%
7. Candy 5.0%
8. Catalog and mail order items 0.5%
9. Flowers 2.7%
10. Furniture 2.5%
11. Gifts and souvenirs 3.6%
12. Household appliances 3.5%
13. Jewelry 4.8%
14. Liquor 1.3%
15. Motorcycles 3.6%
16. Musical Instruments 2.7%
17. Nursery items 3.4%
18. Sporting goods 2.0%
19. Stationery 1.7%
20. Women’s Clothing 2.3%

The Importance of Retail Locations

List 12. 16 Questions to Answer in Deciding on Real Estate

1. How much retail, office, storage, or workroom space do you need?
2. Is parking space available and adequate?
3. Do you require special lighting, heating or cooling, or other installations?
4. Will your advertising expenses be much higher if you choose a relatively remote location?
5. Is the area served by public transportation?
6. Can the area serve as a source of employees?
7. Is there adequate fire and police protection?
8. Will sanitation or utility supply be a problem?
9. Is exterior lighting in the area adequate to attract evening shoppers and make them feel safe?
10. Are customer restrooms available?
11. Does the store have awnings to provide shelter during bad weather?
12. Will crime insurance be prohibitively expensive?
13. Is the trade area heavily dependent on seasonal business?
14. Is the location convenient to where you live?
15. Do the people you want for customers live nearby?
16. Is the population density of the area sufficient?

List 13. Six Key Points to Consider When Choosing a City

Selection of a retail location requires time and careful consideration. A retail firm cannot survive in a poor location because customers will avoid patronizing a place that is not easily and safely accessible. Don’t rush to make a decision. If you haven’t found a suitable location, don’t plan to open until you’re sure you’ve got what you want. Remember: opening a retail business in a poor location is fatal to success.

Choosing the right city is very important to a retail businesses long-term success. Below are six key points to take into consideration when choosing a city for your retail business.

1. Size of the city’s trading area
2. Population and expected population trends
3. Total purchasing power and who has it
4. Total retail trade potential for different lines of trade
5. Number and size of competition
6. Quality and aggressiveness of competition

List 14. Eight Key Points to Consider When Choosing the Location Within a City

Once you have chosen a city in which to locate your business, take the time to research the proper location within that city to open up shop. Below are eight key points to mull over when choosing a location.

1. Customer attraction power
2. The nature of competition
3. Availability of access routes to the retail store
4. Zoning regulations
5. Geographic direction of the city’s expansion
6. General appearance of the area
7. Sales and traffic growth prospects of the trade area
8. Demographics of the surrounding neighborhoods

List 15. Five Key Points to Research When Choosing the Exact Location

Now that you have decided which area of town will be the best location for your business, take your time to choose exactly the best spot. Here are five key points to consider.

1. Traffic flow
2. Complementary nature of neighboring stores
3. Adequacy of parking
4. Vulnerability to competition
5. Cost of the site

List 16. Three Zoning Questions to Answer Before Committing to a Location

Your town's zoning commission can give you the latest mapping of the retail location and surrounding areas that you are considering. Below is a short list of questions to answer.
1. Are there restrictions that will limit your operations?
2. Will construction or changes in city traffic or new highways present barriers to your store?
3. Will any competitive advantages you currently find at the location you're considering be diminished by zoning changes that will be advantageous for competitors or even allow new competitors to enter your trade area?

Layout Considerations for Successful Stores

List 17. 13 Important Factors to Consider When Designing Your Store

Whether you design the floor plan yourself or hire a retail design team, here are 13 important pieces of information you’ll want to have ready before you begin.
1. A profile of your target customer (age, ZIP codes, lifestyles, spending patterns)
2. Requirements for the types of products to be stocked
3. The store’s positioning (fashion, attitude, price levels, philosophy, etc.)
4. Planned product mix for store (required stocked density and presentation needs)
5. Proposed departmental complements (what goes next to what)
6. Window and internal display considerations
7. Stockroom requirements
8. Back-office requirements
9. Staff room requirements
10. Checkout requirements (wiring needs for electronic point-of-sale equipment, credit authorization telephones, and security equipment)
11. Specific needs for fitting rooms, customer service desks, seating areas, showrooms, etc.
12. The length of time the décor is required to last before updating
13. A target price per square foot you are prepared to pay

List 18. The Seven Principles of Retail Space Allocation

Once you’ve decided on a layout for your business, turn your attention to space allocation. Below are seven fundamental principles to guide you.

1. Show all merchandise to all customers.
2. Give choice locations, where inside customer traffic is heavy, to the most profitable items.
3. Discourage shoplifting.
4. Experiment to stay exciting.
5. Locate related lines next to each other.
6. Locate related departments next to each other.
7. Give the most important lines the best locations in your store.

List 19. Seven Ways to Improve Your Retail Environment

The demand for a quality experience, price value, and time savings will continue. As a retailer, you always need to look for ways to improve your retail environment. Many retailers believe the seven following steps are competitive essentials in the retail business.
1. Make sure your store is easy to navigate.
2. Make the merchandise accessible.
3. Have product information readily available.
4. Ensure that sales associates are focused on providing personal assistance.
5. Find and keep good employees.
6. Help customers help themselves in your store.
7. Offer 24-hour shopping convenience online.

List 20. Five Major Questions to Answer When Evaluating Your Floor Plan

The following yes/no questions are crucial in evaluating your physical facilities plan.
1. Is adequate emphasis placed on space productivity?
2. Are flexible fixtures used where possible?
3. Does signage provide adequate information to shoppers?
4. Does the atmosphere support the other elements of the marketing plan?
5. Is merchandise arranged for easy cross-selling wherever possible?

List 21. 20 Common Display Fixtures

Always use display fixtures and equipment that complement the décor of your interior. If your budget for fixtures is limited, you may be wise to purchase or rent less expensive fixtures rather than cut back on the amount of inventory to display. Below are 20 fixtures you’ll find in most retailer businesses.
1. Back counters
2. Baskets
3. Carts
4. Counters
5. Display cases
6. Display shelves
7. Display tables
8. Easels
9. Floor stands
10. Island displays
11. Pegboards
12. Racks
13. Self-service stands
14. Shelving
15. Showcases
16. Stick bins
17. Storage cabinets
18. Tiered tables
19. Work tables
20. Wrapping desks

Layout Considerations for Successful Stores

List 21. 13 Important Factors to Consider When Designing Your Store

Whether you design the floor plan yourself or hire a retail design team, here are 13 important pieces of information you’ll want to have ready before you begin.
1. A profile of your target customer (age, ZIP codes, lifestyles, spending patterns)
2. Requirements for the types of products to be stocked
3. The store’s positioning (fashion, attitude, price levels, philosophy, etc.)
4. Planned product mix for store (required stocked density and presentation needs)
5. Proposed departmental complements (what goes next to what)
6. Window and internal display considerations
7. Stockroom requirements
8. Back-office requirements
9. Staff room requirements
10. Checkout requirements (wiring needs for electronic point-of-sale equipment, credit authorization telephones, and security equipment)
11. Specific needs for fitting rooms, customer service desks, seating areas, showrooms, etc.
12. The length of time the décor is required to last before updating
13. A target price per square foot you are prepared to pay

List 22. The Seven Principles of Retail Space Allocation

Once you’ve decided on a layout for your business, turn your attention to space allocation. Below are seven fundamental principles to guide you.

1. Show all merchandise to all customers.
2. Give choice locations, where inside customer traffic is heavy, to the most profitable items.
3. Discourage shoplifting.
4. Experiment to stay exciting.
5. Locate related lines next to each other.
6. Locate related departments next to each other.
7. Give the most important lines the best locations in your store.

List 23. Seven Ways to Improve Your Retail Environment

The demand for a quality experience, price value, and time savings will continue. As a retailer, you always need to look for ways to improve your retail environment. Many retailers believe the seven following steps are competitive essentials in the retail business.
1. Make sure your store is easy to navigate.
2. Make the merchandise accessible.
3. Have product information readily available.
4. Ensure that sales associates are focused on providing personal assistance.
5. Find and keep good employees.
6. Help customers help themselves in your store.
7. Offer 24-hour shopping convenience online.

List 24. Five Major Questions to Answer When Evaluating Your Floor Plan

The following yes/no questions are crucial in evaluating your physical facilities plan.

1. Is adequate emphasis placed on space productivity?
2. Are flexible fixtures used where possible?
3. Does signage provide adequate information to shoppers?
4. Does the atmosphere support the other elements of the marketing plan?
5. Is merchandise arranged for easy cross-selling wherever possible?

List 25. 20 Common Display Fixtures

Always use display fixtures and equipment that complement the décor of your interior. If your budget for fixtures is limited, you may be wise to purchase or rent less expensive fixtures rather than cut back on the amount of inventory to display. Below are 20 fixtures you’ll find in most retailer businesses.
1. Back counters
2. Baskets
3. Carts
4. Counters
5. Display cases
6. Display shelves
7. Display tables
8. Easels
9. Floor stands
10. Island displays
11. Pegboards
12. Racks
13. Self-service stands
14. Shelving
15. Showcases
16. Stick bins
17. Storage cabinets
18. Tiered tables
19. Work tables
20. Wrapping desks

Pricing Your Products Just Right

List 26. The Top Ten Merchandise Pricing Factors

Price is the centerpiece of your relations with your customers, the weapon competitors use to steal market share, and the reason for many sleepless nights. Use the pricing factors listed below in your decision-making strategy.
1. Availability (number of suppliers, quantity produced, and delivery)
2. Perceived image
3. Growth stage of market
4. Price sensitivity of the market
5. Legislative and financial climate
6. Prestige of the product
7. Differences in available products or services
8. Quality
9. Competition
10. Your financial goals

List 27. Financial Targets to Consider When Pricing

Narrowing the decision-making process even further, give careful consideration to your specific pricing objectives and how you will reach them. Target your merchandise pricing around specific financial ratios and benchmarks to help you achieve your goals. Here are a few examples of pricing strategies around financial measures.
1. Return on investment. Set prices that will yield a specific return-of-profit percentage on your investment.
2. Maximum profit. Set prices to produce the highest possible profit percentage you can expect to earn on the goods you sell.
3. Sales increase. Set prices that should produce a specified percentage increase in overall store sales. Usually this involves reducing prices to sell more merchandise.
4. Improved cash flow. Set short-term prices to bring more sales dollars into your business.

List 28. Ten Questions to Keep Your Prices Consistent with Your Brand Identity

New business owners are often tempted to give the business away to get sales, but this practice is not advisable. Realistic pricing indicates your confidence in what you are selling; if you value your service, so will customers. Keep these simple questions handy and use them often to make sure you are staying consistent with your store’s brand.

1. What role do you want price to play in your overall retailing strategy?
2. Will you price below, at, or above the market?
3. Will you set specific markups for each product?
4. Will you use a one-price policy rather than bargain with customers?
5. Will you offer discounts for quantity purchases or to special groups?
6. Will you set prices to cover the full costs of every sale?
7. Will you experiment with odd or even price endings to increase your sales?
8. Do you know the maximum price customers will pay for certain items?
9. Do your customers expect sales at certain times of the year?
10. How will you react to competitors’ price changes?

List 29. Five Tips to Increase Sales of Your “on Sale” Items

Retailers can find difficulty in closing out products that are seasonal, fashion-oriented, artsy, or edible, but here are five things you can do.
1. Use price points instead of percentages.
2. Set up small displays in your clearance areas.
3. Do not let your clearance items look like junk.
4. Keep the markdown area well lit.
5. Use tables for large quantities of clearance items.

List 30. Six Ways to Learn What Your Customers Are Thinking and How to React

The best way to sell your customers more merchandise is to learn what they want from your store. Below are a few easy steps you can take to get to know your customers.
1. Ask front-line personnel what shoppers are saying.
2. Use customer satisfaction surveys with plenty of blank spaces for write-in comments.
3. Interview customers who have recently given their business to another company.
4. Interview recently lost prospects to find out why they did not buy what you were offering.
5. Use customer focus groups.
6. Read newspaper, magazine, and industry reports.

List 31. Seven-Step Guide to Resist the Urge to Slash Prices to Compete

One approach to retail is to focus on your store’s success, not on creating failure for your competitors. Below are some guidelines to help you resist the urge to slash prices to compete. Create customer value by providing a reason for the customer to do business with you.

Focus on customers who want what you have.
Be different!
Don’t compete with yourself.
Set your prices to reflect the value customers place on the quality or the quantity of your products or services.
Deliver on your promises.
Be courageous and live up to your word.

Retail Competition—More than Price Wars

List 32. Tips on Researching Your Competitors

According to Chain Store Age magazine, here’s how the top 100 retailers break down in sales by category.

1. Supermarkets 24%
2. Discount stores 14%
3. Hard-lines stores 11%
4. Drugstores 7%
5. Super centers 7%
6. Department stores 7%
7. Home centers 6%
8. Warehouse wholesale clubs 6%
9. Sears, J.C. Penney 6%
10. Apparel stores 4%
11. Electronic retailers 4%
12. Mail order catalogs 1%
13. Military exchanges 1%
14. Convenience stores 1%
15. Shoe stores 1%
16. Catalog showrooms 0.2%

List 33. The Six Types of Retailing in the Competitive Marketplace

To give you an overview of the competitive marketplace, here are six ways of selling to consumers. At this point in your exploration, anything is possible for you.

1. Store retailing. Store retailers operate fixed point-of-sale locations designed to attract a high volume of walk-in customers.
2. Specialty retailing. Specialty retailers tend to sell "wants." They focus more on neighborhood convenience, the richness of the shopping experience, and inventory that meets the needs of their target customer on a personalized basis.
3. Non-store retailing. Totaling over $123 billion in retail sales, this sector has over 44,000 non-store retailers in the United States. These businesses are primarily engaged in the retail sale of products through television, electronic shopping, paper and electronic catalogs, door-to-door solicitation, in-home demonstration, portable stalls, and many more.
4. Mail order. From glossy wish books to basic brochures, catalogs are popular with those who live far from shopping areas, the elderly, those seeking the unusual or obscure, and those who simply hate to shop. An up-to-date mailing list is the key to direct-mail profits with back-end fulfillment and relational database support.
5. The internet. The internet has changed the retail landscape, connecting companies, markets, and individual consumers. Regardless of the type of retail business you want to start, you cannot ignore the internet. Don't let it discourage you, either. Each type of retailing has strengths and weaknesses, so you decide which approaches you want to use in your business.
6. Vending machines. This business is highly appealing because of the low start-up cost, low working capital, and low overhead. This is a cash business, with you collecting the money when you replenish supplies.

List 34. The Five Areas of Specialization That Can Make a Retailer a Contender Unique Retail Marketing Techniques

Marketing is often the most creative and fun part of running a retail business. Below are certain marketing tools and techniques with which retail stores especially should experiment.

1. Catalogs
2. Classes and workshops
3. Collectors clubs
4. Frequent buyers program
5. Gift certificates
6. Gift with purchase
7. Loyalty programs
8. Pledge on sales
9. Product demonstrations
10. Special in-store events
11. Window displays
12. Yellow Pages ads and listings

The Guts of Retail—Inventory Management

List 35. Five Steps for Developing and Maintaining the Best Possible Suppliers

Here are five simple suggestions you can use to develop a supplier base you can be proud of.

1. Limit the number of vendors in each category and become important to them.
2. Compare the benefits of the manufacturers’ programs and how they will fit in with your strategy.
3. Evaluate the distribution pattern, sales pattern, sales margin, and gross margin potential of each potential supplier.
4. Make sure each resource’s service and warranty policies meet your standards for customer satisfaction.
5. After you’ve selected your key vendors, continue to evaluate their product, service, and distribution methods.

List 36. Six Bases for Evaluating Your Suppliers

Likableness and price alone won’t satisfy your needs. Here are some areas in which you can rate your suppliers’ services for comparison.

1. Company profile (capacity, technical service, geographical locations, etc.)
2. Products (quality, price, packaging, uniformity, warranty, etc.)
3. Services (timely deliveries, condition on arrival, rejections, handling complaints, emergency aid, technical assistance, supply up-to-date catalogues, etc.)
4. Sales personnel (knowledgeable of company, products, industry, business, etc.)
5. Sales calls (properly spaced, by appointment, planned and prepared, mutually productive, etc.)
6. Service (quote promptly, follow orders, expedite delivery, etc.)

List 37. The Five Principles of Supplier Legal Compliance

To help fight the problem of so-called “sweatshops,” all members of the National Retail Federation endorse the organization’s Statement of Principles on Supplier Legal Compliance. The five principles are as follows:

1. Commit to legal compliance and ethical business practices.
2. Choose suppliers who share that commitment.
3. Include contractual language requiring their suppliers to comply with the law.
4. Take appropriate action if a supplier has violated the law.
5. Support and cooperate with law enforcement authorities in the proper execution of their responsibilities.

List 38. Five Broad Steps to Establishing Your Inventory

Here is a simple procedure to follow to help you decide which merchandise you should offer and which you should not.

1. Divide your inventory into broad classifications.
2. Divide each broad classification into subclassifications.
3. Allocate a certain percentage of your capital to each subclassification.
4. Locate resources that will sell you the products you want to stock.
5. Make sure each item purchased gives you the best possible markup and that the retail prices fit the price lines you have set for your operation.

List 39. Essentials for Retailers

Below is a checklist of the items that retailers need in addition to merchandise. Make sure you budget for them.

1. Bags (merchandise, garment, shopping)
2. Boxes (takeout, gift, shipping)
3. Feedback/suggestion cards
4. Gift cards
5. Gift certificates
6. Gift-wrap
7. Guest book for mailings
8. Layaway/installment contracts
9. Promotional items (magnets, pens, key chains, etc.)
10. Promotional literature (catalogs, fliers, brochures, posters, etc.)
11. Web page ordering and store location information

Operations—Safe and Secure

List 40. 11 Worksheets to Have Prepared Before Starting in Retail

Some of these forms apply to all businesses, and some especially to retail. All are worth developing and planning to use often in retail. Templates for each of these forms can found online or you can get them from your accountant.

1. Start-up expenses spreadsheet
2. Petty cash form
3. Layaway record
4. Merchandise return form
5. Discount worksheet
6. Cashier’s till record
7. Daily cash record
8. Back-order record sheet
9. Receiving slip
10. Gift certificate
11. Store credit slip

List 41. Nine Common Operational Chores of a Retail Store Owner

Below are just a few of the tasks you will need to perform to operate your retail business successfully.

1. Meet with customers daily (hopefully).
2. Buy, manage, and control inventory.
3. Display merchandise in new and attractive ways.
4. Correspond by internet or mail with suppliers and customers.
5. Create and maintain a relational database for sales, service, and supplier records.
6. Make new signs and promotions.
7. Print and affix price tags.
8. Prepare personnel schedules.
9. Track shipments in and out of store.

List 42. Tips on Computer Functionality in the Retail Environment

Computerization of critical management tasks can make small retailers competitive. The hours you save will keep your lights on and cash register ringing up sales. Below is a list of computer functionalities many retailers find useful in running their retail businesses.

1. Automatic billing
2. Balance the books
3. Calculate and file taxes electronically
4. Electronic cash register
5. Financial analysis and projections
6. Generate sale and trend reports
7. Payroll
8. Maintain customer and supplier files
9. Maintain employee records
10. Manage shelf space effectively
11. Manage accounts payable and receivable
12. Prepare interim financial statements
13. Print and store correspondence and mailing labels
14. Produce business forms
15. Produce promotional materials
16. Replenish stock quickly
17. Track activity by time periods
18. Update inventory

List 43. Seven Factors to Consider When Staffing Your Retail Store

How many employees is enough? The quick answer is as many as it takes to ensure complete customer satisfaction. Here are a few points to consider in deciding how many staff members your business requires.

1. Size. Generally, the bigger the store, the more employees needed.
2. Configuration. A single-floor firm will need fewer staff than a multi-floor store of the same size.
3. Type of product. The higher the price and complexity of the product, the more personal selling is required. More personal selling means more employees.
4. Opening hours. The number of workdays and the hours of business may require shifts and flexible work times.
5. Patterns of trade. The concentration of sales at certain times of the day or on certain days of the week will affect staffing needs.
6. Sales density. The higher the sales per square foot, the more staff you’ll need.
7. Business location. A homestead business increases its chances of experiencing zoning problems with every employee it adds.

List 44. The Employee Bible

Here are 14 topics and procedures every retail employee handbook should cover.
1. Company philosophy
2. Company benefits
3. Hours of operation and reporting hours
4. Procedures for reporting an illness, absence, or family emergency
5. Standards of behavior
6. How to greet customers
7. Telephone etiquette
8. Procedures for dealing with unhappy customers
9. Procedures for dealing with people suspected of shoplifting
10. Procedures for making suggestions for company improvement
11. How to use all equipment
12. Procedures for serving customers
13. Where to get product or service information
14. Emergency procedures

List 45. Seven Questions to Consider in Maintaining Store Safety

When you invite customers into your store, you are responsible for their safety on your premises. Evaluate your liability risks from your customers’ point of view by walking through your business, from curb to alley, noting various sources of possible danger. Below are seven questions to consider when safety checking your retail premises.

1. Are the front of the store and the sidewalk well maintained?
2. Is the parking lot even and well marked?
3. Do the entry and exit doors open easily?
4. Do the aisles, restrooms, and access meet Americans with Disabilities Act standards?
5. Are the aisles wide enough for easy passage?
6. Are the lights set up so as to not shine into customers’ eyes?
7. Are the edges of counters and displays safe?

List 46. Seven Simple Precautions to Take to Discourage Shoplifting

Retail stores report losing $26 billion a year to shoplifting. Every day approximately 5,400 people are detained for shoplifting in the U.S., according to security management. Pay attention to everyone in your store. Shoplifting can be a major financial burden to any retailer. Below are simple precautions you can take to reduce shoplifting in your store.

1. Keep small, expensive items locked up at all times.
2. Use convex mirrors to eliminate blind spots.
3. Install video monitors throughout the store.
4. Do not clutter the floor plan. When everything is wide open, salespeople can observe everyone in the store.
5. Hire security guards.
6. Use cable, security bars, and locking racks when possible.
7. Do not assume that only customers are capable of shoplifting. Often employees are the largest source of product disappearance.

List 47. The Five Most Common Forms of Employee Theft

Research indicates that more than 80 percent of all employees steal from their employers. The five main categories of employee theft are below. Take note of each for your own safety.

1. Merchandise
2. Supplies
3. Cash from the register
4. Conspiracy with shoplifters
5. Conspiracy with delivery persons

Helpful Retail Resources

List 48.
Ten International Business Associations
Refer to International Trade publication
Nine Americanl Trade Associations

The presence of an effective organization can strengthen your business and save you money through group advertising and promotion programs, group insurance plans, and collective security measures.

American Apparel and Footwear Association 1601 N. Kent Street, Suite 1200 Arlington, VA 22209 (800) 520-2262 www.apparelandfootwear.org

American Booksellers Association 200 White Plains Road Tarrytown, NY 10591 (800) 637-0037 www.bookweb.org

Cosmetic, Toiletry and Fragrance Association 1101 17th Street, NW, Suite 300 Washington DC 20036 (202) 331-1770 www.ctfa.org

National Grocers Association 1005 North Glebe Road, Suite 250 Arlington, VA 22201 (703) 516-0700 www.nationalgrocers.org

National Home Furnishings Association 3910 Tinsley Drive, Suite 101 High Point, NC 27265 (800) 888-9590 www.nhfa.org

National Register of Apparel Manufacturers 110 East 9th Street, #AL-19 Los Angeles, CA 90079 (213) 622-3601 www.thenationalregister.com

National Retail Federation 325 7th Street, NW 1100 Washington, DC 20004 (800) NRF-HOW2 (673-4692) www.nrf.com

National Retail Hardware Association 5822 West 74th Street Indianapolis, IN 46278 (800) 772-4424 www.nhra.org

National Shoe Retailers Association 7150 Columbia Gateway Drive, Suite G Columbia, MD 21046 (410) 381-8282 www.nsra.org

List 49. List of Large Fixture Suppliers

1. Leggett & Platt Inc., Vernon Hills, IL, (417) 358-8131, www.leggett.com
2. Madix Store Fixtures, Terrell, TX, (800) 633-6282, www.madixinc.com
3. MEG, Division of Hirsh Industries, Cambridge City, IN, (888) 781-9559, www.hirschindustries.com
4. Ontario Store Fixtures, Toronto, Canada, (416) 749-7700, www.osfinc.com
5. Baker Store Equipment, Cleveland, OH, (216) 475-5900, no URL
6. Chromium Plating & Polishing Corp., Brooklyn, NY, (718) 387-1575, no URL
7. Miller Manufacturing Company, Richmond, VA, (703) 455-6892, no URL
8. Nomadic Display, Alexandria, VA, (703) 455-6892, www.nomadicdisplay.com
9. North Carolina Display Fixture Company, Forrest City, NC, (828) 245-9515, no URL
10. Oxford Industries, Atlanta, GA, (404) 659-2424, www.oxfordinc.com
11. Total Plastics, Kalamazoo, MI, (800) 231-0013, www.totalplastics.com

Also reference the National Association of Store Fixture Manufacturers for background information on your fixture supplier: www.nasfm.org, 3595 Sheridan Street, Suite 200, Hollywood, FL 33021, (954) 893-7300, nasfm@nasfm.org.

List 50. 41 Clothing Businesses You Can Start

1. Senior Citizen Clothing—Sell to residents of retirement or senior citizen homes and use some of the residents as models. Convenience is the main selling point.
2. Drive-Through Laundromat—It’s important to find a good location and a relatively substantial capital investment, although many businesses are franchising this business model. Add a drop-off service to maximize revenue. Check out www.speedqueen.com and manufacturers and distributors of commercial Laundromat equipment.
3. T-Shirts in a Can—After silk-screening, package the shirts in tin cans with a slot in the top so the cans double as piggy banks, for novelty. Check out www.interchangecorp.com and distributors of new and used silk-screening equipment.
4. Online Big and Tall Shop—Selling online allows for a lower inventory, since the manufacturers of the clothing can ship directly from the orders placed on your web site. Check out www.smallbizbooks.com and business-specific start-up guides and books.
5. Collectible Clothing—Starting a business that sells collectible clothing from a retail storefront is a fantastic venture, since demand for 1940s-1970s clothes has been increasing.
6. Online Collectible Clothing—Bring more buyers and sellers together by developing either an online specialty auction or an online classifieds. Charge for advertising space on your web site as well.
7. Work Uniforms—You could either open a storefront location or develop a mobile business that sells uniforms from a cube van or delivery truck. Be sure to design and produce a full-color catalog. Check out the National Association of Uniform Manufacturers and Dealers, www.naumd.com.
8. Online Blue Jeans—This is a great business for home-based entrepreneurs with sewing skills. Get started by creating a web site that enables visitors to design their own jeans and, if you get too much business, subcontract with a seamstress.
9. Used Wedding Gowns—Sell second-hand wedding gowns from home or the internet at bargain prices and sell on consignment. Be sure to advertise in your local newspaper and build alliances with wedding planners.
10. Silk-Screening Service—Silk-screening can be used for more than just T-shirts, so build a business that offers this service on other promotional pieces. This could work as a home-based business too.
11. Home-Based Tailor—Most formal and business wear retailers do not have an in-house tailor; they subcontract the work. Use this as a great home-based business. Check out the Professional Association of Custom Clothiers, www.paccprofessionals.com, and associations representing clothiers working from home.
12. Tie-Dye Clothing—This business is another one that can be easily operated from home. Clothing to be tie-dyed can be purchased from clothing manufacturers wholesale and then sold to retailers.
13. Sports Vests—Custom-manufacturing vests for hunting, fishing, and boating activities is an outstanding home-based business venture for an entrepreneur with sewing skills. Sell directly to your customers, either online or through a mail order catalog.
14. Second-Hand Clothing Store—Open a retail location, sell second-hand clothing at a flea-market booth, or start a web site. Check out www.smallbizbooks.com and business-specific start-up guides and books.
15. Promotional Wear—Create promotional wear such as hats, jackets, and golf shirts with corporate and business logos. Purchase garments wholesale or enlist the services of local silk-screeners to customize the items.
16. Online Sportswear—Simply retail sportswear that you purchase wholesale or establish a business that designs and manufactures sportswear to be sold to clothing and sporting good retailers.
17. Embroidery Service—This business is easy for a novice to start and is great as a home-based business. Market your service by creating a catalog and distribute a marketing package to potential clients.
18. Team Uniform Sales—Target schools, sports associations, and sports clubs for this business. Be sure to create a catalog with the team uniforms in stock.
19. Online Pet Clothing—Design and manufacture clothing, purchase clothing from a manufacturer, or enlist a local seamstress to create clothing for you. Target local retailers or sell online. Check out the American Pet Products Manufacturers Association, www.appma.org.
20. Belt Buckles—The key to success in this type of specialty manufacturing business is to ensure the designs are original and get maximum exposure to potential clients.
21. Handbag Design and Manufacturing—This business can be run on a part-time basis and requires little to no overhead costs. Unique designs and uncommon materials are some of the keys to success.
22. Children’s Designer Clothes—Start a home-based business and host monthly fashion shows right in your home.
23. Bathing Suits—Start a business in your home that specializes in made-to-order swimsuits.
24. Mobile Formalwear Rentals—Convert a delivery van into an operating location, schedule client appointments by phone, and then take your service to them.
25. Suspenders—Design suspenders with creative, colorful, and bold designs for hot-selling accessories. This business can be run out of the home and part time.
26. Linen Supply Service—The basic requirements for this business are a delivery vehicle, a linen inventory, facilities to clean the linens, and good marketing skills. Consider working from home and creating a joint venture with a local Laundromat.
27. Safety Clothing Sales—Selling safety clothing and footwear on a mobile basis to customers working in factories, at construction sites, and in warehouses is a great business to get rolling.
28. Maternity Clothing—Cash in on this lucrative market two ways: design, manufacture, and sell the maternity clothing or purchase the maternity clothing wholesale and resell for a profit.
29. Costume Rentals—This is another business that can be run from a home office, to take advantage of minimal operating costs. Check out www.promocostumes.com and manufacturers and distributors of costumes.
30. Custom Necktie Sales—Negotiate an exclusive distribution contract with a manufacturer of quality neckties, create a basic marketing brochure describing the products (with your prices), and distribute the brochures through the office community.
31. Dry-Cleaning Service—Be sure to be located strategically for maximum profits and provide clients with free pickup and delivery service. Check out www.cleanersonline.com and directory service listing information and links to the dry-cleaning industry.
32. Lingerie Shop—Start with a highly visible store location and establish accounts with lingerie manufacturers and distributors. Host in-home lingerie parties too.
33. Online Lingerie Shop—Consider the following steps to establish an online shop: Secure wholesale purchasing discounts with lingerie designers and manufacturers.
Develop an easy-to-navigate web site.
Take pictures of your products and post them online.
Establish a secure credit card ordering system.
Develop a packing and shipping program.
34. Fabric Shop—Open a fabric retail shop, offer a vast array of product selections, and advertise locally. Check out www.textileweb.com, a directory service with links to associations, manufacturers, and distributors in the fabric and textile industry.
35. Online Fabric Shop—There are two options: develop a portal that brings fabric manufacturers and distributors together with fabric retailers on a directory web site or focus on the direct-to-consumer market by offering fabric for sale online.
36. Leather Cushions—Consider retailing the leather fashions with nontraditional methods by selling online, at home shopping parties, and through a catalog. Check out the Leather Apparel Association, www.leatherassociation.com.
37. Western Apparel—Try opening this sort of retail store within a country-and-Western-themed restaurant, bar, or club to capture your target market.
38. Evening Gown Rentals—Yet another easy-to-operate home-based business, rent evening gowns by catalog marketing and referrals.
39. Silk Scarves—Secure an exclusive import and distribution contract with a foreign manufacturer of silk scarves and sell them at kiosks in local malls.
40. Monogrammed Bathrobes—Clients for this business can include luxury hotels, bed-and-breakfast operations, or people seeking novelty gifts.
41. Sleepwear—Consider these options for starting this business:

Purchase various styles and designs wholesale and throw in-home shopping parties. Design and manufacture your own line and wholesale your products to retailers. Create a sleepwear web site that enables visitors to create their own sleepwear design. Design and sell patterns and sell them to customers to create for themselves. Secure the licensing rights to popular children’s program characters and add them to your sleepwear line.

List 51. Major U.S. Merchandise Marts

Most major merchandise marts do not have individual web sites. However, the web site www.merchandisemart.com lists many large national merchandise marts. Visit that site to find a mart close to you.

1. The Atlanta Market Center, 240 Peachtree Street NW, #2200, Atlanta, GA 30303, (404) 220-2446
2. The Bedford Center, 59 Middlesex Turnpike, Bedford, MA 01730, (781) 275-2775
3. Charlotte Merchandise Mart, 800 Briarcreek Road, Suite BB503, Charlotte, NC 28205, (704) 377-5881
4. The Chicago Merchandise Mart, 200 World Trade Center, #470, Chicago, IL 60654, (312) 527-4141
5. The Columbus Gift Mart, 1999 Westbelt Drive, Columbus, OH 43228, (614) 876-2719
6. Dallas Market Center, 2100 Stemmons Freeway, 5th floor, Dallas, TX 75207, (214) 655-6100
7. Denver Merchandise Mart, 451 E. 58th Street, Room 2344, Denver, CO 80216, (303) 292-6278
8. Giftcenter & Jewelry Mart, 888 Brannan Street, San Francisco, CA 94103, (415) 861-7733
9. Indianapolis Gift Mart, 4475 Allisonville Road, Indianapolis, IN 46205, (317) 257-4202
10. Kansas City Gift Mart, 6800 W. 115th Street, Overland Park, KS 66211, (913) 491-6688
11. The LA Mart, 1933 S. Broadway, Los Angeles, CA 90007, (213) 372-2377

List 52. Recommended Books, Start-up Guides, and Magazines

Four books retailers may find informative.

1001 Ways to Create Retail Excitement by Edgar A. Falk, revised edition (Prentice Hall Press, 2003)
Specialty Shop Retailing by Carol L. Schroeder, 1st edition (Wiley, 2002)
Start and Run a Profitable Retail Business by Jim Dion and Ted Topping, book and CD-ROM (Self-Counsel Press, 2000)
Up Against the Wal-Marts: How Your Business Can Prosper in the Shadow of Retail Giants by Don Taylor (American Management Association, 1996)

Five Entrepreneur Startup Guides to guide you along the way (Entrepreneur Media, www.smallbizbooks.com):

How to Start a Clothing Store
How to Start a Consignment Clothing Store How to Start a Mail Order Business
How to Start a Retail Store
How to Start a Vending Business

Five trade publications, hard copy and online, that certain retailers cannot live without:

Apparel News, www.apparelnews.com
Discount Store News Retailing Today, www.dsnretailingtoday.com
Journal of Retailing, www3.babson.edu/publications/jr/
Progressive Grocer, www.progressivegrocer.com
Retailer News, www.retailernews.com

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