Running a successful retail business can be very rewarding. As your own boss, you have the ability to determine which market you want to appeal to, create or stock the products you want to sell, and see it all come to life in your store. Sounds like a dream, right?
However, this process can be intimidating to many first-time entrepreneurs. There can be many ins and outs to running a successful retail business, but you can do it well if you have a few basic practices in place.
Educate Yourself.
Take advantage of resources online or in your area that offer business practices classes. Ask other experienced business owners what has worked for them in the past in terms of:
- Finance management
- Marketing strategies
- Employee programs
- Social media & AI leverage
The rule of thumb is to stay up-to-date on current trends and customer needs. Find out what patterns and products appeal to your target customers and create a storefront that incorporates them. This could be via online or brick-and-mortar locations; know which format of shopping will appeal to your target audience.
Train Your Staff.
Everyone working for your retail business has the right to proper training. After all, employees perform better if they have confidence in their work.
When employees are initially hired, they should be trained with an experienced team member on store policies, such as:
- Pricing
- Discounts
- Methods of payment
- Other day-to-day activities in the store
As these policies evolve, update your employees on the changes. Consider making your store policies accessible on your store’s website or other mediums to provide a reference for later.
One key skill that every employee should embrace is providing excellent customer service. Despite online trends, people still prefer to shop in-store rather than online in most cases, according to a recent poll from the US Chamber of Commerce. While this isn’t the case with every market, customer service is one of the great advantages of in-person shopping. Use this to your advantage by training your staff to be helpful, prompt, and communicative.
Set Goals.
Setting goals is essential for the growth of your business. These goals can apply to any part of your business, such as:
- Finances
- Products
- Store locations
- Social media
- Staff
- And more!
The point of goals is to keep your eye on the big picture. While there may be many tasks requiring your time as a business owner, you can easily get “into the weeds” with details or small problems. Setting goals can offer perspective and help you cope with day-to-day inconveniences more effectively.
Make Priorities & Let Go.
According to Forbes’ Five Habits of Successful Retailers, there are a few key habits you can practice to reach your goals. Two of the most important include prioritizing your tasks and letting go of what you can’t control.
While you can always be busy as a business owner, it’s impossible to take care of everything for everyone. Analyze your data and rely on it to tell you what matters and what doesn’t. That way, you can prioritize your time and let go of what doesn’t apply anymore, such as past mistakes, missed opportunities, etc.
Get Insurance Coverage.
This is perhaps the most important step of all. When the unexpected hits, you don’t want your business to be hung out to dry! Prepare for life’s unpredictable emergencies by installing a business policy to protect what matters most.
Some common insurance coverages for retail businesses include:
- Building
- Business personal property, including property of your customers
- Tenants’ improvements and betterments
- Self-storage facilities
- Spoilage of refrigerated products
- Food contamination and increased advertising expenses
- Liquor liability
Real-Life Example: Amy’s Donut Shop
Here is an example of how insurance coverage could benefit (or even save) your retail business:
Amy runs a local donut shop. She is very busy, but she finds a great deal of satisfaction in her work. She has 3 employees, and she meets with them weekly to review the wins and problems from the previous week. Amy protects their time to take breaks and vacation, and she does the same for herself. She stays up-to-date with marketing trends by creating appealing social media posts and offering an online ordering system for customers. She meets with her insurance agent regularly to update the coverage needed to protect her business assets.
One day, Amy’s refrigeration system shorts out, and all her ingredients for custards, creams, and icings are spoiled. Fortunately, Amy doesn’t have to panic because she already has the coverage she needs for the spoiled food. She files a claim with her insurance, and they are able to compensate her for the loss.
Business owners have multiple responsibilities to juggle at the same time. This balancing act can be done successfully, though, if you roll with the punches and add the appropriate insurance coverage to your policy. That way, you can rest assured that you will be taken care of in an emergency.
Frequently Asked Questions
Do I need to have an online store in addition to my brick-and-mortar store? It depends. If your target market would not visit an online store, you do not need to set one up. However, many stores have both physical and online locations in order to increase visibility and convenience for customers. You can determine whether this would be beneficial for your business.
Do I have to set up a social media page for my store to be successful? No. Many retailers are successful without the use of social media. However, it can be a useful marketing tool if you are familiar with how to use it.
How frequently should I train my staff? Often. Whenever someone is new to the team, make sure they are trained with an experienced team member until they are comfortable with their work. Encourage them to ask questions. Have weekly or monthly meetings with your staff to get on the same page and update them on best practices.
Can an agent come to my business to help me decide what insurance coverages I need? Yes! Our agents frequently travel to local businesses to evaluate what insurance coverages would work best for their clients. Contact an agent today to discuss your insurance needs.
Where can I get more education about how to run a business? There are several options. You can register for business classes at a college near you. If available, you can also check your local community’s business Facebook or Instagram page to learn about opportunities to network with other businesses in your area. You are welcome to discuss best practices with business owners you already know. The possibilities are endless!
Final Takeaway
Being a retail business owner can sometimes feel like a circus; there are multiple things to juggle simultaneously. While running a business can be stressful, these practices can help create a roadmap for future success.
Our local agents are trained to give your business an extra boost of protection by providing extensive business coverages. Reach out to one today to discuss how they can help.
Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts.
External Resources
Forbes – Five Habits of Successful Retailers
US Chamber of Commerce – Considering Opening a Retail Store? The Pros and Cons of Brick-and-Mortar Locations
