Setting up a shop for your small business

During the various covid lockdowns, SMEs proved more resilient than bigger stores. They were able to be more flexible and adapt, taking advantage of financial aid. Of the 9,877 businesses which closed, only 1,442 were small retail, restaurant or leisure businesses.

There is now an emphasis on creating smaller, more affordable sales outlets that can deliver on service rather than warehousing goods which means if you’re thinking of setting up a shop for your small business, now is the time!

A successful shop will enable you to be your own boss, set your own hours and hopefully provide a comfortable income. These days, there are opportunities for every type of shop both offline and online. There are a number of steps you need to think about when considering opening up your own store. I will run through some of the key ones here.

Write your business plan

One of the most important things when starting any new business is to write a business plan – particularly if you’re hoping to win over some investors or other funding. Your business plan should include:

  • A description of your business and what you plan to sell.
  • Market analysis in your niche including a SWOT analysis.
  • Your marketing strategy
  • Your projected earnings (think Dragon’s Den!)
  • How much money you will need to get started and where it’s coming from.
  • Your planned expenditure.

 Your business plan should be realistic – and not just speculation based only on hope.

Decide your business structure

Deciding upon the legal structure of your business is another key factor. You will need to choose from the following options:

  • Sole Trader – If it’s just going to be you running your business this is the structure you will need. You will be responsible for the day to day and direction of your business. If something goes wrong you will be responsible to fix it, however, if things go well then you get to enjoy your success (and income) all for yourself.
  • Limited Company –  This option means that you will be protected from being personally liable for any debts or unpaid contracts, you won’t be personally financially culpable if anything goes wrong. The downside is that you will have to pay 20% tax on all profits when you start out.
  • Partnership – If you are going to work closely with one or more business partners then this is the route for you. It’s the most common choice for running something like a family shop. However, it’s worth considering that if someone wants to pull out it can cause trouble so make sure everyone agrees if any trouble should arise.

Register your business

It’s important to make sure that you register your shop with HMRC as soon as possible in fact, you are required by law to be registered before the end of your first year. You will need to submit your business information (name and address) to the government and answer pertinent questions to help them work out your tax requirements.

Finance your new business

There are a number of ways that you can finance your business, this includes using personal savings, getting a business loan and finding investors.

If you can, it’s usually best to set up using your personal money so you don’t owe anyone from the off and you can keep all the profits. Of course, this all depends on your financial standing at the time. It’s also worth considering that if things go wrong, you could lose your savings.

If you don’t have enough start-up capital a business loan is the way to go. You can get a loan from a bank or building society, and if they are impressed with your business plan, you may be offered favourable interest rates. The downside of a loan is that it will need to be paid back, usually within the first 5 years, and of course, there is interest to consider. Make sure there aren’t any hidden charges before taking on a new loan.

Investors can provide you with all the capital you need but you will need to convince them that their money will be used carefully – every investor will ultimately want their investment back plus profit. Crowdfunding is also a popular way to raise money online through sites like Indiegogo or Kickstarter where internet users donate to businesses and product ideas that interest them.

You should also consider how you will track your finances. It’s considered best practice to use a business bank account to separate your personal and business expenses and income. You might even want to consider looking into cfo services for startups.

Set up your shop

Branding is important when you first set up your store. The shop’s interior design, the tone of voice used for communicating with customers, the looks and feel of a website, and the posts you share on social media – making all of these facets recognisable as a part of your business.

How do you want your customers to feel when they walk into your shop? Think about psychology, when positioning your products – have your popular items to the right of the door, and draw customers all the way in by placing eye-catching products at the back of the shop. What about lighting? Do you know how to choose the right lighting for your business signs? Windows should be an extension of your interior design and convey your values and a selection of your products as attractively as possible.

Consider investing in the services of a retail store design company that will put time, skill, and effort into transforming your vision and energy into an amazing branding concept.

Marketing strategy

Once your shop is all set up you need to attract some customers! A great shop will always attract customers, however, with competition so high in the retail sector, you need to make sure you have a proper plan of action when it comes to promoting your store. Why not consider looking into digital signage software for retail?

From advertising in local magazines to building engaging social media channels, be sure to do your homework and set up a marketing strategy and plan that will help ensure your new shop is a success.

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