Regardless of the nature of your business or individual business goals, success is only possible if you are able to achieve a viable profit margin. While the current small business climate suggests that this should be more than attainable for ambitious Small and Medium Enterprises (SME’s), however, establishing a successful venture on a shoestring still requires a huge amount of knowledge, understanding and proactive thinking. This is especially true in a competitive market such as the retail sector, for example, where a number of small and independent firms compete for a dwindling market share.
How to Create a Successful and Independent Retail Space
With this in mind, what practical steps can aspiring shop-owners take to create a profitable retail space on a budget? Consider the following: –
- Create a 2, 5 and 10 Year Plan
Planning is everything for aspiring entrepreneurs, regardless of the specific niche that they hope to operate in. It just so happens that retailers must invest even more into this endeavour, thanks to the competitive nature of the sector and the intricate start-up processes involved. With this in mind, it is crucial that you create a 2, 3, 5 and 10 year plans that plots a sensible course of growth and gradual expansion. Without this, you find it impossible to compete and evolve organically in a way that benefits customers.
- Invest in Temporary Structures and Outlets
While you may have spotted a gap in the market or identified a potential opportunity for expansion, you cannot be sure that the subsequent financial investment will deliver a return. It is therefore wise to offset risk where possible, primarily by investing in short-term and flexible arrangements that offer financial contingencies. In terms of creating a physical retail space, outlets such as Neptunus provide temporary structures that enable you to relocate or establish your venture without committing to a permanent or long-term lease.
- Hire Temporary Labour
The major benefit of organic growth is that it can be cultivated slowly, without forcing you to invest huge amounts of capital within a short space of time. This offers particular advantages when it comes to creating a viable workforce, as you can invest in flexible, short-term workers who are paid an hourly rate as and when they work. With no fixed or long-term contract driving up the annual costs of salary and labour, you can look to expand slowly and create a profitable business model for the future.