The retail business category is huge. According to IBISWorld, there are currently over 2.9 million retail trade businesses in the U.S. Opening a retail business is a dream for many people, but that usually takes years of planning and good financing.   

What is Important About Retail Business

First, retail business provides about one-fourth of all U.S. jobs, and importantly, nearly 32 percent of all people get their first jobs in retail. Second, retail provides an important public service by connecting manufacturers of goods to customers. Third, research shows that customers trust brands that have a physical presence, and customers use shopping as “retail therapy” to uplift their mood. Fourth, many retail shops are independently owned so those businesses support families directly. Fifth, retail shops add life to every city, culturally as well as economically.

Characteristics of a Successful Retail Business

Key principles involved in having a successful retail business include having a clearly defined vision, being customer-focused, having a “great execution” fixation, and having a great location with good visibility and easy access.

How to Begin Your Retail Business

Follow these steps to begin your retail business:

• Find a niche for your business; something that you can do differently and better than someone else.   
• Write a solid business plan.
• Develop a thorough budget.
• Develop a legal structure, create a business name, and register the business.
• Organize your finances and secure the funding that you will need. Funding sources can include banks, credit unions, SBA loans, self-funding from IRA or retirement funds, and funds from alternative lenders.
• Secure a physical location.
• Obtain the required business licenses and permits and get business insurance.
• Develop a brand look and feel.
• Design the interior features and order signage.
• Develop your supply chain.
• Order a POS system.
• Hire and train your staff.
• Begin marketing your retail business.

Seek Expert Financing Assistance

Contact Charis Commercial Capital, based in Hyattsville, MD. We offer tailored commercial financing options including helping those who are not served by traditional banking institutions.