Date added: 08/17/2016 The Top 3 Principles of Running a Successful Small Retail Store
Running a successful small retail store isn't easy as many people would think. It may seem small regarding capacity, but running it successfully is an enormous task.
Many principles have been developed and adopted over time, but there are some that are considered to be fundamental. This article will highlight and discuss the main principles that you can employ to run a small retail store.
1. Customer Is the Boss
This should be the first principle for running a small retail store. Remember that anything that you're selling, whether a service or goods, will eventually be consumed by customers. Without customers, your business will fail.
Creating a good relationship with customers is the key to the success of your small retail store. The customer should be at the center of every decision you make and everything about the retail store should revolve around that customer.
Ensure that consumers of your products are fully satisfied and happy with your goods or services and your retail store will be a success. The more customers you attract and maintain, the higher the chances of succeeding in your venture. Ensure you use point of purchase merchandising to help increase the customers user experience. For example, if your vendors send in product that is popular but can't be hung from display hooks because their packaging lacks built-in hang holes, instead of placing them down bottom of a bin out of sight, purchase some inexpensive hang tabs and hang them as you desire. Many times you can charge the cost back to the vendor.
2. An Entrepreneurial Mindset
Your mindset must be entrepreneurial to succeed in running a small retail store. This is a mindset that helps you to transform your business perception to reality. It's also a trait that helps you to understand your business environment and possible changes that may come along the way.
With this mindset, you won't just be working, but also assess how much you're gaining from the work that you're putting in your retail store. An entrepreneurial mindset will also contribute to studying the market and knowing the direction that your retail store should take depending on foreseeable future.
3. Harsh Fiscal Discipline
Your fiscal discipline is a crucial principle for running a successful small retail store. How you use and plan for the money made from the prospects of your small retail store is paramount for its success.
Profit made from the sales should be utilized in growing the business by adding the volume of your stock. For example, if you stock baseballs, you may use the profit to increase their volume, and this will go a long way in boosting the revenue. You may also use the income made to diversify in products or services.
To have a good fiscal discipline, do the following:
- You need to use budgets and realistic sales projections to run your business.
- You must detach your personal life from the retail store.
- Have a regular financial audit.
For more information, read The Five Principles of Retail.