It's a surprisingly favourable moment to contemplate starting a shop for retail company start-ups with a creative attitude and a keen awareness of their costs and prospective revenues. However, there are other aspects to consider, ranging from early costs to learning about website builders and the impending threat of more lockdowns.
Are brick & mortar stores still relevant?
Despite the fact that online sales now account for a third of all retail sales, three out of five customers believe it is still crucial for firms to have both a physical and online presence.
According to a study conducted by Supercharged E-commerce, they found that despite the fact that 70% of product searches begin online, 12% begin in stores first.
The Coronavirus pandemic caused serious interruptions to physical stores, however, the survey found that shopping at independent retailers is on the upswing, showing a trend in people choosing to support smaller businesses in the last year.
Opening a physical store may create a smooth and integrated online and offline experience for a brand's customers. Because the internet marketplace is so crowded, stronger in-store experiences can assist to attract and keep customers.
That is why retailers have gone to great lengths to improve the interiors of their stores and offer unique experiences. This also effectively reiterates that traditional physical stores are still relevant in this highly digitised world.
What are some of the advantages and disadvantages of a brick & mortar store?
Whether you're a startup or an e-commerce company looking to expand into the real world, there are advantages and disadvantages to creating a physical store.
Here are some of the advantages and disadvantages that small company owners should evaluate before creating a physical location.
Advantages:
- Customer interactions - when it comes to creating consumer interactions, physical retailers have a minor advantage. They may still use online tools like social media and email to communicate with customers, as well as create face-to-face connections.
- Customers get the opportunity to view inventory in person - while there are advantages to buying online, such as ease, purchasing products in person offers its own set of advantages. Some customers prefer to see products in person before making a purchase.
Disadvantages:
- Hiring and managing staff - you will need to hire personnel to serve clients, handle inventory, and monitor the business after you have a physical location. As a result of this, you'll need more funds to cover payroll expenditures if you hire additional people.
- Bills - opening a physical business can also boost your monthly expenditures, putting you in a position of more financial responsibility. Rent, inventory, electricity, property tax, and payroll are just some of these costs.
Things you need to consider when opening a physical store:
Make sure to conduct thorough and comprehensive research of your target market because you'll need to refer to it when creating branding concepts, choosing a shop location, and strategizing marketing techniques.
You must also consider what your business can do to set your store apart from the competition. Make sure visitors believe it's worth their time to go to your shop over another in an age when people are looking for retail experiences.
We will highlight some of the main things you should think about before opening a physical store in the following list:
- Location
- Features
In order to save time, bear in mind that selecting a spot always demands some compromise, thus it's vital to accept that you might have to compromise on certain things.
- Limitations
Are there any restrictions or limitations on the sorts of modifications you may make to the space? These factors may have a significant influence on your selection. Request a review of any documentation or rules so you know exactly what you can and cannot do.
- Budget
Instead of wasting time looking at houses that you can't afford, spend your time looking at properties that are within your budget.
It could be time to open a small store if you've outgrown your home office or garage. However, choosing a selection and then locating a good location might be difficult. Like any business decision, this one deserves some careful thought and consideration.
Here at Persona Finance, we are ready and equipped with experts who can provide you with essential remote accounting services and business advice. For more information on our services, please contact Persona Finance at [enquiries@personafinance.co.uk].
