How to Start Your Own Retail Business
Specifically on the Indian fashion accessories segment, the market was worth around US$ 3 billion in 2013 and is expected to grow at a CAGR of 12 percent touching US$ 6 billion by 2019.BY Nibedita Mohanta | Jul 15, 2017 | comments ( 0 ) |
With the welcome of FDI, the retail market of India seems to grow at triple the speed.
The Indian retail market size stands at about USD 585 billion and is expected to grow at CAGR of 13 percent to reach USD 1080 billion by 2020. This growth is largely attributed to the coming of age of the Indian retail sector, which has gone through major transformation over the last decade with a noticeable shift towards organised retailing.
Specifically on the Indian fashion accessories segment, the market was worth around US$ 3 billion in 2013 and is expected to grow at a CAGR of 12 percent touching US$ 6 billion by 2019.
Thus there are numerous businessmen and entrepreneurs jumping in the line to make their own retail business a successful one. Here is brief description on how to start your own retail business in India:
1. What to sell:
The first and foremost step is to determine, what you are going to sell or what your product or service is going to be.
Do a thorough market research to know which service or product is in demand and how you can make your way through to the customer’s focus and attract their undivided attention with your service or your product.
More than this it is important to decide whether your forte lies in providing service or selling so and so products. Even though the demand for service is more but you are incapable of running any sort of service business then better go for the product selling business because unless you know the business, you would not be able to make your business run.
2. Know the market:
A thorough market research will clear your head of all the queries and obstacles such as who all are your competitors, what market is doing good, how can you deliver your unique style be it in selling product or providing service.
Figure out the market you are going to enter, how long is it going to stay, whether it is growing or shrinking with time, how you can join hands with government and how government is identifying the need of the product?
Identify your target customers and how you can win over their confidence and need through your business. An overall idea of the market will help you in making changes or invent all possible services, which others lack and this will help in developing the business well.
3. Location and Finances:
Based on the research, you will get the idea of where the market is doing well or where you can plant your store or service centre and earn a healthy profit.
Once the location is decided, narrow down to find the suitable place, which either you can buy or take on lease to run your business. Study the market and find a place, which will be the centre of the market or high class locality, where people regularly go for grocery shopping or parlor service. A place where the supplier can easily supply and the customer can easily come to collect its products.
After all these one needs to think about the finances, where is it going to come from, who all are potential investors, which banks are offering loans, what is your budget for purchasing the space, hiring people, purchasing the items and restructuring the work space. Most importantly determine the profit in advance and where to channel the profit in.
4. Legal Work:
One cannot open a retail shop or store without prior paper works, licenses and legal works are done.
Are you a sole proprietor, a corporation, or a limited liability company? Different taxation laws and permits are required for each business type so figure this one out early on.
One has to file for an EIN (Employer Identification Number) also known as Federal Tax Identification Number which is used to identify a business entity.
If you’re in retail you’ll need a business license and a seller’s permit. In addition to Resale Certificate, Health Permit, Fire Department Permit, Certificate of Occupancy, Building Construction Permit, Zoning and Land Use Permits, Sign Permit and Air and Water Pollution Control Permit.
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