business plan for opening a store

Retail | How To

How to Start a Retail Business in 13 Steps

Published September 15, 2022

Published Sep 15, 2022

REVIEWED BY: Meaghan Brophy

WRITTEN BY: Brigitte Korte

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This article is part of a larger series on Retail Management .

Starting A Business?

• Step 1: Create a Business Plan
• Step 2: Determine Your Niche

Step 3: Develop Your Brand

• Step 4: Choose a Legal Structure

Step 5: Organize Your Finances

Step 6: launch your online store.

• Step 7: Secure Funding
• Step 8: Choose a Storefront Location
• Step 9: Design Your Interior
• Step 10: Choose a Retail POS System
• Step 11: Hire & Train Retail Staff

Step 12: Build Your Marketing Plan

Step 13: ensure you’re compliant, bottom line.

To open a successful brick-and-mortar store, you need a business plan (including market research) and legal structure for your business, an ideal storefront location, startup funding, inventory, and a team of employees ready to start selling. Plus, in today’s market, you’ll also want to launch an accompanying online store and start marketing your business.

Learn how to start a retail business in 13 simple steps:

Step 1: Create a Retail Store Business Plan

A business plan is a written document containing the goals of a business, the methods for attaining those goals, and the time frame for the achievement of the goals. It is what you present to potential investors and a crucial first step for starting any business. Not only that, writing a business plan gives you a definitive path to follow, ensures you’ve done proper market research, and sets you up for success.

The Small Business Administration (SBA) outlines two types of business plans: traditional and lean startup.

• Traditional business plans are more thorough and ideal if you’re requesting funding from banks or other traditional loan sources.
• Lean startup business plans are more informal and designed for businesses that are more fluid and will change a lot as they grow.

You can also create a shorter, one-page business plan. Learn how with our one-page business plan guide .

When opening a retail store, we recommend following a traditional business plan as it’s more detailed—it can never hurt to be too prepared. Plus, it will provide a more concrete outline for you and your business partners or possible investors.

Elements of a Business Plan

The nine elements of a traditional business plan are:

• Executive summary: High-level paragraph outlining your company’s purpose, mission, and why it will be successful.
• Company description: Be specific about your company’s details, including what problem you are aiming to solve, how you will solve it, what consumers you plan to serve, and the talent on your team.
• Market analysis: Include industry outlook and trends, what successful competitors are doing, and what your strengths will be.
• Organization and management: Outline who will be running your business and the experience your team members have in retail or startup environments.
• Product line: Outline what kinds of products you will sell, why they are needed, and include any research and development on private labels or proprietary custom products.
• Marketing and sales: Describe the tactics you will use to obtain and retain customers.
• Funding requests: If you need outside funding, outline your needs and specify exactly how you will use the funds.
• Financial projections: Detail how your business will become stable and profitable, including a projected financial timeline of at least five years.
• Appendix: Use this space for any supplemental documents, such as product prototypes and pictures, credit histories, licenses, and permits.

This may seem like a lot of information, but it’s best to keep each section succinct so readers can easily get through the entire document and absorb all of the information.

Be sure you are answering the “why” behind the “how” of starting a retail business. Why are the strategies you selected for achieving your business plan the best? Why will they work?

Writing Your Business Plan

When it comes to actually writing and formatting your business plan, there are a few different options to choose from. Of course, you can type it out in traditional word processing software like Microsoft Word or Google Docs. You can also build your business plan as a slideshow in PowerPoint, which is a great option if you need to present your plan to an audience.

There are also business plan software tools available, such as LivePlan , that have industry-specific templates. You can also use this business plan template and checklist or enlist the help of business plan writing services .

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Step 2: determine your niche & select products.

A niche is the subset of the market to whom your business and products seek to appeal. This subset can be defined by its own unique needs, preferences, or identity that makes it different from the market at large. Your niche will define the products you sell, your price range, product quality, and marketing initiatives.

The narrower your niche market, the easier it is to become the go-to retail destination for that market. For example, there may be a dozen stores in town that sell pet products, but you may be the only retailer that specializes in dog costumes or organic food options.

Carving out a niche for your retail store helps differentiate your business from the competition. With retail giants like Amazon and Walmart, the competition is fiercer than ever. And truthfully, many large retailers, like department and box stores, carry very similar products. Aside from the feel-good nature of shopping small, having something unique to offer will help you beat out big box retailers.

You can find your niche market by:

• Listing your hobbies and interests

As a store owner, you will spend a lot of time engulfed in your chosen niche, so your own interests are a good place to start. Plus, choosing something you’re interested in will make your store more authentic.

• Researching the potential for each niche

Make sure you choose a topic that has good money-making potential by doing research on Google Trends and checking out competitors on social media.

The phrase “dog costumes” appear to be trending downward in search, indicating a different niche may present a more long-term opportunity.

• Evaluating potential profits

Determine how profitable each niche could be by looking at industry statistics and Amazon Best Seller lists to see what sales are like for your chosen categories. You can also research wholesale prices for products on sites like Alibaba and compare them to typical retail prices to get a sense of potential profit margins.

Amazon Best Sellers lists highlight popular products by category.

Sourcing Products From Suppliers

Once you’ve narrowed in on your niche products, it’s time to find a reliable supplier for those products. When figuring out how to source products for your retail business, you’ll first need to understand the different options.

• Manufacturer : You develop the product concept and outsource the creation. This option allows for the most control over the product but also takes comparatively long.
• Wholesaler : Wholesalers develop products and sell them in bulk to retailers for a discounted price. Retailers then resell those items for a profit. This is the quickest route for product sourcing, but it also allows for the least control over the product.
• Dropship : Dropshipping is when you sell products directly to customers and then outsource the manufacturing and fulfillment for each order. It is the most hands-off option, but also yields the lowest profit margins.

In the news:

As we know, inflation is a major consideration for both retailers and consumers in the post-pandemic era. However, the National Retail Federation has been putting pressure on the current administration to lower tariffs on everyday items to help lower inflation. In response, President Biden recently signed the Ocean Shipping Reform Act , which aims at improving maritime trade practices and lowering supply chain costs.

When choosing your supplier, research a few different options and order samples from two to five suppliers. Undergo quality assurance testing to narrow down which items you want to source. From there, nurture vendor relationships with effective communication and efficient payment—eventually, you can negotiate discounts, especially for high-volume orders.

The COVID-19 pandemic brought many challenges to supply chains all over the world, and many suppliers are still seeing its effects. As a retailer, you can plan for these issues by padding timelines, vetting suppliers, having multiple sources for your most popular products, and choosing local suppliers when possible.

Retail Market Research

Instead of starting with niche products and then researching to find their market, you can also start by doing primary market research. This is a type of market research where you go straight to your target consumers and ask them questions to figure out their interests. In other words, you are starting with your consumer and their needs rather than starting with a product and then finding the right audience.

When you’re opening a physical brick-and-mortar storefront, you can study your local audience directly to determine their needs. It’s possible, and likely, that there are some specific needs locals have that your store can fill.

Effective primary market research tactics include:

• Consumer Panels & Focus Groups

Surveys are an easy and effective way to gather a lot of useful data. Established businesses typically use their customer database to send out emails. But, because you don’t yet have a customer database, you can promote your survey through local Facebook groups and targeted Facebook ads.

Your first surveys can be very broad and simply ask local consumers why they like their current favorite stores and interests. As you get closer to choosing specific products, you can send out surveys to measure customer interest and reaction to specific items.

Surveys can provide more accurate data than a focus group or consumer panel, but these types of information-gathering sessions can provide nuanced details and deeper insights that might otherwise be missed in a survey.

Tips for how to conduct focus groups:

• Keep your group small: Around eight to 10 participants is ideal so everyone’s voice can be heard.
• Incentivize participants: In your advertisements, make it clear there is a cash or gift card compensation for their time.
• Choose participants wisely: Have participants RSVP to make sure they live or work near your store’s future location.
• Have participants fill out a contact form before you begin: Provide consent forms indicating their responses will be recorded.
• Start with general questions: Get the group started by asking general icebreaker questions. Then move into asking for feedback on products and shopping preferences.
• Make sure everyone gets equal talking time: Your goal is to get a variety of opinions, so do your best to prevent one or two participants from dominating the conversation.
• Stay neutral: Remember to stay open to feedback and don’t guide participants or try to persuade them. Focus groups are all about collecting feedback. There’s no need for consensus.

Your products are just one part of your retail business. Developing a brand or your business’ identity is also important because it attracts new customers and builds strong relationships with existing ones. Your brand identity is the essence of who you are as a store—it creates the feel that customers associate with your business and maintains cohesiveness between your products and aesthetic.

You only get seven seconds to make a first impression , but it takes up to seven impressions to create brand awareness. Read about this and more in our article on Branding Statistics Every Small Business Should Know .

When defining your brand, ask yourself what feelings you want your business to evoke. Tap into your market research—look at who your biggest competitors are and think about what their branding looks like and how you can differentiate your store from theirs. All of this information helps build the foundation of your brand.

Elements of your brand include:

• Visual branding such as logo , storefront, fonts, signage , and colors.
• Store name and slogan that are completely unique to you. Use this free business name generator to help come up with ideas.
• Mission statement and vision statement that outline how you want to serve your community and customers.
• Positioning in your niche, market, community—and what sets you apart from the competition.

Step 4: Choose a Legal Structure for Your Retail Business

Choosing a legal structure for your business is important because it determines how to collect and report taxes, how you’ll get paid from your business, and your level of personal liability. There are many types of legal structures, but the three most commonly found in retail are sole proprietorships, limited liability companies (LLCs), and corporations.

• Sole Proprietorship
• Limited Liability Company
• Corporation or C-corp

If you don’t set up a legal structure for your business, sole proprietorship is the default. It essentially means you’re doing business as an individual and therefore not separated from your business in any way.

Read more about the pros and cons of sole proprietorships .

Limited liability companies or LLCs are legal structures for small businesses that protect your personal assets, such as your house and car, in the case of lawsuits or business bankruptcy. This is the most popular legal structure for small retail businesses, and the one we recommend if you’re planning on maintaining a single storefront.

Read more about the pros and cons of LLCs .

Corporations or C-corps are the most structured legal form for your retail business. They have strict tax guidelines. When you create a corporation, it’s a completely new and separate entity in the eyes of the government and the Internal Revenue Service.

Read more about C-corps .

Regardless of which legal structure you choose, it’s critical to separate your business finances from your personal accounts right from the beginning. Having a dedicated business account will make it much easier to track expenses and income, which will help you stay on track financially. Plus, you’ll have an easier time filing your taxes. Not to mention, if your personal and business finances are combined, that could “pierce the corporate veil” of your LLC if things go wrong.

Choose a Retail Business Bank Account

When it comes to choosing a small business checking account , the options are virtually unlimited. Look for a bank that’s small business-friendly with few fees. Make sure there are branches close to your store or home. As a retailer, you’ll likely be making many cash deposits and making change, so getting to the bank should be convenient.

Consider other features that will make your life easier, such as mobile banking and online check deposit. Also, consider whether or not the bank has features that will help as your business grows, such as business credit accounts, loans, and overall branch location accessibility.

To get help choosing the best small business banking solutions for your business, check out the following guides:

• Best Banks for Small Businesses
• Best Bank Accounts for Self-employed Professionals
• Best Free Business Checking Accounts
• Best Online Business Banks
• Best Banks for Startups

Invest in Accounting Software for Retailers

In addition to a small business checking account, you’ll also want to have an accounting software program. There are a lot of expenses associated with running a retail store, such as products and shipping, employee wages, and advertising costs. Accurately tracking your income and expenses will help you see exactly how much revenue you’re making, understand where your expenses are high, determine your product purchasing budget, and make filing taxes a million times easier.

QuickBooks is one of our favorite accounting programs for small businesses because it is affordable, user-friendly, and integrates with many popular retail point-of-sale (POS) systems (we’ll cover POS systems below). It’s particularly good for retailers because it has retail-specific report bundles available—including reports like gross margin by inventory volume—and integrates with ecommerce solutions. QuickBooks plans start at just $10 per month, plus they offer a free 30-day trial.

While you might be opening a physical retail store, in today’s market, you will also want to launch an accompanying digital storefront. Your bottom line has a lot to gain from launching an online store—in tandem with your retail store, it can help you reach a larger audience, geographically speaking, and it also gives you another channel where you can nurture existing customer relationships.

Forecasters from eMarketer expect multichannel sales to make up close to 46% of all ecommerce sales by 2023, up from 40% in 2019. This 46% will amount to more than $585 billion in sales—and those are sales you don’t want to miss.

To start with the launch of your online store, you will first need to choose an ecommerce platform that integrates with your POS system and accounting software. Most modern ecommerce platforms have templates and tools to help you design your store, or you can hire a professional to help.

We recommend Shopify as the top, user-friendly, high-value ecommerce platform. Not only that, every Shopify ecommerce subscription comes with a Shopify POS system for seamless integration.

From there, you will want to get your order fulfillment and shipping figured out so that you can get customers their orders.

You should also consider offering click-and-collect services for your local customers. At the onset of the pandemic, buy online, pick up in-store (BOPIS) increased from 15% of orders to 25% , a 65% share increase, and this BOPIS momentum doesn’t look like it’s slowing down anytime soon.

Not sure where to start with your ecommerce site? We put together an entire guide to take you through how to start an online store . You can also check out these resources:

• Best Free Ecommerce Website Builders
• BigCommerce vs Shopify Comparison
• Shopify Review

Step 7: Secure Funding for Your Retail Store

Opening a retail store requires a lot of upfront investment. You need to sign a lease on a physical space, invest in renovating that space, purchase products, set up your POS system and payment processing hardware, advertise like crazy, invest in a grand opening, and pay staff. It sounds expensive because it is expensive. Altogether, opening a retail store can cost up to $100,000 .

To fund your retail store, ideally, you have a decent chunk of your upfront costs saved that you can invest personally. But, there are also plenty of small business funding options where you can secure capital from external sources.

Some of those options include:

• Small business loans : You find these loans from banks, credit unions, the SBA, and even your existing network of connections. This is where your formal business plan will come into play—it shows investors your path to success (and to getting a return on their investment).
• Credit cards: If you’re just starting out and have no business income history, or if you have a lower credit score, choosing a business credit card may be the better option. A credit card will also give you more flexibility to account for unexpected expenses. Visit our guide on the best small business credit cards to see which one may be right for you.
• Crowdfunding : Crowdfunding is a great way to build buzz for your store and get people financially and personally invested in it. Plus, you don’t need to pay this money back.

The biggest factors to consider when taking out a loan are the interest rates (AIRs), upfront fees, and application requirements. Typical AIRs vary based on your loan type but should look something like this:

An alternative option for funding your business is using your IRA or 401(k) retirement account. Your initial reaction to this idea may be, “Whoa, absolutely not.” But, using your retirement account to fund your business doesn’t necessarily mean you’re cashing out or borrowing against your account.

Instead, there’s an option called Rollover for Business Startups (ROBS) , which lets you invest retirement funds into your new business without paying taxes or early withdrawal penalties. This process can be complicated. So, if you’re interested in using your retirement account to fund your business, we recommend working with an experienced provider like Guidant .

Step 8: Choose a Storefront Location to Open Your Retail Store

Choosing a location for your business can seem overwhelming: Where do you start? How do you know if you’re choosing a profitable area? Will people even want to come to your location?

When choosing a location for your business, narrow down your options first based on practicality and convenience. Consider how far you’re realistically willing to commute every day for the foreseeable future. Choose areas that are easily accessible from your residence. Spend time in each area to become familiar with specific neighborhood demographics and preferences and to scope out other local businesses.

From there, you can start looking at listings in your desired area and finding a space that will work for you and your needs. Contacting listings directly can offer the best deal; however, working with a real estate agent will give you peace of mind in the contract negotiations and help you find the best space for your business.

Learn more in our guide on how to find and lease retail space , which includes different types of leases, terms to be aware of, and how to calculate your monthly rent budget.

Below are some ways that you can get to know a neighborhood and narrow down your perfect location:

Analyze Foot Traffic

For many retailers, foot traffic can account for most, if not all, of sales. This is especially true for convenience stores, for example, where almost all sales are walk-in impulse buys. But, if you’re operating a dog costume specialty shop, you might have more customers drive specifically to your store.

Our guide to determining foot traffic outlines how to calculate whether it’s worth splurging on a prime storefront location. It’s also important to consider the different types of foot traffic and what time of day it occurs. It may not always be what you expect.

For example, there’s a cafe and bakery in my hometown, both located in a central business district. It’s a few minutes out of the way for most commuters, so they do decent business during the morning rush hour. But, the cafe is only a block away from the town’s middle school. Its business is slammed on weekdays around 2 p.m. with all of the teenagers who walk over when school gets out.

This is one example of a foot traffic pattern you wouldn’t be able to predict if you weren’t familiar with the area, which is why it’s important to spend lots of time casing out prospective store locations.

Foot traffic is an important data point to continue using even after your store is up and running. It helps your staff more accurately identify missed sales opportunities. Solutions like Dor will track foot traffic data and integrate with many popular POS solutions.

Talk to Your New Neighbors

In addition to staking out your prospective storefront, inquire about the traffic, shopper demographic, and neighborhood. Ask your listing agent as many questions as you can while viewing the space. But, keep in mind their motive of getting a lease signed. Instead, visit neighboring businesses, introduce yourself, and ask business owners or managers if you can take them out for coffee to get some feedback on the location.

Important questions to ask about the property include:

• Who is the landlord and how is the property managed? Other businesses and employees in the space you are interested in will give you honest feedback about the landlord’s maintenance style and how they handle things like snow removal and general property upkeep.
• Why did the previous tenants leave? Look into tenant turnover in the complex, and talk to tenants who left, if possible, to discuss their experience in the space.
• What’s the busiest time of day and days of the week? Get other tenants’ opinions on traffic to the area.
• How long do tenants stay in the space? If you’re in an area surrounded by other storefronts, it’s best if they are established stores with regular customers that can help drive traffic to your new shop.

Consider Parking & Signage

In addition to foot traffic and tenant feedback, it’s also important to consider other storefront factors that can majorly impact your retail business. For example, does the space have a dedicated parking lot? If there isn’t a dedicated lot with ample spaces, and street parking is difficult, potential shoppers might not make the effort to visit your store.

Also, consider what signage and street-facing display options are available. To draw in all of that foot traffic you monitored, shoppers need to know your business is there. Ideally, your storefront will be facing a busy street. If the location is set further back, is there a large sign by the driveway where passersby can easily see what businesses are inside? Ask the listing agent and neighboring tenant about what signage options are available and who pays for them.

Additionally, make sure you’re aware of any town or city policies that could affect your storefront marketing. For example, some towns place restrictions on how big the sign on the front of your store can be. Other towns forbid temporary signage like A-frames.

Don’t Ignore Your Budget

As we mentioned earlier, splurging on a prime location can be a savvy move if you’re opening the type of retail store that relies heavily on impulse purchases, such as a corner convenience store or a souvenir shop in a tourist town. But, most boutiques need to stick within their budgets, which means spending less than 10% of your monthly gross sales on rent.

Learn more about how to create a budget and budgeting best practices with our article How To Budget a Retail Business (+ Free Templates) .

Step 9: Design Your Retail Store Interior

After securing a retail storefront, it’s time to start strategically planning the interior. Strategically planning your store layout is so important because it has a dramatic impact on in-store sales. A well-designed layout will welcome shoppers, make them feel comfortable, and direct them toward specific products.

Choose a Layout Structure

The first thing you need to decide is what type of floor plan you want. This will largely depend on the type of store you’re opening. Most retail stores fit into one of these basic layout categories:

Place Your Checkout

A well-positioned checkout will open up prime retail space for displaying products and encourage shoppers to move through more of your store. Instinct might tell you to place your checkout at the front of the store so that it’s most visible or on the right-hand side of your store where traffic tends to flow. But, the best place to position a retail checkout counter is often on the left side of a store.

Shoppers naturally veer toward the right side of a store when they walk inside. So, that’s where you want to display money-making products and new products. Some department stores and larger mall retailers place their checkout counters at the back of the store. However, for smaller retailers, placing your checkout toward the front makes it easier for staff to attend the register and keep an eye on the entrance.

This small-footprint retail store layout features a checkout counter on the left side of the store, with featured products displayed on the right side.

Learn more about how to set up your checkout to drive sales .

Outfit With Fixtures & Displays

Once you have the bones of your store layout and checkout counter placed, you’ll also need to invest in display fixtures, signage, and lighting. Start with parts of the store that will be mostly permanent: counters, lighting installations, dressing rooms, and any fixed shelving.

Because these pieces will be permanent, invest in high-quality items that will form a cohesive look and won’t fall out of trend. From there, you can outfit the rest of your store with more affordable, temporary merchandise displays and decorations that are easier to swap out with the seasons or trends.

Read our guides below for step-by-step instructions on setting different fixtures and displays:

• How to select and design retail lighting
• How to design the best storefront sign for your business
• Tips for great fitting room design
• Store design ideas for increasing sales

Position Your Products for Success

Exactly how you merchandise your products will depend on what type of store you have and the layout you choose. But there are a few simple tricks you can use to boost sales in any store environment.

• Eye level is buy level : Products placed at eye level instead of above or below are more likely to be seen and purchased.
• Place seasonal products and new arrivals front and center : Many retailers utilize a table display five to 15 feet inside the entrance that’s updated almost daily to show off new and limited products.
• Drive impulse sales at the point of purchase : Think candy at the grocery checkout; placing small, low-cost but useful or appealing items like phone chargers, Chapstick, and lottery tickets near the checkout counter is an effective way to drive add-on sales.
• Keep it comfortable : Shoppers who spend more time in your store also spend more money; encourage shoppers to stay awhile with Wi-Fi, product demos, and comfortable seating.

For more tips on how to merchandise your store, download our store layout e-book for step-by-step instructions.

Download Free Store Layout Checklist

Step 10: Choose & Install a Retail POS System

Another major piece of opening a retail store is selecting a point-of-sale (POS) system . Most basically, your POS system is the software that processes transactions and completes in-person sales. Modern POS systems, however, do much more than that, acting as the heart of all store management, including CRM, inventory, payment processing, ecommerce, reporting, vendor management, and more. Using a POS system will save you time, streamline all your management tools into one platform, and provide deeper insights into your business.

There are many factors to consider when selecting a POS. Before you start seriously considering different options, it’s important to write down a wish list of what features you want. Some of the criteria we use to evaluate the best retail POS systems include:

• Price: Most POS software programs charge a monthly fee, and some also charge extra for certain features like advanced inventory management.
• Setup and installation process: Some POS systems have a DIY installation process; others charge a hefty professional installation fee. You should also note the integration capabilities and process.
• Ease of use: Test out the POS to make sure the interface is comfortable to navigate; also, read user and expert reviews to be aware of any glitches or common problems.
• Inventory management: Make sure the retail inventory management solution you use has features to bulk upload orders, set stock alerts, and create purchase orders directly from the system to save you time.
• Customer management tools: Almost all POS systems have a customer directory feature, but otherwise, they vary greatly in what loyalty, marketing, and customer feedback features are included.
• Ecommerce functions: If you have plans to also sell online, make sure the POS you choose also has an online store feature so all of your inventory, customer, and order information syncs between online and offline sales.
• Payment processing: Some POS providers have built-in, in-house payment processors, and others let you integrate with third-party options for no fee.

For traditional brick-and-mortar stores, boutiques, and specialty shops, we often recommend Lightspeed . It’s a small business POS with big business functionality like custom report builders and advanced inventory management tools (such as built-in product ordering) and offers a sophisticated ecommerce platform.

Lightspeed Retail POS (Source: Lightspeed)

Choose a Credit Card & Payment Processor

Once you have a POS system selected, you need to choose a credit card processing company or merchant services provider. Some POS systems include their own in-house payment processing, while others require you to use a third party. The two most important things to consider when choosing a retail credit card processing company are price and compatibility with your POS.

When it comes to price, there are three main types of card processing fee structures:

• Flat rate: Processing companies charge a set percentage of the transaction; this is usually a good option for retailers such as convenience stores that have lower average sales (under $20).
• Interchange plus: Processing companies pass along the interchange fees from Visa, Mastercard, and similar payment processors and add a per-transaction fee on top; this is usually a good option for most established specialty shops.
• Tiered: Processors charge a different rate depending on the type of credit or debit card used in the transaction; we typically don’t recommend choosing a processor with this fee structure because it’s unpredictable and often more expensive.

Credit card processing fees can be notoriously murky and difficult to pin down. Our credit card processing fees guide defines common terms and breaks down different types of fees in detail.

Some card processing companies also charge monthly fees, and some have lengthier application processes than others. Many traditional merchant accounts also require contracts or have early termination fees. Be careful to read the fine print before signing with a card processing company.

The other thing to consider is whether or not the payment processor integrates with your POS system. Choosing a processor that integrates with your POS is ideal because as you ring up sales, they will automatically sync with your POS system’s sales data, inventory, and CRM. If you don’t have a payment processor that integrates with your POS, you have to input sales manually, and your data becomes susceptible to human error.

Read more about choosing the best retail credit card processors .

Step 11: Hire & Train Retail Staff

Last but certainly not least, you need to bring on a stellar group of employees to serve as the front lines of your business. If you haven’t hired an employee before, navigating the process can be really intimidating. Our new hire checklist outlines all of the gritty steps you need to take, such as obtaining an employer identification number (EIN), registering for state and local taxes, and so on.

As a small business retailer, it’s likely you won’t have a dedicated HR team member. And, hiring retail workers right now is especially challenging.

”We hear every day from our member companies—of every size and industry, across nearly every state—they’re facing unprecedented challenges trying to find enough workers to fill open jobs. Right now, the latest data shows that we have over 10 million job openings in the US—but only around 6 million unemployed workers”

– Stephanie Ferguson, Director at the Global Employment Policy & Special Initiatives, US Chamber of Commerce ​​

With this knowledge, it’s more important than ever to take your hiring seriously. Take a look at our tips below and read more with our guide to retail recruiting to learn how you can overcome hiring challenges for your retail business.

Write Attractive Job Posts

The first step in writing an accurate and compelling job post is to create the job description for the position you are hiring, whether store associate or shift manager. Then, consider what qualities would be a best fit for the position. Finally, add in at the beginning of the post what your company is and why your future employees will love working there – including an attractive pay and commission structure .

In addition to using an all-in-one HR management tool, also consider using an applicant tracking system (ATS) to manage your search for the perfect candidates. An ATS is a software program that streamlines the hiring process and tracks candidates from initial job posting to hire. Here are a couple resources to help you find the right ATS tool for your new business:

• Best Free Applicant Tracking Systems
• Best Recruiting Software

Start Training Before Your Grand Opening

Practice makes perfect with any skill, and customer service and store operations are no exception. You want your staff ready to deliver A+ service to your guests and shoppers from the minute your store opens, giving you peace of mind that they can handle store operations when you aren’t around. That’s where new hire training comes in.

You can also download our free opening and closing procedures checklists to provide to your staff. We recommend printing these lists and laminating them or keeping them in a clear sheet protector in a binder. Then associates can use expo markers to check things off each day and then erase the list at the end of the week for a fresh start.

Hold a paid training “boot camp” where you practice customer service skills, review store policies, outline expectations, and teach staff about the products in your store. Find ways to incorporate games and contests to keep the training engaging.

“Most of training is exposure; you tell them what to do, and they understand. But, until you commit to having a great sales process, in bite-sized lessons that you practice and role play, you won’t be able to hold employees accountable. Without accountability to execute that process every time, you’ll settle for whoever will work your shifts, you’ll cripple your ability to succeed, and invariably you’ll use the loser’s limp that Amazon was the reason you weren’t successful. Training isn’t something you did once—it’s something you do.”

– Bob Phibbs, CEO, The Retail Doctor retail consultancy

Now that your brand and store are ready, it’s time to build a retail marketing strategy . Your marketing strategy should outline everything from your pre-launch initiatives to your store’s grand opening and the first few weekends post-launch. This will ensure that people know about your store upon opening and that you are able to continue to attract a healthy mix of new and repeat customers.

Plan Your Grand Opening

You’ve put in months, if not years, of hard work conceptualizing your store and building it from the ground up—a grand opening is a perfect opportunity to introduce your business to the community with a bang.

Some ideas you can consider to boost your grand opening are:

• Hand out unique promotional gifts
• Provide product or service discounts
• Host games and live music
• Invite the local news and influencers
• Partner with a local group or charity

Market in Advance

Planning a party only to have no one show up is really disheartening and definitely not the tone you want to set for your new business. Make sure your event is well attended by recruiting friends and family, but also by starting your advertising efforts as soon as you have a date planned. Draft a press release to send to local media outlets and neighboring businesses. Create an event on Facebook. Take an ad out in the local paper. Go all out.

Need some inspiration for advertising your grand opening?

Learn how to write a grand opening press release .

Partner With Other Businesses

Working with similar but non-competitive businesses, such as spas, fitness centers, and other types of retailers, is a great way to tap into a pre-existing customer base. By involving other businesses, you’ll spread the word about your store to their customers, too. Tap into your local chamber of commerce, networking groups, schools, and even youth sports organizations. Invite members from those groups to attend your grand opening festivities.

Our final and possibly most important tip for starting a retail business is to ensure you’re fully compliant and legal. Be sure to comply with all local laws and regulations when opening a retail store, including but not limited to:

• Federal tax ID or EIN : Used to identify businesses for tax-paying purposes; this is a nine-digit number issued by the IRS that all employers need to apply for.
• Sales permit: Issued by the state and allows businesses to sell products and collect sales tax.
• Certificate of occupancy: Local government issues a certificate stating the building your business is inhabiting is up to code.
• Sign permits: Some local governments require permits for certain kinds of signage, like the one you may want to display on your storefront.
• Safety and health information bulletins: You may be required to display certain signage about employee rights or safety information; these are often provided to you, but it never hurts to check with your local government.
• Local COVID-19 mandates: Although these mandates are no longer as prevalent, you might be required to have a fully vaccinated team and put regular testing in place for those who are unvaccinated or enforce some type of mask-wearing rule.

If you’re unsure where to start or want to be sure you’re not missing any compliance aspects, check with your local town hall or municipal center and your local chamber of commerce.

Opening a retail store takes years of planning. But, putting in the time to make a detailed plan and execute accordingly will set you on a path to success once your business is operational.

You May Also Like…

• Our ultimate guide to managing a successful retail store
• Learn what retail metrics you should measure and how to interpret them to keep your store on track
• Ready to grow? Here’s how to know when it’s time to open a second retail store
• Launch an effective retail commission structure for your store and staff

About the Author

Find Brigitte On LinkedIn

Brigitte Korte

Brigitte is a retail specialist and staff writer with brick-and-mortar management experience. Before joining FSB, she managed a storefront for several years, working in everything from merchandising, to buying, to sales analysis. Brigitte also has a background in writing, research, and publishing, with an undergraduate degree in writing.

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How to Start a Retail Business: A Step-by-Step Guide

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you’re thinking about starting a business in the retail industry, you’re in good company. Although local retailers don’t get the same level of attention as nationwide brands do, small retail businesses actually make up the vast majority of all U.S. retail businesses.

In fact, researchers found that small retailers (with 50 or fewer employees) made up 98.6% of all retail businesses in 2019. To break into this vibrant industry and open a store of your own, therefore, you first need to understand how to start a retail business.

To help you through the process, we’ll guide you through all the steps required to start a retail business, as well as offer additional resources to assist you on your startup journey.

How to start a retail business in 10 steps

These steps will have you running your retail business in no time. Let’s get started.

Step 1: Find your niche.

The first decision you'll need to make in order to learn how to start a retail business is figuring out your company's niche. You may already have an idea of the type of company you want to form, or you may still be grappling to figure out where to focus your retail company. To determine your niche market, we recommend:

Explore your interests and passions: Determine what you love doing or what you'll enjoy selling.

Brainstorm potential conflicts: No industry is perfect, but figuring out what obstacles or issues you could encounter in your niche will help you plan ahead and determine if an industry is a good fit for your business.

Consider profitability: At the end of the day, you want to make money from your retail business, so you'll need to find a niche that has the potential for profitability. Generally, if your niche has absolutely no competitors, it's usually a sign there's no demand, and therefore, your focus will not be profitable. Use our guide to learn more about the most profitable business ideas.

Research competitors: Once you've found a niche market using the above three steps, it's time to research your competition. Figure out how they're marketing and selling and determine what you can learn from them and how you can improve upon what they have to offer.

Retail business examples

Deciding on your niche can take a long time. It requires significant research and the passion to work within a particular market. To help you get started in identifying your niche market, here are a few retail business examples worth exploring:

Coffee shops

Apparel shops (eyewear, sports apparel, undergarments, outerwear)

Restaurants and bars (determine a theme, whether that's the cuisine, small plates, a canteen, etc.)

Game centers (board games, video games, etc.)

Monthly box subscriptions

Pet supply shop

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Write a business plan.

We don’t doubt that you have an amazing idea for a retail store, but an idea alone isn’t enough to turn a dream into a reality. By writing a business plan, you’re providing yourself (and, potentially, future lenders and other stakeholders) a physical roadmap detailing every step you’ll take to open and run your retail business.

Therefore, when you're crafting your business plan for opening a retail store, you can start by answering essential questions about your business model:

What kinds of products are you selling?

Will you open a brick-and-mortar location, an e-commerce website , or will you take an omnichannel selling approach?

Who is your target market, and how will you market to them?

How will you set your store apart from your competition?

You’ll also need to dig into details related to your processes, answering questions such as:

Who are your vendors? How will you store your inventory?

How much staff will you need?

What will your hiring process look like?

What will your startup costs be?

How much money will you need to launch?

How long will it take for you to break even?

How long will it take for you to make a profit?

Keep in mind, however, that your preliminary business plan is exactly that—preliminary. You can always return to your retail store business plan to make changes, updates, and additions as you gain experience with starting and running your business.

Create a business budget

Along the same lines, you should also create a business budget, to the best of your ability, well before you’ve opened your doors. At this stage, you should be paying especially close attention to your startup costs.

Unfortunately, if you're wondering how to start a retail business with no money, you're going to find it's extremely difficult. Although there a variety of ways to cut costs—selling online instead of opting for a physical location, for example—there will always be a handful of costs associated with starting and launching your retail store.

This being said, in addition to standard startup costs like equipment, business insurance, and payroll, if you’re opening a brick-and-mortar retail store, you’ll have to cover some specific costs, like a down payment, potential renovations, and monthly rent and utilities for your store. You’ll also be responsible for purchasing your merchandise, shipping and delivery costs, and storing excess inventory.

And don’t forget about the other tools and software you’ll need to run your business, including a POS system, retail accounting software, and a security system to monitor shoplifting and theft.

Step 3: Register your business.

With your business plan and budget in hand, you can now move onto the next step involved in learning how to start a retail business—making it official.

Come up with a business name

If you haven’t already, you’ll first need to come up with a business name. Choose a name that reflects your business’s purpose and brand identity, allows you room to grow, and, perhaps most importantly, is actually available for use.

Once you’ve landed on your dream business name, run your moniker through a Google search to make sure another entrepreneur isn’t already doing business under that name. Then, check for trademark filings in the U.S. Patent and Trademark Office, and conduct a Secretary of State business search to make sure there isn’t another business in your area with your potential name.

Once you’ve established that your name is free and clear, you'll want to buy your domain name and create social media accounts with your name. That way, you can build a business website and launch your marketing strategy ASAP.

Determine your legal structure and register your business

Next, in order to register your business, you’ll first need to decide on your business’s legal structure. Your business structure determines how you’re taxed, the degree of legal protection you’re afforded, your business’s ownership structure, and your ability to receive business funding (in addition to allowing you to register your business in the first place).

There are lots of business entities to choose from—all of which we overview in detail in our guide to types of business entities. Additionally, we’d highly recommend consulting a business attorney or accountant to guide you through this crucial step.

Once you’ve landed on a business entity type, you can go ahead and register your business through your state’s Secretary of State website. After that, head over to the IRS' website to apply for an EIN (employer identification number) online. Your EIN is a bit like your business’s social security number, and it’ll help the government identify you for tax purposes. You might also need an EIN to apply for a business loan down the line.

Step 4: Obtain licenses, permits, and business insurance.

Some states require a general business license, while others require licenses and permits at an industry level. You may also need to acquire local permits and licenses, so consult your county or city clerk’s website for their particular requirements, too. The SBA is an excellent resource for licensing and permitting information at both the federal and local levels.

For those learning how to start a retail business, you’ll likely need to obtain multiple retail licenses related to your field, including a resale certificate, seller’s permit, and a certificate of occupancy. We also recommend partnering with a trusted business attorney during this step.

Additionally, you won't want to forget about business insurance. As a retailer, you should consider general liability insurance, a business owner’s policy, and business crime insurance; and as an employer, you’re likely required by law to carry workers comp insurance, health insurance, and unemployment insurance for your staff.

Take a look at our guide to small business insurance for more information on the types of coverage you need.

Step 5: Find a physical location and build an online store.

If your retail business will include a physical store, finding the right location is arguably the most important aspect of this process. Your location can make or break the success of your business: If you’re located in a heavily trafficked area, then your marketing efforts are practically built-in. If it’s in a tough-to-find location, or if parking is limited, then your bottom line might suffer.

The right location for your business depends largely upon who your target market is and where they hang out. If you’re opening an upscale boutique, for example, you probably want to choose a neighborhood that skews less toward students and cash-strapped millennials, and more toward people with some discretionary income to burn.

Of course, you’ll also have to keep in mind how much space you need for display areas, a back-office and break room for your staff, dressing rooms, and an inventory storage area. Your location will also depend largely upon how much room you have in your budget for renovations, store design, remodels, updates, a down payment, and your monthly rent and utility bills. That may mean opting for your second or third choice location to protect your budget.

Build an e-commerce store

Even if you always dreamed of a brick-and-mortar store with in-person transactions, we also recommend opening an online store to give your retail business as much exposure as possible.

Luckily, building and managing an online store is incredibly easy with an e-commerce platform. Here are a few recommendations to get you started:

Shopify: This platform provides an infinitely customizable, standalone store that you build and manage entirely on your own.

Squarespace or Wix: These business website platforms are simple to use and offer e-commerce functionalities.

Etsy, Amazon, or eBay: These popular marketplaces will provide you with plenty of built-in traffic and handy seller tools. On the downside, you won’t have as much control over your branding, customer relationships, or fulfillment process as you would with your own e-commerce store.

The combination of e-commerce and in-person retail is sometimes referred to as "bricks and clicks." You can use our guide to learn more about the bricks and clicks business model.

» MORE: How to start an online boutique

Step 6: Establish relationships with vendors and suppliers.

This is the next step to learning how to start a retail business—and beyond your store’s location, arguably one of the most crucial aspects of your potential success—is finding trustworthy vendors and suppliers. Your vendors might become your most valuable partners and a great vendor can present you with new merchandise, determine which products will sell best, and cut costs for you.

There are a few considerations to keep in mind as you’re searching for vendors.

Budget: Your vendors need to work within the supplier budget you’ve established.

Quality: The quality of their merchandise is crucial.

Reputation: You want to work with a supplier who is guaranteed to deliver your agreed-upon items on time and in good condition—every time you place an order.

Customer service: Remember that you’ll be working closely with your vendors, so their service team must be reliable, personable, and easy to contact in case you run into any issues.

We recommend establishing relationships with several vendors. Even if your vendor of choice is stable, reliable, and cost-efficient, you need to have a contingency plan in place—without merchandise to sell, you won’t have a business to run.

Step 7: Hire staff.

If you’ve never hired an employee before, take a look at our guide on how to hire great employees who’ll stick with you for the long run. When hiring for a retail position, make sure to interview as much for their attitude as you are for their experience. While you can train your employees to use your POS system and manage your inventory, you can’t teach them to be kinder, friendlier, or more trustworthy than they innately are.

In advance of hiring your first team member, make sure you understand your state-regulated employer requirements. Your state might require that you buy certain types of insurance for your staff. Additionally, you’ll probably need to complete some other steps, like creating a state withholding account for payroll, reporting new hires, and verifying your potential new hire’s employment eligibility as well.

Step 8: Find the right POS system.

Your POS system just might become your retail business’s best friend. It’ll certainly become your employees’ best friend—assuming you choose an intuitive, easy-to-use model, of which there are tons on the market right now.

A point of sale system combines hardware and software that enables your business to accept and process all kinds of payments. Most POS software is loaded with valuable back-end capabilities, like inventory management, employee management, CRM tools, sales reports, and vendor tracking.

If you’re opening a brick-and-mortar location, you’ll need a POS system that can accept cash, checks, contactless payments, and both chip and swipe cards. In addition, you’ll need a barcode scanner, receipt printer, and cash drawer.

For more flexibility, you might want to look into a POS system that allows on-the-go payments, too. For example, Square (and most other POS systems) has mobile card readers that plug into your phone or tablet so you can accept payments from virtually anywhere, whether that’s at a pop-up shop, craft fair, or trunk show.

Similarly, Clover also has a fully equipped, handheld POS device so you or your staff can ring up your customers from anywhere in your store.

Ultimately, you have options—a lot of them. To help you navigate the selection process, consult our guide on the best retail POS systems.

Step 9: Organize your finances.

As we mentioned earlier, it's nearly impossible to figure out how to start a retail business with no money—so, whether you have a large amount of startup capital or are operating on a tight budget, it's extremely important to organize your finances.

First, you'll want to open a business checking account . If you’re happy with your current bank, you may want to open a business bank account there. It’s logistically easier for you to maintain all your finances with the same institution. In addition, many banks offer discounts and other incentives when consumer clients open business accounts. If you want to compare your options, we recommend looking into our best business bank accounts guide.

Next, you'll want to get a business credit card . Most credit card companies allow business customers to apply for a business credit card online—which makes this step even easier than opening a business bank account.

If your business is too new to have any financial data, you can provide your personal financial information on your application. If you’re approved, you’ll receive your card in the mail in about a week or two. Use it for your business’s smaller, daily expenses, and be mindful of only using it for business-related purchases to maintain personal and business financial separation.

Get funding

Most entrepreneurs need a little (or a lot of) financial help to get their businesses off the ground. That may be especially true of retailers and brick-and-mortar business owners, who have a few extra startup costs to contend with.

Although it can be difficult to get a business loan as a startup, there are a variety of alternative options you can consider, especially as you start to run your retail store and become more established.

Finally, don’t forget to sign up for a good business accounting software solution, which will streamline, automate, and organize your business’s finances.

Step 10: Market your retail business.

At this point, you've learned the most important pieces of how to start a retail business, and now, you're ready to open your doors and get to work.

Of course, to get the word out about your business, you need to develop a small business marketing strategy, which provides you with an opportunity to get a little creative. The best marketing strategies, especially for brick-and-mortar stores, use a combination of SEO, social media, email marketing, paid online marketing strategies (if their budget allows for it), and analog marketing efforts.

At the very start of your venture, your time is best spent building a business website and creating social media accounts. Squarespace and Wix provide users with tons of customizable, professionally designed templates and built-in SEO tools. For social media, focus on creating diverse, high-quality content, posting regularly, and responding promptly to your followers’ comments and DMs—both the positive and the negative.

As a brick-and-mortar store owner, in-person marketing tactics are also important. We recommend:

Getting active in your local retailer community, networking with your fellow business owners, and participating in craft fairs and other events showcasing local businesses.

Partnering up with a local business whose target market is similar to yours and putting on an event together, or hosting pop-up shops or trunk shows in each other’s locations.

Using good sales incentives—like BOGO deals, giveaways, and free trial periods—to draw even more customers into your store.

To boost your marketing strategy, it's important to take some time to develop your brand identity. Establish your messaging, market positioning, and how your unique business can provide your customers with what they’re looking for—then create the materials to reflect those core values.

Start Your Dream Business

The bottom line

As you navigate the business formation steps, be careful not to lose sight of why you’re opening your retail business in the first place. If you remember the passion that inspired you to launch your business, you might even enjoy the finer points involved in the process—who knew finding a POS system could be so fun?

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Open a Retail Store

Coming up with a business idea isn’t easy, but making it a reality can be just as complex. These steps will help you open a retail store that lasts.

Table of Contents

The convenience and popularity of online shopping is undeniable, but in-store shopping remains an essential part of the consumer experience. In fact, 85 percent of all retail sales come from brick-and-mortar locations. An appealing shop can draw people in and create a memorable experience that leads to sales and builds customer loyalty. 

Whether you’re starting a new venture or looking to expand your online business with a physical location, opening a brick-and-mortar store requires careful planning. We’ve spoken to experts in the industry to find out the steps you need to take to make sure your retail store is a success. 

Steps to open a retail business

1. generate an idea and business plan..

The first step to opening a retail store is developing your idea and a business plan. When determining what type of store you want to open, you should answer each of the following questions:

• What will your business sell?
• Who is your target customer?
• How will you price your products or services?
• Who are the competitors in your industry and local area?
• Who will be on your team?

There are dozens of other questions that need to be answered, but opening a retail store is like starting any other business. You must determine what you want to sell and who makes up your target audience. It’s important to create a retail store that satisfies a need of your customers.  

“Know your competition,” said Juli Lassow, founder and principal of JHL Solutions, a retail business management consulting firm. “No ideas today are fully original. Understand what options your customers have to you and your offering … Once you understand your competition, build out your strategy to compete. Will it be on price? On quality? On service? On variety? Be specific on what your competitive advantage is. Know how to communicate that to your customers through marketing and presentation.”

It’s important to understand your competitive advantage and what makes your business unique. Retail is competitive, and you need to be clear on your plan to find success. Identifying how your business helps your target market is arguably the most important aspect of opening any business.

Other basic factors to consider include business funding and marketing ideas. Will you need to use business loans? [Read related article: Best Business Loans ] Will you take on investors? What types of marketing channels will you use? Does your team need people specifically for social media marketing? What online channels do your customers use?

Once you’ve answered those questions, you should write a business plan that outlines your goals and details how the business will operate. The plan should include marketing possibilities to communicate your unique selling proposition to consumers, and you should consider tech trends and marketing strategies . It should also contain important financial information like funding and the costs of running your business. 

2. Choose a name for your retail store.

In addition to the other basics that go with creating a business plan, take time to find a good business name. When choosing the perfect business name , you should consider a few factors:

• Meaning: There should be some meaning to the name from the customer perspective. That meaning may be developed over time, but you’ll want a brand name that is recognizable to customers.
• Simplicity: Look for names that are relatively short and easy to say. Apple, Google, Facebook and Nike are all major brands that are easy to say. If your brand is a mouthful, it’s probably not the best name for branding purposes.
• Uniqueness: Don’t opt for a name that’s similar to those of your competitors. Look for something original and authentic that encapsulates your business. Try to draw your own inspirations for names without looking at other brands.

The name alone won’t determine the success of your business, so while it shouldn’t be the focus when opening a retail store, you do want to make sure you have a name that fits your brand identity and that customers will remember. 

3. Cover your legal basics. 

Covering your legal basics includes choosing a business structure, following any regulations and obtaining the right licenses and permits.

“If you are opening a retail store for your business, you will need a few common business licenses and permits in order to stay in operation and remain in compliance,” said Deborah Sweeney, CEO of MyCorporation. A few of the basics include:

• A basic business operation license, which allows you to operate your business in the city, county or state you do business out of
• An employer identification number (EIN), which is a federal tax ID that allows you to hire employees to work at your storefront and ensures your business collects payroll taxes
• A seller’s license; this depends on what kinds of items your retail storefront sells; it’s recommended you check in with your state’s government office to determine whether or not you need one.

When it comes to selecting a legal structure , you follow the same process as most businesses. For retailers, however, becoming a sole proprietor can be risky. Taking on a business structure that doesn’t place liability solely on the individual owner is a good way to mitigate your risk, should the business fail.

It’s common for retailers to become corporations or limited liability corporations (LLCs) . Both of those options help limit personal liability. 

4. Get your finances in order.

Once you have a great business idea and a plan to make it happen, you need to start thinking about the financial aspects of opening a store. A physical location means incurring significant overhead costs upfront, so you should start lining up funding right away.

You might consider a small business loan to get things up and running. It’s important to research your options and try to get the best rates possible. Unfortunately, some new businesses won’t qualify for a loan, but there are many other financing options , such as investors, grants and crowdfunding. 

You should also create a list of the fixed and variable costs that may affect your business. It’s easy to brainstorm a potentially successful idea only to forget about hundreds of thousands of dollars in costs. Consider property leasing, equipment purchases, staffing needs and other costs specific to your business when developing your business plan.

5. Find the right location.

If you’re opening a brick-and-mortar business, finding a prime retail space needs to be a focal point. While it can be tempting to try to pick a cheap location and hope your business generates a steady flow of customers through its marketing efforts, sometimes there’s no substitute for being in a busy part of town. Picking a location downtown might be a pricier option, but it could bring in thousands more customers per year.

“First-time retailers need to be wary of trying to save money on rent if they are not a true ‘destination retailer,’” said Bethany Babcock, founder of Foresite Commercial Real Estate. “Poor access or awkward positioning in the center can keep clients away. The retail real estate business is very psychological, and the price [of real estate] is usually one of the last considerations for most retailers.”

When choosing a business location , you want to meet your customers where they are. Find out where your target audience spends their time, and look for a space close by. What might seem like an ideal spot could turn out to be a huge mistake if it’s inconvenient for your customers. 

Don’t forget to keep storage space in mind. If you expect to have a lot of inventory, because you sell a lot of items at affordable prices, you may want additional space. But, if you don’t keep a lot of items in stock, paying for extra square footage would be a waste.

6. Consider a pop-up shop.

If you already own an online retail business and want to expand to a physical store, experimenting with a pop-up shop is a good way to test the waters without shelling out a lot of money. These shops open in temporary locations for a short amount of time. For example, your clothing store may open a pop-up shop at a downtown event or a weekend street market.

Pop-up shops allow your business to move around or offer a physical location to attract new customers. You can gauge important data, like consumer interest and foot traffic, to see whether your online retail shop will translate to a brick-and-mortar location.

A pop-up shop can also support a brick-and-mortar location; opening one from time to time in nearby towns may pique the interest of new customers and convince them to visit your main store. Plus, it is always a good way to generate buzz around your business.

7. Create a personalized experience. 

Finding success in retail often comes from adding value that competitors don’t provide. With the convenience of online shopping, physical stores need to offer a reason for customers to visit. Personalization and a quality in-store experience are important ways to consistently attract customers.

Marco Castelán, senior principal of The Navio Group, a retail business consulting firm, said, “I think the biggest question an entrepreneur needs to ask himself/herself is simple: Can I provide the customer a new experience? It doesn’t matter that you are selling items that can be bought elsewhere. The biggest way to differentiate yourself is by creating a unique experience for the customer, because you are creating value that cannot be replicated.”  

The key is understanding your customers so you can offer them value that they won’t be able to find elsewhere. Personalize the experience in a way that makes them want to spend their money with you and keep coming back. That could mean providing helpful in-store staff, allowing them to try out products or offering free samples. Every decision you make for in-store operations should emphasize creating a unique experience for your customers.

[Are you interested in improving your customer satisfaction? Check out our best CRM software picks .]

8. Build vendor relationships.

Small business owners face challenges, and it’s important to consistently please customers despite those challenges. Building strong relationships with vendors is a good way to prevent issues. You’ll want to find a vendor who not only offers quality merchandise at affordable prices, but is also reliable and fixes issues as they arise.

It’s worth making contact with more than one vendor so that you always have a backup in case something goes wrong. Quickly developing relationships with multiple vendors will set your business up for success. However, this can prove difficult if you’re using overseas vendors.

“The global supply chain is changing rapidly,” said Lassow. “Current trade uncertainty makes it difficult to build global relationships that will provide you with the goods and services you need. If you plan to fully or partially source your products from outside of the U.S., get support. Be sure that part of your operations planning includes partnering with experts in sourcing, logistics, customs and tax.”  

9. Determine staffing needs.

Finding dependable staff is a critical part of your retail store’s success. As you develop your business plan, you should think about the different job roles that need to be filled and how many people you can afford to bring on. Make sure you have all the right state and federal paperwork and remain compliant. 

While finding employees who are qualified on paper is important, you also want to make sure that they are a perfect fit for your brand. Staff can leave stronger impressions than the actual product, so you’ll want to make sure you employ people who make customers feel welcome and engaged. 

The hiring process can be daunting, so if your budget allows it, consider a top HR outsourcing company to help find the perfect team. 

10. Choose business software solutions.

Technology has made taking care of the day-to-day tasks of running a business much easier. But to ensure that your business runs as smoothly as possible, you’ll need to dedicate time to selecting quality small business software solutions. That means determining what your specific needs are and researching the best options. 

Most businesses will need a top POS system to take orders and process payments. Many include hardware and competitive credit card processing rates. You should also consider the best accounting software to help keep your finances in order if you can’t afford an accountant. You might also consider software to help with inventory management, payroll, HR, marketing or customer relationship management. 

Whatever your software needs may be, make sure to test the product out and read all the fine print before signing a contract. You don’t want to be stuck paying more than you can afford for a product that doesn’t support your needs. 

11. Explore marketing opportunities.

Marketing is an important part of building a successful retail store. Although you have a solid product, you need to find a way to make your name stand out so people skip the competition and come through your doors. 

“You risk not standing out in a crowded marketplace,” Lassow said. “Consumers have so many options today to learn about products. They have options in where to shop. They have options for how to buy. Your retail strategy of product and marketing must reach your consumer. It must resonate with them.” 

Invest time in creating an effective marketing plan with a unique message and strategies on how to reach your target customers. That might include email, SMS or direct mail campaigns. You should also work toward building an online presence so more people can find you, whether that’s through Google, your own website or social media platforms. 

[Are you interested in using direct mail to market your store? Check out our small business guide to direct mail .]

Other marketing opportunities may come from sales or in-store discounts. Sales can be a good way to draw customers into your store. For example, offering 30 percent off select items during a holiday weekend may increase foot traffic. Coupons and loyalty programs are another great way to bring people in and keep them coming back.

Regardless of your marketing and sales tactics, it’s important to be creative. Find ways to reach your customers through creative marketing ideas. Running a retail business is a nonstop endeavor, and finding success requires quality marketing campaigns. 

12. Plan for a grand opening. 

If you’re opening a retail store, go big for the grand opening. This doesn’t necessarily mean you need to spend excessively, but you do want to make it an event. Reach out to local news outlets, as media coverage is a good way to get the word out about your business for free. Share a pitch with journalists as to why your store matters and how it fits into the local community.

In addition to securing media coverage, plug your business’s grand opening through social media and other marketing channels weeks in advance. You want to build up excitement so that as many people as possible come. Consider timing as well. Opening a store on a Tuesday at 2 p.m. probably doesn’t make much sense, but opening on a Saturday morning when lots of people are out will help make opening day a hit.

It doesn’t need to be over the top, but your grand opening should be an event you take seriously when trying to win over the local community. You want to start off strong and have a good first few days to get your business into people’s minds and win over customers. 

Smart planning will keep your doors open

Opening a retail store is an exciting endeavor, but it requires careful planning. You should first define your target audience and communicate to them how your product is unique and worth their time and money. Then, you’ll need to find a location where the majority of your customers are likely to visit. After that, the rest is up to you. As long as you keep providing excellent, personalized customer experiences, your business will surely keep its doors open for years to come. 

Bennett Conlin contributed to this article. Source interviews were conducted for a previous version of this article.

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RETAIL EDUCATION & TRAINING SOLUTIONS

Retail Business Plan

A retail business plan is a document that gives you and your potential investors a roadmap on how your new retail business intends to get started and deliver its business goals over its initial few years (usually 5 years).

It is usually broken down into sections about the company, the industry it operates in, the competition it will face and a plan that covers marketing, financials and operations over the first few years in business.

Also check out this one-page Business Model Canvas for a retail business .

Retail Business Plan Template

You can download this free retail business plan template from the link below. You will be able to edit the word file and export it into PDF format afterwards.

In the coming sections, we will explain the different components that go into the retail business plan, which you can then apply to your own plan when completing the template.

Check out more free downloads .

Executive Summary

We recommend writing the executive summary at the end of the process, after you have filled out all the other sections in the retail business plan template.

In the executive summary you will cover the following points briefly:

• Types of products sold at the store
• Customers served by the store
• Company mission & vision
• Market share to be captured

You will also mention the total amount you will need to start this business, backed by the financial plan you prepared as part of this business plan.

The total amount that you want to borrow or have invested in your business will be the sum of pre-opening costs (initial inventory, equipment, rent,..) and the maximum negative cash flow as per your cash flow plan.

If you are writing this retail business plan for a financial institution to get a loan, mention how you expect to repay the loan, and you should have already included the loan installments in your financial plan.

If you are writing this plan for investors, mention how much equity they will receive in return for this investment and the expected return on investment, and expected cash distributions (dividends) based on your financial plan.

For example

An investment of 100,000$ in the business will result in the investor receiving 20% equity. We plan to distribute 50% of the profits every year, and based on our financial projections this will be a xx,xxx$ in the first year, xx,xxx$ in the second year, and xx,xxx$ in the third year,..etc.

Company Overview

Here you will write about your business and give a brief overview about the type of store you will be starting.

You can cover the following points:

• Store category (e.g. beauty store, toy store)
• Store location and brief description of the area
• Product categories carried
• Company legal structure

Industry Overview

Write an overview about the industry (retail/ecommerce) as a whole and the most recent trends specific to this industry.

Cover areas such as:

• Total retail sales
• Contribution of your retail category to the total sales (size of the market)
• Online vs. Brick & Mortar trends
• Recent industry trends and shifts in terms of products you are selling

You can find the most recent insights about retail in our Retail Statistics page.

Read Also: What is Retail ?

Target Market

Write about your target customers that you know will be interested in your products. Mention demographic and psychographic details in this section. This will help afterwards in drafting your marketing plan.

You can cover the following details:

• Age bracket
• Income level
• Educational level
• The specific needs that your products will fill for them

FOUNDATIONS OF MARKETING

• Learn the fundamentals of marketing
• See how they apply to buying, merchandising & pricing
• Real-life case studies and examples

Competition

List the current competition in the market that are serving your target customers. Mention your top 3 competitors in your area.

You can also include indirect competition, such as online stores or marketplace sellers, if you think this might affect your business.

Cover information about:

• No. of stores
• Size of stores
• Product categories they sell
• Pricing level
• Sales per day estimates
• Strengths & Weaknesses

You can also create a summary table like the one below

Competitive Advantage

What will make customers leave the competition and come to you? Use the weaknesses areas that you mentioned about the competition in the previous section, and mention how you will improve on them.

This could be by:

• Superior quality
• Better prices
• Convenience
• More variety
• Better shopping experience

Marketing Plan

Describe your marketing strategy for your store and which channels you are going to use.

Cover the following areas:

• Brand Positioning
• Branding Strategy (Persona, tone, language,..)
• Product Strategy (Key products and product features that will attract your customers)
• Pricing Strategy
• Promotional Strategy
• Marketing Channels

Operations Plan

Write how you will operate your store and include details about your manpower plan.

This will include the management that you will hire for the store, visual merchandisers, sales staff and cashiers.

Cover the following:

• Management structure (store manager, supervisor,..)
• Staff plan (3 sales associates, 2 cashiers, etc.)
• Brief role descriptions
• Compensation structure

Read Also: Retail Scheduling

RETAIL OPERATIONS MANAGEMENT

• Managing Store Operations
• Areas of Responsibility
• Assessing & Managing Performance

Financial plan

List estimates for the capital you will need to start and financial projections for the following years.

Capital Needed

Start with how much capital you will need to start the business

This will include:

• Initial rent
• Initial product order (Inventory)
• Initial staff salary
• Store fixtures
• Store equipment

Read Also: How Much Capital You Will Need For a New Retail Store?

Financial Projections

Include a 5-year financial projection for the business based on your forecasted sales and costs.

• Monthly income statement (P&L) for the first year
• Yearly income statement for the following 4 years
• Monthly cash flow projection for the first year

Learn how to create a sales budget for a new store, and 3 years financial projections in our Retail Budgeting Course

RETAIL BUDGETING & PLANNING

• The step by step retail budgeting process
• Set monthly targets adjusted to seasonality
• Templates download & practice exercise

Break Even Point

Include a snapshot of the 5-year P&L plan here and mention the SPD (sales per day) you need to breakeven, based on your P&L numbers.

We have created a sample table with retail data in the business plan template, and you can fill it with your own numbers.

Key Assumptions

Mention the assumptions you used for creating your financial projections.

For example , you assumed that sales per day for the first year will be 1000$ and then will grow by 20% in the second year, 15% in the third year and 10% in the fourth year, etc.

Retail Business Plan Tips

Sales projections.

We recommend being very realistic about your initial sales per day projections, as your entire financial plan will be directly affected by it.

When you then forecast your growth for the coming years, you should also be realistic about how much you will grow year-on-year.

From our experience, retail stores typically see higher growth after the first year and then this starts to level off from the third year onwards.

Having said that, there might be other growth drivers that can affect your business and accelerate your growth in the following years. This could be for example that your new store is in an area that is still under development and will be fully developed by the third year.

What we want to say is, do your due diligence thoroughly and based on that set realistic expectations.

Inventory Projections

The biggest asset you will hold and the biggest part of the investment/loan you will need to start your retail business will go for inventory.

So it is important to calculate your inventory needs correctly.

This will be based on your sales forecasts and the inventory turnover rate you expect or the forward stock cover you intend to maintain.

For example, if your inventory turnover target is 2, this means you maintain a 6 months cover. If your inventory turnover is 3, you maintain 4 months stock cover,..and so on.

We recommend checking out the benchmarks we have listed for different retail categories for inventory turnover and reading our complete Open to Buy guide to get started with calculating exactly how much inventory you will need.

Good luck in your new venture!

THE PROFESSIONAL RETAIL ACADEMY (PRA) ™

• In-depth retail management courses
• Learn the best practices of the industry
• Download ready-to-use professional templates
• Get certificates of completion for each course
• One membership = Access to all courses

More Resources

Thank you for reading this article on Retail Business Plan. We recommend the below free resources as well:

• Retail Management
• Starting a Retail Business
• Buying a Retail Business

Join the academy and get all access to all our resources, which will help you manage your retail business more efficiently.

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Learn how to manage a retail business end-to-end.

We’ve put together a curriculum, specifically designed for retail owners or retail professionals who want to advance into senior management roles.

Learn how to connect the dots of the business and take the basic knowledge to the next level of application . 

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Home » Sample Business Plans » Wholesale & Retail

How to Write a Retail Store Business Plan [Sample Template]

Are you about starting a retail business? If YES, here’s a complete sample online retail store business plan template & feasibility report to help you get started. Okay, so we have considered all the requirements for starting a retail store. We also took it further by analyzing and drafting a sample retail store marketing plan template backed up by actionable guerrilla marketing ideas for retail stores. So let’s proceed to the business planning section.

Why Start a Retail Store?

There are times when one might not be disposed to buy stuff in bulk. This might be due to financial constraint or other contingencies. This is one of the reasons why retail outlets are scattered all over the world. They know the importance of reaching all and sundry, and that is why they want to provide services that can reach all classes of people.

Those who are already in the trade know the huge profit levels which they attain always. If you have decided to start a retail business, then good news is that you are in a profitable trade, as nearly all the type of goods that are being dealt in is such that is important to all

A Sample Retail Store Business Plan Template

1. industry overview.

When we talk about retailing, we talk about a business that deals in loads of consumer goods; which can be categorized into three major areas. These categories are: general merchandise, apparel, and furniture. In other words, retailers are engaged in the selling of finished goods; they get the goods from the manufacturers and they sell to the end users (consumers).

Retail goods can also be categorized into durable goods and non – durable goods. Durable goods are goods such electronics, computers and accessories, furniture, and other large appliances et al and non – durable goods are good such as food, toiletries, drinks, beauty products, jewelry, clothing and shoes et al.

The retail industry is a major sector of the economy of the united states which generates a whooping sum of well over trillion annually from more than a million retail outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 15 million people which is about 12% of the workforce of the U.S. eMarketer.com published that in 2014 alone, the retailing industry on a global scale generated a revenue of well over $22 trillion; it goes to show that the industry is indeed a very large industry.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S. In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing industry negatively which may result in the closure of some retail stores.

In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located.

It is interesting to note that more retail shops; especially lager retail outlets have started to include self-serve checkout lanes in their stores. It creates shorter lines that appeal to consumers; the average customer would not want to stay longer on queue.

Over and above, the retail industry is a profitable industry and it is open to any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.

2. Executive Summary

People’s Choice Retail Shop is a retail shop that will be located in one of the busiest streets in Columbus, Ohio. We have been able to lease a facility that is big enough to fit into the design of the retail shop that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Columbus, Ohio.

Our retail shop will retail a wide range of durable goods and non – durable goods at affordable prices from different brands. We retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, baby stuffs, children’s toys, home furnishings and home appliances et al.

We are aware that there are several large and small retail outlets all around Columbus, which is why we spent time and resources to conduct our feasibility studies and market survey, so as to offer much more than our competitors will be offering. We have sell service options for our customers, and our outlet is well secured with the various payment options.

Much more than selling the goods and products of top brands in the manufacturing industry, our customer care is second to none in the whole of Columbus, Ohio. We know that our customers are the reason why we are in business, and that is why we will go the extra mile to get them satisfied when they visit our retail shop and also to become our loyal customers and ambassadors.

People’s Choice Retail Shop will ensure that all our customers are given first class treatment whenever they visit our shop. We have a CRM software that will enable us manage a one on one relationship with our customers, no matter how large the numbers of our customers base. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when make some business decisions.

We are aware of the trend in the retail industry and we are not only going to operate a system where our customers would have to come to our shop to make purchase or whatever they want but we will also operate an online store and our customers can order goods online and they will get it delivered to their houses or any location they want us to deliver the goods to within Ohio.

People’s Choice Retail Shop is a family business that is owned by Bob Wesley and Family. Although the business is launching out with just one outlet in Columbus, Ohio, but there is a plan to open other outlets all around Ohio.

3. Our Products and Services

People’s Choice Retail Shop is in the retailing industry and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. We retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, children’s toys, baby stuffs, home furnishings and home appliances et al.

4. Our Mission and Vision Statement

• Our vision is to establish a one stop retail shop in Columbus, Ohio and in other cities in Ohio.
• Our mission is to establish a retail business that will make available a wide range of goods and products from top manufacturing brands at affordable prices to the residence of Columbus, Ohio and other cities in Ohio.

Our Business Structure

People’s Choice Retail Shop do not intend to start a retail business like the usual mom and pop business around the street corner; our intention of starting a retail business is to build a standard retail outlet in Columbus, Ohio. Although our retail business might not be as big as Wal-Mart or Marcy, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Store Manager:

• Responsible for managing the daily activities in the restaurant
• Ensures that the store facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Controls the sales floor inventory
• Ensures that goods and products are properly arranged
• Supervises the entire sales staff and workforce
• Any other duty as assigned by the CEO
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of goods and products on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Receives payments on behalf of the organization
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Interfaces with our bankers
• Responsible for payment of tax, levies and utility bills
• Any other duty as assigned by the CEO / store manager
• Responsible for cleaning the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Any other duty as assigned by the restaurant manager,

6. SWOT Analysis

Our intention of starting just one outlet of our retail store in Columbus, Ohio is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over Ohio. We are quite aware that there are several retail stores all over Columbus and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

People’s Choice Retail Store employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for People’s Choice Retail Store;

Our location, the business model we will be operating on (physical store and online store), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for People’s Choice Retail Store.

A major weakness that may count against us is the fact that we are a new retail outlet and we don’t have the financial capacity to compete with multi – billion dollars retail outlets like Wal-Mart and co when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to be operating our retail store in one of the busiest streets in Columbus, Ohio, provides us with unlimited opportunities to sell our goods to a large number of people. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our retail outlets; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new retail outlet in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Retailing business has been in existence for as long as humans started trading goods, but one thing is certain, the retailing industry is still evolving. The introduction of technology and subsequently online retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for retail outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help retail shops serve them better.

Another common trend in the retailing industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for retail stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable elsewhere. For example; it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4, $100 and $200.

Retailers also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

Perhaps the retailing industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a retail shop. It is difficult to find people around who don’t patronize retail shops.

In view of that, we have positioned our retail store to service the residence of Columbus, Ohio and every other location our retail stores will be located all over Ohio. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of products to the following groups of people;

• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our Competitive Advantage

People’s Choice Retail Store is launching a standard retail shop that will indeed become the preferred choice of residence of Columbus, Ohio. Our retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Columbus, Ohio. We have enough parking space that can accommodate well over 100 cars per time.

One thing is certain; we will ensure that we have a wide range of products available in our store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goal is to make People’s Choice Retail Store a one stop shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

• Sources of Income

People’s Choice Retail Shop is in business to retail a wide range of products to the residence of Columbus, Ohio. In essence, our source of income will be the retailing of a wide range of durable goods and non – durable goods at affordable prices. We will retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, children’s toys, baby stuff, home furnishings and home appliances et al.

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. One thing is common with retailing business, the larger a retail store the larger the numbers of customers that will patronize them.

Although we may not be as large as Wal-Mart, but we will ensure that within our capacity we make available a wide range of goods from different manufacturing brands in our retail outlet. Below are the sales projections that we were able to come up with for the first three years of operations;

• First Year-: $200,000
• Second Year-: $450,000
• Third Year-: $700,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for People’s Choice Retail Store, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Columbus, Ohio. We have a detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Columbus, Ohio. In order to continue to be in business and grow, we must continue to sell the products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver.

In summary, People’s Choice Retail Store will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters to residence, business owners and organizations
• Promptness in bidding for contracts
• Advertise our business in community based newspapers, local TV and radio stations
• List our business on yellow pages ads
• Leverage on the internet to promote our business
• Direct marketing
• Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our retail store. People’s Choice Retail Store has a long term plan of opening outlets in various locations all around Ohio which is why we will deliberately build our brand to be well accepted in Columbus before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise People’s Choice Retail Store;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around Columbus, Ohio
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our retail store is located.

12. Our Pricing Strategy

Pricing is one of the key factors that give leverage to retail stores, it is normal for consumers to go to places (retail outlets) where they can goods at cheaper price which is why big player in the retail industry like Wal-Mart will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Wal-Mart or any other big retail store, but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst retail stores within our level.

• Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Ohio – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of People’s Choice Retail Store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500 .
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of products) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000 .
• The cost of Launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our retail store in Columbus, Ohio. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for People’s Choice Retail Store

People’s Choice Retail Store is a private business that is solely owned and financed by Bob Wesley and family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

People’s Choice Retail Store will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – suppliers of all our needed raw materials: In Progress

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Retail Store Business Plan

Retail store is a competitive business as competition is intense in this segment. Moreover, many big giants are investing more in e-commerce and digital marketing, making this business even tougher day by day.

Having a physical retail store that offers a shopping experience along with products is a dream for many. It is not only because of the size of a business but the potential and opportunities such a business offers.

And if you are an individual who likes to interact with people, constantly improve your way of doing business, and form communities that work towards something, then you might have thought of having your retail store business.

Now, a retail store has great potential for success, but it is also a very competitive business. You’ll need a retail store business plan to help you stand apart from your competition and have a thriving business.

Industry Overview

Research suggests total retail sales in the United States were projected to amount to 6.03 trillion U.S. dollars in 2022, up from around 5.4 trillion U.S. dollars in 2018, according to the National Retail Federation .

Retail businesses come in many forms such as grocery stores, restaurants, and bookstores. There are around 4 million retail businesses in the United States alone.

The domestic retail market in the United States is very competitive, with many companies recording strong retail sales. Walmart, a retail chain giving low prices and a wide selection of products, is the front-runner in the United States. Amazon, The Kroger Co., Costco, and Target are a selection of other notable U.S. retailers.

Now, to have any genuine hope of getting noticed in such a jammed industry, you need a solid business plan to get success.

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Things to Consider Before Writing Your Retail Store Business Plan

Build a brand image.

A brand image goes a long way for any business, especially for a retail store. It is crucial to pay attention to what people think about your store, what emotions they associate your brand with, and how they perceive your products in general. Above all, what qualities make you different from your competitors?

Pick the right location

A retail store’s location can make or break the deal. Hence, it is very important to pick a location that is both convenient and accessible for your customers. As people are always running short of time, they prefer a store that is on the way and takes less time to get to. It can also act as your USP over the bigger retail stores.

Plan a good store design

A good store design that follows the major principles of consumer psychology is essential for a retail store. The strategic placement of products influences a customer’s buying decisions. Hence, you need to pay attention to it and design your store in a way that maximizes your sales.

Build communities that promote your brand

Building communities that stand by and promote the idea of your brand can be extremely beneficial for your retail store. Hence, ensure that you work towards building one. These communities can be driven by anything from a common belief to a certain cause that your brand stands for.

How Business Plan Can Help?

Regardless if you’ve been operating for a long time already, by writing up a business plan for your retail store, you can get an overview of what you want to achieve with your business, and guidelines for how you’ll achieve your goals.

A retail business plan is a solid foundation for the success of your business, whether you seek funding or not. It helps you see clearly what your business looks like and how it’s positioned in your target market.

If you need to get funding, your retail business plan will work as proof that you and your business are good for investment. Studies suggest you can double your chances of securing a loan with a business plan and grow your business.

How to Write a Retail Store Business Plan?

Writing a retail store business plan requires a good amount of research, a thoroughly competitive and customer analysis, and a little bit of extra help.

You can get help for writing your plan either through a premade template on the internet or through an online business plan software which will help you write a customizable plan anywhere and at any time.

Before you start writing your business plan for your new Retail store business, spend as much time as you can reading through some examples of retail & e-commerce-related business plans .

We have created this sample business plan for you to get a good idea about how a perfect retail store business plan should look like and what details you will need to include in your stunning business plan.

Retail Store Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Company Profile Summary
• Market Research Summary
• Marketing Summary
• Finance Summary
• Business Overview
• Company History
• Legal Structure Vision & Mission
• Industry Profile & Market Size
• Local Market
• Target Market
• Competitor Analysis
• Keys to Success
• Customer Survey Summary
• SWOT Analysis
• Products and Services
• Pricing Strategy
• Marketing Strategy
• Primary Marketing Activities
• Positioning Statement
• The Sales Process
• Strategic Alliances
• Location(s)
• Legal Issues
• Insurance Issues
• Human Resources (Or Team)
• Process/Production
• Risk Assessment
• Startup Funding & Capital
• Start-Up Costs
• Sales Forecast
• Projected Profit & Loss

What to include in a Retail Store Business Plan?

A retail store business plan consists of several different aspects. The major ones are as follows:

1. Executive Summary

The executive summary gives an overview of what your business stands for the reader. It should be written in such a way that even an outsider could get an idea of what your business is all about.

This section mainly comprises your business summary, your vision and mission statement, and your financial summary.

2. Company Profile

The company summary or company profile section of your business plan would consist of everything about your company, ranging from its location to information about your team.

While the executive summary section consists of information about the functional aspects of your business, a company summary consists of information about the structural aspects of your business.

While writing a company summary, it is a good practice to take suggestions from your team, as this section represents you as a team of individuals more than representing you as a brick-and-mortar company.

3. Market Research

Conducting market research helps you understand what you are getting yourself into. It helps you understand your target market, your competitors, and the working of the industry in general.

You can conduct thorough market research by using tools like PESTEL analysis or SWOT analysis . These tools help you conduct research specific to your business and prevent you from wasting your time on vague data.

4. Marketing Plan

As a retail store, it is your primary job to let your customers know about your existence. And to retain them once they start coming to your store.

A good marketing plan would help you do just that.

Based on the information you have gathered about your target audience through market research you can design your marketing campaign and promotional offers that’ll appeal to your customer base.

5. Operations

As a retail store, a proper operations plan can prevent your business from turning into a chaotic mess. An operations plan consists of your business’s logistic and functional information. It helps an outsider see what a typical day at your business looks like.

It also consists of your long-term and short-term goals. As well as the milestones you’ll have to reach for achieving them.

As a retail store business, your operations plan would consist of your supply renewal cycles, your backup distributors, a plan for the working of your store, your daily sales targets, and your long-term expansion goals, etc.

6. Financial Plan

A financial plan ensures that your business sails smoothly through tough times and also generates maximum profits.

It would consist of your funding requirements, cash flow projections, and profit forecasts.

As a retail store financial plan would consist of the funding requirements for setting up your store, buying supplies, and hiring people. It would also consist of your projected profits and break-even analysis.

Download a sample retail store business plan

Need help writing your business plan from scratch? Here you go;  download our free retail store business plan pdf  to start.

It’s a modern business plan template specifically designed for your retail store business. Use the example business plan as a guide for writing your own.

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Retail Store Business Plan Summary

In conclusion, a retail store business plan helps you organize and manage your store better. It takes care of everything that goes behind the scenes of running a retail store, so you can greet your customers with a smile.

From angry customers to poorly stocked supplies, a business plan can save you from all of it.

After getting started with Upmetrics , you can copy this retail store business plan template into your business plan and modify the required information and download your retail store business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Bookstore Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their bookstores. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a bookstore business plan template step-by-step so you can create your plan today.

Download our Ultimate Bookstore Business Plan Template here >

What Is a Bookstore Business Plan?

A business plan provides a snapshot of your bookstore as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Bookstore

If you’re looking to start a bookstore or grow your existing bookstore you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bookstore in order to improve your chances of success. Your bookstore business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Bookstores

With regards to funding, the main sources of funding for a bookstore are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a bookstore is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of bookstore business you are operating and the status; for example, are you a startup, do you have a bookstore that you would like to grow, or are you operating a chain of bookstores.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the bookstore industry. Discuss the type of bookstore you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of bookstore you are operating.

For example, you might operate one of the following types:

• Traditional bookstore : the traditional bookstore maintains a broad inventory of books in a variety of genres and subjects.
• Religious bookstore : this type of bookstore stocks primarily religious books and accessories.
• Used bookstore : this type of bookstore sells books that have been previously owned.
• Specialty bookstore : this type of bookstore stocks books for a particular niche audience (i.e. New Age, Comic Books, etc.).

In addition to explaining the type of bookstore you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the bookstore business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the bookstore industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards cookbook consumption, it would be helpful to ensure your plan calls for a substantial cooking section.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your bookstore business plan:

• How big is the bookstore business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your bookstore. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your bookstore business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bookstore you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most bookstores primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Bookstore Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other local bookstores.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes online bookstores, ebooks, libraries, etc. You need to mention such competition to show you understand that not everyone who reads frequents a bookstore each day.

With regards to direct competition, you want to detail the other bookstores with which you compete. Most likely, your direct competitors will be bookstores located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products?
• Will you provide products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bookstore business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of bookstore that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to books, will your bookstore include a cafe, where it will offer items such as coffee, espresso, bakery items, etc.?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.

Place : Place refers to the location of your bookstore. Document your location and mention how the location will impact your success. For example, is your bookstore located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your bookstore marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your storefront extra appealing to attract passing customers
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Social media advertising
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your bookstore such as serving customers, procuring new books, keeping the store clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 5,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your bookstore’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the bookstore business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in bookstores and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 20 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your bookstore, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bookstore:

• Location build-out including design fees, construction, etc.
• Cost of fixtures like shelving, seating, and cafe fixtures like grinders, espresso machines, blenders, refrigerators
• Cost of acquiring and maintaining an adequate inventory
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Bookstore Business Plan Summary

Putting together a business plan for your bookstore or an online bookstore business plan is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the bookstore business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful bookstore.

Download Our Bookstore Plan PDF

You can download our bookstore business plan PDF . This is a business plan template you can use in PDF format.

Bookstore Business Plan FAQs

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You can download our bookstore business plan PDF template here . This is a business plan template you can use in PDF format.

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How To Start An Online Store In 8 Steps (2024 Guide)

Updated: May 6, 2024, 10:07pm

Table of Contents

1. pick a viable niche and define your target audience, 2. choose your product line, 3. create your brand name and brand assets, 4. register your business, 5. choose an e-commerce platform, 6. build your e-commerce website, 7. optimize your site, 8. tell the world, why e-commerce is important, frequently asked questions.

Whether you have unique handmade items you’d like to sell or you want to start a wholesale or dropshipping business, you’ll need a great website with eCommerce functionality to be successful online. With relatively low upfront costs and many great code-free site builders available, it’s easier than ever to start an eCommerce business. In this article, we’ll show you how to start an online store in just eight easy steps. Make your eCommerce business dreams a reality today!

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The first step in starting your online store is to determine a niche market you’d like to serve. One of the biggest mistakes new business owners make is not focusing on the three components of choosing a niche:

• Profitability: You want a niche that is profitable so you can see a return on your investment and build a profitable online store. If a product is too expensive to manufacture or purchase wholesale, it has a low potential for profitability. Similarly, a product might be too expensive to ship and may be better suited for selling in person.
• Searchability: The best e-commerce stores stock in-demand products people search for. If you’re looking to start an online store that sells dog leashes, for example, make sure “dog leashes” is a keyword you target. Use SEO tools to determine products people search for.
• Passion: Consider your passions. For example, what do you enjoy talking about or researching? When you’re passionate about what you sell, you’ll be more likely to stick with it when times get tough. Not only that, but you want customers to direct people to your store because you’re the expert in a particular field, product or service.

Your target audience is just as important as your niche. You want to make sure the products you sell will interest them and that they can purchase what you’re selling with no trouble. Don’t ask people for their opinion on your product if they’re not in your target audience.

Once you’ve determined your niche and target audience, it’s time to decide on your product or service line. This can be the hardest part of starting your online store. You want to make sure you’re not selling a product that’s too expensive to produce or that no one is searching for. It’s also important to make sure you have the resources, such as storage and shipping, to accommodate your products.

If you choose a product that’s already popular, how will you differentiate yours from the best? Can you improve on an existing product? How will you make sure your online store is the go-to source for this product?

Once you know what you want to sell, the next step is to choose your brand or business name and create your brand assets, such as your logo. For some, this step might come very easily and, for others, this can be very challenging. One way that businesses often weed through name ideas is by going to a domain name registrar, such as GoDaddy and searching for available domains. The reason is, ideally, you want your domain name to match your business name.

If you’re not sure where to begin when creating your logo, Canva is a great place to start. It offers dozens of free and easy-to-customize logo templates. In case you don’t want to try your hand at logo design, you can always hire someone to do it for you from platforms like Fiverr and 99Designs.

To process payments for your online store, you’re going to need employer identification number (EIN). To get an EIN, you need to register your online store as a business in your state. While you can register as a sole proprietorship or corporation, generally small businesses register as a limited liability company (LLC), which helps protect your personal assets should your company get sued.

There are also tax advantages to creating one for your new company, so check with your tax advisor to see if an LLC is the best option for you. The process of registering your business will vary from state to state, so it’s best to refer to your state’s Secretary of State for more detailed information on the process. Alternatively, you can always use a business registration service , such as LegalZoom or ZenBusiness.

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Next, it’s time to choose an e-commerce platform. This is the platform where you will build and manage your online store. There are a number of great e-commerce platforms to choose from, such as Squarespace, Shopify and Square. However, each platform comes with its own unique set of features, which impact affordability, capabilities, and user-friendliness, so it’s worth taking the time to find the right one for you.

Here are a few of the best e-commerce platforms for easily building an online store:

• Squarespace: Best for web design beginners looking to easily build a beautiful online store with built-in marketing tools for as little as $14 per month with annual billing.
• Shopify: Best e-commerce platform for building a dropshipping store. Plans start at $29 per month and typically involve the purchase of a premium theme for around $250.
• Square: Best for those on a budget as it offers free plans, as well as those planning to sell in-store and online.

For more insights and information and to help you choose the right one for your online store, check out the best e-commerce platforms .

Once you have decided which e-commerce platform you want to use, the next step is to go to that platform and create an account and begin building your online store. While the steps will vary depending on which platform you’re using, typically the steps will more or less involve the following.

How to build an online store website:

• Navigate to the e-commerce platform of choice, such as Square, and create an account.
• Choose a domain name (typically included with a plan–if not, purchase separately).
• Select a template or theme.
• Add your business name and logo.
• Customize your homepage as well as all other web pages.
• Add your products and create product listings.
• Set up a payment processor.
• Configure settings, such as tax or shipping calculators.

Follow along with our detailed step-by-step instructions that walk you through how to build a website .

Once your online store is up and running, optimize it for search engines so that it can get found online and in search engines, such as Google. This will help your website increase its visibility, gain more website visitors, and generate more sales–all for free.

Here are a few things you can do to optimize your site:

• Title tags: The title tag is the text that appears on the search engine results pages (SERPs). Your title tag must be descriptive and relevant to your product or service.
• Meta descriptions: The meta description is the text that appears under your title tag in the SERPs. Use descriptive and interesting language that encourages people to click through to your site.
• H tags: The H tags are the headings on your page. Make sure they’re descriptive and help explain what the page is about.
• Images: Include images on your page and ensure they’re properly tagged with keywords.

Once your online store is up and running, you need to market it. The reason for this is that building a business through SEO is a key component in your long-term strategy. Marketing your products and services will help bring in traffic now.

Here are several ways you can promote your online store:

• Add your brand to online directories.
• Work with influencers to promote your brand.
• Online advertising, such as Google Ads or Facebook Ads.
• Use content marketing to help your site get found online.
• Create social media profiles and become active on them.
• Referral or loyalty programs.
• Use press releases (if you have highly unique or groundbreaking products).
• Join an affiliate marketing program.
• Try word-of-mouth marketing.

The best way to promote your online store depends on your business and the products or services you’re selling. Successful marketing campaigns contain many, if not all, of these strategies at the same time. Try a few different methods and see which ones work best for you.

There’s a reason the current generation is often called the instant gratification generation: our world is more connected—and easily accessible—than ever. With a few clicks of a button, people from all over the world can purchase your products and services 24/7, 365 days per year, provided you have an online website. Sometimes, this is referred to as an e-commerce store. The overall look, speed and quality of your site can make or break a sale.

How much does it cost to start an online store?

The cost to start an online store varies depending on the platform you choose and the features you need. Some platforms are free to use, while others have a monthly fee. You can find e-commerce platforms for less than $30 per month. Then, just pay for marketing, products and shipping.

Where can I get products for my online store?

You can get products for your online store from a variety of sources, including wholesalers, manufacturers and distributors. Popular aggregators of manufacturers include Alibaba and DHgate. Many store owners use sites like Faire or Abound for wholesale products.

How do I start an online store with no money?

The easiest way to start an online store with no money is to sell services or digital products and choose a free e-commerce platform. This way, you only pay per transaction. Examples include printable products, editing services and PDF workbooks.

What is the difference between an e-commerce platform and e-commerce hosting?

An e-commerce platform gives you the tools to design an attractive-looking page or series of pages for customers to visit and learn more about you but that website has to be hosted somewhere, which is what an e-commerce website host does. Websites are hosted on platforms that can support the traffic being sent to them.

What are the most important sections that my online store should have?

In addition to having sections for your goods or services and a place to check out, you should also have sections or pages that include your contact details, an about page that provides details about your store and its offerings, a frequently asked questions (FAQs) page that can help answer some of the questions your customer may have regarding your store of what you have to offer and a policy page that offers you some form of legal protection in case there are disputes―this section or page should deal with information related to your liability, return policy, privacy policy and similar issues.

What are some easy businesses to start?

One of the easiest businesses to start also has the lowest overhead: selling digital goods. This can include items such as e-books, online courses, audio files or software. If you have expertise in a particular area or niche, this is a great option for you. Dropshipping is also a great option because you don’t have to keep inventory. You could also buy wholesale products or create your own. Once you create your product, you can sell it through your own website or third-party platforms, such as Amazon or Etsy.

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Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.

Electronics Store Business Plan PDF Example

• May 23, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful electronics store business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your electronics store business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of an electronics store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the recreation industry, this guide, complete with a business plan example, lays the groundwork for turning your electronics store business concept into reality. Let’s dive in!

Our electronics store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your electronics store’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the store’s design, key features, and the benefits of its location (e.g., foot traffic, accessibility).
• Products & Supply: Lists the types of electronics you will sell (e.g., smartphones, laptops, accessories) and outlines your supply chain and sourcing strategy.
• Operations: Details the day-to-day operations of your store, including staffing, inventory management, and customer service.
• Key Stats: Provides data on the electronics market size , growth trends, and other relevant statistics.
• Key Trends: Discusses current trends affecting the electronics sector, such as technology advancements and consumer preferences.
• Key Competitors : Identifies your main competitors and explains how your store will differentiate itself.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers, including promotions, advertising, and customer service initiatives.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the electronics store and their roles.
• Financial Plan:  Projects the electronics store’s 5-year financial performance, including revenue, profits, and expected expenses.

Electronics Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your electronics store’s business plan, offering a concise overview of your store and its offerings. It should detail your market positioning, the range of electronic products and services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your electronics store will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your store’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your store’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For an electronics store, the Business Overview section can be concisely divided into 3 main slides:

Store & Location

Briefly describe the store’s physical environment, emphasizing its layout, design, and the overall atmosphere that makes it inviting for customers. Mention the store’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to major shopping centers, public transportation, or ample parking facilities. Explain why this location is advantageous in attracting your target clientele.

Products & Supply

Detail the range of electronic products and services offered, from consumer electronics like smartphones, laptops, and home appliances to specialized items such as gaming consoles, smart home devices, and professional audio equipment. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any exclusive products, warranty services, or membership programs that provide added value to your customers, encouraging repeat business and customer loyalty.

Provide an overview of the daily operations of the store, including store hours, inventory management, customer service protocols, and sales processes. Explain the supply chain and vendor relationships that ensure a consistent stock of popular and in-demand electronics. Mention any technology or systems in place for efficient operations, such as point-of-sale systems, inventory tracking software, and customer relationship management tools.

Make sure to cover here _ Store & Location _ Products & Supply _ Operations

Market Overview

Industry size & growth.

In the Market Overview of your electronics store business plan, start by examining the size of the electronics industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in smart home devices, wearable technology, and sustainable electronics. For example, highlight the demand for products that offer enhanced connectivity, energy efficiency, and cutting-edge technology. Discuss the growing popularity of e-commerce and the trend towards integrating online and offline shopping experiences.

Key Competitors

Then, consider the competitive landscape, which includes a range of stores from large electronics chains to specialized boutiques, as well as online retailers. Emphasize what makes your store distinctive, whether it’s through exceptional customer service, a unique range of products, or specialization in certain technology segments. This section will help articulate the demand for electronics, the competitive environment, and how your store is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

SWOT Analysis

First, conduct a SWOT analysis for the electronics store , highlighting Strengths (such as a diverse product range and knowledgeable staff), Weaknesses (including high operational costs or strong competition), Opportunities (for example, a growing demand for smart devices and e-commerce expansion), and Threats (such as economic downturns that may decrease consumer spending on non-essential electronics).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Finally, create a detailed timeline that outlines critical milestones for the electronics store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the electronics store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the electronics store toward its financial and operational goals.

For your electronics store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your electronics store’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs , and capital expenditures.

For your electronics store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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There are several key steps to launching a business in the state of California. These steps will vary according to the type of business you intend to start and the county and city in which the business will be located. Therefore, be sure to check specific rules and regulations within the county and city in which you want to conduct business, and any other agency’s requirements regarding zoning, licensing, employment, permits and taxes. The “ Starting a New Business in California ” brochure should be used as a general tool to help you broadly assess how to start a business in California, not as a direct step-by-step guideline. In order to maintain your business, there may be recurring reporting, fees, taxes and filings that the business must provide to state, local, and federal agencies.

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How to open a liquor store

The old saying goes that no matter what the economy is doing, people still have to eat and drink – and judging by forecast liquor sales of billions in 2024, drinking alcoholic beverages is also a necessity.

With sales of liquor expected to grow every year for the rest of this decade, opening a liquor store may seem like a slam dunk – and if you do your homework right it can be. However, liquor stores are among the most regulated retail businesses in the UK, with laws covering every aspect of the operation. Add in expensive inventory, strong competition, high licensing costs and increasingly savvy customers and it doesn’t take much imagination to see that operating a liquor store can also be hard work.

But let’s suppose your business dream is to own your own liquor store no matter what. How do you get there, what hurdles must you cross and most importantly, what will it cost? Let’s find out. Read on to discover all you need to know about opening a liquor store.

How do I start a small liquor store?

Opening a small liquor store comes with the same fundamentals as opening any kind of store, you can either start from scratch with a brand-new business, or you can buy an existing liquor store with an established customer base. However, that’s about as far as the similarities go, because opening a new liquor store or taking over an existing store can be one of the most challenging of retail ventures. 

Why is this?

• Liquor stores must be licensed. Depending on where your store is located, licensing costs can run into the hundreds of thousands of pounds, although £10,000 is more typical.
• You’ll need good security to protect your premises and fragile stock and insurance to cover loss by accident, theft, or disaster as well as any liability to customers, employees an d suppliers. You may also need liquor liability cover that protects your inventory from specific events, such as rapid temperature change or cross-contamination.
• Liquor store inventory can be expensive to buy. Some specialist wine and spirits retailers carry stock worth £millions. You’ll also need to learn about different types of alcoholic beverage and shape your offerings to your clientele. Today’s liquor store customers are more discerning and well informed than they were only twenty years ago. They will expect you to know a lot about the products you sell.
• Alcoholic drinks are heavily taxed. You will need to collect and pay taxes to various governing agencies. This can mean a lot of regulatory paperwork and you will probably need to invest in purpose-built software to do the calculations for you.
• Beer, wine and spirits are sold by many types of retailers, not just specialist liquor stores. Big box stores, supermarkets and discount chains typically sell these types of products on low margins, making their profits through high volume. If you’re operating a small liquor store it is unlikely that you can compete on either price or volume, so you will need to find other ways to make customers choose your store – rare brands, tastings, expert knowledge, wine clubs etc.
• Lastly, your liquor store will be subject to ever-changing laws on alcoholic beverages. (For example, age-identifying laws – also known as ‘card laws’ – where you are legally required to check the age of younger customers). You must stay on top of these regulations to avoid fines or penalties that could see you lose your license. 

However, despite these issues, there is plenty of good news for budding liquor store owners: Firstly, if you get the basics right, running a small liquor store can deliver good income – typically delivering a profit margin of 15% to 20% and annual profits of £300,000 to £1million. Secondly, liquor stores can be a good bet for a number of other compelling reasons:

• Demand for liquor is constant – customers continue to buy regardless of season or the state of the UK economy.
• Liquor products have long shelf-life – you don’t have to worry about expiry dates.
• You can sell liquor in-store or online – your customers can be near or far and wide.
• High set-up costs for liquor stores keeps competition down – pick the right location and you may have the area all to yourself.

How to open a liquor store: Step by step

Key steps to open a liquor store include: 

1. Write a business plan

If you’re seeking external investment or a commercial business loan to open your store, you will need a detailed business plan to support your pitch or application. Investors and lenders will want to know why you need their funds and what the money will do for your new store. Business plans should do more than paint a rosy picture – explain the risks involved, what the downsides could be – and how you intend to overcome them. 

Even if you don’t need investment or a loan, a business plan can still be a very useful vital tool. Use it as your business manual, referring to the contents to guide your strategy and manage your financials.

Find out more about creating your business plan here.

2. Find the store or location you want to buy or rent

Where your store is located can have a major impact on the success of your business. Take the time to research different locations, measuring the competition and the size of the local population. You want a store in an area where foot traffic is high and local incomes can support your store and the kind of drinks you sell. Once you have a target area, you can either look for vacant store units to lease, or you can look for an existing liquor store that is up for sale. 

Starting in a vacant unit will cost less than buying an established business, but you will have to build your customer base from scratch – that will take time and more cash for marketing. Also, will your working capital be able to cover the time lag until your sales reach breakeven? If you choose to buy an existing liquor store, make sure you ask all the right questions and inspect the books carefully. Critically, you need to know why the owner is selling. Are they retiring or is the business struggling – if the latter, find out why.

3. Get funding

If you don’t have enough cash on hand to launch your new business on your own, you’ll need funds from investors or lenders. Many new businesses get started using financial support from friends and family, but if that’s not an option, there are networks of venture capitalists and angel investors readily available online. Bringing in external investment can give you the cash you need to get your liquor store off the ground but be aware that investors will usually want a piece of the action in exchange for their money. This means you will need to give up a share of your ownership and you may lose overall control of the business. 

With a business loan you don’t have to surrender a share of your store to get the funds. Although it’s never easy for new businesses to borrow money, some lenders have special products and programs for startups and entrepreneurs. These types of financing include:

• Term loan – this is a lump sum that you pay back over time. Borrow up to £5million over as long as 25 years. Collateral may be required.
• Business line of credit – a loan that functions like a high-value credit card. Withdraw cash anytime up to the maximum of your credit limit. You only pay interest on the sum you withdraw, not the whole line. This can significantly reduce your borrowing costs. Collateral may be required.
• Merchant cash advance – borrow against the value of your credit/debit card sales. As your card sales increase, your credit limit goes up. Pay the loan back with a small percentage of your weekly or daily card sales. No added collateral is required.
• Equipment loans use the asset you’re financing as security, similar to a car loan or a residential mortgage, so no added collateral is required.  Buy machinery, furniture, technology, etc. Use the equipment as you pay for it. 

To get these types of loan you can approach banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will immediately introduce you to a choice of startup loans from different lenders. Some marketplace platforms can also give you advice and help you with the application process . This can be especially useful for borrowers who have never taken out a startup loan before.

4. Register your business

You’ll need to register your liquor store with local, state and federal authorities. But before you do that, you’ll need a name for the business. You’ll want a name that is not taken by another organisation, as infringing on someone else’s brand name and copyright could end up in a costly lawsuit. 

You will also want a website and branded email addresses for your store. Check to see if your preferred company name is also available as a domain name . If your domain name is available, you should be able to buy it via any of the advertised web hosting services. 

Once you’ve settled on a name, you must decide if you want to run the business as a sole proprietorship , an LLC or a corporation. Although it involves more paperwork, operating as a corporation can protect you if the business does not succeed, as you are not personally responsible for the company’s debts. If you choose this route, you must submit your articles of incorporation to the secretary of state’s office in the state where you register. You can do this in-person, online, or by mail. You will have to pay a registration fee at the time of filing – typically £100.

5. Get licenses and permits

Liquor stores are governed by a host of laws, and you will need to get the necessary licenses and permits. Don’t be tempted to start trading without the proper licensing as that can lead to large financial penalties or even prosecution.

How much does it cost to open a liquor store?

Opening a liquor store is not cheap. Even if you choose to start with a brand-new store instead of buying an existing business, licensing and permits can cost £10,000 or more. Then you have the physical expenses such as store leasing, fit-out costs, utilities, equipment and initial inventory. On top of this are employee wages, training costs and marketing and advertising. Legal expenses and insurance can also cost several £thousand. Add it all up and starting a new liquor store will typically cost at least £100,000. If you choose to open your business in a major city, or you opt to buy an existing and successful liquor store, the upfront costs can be many hundreds of thousands or even a few million pounds.

How much does it cost to stock a liquor store?

Liquor stores can carry expensive stock, with some rare or specialist brands or vintages costing several hundred pounds per bottle. Even if you choose to focus on cheaper drinks, such as craft beers, you will still need a good selection of brands and plenty of inventory. 

At the end of the day, how much you spend stocking your new store will depend on who your target market is, what your main products are (wine, beer, spirits, etc.), and what your average price point is. The more high-end you are, the more your stock will cost. On average, new liquor store owners aiming for mid-market customers can expect to spend at least £35,000 on initial inventory.

How Swoop can help

Running your own liquor store can be lucrative and a lot of fun, but you’ll need a lot of liquid cash to get you there. Funding is where Swoop can really help. No matter if you’re launching a brand-new liquor store, or you’re buying an established business, chances are you’ll need finance to make the operation grow. Many types of business loans are suitable for liquor stores, but working with finance experts can make all the difference when applying for funding. Contact us to discuss your borrowing needs, get help with loan applications and to compare high-quality business loans from a choice of lenders. Make your liquor store the toast of the town. Register with Swoop today.

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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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A new Wilmington wine bar is coming this fall in the site of a former comedy club

A new wine bar next to FranksWine shop in Wilmington is planned to open this fall on the site of a former comedy club.

Business/building owners Frank and Colleen Pagliaro say they hope to open Anura Wine Bar in October after renovating the interior and exterior of the space at 1206 N. Union St., near the corner of Pennsylvania Avenue. It had last been the home of the House of Laffs comedy lounge , which closed in November 2022.

The comedy club closed when the owner was evicted from the Wilmington building for failing to pay $270,000 in back rent and other fees such as legal, utilities, water and sewage, real estate tax and insurance.

Frank Pagliaro has owned the building that also houses his wine/liquor store for 37 years. It was known as Wilmington's longest-running nightclub spot and was once the home of The Alley.

Pagliaro has leased out the 6,500-square-foot space to 12 tenants over the years — the best-known nightclub was probably the former Porky's Dance Club in the 1990s — and he said he no longer is interested in offering long-term leases.

Pagliaro said he and Colleen, a pediatric pharmacist who has worked in restaurants and as a bartender, gained the confidence to open a wine bar after the success of outdoor cafe events they hosted that included live music and food trucks in the parking lot of FranksWine shop during the pandemic.

The Anura name is a nod to the frog logo at FranksWine, known as Jeremiah. Anura refers to any of an order of amphibians comprising frogs, toads, and tree frogs.

The wine bar has a license to serve alcohol, and the Pagliaros plan to serve food. Since June 2023, the kitchen of the space has been used as a commissary by Chef Robbie Jester for his thriving catering business. Jester is known for winning competitions on the Food Network and the Netflix series "Pressure Cooker ."

New in Delaware: Restaurants offer BYOB social club, dumplings, smoked cocktails and hot chicken, more

The building was originally a bowling alley that opened in 1941. The space is getting a complete interior and exterior overhaul that includes remodeled restrooms, more space for kitchen preparation, a patio that's compliant with the Americans with Disabilities Act, and a new bar that will offer a Cruvinet wine system similar to a beer tap.

"We're going to pull out everything and do it the right way," Pagliaro said, adding, "No nightclub."

He said the space could be opened before and after theater events in nearby downtown Wilmington and used for parties, wine tastings and pop-up events.

"There's no way to just do a wine bar and sustain it. We're going to have to have other events here," Pagliaro said.

Upcoming events that the Pagliaros say will give people a glimpse at what's coming this fall include a five-course May 17 wine dinner with food prepared by Jester and beverages from California Winery Owner & Winemaker Gus Kalaris of  Axios Napa Valley Winery . The cost is $125 per person and includes gratuity. Visit frankswine.com .

If you want to read more stories from Patricia Talorico, click  here. You can find her on  Instagram , X (formerly Twitter)  and  Facebook . Email [email protected]  or leave a message at 302-324-2861. Sign up for her Delaware Eats newsletter.