Business Idea

Start A Retail Business

About

Starting a retail business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell retail products, or selling retail products online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a retail business ➜

Key stats

market size
$240T
revenue (monthly)
$669K
starting costs
$44K
gross margin
53%
time to build
11 months
growth
Word of mouth
business model
E-Commerce
time investment
Side project

About

Starting a retail business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell retail products, or selling retail products online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a retail business ➜

Key stats

market size
$240T
revenue (monthly)
$669K
starting costs
$44K
gross margin
53%

 

time to build
11 months
growth
Word of mouth
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,700
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $5,236
Other Expenses $0 $300
Total Startup Costs $9,204 $75,697

Successful Businesses

Business URL Rank
Urban Outfitters urbanoutfitters.com #3,015
Pacsun pacsun.com #4,530
WalMart wal-mart.com #5,526
MYER myer.com.au #8,114
Makro makro.co.za #10,987
CheaperThanDirt.com cheaperthandirt.com #15,190
Perú Retail peru-retail.com #39,116
Farmers farmers.co.nz #61,471
Retail TouchPoints retailtouchpoints.com #87,084
House house.com.au #89,617
Cuballama| Llamadas, Recargas y Nauta cuballama.com #97,331

Pros & Cons

Pros Description
Daily physical activity Retail Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts Working in the retail business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss! With starting a retail business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community One of the best parts of starting a retail business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.
Location is everything! When operating a physical storefront, the location often speaks for itself and serves as it's very own marketing tool! It's important to choose a location in a high traffic area so you can spark curiosity and get people through your door!
Face to face interaction If you are the type of individual that thrives on human interaction, then this is the business for you! With a retail business, you will be hands-on with customers and or employees every day.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
High employee turnover In the retail business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
High overhead expenses With starting a retail business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
Time commitment With starting a retail business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜