You’ve decided to open a little local shop! What fun, right? Be your own boss, set your own rules, make loads of money and become a recognisable face among your town’s successful independent traders.
At first glance being an independent shopkeeper is definitely a desirable way to make a living, whatever you fancy selling, but like anything that appears to be an easy option, there are pitfalls which you need to avoid at your peril, particularly in the first year or so of operation. Many a small retailer has been sunk by innocently making some basic errors, leading to losses and failure.
What is it REALLY like owning your own shop? Knowing the answer to this question will prepare you to face the fundamentals.
I spent the morning at a thriving Frome “indie” store, and compiled a list of “do’s and don’ts” courtesy of owner Donna:
- Forget about ever scheduling time off – weekends and holidays are exactly when business is most brisk, so you need to be there to make the most of it. Likewise, get used to eating lunch on the run – as soon as you bite into your sandwich, a customer is sure to arrive!
- Cash flow can be a problem – surprise expenses have a way of creeping up on you, and you will seldom reach your sales targets. Keep a contingency fund to tide you over for occasions such as when you ordered those 1,000 yellow jumpers you were sure would be a hit, and they’re still sitting on the shelf three months after you had to pay the supplier.
- That leads us on to getting rid of old/dead stock. Mark it down and sell it off periodically, even if you have to drop the price to near the margin. Making something out of it, which you can put back in to buying something more saleable, is better than have it gathering dust.
- The customer is NOT always right, but you have to do your best to keep your cool, bite back your harsh words, and keep smiling. One seriously annoyed customer can do your business a great deal of damage, no matter how many happy customers you have.
- Use social media regularly to keep your name alive in the minds of local shoppers – and gather a database of email addresses/mobile numbers to send out occasional promotional messages. Don’t be a spammer, though – that will just put people off. It’s also not a good idea to express your political or religious opinions to your clientele – it’s a certain bet that a large percentage of your customers will disagree with you and resolve to never darken your door again!
- If you need to employ staff, go for quality rather than quantity. One well-paid top quality worker is worth more than a dozen poorly performing people on minimum wage. It’s also unwise to employ friends or family – awkward if it doesn’t work out and you have to fire them.
- To succeed in a shop you need to be a good organiser. Dealing with stock coming and going needs a clear mind. That doesn’t mean you’ll manage to keep your stockroom and back office tidy, though – just do your best to keep the clutter at bay.
- Sales reps from wholesalers and suppliers can be troublesome, likewise those nuisance calls from merchant services telemarketers, or consultants offering unsolicited advice. Sometimes they may have something useful to offer, though, so be polite.
- Be firm, and never be afraid to say no. Remember no-one else cares about your business as much as you do.
It’s hard work, but as most independent retailers will tell you, there is plenty of satisfaction to be had from running a successful enterprise and being part of a local community of shopkeepers. If you do it right, you may even make a profit.
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