A free report from Inside Retail, aimed at young and established indies. It’s filled with insight and advice from some of the biggest names in the industry.

1. OPEN FOR
BUSINESS:
THE DO’S AND DON’TS
TO HELP NEW RETAILERS
SURVIVE AND SUCCEED
In Partnership with:

2. WELCOME
I2i Events Group is proud to play
such an important role within the retail
industry with some of the biggest
retail events in the UK. Spring Fair
and its sister show, Autumn Fair, are
vital to the home and gift sectors of
retail; Pure London, the womenswear
and accessories markets; the
Jewellery and Watch Show for the
UK’s jewellery retailers and Glee for
all those involved in the £1.7 billion
garden centre sector.
What we’re particularly conscious of
is that across all these shows, it’s the
independent retailer that represents
the volume of all visitors. I’ve been
involved with the retail industry across
many sectors for some years now
and I know just how tough it has
been for independents. Not only have
you had to defend your businesses
from the power of the big multiple
retail groups but also the effects of
economic downturns. Somehow,
the costs of doing business rarely go
down accordingly, which has had a
knock-on effect on the ability of many
independents to survive.
But the UK’s retail sector is incredibly
entrepreneurial and it is heartening to
see so many new retailers continuing
to open as well as new online retail
concepts. At i2i Events Group we
feel strongly that we can in some way
play a proactive role in helping and
supporting those budding retailers
considering opening a business,
or indeed those that have only just
opened. Through our new Inside
Retail initiative we want to provide
help and support through important
publications such as this, but also via
our teams of market experts attached
to each of our retail shows.
We very much hope you find this
report helpful, supportive and
inspirational. Please do talk to us if
you’d like more information or would
like to find out more about ways in
which we can support you or direct
you to association partners like Bira.
We look forward to seeing you at one
of our shows and finding out how
you’re successfully building your new
retail business.
Welcome from Louise Young,
MD of Retail, i2i Events Group
“THE UK’S RETAIL SECTOR IS
INCREDIBLY ENTREPRENEURIAL
AND IT IS HEARTENING TO SEE
SO MANY NEW RETAILERS
CONTINUING TO OPEN
AS WELL AS NEW ONLINE
RETAIL CONCEPTS”
2
CONTENTS
Why independent retailing
matters 4
The shop of the new 6
Here’s the good news for
start-ups 8
The online challenge 11
Selling to the world 14
Banking on success 16
How pr and social media can
work for you 18
On setting up shop
independently 20
Case study Young Ideas 22
Case study Aria crafts 24
Case study Aubeterre blue 25
Contacts 26

3. 3
WHAT THIS REPORT
WILL DO FOR YOU
“THIS REPORT HAS BEEN
PRODUCED TO PROVIDE
INVALUABLE HELP,
SUPPORT AND INSPIRATION
FOR ANYONE THINKING
OF LAUNCHING OR
WHO HAS JUST LAUNCHED
A RETAIL BUSINESS”
provides invaluable support for its members
and also to anyone seeking help and
information on the retail sector.
Throughout the report you will be able to hear
from experts on: how to make your business
idea and concept robust; how to select your
first store; your key considerations during
the nerve-wracking early months and
years; how to embrace the essential
online opportunity and how to
ensure that you have that vital
point of difference that attracts
and retains loyal customers.
PARTNERS
Total retail sales in the UK in 2014 were an
incredible £333 billion. Retailing is an enormous part
of the UK economy and its importance goes well
beyond just the volume of money being put through
tills. It employs more people in the private sector
than any other, the value of goods purchased by
retailers generates jobs around the world and is 5%
of our Gross Domestic Product.
Retailing is highly competitive and is undergoing
enormous change and associated challenges. That
much is undeniable. But it is also highly dynamic
and responsive to consumer trends and demands.
Get it right and you can build a great business. This
might explain why retailing accounts for 9% of all
VAT registered businesses or 192,595 companies.
That translates into 281,930 shops – the majority
being run as small, independent businesses.
New retailers are being launched constantly and this
has picked up in recent years as budding
entrepreneurs spot the opportunities on high streets
being vacated by many larger national chains.
This report has been produced to provide
invaluable help, support and inspiration for
anyone thinking of launching or who has just
launched a retail business. It would not have
been possible without the help and partnership
of a number of associations, companies and
publications. In particular, the British
Independent Retailers Association (Bira) which

4. 44
“There’s an evolutionary resilience in
smaller format retail that suits our appetite
for localism and convenience. If these
trends are captured and enhanced huge
progress is possible.
We’ve recently seen a recession driven retreat
from the High Street by many of the big names.
Yet, what many people wouldn’t have predicted
even a few years ago is that they are being
replaced by independent retailers. This is great
to see; it gives the variety and difference that
the people who regularly shop there desire
whilst enhancing the sense of community.”
Mary Portas,
Broadcaster, retail consultant and campaigner
for the UK high street.
Taken from “Why our high streets still matter”
2014
WHY INDEPENDENT
RETAILING MATTERS
Retail Week has been covering and reporting
on UK retailing for over a quarter of a century. It
was launched in 1988 when the big story was
the rise of what became known as the
multiples – the major retail groups that were
opening stores at a frantic pace. Since Retail
Week launched, the number, shape and
identity of many of these giant multiple groups
has changed dramatically. Many of the big
names have disappeared. Others have
emerged. Throughout this time, the
independent, small retailers have gone
unnoticed. However, the focus that has
belatedly fallen on our high streets, town and
city centres has also meant that
commentators, planners and politicians
have woken up to the importance of
independent retailers. They represent the
entrepreneurial spirit which lies at the heart of
retailing and as those that have survived begin
to move into units vacated by many multiples,
we should see them as offering vital lifeblood to
UK retail.”
Chris Brook-Carter,
Editor in Chief, Retail Week
4

5. 55
“Modern retailing is evolving rapidly right
around the world. When I travel to many
different markets it is incredible to see the
vibrancy of retailing in Asia, the Middle East,
India or Africa for example. International
retailers and luxury brands are a key part of this
and you increasingly see familiar names in
shopping malls anywhere in the world. What
fascinates me though is that what really gives
character to any country are the small,
independent retailers. And closer to home, here
in the UK, this is also true. UK retailing is long
established and mature but remains truly
dynamic. Despite the pessimistic forecasts
about our town centres, new ideas do still
spring up. Literally. Landlords, keen to fill empty
units, are happy to encourage the
phenomenon of pop up shops. Artisan and
craft markets are booming as consumers crave
something new and different. Retailing will
always remain one of the most competitive
sectors but it does also mean that it responds
fast to change. Independent retailers bring
much needed excitement and variety because
they know that to survive they have to offer
something different.”
Ian McGarrigle,
Founder and Chairman,
World Retail Congress
Running a fashion shop remains an attractive
option for many budding entrepreneurs despite
the obvious challenges in the current economic
climate. Remember that the rate of growth for
online is plateauing and more than 70% of
fashion is still bought offline, that is in a physical
store. The most important aspect of a fashion
retailing business plan is to have a good
financial footing – cash flow management is
king.
For established retailers too, it is essential to
have an honest and transparent relationship
with suppliers. It behoves all enterprises to be
aware of what’s going on in the world and how
a significant proportion of consumers now
research the market. I am not convinced that
every independent ought to sell online – in fact,
many find it too much hard work for too little
reward – but every progressive shop owner
should have an attractive website for marketing
purposes. They also ought to find someone to
explain the benefits of an active social media
strategy and to implement one. They must
make it easy for consumers to find the shop
among the competition.
Eric Musgrave,
Editor in Chief, Drapers
Independent retailers continue to play a vital role within the
retail infrastructure across the UK. To understand more about
the importance of independent retailers, we asked a selection
of experts and retail editors for their views.

6. THE SHOP OF THE NEW
Finding the right shop for your start-up business is one
of the biggest decisions to get right. Property editor
Mark Faithfull asks the experts for their advice.
WHAT IS POP-UP AND HOW
DOES IT DIFFER FROM A
STALL IN A MARKET OR
STAND IN A MALL?
We classify pop-up space as
any short-term, empty retail
space. This can be anything
from an empty shop on a high
street, to an entire building, a
gallery, a warehouse, or a more
quirky space such as a boat or
a disused bus depot! It’s also
possible to book ‘ShopShare’
space, which is a concession
space within an existing store.
WHY A POP-UP AND WHAT
TIPS WOULD YOU GIVE
ABOUT CHOOSING
LOCATION, TENURE ETC?
Think about a pop-up as an
excellent way to test your
business concept, build
awareness of your brand and
meet customers. We Are Pop
Up has worked with hundreds
of designers who started out
over a weekend or a few days
and have grown to established,
successful companies.
The beauty of a pop-up is that
you can test different locations
Britain might once have been called a nation of
shopkeepers but the post-2008 recession has left far
too many high streets up and down the country with
little more than betting outlets, charity shops and the
odd tatty corner store nestled between boarded up
shop-fronts. With online marketplaces and low cost
websites an alternative to the big financial
undertaking of opening up a first shop, it is perhaps a
wonder that so many independents continue to
spring up around the country.
Yet even among the global powerhouses of the pure
online players there is a growing interest in
establishing a physical connection between the
brand and the consumer and it is something that
arguably only a store can provide.
Taking that first step is a major decision for any young
business. Location, size, rent, neighbouring tenants,
category mix and the affluence and demographics of
the local catchment are all important, as are the terms
of the lease and how easy it is to get out of a contract
if things don’t work out.
Tough times have turned many – though by no means
all - landlords into more responsive and collaborative
partners, while there are also some shopping centre
operators and local councils which will dedicate
space and resources to entrepreneurial newcomers.
Add to that the huge rise in short lease properties and
the choice of how to establish that first retail presence
has never been greater, nor more confusing.
TOP TIP
POP - UPS: A SMARTER WAY TO SET UP SHOP?
Abigail Freeman,
director of projects partnerships,
We Are Pop Up
6

7. easily – don’t be afraid to
experiment, and try something
unusual or unexpected.
Choose somewhere that
complements your unique
brand and your style. When
you’re picking a space, look at
what’s going on in the
surrounding area – who are the
neighbouring brands, is
passing foot traffic the right
demographic for you, does the
culture fit your brand? If you’re
going for a ShopShare, is there
an exciting brand clash you can
do that will draw attention to
your story? Why not pop-up
your floral prints in a florists or
your menswear in a barber’s
shop?
HOW DO YOU MAKE A
POP-UP WORK?
People pop-up for a number of
reasons, so to make a pop-up
work, really think about what
success looks like. Is it purely
sales? Is it purely awareness of
your brand? Is it educating
customers about your product
range? It could be any or all of
these, but keep the aim in
mind. We like to encourage
brands to use the ‘lean start-up
methodology’ of measure, test,
learn as you go along. We
encourage our customers to
not be afraid to experiment and
take risks. Collaborate with
like-minded brands to build
your networks and tap into
each-others’ customer
base, and make use of all
the incredible social media
tools at your fingertips, to
tell your current customers
where you are, and to reach
out to new ones.
TAKING THE PLUNGE
WITH YOUR FIRST STORE
Martin Acton, partner,
retail services team,
Cushman Wakefield
Mark Faithfull,
Editor, Retail Property Analyst
WHY THINK ABOUT A
PHYSICAL STORE AND WHERE
SHOULD IT BE?
It makes sense to choose a
first location close to the main
business because that makes
life easier as you will probably
be spending a lot of time
there in the beginning. That will
probably outweigh the issues of
cost. However, if your brand has
a very specific proposition then
you also need to be sure that the
location is right for that brand
placement
WHAT COSTS DO FIRST-
TIME RETAILERS NEED TO
ACCOUNT FOR?
All of a sudden you will go from
having very simple costs at say a
concession to paying rent, rates,
service charges, electricity bills,
phone bills. You will be involved
in design costs and bringing in a
shopfitter. There are a lot of things
to consider in one go and you
need the finances to cope.
AND WHAT ABOUT COVENANT
ISSUES?
If you have run a good wholesale
business then you may well have
strong accounts to back you up.
However, it is likely that you will
set up a new business to run the
property operation and this may
well mean the landlord asks for
a guarantee or more probably a
rent deposit of six months. For
the retailer this means finding the
deposit, then paying the quarterly
rent bill up front. This can be tough
if rent free periods are short in
a good location. Landlords on
stronger retail streets or malls
may be more flexible about
deposits if they like the brand or
can see a good shopfit going in,
as they will be more confident of
being able to re-let the unit.
SO WHAT DOES A
PROSPECTIVE RETAILER DO
FIRST?
Don’t be frightened by the
prospect but take advice. Get
yourself a good solicitor and
bring in a property agent.
You will have to pay them a fee
but this is an important decision
and just as in many walks of life,
getting good advice is extremely
important.
7

8. HERE’S THE GOOD
NEWS FOR START-UPS
So here’s my ‘High Five’
for small business success:
CHOSEN: Understand you sell nothing that
can’t be bought somewhere else. Even if it’s
unique at the moment, it’ll soon be copied.
So it’s not what you do, but it’s how you do it
that’s the key to success. Broadly speaking,
customers are looking for solutions so you
must always adopt a mind-set of being in the
business of being chosen. No matter how
different your particular dress design is, how
flavoursome your pies are or how well you cut
hair – you are just one of the many ‘solutions’
customers can choose. So you must fully
embrace the fact that you’ll only be chosen,
or repeatedly chosen, if you make the
1
At the heart of any successful retailer are its customers.
Retailers have to persuade them to enter their stores. It
is probably one of the hardest things to achieve
consistently because customers are human beings and
hard to predict. To help provide some answers, we
asked Martin Butler, author and lecturer, to share
some of the secrets to help any aspiring retailer
establish that all-important customer appeal.
The future of retail is local! Not only does my
global research indicate this… but Wal-Mart,
the largest retailer on the planet, is on the
record agreeing with it too. In fact, around the
world, the biggest challenge the heavyweights are
having is making their gigantic businesses genuinely
relevant to local markets, local people, local feelings.
That’s why convenience stores are the flavour of the
month or why individual coffee shops are stirring
things just the way customers like…nowadays
people want to be ‘excited and delighted’ and they
love it when you make it personal!
So for start-ups and small businesses the time
couldn’t be better.
The modern customer is loving localness, loving
dealing with someone they know, someone they can
relate to. The big boys use algorithms, analysis and
big data but it’s nowhere near the same as being
served by someone who genuinely ‘cares’ ….deep
down, customers don’t like being treated as one-of-
the-cloud. Winning the war for the modern customer
is all about curated ranges, curated services…
acknowledging that customers want authentic, not
synthetic experiences.
The cookie cutter is dead - scale no longer
guarantees success. It’s all about the individual.
And the great news is, this all means the time has
never been better to start (or reimagine) your own
businesses. Big is no longer beautiful, done
properly: small trumps everything. Customers
want everything on their terms; it’s called ‘me-tail’
- modern businesses selling products and services
for individuals, by individuals.
8

9. 2
3
customers feel they are very special indeed…I
call it ‘emotional edge’. As this suggests it’s
something that’s emotionally based and
something that will give you cut through…by
being authentic as well as emotionally based
it should also make it more difficult for
competitors to copy!
PURPOSE: Know very clearly why your
business exists. As Steve Jobs is believed to
famously enjoy asking, you must be able to
passionately explain to everyone and anyone
‘what wrong you’re going to right’ in this
world. When you explain your purpose to
customers they should be as excited as you
and your teams are! And guess what, if
making money is your purpose there’s very
little chance your customers will be as excited
as you. Profits should only ever be viewed as
an outcome – making you rich is certainly not
the ‘reason’ a customer will chose you. So
keep it passionate, and change the world for
the better by knowing exactly why you and
your business exists.
HUMAN BEINGS: Hey big surprise,
customers are 100 per cent human beings…
so always keep it appropriate and personal.
And most importantly remember, according
to various stats’ women control over 85 per
cent of customer spending including 60 per
cent of boys’ toys and incredibly they
influence 70 per cent of male
fashions. It doesn’t really matter
how accurate these actual
figures are in your
“PROFITS SHOULD
ONLY EVER BE
VIEWED AS AN
OUTCOME – MAKING
YOU RICH IS NOT
THE ‘REASON’
A CUSTOMER WILL
CHOSE YOU”
9
Martin Butler, Author and lecturer
BOOKS: People don’t buy what you sell,
they buy what you stand for…published 2005
The art of being chosen…published 2010
Towards customer obsession (working title)…
in research, publishing late 2015

10. particular village, city or country - you get my
point. When it comes to customers, women
are significantly more important than the 51
per cent they represent numerically!
TRUST: Never ever, ever forget the most
important point about human beings - no one
is going to buy anything from anyone they
don’t trust; certainly they won’t buy from
them ever again if they can’t trust them. Trust
is a feeling, an emotion and it has to be
earned. So at all times view your business as
being on the customers’ side in all its
dealings. Do this and you will start to earn
their respect and from this, over time, trust
will develop…hey why not underpin your
business with a proper ‘no quibble’ guarantee
– and don’t be tempted to run your business
for the 2 per cent of customers who’ll try to
rip you off, 98 per cent won’t!
EASY: And as all customers are human
beings please remember …we are hard-wired
to ‘love’ easy. So in every way, every day,
strive to make life as easy as possible for your
customers. Success is all about developing a
mind-set of ‘easy everything.’ Forensically
look to remove all psychological and physical
barriers to purchase. When a customer wants
to browse in store or online, make it easy.
When they want to buy, make it really easy.
When they’re ready to pay make it really,
really, easy! No human being ever said, oh I
wish they’d made it a bit more difficult for me!
And finally where does digital fit into all this?
The answer is everywhere.
The world’s most successful businesses
realise the digital landscape changes every
time the sun rises. But digital is still only a
mechanism – albeit a vital mechanism. The
art is to use this wonderfully evolving science
to help your business be chosen by more
people, more often. Use it to recognise what
a good business decision looks like, use it to
acknowledge your customers are human
beings not numbers. Use it to stay relentlessly
relevant. But sorry, by the very nature of the
beast, there’s no other advice I can give on
digital that will be relevant tomorrow!
So passionately go follow your dream…
the time is perfect to be in the business of
being chosen.
“NO ONE IS
GOING TO BUY
ANYTHING FROM
ANYONE THEY
DON’T TRUST.
TRUST IS
A FEELING,
AN EMOTION
AND IT HAS TO
BE EARNED”
4
5
10

11. 11
THE ONLINE CHALLENGE
Just in case you didn’t know, the internet is shaking up
retailing. But does it affect even your new, one-shop
business. Yes, says retail expert, Martin Newman, and
sets out what you need to do to ensure you win your
share of business.
Are you thinking of starting an independent retail
business? If you are, then you also need to
consider the requirement and the opportunity to
have a website to support your store business.
It is important to let customers choose how they
shop with you, which is why it’s key to have a
website as an alternative channel for customers to
engage with you. It also represents an opportunity
for you to extend your reach as you can potentially
reach out to more customers over a broader
geographical area than you can do with your local
store business.
WHAT’S THE CUSTOMER VALUE
PROPOSITION? You might also think of this in
terms of what’s your USP? What will make your
retail business stand out and why will customers
want to buy from you? What’s the value to them
in doing so? And how will you price in relation
to your competitors?
You also have to think about what the customer
convenience proposition will be.
From an online perspective, you need a clear
convenience proposition. What delivery and
returns options will you offer? Will you charge for
these or offer them free? Much will depend upon
what you sell, what your average order values are
and what your competitors do.
Martin Newman is founder and CEO of
specialist retail consultancy Practicology.
He brings years of experience as head of
ecommerce for retailers such as Ted Baker.
He is also currently a Non Executive Director
for White Stuff and Conviviality plc.
“A WEBSITE IS AN
ALTERNATIVE CHANNEL
FOR YOUR CUSTOMERS
TO ENGAGE WITH YOU”

12. WILL YOU OFFER CLICK AND COLLECT?
There are advantages to doing so. You’ll convert
more customers, and you’ll be able to sell them
more products when they come into your store to
pick up.
PRODUCT RANGE You’re only as good as the
product you sell. Are there any gaps in your local
retail environment that you could fill with an
independent retail store?
The web also provides the opportunity to offer a
slightly different product range. Unlike in your
store, you’re not limited by physical space
therefore you can potentially offer a broader range
of products online.
SUPPLY CHAIN Continuity of supply is
absolutely crucial. So whatever, you sell, you need
to know that you can replenish stock in a timely
fashion, otherwise you risk disappointing
customers.
TECHNOLOGY If you’re going online, you need
a web platform. This is the technology that sits
behind the front-end customer experience and
drives the functionality of the website. When you
start your retail business, you also need to think
about the store. You’ll need electronic point of sale
(EPOS), and when you’re planning the selection of
your technology, you need to think about how all
of these systems will talk to each other, as they will
need to do so if you want to offer click and collect.
There are potentially other systems you might
need including systems to manage finance, stock,
product information and content.
SITE DESIGN There is a saying that you
shouldn’t get your creative (Site design) from
technology companies (Who build your platform).
You will need someone to design the front end of
the website and build out your ecommerce
proposition.
You also need to ensure that your site is fully
optimized for mobile devices (That includes
smartphones and tablets) as that is where you will
reach most of your customers moving forward.
HOSTING AND DOMAIN NAME The website
needs to be hosted somewhere. Your web
development provider, sometimes known as a web
development agency or system integrator, will be
able to help with this.
When you’re coming up with a name for your retail
business, make sure you check the domain name
availability for your website at the same time.
There’s no point in coming up with a name for your
store that isn’t also available for your brand online.
You can acquire this from a vast number of
domain name registration companies online.
CONTENT AND VM You will need to produce
content for your website. This is also known as
visual and product merchandising. Of course,
you’ll also have to produce visual merchandising,
also known as point of sale material for the store.
CUSTOMER ACQUISITION Customers can just
walk into your physical store, but the same may
not be true for your website. First of all you need
to ensure that the website is search engine
optimized (SEO). You will need your agency to
advice you on this, but in essence the site should
be populated with content and meta data that
enables the search engine to crawl and index your
site. This will also include relevant keywords that
relate to what you sell, a good site map that can
be successfully crawled by search engines, the
meta tags that tell the search engine and web
users what your site is about and alt tags for
images that provide a brief description of the
image.
“IT’S CHEAPER TO RETAIN CUSTOMERS THAN
ACQUIRE NEW ONES, YET MOST RETAILERS
FOCUS ON THE LATTER”
12

13. 13
THE WEB CONTENT
YOU’LL REQUIRE
WILL INCLUDE:
• Product images
• Lifestyle, or brand related
images
• Product descriptions
• Static, customer service
related content including
terms and conditions,
frequently asked questions etc.
• You will also need to think
about how the content will
influence your natural search
engine ranking
Click and collect allows you to convert
more customers
You will also need to consider how else to market your
website. You can promote it in the windows of your store
as well as on all packaging. You will also need to promote
it online through search engine marketing (SEM). This is
where you pay or bid to acquire traffic when someone
keys in a relevant keyword for your business such as
black dress, cheap flights, gifts, washing machines etc.
The other marketing opportunities include retargeting;
this is where the user has been on your site, goes
elsewhere but sees an advert for your business.
The other key channel is affiliates. This is where other
publishers send traffic to your website and get a
commission on any sales made.
CUSTOMER RETENTION It’s cheaper to retain
customers than acquire new ones, yet most retailers
focus on the later. You should think about how you can
build a lasting relationship with your customers so that
you enjoy multiple purchases from them over the course
of the year.
ORDER FULFILLMENT You need to think about how
you’ll fulfill customer’s orders. To begin with, you’re likely
to fulfill from store stock. But as your web business
scales, you may need to think about having stock in a
warehouse. You can do this with a third party logistics
provider.
CUSTOMER SERVICE AND CUSTOMER
EXPERIENCE Some web customers will want to call
you before and after making a purchase. So you need to
be prepared for the potential of getting a lot more calls
into your business that will take time to deal with. You
can outsource this to a call centre, but this is not a
profitable route to go down in the early stages.
CUSTOMER FIRST: The most important thing to think
about is the customer. What can you do to optimize
everything you do to meet customer needs? A key
element is to ensure that the mobile experience is
customer centric.
Finally, you need to think about how you’re going to
resource all of the above. You might want to consider
outsourcing elements where you lack the appropriate
skills in your business such as acquisition and retention
marketing.

14. SELLING
TO THE WORLD
The internet has not only revolutionised all our lives,
but for small, independent retail businesses, it offers the
opportunity to sell to customers, literally, around
the world. Peter Fitzgerald, Country Sales Director
for Google sets out some of the key building blocks for
retailers to make this happen.
The internet has rewritten the rules of international
business, making it quicker, simpler and more
economical than ever to test new markets. By
2020 the eCommerce export market for the UK’s
retail, travel, content and leisure sectors is set to
be worth £45bn*. Businesses ranging from
bedroom startups to traditional companies to
established internet players can capitalise on this
burgeoning ecommerce opportunity by tackling
the common challenges, using the right online
tools and applying smart digital marketing
techniques.
ADOPT DIGITAL-FIRST MODEL To begin,
adapt your business to flourish in an international
context. Even if you use a multi-channel retail
strategy for your operations in the UK, for
example, adopt a digital-first model for new
markets. With a light ecommerce presence instead
of a more intensive physical one, ecommerce
players can internationalise much more quickly.
Internally, consider setting up an agile team
dedicated to international exports. If it can operate
quickly and autonomously as a separate entity,
more appropriate decisions can be made for new
markets so projects can evolve faster and more
fluidly.
TAILOR YOUR OFFER TO LOCAL
CONSUMERS From here, you’ll need to research
your target markets. Analyse available data to
prioritise the countries where your products or
services will appeal most. Several online tools are
available for exploring potential markets. For
example, the Google Global Market Finder uses
worldwide internet search data to show country
keyword searches, estimates for bids and
competition for each keyword by market and
language.
Once you’ve identified markets, drill down to
discover your target customers’ expectations and
ways to exceed them. Make sure you understand
how consumers use the internet in their path to
purchase. Research data from free export tools will
allow you to better understand different target
markets.
When it comes to customers abroad, don’t rely on
hunches. Instead, employ data analytics tools and
analyst research to localise your offer according to
market suitability and performance. This will enable
you to not only alter to your site, product,
marketing and pricing appropriately, but also to
keep your finger on the pulse of market changes.
Localising your website for different languages and
currencies was once seen as a hurdle, but a range
of tools now makes this far easier. For example,
the UK’s largest independent online beauty retailer
Beautybay.com used Google’s free translator tool
to translate its website into 80 languages for
overseas consumers.
USE MARKETPLACES AND MOVE FAST
The web empowers brands to sell direct, but
many businesses are reaping benefits of using
existing marketplaces such as Amazon, eBay or
Alibaba. Services such as these provide access to
localised marketing, supply chain and payment
options that can significantly improve the uptake of
14

15. “IN eCOMMERCE
THE COST OF ENTRY
IS MARGINAL
COMPARED TO
TRADITIONAL
BRICKS-AND-MORTAR
BUSINESSES”
your products. And because they hold information
about consumer demand and supply,
marketplaces can furnish valuable advice on gaps
in the market.
As you seek to expand internationally,
marketplaces can provide a cost-effective first
step into a market, providing the opportunity to
test and learn with limited investment. If or when
you later develop a website, your marketplace
presence will have established valuable exposure
among an extensive customer base.
In this fluid and lucrative landscape, it’s essential
that whatever you do, you act fast. First-mover
advantage matters to business success, so don’t
be afraid to test your offering in a number of
different markets quickly. In ecommerce the cost
of entry is marginal compared to traditional
bricks-and-mortar businesses.
Finally, use different digital marketing channels to
target your audience. Don’t assume that if you
build it people will come. Digital marketing built
across search, display and video – optimised
across desktop and mobile – is vital for scaling,
testing and expanding globally.
*OCC Research “International ecommerce
The Future is Now”, 2014
Peter Fitzgerald,
Country Sales Director for Google
15

16. Ask any entrepreneur to explain where the
inspiration for their business came from, and they
may well describe a light-bulb moment stemming
from an observation made as a customer. As
consumers, we know what’s on offer in the
market, and once in a while we notice something
that could be done better, faster, easier, or offered
in another format or at a different price-point.
It is certainly true that a start-up business can sink
or swim on the strength of that initial idea.
Knowing how your business will stand out in
a crowded retail market, and why customers
will choose you over the competition, is
crucial to assess the viability of your potential
business. It is certainly amongst the first
questions that the business banking team at TSB
will ask on talking to an aspiring entrepreneur. The
USP - unique selling point - you’re seeking need
not revolutionise the market as sometimes a
familiar service in a new location or better
service, may give you the all the
differentiation you need.
Having developed your idea and weighed up the
likely competition, you might think that you are
ready to quit the day job and commit to the
venture. It’s easy to get caught up in the
excitement but you also need to think about the
practical side of running a new business. In this
preparatory stage, it is crucial you understand
what the business’s costs will be. Just as
important is the timing of payments. Cash-flow
insolvency, running out of money, is a frequent
killer of new retail businesses, so cash is key.
Those starting their own business all-too
often underestimate their outgoings and can
be too optimistic in assessing likely sales in the
business’s infancy. Be realistic about the income
and expenditure in the early life of your business.
If you have previously worked for a large
established business, make sure you have realistic
expectations of what a much smaller business can
deliver. The terms it can negotiate with suppliers,
for example, will not be the same as those of a
larger business. Sales do not immediately translate
to cash; suppliers may not be as generous with
credit and will quite possibly demand prompt or
advance payment. You should also ensure your
business can continue trading for a period of
time in the event that income streams,
however cautious your forecasts, do not
materialise on cue. Be prepared in case this
situation arises as if it does, you’ll need to be
able to react quickly.
BANKING
ON SUCCESS
A retailers’ relationship with their bank is without doubt one
of the most important they have as a business. It is true
whatever the size of the business. When first starting-up, the
bank you choose to work with will need to be convinced of
the business plan but can then provide invaluable support as
Amanda Bell, Head of Business Banking at TSB explains.
16

17. 17
TOP TIPS FOR STARTING
YOUR NEW BUSINESS:
• Think about what will make
your business stand out from
the crowd.
• Understand your costs and
cash flow – both incoming
and outgoing.
• When choosing a bank,
think about the services and
support you’ll need both now
and in the long term.
.
The first interaction the business will have with a
bank is likely to be when opening a business bank
account. There are a number of questions that a
new business should ask before choosing a bank,
and the importance of each will depend on the
nature of venture. An introductory offer or period of
free banking may be persuasive for a business
anticipating a period of time with minimal cash
coming in. The ability to bank online, to make cash
deposits in branch, to provide card payment
services and to access overdraft facilities are other
services you will want to ask a potential bank about.
Another question you should be thinking about
when choosing a bank is how soon you will be
able to access finance or growth capital. Once
the crucial first year to 18 months of trading is
behind you, you may require new funds to help you
grow. More often than not a young business will
seek this funding from the bank with which it
already has its business bank account, and so it is
sensible to think about your future credit needs
upfront. However, there are other alternatives out
there such as crowd funding.
You may have had outside help in interrogating the
business plan at an earlier stage but for many
ventures, it is only when seeking new capital for
growth that a detailed look at the assumptions,
intentions and expectations for the business will be
tested and evaluated. It is generally during this
phase that a start-up business will grow its
relationship with its bank. The lender’s business
banking team will be useful here, as it will have
previous lending experience with other businesses
operating in the same space and will have seen
what works in a particular location and market.
Your business plan is a living document, and
should never stay still. It is advisable to review the
plan every six months, and challenge the
assumptions built into it using the track-record
gained since the last review as well as considering
the ever-changing consumer trends. As your
business grows, the challenges it faces will change.
Frequently revisiting your plan to anticipate the early
tests it will face will give your business its best
chance of succeeding.
Starting your own business is hugely exciting and
with the right preparation, extremely rewarding. A
little time spent on ensuring all the i’s are dotted and
the t’s are crossed at the outset will pay dividends
as your business grows and flourishes.
“REGULARLY
REVIEW YOUR
BUSINESS PLAN
AS NOT ONLY WILL
THIS HELP YOU
STAY ON TRACK,
IT’S ALSO A USEFUL
FOUNDATION WHEN
THINKING ABOUT
DEVELOPING
YOUR BUSINESS”

18. 18
HOW PR AND
SOCIAL MEDIA
CAN WORK
FOR YOU
For any new business, even before the digital age,
spreading the word is absolutely crucial. Start-up retailers
are unlikely to be blessed with large marketing budgets,
but PR and social media can provide powerful tools.
We asked one of the UK’s leading PR experts,
Kevin Read, Executive Chairman of Bell Pottinger
(Corporate, brand, digital design) for his top tips.
LET’S GET STARTED
Taking the plunge and starting a new business is
never easy. Securing the finance, finding the
premises, negotiating the lease and refining the
product all loom large. So much so that sometimes
the important tasks of getting noticed, encouraging
initial trial and being recommended fall into a
secondary ‘must get around to’ list.
Given every new business has a unique template
the ‘must get around to’ lists are always different.
Different pressure points mean there is no single
answer to how to ensure, you, your business and
your products and services become better known,
trialled and trusted.
But, there are a number of core PR and social
media approaches that can be adopted on a
modest basis and pursued with enthusiasm and
focus. You don’t need to be an award winning writer
or an expert social media coder to get started.
FIRST STEPS
Before devising your plan of action you must be
very clear about your market. You need to
understand the profiles of the customers you want
to appeal to, and ideally the media they consume
and the social media they use. This approach
means you communicate in the right language and
avoid generic messages that fail to attract interest
from those you want to appeal to.
When starting a business it can be easy to under-
estimate all the people you know and how via
them you can reach out to wider network of
prospects. Social network theory tells us that
some people are more important than others – the
so called influencers. Often it is the people with
whom we have weak connections that we are
most likely to do business with. This means it is
vital to explore social routes to reach out to our
networks, and communicating via LinkedIn,
Facebook and Twitter can become very important.
WEB PRESENCE
Many start-up advisors would today recommend
the need for a web site. They would be right but
the key point is that it doesn’t need to be all
singing all dancing from day one. For many small
businesses – a small site – built using a simple
platform with easy to edit pages will suffice.
Naturally, careful attention needs to be paid to the
look and feel. External design input can be very
helpful. This is an area where most SMEs will need
expert advice.
Kevin Read,
Executive Chairman
of Bell Pottinger

19. YOUR STORY
Talking to the media, bloggers or social media
contacts about your new business will be vital. But
before you pick–up the phone, post an article or
send a tweet you need to think very carefully about
your story.
The essence of your first story will focus on why
you have started your business. There are many
approaches – but one of the most straightforward
involves answering three central questions.
What problem does your business solve
What is your unique solution
What benefits will you bring to your customers
Alongside your answers you will need to decide
who the face for the business is. You might
consider working with a specialist to finalise your
story and to package it for the media and the
social media world.
TRIAL
Kick-starting a business will always involve trial.
You need to find ways for influencers, critics and
followers of fashion to try your products. The
digital world is perfectly suited to devising ways to
make unique start-up offers.
Picking-out key individuals, including bloggers, for
either free or discounted trails will be important.
Sending them personalised messages via an array
of social channels should be high on your ‘let’s try’
list. Securing local or trade media coverage can
also provide a perfect platform for encouraging
people to discover more about your business,
possibly through your website where you might
host a time limited offer.
MONITOR AND ADAPT
Whatever programme you put together it is
important to watch carefully reactions. If the media
take your story in a certain direction seek to build
on it. If one product line out performs another be
prepared to adapt. Analyse your web and social
media statistics regularly.
LOOK FOR PATTERNS.
Use the data to help plan future products or
services. If all goes well enter an award or two.
KEEP-GOING
Very few brands are overnight successes.
Carefully planned communications – in classic or
digital form - will be a vital ingredient for your
business to get noticed and be trusted.
Along the way you will face criticism. But my
advice is listen, learn, adapt and be persistent.
HOW TO TELL YOUR
BUSINESS STORY
• Work out what challenge your
business addresses
• Be clear about the solution your
product or service provides
(the point of difference)
• Highlight the benefits that flow
from your offer
• Identify a face for the business,
product or service
• Devise the headline for your
businesses launch
• Prepare content for distribution
in print and digital forms
• Consider working with a
specialist to get your story out
THE GOLDEN RULES:
• Tailor your plan to your market
• Leverage your networks
• Create a modest web presence
• Devise stories for your business
• Approach local and trade media
• Engineer ways to
encourage trial
• Monitor how it is going
• Keep going
19

20. ON SETTING UP SHOP
INDEPENDENTLY
John Ryan draws on his
years of experience and
understanding of retail to
set out what he believes
to be the building blocks
for establishing a
successful store.
Opening a shop is easy. You know your
customers, you know what they want and you’re
the person to bring the two parts of this equation
together. All of this is probably the case for the
great majority of wannabe independent retailers,
so why do things go awry?
There are any number of reasons, but from the
outset the single most important element is
location. Common sense perhaps, but it is
surprising how frequently independent retailers
overlook the basics. A familiar failing when looking
at where to rent a unit is making assumptions
about the local demographic. Putting cans of car
engine oil on the shelves of a store in an area with
very low per capita car ownership, a documented
retail case, is unlikely to reap ready rewards.
Equally, when it comes to fashion, towns and
districts that have a more mature population are
20

21. 21
THE ESSENTIALS:
LOCATION – cost v footfall
LOCATION – are the ‘right’
shoppers in the area?
LOCATION – can you
achieve standout, or will
you be one of many?
SHOP SIZE – can you afford
to have a meaningful offer
in your chosen unit?
FIT-OUT – a good idea will
always trump expensive
shop equipment. Think of
an in-store theme and run
with it.
NAME YOUR SHOP - this
is your brand. Your own
name may not be enough...
not going to favour teenwear, for
example. And don’t forget to check out
the local competition. If there are three other
shops like the one you are proposing, think again.
And research about an area can be as simple as
having a coffee at different times of day in a local
café a couple of times a week for several weeks.
Do this and the chances are good that you’ll
understand the shoppers in an area and whether
they’ll want what you intend to offer.
There is also the tension between rental cost and
footfall to be considered. It’s an inconvenient
truth that shops with the highest number of
people passing in front of them will be the
most costly from which to operate. Yet
sometimes, and particularly if a retailer operates at
the lower end of the price scale, it may be worth
paying more in order to enjoy the shopper volume
that will be required for the business to flourish.
The ‘cost of doing (retail) business’ is a frequently
cited factor in insolvency cases. Time and again,
rents and business rates are given as the reasons
for retailers going under, but sometimes the right
stock is the fundamental that is missing. If
sufficient numbers of the right kind of shoppers are
on hand, it’s more likely that a merchandise range
hasn’t been well thought through.
The other element that has to be given very close
attention is the size of unit. A large shop needs a
certain minimum stock level if it is not to feel like a
ballroom. Space in a store generally carries
connotations of luxury, but too much space
and it can feel as if a shop is under-stocked.
Supposing, however, that all of the location boxes
are ticked and that the stock can be afforded, what
else is vital? The answer is ‘fit-out’.
Just buying a few fixtures and some second-hand
mannequins may seem like the right thing, but
unless all of the parts equate to a themed whole,
then this is a dog that won’t bark. And sometimes
rough and ready, when set against carefully crafted
stock can make for an interesting juxtaposition.
There’s more to store design and layout than just
ensuring everything has a place – shoppers need to
feel a sense of difference and that they are welcome
– and don’t forget that lighting can be the difference
between very good and less so.
Finally, time spent thinking about what your new
venture might be called is essential. The name
above a shop door is part of your brand and if this
isn’t instantly recognisable, retail oblivion may await.
John Ryan,
Stores Editor, Retail Week

22. 22
CASE STUDY
YOUNG IDEAS
Anne Wright was a latecomer to retailing having spent
nearly 25 years in the food industry. Fashion was always
one of her passions though and when the opportunity
came along to buy an existing business in her home town,
she decided to take the plunge. It proved to be tough but
the business came through and is now winning awards for
top independent premium and womenswear retailer.
Here Anne talks about the lessons others can
learn as they set up a retail business.
“Young Ideas was a long-established womenswear
shop which I had known for a long time. The
owner had been running it since the late 60’s so it
wasn’t as if I was starting up a business from
scratch. It had a small but loyal customer base
and great staff. But it had run out of steam and it
wasn’t winning new, younger customers to replace
the older ones. For me though, it definitely felt like
starting a completely new business because I had
come from the food industry which although it
meant I was dealing with retailers all the time and
understood the importance of new product, it is
very different from running a small business.
“I THINK ABOUT THE DIFFERENT
GROUPS OF CUSTOMERS WE HAVE
AND TRY TO CATEGORISE THEM
WHICH MAKES ME FOCUS MY BUYING”
I learnt very quickly that you are at the sharp end
because it’s your own money. You have to make
all the decisions that matter.
I bought Young Ideas in 2008. Unfortunately, the
recession began at the end of that year! Like all
retailers at that time, business just melted away.
Customers couldn’t or wouldn’t spend. As I look
back I do think that it forced us to look even
harder at the business and to understand it better.
It meant we had to work very, very hard but the
business today is very different and much stronger.
The key lesson is that you have to completely
immerse yourself in the business to be able to
understand it. This is absolutely essential for a
fashion business such as this which depends on
forward ordering. I needed to be involved in
everything for at least 18 months so that I could
understand what customers wanted, how they
were buying and who they were. It is absolutely
essential to know your customers if you are going
to survive as an independent retailer.
The recession also brought with it opportunities. In
2011, we opened in Derby city centre in a new

23. ANNE’S
KEY LESSONS:
KNOW YOUR
CUSTOMERS.
Capture data on your
customers all the time. When
I bought the business, we
had around 500 names of
customers but the list hadn’t
been refreshed for some time.
Everyone at Young Ideas
knows that they have to add
new customers to our mailing
lists. We now have over 7,000
names and many of them are
regular customers.
IMMERSE YOURSELF IN
THE BUSINESS.
If you are responsible for the
buying, then this is even more
essential. It is the only way
you get to understand who
you are buying for.
YOU HAVE TO TAKE
ONLINE SERIOUSLY.
Your customers may not
always buy from your site, but
they will go to it for information
and to see what products are
new in store.
BUY FOR YOUR
CUSTOMERS AND NOT
YOURSELF.
I think about the different
groups of customers we have
and try to categorise them
which makes me focus my
buying.
INVEST IN A GOOD RETAIL
MANAGEMENT SYSTEM.
It is essential to know what
you have in stock and what
you have sold. Cash flow and
understanding cash flow is
probably the biggest single
lesson that every small retailer
has to learn.
CREATE EXCITEMENT
We have always run events to
get closer to our customers.
Running events such as
fashion shows is a big
investment but was a powerful
way of getting customers into
the shop.
store. It was a good location, with a
low overhead and we were beginning
to feel confident about the brand
portfolio. This was definitely when I felt I
was starting up a business because this
was a new store for Young Ideas in a different
town. Our next big move was forced on us
when we tried and failed buy the freehold for the
original shop in Ashbourne. We knew the lease
was near the end of its life when we bought the
business in 2008. When the landlord wouldn’t
negotiate we then started looking at other options.
The big leap of faith was when my husband and I
decided that the empty but iconic coaching inn at
the heart of Ashbourne offered a great opportunity
to refurbish and redevelop.
Young Ideas relocated in 2013 to a bigger shop
and we have been redeveloping the site in different
phases. We added menswear to our portfolio and
we now have smaller units in the courtyard and we
will be adding a restaurant in time. The business is
now doing very well, has tripled since 2008 and it
has been great to win Drapers and Pure awards
as recognition for all the hard work by everyone in
the business.”
23

24. Aria Crafts was founded in 1989
with the intention to supply
traditional toys and local
hand-made crafts from Wales.
The company’s customers soon
indicated that they would like other
unique and unusual products and
as a result the range was expanded
to include crafts from all over the
world. Concentrating on providing
ethically-sourced products that
range from Bali including hand
crafted soaps to candles,
aromatherapy oils and traditional
children’s toys, the company says
that due to growing demand it
decided to provide a website where
these products can be ordered.
And while Aria Crafts may have
started small, the company’s aim is
to become a major supplier of ethical
and unusual gifts at reasonable
prices to suit everyone’s pocket
and to deliver with the
utmost expediency.
The company then chose to take a
physical presence in order to put its
product ranges directly in front of
its audience and this has grown,
through market stalls on the south
coast of England.
“Aria Crafts was formed in June
2014 when we spotted a gap in the
product range available at
Wimborne Indoor Market, namely
hand-crafted soaps, candles and
aromatherapy,” says Aria Crafts
managing director Chris Kettle.
“We initially started with one
table and we are now trading
on ten stalls, all contained under
one canopy.”
The company also trades on the
internet via its website
www.ariacrafts.com
The company is now about
top open its second outlet at
The Emporium in Christchurch
specialising in Asian crafts,
incense and aromatherapy.
CASE STUDY
ARIA CRAFTS
Aria Crafts expanded from a local
hand crafts and toys supplier to
focus on household products
from ethically-sourced Balinese
suppliers. This product category
growth was driven by demand
and the company now services
its customers from market
stalls, via the internet and,
unexpectedly, has developed a
niche market in the USA.
CHRIS’S
KEY LESSONS:
FINDING SUPPLIERS
As a ‘market trader’ one of our
biggest problems was finding
suppliers who were happy to
supply us since we were not
a traditional bricks and mortar
retailer. With perseverance
we did eventually manage
to source some of the best
suppliers by providing pictures
of our stands and showing
our marketing skills for their
products.
PRODUCT CHOICE
One of the realities most
retailers come to face at some
point is the fact that some
products that you personally
like may not be what your
customer wants (who is
always right!)
MOVING STOCK ON
When we find a certain line
does not sell, we get rid of
it. Full shelves of non-selling
product is futile, selling space
is valuable. Once you find your
product mix always make sure
you have enough stock (not
excessive) to cover demand.
FINANCING THE BUSINESS
Finally do not overextend
yourself financially. There are
always hidden costs. Start
small, reinvest, grow the
business and profit will look
after itself.
24
“PRODUCTS
THAT YOU
LIKE MAY NOT
BE WHAT
YOUR
CUSTOMER
WANTS”

25. CASE STUDY
AUBETERRE BLUE
The fact that Aubeterre Blue is
named after the location where
the founding partners got married
stresses the personal nature of
start-up companies. But as Piers
Johnson explains, the ambitions go
well beyond British borders.
PIERS’S
KEY LESSONS:
PLAN AND ANALYSE
Plan and analyse everything
before you even start. Then
create a clear project plan with
roles and responsibilities.
WORK WITH PARTNERS
Wherever possible work with
partners and experts, calling in
favours and advice, as going
it alone will be a daunting
experience.
GET EXPERTISE
Also, join the FSB – Their
affiliate programme of partners
ensured we saved a lot of
money on fees and charges
which would have otherwise
put a big dent in our start up
finances.
CASH FLOW IS KING
Managing this is key. We are
lucky to have some really
supportive suppliers with
whom we have a range of
agreements to help us during
our start-up phase.
will need to seek investment. We
have a clear understanding of where
we want to be and the step
changes that will deliver this. We’re
looking at marketing, infrastructure,
product suppliers, international
expansion and production.”
He also stresses the importance of
cash flow in these early days. “We
are always honest and upfront with
new and existing suppliers”
25
Founded early 2014, and named
after the founders’ favourite French
town - where both sets of founding
partners were married - Aubeterre
Blue was created with a vision to
provide everything for successful
home entertaining from a perfectly
laid table, a well-dressed room or a
garden party “We have chosen a
carefully considered range of
products to suit all your entertaining
needs, ensuring you are able to turn
the simplest of occasions into a
memorable magical moment,” says
the company of its offer.
“We are fortunate that our two
founders have solid experience in
creating and establishing websites
in a variety of industries,” says
partner Piers Johnson. “So we were
very much aligned with our vision of
‘Bringing the Magic into
Entertaining’ and how to best
achieve it.”
He recalls: “First we set out our
wish list of criteria for what we
wanted from our website. Then
looked for an existing platform
provider that best met this. We
chose Big Commerce. We called in
favours and help from our networks
to create our brand identity and
actually put the website together.
“The big challenges were making
the right choices with third party
providers, such as payment
processing systems, banking
partners and then managing the set
up processes for each. We had to
change our payment processing
partners just before launch due to
misinterpretation of service and
processes. In addition, setting up all
the product lines in the back end
was another mammoth job to
complete.”
Johnson says “We will look at
organic growth during our start-up
phase but ultimately we know we

26. autumnfair.com