Items To Be Covered• Planning a Store:• Think it Through• Physical Planning• Business Organization• Professional Services• Why Do Retail
Items To Be Covered• Improving My ExistingStore:• Vary your externalappearance• Know your customers• Product of the month• Seasonal specials• Birthday specials• Frequent buyerrewards
Think it Through…• Be SURE you are committed to running aretail store.– It is like a marriage – you are committed to itevery day it is open– Plan to be the primary person in the store forat least the first 6 – 12 months– Do NOT expect to take a salary or owner’sdistribution for 6 – 12 months. If you are ableto take one sooner, that is a bonus.
Physical Planning Items to Consider• Location• Layout• Lease• Product• Appearance and Operation
Location, Location, Location• As in any real-estate based venture, yourlocation is critical. Since Nature’s Sunshine issuch a high quality product, the retail price isnaturally going to be higher than the “bigbox” discount stores.• Try to locate in an area not associated withbargain basement stores. While these dobring a fairly large flow of traffic, they tendnot to bring people looking to purchasepremium products at a premium price.
Layout• Before you begin to look for retail space, youshould determine what kind of marketingactivities you will emphasize. Some needsyou should consider are:• The need for private office space for personalconsultations.• How much administrative office space you willneed for accounting, and filing of importantdocuments?• How much storage space will you need for backstock of inventory, or for quantity orders and forother marketing supplies?
Layout (Continued)• How will you set up your sales area formerchandise display, marketing materialdisplay, and the overall atmosphere youwant to establish?• What is the initial impression you want togive customers upon entering the store?
Lease Term and Cost• You should negotiate for a lease term that willallow you to control the costs for long enoughto be able to establish the business, but no solong that you are unable to consider expandingor moving should you find a need to do so.• Engage the services of a licensed realtor toassist with the lease negotiations
ProductYou should consider which products youplan to carry. The number of productsoffered will affect the amount of shelf spaceyou will need, as well as the size of theinvestment you will need to make to acquirethe inventory.
Appearance and OperationOther items to consider are:– Shelving (what kind and what general décordo you want)– Sales counter (where will you house yoursales terminal, customer bags, other salessupplies)– Computer system (will you use a desktop orlaptop computer)
Appearance and Operation (cont.)• Point of sale and inventory control system(What software system will you use totrack sales etc.)• Decorating items, etc.• Signage – VERY IMPORTANT (What kind ofsigns can you display inside and out. Thismay be influenced by your lease andavailable wall/floor space inside)
Business Organization• Determine the structure under which youwish to operate.• One critical mistake made by many smallbusiness owners is that they fail toconsider what form their organizationshould take before beginning operations.Although you can change structural formsit is much easier to start with the structureyou want to use.
Business Organization (cont.)• Forms include:–Sole proprietorships–Partnerships–Limited Liability Companies–Limited Liability Partnerships–Sub Chapter S Corporations– Subchapter C Corporations
Business Organization (cont.)• Each of these different forms oforganization offer advantages anddisadvantages• Some require the assistance of an attorneyto set up• You should consult with an attorney or CPAto learn how each work, and determinethe organization that will best suit yourbusiness needs.
Professional Services• Another critical mistake many smallbusiness owners make is that they fail tosecure the services of professionals suchas accountants and attorneys.– Don’t believe the myth that you can’t affordto hire professional help.– In most cases, the services of a competentCPA and Attorney will save more than theycost
Professional Services• Trying to go it alone can lead to manyheadaches down the line.– As a practicing CPA, I have seen the havoc thatis reeked on a business when the businessrecords are not maintained on a current basis
Professional Services (cont.)• Stay Current– The best strategy is to keep your bookscurrent daily. Trying to assemble accountingrecords at the end of the year is a recipe fordisaster. The result is usually:• Missed deductions• Errant income reporting• The unavailability of data required by IRS tofile a complete and accurate tax return.
So Why Should You Consider Retail?• Potential for good returns• Great way to meet clients you would neverfind otherwise• Great way to grow your success linequickly• Each day is a new adventure
Improving My Existing Store• Vary your external appearance. As muchas possible, change out your window signsperiodically. This will tend to catch the eyeof frequent visitors to your area more thanjust keeping the same look all the time.
Improving My Existing Store• Know your customers. If you are notcurrently doing it, try to capture the followinginformation from every customer you sell to– Name and address– Cell phone or daytime phone– E-mail address– Birthday (at least month and day)– How they heard about you
Improving My Existing Store• Product of the Month. Select a product tobe featured each month. Place it near theregister and offer it to every customer. Wealways offer a discount on it when it isfeatured.• Seasonal Specials. As space allows, set upspecial displays of products for themonthly theme. For example, we usuallydo back to school in August.
Improving My Existing Store• Birthday Specials. We collect the birthday(month and day) of our customers. Wesend out a birthday coupon each monthfor all customers whose birthday falls inthat month. With it, they receive a 25%discount on any following visit.
Improving My Existing Store• Frequent Buyer Rewards. Consider usingsome kind of frequent buyer card for retailcustomers. When they reach a stated totalof purchases, they receive a dollar amountoff their next purchase.EXECUTE THE CONTRACT ON OUR WEBSITE:http://www.nspglobal.com/Sponsors Country: Belarus;Sponsors Account Number: 1007815
Thanks for Joining Us!Our next scheduled Retail Webinarwill be on Wednesday 10/19EXECUTE THE CONTRACT ON OUR WEBSITE:http://www.nspglobal.com/Sponsors Country: Belarus;Sponsors Account Number: 1007815