In today’s society, businesses are very competitive, and even the slightest mistakes can lead to fatal consequences. Research shows that half of all retail businesses close shop in less than two years. Could this be because these traders are doing something wrong? Many people often blame the economy and online competition for their failures, but this is not always the case. Many times it is the fault of the manager or retailer. Below are some of the most common mistakes that you should avoid if you want your retail business to thrive:
Choosing the wrong partners
This is the worst mistake that you can make in retail business. The wrong partner will bring you down, one way or the other. They may not be serious about the business, or their goals may be different all together hence the fall. You need to be careful with this to ensure that you all have the same goals and visions. This way, you can work hand in hand to ensure that the business grows.
Location is vital key too
You have heard more than a million times; location is a significant key to your retail business doing well. Target places where your customers can find you easily, a strategic place where you are easily noticeable. Never go to a place just because it is cheap or convenient for you, it might be bad for business. You need to invest in an excellent location; the customers will stream right in.
Doing it all, alone
You may think that the retail business is small and that you can handle all the work. But this is not the case. You cannot be the manager, seller, organizer, advertiser and any other position in the store. You need to hire people for some of these posts. This gives ample time and energy to be able to handle your customers well giving them the required amount of time.
Jack of all trades
It’s good to be a retailer where all your clients can get whatever they need, but this might not work in your favor at the end of the day. Specialize in one kind of merchandise, one that your target customers can afford to purchase. You do not want your clients to walk into your store and not make a single purchase. It would make no point stocking expensive assortments from all over the world only for you not to make a sale in days.
Not paying attention to the basics
Money matters are critical in the retail business. You will have to learn how the money works; the loss, profits, and break-even. Otherwise, you will have to hire someone to do the job for you. You need to strategize on how to have considerable profit margins which will enable you take care of all your expenses and still have money for your own too. There is no shortcut for this, learn the tricks or get someone who knows the tricks.
You need to hire talent and skills alone when recruiting the people who will be handling your customers, your most valued assets. Avoid hiring friends, more so those that are not qualified for the job and those that you will not be able to caution objectively when they fail at their job.
Focusing too much on a product and forgetting about the market
Never stubbornly hang onto a product if you find that it is not selling. Customers want the latest, the trendiest and something that will solve their problem at hand. Always aim to deliver what the market wants. This is the only way that you are going to stay in retail business.
Failure to change as the market changes
This is regarding the selling methods that you use as well as the media. Many people now have an Internet connection and use social media a whole lot. People want something convenient and that suits their needs. They also want something where they can easily get information about online, more so on social media. So how about going online, either to advertise, inform people if your products or even launch an online store altogether.
Not having a customer service
You have to customize your time to match that of the clients and when they will be available. Additionally, you need to have other ways that they can reach you without necessarily coming to the store. For example, you can have a telephone number or email address where they can forward their queries and you give the feedback.