WAYS TO GROW YOUR BUSINESS
Every business starts with an idea, and that’s where the hard work also begins. Once
you’ve had an idea for a retail business, you need to test it and build on it. Here are
some useful tips to help you get your business idea out of your head and into reality
1.START WITH A BUSINESS PLAN
Every new business idea needs a draft business plan. Once you write down an idea,
it takes on a life of its own. You’ll start to see what might work and what won’t. You’ll
notice opportunities for extra revenue. You’ll find areas where you can use existing
assets – especially knowledge and people. At this stage you don’t need to go into great detail.
You’re not trying to convince
people to invest in your idea – yet. What you need is a framework that explains your
core business idea and helps how you plan to achieve your goals.
When your draft business plan is finished, show it to people you trust and respect.
Remember to take all suggestions with a grain of salt. In particular, don’t be put off
by people who have a negative attitude to life and business. And of course, be wary
about the opinion of your potential competitors.
Treat everybody’s opinion with respect, but remember that they are only opinions.
Ultimately, the person who must make the final decision about your business idea
is you.
2.WORK ON NUMBERS
So you’ve had an idea for a retail business and asked for other people’s opinions.
Let’s say the results were largely positive – with maybe a few valid concerns. It’s likely
that some of the feedback will have helped you improve your idea, making it more
viable. Now you’re ready for the next stage.
Costs and revenue forecasts will have been part of your basic business plan. But now
it’s time to dig a little deeper. Get some decent accounting software and start to play
with the numbers.
There are lots of things to consider here, including:
Is your retail business bricks and mortar, online only, or both?
• How will store location will affect traffic? Better locations cost more but have more
potential customers.
• What are your potential sources of funding?
• How much do you need to pay your staff and how many staff will you need?
• What are your projected sales for the first couple of years, broken down into
quarters?
• Where and how do you want to source your stock, and what it will cost?
• How much do you want to budget for marketing, and in which areas?
These are just a few of the question to ask yourself. Talk to a business advisor about
other topics, such as business rates and taxes. And find out who your competitors are.
Study them carefully. Look at what they do well, and think about where there’s room for
improvement.
Use this knowledge to prepare a finished business plan. Again, ask a financial advisor or
business advisor for help here, because this time you’ll be looking for funding too.
Once that’s done, get out there and talk to an accountant. They’ll help you set up your
company and advise you about the best way to start raising funds for your business.
And take heart – there’s probably never been a better environment for funding a new
retail businesses. If your idea has potential, you stand a good chance of getting the
funds you need.
How retail accounting software can help
Accounting software isn’t just for balancing the books. Today’s accounting software
can be integrated with lots of other programs. These include inventory management,
point of sale (POS) and payroll. That gives you hundreds of potential options to help you
manage your retail business. It’s a great way to get started.
When deciding which accounting software to buy for your new business, here are a few
points to consider:
• Was it designed with retail in mind?
Does the software work well for retailers? Read online forums and specifications
carefully. Talk to other retail entrepreneurs. And always ask questions!
Does it have multiple access levels?
It’s best to have different levels of permissions for owners, managers and other
users. Not everyone on the shop floor needs full access to your accounts. But the
right people with the right information at the right time can make the difference
between a sale and a customer walking away.
• Can it record transactions and manage payroll?
Nearly all accounting software handles transactions. But payroll might only be
available as an upgrade. Check before you buy.
• Can it track inventory?
Some do, others don’t but can be seamlessly linked to add-on tools that can. Do
your research, as inventory management is a must-have for hard-goods retailers.
• Is it online?
If so, it’ll give you access to your accounts from anywhere at any time. It should give
you lower support costs, automatic backup and easy connection to other tools.
• Is it scalable and extensible?
Scalable means it will grow as your company does, letting you add new users when
you need to. Extensible means you can add new features to the software just buy
purchasing new add-on business tools. This means that your accounting system
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