Thinking about opening your own retail store? Before you rush into renting a space or buying stock, it’s important to collect your ideas and focus on the right aspects to make smart decisions.
I’ve narrowed this article down specifically to retail businesses because I’ll be sharing the exact steps and lists I made before launching my first shop. Of course, most of these apply to any business, but if you’re wondering how to start a retail shop, this guide is for you.
Let’s dive in.
1. Assess Yourself Before You Begin
Start by understanding your strengths and weaknesses. What are you great at, and what do you still need to learn? Make a list of all the skills needed to run a retail business successfully.
Here’s an example list to get you started:
- Accounting
- Human Resources
- Marketing
- Creative Content Creation
- Product Development
- Management
Mark the skills you already have and highlight those you need to develop or outsource. For instance, I eventually studied human resources and am still learning how to manage my team effectively.
Once your list feels complete, share it with your friends or family — they often see your strengths more clearly than you do.
2. Talk to Other Entrepreneurs
Before you start your retail shop, talk to people who’ve already done it. Ask them about their biggest mistakes, lessons learned, and what they wish they’d done differently. Listening to real experiences can save you from making costly errors.
3. Confirm There’s a Real Business Opportunity
Your product needs to solve a problem or meet a need. Otherwise, even the most beautiful shop won’t succeed.
That’s where a SWOT analysis comes in. Do one before launching — and keep updating it each year.
My SWOT analysis before starting:
Strength: A partnership with a local producer struggling to sell colorful fabrics — I had the skills to create a sellable product line.
Weakness: People in my country weren’t used to wearing colorful clothes. Plus, I had no financial support and needed a year to convince them that colorful could be trendy.
Opportunity: No locally made colorful casual wear existed. My partnership also allowed me to pay less (or nothing) for the first year.
Threats: The idea was easy to copy, and indirect competition already existed.
After one year:
Strength: Won the market, opened three physical stores and an online shop, learned customer preferences, and improved quality.
Weakness: More competition and a limited marketing budget.
Opportunity: I could now invest more in marketing and stand out through better quality and customer service.
Threats: The rise of direct competitors.
4. Research the Market
Without solid market research, you’re guessing. Study your target audience, learn their habits, and understand what influences their purchasing decisions.
Knowing who your customers are — and what they actually want — helps you offer the right product at the right time and price.
5. Get Experience in Retail First
If you’ve never worked in a retail environment, get a job in one before opening your own. It’s the best classroom. You’ll learn things like:
- how often new collections arrive
- when stores run discounts or clearance sales
- customers’ seasonal spending habits
- who the local suppliers are
I worked in retail for over three years. Back then, I was just a student and had no idea that one day I’d be running my own brand.
6. Write Down Every Idea
Don’t underestimate your early ideas — they often become your future income streams. Write everything down. This will help you later when you start working on your official business plan.
7. Build Relationships Early
Relationships are everything in retail. Start networking before you even open your shop. Build trust with your bank (you’ll likely need a loan later), connect with suppliers, and engage with your future customers online.
Good karma and good relationships always come back around.
8. Get Personal and Professional Support
You can’t do everything alone. You’ll need stylists, photographers, models, designers, and printers. When I first started, my friends and cousins helped as my models — and even today, with three stores, I still rely on them.
Read our related article: How to Hire Models for a Photoshoot.
9. Hire Professional Help
A great accountant and a reliable attorney are must-haves for any new retail business. Take your time choosing them — they’ll help you avoid major mistakes and keep your business compliant.
10. Estimate Costs Realistically
Be honest about your budget. Create an accurate cost forecast to avoid unnecessary spending on low-priority items.
For example, I opened my second shop during the pandemic — risky, I know. I didn’t have much money, but I had an amazing location. I started with minimal furniture and upgraded later with retro-style, custom-made wooden pieces once the business stabilized.
Final Thoughts
Starting a retail shop is exciting but also challenging. Planning, research, and self-awareness make all the difference between success and struggle. Remember — start small, learn fast, and build strong connections along the way.
If you’re serious about how to start a retail shop, begin by writing your first list today. Every idea you jot down brings you one step closer to turning your dream into reality.
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