You're thinking about starting a retail business. That's great! It's a fantastic way to be your own boss and make your own income. But before you take the plunge, there are a few things you should know.
In this post, we'll share 5 mind-blowing facts about owning a retail business. By the time you finish reading, you'll be an expert on the topic!
The Average Lifespan of a Retail Business Is 3-5 Years.
Did you know that the average lifespan of a retail business is only 3-5 years? There are a number of reasons for this, but the main one is that most small businesses don't have access to the capital they need to grow and succeed.
Another issue is that small business owners often have to wear many different hats and don't have the time or resources to manage all of their costs effectively. And finally, many retail businesses fail due to poor marketing and financial management.
Only About 20% of Small Businesses Are Profitable.
You may not realize it, but only about 20% of small businesses are profitable. The truth is, it's often difficult to make a profit when you're selling products or services at a price that's too low for too long.
Many small businesses overlook the importance of effective business planning and are less in tune with how much revenue is generated by sales of products or services. This can lead to a downward spiral and eventual closure.
Retail Businesses Have High Employee Turnover Rates.
It's no secret that running a retail business is hard work. But what you may not know is that employee turnover rates are high, and it's not always because people are unhappy with their jobs. often, it's simply because the hours are long, the pay is relatively low, and the workload can be overwhelming. And that's not to mention the fact that many retail businesses don't offer adequate onboarding or training, which can also lead to employee turnover.
In short, if you're considering opening a retail business, be prepared for a high employee turnover rate. It's just something you'll have to expect. However, if you can find the right employees and provide them with a good working environment, you can offset some of those losses.
Retail Businesses Have to Invest in Marketing.
One of the most important things to remember when owning a retail business is that you'll need to invest in marketing. This means creating a plan and budget for promoting your business to new and existing customers.
There are many different ways to market your business, from online advertising to print flyers and billboards. The most important thing is to find the right marketing mix that works for your business and budget.
Starting a Retail Business Is Not a Quick or Easy Process.
Starting a retail business is not a quick or easy process. Just like anything else in life, it takes dedication, hard work, and a lot of patience. You will eat, sleep, read, breathe, talk, study, compare, worry, and probably be flat broke for some time. This is an ongoing process that you will be in for the long haul. Just when you think you have it all figured out, something new will pop up and you will have to start all over again.
On a more positive note, owning your own business does offer a lot of freedom and flexibility. You get to be your own boss and set your own hours. Sometimes a Tuesday might be your best day of the week; other times it will be a Saturday. In this business, there is often no consistency. So roll with the punches and take each day as it comes. It's all part of the journey!
You're probably well aware of the basics of owning and running a retail business, but there are some facts out there that might surprise you.
For instance, did you know that...
1. A third of all retail businesses fail in the first year?
2. It can cost up to $75,000 to open a brick and mortar store?
3. Online stores are growing at twice the rate of traditional stores?
There are plenty of other mind-blowing facts about owning a retail business, but these are a good starting point. So if you're thinking of starting your own business, do your research and make sure you're aware of all the potential challenges and rewards.