How to set up a store for little money
There are a few paths you can take when starting a new business, especially if you want to open a store. Choosing this venture is very common among micro and small businesses, especially in retail. In our blog we have already covered some topics that can help you, how to open a store as MEI and what documents are necessary to open a store.
We know that in this first phase, you don’t always have the necessary capital to risk setting up your store. In this article we made a collection of tips to help you set up a store while spending little money. Check out:
Define your store’s target audience
Most people, when opening a store, do not define the target audience or decide to serve all audiences. In practice, especially for those with a reduced budget, this strategy does not work.
Imagine the scenario: you open a store and decide to serve all audiences. If your store’s floor space is small, which usually happens when there is little investment, where will you store your inventory or display your wares? Certainly, there will be a lack of space or, mainly, your customer will not find the desired merchandise.
Therefore, it is very important to define the target audience. Knowing who your customer is, you can define your product: fashion, fitness, seniors, young people, children, automotive accessories, plus size, among others. In this way, you dedicate your efforts to what really matters. When your store grows, you can think of the audiences that have affinities with your current audience and thus expand your reach.
- Is the audience young? Use a social network like Instagram to communicate online.
- The elderly public? Use a social network like Facebook or even a radio to communicate in your store.
- Is the public fitness? Partner with gyms to sell your products.
Choose a point with the best cost benefit
If you choose to set up a physical store, use the following questions to decide the best place:
Does the region have a high flow of pedestrians?
Considering that the pedestrian flow is small, are there a good number of parking spaces? If the answer to both questions is no, look for the best place for you to set up your store.
Is your future store in the sun?
If yes, what period? Morning or afternoon? It’s not a problem, but always prioritize the morning sun, as it is usually the weakest sun of the day and the chance of a customer passing in front of your store and not crossing the street because of the sun, is greater.
Will you be fully in your store?
If not, look for a place that is easily accessible and easy to get through. That way, whenever there’s a problem and your team needs your help, you can get to the store faster.
In addition to the questions, there’s the financial side too, choose a store that fits in your pocket, it’s no use paying a very high rent and not having merchandise to replace or having a small store and the merchandise doesn’t fit in your store, always look for the in between, choose the point with the best value for money.
Make a list of what you dream for the store and what you really need
What is important for your store to function? Does your store need an expensive storefront or a huge counter? Maybe so, but on day zero, the day you open your store, do you need to? I don’t think so, these are two examples of dreams for your store.
Now, does your store need display, shelves and a small counter? Absolutely yes, these are three examples of what you really need.
The list is important, for you to decide with time, when each dream will be realized and, mainly, to define the focus of your store at the beginning with little budget. Save everything you can at the start, opt for simple and innovative solutions.
Have a defined financial plan
The basic objective of an entrepreneur is: to make money. It seems obvious, but at the beginning, the most important thing is to stay at zero to zero. For this to happen, be sure to have a financial plan from day one. Define what is the minimum you need to sell in order not to lose money, have a projection of expenses.
Like financial planning Once done, define some strategic milestones: when you reach revenue X for a few months, I’m going to buy a new branch or I’ll increase the staff or build a new facade, this is a way for you to ‘gift’ for the prosperity of your business.
Do a market analysis
Get to know your competitors, what your customers like, what market trend you’ve chosen, how your chains are communicating on social media, what type of clothing and material the clothing has, visit some stores in person, meet your suppliers, what is good for the store next to you may not be good for yours. Anyway, get to know the entire ecosystem, the best thing about this type of analysis is that it is free, it depends only on you.
Is the merchandise you bought simple, should it sell for 10 reais? If so, sell it for 10 reais, it’s no use selling a 10 reais product for R$50, R$60 or R$70, as it is certainly a simpler product and if your customer pays this amount, it will only be once.
Look for a competitive edge, what will your store have different from competitors? A differential service is not worth it, as everyone sells this ‘differential’, unless it is a personalized service. Then yes, it is a differential.
What payment methods will your store accept? Cash, credit card, debit, own credit, check? Access an article here to understand the best payment method for your store.
Keep following our blog for more sales and management tips for your store!
Check more articles in our categories Fashion & Looks & Luxe et 90s Outfits.
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