Here are some tips to make opening your own retail outlet a success

By Rieva Lesonsky

Everyone shops. Everyone. That’s why retailing is one of the fastest-growing segments of the economy, accounts for nearly $4 trillion in annual revenues in the U.S. If you’ve always wanted to open a retail store (instead of selling online) here are some keys to your success.

Location, location, location.
Choosing your location is the most important step in making your dream of owning a retail store come true. What good is it if you have a great staff and awesome merchandise but no customers? Choose a location with high-traffic flow. A new retail store isn’t going to have a following unless it’s a franchise with a well-known name, so you’ll need all the help you can get. Take your time choosing the perfect location; observe the traffic flow over a period of several days before you sign a lease. And don’t choose a location just because it’s close to your home.

Stocking your shelves.
Selecting merchandise for your store can be the most time-consuming and expensive part of opening a business. Before opening your store, visit wholesale marts to get an idea of the merchandise you’d like to carry. Decide what your mark-up will be and what’s appropriate for your area. Choosing the merchandise can be fun, but remember to maintain a general theme and purpose for your products.

Stay current and stay true.
Don’t think you know it all when it comes to trends. Keep up with local as well as national trends. You might see a particular look plastered all over the TV or in fashion magazines, but know your market. Will it sell in your store? Does it fit your theme? And don’t attempt to sell anything that’s way out of your normal buying budget just because it’s trendy. The best thing to do is listen to your customers. Customers will always let you know what they’re looking for, but only if you ask.

Hire Smart.
It’s inevitable—you’re going to have young people work for you. Hire a young person who has a desire to know more about your type of business. A person who’s really interested in cars, but wants to work in your clothing store might not be as suitable as someone who’s attending classes in fashion design. When interviewing a young person, ask them about their interests and hobbies and what they feel they can offer you as an employee.

Loss prevention.
You can always expect theft—count on it and set your prices because of it. The only way to find out how much you’re losing is to do inventory. Use a POS [point-of-service] system that’s r un from your computer and keeps real-time inventory. If you’re selling small items that people can walk off with, keep them in secure cases.

Everything must go!
Customers should be able to easily distinguish sale items from regular merchandise in the store. Placing your sales items towards the back of the store forces customers to walk by the regularly priced merchandise, increasing the probability for sales of regular merchandise. Clearly mark your sales prices and post signs that grab your customers’ attention. Storefront signs will also increase traffic flow and let customers know there’s a reason to stop in your store.

For more information check out Entrepreneur magazine’s business start up guide.