New beginnings… any one for retail?
So, if ‘the light at the end of the tunnel’ is a return to some degree of normality at some stage this year…..what is to become of the opportunities in our town centres? Contrary to popular belief, it may well be a good time to look at setting up a retail business in a town centre, and before you think that I have been at the leftover Christmas sherry, here’s what I’m basing my theory on:
- Local councils will need to relax planning regulations to attract interest and thereafter footfall, to our town centres. This could open the door to ‘pop up’ shops utilising current empty premises, pavement trading as a norm, and a blend of retail, residential and leisure being the ‘map of the future’.
- Landlords will be forced to accept and negotiate more affordable and realistic rentals.Central Government will overhaul the current Business Rates scheme, making retail tenancy more affordable and attractive.
- The pandemic has created a ‘shopping lake’, with an estimated £10bn available to spend by ‘pent up’ households and businesses across the UK.
- On-line shopping will attract a ‘transaction taxation’ which will be passed onto the consumer, most likely through handling/postage charges (which are now largely absorbed) or higher product prices.
Wouldn’t it be nice to see an influx of independent retailers into our town centres……from clothing to confectionary, fishmongers to florists and art galleries to gift shops. So, what is stopping this happening?
Wouldn’t it be nice to see an influx of independent retailers into our town centres……from clothing to confectionary, fishmongers to florists and art galleries to gift shops. So, what is stopping this happening?
Opportunity, ambition, environment, finance…the list might go on. However, the economy needs to ‘build back better’ and given the right opportunity at the right time…. if you are thinking ‘well why not’? and you possess strong self- motivation, the resilience to work long hours, brilliant people skills and excellent customer service, now might be ‘the time’.
If you decide that it is….here are ten things to consider;
1. Know your market. What expectations do you have? What demand is there for your product? What does the competition look like?
2.Do the basics (Plan A). Create a business plan which outlines your ambition for the business – set goals, understand the finances with forecast positions, look at costs, be realistic. Get a book keeper or Accountant to advise you.
3.Location, location, location. Are the premises ‘fit for purpose’? What do they say about you and your business? Will they generate the forecasted footfall?
4.Who pays who and when? Find the right stockists and negotiate the best terms for credit facilities. You are a ‘start up’….cashflow will take time to build.
5.Recruit the right staff. They ARE your business….recruit on personality and potential….because you can train ‘product knowledge’.
6.Marketing and Promotion. Where, what and how often will you be advertising? What social media networks will ‘work’ for your business? What about a ‘launch party’?
7.Build networks. Make it an objective to get to know the key influencers in town. Attend a networking event and practise your ‘twenty three seconds pitch’ to introduce you and your business.
8.Online. Everyone seems to buy something online these days….. make your business ‘online’ friendly and offer services and products through an easy to navigate website.
9.Support network. I would create a small but important network of trusted friends and advisors who you can bounce ideas off of. This network may include the bank, the book keeper a close friend and your family.
10.Plan B. Many businesses don’t have a Plan A (see 2 above), so get one step ahead and create a Plan B. This will include, ideas on repurposing your business e.g. if footfall or sales don’t match forecast. Be prepared to re-forecast, and don’t shy away from making bold decisions. Know your limits.
If you decide to take the ‘leap of faith’ – good luck and if you need any help and support with Nos 1-10 above, you know where to find me. www.number4consulting.co.uk