Starting a Discount Store

With everyone tightening their budget nowadays, people are scraping up the most value they can get for every dollar they have. And that is exactly what discount stores would like to offer. If you are planning to enter in the retail business and you have chosen the discount store concept, here are the steps to do it:

Do a study to determine the best place to open the store – best means there is an existing market for your business, which for a discount store will be fixed income people, the elderly, and students. Or, if you have determined a location, find out if there is a market to target in the place where you intend to open the store.

Prepare a business plan. A business plan is the blueprint of your store. It will contain all the necessary aspects of your business. This document is important especially if you will be looking for investors. It will show not only how the business will be structured but also how it will generate profits in the future. Some of the most important details that you will be deciding when making the business plan are:

• the structure of the business. Will it be a sole proprietorship, a corporation, a LLC?
• the merchandise to sell. Will you offer an assortment of goods from dishware to jewelry or will you specialize?
• the location. It should be a high traffic place frequented by your target market.
• where to get the supplies. The key to being able to offer goods at bargain prices is to find suppliers from which you can get merchandise at very low prices.

Find investors for your store. Good if you have enough personal savings to finance your project. But if not, you will have to find investors or get a loan from the bank.

Do the paperwork. Apply for incorporation or registration of your business depending on how you want it structured in your business plan. Get a tax identification number and comply with all local or state requirements in opening a business. Get necessary insurance for the business and for employees.

Purchase stocks. Typical sources of discount goods are closed outs and overruns.

Market. Marketing may be done as you work to open the store. Before the store opens, you can put signs announcing its opening or you can advertise in the newspaper, radio or TV (depending on your budget).

Open your store. Be sure that everything is ready and order when customers come for the first time in your store. The grand opening day is also a grand marketing day. Devise strategies to attract people to come on that day to the store. Courteous and friendly salespersons should be around to welcome them.