Retailing is a business which is gaining more and more popular for those that wanted to start their own business and gain success on their own ways. One of the reasons why retail businesses are getting more popular is because among of the many lines or types or kinds of businesses today, retail is among of the easiest to maintain. Though this is somewhat true, retail is still a business, and businesses are needed to be planned thoroughly and systematically.
Though retail is a business in which any could start (if they have the capital for it), there are still some that fails in this line of business. 70 to 80% of retail business startups fail in their first year. This is because of lack of planning and lack of business experience. Although retailing is far easier to handle, planning is still a very important element in this business. So here are some tips in planning your retail business for success.
The Type of Business
The first thing that you should note in starting a retail business is the Type of Business it is. Firstly before you think about the designs of your store and your merchandize you’ll be stocking, you should carefully plan about your business’s legal documents such as the type of business it would be.
If you want to be the sole owner of your business, then your best choice would be Sole Proprietorship. A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has total and unlimited personal liability of the debts incurred by the business.
If you want to run your business with your friend or one of your family members, then a business partnership is best for you. A partnership is a form of business in which two or more people operate for the common goal of making profit. Each partner has total and unlimited personal liability of th