With the valuation of retail market in India estimated to reach a whopping $1,200 billion by 2021, it is the country’s fastest-growing sectors. India has also reached the status of the 5th largest retail space destinations globally.
The country’s financial market is providing a much-needed boost to this sector with the likes of shop loans. These funds are available as unsecured advances with features and benefits that not only support retail store establishment and growth but also make repayment easy.
Today, high-value, collateral-free loans of up to Rs. 30 Lakh are available against minimum eligibility. Businesspersons running retail stores can thus conveniently utilize such a shop loan for the growth and expansion of their retail store. Further, they can inculcate financial habits to manage business growth better.
In case you are a budding entrepreneur seeking to start your retail store, here’s the step-by-step guide you can use to establish it successfully.
Step-wise guide to starting a retail store
1. Have a well-researched and analyzed a business plan
Unlike a production or a manufacturing unit, a retail store is the point of operation as well as revenue generation for the business. It can not only impact how your customers perceive your business but also affects overall productivity.
Hence, you must start with a business plan that covers all the major aspects concerning business development. From outlining business goals to procuring finances like start-up loans, analyzing market dynamics and financial projections, it should cover all.
2. Arrange for procuring funds
Procuring finances is another essential concern you should initially address when starting a retail store. With schemes like Startup India supporting the financing of new businesses, you can easily avail start-up loans to kick-start the store.
However, you must also have a proper funding plan regarding how much to avail, what period to avail a shop loan for, and what uses it will be put to. It will help project a healthy business plan, thus enabling you to procure the funds conveniently.
3. Choose a location
The choice of location is a necessary consideration to make as it has a significant impact on customer footfall your retail store will receive daily.
To choose a suitable location, you can consider the available facilities nearby, its accessibility, expansion opportunity, existing competition, and such other factors. The exposure your retail store receives is also one of the decisive factors in building your business brand.
4. Plan on the necessary infrastructure and facilities to invest in
When setting up the store’s interiors, you must have an infrastructure and acquire the necessary facilities that result in an effective retail store. Plan on infrastructural details like racks and shelves, podiums, counters, inventory storage rooms, etc.
Also, investment in facilities like mirrors, shopping carts, baskets, equipment for crowd control, etc. should be decided upon.
You can further expand your retail store’s facility and infrastructure once the business is established. Lenders like Bajaj Finserv bring business loans that can be easily availed to meet a business’s funding needs like growth and expansion, working capital introduction, etc.
The process of availing the likes of a shop loan is now hassle-free, convenient and easy as the NBFC brings pre-approved loan offers.
5. Recruit a strong team with the right experience
Once done with the above steps and ready to open the retail store, the last step to take is recruiting a good team. Note that this team will be the point of contact between your business and your customers. Thus, it is essential to hire a team that excels in customer service and provides the best experience to customers at your retail store.
With this guide, you can be assured of starting a retail store that is impressive and operates smoothly to cater to its customer segment. Make sure to obtain the necessary licenses for unhindered business operations.
With around 40 million retail outlets presently operating in India, it is one of the fastest-growing retail sectors in the world. Providing the essential impetus to this sector is the financial market with products like shop loans assisting with necessary funding for retail shop growth and expansion.
Setting up a retail store, however, requires extensive planning. From planning on all aspects of business operation and development to procuring necessary finance through business loans, everything should be clearly outlined.
Here’s the guide, you must take a look at to start your retail store business successfully. Start with a well-researched business plan that should cover all aspects of running a business like defining the goals, knowing the dynamics of the existing market and projecting the flow of finances. Follow it with raising necessary funds through lenders. Next, decide on the location based on the available facilities, its accessibility and other factors that contribute to giving necessary exposure to the retail store.