| Retailing is very diverse and sometimes the edges | | | | Consider what you do during the day, you get out of |
| start to blur with other type of business. The word | | | | bed, get dressed, put on your watch, eat, and drive |
| retail comes from the Old French retaille "to cut off". | | | | to work. Retail tracks what people do so you will be |
| So a wholesaler or manufacturer sells bulk lots while | | | | well served to pick something that fulfills a need. |
| the retailer is willing to sell off smaller or individual | | | | Of course within each one of these broad categories |
| pieces. Of course this definition only takes us so far | | | | there are many niches available. Take clothing for |
| because many wholesalers also sell retail and many | | | | example. There are work clothes, casual, children's, |
| retailers also sell wholesale in larger lots. | | | | formal, and sportswear. And there are even |
| Further, the common usage of retail is based more | | | | sub-specialties within the niche such as upscale |
| on whether the business deals directly with the public. | | | | children's clothing, everyday basic wear, or infant |
| Retail banking, retail service stations, and local coffee | | | | clothing. [ |
| shops are all retailers although they do not necessarily | | | | MAKING THE RIGHT DECISION IS CRITICAL |
| sell any goods in the sense of a clothing store. | | | | Finally, there is a very severe over-supply of retail |
| A local physical location is not even necessary for the | | | | outlets now. Strip malls keep getting built, regional |
| definition of retail anymore now that e-tailing and | | | | malls are expanding, and e-tail sellers are popping up |
| Ebay selling can be retail businesses unto themselves. | | | | everywhere. It is a very hard time to become a |
| The best definition of retail might be any business | | | | retailer and succeed. Business failure by small retailers |
| whose product or service is made for, and targeted | | | | is very common. |
| to, the consuming public. | | | | One trend in local shopping districts is the loss of |
| WHAT DO YOU BRING TO THE TABLE? | | | | goods sellers and the emergence of service |
| So you have a skill or cash, (but hopefully both) and | | | | businesses to take their place. I always get a laugh |
| you want to enter retail. This is where it all branches | | | | when local governments create moratoriums on new |
| out. Do you know what you want to do or don't | | | | banks because they want to have more diversity |
| you? If you do it is probably because you have the | | | | (read this as tax revenue) in the downtown shopping |
| skill from working for others. You know exactly the | | | | district. The fact is that people don't really need that |
| kind of business you want to run. Probably just like | | | | many different stores selling things. People do, |
| your bosses business but better. Your first decision is | | | | however, need a place to put their checking |
| whether to start a new operation or try to buy into | | | | accounts. If people did not need more banks then |
| an ongoing concern. | | | | the market would fix any oversupply through |
| If you don't know what kind of retail you want to | | | | mergers or closings. |
| enter, however, it is probably because you have | | | | So in addition to the over supply of retail stores, it is |
| money but are leaving a different industry. You will | | | | fair to say that the wrong types of businesses are |
| probably benefit the most from either looking into | | | | being chosen by startup entrepreneurs. While it may |
| franchising or else looking for a successful model that | | | | easier to look at what you want to open, it is also |
| you want to emulate or improve. | | | | necessary to research what the market actually |
| When you think about it, there are not really that | | | | needs. |
| many types of retail operations. Bulk food, prepared | | | | The decision facing the startup entrepreneur is |
| food, furniture, clothing, jewelry, automotive, | | | | therefore two-fold. First, you must decide on the |
| electronics, financial, personal care services, and | | | | type of retail business you will create. Second, you |
| specialty stores that carry anything from knick | | | | need to decide if your skills and resources are better |
| knacks for the home to a store that only sells | | | | suited for a startup or if you are better served by |
| products from a certain country, there just are not | | | | purchasing an existing business or entering into a |
| that many types of retail establishments to consider. | | | | franchise. |