If you think it would be great to have your own business, you’re right!
I saw a bumper sticker once that said:
I LOVE MY JOB
I LOVE MY BOSS
I’M SELF EMPLOYED!
Having had my own small business, I agree wholeheartedly! I think the idea behind the bumper sticker is probably that people typically go into business in something they are passionate about. That makes it less like a regular job – which is a good thing since it can be a lot of work and the buck always stops with YOU!
Have you ever wondered what it’s really like to be in business and whether or not you would like it? Do you think you want to be self-employed? I have heard it said that small business is the backbone of the country and it’s what keeps the economy going. Do you want to be part of making that happen?
This particular story may seem out of place on a craftsman website but here’s the reason that I included it; Even though this is about a lighting business that my father owned, it can give a glimpse of the retail side if you are interested at all, in owning something like a hardware store. Owning a hardware or home improvement store would definitely cater to not only homeowners, but to anyone in the trades as well. The story about my dad’s business would in many ways, reflect any retail establishment. Retail is retail, the main difference is the product. You may not be passionate about lighting, but if you don’t like the sound of the rest of it, simply changing the product may not be enough to make it work for you.
A quick look inside a retail business
Before I was born my dad worked as an electrician, One day he came home and said “I’m going into business”, that’s how my mother put it. When he did, he stayed in his field of expertise. He opened a wholesale electrical supply warehouse with a partner to service electrical contractors. Long story short – he was successful with that business and several years later decided to go into retail. He left the contractor supply and opened a lighting business; the kind that sells table lamps, chandeliers etc. He owned that business until he retired. I remember him working steady hours at the store, where he had a core of people to help with the business; a book keeper, a secretary, some sales people, and a service tech. The best part was the Ice cream shop right across the street!
As I look back, I remember dad talking about things like the difference between a calendar year and a fiscal year, having to pay quarterly taxes, resale licenses, sales tax, etc. He also had to know how to work every part and position of the business in case someone called in sick. I remember watching the staff take inventory, there was a rule of some kind that inventory equaled income even though you hadn’t sold it yet. Go figure!
There was the task of hiring competent people and the more difficult task of firing others. I got to see the difficulties of personality conflicts, employees that didn’t show up for work or showed up late, as well as the importance of knowing the latest trends so that he could offer the right products to his customers. There were orders to fill and deliver on time and the showroom had to be kept clean and organized. The gardener had to be scheduled and paid, the warehouse stocked and organized, the tax accountant kept up to speed, and that was all just part of a typical day. It seemed to be so easy from a kid’s perspective; Dad just seemed to have a good mind for it. Take all of that and double it, that’s right – he opened a second store in a different town about a half an hour away. Oh, I almost forgot – he and his employees did it all without computers or cell phones! Try this on for size – an old fashioned rotary dial phone, pens and paper. I still remember when he brought his first calculator home, a really expensive one at the time. You can now buy the same thing for about $2.00.
In addition to what we’ve just covered, you may find that you need a storefront. This can add significant cost. Do you want to buy a business that is already there or do you want to start from scratch? Then you will need to account for building insurance, liability insurance, meeting fire code, and possibly meeting regulations for the American Disability Act or “ADA”. You may want to provide health coverage for your employees, retirement plans, etc. In most retail stores there is the wholesale price which is what you would buy the product for and the marked up “retail price” which is the amount your customer will pay. That can be a challenging part of retail since there can be so much competition out there. If you are going to offer something that a lot of other people offer – what will draw customers to your business instead of theirs? How about top notch service and a great attitude? How about knowing more about your products than your competitors know?
There will be marketing of some kind. Advertising on radio, television, newspaper, magazines, online, etc. but always remember, the best advertising is word of mouth, meaning that happy customers spread the word and you can’t put a dollar amount on that!
In this day and age and depending on what your business would sell, you may find the need for security of some kind, probably not a big deal but as you can see, there are a lot of things to consider if you want to go into retail.
With the continued advancement in technology, there is now the opportunity for other types of retail businesses such as internet marketing and sales but even with these, some of the same things mentioned above will still apply if you want to be effective, profitable, and maintain a loyal customer base.
So finally (and if you’re not scared away from retail yet) – if the thought of owning your own business is exciting to you and you think you have the mind and temperament for it, the only question left is – when will you make the leap? Remember:
GO FOR IT – YOU WILL NEVER KNOW UNLESS YOU TRY!
The problem isn’t trying and failing, it is failing to try.