Retailiatory Strike
Make No Mistake
Beginning retailers make a lot of mistakes. Here are five of the
biggest: 1. Not doing a reality check. Do you have the temperament
it takes to succeed in retail? "One of the biggest mistakes
people make is thinking that retailing is going to be one way, and
their experience turns out to be very different," says Daniel
Butler, vice president of retail operations for the National Retail
Federation in Washington, DC. "They're not realistic about
the challenges." Retail is a lifestyle choice. Can you hack
it? Butler suggests working part time in retail for a few months to
find out before you start your business. 2. Failing to research. Surprisingly, many beginning
retailers don't develop a business plan and marketing plan. "When
someone comes to me and says 'This is the research we've
done, this is why we feel this product will sell and why we'll
be successful in this location,' it gives me a greater comfort
level [in talking further]," says Courtney Lackey, a general
manager with Jones Lang LaSalle, a property management leasing
company that manages retail properties. Content Continues Below
3. Creating clutter. In retail, you're branding from
day one. If your product displays have no rhyme or reason,
customers have no reason to stop and shop. "The biggest
mistake a cart or kiosk retailer can make is putting [out] too much
merchandise," Lackey says. "Something that's
well-displayed, colorful and catches your eye attracts
customers." | Read Into It | | If
you're thinking about taking the plunge, start your research
with our Retail
Store business start-up guide. |
4. Competing with big-box retailers. Face it, as an
independent retailer you'll never beat WalMart on price. But a
lot of small retailers fall into the price trap of trying to
compete with the big boys--a big mistake, says Bob Phibbs, a retail
consultant in Long Beach, California. Instead, focus on your edge
as a small retailer: customer service and a unique consumer
experience. 5. Choosing the wrong location. The rental rate may be
great, but if the location doesn't draw
people, you might be in trouble even if your product is good. Where
are shoppers seeking your type of product going? What types of
big-box retailers complement your product and will drive traffic
your way? One no-cost way to find out is by sitting in a mall and
watching the traffic flow. "If you decide you want upscale
people, look at where they're already shopping and how
you'd get that market," Phibbs says. "Know all these
things {before} you start to sign leases." | Check It Out | It's
hard to believe, but many small retailers are still using
calculators and electronic cash registers to ring up sales, only to
transfer all this data manually to a computer at the end of the
day. Why not think about setting up an integrated retail POS
software system before you start your business? You have
lots of options to choose from. Some major players in this
specialized space include Peachtree,
PeopleSoft and Oracle. Here are
just a few products on the market:- BizTracker: This POS software can run by
keyboard or touchscreen and integrate with QuickBooks. In addition
to serving as a computerized cash register, BizTracker can track
commissions on sales, create electronic and print packing slips.
Street price: $995 (one workstation);
$1,280 (three-station network).
- ComCash: This Windows-based, Dell-partnered
program allows you to import all your QuickBooks customers,
inventory and vendors. It also comes pre-installed with POS,
polling, communication and credit card software. You can take the
program for a test drive by downloading a ComCash POS demo at
www.comcashpos.com/download_new.htm.
Street price: $1,099 (single-station
install).
- QuickBooks Point
of Sale Software for Retailers: Designed especially for
single-store retailers, this program integrates with
QuickBooks 2002 financial software, turns your PC into a cash
register and can be customized. Another benefit: You can buy it off
the shelf at Office Depot and Sam's Club. Street price: $1,299 for the software/hardware bundle
(includes a bar code scanner, a receipt printer, a cash drawer and
a credit card swipe); $799 for the software
alone.
- QuickSell
2000: Lets you export data to Windows-based accounting
programs such as Peachtree Accounting, M.Y.O.B. and Quick Books,
and you can run it on a growing network. Here's an added bonus:
Microsoft bought QuickSell in May and is
now integrating its features with other Microsoft POS products to
offer a complete a small-business POS software package.
Street price: starts at
$990.
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Contact Sources
Chris Penttila is Entrepreneur's
Staff Smarts columnist.
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