Saving money on different purchases is a plus for most people. As such, starting a discount store can be an attractive prospect, since discounted items are always high in demand, right? Well, just like any other business, there are quite a few things you should to be mindful of before moving forward. If you think starting a discount store might be a good fit for you, here are 5 useful tips to help you get started.
1. Make sure you’re prepared
Before anything else, ask yourself this question: am I ready? Choosing to pursue this business venture comes with many risks and there is no guarantee that you will be successful. You should consider a range of things, such as whether:
- There is a reasonable possibility that the business would succeed
- You have the capacity to start and run the business
- You have the necessary financial means to start and run the business
2. Do your research
In line with the first tip, you need to do your research. This will help inform your decision on whether or not you are prepared to start a discount store, and if so, how to best approach it. Make sure to conduct research on, for example:
- Competition – Think about whether or not there is a need for another discount store at the location you have in mind. If so, consider what sort of products there would be enough demand for, such as clothing, homeware or pet products. Also consider specific locations where you can effectively run the business, such as a shopping centre where it will be fairly busy.
- Pricing of products – Consider the pricing of products at similar discount stores. It would be beneficial to come up with a reasonable estimate on the percentage that customers will save on your products, such as 5 or 10 percent.
- Suppliers – To be able to afford selling products at discount prices, you will need to source your products from manufacturers or wholesalers that can offer you the lowest price possible. Investigate different suppliers and their prices to determine whether it is likely that you will be able to turn a sustainable profit.
3. Come up with a business plan
Great planning can lead to success. You should use the research you have conducted to develop a business plan that will guide your business. The business plan should outline information such as:
- Your business objectives and goals
- Structure
- Sources of funding
- Target market
- Marketing strategy
Make sure to give this process the time it deserves. If you are not confident in developing a business plan yourself, consider seeking assistance from a professional. As your business changes, you should also regularly revisit and review your business plan.
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Get started4. Register your business
You are required to register your business to make it official. This includes registering for:
- A business name
- An Australian Business Number (ABN) which will help the Australian Tax Office (ATO) and customers identify your business
- Tax which will depend on various factors such as your business type
- Any relevant licences or permits
5. Market your business
Finally, it is necessary to effectively market your business. In this day and age, it is important to have a strong online presence. You can achieve this by:
- Setting up and maintaining website – Your website should contain key information about your business such as the products you have on offer including the discounted prices, and your contact details such as your store location and phone number.
- Setting up and remaining active on social media – At the very least, it would be beneficial to have a Facebook and Instagram account. You can post about your discounted products and deals to attract customers, and even pay for advertisements to reach more people.
Aside from this, you can use traditional physical marketing methods such as advertising on newspapers or magazines and distributing brochures.
Conclusion
If you think starting a discount store is right for you, these tips should offer you a strong base to be able to start. You can find more information on starting a business generally here. If you need further assistance, contact a company lawyer today.
