For example, a store selling expensive, handmade men’s shoes would not do well in a mall frequented by mostly lower-income customers.
For example, an underserved demographic in a given market might be plus-size people or Latin Americans. If you notice a lack of stores serving a particular group in the mall, consider building your offerings around that group. [1] X Research source
A franchise may be relatively simpler to open, but will limit your own freedom to make business choices. In addition, you usually have to pay a large, upfront franchise fee and make regular payments to the franchisor.
Your store name should be trademarked. Your business name, on the other hand, is the legal name of your business, used on official documents like taxes and your lease contract. If your business is a sole proprietorship, your name is the business name.
Some places may ask for multiple months of utility and rent payments upfront. Next, work with a floor planner and interior designer to determine the cost of upgrading the interior of your store to meet your needs. Consider other expenses you will have to pay before opening, like any materials you will have to buy and inventory costs. Also, consider technology costs—you’ll have to purchase some method of collecting payments from your customers. Finally, think about monthly expenses you might have, such as paying employees and spending on marketing or public relations. [4] X Research source Understand the difference between a fixed cost and a variable cost. The costs that do not change every month are called fixed costs. For example, the rent, utilities, and payroll. The costs that change every month, such as marketing expenses, are known as variable costs.
For more, see how to fund a business.
You should also try to locate your store near complementary stores. For example, a jewelry store might want to locate next to an upscale department store. That way, the stores can attract customers to the same corner of the mall together and both benefit from the targeted traffic they receive.
Kiosks sit in the middle of mall concourses and usually showcase smaller goods, like phone accessories, jewelry, or watches. Mall carts, also called retail merchandising units (RMUs), are smaller than kiosks and are located in common areas within malls. They allow for displays of smaller items and can be used to provide simple services like engraving or watch repair.
Remember to create a place for your most important or fastest-selling inventory in a dominant position at the front of the store, right in front of the door. [9] X Research source
Even experienced retail employees will need training in your specific products and in how you wish them to interact with customers.
Alternately, you can hold a “soft opening” first, where systems and employees are tested before announcing a grand opening. This guarantees that your store is properly functioning before the grand opening.
