In an age of unique business ideas, something as simple as a fancy store business can click with the right plan and execution. A fancy store is that one popular shop in any town or neighbourhood where women of all ages love to drop by. As the name suggests, it has all the fancy items that a woman needs to dress up and look gorgeous.
Fortunately, the demand for these items never goes away, although the fashion changes from time to time. In the retail market, opening a fancy store has always been a viable option. With good planning and preparation, you too can set up a fancy store business in your selected location.
Let us see what goes into the starting of a fancy store business plan.
1. Market research
The location where you intend to open your fancy store should be ready for it. The demographic of the place should be open to retail shopping. There should be a sufficient population for you to target. The target group should have a demand for the items you wish to trade in. An insight into their tastes and preferences could also be an important part of your initial market research.
You will also have to verify that the place is not teeming with competition. If there are dozens of fancy stores or a bargain supermarket nearby, opening another fancy store in the vicinity may not be a good idea. In such a case, you will have to look for other new business ideas or switch locations.
2. Which products to keep
The fancy store product line is a universe in itself. Jewellery and accessories can come in different sizes, price ranges, and styles. Bohemian or ethnic, junk jewellery or imitation silver? There are different types, and you should be able to cater to every taste while prioritising the ones in popular demand.
For instance, women in the locality may prefer real gold for jewellery but come to you for handbags and fashion accessories. In such a case, you will have to capitalise on your handbag and accessory collection instead. The best business ideas in retail are the ones that address all tastes, so make sure you grow your inventory accordingly.
3. Personnel requirement
Your employees will be the face of your store and have to be hand picked carefully. You will also have to assess your employee requirement. If you need a salesperson, you may consider ones with prior fancy store experience and an inherent taste in popular fashion. If you plan to provide repair and maintenance service, you will have to hire skilled personnel for the same.
4. Where to open the store
Location is of supreme importance in any retail business. You should select a place that comes to the notice of passersby and is easy to reach. A place with adjacent parking facilities can attract more customers. The cost of the premise needs to be balanced so that you don’t end up spending a lot on fixed costs.
5. Interiors and infrastructure
A well-lit and well-decorated store is much more likely to draw a crowd. You can use LED lights and fairy lights to spruce up the store and glass shelves to give a better product view. Small scale business ideas are dependent on customer perception, and nothing can improve perception more than a good-looking store.
You can search online for interesting store design ideas. Many small entrepreneurs have benefited from image-sharing platforms like Pinterest and Instagram. Once your store is ready, and all decked up, you can also share its images to gain online attention.
Along with good interiors, basic infrastructure adds to the popularity of the store. Simple additions like a washroom, trial room, water cooler, charging point, etc., can give a better customer experience and enhance your store’s popularity.
6. Compliances required
To meet the government and local authority compliances, a fancy store needs to get various licenses and registrations. Once you finalise if the store will be a proprietorship, partnership, or company, you will have to fulfil the formalities as required under Income Tax Act, Partnership Act, and Companies Act, as may be applicable.
Apart from these registrations, you will need to file regular returns, for which you may consider hiring a chartered accountant or similar financial consulting service. Registering for GST also has its set of compliance norms that you need to adhere to. Besides, getting a trade license, a shop certificate, and other local approvals are necessary.
7. Operational plan
To make small profitable business ideas work, you have to design a strong operational plan. This will include financial planning and forecasting, setting ordering levels, fixing credit periods with vendors, and so on.
Based on these arrangements, you will be able to decide how the cash flows and how much time is required in an operational cycle from purchase to storage, sales, cash receipt, and finally, vendor payment. Once the internal processes are in place, you are ready to run your fancy store business in a smooth and streamlined manner.
8. Identifying sourcing channels
All small business ideas are dependent on a strong supply channel. The success of your store and its profitability will depend on the optimisation of your vendors. You should identify the best sources for your products. For instance, if you can identify a jewellery manufacturer rather than a wholesaler, your margin would be higher as the purchase price gets reduced.
The vendors must also be reliable both in terms of quality and consistency. A cheap and quality vendor is of little use if it is not able to supply as and when you need it. Look for good vendors near your location, if possible, as it will reduce the chances of logistical delays.
9. How to sell?
Selling is not just about putting the products on display and hiring a salesperson. You must have a supply chain that meets the demand on time. Apart from the walk-in customer, you may have to open an online version of your store. This will cater to the tech-savvy crowd who are happier to shop remotely.
This would include opening a website or enlisting in third-party e-commerce platforms. Besides the physical store and an online presence, you may benefit from services like home delivery and doorstep collection of returns. These types of measures increase your reach and make you more accessible to your customers.
10. Marketing strategy
Apart from a strong sales strategy, you will also benefit from an intelligent marketing strategy. The work done during your market research will come in handy in designing your marketing strategy as well. With your market research, you already have an insight into your target audience, their size, budget, spending behaviour, tastes, and preferences, etc.
You can use this insight to decide on how to market your store aggressively. Being a retail outlet, you will have to mix on-store marketing campaigns with Out of Home (OOH) campaigns and various online channels. In pamphlets, flyers, signboards, standees, and OOH billboards, you have a variety of physical marketing options. If you have a database of your target audience’s contact details, you can try mobile and SMS marketing campaigns as well.
Add to this the trump card in today’s marketing, i.e., social media marketing. Make sure you open social media pages of your fancy store business on popular platforms like Facebook and Instagram. Upload interesting posts and offers on these pages and try to garner maximum engagement from the online audience.
Interact with them and increase the activity in your posts with prompt responses and engaging replies. You can also use analytics to gauge the response to your social media marketing activities. With a little budget, you can even hire a social media marketer who can help you market your store better and help it to reach out to all possible target audiences.
To sum up
With these ideas and tips, you can make sure that your fancy store stands out in the crowd. A good business plan and its successful execution are only starting a long and sometimes trying journey. All small business ideas start from scratch, and it is with perseverance and patience that they grow into large enterprises. As for the management of your ledger and books, OkCredit has got you covered. We hope that with a resolute start to your fancy store, you will maintain and sustain its business and profitability in an ongoing manner.
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Q. How to obtain a trade license for a fancy store business?
Ans. The authority issuing a trade license is different for different parts of the state and even district. In some places there are designated licensing departments or authorities while in other places the local Municipal Corporation issues the trade license. In rural areas, the village panchayat can also issue trade licenses for businesses within its limits.
Q. Why is online accounting and bookkeeping better than traditional methods in the case of a fancy store?
Ans. Online accounting increases the efficiency of bookkeeping practices. These records can be easily and quickly accessed and shared as well. Online platforms like OkCredit also facilitate online invoicing, which can be done much more promptly, giving you more time for operations and sales.
Q. Which legal status is suitable for a fancy store business?
Ans. The choice of legal status would depend on a variety of factors. If you are the only owner, you can start as a sole proprietor. If there is more than one partner, you can either register your fancy store business as a partnership firm or a company. The cost of compliance increases in case of registered partnership and even more in the case of a company. If you want a recognised legal status for your store, a limited liability partnership or a private limited company are the best options to choose from.
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