(image via Morguefile)
In part 3 of our post, we talk about the 3rd Step in Building a Profitable and Successful Retail Business. If you missed out Step 2, click here and Step 1 is here. The 3rd Step is all about setting aside the right Budget to ensure that your retail vision is fully executed.
The 3 most important things to look into here are Renovation Costs, Equipment & Rental Costs and Cash Flow. When looking into Renovation Costs, it is important to ensure that you do not overspend in unnecessary places. To do this; you have to have the right contractor working with you, but more on that later. Thus, divide the renovation budget between things which are nice to have and need to have and focus on the needs first. Looking at Equipment and Rental costs, it is important to understand what equipment could be brand new and what could equipment could be sourced second hand as this would ease a lot on your wallet because you would have to ensure that you have enough budget set aside for your Rental Costs and other things.
With Rental Costs, it is important to understand what this cost entails. In you were going into a mall in Malaysia, Rental Costs would entail rent of the place, security deposit, renovation deposits, utility deposits and others. This could easily set you back 4 – 6 months worth of rental even before you begin. Last but not least, your budget to execute your retail vision would also need to take into account Cash Flow and it is usually good to have anywhere from 6 months to 1 year’s worth of operating expenditure. This would mean wages and other costs of running the retail business. So there you have the 3rd Steps in Building a Profitable and Successful Retail Business. In my next post I will share Step 4 of the 5 Steps which is about Building the Right Team to execute your retail vision.
At Visata Creative, we work together with our clients to Design Profitable Spaces. We work strategically as partners to our clients to ensure that they are equipped with the with the necessary insights and guidance for their businesses based on our years of experience in the retail industry through our interior design, graphic design & strategic marketing services.
To us, bigger space is not always better, what matters most in retail is the profitability of the space. We believe in winning the award that really matters in our industry – Helping our clients achieve the highest profitability possible within their retail business.
View our case studies to see how we have helped our clients achieve their goals and helped improve their businesses.
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