When starting a business, it can be tempting to want to jump straight on the high street. After all, owning a shop is the traditional method of sale and many dream of owning a flagship store.
However, starting with a store straight away can be incredibly costly and even more tiring than working from home. Given the huge presence of ecommerce and the popularity of online sales, starting online is a great way to help you achieve your goals in the long run.
If you’re thinking about starting your own business but you’re unsure where to start, there are a few steps which are sure to help you decide how to start.
Marketplaces for beginners
Online marketplaces which are a larger part of an established brand, such as Amazon, or independent marketplaces like eBay are a great place to start selling your product. They already have a huge customer base so it’s a great place to take advantage of all those page hits.
Amazon reportedly has 85 million unique page views per month, so the chance of just a few of those finding your store is high. Many report up to 50% increased sales by joining Amazon marketplace, while good customers service and excellent products will ensure customers will visit your store again and again.
However, be wary of fees; each marketplace will have its own fee guidelines, so choose one which works best for you and your business. Meanwhile, these marketplaces are focussed upon the products rather than the business, so you have to really impress to make an impact.
Why you should wait to open a store
When starting your business on a marketplace is so easy, you may be lured into thinking that setting up shop will be just as simple, only with a focus on your products alone. Don’t be fooled into thinking this as opening a store from scratch is incredibly difficult.
Even those businesses with the most unique idea and successful trade struggle for years as they did not give themselves the comfort of an online store to set themselves up. Bernard Tennant, retail director of the National Chamber of Trade, was quoted in the Independent as saying: “A lot of people who have never been in retail think they’ll open a little shop.
“It looks easy, but many people get their fingers burnt. A lot of people have lost a lot of money.”
With NatWest releasing data showing that there are more new start-ups in retail than any other sector, and 40% of business start-ups collapsing within four years, it’s important to step carefully when entering this busy market.
Marjorie Bannister of Wax Lyrical and Robert Currey of Equinox have both stepped forward to discuss the difficulties they both experienced on the high street. Despite now working in an incredibly successful business, with over 30 stores, 200 staff and a turnover of £8m per year, Bannister still expresses concern:
“Every year I say we’ll have it all sorted by next year and we can relax, but it never changes. Now I’ve got a baby too, I don’t even sleep.”
Dream big
Don’t give up hope of opening up a high street store or even chain of stores however. Many examples of start-ups which go under do so as they begin without a backing behind them, and in the competitive world of retail it’s important to ensure a customer base before investing in a store.
Starting online and working from home is an excellent way to do this. If you choose not to take advantage of marketplaces on websites such as eBay and Amazon, a website with ecommerce can be just as successful if done correctly.
In a report by the BBC, it was stated that a massive £311bn was spent in the UK in 2012 despite the financial crisis. Furthermore, while the news is filled with reports of the high street floundering, 90% of this money was spent in physical stores.
Businesses which take advantage of an online store usually fare better in the high street – Oak Furniture Land is one such business which started as an eBay trader in 2003 and moved to the high street later.
Ecigarettedirect.co.uk is another business which began as a success online and then moved into a high street location. With stores based in Neath and Swansea, the business still maintains a prominent online presence whilst enjoying high street success.
