Whether you currently operate a successful online business or not, you may be tempted to open up your own business as a brick and mortar shop. But is it a good idea to do so, or should you hold off?
Continue reading to learn about a few things that you should consider prior to diving into setting up a brick and mortar store so you can make the best decision for your future as an entrepreneur.
There are a Lot of Upfront Costs
In addition to scouting out a location that will attract the most customers to your business, you also need to spend a lot of time investing in the capital that you’ll need to get your brick and mortar store off the ground.
For example, you’ll need to potentially renovate a space so that it can fully suit your needs and vision, and you’ll need to purchase merchandise displays, a credit card processor, a security system, décor, and inventory. All of these costs will be on top of the rent that you’ll be required to pay to lease your space or the mortgage that you’ll pay if you’re planning on buying a building.
After you’ve set up your shop, you aren’t done either because you’ll need to cover any maintenance costs that arise when the shop needs repairs and upgrades.
You’ll Need to Purchase Insurance
Because you’ll be dealing with a facility, employees, delivery people, and, of course, customers and other clients, one of your biggest investments will be into the many different types of business insurance that are necessary, such as professional liability insurance provided by bizinsure.com.
The policies that you invest in will protect you in the event that a lawsuit is brought against you for everything from a customer who slips and gets hurt, a delivery driver who gets into a car accident, or a worker who becomes injured on the job.
Business insurance can be expensive, especially if you need to purchase multiple types of policies. Therefore, the monthly premium for the coverage is something that you will need to factor into your overhead. If you don’t think that you’ll be able to afford the costs, it may be best to stick to an e-commerce store.
Not All Businesses are Suited to Brick and Mortar Shops
If your business is geared towards a global audience, a local brick and mortar shop would end up limiting your customer base. On the other hand, a brick and mortar shop is really good idea for businesses that sell products that people would prefer touching and trying on, such as clothes and shoes. So, in the end, it really depends upon what you’re selling and where your customers are located and what they want.
As you can see, it definitely isn’t easy opening up a brick and mortar store, so before you take the plunge, make sure to really do your research, crunch some numbers, and figure out if this is the right step for your business goals after all.