Challenges or opportunities? It’s a matter of perspective. Applying energy and enthusiasm will go a long way towards overcoming these obstacles in the path of running a successful store.

1)Lack of capital – Managing a shop’s funds is always difficult, because it’s often impossible to predict sales (and thus income) accurately. But controlling your inventory levels, i.e. the amount of capital tied up in stock, is one key factor to making sure that you have enough money to pay your bills. Make a budget for inventory purchases and other expenses so that you don’t accidentally end up borrowing money on your credit card that you’ll have to pay off at a high interest rate.

2)Bad location – Unless you have already established a loyal customer base, you need to find a location for your business that will have adequate traffic.  The more potential customers in the area, the better. And because shoppers today are pressed for time, it’s important to make sure there is easy access and adequate parking. Be alert to changes in shopping patterns that might necessitate a move, and try to keep on good terms with your landlord so that you don’t end up having to move due to a failed lease negotiation.

3)Competition – There are more and more ways for consumers to spend their dollars, from online retailers to discounters. Mobile devices make it simple to make a purchase without much effort.  You need to offer a shopping experience that is worth seeking out, with great customer service and a unique selection of products.  You may not be able to compete on price, but your contribution to your community as a local businesses is something shoppers should value.

4)Employee attrition – Retail wages are notoriously low, making it difficult to find and keep good employees. A well-trained staff is essential for optimizing the customer’s shopping experience, so it’s important to create meaningful and flexible work at as high a rate as you can afford. And allow employees to become engaged in a meaningful way in how the store is run.

5)Theft, dishonesty, and other bad things – Even the best intentioned business can be the target of crime.  Be aware that it could happen to you, and try to be alert to possible instances when someone might try to take advantage of you.  Ask your local law police force for tips on how to prevent shoplifting, employee theft and other shrinkage. And keep your insurance policies up to date to cover your from other types of loss.

Running a business can be difficult, but it can also be very rewarding (and not just financially).  Hopefully these five challenges won’t stand in the way of your success!

Happy Retailing,

Carol “Orange” Schroeder