Have you always dreamt of having a shop of your own? There are few things in the world as precious as a business that you built from scratch. It is extra special if it’s in a lovely small town.
We are here to help you navigate through the whole process of opening a new store in the horse capital of the world.
Factors to Consider When Putting Up a Retail Store
The following are some basic considerations to keep in mind when thinking about starting a retail store business.
1. Repair And Maintenance
Once you decide on a space for your retail outlet, you’ll have to get the necessary repairs done. You may have to get hardware installed and distinct lighting fixed.
Ensuring all your electrical equipment and wiring is all okay and safe is essential. We’ve made your work easy by finding you the best electrician Lexington KY.
2. Competitors
Research your neighboring stores as it’s vital not to choose a shop location that is conflicting with its neighbors. If you position your store next to ones that have a similar target demographic, you will draw the most customers.
3. Work-Life Balance
Find out the factors that may hamper your independence as a retailer, such as restrictions from the landlord. Making sure you don’t spend most of your day commuting and thus draining all your energy is also important.
Over time, you will be able to gain a footing that’ll maximize the benefits of being your own boss.
How to Start Your Business in Lexington: 12 Steps
Here are 12 steps to consider when you’re planning to open your business in Lexington.
Step 1: Decide What Will You Sell in Your Store
What do you enjoy doing or would love to sell?
Figuring out your niche is almost half the hard work done. You should look into the barriers of the industry you want to enter and also other businesses you’ll compete with.
If you’re still interested after thoroughly researching the problems you could face with this niche, it is certainly the one for you.
Step 2: Write A Business Plan and Create A Budget
First, you need to determine your target customer base, marketing strategies, unique selling points, and so on. You also have to decide how you’ll take every little step in the process, from how much money you’ll need to start, to how long it’ll take for you to break even, and then make a profit.
You will need to budget for some remodeling of the store space. This includes lighting, storage, floor designs, etc. You will need to contact local contractors who can source all the right resources you will need for this remodeling.
You don’t necessarily need to follow the budget and business plan; however, it is always better if things are organized and there are backup options.
Step 3: Find Out If Your Store’s Legal Name is Available
Even though the town is small, there are numerous booming businesses. It would be disheartening if you chose a name after nights of brainstorming and it is not available. Therefore, try to come up with a few options that would work for your dream store.
Step 4: Register Your Store With The State
This step will only take around one hour! Kentucky’s One Stop Business Portal walks you through the online process, registers you with the Kentucky Department of Revenue, and helps you meet the state’s tax requirements.
Step 5: Register for Your Federal Employer Identification Number (EIN)
This step can also be done online and will take you only fifteen to twenty minutes. EIN is also known as the federal Taxpayer Identification Number. You will also be needing it for your city occupational license application.
Step 6: Find A Physical Location For Your Store And Build an Online Presence
This will entirely depend on what sort of niche you are going for. The location of your shop is absolutely pivotal in its growth journey, so be sure to do your research and actually visit the sites before finalizing anything.
In this age of technology, if your products aren’t available virtually, you will miss out on an entire group of customers in a small town with an ever-growing number of businesses like Lexington, Kentucky.
You could build your own website and use social media platforms or popular marketplaces.
Step 7: Get Your Certificate Of Occupancy
A Certificate of Occupancy confirms that you can utilize space for your business legally. If you’re lucky, your chosen location may already have this certificate. If so, you will need a copy of it.
Step 8: Apply For An Occupational Licence
This is a business permit, and you will need to print out the application form online and submit it in-person or via mail. Don’t forget to include a check for the $100 license fee made payable to LFUCG.
To submit an in-person visit:
Division of Revenue
2nd floor 200 E Main St.
Lexington, Kentucky 40507
To mail the application, send it to:
Division of Revenue
PO Box 14058
Lexington, KY 40512
Step 9: Pay Taxes on Time
If your business is one of the regulated businesses, you will need to reach out to the Division of Revenue to find out if you’ll have to pay any additional fees. After being licensed, you will need to pay an occupational tax and submit forms for your year-end filings to the city.
Step 10: Find Trustworthy Vendors And Suppliers
You should try to ensure that your vendor is fully aware of your budget, has the best quality products, delivers on time, and has a good communication system in place so that you can easily contact them and build a long-lasting, amicable relationship.
Step 11: Hire Suitable Employees
Invest in staff and try starting out with a good, cohesive team. Employees are actually the highest area of risk, especially for businesses just starting out, not a hurricane or flood! They will matter a lot to your business.
They are the face of your business when you’re not there, so it is important for them to have the required qualities. Bad employees can run your business to the ground. Make sure to treat your employees with respect but also set proper boundaries.
Don’t forget to look into Kentucky’s employer requirements to find out the legal details of the process.
Step 12: Choose Your Business’s Best Friend Carefully: A POS System
Your aim should be to find a consistent and easy-to-use model for transactions. It would be best to include the option to accept cash, checks, and cards.
On-the-go payments, mobile payments, and contactless payments can also attract more customers to your store. A good receipt printer, barcode scanner, and cash drawer are essentials too.
Conclusion
If this is your first time starting a business in Lexington, please remember that it is a learning curve. At times, you will feel completely alone. There may be days when you get no customers or your cash till doesn’t ring.
Even after you’ve thoroughly read all our tips above, you might make mistakes that will make you feel stupid. All you have to do is keep pushing. The day where you reach all the big and small goals for your store isn’t too far away.
