There are too many retail stores with very short life. For the retail stores that have very short life, there are many reasons. But, one reason that is most usual is a lack of the customers. Without customers, you will have a bad cash flow and cannot cover the basic costs for the business.Reasons for lack of customersBefore we go with 10 practical sales improvement steps, I would like shortly to present some reasons about the lack of buyers:
Poor market research. Without appropriate market research, you cannot have knowledge about your customers, their needs, their habits and their ways of money spending. Because of that you cannot know how to sell to them, and probably you cannot satisfy their needs.
Inappropriate selection of location. If you don’t make analysis of your location where you want to start your retail store then probably will be happened that you don’t have enough traffic after opening and in that way you will have less people who will remark your store.
Insufficient promotion. If you don’t choose the right promotional tolls the customers will not know that exist something like your store. If you don’t attract their attention, they will continue with the previously habits of buying from your competitors.
You don’t understand your industry. You cannot sell something that you don’t know. Some people have knowledge about fashion and that people will be an excellent retailer for clothing. Another has excellent knowledge about car industry, and they can be excellent sellers for car spare parts. If you don’t have knowledge about your industry you cannot choose the right products, and you cannot recommend the right products to the customers. In this way, you will have insufficient buyers, and also your money will be invested into products that cannot be sold.
These are some basic but most important reasons about a lack of buyers not only in retail stores but in every business.10 Improvement StepsThe basic steps that can improve selling and also business potential energy are:
Analyze yourself. Starting a new business is not only sitting in the store and selling. Do you prepare for such an undertaking? Do you have sufficient knowledge about financing, marketing, planning, selling, supplying, inventory and other things? Are you prepared to disclaim from your current habits? You must answer on these questions before you starting a business.
Planning. Your business plan will convert business potential energy in your business idea into profitable business. Plan all things that you must perform. If you want to succeed you must have a quality business plan that will help you in the better decision making.
Study your industry. You must know the main local, national and global players in the industry. What products are most wanted products. This study will give you the basic guidelines for the future of your business.
Study your current and potential customers. This study must be about their needs, habits and behaviors when buying. When you know them you can offer something that they needed and will continue to buy from you. You must remember that you exist because of them, and they not exist because of you.
Continually study your cash flow. Without enough cash your business may to go into disaster. Spend as much as you allow your cash flow. Try always to have enough money on your account. Your business can make a profit but also to fail because of insufficient cash.
Build and continually improve your image. Image present that your customers have in their brain about you and your business. Your image is created through your product, logo, promotional materials, the way of doing selling, prices, location outlook… Good image will bring you more customers.
Select the right price system. Prices present combination of art and science. They rely on the products that you sell, your image and services that you perform. But, you must remember that prices must cover all expenses and to bring profit to you. Competitiveness is not measuring only with price. There are too much small businesses that closes their doors because of wrong price system that they implement.
Control your inventory. You must build a system for inventory control that will enable inventory with a minimal or optimal level. Inventory means lower cash. If you have a higher inventory level you probably will have problems with cash flow.
Use each opportunity to promote. Good promotion is not only ad on radio or TV. Everywhere you go promote your business through giving your business cards, promotional material, brochures, flyers… Talk with people about your business and your offers. All of these activities will bring more and more customers.
Ask for help when you think that you need it. Too many activities are depending only on you. It sometimes is better to spend some money for someone who will help you with consultancy advices rather than sit and watch as your business falls. You must remember that you cannot be expert in all fields.