Starting a retail shop in the 21st century

21 Oct 2019 13:07 | Kim hoang (Administrator)

Running a business in the 21st century is pretty amazing.I can run my business from my laptop and internet connection anywhere in the world.
Book my flights, Airbnb and transport from an app.
Start an online business with a couple of clicks.
I don't even need to buy a van for my business as goget allows me to hire one on demand.

So why is it that when you start a brick and mortar business, the process has never changed?

Let's see what the process looks like

  1. Come up with an idea
  2. Research on the store location
  3. Contact and negotiate with agent/landlord
  4. Come up with floor plans and renders of the store
  5. Source furniture and fit-outs
  6. Send to agent/landlord for approval
  7. Apply for bank loan/funding for furniture and fit-outs
  8. Organise insurance, utilities, rates etc
  9. Organise set up, delivery and fit-outs dates
  10. Install POS systems
  11. Find staffing
  12. Open for trade

All this would probably take you 1 - 6 months of planning and execution and cost between $50,000 - $250,000.

This is not including the ongoing cost of rent, staff, insurance, utilities etc

You are also lucky if the bank loans you the money without putting your assets on the line.

So before you even start trade you are already in debt of hundreds of thousands of dollars.

When do you start making a profit and pay yourself?

It is no wonder 60% of all businesses fail within the first 3 years.

Now let's look at the e-commerce solution

  1. Come up with an idea
  2. Pick a website name and template
  3. Set up payment gateway
  4. Upload merchandise images
  5. Public online and start trade

This would take you a couple of days and a couple of hundred dollars to do.

If it doesn't work out, well you haven't lost that much compared to the brick and mortar option.

Now I am not saying that brick and mortar retail doesn't work as it has been around for ages and will still be around for years more to come as people will always prefer to touch and feel products.

What I am saying is that we need to provide bricks and mortar retailers with an even playing field.

Why should retailers who are extremely hard-working people and some work 70+ hours weeks be punished if they choose to operate their business with a brick and mortar store instead of an e-commerce store?

Why do they need to pay $100,000 for a brick and mortar vs $1000 for an online store?

During our market research at Pop up finds we found that the biggest cost to retailers was for their store furniture and fit-outs.

Which to me doesn't make sense as to why you would spend hundreds of thousands of dollars on an asset class that significantly drops in value as soon as you open your doors.

Then if you choose to shut your store and can't sell your furniture and fit-outs then most of it will end up in the landfill. Which isn't very environmentally friendly!

This is where our Pop up on demand solution comes in.

We have packaged turnkey retail rental solutions that incorporate furniture, fit-outs and POS systems at a simple and affordable weekly rate starting from $100 a week which includes set up, pack up and metro delivery.

Once you are done we will repackage it for the next retailer to use.

Let's change the way retailers do business and de-risk the whole process.

“Our aim is to create a sharing circular economy and reduce landfill waste while helping the next generation of retailers succeed.”

For more information

Please go to our new website

Powered by Wild Apricot. Try our all-in-one platform for easy membership management