1st, I want to create 1 small (privately held) 24 hr. retail store, and do it my way, (A retail business model of excellence, a store where local customers all have their own I.D. and savings card). The store would plan for 15-20,000 sq. ft. or about 10% of the U.S. leading large retail store (not counting loading dock or warehouse for stock). Store will have 3-5% more employees than needed per shift for customer service. Store property will have 150-175 security patroled spaces for parking with night lights 10-15% more brighter than what is required. Employee and delivery entry and exist(s) are separate from customers. Store will carry a wide range of consumer goods and services; the top 70-80% of what one might consider to be found in a contempoary consumer retail store...with express check outs, at each register. 2nd, there will be separat "employee" and "customer" profit sharing. Free on site day care and medical insurance for employees. What do you think? Do I have a chance?
2006-12-26 12:58:41 · 5 answers · asked by Paul 3 in Local Businesses ➔ Other - Local Businesses
Well it sounds like you have given this a lot of thought, and have designed a really cool place to work and shop. Way to go!
But lots of really cool buisnesses go out of buisness every day. What will determine if you sink or swim or not will be the local market.
A) Is there a need for such a store in the area? Most small business sink because the owner opens the sort of store THEY want to run, not the sort of store anyone needs to go to. For example, even if you have wanted to run a bookstore since you were 5, opening up a bookstore around the corner from a giant BORDERS and down the street from the public library, well that's just not the best idea. If however you notice that there isn't a hardware store for 30 miles in either direction, and you open up a hardware store instead of a bookstore you will be serving a market that hasn't been served yet, and have a better shot as making it.
B) Is there a NEED for such a store in your community? EXACTLY what sort of "wide range of consumer goods and services" will you be selling? Why are you going to be 24 hours? How many people really need to buy lawnmowers at 2AM? Is there a need in your community for people to buy potted plants at 7AM on a Sunday Morning? Do you expect a lot of people to be buying toys and watches at 11PM on a Wednesday? You need to answer these questions and think about them before you go forward. That is what a good buisness plan is for.
C) What is your competition going to be? Sounds like you are looking to be in direct competition with Walmart and Target. That's some pretty tough competition. Walmart has some serious cost advantages due to their distibution system being hyper efficent. They strong arm their suppliers for low prices and volume discounts and are non-union to boot. It is virtually impossible to undercut them on price. Lots of people have tried, and lived to regret it. (Economists estimate that if it wern't for Walmart inflation in the US would be about a full point higher than it is today.)
I applaud your desire for free on-site daycare and medical insurance. It would be great if more employers were like you. However there is a reason more employers aren't like you, it costs a LOT of money. Starbucks has full health insurance for all employees, but they are selling a cup of coffee for $2.50, so their margins are fantastic and they can afford it. You on the other hand have to make that cost up somehow, and if your staff is larger than Walmarts and they all have health insurance it is going to be REAL tough to stay in the same price range as Walmart. If your prices are higher than Walmart's, well people will go to Walmart instead.
To make this work you will have to come up with a reason for people to pick your store and NOT Target or Walmart or your other competition. What can you do for me, the customer, that they can't? It's nice that your parking lot lights are brighter than the law requires and you don't treat your employees like dirt; but folks won't notice that... they will notice if your lawnmowers and frozen pizzas cost more than the ones at Walmart and Target though. Oh sure, people love to complain about the long lines and the lack of service and rotten decor at Walmart, but push come to shove, saving a $1.98 on flashlight batteries and getting a sweater for 20% less than it would cost at the mall always beats service and decor. People will stand in line if it means they get lower prices and can get more for their money.
You sound smart and like you are willing to work hard. That's half the battle, but it's only half. Figure out what YOU can do that your competition can't. That's your key and that's your angle. Then you will have a good shot at it.
2006-12-26 13:38:45 · answer #1 · answered by Larry R 6 · 1⤊ 0⤋
It sounds good to me, especially the on site daycare. That will save a little time and your employees that have children will be on time!!! But the big stores might be hard to compete with. I hope that you have huge success with this, Good luck!!!!
2006-12-26 13:17:20 · answer #2 · answered by nicolehaleyshane 3 · 0⤊ 0⤋
Do not know if it is feasible, but sure sounds like a winner to me... Good luck, nice to know someone wants a business that actually cares about the customers and employees alike... Please keep me posted on how you do !!!
2006-12-26 13:04:55 · answer #3 · answered by mobileminiatures 5 · 0⤊ 0⤋
Read the future of the dollar here and judge for yourself:
2006-12-26 18:42:07 · answer #4 · answered by Mexicaliente 2 · 0⤊ 0⤋
what is your competition, big chains will cut your throat with lower prices
2006-12-26 13:09:19 · answer #5 · answered by robert c 3 · 0⤊ 0⤋