Something for All Growth-Minded Retailers

Retail "startups" are not limited to that new little shop down the street. Instead, a simultaneous multi-store launch is a "retail startup". So too is opening additional locations in new geographic markets. Maybe a temporary "pop up shop" to test a new retail concept. Or the launch of a robust e-commerce site. Or, manufacturers that decide to launch their own chain of stores as a way to grow their brand.

In 2009, The Retail Owners Institute® launched a specialized website, called Retail Startup, to address growth and expansion issues specific to retailers. 

It includes our commentary on each of the 3 different stages of development of a retail business.

• "Your First Store?"
• Four Strategies for Growth & Expansion
• Evaluating Retail Rollouts

But principally, it is a clearinghouse for growth-minded retailers. Out of all the resources on the web for startup businesses (those so-called "small businesses"), we have "curated" those links to find the ones most useful to retail startups. 

• Retail Management Resources
• Retail Operations Resources
• Information for Retail Growth Management
• "Small Business" Resources
• "Shop Local" Initiative
• Key Retail Financial Benchmarks, 53 Retail Segments

No matter which stage of growth and expansion you're in, you'll likely find some useful resources. Check it out for yourself. Just go to RetailStartup.com.

"The Entrepreneur's Pledge"

The Kauffman Foundation for Entrepreneurship, based in Kansas City, has been helping entrepreneurs leverage their ideas for many years. Their "Entrepreneur's Pledge" certainly resonates with us. It captures the essence of the people we had in mind when we began building The Retail Owners Institute®.

The Entrepreneur's Pledge, from the Kauffman Foundation of Entrepreneurship

I AM

• an entrepreneur
• following a dream, pursuing an opportunity, taking charge of my own destiny.
• bringing something of value to society, making a job for myself and for others, and creating wealth that benefits my family, my community, my country, my world.
• one of a movement of millions of entrepreneurs and innovators who made America great, and who will keep our country going...and growing.
• what I am, because many people have helped me along on this journey.

THEREFORE, I WILL

• tell my story, sharing my successes and failures, so that others taking the entrepreneurial path can learn.
• strive to mentor an aspiring entrepreneur.
• make my voice heard by those who make policy decisions that affect me and my business.
• appreciate and celebrate my accomplishments, and the accomplishments of my fellow entrepreneurs.
• give back to the society that helped me to be successful.
• build a stronger America.

Foolish Prediction? We'll See in Six Months

Last week (June 2) we had a catch-up lunch with a long-standing (high end) retail client of ours who, so far, has averted bankruptcy. Surprisingly, the next day we received the amazing, and accurate, note below. He copied us when he sent this note to vendors, an attorney, an accountant and key staff members. Other than getting a chuckle out of it, we thought you might find some of the thoughts quite useful...or hilarious in five months!

"Hi Ya’ll:

I had lunch with the Seattle retail consultants that I’ve used for years. Pat and Dick have consulted together for about 25 years and are nationally known and quoted in their field. Their business is to follow retail trends at a macro level as opposed to living it down in the trenches like we do.

Here are their two websites: http://www.outcaltjohnson.com/ and http://www.retailowner.com/

Pat & Dick say that, barring no huge negative event in the stock market over the summer (which, of course is possible), they predict that high end retail will bounce back in September and October and that we should expect to see 10-15% increases over the 4th quarter period of 1-2 years ago (as opposed to increases against last year’s decreases—make sense?).

They cite:

• improving consumer confidence;
• improving real estate markets;
• improving numbers and wealth generation of the stock market;
• pent up cash;
• pent up demand.

They see our (high end) customers as being psychologically affected by what’s happening rather than their pocketbooks being directly affected.

Moving forward, customers will be cautious and looking for reasons to buy “value”, which isn’t necessarily related to price. As retailers we need to do a better/excellent job of explaining why high end product is a value, ie: style, quality, longevity, uniqueness, etc.

American consumers, they believe, will not outgrow their “I deserve this” way of consuming.

They predict that in the next 18 months, there will be an unprecedented number of retail start ups and entrepreneurs who see openings in the market because of all the retail failures; one more reason we need to stay on top of our games.

Lastly, they acknowledge that there is little we can do to force our customers to buy. What we should do, however, is maintain the course so that our customers see that we are weathering the storm.

Generally, we should not be changing locations if it can at all be helped and that as small, independent retailers, we need to maintain our WOW factor which requires us to have compelling, exciting stores when customers start coming back in.

It’s all prediction, of course, though it’s educated/experienced prediction. It was a great pep talk for me so I hope it helps you feel a tiny bit better about treading water.

And to quote Pat & Dick: Halitosis is better than no breath at all!

Tim"