Convenience Store

Establish Policies

You know how you want your business to operate and the steps to follow to make it grow. Use those principles to start forming your policies. First, document the store hours, credit and customer service policies, security details, cleaning standards, and employee roles and responsibilities. Even if only you and a family member run the business, these policies will define your respective roles and when and how duties should be performed. They also will set clear expectations when you hire additional help.

Form a Stock Plan

Before filling your shelves, carefully consider the type and breadth of products you want to carry. Research what your competitors sell and for how much, and determine the quality and quantity of items you want to offer. Decide how you want to position your store to customers. For example, do you want to offer unique merchandise that sets your business apart? Most importantly, you should carry the products your customers want and avoid having too many items that sell slowly, cost too much and take up valuable floor space.

Look for Leverage

Consider what customers will pay and what competitors charge when setting prices. If you have many products set at different prices, it is easier to compete by lowering prices on some items in hopes of making up the losses by charging more on other items. These lower-priced items are called loss leaders.

At certain times, you may need to lower prices to improve cash flow or sell merchandise that tends to be purchased at a slower rate. Also, promotional discounts sometimes require a lower price in exchange for increased sales volume. To counter the resulting revenue decrease, try bundling the for-sale product with another item at regular price.

Set Clear Expectations

Retailing is often a family business, but you may require more help at some point depending on your volume of sales and your store's hours of operation. The first step in hiring is to learn the employment laws. Then you can post a job opening and interview applicants. Choosing your employees is important because their performance plays a role in forming the store's relationships with customers. To bolster customer service, set clear job responsibilities for each position. That way, employees know what is expected of them, and it will be easier to hire and manage your staff.

Please the Customer

In retail, success often hinges on the level of customer service. Meeting your customers' needs can give you a competitive edge. Some of the aspects that can win customers include fully stocked shelves, clearly marked merchandise and a clutter-free, clean store. On a personal level, a smile and polite conversation can help build relationships and trust — which can create store loyalty.

Guard Against Losses

Small businesses face risks every day. Accidents, theft, damaged inventory and legal concerns are among the pitfalls that could affect your store. That's why business insurance is so crucial. Make sure you're covered for any potential risk that could happen to you, your employees, your business and even your customers. Operating a safe and secure business with honesty and integrity will limit concerns, and proper insurance and a good business lawyer will help protect you against the expenses associated with potential risks.