Your Retail Business' Risks: Ranked
We've ranked the risks of your retail business so you know how to adequately prioritize them.
#5 Theft
You may be wondering why the risk of theft isn't higher on the list, but in the grand scheme of things. Losing one item isn't going to kill your business. If you witness someone stealing an item, your processes may even be to just let them walk out of the doors. This minimizes the risk of them potentially retaliating with a weapon. Your number one priority should be keeping the employees and customers in your store safe. However, you should look into purchasing a security system to protect your business while you're not there. Get a quote here.
#4 Employee Retention
Many retail small businesses depend on employees in high school or college students home for the summer. While these employees may be willing to accept cheaper wages, the cost of turnover may be hurting you more than you think. It takes time, and therefore money, to train new employees. It also could compromise your customer service. Check out some tips to retain your retail employees here.
#3 Pricing
Pricing your items too high or low could really mess with your profits. Price too low and your margins suffer, too high and you'll sell less. Mitigate this risk by doing adequate research on the items you're selling, what other companies sell them for, and what they sell for online.
#2 Data Security
As a retail small business, you may be taking your customers personal information and storing it in order to send them emails on promotions, sales, and other events. Their credit card may also be linked to their account. Make sure your data is safe by purchasing a system like this.
#1 Competition from Department Stores
The biggest risk of owning a small retail business is the potential for large department stores to take you out of the market. The only way to eliminate this risk is to differentiate your small business. Find a niche. Offer something that a department store can't. Make the shopping experience personal for your customer.