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Pros and Cons of Starting a Retail Business

Weighing the Good and Bad of Retailing

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Visions of grandeur can become cloudy once reality sets in for some entrepreneurs. The aspect that may lure you to your business concept in the first place, may become the thing you despise. If you are considering opening a retail store, the following highlights some advantages and disadvantages of retailing and can help you make an informed decision of whether or not retail ownership is right for you. Here are a few pros and cons of retail ownership.

Pros of Retailing and Business Ownership

  1. Holiday sales figures
  2. Research and assistance from trade associations
  3. Satisfaction of building something from the ground up
  4. Attending trade shows and buying events
  5. Meeting new people
  6. Having on hand exactly what your customers want
  7. Cash transactions
  8. You get to set all the rules
  9. Selling merchandise you love and have an interest in
  10. Creating a pleasant atmosphere and receiving compliments about your shop
  11. Hiring and training wonderful employees

Cons of Retailing and Business Ownership

  1. January sales figures
  2. Large cash investment at startup
  3. Long hours and little (or no) pay to start
  4. Only vacation is attending trade shows and buying events
  5. Meeting difficult customers
  6. Not having what your customers want
  7. Bounced checks
  8. Having to do it all (marketing, buying, bookkeeping) yourself
  9. Too little profit on the merchandise you love to sell
  10. Finding damaged merchandise, empty packages and open food on your shelves
  11. Firing and disciplining lazy or rude employees

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