July is Independent Retailer Month – a time to celebrate and support retailers in our community.
Whether you’re opening up your own shop, or have owned your own for some time, being an independent retailer can be a challenging and unpredictable career choice. One of the most important ways to ensure growth year-over-year is to create a realistic budget based on accurate forecasting. That means gathering data not only from sales, but from factors such as gross margins, marketing calendars, anomalous events and fixed overhead costs. By understanding the ebbs and flows of your cash flow throughout the year, you will be better equipped to create a budget that not only ensures profit, but also peace of mind during slower times.
While challenging, being an independent retailer is also extremely rewarding and is the backbone of our local economy. That’s why we’ve come up with a few tips to help independent retailers grow their business, as well as how members of the community can support them:
Shopping local
Throughout the last few years, we’ve all heard about the importance of “supporting local,” but what does it actually mean and why is it significant for the local economy?
Aside from contributing to the development of a vibrant community (which is very important), keeping profits within the community contributes to local economic stimulus. By purchasing from local businesses, money is kept within the community and allows for not only retailers to benefit, but also other local businesses such as service providers and agricultural institutions. This in-turn supports the local tax base and helps to create jobs as well as improve local infrastructure and institutions. Shopping local means local economic growth.
Invest in marketing
One of the most important things independent retailers can do to grow their business is invest in marketing efforts. However, when we say “invest,” we don’t necessarily mean monetarily. When it comes to building awareness around your business, developing and executing a marketing strategy can be relatively cost effective with the use of social media, but an investment of time, effort and creativity is necessary.
Taking the time to stay informed of trends and platforms will allow you to stay ahead of the curve and utilize them to your advantage, but one of the most important things you can do is create a marketing plan. Start with a goal and some objectives in mind – whether that be creating awareness around brand or driving sales for a specific product – and plan out a way to get your message across to audiences. Once you have these factors determined, you can get into planning specific posts that capture your audience’s attention and gets your message across. Planning may seem like a lot of work up front, but it will help you stay on track and ensure your efforts yield maximum results.
Be a good neighbour
As previously mentioned, being an independent retailer can be a difficult job – that’s why teaming up with other independent retailers can be a mutually beneficial relationship. Working together with other shops to provide better services for customers not only strengthens the community, it also ensures all parties involved share in the benefits. Perhaps your coffee shop provides 25% off to the gym-goers next door, or your clothing boutique displays plants from the plant shop next door. Either way, your business will increase exposure and receive the same in return!
Whatever your business may be, Credit Unions of Alberta are always here to help you grow your dreams. Visit your local credit union to speak to a financial expert today. Find a credit union near you to get started.