What is Brick-and-mortar and how do you start a brick-and-mortar business? A Brick-And-Mortar Business refers to a traditional business that has physical roots in the shape of a building. It offers its products or services to its customers through that building. The building can be classified as a store, an office, a mall, or something else depending on various factors, including the services it offers and the area it occupies.
Even though online shopping has its influence on the retail industry, the brick and mortar business still produces sales ten times that of the digital business. No wonder the biggest digital retailers like Amazon maintains the brick and mortar infrastructure. So, if you are starting this business from the scratch, or if you want to strengthen your digital business in line with this business model, you’re at the right place.
In this article, we’ll go through the things you have to do to start your Brick-and-Mortar business. In addition, we will also discuss the advantages and disadvantages of owning a Brick and Mortar business.
Things to Know Before Starting Your First Brick-and-Mortar Business
1. Your Product or Services
If you already have a digital business, then you don’t have to think too hard over this part. But if you’re starting from scratch, then you have to consider a few things that will help you decide what kind of products or services you want to offer to your customers. For example, you have to consider your reason for starting this business.
You may need to ask yourself if this is for financial purposes or for personal purposes. If the answer is the former, then you have to consider the area in which you intend to settle. If it is around a residential area, then a grocery store would be a great idea. But if it is around an educational block, then a bookstore might do wonders for you.
You also have to consider the saturation of the field. Does the area already have a lot of bookstores or grocery stores? What else is in high demand in that area? Also, what does the area lack? After carefully going through all the questions, you can choose the right product or service. But if it is for purposes other than finance, then you can consider things like your hobbies, passion, and interests to choose the right service for your business.
2. A Business Plan
Every business, small or big, digital or physical, needs a business plan. Drafting a business plan helps you go through every little detail, including the complications that your business might have to face. After deciding the type of product or service your business will be offering, you have to think deeper into it.
For instance, if you’re opening a bookstore, what kind of books will your store have? Where will you get those books from? When and how will you get those books? Will your book store only have books? You will also have to determine the pricing and calculate the profit and loss ratio. This will help you come up with a clear picture of your financial needs.
After coming up with a business plan, you get to know the exact amount of money you need to run your business smoothly. Now, if you have the funds needed, then it is no trouble for you. But if you need financial help, then there are a few options that you can consider. There are many companies offering loans meant for such purposes and you can also consider having a silent partner investor in your business.
4. Commercial Lease
If you’re renting a space for your business, then you need to sign a commercial lease. A Commercial lease is a legal agreement between the owner of the property and the tenant regarding the upkeep of the property. A commercial lease covers various topics like taxes, expenses, security deposits, etc.
You need to obtain the licenses according to your business and its expanse. If you are opening a bookstore, for instance, you might need a general business license. This license varies from state to state and city to city. You are required to get an Employer Identification Number and a sales license. The number is important for you to be able to report your taxes to the IRS. Go through all the types of licenses you might need in your specific area and obtain them.
Now that you have everything set up for your business, you need to consider the most important of all the steps – marketing your business. You have to set up a creative marketing plan which will help you draw customers to your business. There are thousands of different strategies and plans that you can work around to increase your business traffic. For example, you can:
- Conduct In-store events
- Promote your business through ads on various platforms like Instagram, Facebook, Pinterest, etc
- Hold giveaways
- Set up campaigns for your customers
- Leverage AR and VR solutions
- Scale checkout points for smoother transactions
- Maintain an aesthetic digital presence
- Distribute coupons
- Introduce creative programs
- Consolidate Experiential Marketing
Advantages of Brick And Mortar Business
- Enables customers to physically test the products to their satisfaction
- Gives customers instant gratification
- Enables clients to question staff about the details
- Enables businesses to develop personal connections with customers
- Also provides more opportunities for sales through in-store displays and convincing sales techniques.
Disadvantages of Brick and Mortar Business
- Running a physical store involves significant expenses, including paying wages to employees and paying rent, utilities, water, heat, and transaction fees.
- Physical stores have space limits, so companies can offer only a certain amount of products at in-person locations.
- Physical retail stores may have hours or locations that are inconvenient for some customers.
- Brick-and-Mortar locations require customers to travel to the location, which can be time-consuming and less attractive compared to shopping online.
- Due to space constraints in physical stores, businesses can only sell a limited number of products there.
- The Brick and Mortar Businesses are physical businesses present in the form of stores and offices.
- Brick and Mortar Businesses have ten times higher sales than digital businesses as customers still prefer to shop in person.
- To open a brick-and-mortar business, you have to decide the type of product/service you want to offer. You need to decide on a location and come up with a business plan. You need to get the money needed for the startup. You need to obtain the licenses and sign the leases. You have to market your business through various strategies.
- Finally, the brick-and-mortar business can be time-consuming and require a lot of hard work.