Table of Contents

Introduction     1
What to Expect from This Book     3
How We Learned the Hard Way     3
How Information Is Organized in This Book     7
History and Current State of Retailing     9
History of Retailing     9
Current State of Retailing     10
The Future of Retailing in the Electronic Age     13
What's in Store (Pun Intended) for the Future?     13
Meeting Consumer Needs vs. Selling a Product     14
Decisions Must Be Made!     17
Is Retailing Really for You?     19
Assessing the Realities     19
Psychological Demands of Retail     21
The Good, the Bad, and the Ugly     22
Get Informed     23
Research Available Resources     24
Check Out the Competition     26
Planning for Your Business     29
Develop a Business Plan     30
Monitor Your Progress     31
Keep Up with Changing Trends     33
Continuing Education     33
Seven Planning Do's and Don'ts     36
What Will You Sell?     37
The Selection Process     37
Consumer Demand     38
Selling"Green"     42
Compatibility with Your Lifestyle     44
Can You Make a Profit?     44
What Venue Will You Use?     47
Traditional Fixed Locations     48
Cooperative Markets     48
Catalog Selling     49
Internet Selling     49
Should You Become an E-Tailer?     50
Starting Out     52
Domain Names     54
Web Site Design and Hosting     55
Credit Card Processing     56
Reaching Potential Buyers     56
Shipping and Receiving     56
Sales Tax     57
Evaluate Your Options     57
How Will You Choose a Location?     59
Selecting a General Location     60
Personal and Family Lifestyle Issues     61
Narrowing the Field     62
Zeroing In     64
Zoning Compatibility     65
Merchants     65
Special Atmosphere Requirements     67
Space Needs     67
Costs and Landlord Rules     69
Customer Traffic     71
Final Evaluation     72
Closing on Your Location     73
Buying vs. Leasing      73
Negotiating the Lease     74
Basic Lease Elements     75
Starting Up!     79
Money, Money, Money!     81
How Much Do You Need?     81
One-Time Costs     82
Recurring Expenses     84
Sales Estimates     85
Where Will It Come From?     88
Legal and Regulatory Issues     95
Business Organization Options     95
Naming Your Business     96
Registration and Licenses     99
Insurance     99
Purchasing Your Inventory     103
Merchandise Markets     103
Planning Your Buying     105
Surviving the Market Environment     107
Buying Strategies     109
Other Buying Options     111
Online Buying     113
Preparing for Your Grand Opening     115
Finishing Touches     115
Staff Training     116
Advertising Your Opening     117
Daily Operations     119
Displaying Your Merchandise     121
Display Strategies     121
Deciding on a Theme or "Look" for Your Store     122
Permanent vs. Moveable Displays     125
Keeping Displays Fresh     126
Store Layout Strategies     127
Window Displays     127
Seasonal Displays     128
Display Talents     129
Pricing Your Products     131
Pricing Policies and Procedures     131
Exceptions to Standard Pricing     133
Customer Relations     137
Establish Policies Ahead of Time     138
Credit     138
Layaway     138
Special Orders     139
Damage Recovery     139
Hours of Operation     140
Credit Cards     141
Gift Wrapping     142
Gift Registry     142
Business Ethics     143
Questionable Business Practices     143
Continuous "Sale" Prices     144
Advertising Very Low Prices for Items When You Have Only One or Two     144
Sensational or Misleading Advertising     145
Other People's Ethics     145
Customer Relations in a Nutshell     145
Risk Management     147
Insurance     147
Workers' Compensation Insurance     147
Unemployment Insurance      148
Casualty and Property Insurance     148
Liability Insurance     149
Life and Disability Insurance     149
Employee Theft     149
Shoplifting     150
Store Security     152
Day-to-Day Cash Management     153
The Daily Grind     153
Managing the Cash Drawer     154
Cash     154
Checks     156
Credit Cards     157
Traveler's Checks     157
Reconciling Daily Receipts and Sales     157
Cash Management Systems     159
Instructions for Figure 18-1     160
Financial Management and Bookkeeping     163
Paying Your Suppliers     163
Paying the Government     165
Preventing Cash Cruches     165
Taking Draws     166
Reducing Self-Employment Taxes     167
Keeping Your Books     168
Two Essential Financial Reports     169
Balance Sheet     169
Profit and Loss Statement (P&L)     171
Using the P&L Statement     171
Computerizing Your Books     173
Computers and Software     174
Wrapping It Up      177
Managing Inventory     179
Establishing an Inventory System     179
Inventory Management Advantages     180
Setting Up a System     181
Managing Your System     185
Physical Inventory     186
Summary     188
Family and Employee Relationships     189
Employee Options     189
Employing Your Children     189
Spouses and Partnerships     191
First Rule     192
Second Rule     193
Third Rule     194
Fourth Rule     194
Fifth Rule     195
Sixth Rule     195
Recruiting Employees     196
Training and Communicating with Employees     197
Complaints about Employees     198
Dismissing Employees     199
Employment Laws     200
Principles of Employee Relations     201
Marketing Your Product     203
Marketing Basics     205
Marketing for the Small Retailer     205
Image and Branding     205
Advertising Methods     206
The Importance of a Marketing Plan     208
Marketing with E-Mail and Web Sites     209
"Snail Mail" vs. E-Mail     209
Blogs     211
Online Forums and Message Boards     212
Planning for the Future     215
Managing Change in Your Operating Environment     217
Human Tendencies     217
Pull of the Status Quo     218
Paradigm Shifts     219
Thinking Creatively     219
Expecting the Unexpected     220
Protecting Your Store from Internet Competition     223
Utilitarian or Decorative?     223
Size and Personal Fit     224
Time Sensitivity     225
Price Point     226
Gift or Personal Use?     226
Combined Evaluation     226
Selling or Closing Your Business     229
Is Your Business Marketable?     229
Tips for Closing Your Business     230
Setting Up the Sale     231
Timing the Sale     232
Selling It Yourself     232
Listing with a Broker     234
Establishing the Price     235
Cost Basis     235
Disadvantage of Cost Basis     236
Return on Investment Method     236
Determining Risk vs. Return     237
Determining an Equivalent Return     238
A Bitter Pill     239
Good News     239
Glossary     241
Useful Publications     247
Market, Gift, and Design Centers     253
Exhibition Companies and Trade Associations     257
Index     261