What is a retail store?

Let's start with the basics. When we talk about a store, store or retail outlet, we are referring to stationary retail . This includes companies that procure goods, bundle them into their own assortment and sell them to non-commercial consumers. As a store owner, you are therefore targeting private end customers and are engaged in business to customer (B2C). This distinguishes retail from wholesale. Because the latter does its business primarily with other companies. This is called business to business (B2B).

Which stores are part of the retail trade?

The retail sector is enormously diverse. In Germany alone, there are almost 320,0001^companies in this category. Incidentally, the retail sector generates total annual sales of around 607 billion euros , making it an important pillar of the economy. Businesses that belong to the retail sector include:

• Bakeries
• Clothing stores
• Bookstores
• Deco stores
• Florists
• Stores for electronic supplies
• Kiosks
• Small supermarkets
• Toy Shops
• Corner stores

There are countless variants, all of which are assigned to retail. The transitions are often fluid. But whether you want to start your own business with a flower store or a delicatessen: Our guide to opening a business is useful for any store.

‍

Who is allowed to open a store?

The good news is that you don't need any special qualifications to open a store. Even the legal requirements are comparatively low. The reason is the freedom of trade, which is laid down in §1 of the Trade, Commerce and Industry Regulation Act (GewO). However, there are exceptions. Anyone who wants to sell medicines, pet food or weapons needs a corresponding permit.

Am I suitable for self-employment?

That's a different question altogether. Because just because the hurdles to opening a business are relatively low doesn't mean that everyone has what it takes to be a store owner . So you should answer the following questions in advance and be honest with yourself:

• Do I like to work self-directed or do I prefer to work under guidance?
• Am I willing to take certain financial risks or is security more important to me?
• Am I disciplined enough to do boring but necessary tasks like dealing with authorities, bookkeeping or negotiating with suppliers?
• Do I have the will to persevere even in times of crisis?
• Is my business idea well thought out and not just a pipe dream?

So whether you are suitable as a store owner also depends on the inner attitude - New German "Mindset". By the way, you don't have to answer the last question alone. In addition to consulting services offered by the Chambers of Industry and Commerce (IHK), competent tax advisors can also assist you and develop a business plan together with you. More on this later.

What do I need to open a store?

If you want to start your own business, good preparation is enormously important. Besides the actual business idea, many other aspects must be considered, such as:

The business registration on time

If you want to open a store in Germany, you have to register this with the Trade Licensing Office. There you will receive a trade license, which gives you permission to run a business. In theory, you only need the trade license when you issue an invoice or sell something for the first time. In practice, of course, it makes more sense to have the trade license in your hands a few weeks before you actually open your store.

Necessary insurances

Before you open your store, you should take out insurance. Business liability insurance, for example, protects you against claims for damages if you accidentally sell faulty goods. Business contents insurance is also a good idea. This protects you against damage caused by burglary or vandalism. The type of insurance you need also depends on your business model. Ideally, you should therefore contact the insurance company you trust for detailed advice.

The right location

As a retailer, you sell your goods primarily in your own retail store. You therefore need a location where you can physically open your store. Which location is optimal depends on many factors. Good transport links are just as important as an attractive location that attracts walk-in customers and, of course, affordable rent.

An appealing interior

Well thought-out, loving furnishings are an important success factor for your successful store opening. After all, furniture, decorative elements and clever storage solutions determine whether you can present your goods attractively and offer customers a pleasant atmosphere in which they are happy to spend their money.

A modern cash register system

Regardless of whether your customers pay by cash or card - a secure, legally compliant and convenient POS system makes life as a store owner much easier. Ideally, this should be an all-in-one POS system that has a DATEV connection and many other useful functions. Because digital POS systems are so valuable for retailers, we have dedicated a separate blog post to this topic.

These points are just examples. As a future business owner, you need to think entrepreneurially - right from the start. Our tip: Invest time and energy in a business plan

Opening a business: Do I need a business plan?

Business plan: this term breathes the spirit of a business administration degree and sounds like work. And yes - a good business plan means that you have to deal intensively with your business idea . But first, it can be a lot of fun and second, the business plan helps you avoid typical mistakes. Mistakes that can become expensive later or even cost you the business.

What belongs in the business plan?

There are no guidelines here to which you must adhere. However, a good business plan covers many different areas - from the basic business idea to financing and defining your target group to observing the competition. You can find numerous templates for business plans on the Internet. However, these often do not go into enough depth and are not tailored to your individual needs. Here, too, an IHK start-up consultation can help you. Tax consultants or lawyers who specialize in corporate law and business start-ups are also a valuable source of help when creating or reviewing a business plan. Especially important aspects such as the choice of the right legal form or a multi-year financing plan with the necessary start-up capital can be clarified in this way.

Do I need to advertise before opening the store?

The business plan is ready and the business has been registered? Your store opening is only a few weeks away? Then your potential customers should hear about it. Used smartly, advertising and marketing can make a big impact. How about a small grand opening celebration that you announce on social media and in the local press ? Flyers, posters or ads can also draw customers to your business.

Digression: What makes your business special?
Your new business must first establish itself on the market and convince customers. So think carefully about what makes your business special and what you do differently or better. As a florist, you might specialize in wedding arrangements or offer flower tying classes. Whatever it is: Your unique selling proposition sets you apart from the competition and gives you a competitive edge.

Do I need a website as a store owner?

Even if you sell goods such as flowers, decorative items or books primarily directly over the counter : A website also makes sense for small retail businesses. After all, customers can then also find you online via the various search engines and view useful information about your offer or opening hours . For simple websites, there are many modular systems besides WordPress, some of which are not bad at all. If your business grows, you should later think about a webshop through which you sell your goods online. This way you have a second leg to stand on in times of crisis - keyword Corona.

Open a business: Your start into self-employment

Of course - this guide can only give you some initial tips for opening your own business. However, our recommendations already form a good basis. We wish you every success and accompany you with our modern cash register systems on your way to self-employment. We are sure: Soon you will offer your customers a business they cannot refuse!

¹ https://de.statista.com/themen/136/einzelhandel-in-deutschland/#dossierKeyfigures

‍