What are the possibilities for the growth and expansion for target superstores?

Answer 1

Answer: I will assume that you wish to go into business for yourself and are pondering whether or not you should launch a target superstore. I will also assume that by having used the term "target" superstore, you would be retailing a specific category of items such as electronics, automotive parts and so on. In other words, you're not talking about a "one place for all" department store. Regardless of the product(s) and/or service(s) that you plan to sell, the following is a list of key factors that you should first carefully analyze before you take any action: Industry: All industries fall into three general categories, namely, (i) in decline; (ii) stable and (iii) growth. It would obviously be a mistake to open a business in an industry that's on its way down. A stable industry is obviously better; however, you won't be alone in the market place and will definitely have to offer an "added value" over and above that of your competitors. If possible, I believe that selecting to open a business in a growth industry could reap the greatest benefit provided that you understand the industry and have the necessary resources to nurture and grow the business. Reconnaissance: Do your homework; look at how other similar outfits are doing or not doing. Partnership: If you plan to have one or more partners, get as much information about them as you can. I can't count the number of times that businesses fail because of constant bickering between partners. If possible, always try to be the majority partner. Startup capital: If you are starting a business from scratch, you must, on average, be able to survive the first 4 to 5 years before reaching the "break even" point. You must have enough capital for every conceivable overhead expense including (i) rent or building acquisition; (ii) initial building repairs and/or improvements; (iii) Inventory; (iv) Payroll and the list goes on. A general rule of thumb is that you (and any partners) must be able to have at least 15% of the required startup capital before you can hope to attract 3rd party financing. Business plan: Develop two plans; one that is pessimistic and one that you believe to be realistic. For year 1, itemize both plans at the month level. Such plans are not only necessary for 3rd party investment; but also allows you a mechanism to gauge your progress at a given point in time in terms of where you expected to be versus where you are at in reality. Superstore location(s): If you are going to cater to a specific target market, you must determine where the majority of your customers either live and/or work. In addition, ample parking is a must. Legal & Financial: Hire a good commercial lawyer and accountant. There are obviously more factors to consider; however, the ones above are a good start.