5 Mistakes to Avoid When Running a Retail Business

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5 Mistakes to Avoid When Running a Retail Business

5 Mistakes to Avoid When Running a Retail Business

A retail business is one of the easiest types of businesses to find anywhere in the world. Retail businesses sell goods directly to end consumers for personal use and not for business.

But like any business, retail business also has the potential for failure or bankruptcy. Many factors cause retail businesses to fail, here are 5 mistakes to avoid when running a retail business:

1. Not Developing a Realistic Business Plan

An optimistic attitude is needed in running a business, especially when preparing a business plan. Being optimistic can encourage you to set bigger goals, but often this makes you unrealistic.

A realistic attitude relates to how your ability to achieve predetermined targets. Setting goals that are way above your own will only keep you feeling like a failure because you aren’t able to reach them.

2. Do not want to follow market trends and desires

Many retail businesses refuse to follow market trends and desires because they feel their products are the best or are stuck in their ideals.

Nokia had become the king of smartphones in the 2000s with Symbian OS being proud. Back then, when Google came with Android OS, there were many smartphone manufacturers like Samsung, Sony, HTC, etc. flocking to the operating system made by Google. But not with Nokia which prefers Windows Mobile OS.

The result? You can see for yourself how Nokia is today.

3. Resisting Digitalization

Nowadays everything is completely digital, so it’s no longer the time for you to use outdated ways of running a retail business. Apart from being for efficiency purposes, digitization will also help develop your retail business to the next level.

One of the common mistakes of the retail business today is that they still use a conventional recording system, both when in transactions and in recording stock items in warehouses. If this is the case, you may need to use special cashier software which generally has features for digitally recording transactions and updating stock items automatically.

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You also need to set up your retail business online. This allows you to take product orders online. You can work with online transportation service providers to deliver goods ordered by your local customers.

4. Forging Adverse Cooperation

In running a retail business, you will certainly always be in touch and work with other parties, be it suppliers, distributors, investors, or other forms of partnerships.

Cooperation relations in a business must be mutually beneficial for each party. If you suffer losses as a result of this cooperative relationship, you may be working with the wrong person or company. This will hold you back from growing your business.

5. Poor Location Selection

The retail business needs a strategic location. Granted, you can save about 30% if you rent in a less crowded place, but you will probably use this 30% to advertise to get people to your shop.

When choosing a location you also have to be careful, pay attention to how the traffic patterns there, the demographics of the surrounding population, see if you have competitors, and other factors that can have a certain impact on your retail business.

This is the discussion about 5 mistakes that must be avoided when running a retail business. For your business to grow, don’t forget to advertise through the Froggy Ads service, you can start by advertising your products so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target your desired marketing target and gives you many options to market your product.