Many companies have expanded from brick-and-mortar operations to offering only online stores that can be used to purchase products and services. It’s a huge sector of the economy and has been growing rapidly since the introduction of the internet.
However, what if you wanted to do the opposite? Instead, you could evolve from an online-only operation to also having brick-and-mortar locations. This too can lead to increased profit. Still, there are serious pitfalls you need to avoid. Here are four things to consider before making this transition.
How Niche Is Your Business?
The great thing about the internet is that it gives you access to millions of people you wouldn’t have access to otherwise. This includes consumers with extremely specialized interests. While you may be able to find enough of these individuals online to make a profit, achieving the same success in one geographic location may be much more difficult.
Will You Appeal to the Local Customer Base?
Similarly, you also need to ensure that you have the ability to actually appeal to the consumers in that locality as well. Your store may be a hit online with shoppers that live in Manhattan. However, if you start a brick-and-mortar location in Rapid City, South Dakota, the consumers there may find your New York-centered branding and marketing off-putting.
Can You Afford All the Costs Involved?
The most significant advantage online stores have over brick-and-mortar stores is the elimination of a lot of overhead expensive and startup costs. Obtaining a building that consumers will actually enter can be much more difficult than finding warehouse space. You will also have to be able to afford all the other expenses required to maintain that store like utilities, rent, and much more.
Do You Have the Management Skills?
Operating a brick-and-mortar store takes distinctly different management skills than managing an online store does. Customer service, for one, will often be face-to-face. You will also have to recruit and train employees that will work with customers directly. You need to ensure you are up to this task or your brick-and-mortar store will flounder as a result.
Just because you are successful with an online business does not necessarily mean you can translate that success to brick and mortar. However, there is still the possibility you could make a fortune by making this transition with your company. If you think brick and mortar can work for you, consider obtaining construction management services and other services that can help you plan for your new stores.
Guest author, Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball. @LizzieWeakley