30 New Business Ideas: Retail Stores

The vast world of retail offers many opportunities for budding entrepreneurs to make their dent—but you shouldn’t take the decision to start a new retail business lightly. About 84% of retail businesses survive their first year, according to an analysis of Bureau of Labor Statistics data by the Commerce Institute. But only about 42% survive 10 years.

 

While a retail business often requires little to no educational background or training, startup costs are also often higher than what you’d encounter when starting a service business—you may need to lease a storefront and buy inventory. You may also need permits, especially if you’re making or selling food.

 

So, it’s important to find the right location and the best type of retail business for that spot. Here are 30 types of popular retail businesses to consider and what you need to know about starting them:

 

Food trucks continue to proliferate, offering great chefs a chance to shine without dealing with the headache of a brick-and-mortar location. Is there a particular food or cuisine that isn’t being offered yet in your area – one that you might be able to provide? You’ll need the culinary and food service expertise to serve it up safely. Stake out prime locations where the parking lot owners, permitting authorities or storefront owners are willing to let you park at a reasonable cost. (Hint: Find local businesses to partner with, such as local breweries with a taproom.) 

 

Startup needs: Strong restaurant and culinary experience; state and local licensing; capital to buy your truck and equipment; great locations

 

Read the late Anthony Bourdain’s book Kitchen Confidential if you want an enjoyable, humorous take about how fraught with danger this business venture can be. Location is key—and you better have awesome food. Even if there are good odds that the restaurant will be packed at certain times and days, how are you going to keep your business going throughout the week? To avoid flopping right away, consider skipping the flashy grand opening and do so quietly instead. This will give you time to get the kinks worked out, so you don’t get hurt by negative reviews. Also, read tips on how to protect and strengthen restaurant profitability.

 

Startup needs: Culinary skills; necessary licensing; strong business management skills; location

 

Many people have childhood photo albums, videos and cassette tapes that they’d like digitized for long-term preservation and access. A business that can archive all those old memories in a modern way—such as putting them on a secure cloud platform—can do well. It’s important to build trust with your potential customers and assure them you’re keeping their beloved photos and videos safe and secure. It’s important to have liability insurance in case anything gets damaged or destroyed.

 

Startup needs: Digital archiving equipment, such as scanners and software; liability insurance

 

Buying secondhand is trendy, so opening a store that sells used wares—whether clothing, housewares or artwork—can be a winning business. Given the growing number of thrift stores in recent years, it’s also important to consider how you’ll differentiate your store from all the others. Will you sell people’s stuff on consignment, giving them a cut of the sale price? Or will you buy goods from people upfront and hope you can sell it for a pretty markup? Also, make sure you locate your thrift store wisely. Areas dense in retail and near places with lots of young adults or families with young kids can be a good bet.

 

Startup needs: A business model that encourages people to sell you their stuff; a great location

 

Starting an online-only store is less expensive because it doesn’t require a physical storefront and all the costs that come with it. But on the flipside, it can be hard to stand out in the sea of retailers fighting for visibility online. Starting an online retail business also requires different expertise than a traditional brick-and-mortar store. You’ll still need to manage inventory and invoicing, secure an internet domain name, build a user-friendly website and market your products online. You’ll also have different customer service needs (such as handling website technical issues), marketing practices and logistics concerns (think shipping and handling). Test the waters by trying to sell a few products online through third-party sites, such as Etsy or Amazon, and if your sales take off, consider launching your own website. 

 

Startup needs: Capital for inventory; expertise in online marketing, a good internet domain name; expertise in website management and retail

 

Providing top-notch customer service and extra services can help an independent paint and wallpaper store stand out from the competition. Once you’ve found a winning location, focus on carving out your niche. Will your primary customers be homeowners or professional painters and wallpaper hangers? Will your paint be high-end or lower-priced? What services can you provide that will give you a leg up over other retailers selling paint in your area? Having expertise or background in the paint and wallpapering industry is a huge advantage. 

 

Startup needs: Great location; a niche; preferably experience working in the industry

 

Competing against all the big-box home improvement stores today takes confidence—and some smart planning. You’ll first need to find a location where a hardware store is in great demand and have enough capital to take on a large inventory. Consider how you’ll differentiate yourself from the competition – whether that’s by offering above-and-beyond customer service or unique services or products. And make sure you know what your customers want from their local hardware store. For example, people who live in urban areas buy vastly different items than those in rural parts. 

 

Startup needs: Right location; market knowledge; capital for inventory

 

It’s the world’s oldest entrepreneurial profession, going back to the dawn of civilization. And great grandpa was right: It really is hard work. Still, you don’t need a huge amount of land if you’re able to loop into local farmers’ markets, community-supported agriculture (CSA) organizations, natural food co-ops or other distribution channels. Urban farming is all the rage, in fact. The key is not to grow what everyone else is growing. Can you establish a niche for yourself? 

 

Startup needs: Green thumb and agricultural know-how; willingness to work hard; land; a niche; distribution channels

 

If you have an art or design background and enjoy retail, this might be the right opportunity. You may want a storefront, but you’ll definitely need space for equipment to make items like business and greeting cards, T-shirts and coffee mugs. You can learn the trade by working for another print shop before starting your own. This business may require numerous licenses and permits, as well as adherence to regulations, especially if you’re using industrial equipment and chemicals that produce wastewater or airborne contaminants. 

 

Startup needs: Printing equipment; various permits and licenses; knowledge of local regulations

 

Understanding the landscaping practices and needs of your customers is essential when starting a garden store. You should know, for example, what types of plants and trees grow well—and not so well—in your region and when to fertilize. Horticulture courses at local colleges can give you the necessary background, as can working at another local nursery or garden store. Make sure to find a prime location for your store, ideally not too close to your competitors. 

 

Startup needs: Great location; inventory; knowledge of local horticulture and landscaping

 

The term “general store” might make you think of old-timey retail operations, but these variety stores have made a comeback, especially in popular tourist areas. When done right, they also double as gift stores. Among the biggest challenges will be finding a location where locals and visitors will embrace such a store. You’ll also need to find a product mix that will win over your customer base and create an attractive ambiance to draw in foot traffic. 

 

Startup needs: Prime location; inventory and retail expertise

 

Nutritional supplements have been growing in popularity in recent decades. How can you differentiate your store from all the other supplement retailers (both online and offline) and major chains such as GNC? Or do you just want to franchise with them? (GNC estimates you’ll need at least $240,000 in liquid assets to start a franchise.) 

 

Startup needs: Nutrition courses and expertise; business management and customer service skills; up-front capital

 

If you love candy or have a prize-winning fudge recipe, this might be a sweet opportunity. Confectioneries are viable businesses in many communities. But you have to find the right location for your shop—which will probably do best in areas with tourists and families with children. As with any food-selling business, you also need to familiarize yourself with the local licensing and permit rules. If you’re not selling candy you make yourself, check with candy distributors to make sure you can mark up their prices enough for a viable business model. 

 

Startup needs: Right location; may require local licenses or permits

 

You can sell anything – from makeup to protein shakes – from the comfort of home by joining a direct sales (also called multilevel marketing) company. You pay a startup fee, which often covers the purchase of inventory and sales materials, and then receive commissions for everything you sell. You may also get additional commissions from new sales reps that you recruit. Success with direct sales typically requires persistence. Many direct sales reps now use social media to get the word out. 

 

Startup needs: Fee paid to direct sales company; love of public speaking/sales

 

Creating delicious cakes or pastries in your home oven is a nice first step, but building a successful bakery retail operation is a whole other challenge. Consider carving out a niche, whether that’s baking wedding cakes, pastries or bread. Then, work on perfecting your recipes. That can mean entering them in local baking competitions or conducting taste tests (with people other than your friends and family). You’ll want to find a location where locals will embrace an independent bakery and are willing to spend more than $5 on a loaf of bread.

 

Startup needs: Right location; great recipes; may require local licenses or permits

 

First, consider whether your community needs another auto supply retailer. The market may already be saturated. And keep in mind that many mechanics and consumers today buy auto parts online. Once you’ve established that there’s demand, figure out how you’ll stand out in the market. It’s hard to compete on price, especially with the proliferation of online auto parts retailers. So you may have to provide extra services—such as installation—or better customer service. Before you jump in, gauge interest in your business by talking with mechanics in your area. 

 

Startup needs: Right location; capital for buying inventory

 

If you love helping people coordinate outfits, you may have considered starting a clothing store. But it’s important to find a niche that will give you an advantage in today’s crowded apparel retail arena. That could be selling a specific type of athletic wear or specializing in unique, high-end brands. Whatever you choose, starting a clothing store is risky. You’re most likely to succeed by providing quality service and developing a competitive advantage. You’ll need to buy inventory and find a great location near your target customers. Having retail experience could be particularly useful. 

 

Startup needs: Great location; capital for buying inventory

 

This isn’t a cheap endeavor. You’ll need to buy inventory—which could mean spending thousands on just one sofa or dining table. And you’ll have to find a prime location. Ideally, this will be near residential areas with houses that need furnishings, while figuring out the most effective ways to advertise in your area. Some independent furniture stores have built a loyal following by partnering with U.S.-based artisans who build furniture themselves. You could also consider buying a franchise of an established furniture or home decor retailer. This will provide you with name recognition and may help you control costs while you get started.

 

Startup needs: Prime location; capital for inventory

 

With today’s reliance on ecommerce, shipping is a big deal. Stores that specialize in helping people find the best method and price for shipping packages can do well. Some businesses also help people return items to online retailers or provide a drop-off site and storage locker for items ordered online. That said, there are already lots of competitors in this space, so it’s worth considering what your competitive edge would be. Some shipping businesses also offer related services, like notary, passport photos and employer verification.

 

Startup needs: Equipment and systems for providing shipping services; shipping products inventory

 

With so many “smart” devices, including smartwatches, smartphones and smart doorbell systems, a store that sells and repairs such devices could be in-demand. Make sure your prices are competitive with all the other retailers selling smart devices and identify your value proposition: Can you repair devices and replace batteries for significantly less than someone would spend to replace those gadgets altogether? 

 

Startup needs: A great location, equipment and supplies needed to repair various devices; inventory

 

Here’s the question you should be asking with this type of business: Why should someone buy from you instead of another store, either offline or online? While it may be tough to compete on price against online retailers, you can offer customers more personalized service and hands-on expertise than what they’re unlikely to get online. And even better if you can throw in value-added services, like home audio and theater TV consultations, local delivery and set-up and repairs.

 

Startup needs: Expertise on the latest home entertainment technologies; knowledge of optics and acoustics; strong customer service and sales skills

 

Even major national book retailers have failed in recent years due to the growth of online competition and e-books. So if you’re going to start a bookstore, you need a smart business plan. Take a page from successful independent book retailers around the U.S. and become a beacon in your community. Host readings from local authors and sell titles that members of your community tell you they want to read. You need to be more than a place that just sells books; you need to convince customers there’s a good reason to buy from you rather than online booksellers. The American Booksellers Association provides tools, advice and inspiration for independent booksellers. Bookshop.org also supports independent book stores by allowing customers to buy books online and provide proceeds to the independent bookseller of their choice.

 

Startup needs: Great location; inventory

 

The proliferation of sporting goods offered by big-box retailers has made it hard for smaller operations. Being a specialist in certain types of sporting equipment—think skis or soccer gear—can help you beat the competition. Think about offering extra services and perks for customers to add value to your business, such as personalized fittings, classes or a loyalty program. 

 

Startup needs: Right location; capital for inventory

 

Be the place where every local musician dreams of buying and upgrading their instruments. This means not just selling instruments, but also selling sheet music and books, offering instrument repair and tuning, lessons and community events. Locate your business in a place with a large enough customer base—such as near a high school or junior high with a band or orchestra—and find good suppliers. Develop a rapport with local music educators and church music leaders, and determine in advance whether you’ll sell new and used instruments or just new ones.

 

Startup needs: Right location; capital for inventory

 

Hobbies are expensive—and often, so are all the tools to pursue them. Starting a hobby supply store means buying large amounts of inventory, so gain expertise in the retail industry beforehand. It makes sense to focus on a niche hobby that you’re personally interested in, whether that’s knitting or building model cars. You could start an online store, but brick-and-mortar retail space provides you with a meeting place for hobby enthusiasts and allows you to host classes and other events to market your business. 

 

Startup needs: Product inventory; retail expertise

 

Photography has radically changed over the years, with much of the work moving from film to digital in recent decades. To start a photography store, you’ll need to be up-to-date on the latest technology, software and advances, while also being mindful of the old-school technology still valued by some. You’ll also need to have a deep network in the local photography community – both professional and amateur. It would help to offer additional value, such as repair services, consulting and more. 

 

Startup needs: Strong expertise and love of photography; the latest equipment and editing software

 

Personalized service is key to selling luxury goods. Consider how to provide your customers with more customized service than they might get at national jewelry retail chains. This may include custom-setting rings and necklaces, jewelry repair and cleaning services, or special events where customers can bring in gemstones and other family heirlooms to find settings. You’ll need strong security for protecting your inventory and may want to hire sales personnel with jewelry experience. Brush up on your knowledge of gemstones, pearls and diamonds by taking courses from the Gemological Institute of America. 

 

Startup needs: Right location; capital for inventory; expertise in gemstones and jewelry

 

Flower shops grow their business in a variety of ways, from decorating weddings and funerals to selling arrangements on holidays such as Mother’s Day and Valentine’s Day. You should have a passion for flowers and plants and know how to market your operation effectively, including online via social media and search engine optimization. Be prepared to make upfront investments – such as coolers – to store your arrangements and floral delivery vehicles. 

 

Startup needs: Prime location; capital for delivery vehicles and floral arrangement storage equipment

 

Gifts are discretionary purchases, so gift stores may have to adapt to various economic environments. Independent stores can fend off competition from major retailers by offering unique items, personalization (such as engraving services) and goods at a wide variety of price points. Hosting special events, such as catered shopping parties for loyal customers, can draw foot traffic during key seasons. 

 

Startup needs: Great location; capital for location and inventory; retail store management experience; expertise in crafts a plus; market research experience

 

A niche can be a smart way to go with this type of business. Are you planning to sell to outdoor enthusiasts or amateur astronomers? Or are you selling to particular industries, in which technical sales experience would be helpful? No matter what, you need to have enough expertise that you can provide some kind of added value to your customers. 

 

Startup needs: Strong expertise in the latest optical instruments and lenses; technical salesperson experience may be a plus

 

When you start a retail business, you’re often taking on a lot of financial obligation. It’s critical to do your research and know what you’re getting into before you sign a lease agreement or get too deep into debt.