Five Fatal Mistakes for Small Retailing

So if you're not prepared to commit a large portion of your life, at least in the beginning, perhaps you should consider working part time at Wal-Mart.

5. Neglecting customer service: This may be the biggest cause of retail failure that I've observed. Some retailers think that customers are there for their convenience, not the other way around. I've seen retail businesses fail because they were located in inconvenient locations and because they didn't accommodate their business hours to customer needs. If you're targeting working people, for example, you probably won't succeed if you open at 10 and close at 3. One store I know of was often closed during published business hours, and the owner seemed unaware that such practices alienated customers. Another retailer located a store in a building that was convenient (and cheap) for them, assuming customers would seek them out. They didn't!

The other major sin in this category is failing to treat all customers with courtesy and respect. I'm constantly amazed at the treatment customers receive from retail employees. Things as basic as not greeting customers when they enter the store, offering help in merchandise selection, and ignorance about the store policies and stock are commonplace occurrences. This ain't rocket science! Train your employees -- and yourself -- on the basics of customer courtesy and service.

Although avoiding these five fatal mistakes won't ensure retailing success, committing them will surely bring you closer to the brink of failure. There are so many risks and pitfalls in today's rapidly changing marketplace, it makes sense to increase your odds of success by avoiding them.