Retail Business Owners

Although retail business owners sell a wide variety of products, from apples to automobiles, the basic job responsibilities remain the same. Simply stated, the retail business owner must do everything necessary to ensure the successful operation of a business.

There are five major categories of job responsibilities within a retail establishment: merchandising and buying, store operations, sales promotion and advertising, bookkeeping and accounting, and personnel supervision. Merchandising and buying determine the type and amount of actual goods to be sold. Store operations involve maintaining the building and providing for the movement of goods and personnel within the building. Sales promotion and advertising are the marketing methods used to inform customers and potential customers about the goods and services that are available. In bookkeeping and accounting, records are kept of payroll, taxes, and money spent and received. Managing personnel involves staffing the store with people who are trained and qualified to handle all the work that needs to be done.

The owner must be aware of all aspects of the business operation so that he or she can make informed decisions. Specific duties of an individual owner depend on the size of the store and the number of employees. In a store with more than 10 employees, many of the operational, promotional, and personnel activities may be supervised by a manager. The owner may plan the overall purpose and function of the store and hire a manager to oversee the day-to-day operations. In a smaller store, the owner may also do much of the operational activities, including sweeping the floor, greeting customers, and balancing the accounting books.

In both large and small operations, an owner must keep up to date on product information, as well as on economic and technological conditions that may have an impact on business. This entails reading catalogs about product availability, checking current inventories and prices, and researching and implementing any technological advances that may make the operation more efficient. For example, an owner may decide to purchase data processing equipment to help with accounting functions, as well as to generate a mailing list to inform customers of special sales.

Because of the risks involved in opening a business and the many economic and managerial demands put on individual owners, a desire to open a retail business should be combined with proper management skills, sufficient economic backing, and a good sense of what the public wants. The large majority of retail businesses fail because of a lack of managerial experience on the part of owners.

Franchise ownership, whereby an individual owner obtains a license to sell an existing company's goods or services, grew phenomenally during the 1980s but tapered off during the Great Recession that began in 2007. Franchise agreements enable the person who wants to open a business to receive expert advice from the sponsoring company about location, hiring and training of employees, arrangement of merchandise, display of goods, and record keeping. Some entrepreneurs, however, do not want to be limited to the product lines and other restrictions that accompany running a franchise store, or to split their profits with the franchise company. Franchise operations may still fail, but their likelihood of success is greater than that of a totally independent retail store.