Retail, defined as “the sale of goods to the public in relatively small quantities for use or consumption rather than for resale”. Most people simply call it a buying and selling business. This usually means you will be buying products in bulk (10 or 100) from a wholesaler and reselling single items. However this can involve any quality, product food or anything, new or used.
This is the business that you can start with the least amount of money and least amount of skill. Buy for R1, sell for R2. Anyone with even the most low level of education or maths literacy can and many do succeed in this business. But is it that easy?
You still need to have the right product at the right price at the right place to be successful. Right place can be a lot of things, it can be the spaza shop closest to your house, but it can also mean walking or driving a bit further to go drink at a liquor outlet that has a seating area or has a jukebox even though there are liquor outlets closer to your house.
You look at your bird-in-hand and affordable loss:
Who you are, what do you know, who do you know and of course the money you have at your disposal.
You have nothing, no money: if you haven’t figured you need some money to start a retail business. If you have no money look at starting a recycling business to get money to start retail.
If you know nothing and know nobody and have very little you can use this guide below:
What is your bird in hand/affordable loss? Let’s say R100.
You need to “turn” that R100 over in a short enough times to make the whole endeavour worthwhile and then do it again and again and again, outstripping all other expenses.
To turn that R100 into R200:
- You can buy something for R1 and sell it for R2 but you have to do that 100 times.
- You can buy something for R5 and sell it for R10 but you have to do that 20 times.
- You can buy something for R10 and sell it for R20 but you have to do that 10 times.
- You can buy something for R20 and sell it for R40 but you have to do that 5 times.
- You can buy something for R25 and sell it for R50 but you have to do that 4 times.
- You can buy something R50 and sell it for R100 but you have to do that twice.
- You can buy something R100 and sell it for R200 you have to do that only once.
The next question for each point is:
How long will that take you to sell? How much do you need to sell & Do you have the sales channel to support that sales volume?
If you are making and selling R2 packets of sweets that cost you R1 to make and have 1000 students walk past your gate every day going to school you might have a business on your hands. But if you only have few people walk past your place then you cannot make R1 profit at a time.
However if you have 1000 students walk past your house every day you cannot be selling something that costs R200 becasue how many students have that money to spend?
When it comes to more expensive stuff there may be additional questions such as do you have the knowledge to sell it. But I will leave it at that for now, it is ridiculously easy enough to follow. If you have any more questions ask in community.