How To Start A Brick And Mortar Business: 11 Steps For 2025

Dreaming of owning a shop, but not sure how to start a brick and mortar business? In-person stores are bouncing back fast, with customers eager for real experiences and face-to-face service.

This simple guide will walk you through each step—from creating your business plan and securing startup capital, to finding the right location and launching an amazing grand opening event.

Your exciting new adventure starts here!

Key Takeaways

Your business plan acts like a clear road map—it shows your product strategy, target customers, and money targets for at least three years ahead.

Line up funding to cover your store’s first full year, using personal savings, bank financing, SBA microloans, or finding investors who support your vision.

Pick your store location carefully by looking into the local population and pedestrian traffic—these factors help boost visibility and sales.

Before launching your business, secure all required paperwork—including your business registration, EIN, and special industry permits—to avoid delays later.

Check commercial leases closely, especially for hidden extras like CAM charges, which can quietly add up and strain your budget over time.

Develop a Business Plan

A man in his 30s is sitting at a messy desk, brainstorming business ideas.

A solid business plan works as your roadmap to success in the retail world. Your plan must include clear steps for growth, from startup costs to profit goals.

Define your product or service

A rustic wooden jewelry display holds handmade pieces in a cozy shop.

Your business idea begins with a clear product or service. Start by thinking carefully about your favorite hobbies or interests. Often, the things you enjoy doing most can inspire strong and profitable business ideas.

I opened my handmade jewelry shop because I loved crafting unique pieces during my free time. It’s that genuine passion that helps you push through those tiring, endless days!

Be clear about exactly what you’ll sell and how it helps your customers. Get specific about the features, pricing, and unique qualities that set your products apart. Women entrepreneurs often see great results by offering products that address gaps they noticed while shopping.

Your product should fix an issue or fulfill a specific customer need.

The best businesses come from solving problems you’ve experienced firsthand.

Clearly defining your product or service helps you manage inventory easily and shapes your entire physical storefront. Your offerings should stand out clearly—different from local competitors and online markets alike.

Think closely about how your items will appear in your store, or how your services will feel to customers. Imagine what would draw you personally into choosing your business over another.

An Atlanta premises liability lawyer once mentioned to me that clear product definitions even help lower business risks—you set customer expectations accurately, right from day one.

Identify your target market

A woman in her mid-30s takes notes and observes shoppers in a busy retail store.

After figuring out exactly what you sell, the next step is knowing who will actually buy it. Your target market shapes every single decision you make for the store—from products to location to advertising.

Yet lots of new retail stores skip this step, causing their businesses to flop. In fact, more than a third of start-ups close shop because they didn’t reach the right customers. Identifying a target audience means looking at age groups, locations, income levels, and how these people prefer to shop.

Interestingly, female entrepreneurs often shine at spotting market gaps others overlook.

Missing the mark here costs retailers serious cash. Every year, companies blow roughly $37 billion on ads that don’t connect with their intended customers. Social media gives you an easy way to learn exactly what your customers need and want.

Create clear customer profiles with details like habits, spending styles, age ranges, and hometowns. Talk casually with real folks around town about their shopping habits. Visit stores similar to yours—watch who shops, see what they buy, and note small details.

The clearer your picture of the people shopping at your brick-and-mortar store, the easier it’ll be to give them exactly what they’re after. This targeted strategy can win you loyal buyers right from the start.

Outline your business goals and strategies

Your business goals must be clear, easy to track, and specific enough to measure. Clearly outline sales, profit, and growth targets, then monitor them closely over time. Create financial goals that set a roadmap for the next 3 to 5 years.

I learned firsthand, through owning my first retail store, that unclear goals bring unclear results. Provide detailed financial projections, covering at least three years, so lenders or investors see that your plan is solid.

Effective strategies make your goals achievable. Think about ways to stand out from competitors, price your products smartly, and connect with your ideal customers. Your marketing plan should feature targeted social media campaigns as well as local ads that fit comfortably within your budget.

Keep in mind, a business plan works best as a flexible, adaptable guide—it will continually change as your retail store grows. Revise your strategies often, learning from successes and adjusting where needed in your store operations.

Secure Financing

The image depicts a middle-aged woman feeling overwhelmed while working on securing financing for her new business in a cluttered office.

Money matters when you start a brick-and-mortar business. You’ll need to gather funds for rent, equipment, inventory, and staff before you open your doors.

Assess startup costs

Opening a physical store involves thoughtful budget planning. You’ll need to monitor initial setup costs, along with ongoing monthly bills. Initial expenses usually include buying equipment, stocking inventory, and fees for business registration.

Ongoing monthly costs typically mean rent payments, insurance policies, employee salaries, and utility bills. Create a detailed list of everything you need, then research current, accurate prices.

Experts often suggest setting aside enough cash to cover at least 12 months of your expected expenses. Having this cushion protects your new business if sales are slow at first—which is pretty common in the beginning.

The budget must factor in necessary fixed assets, plus extra funds tucked away just in case unexpected costs pop up.

Now, let’s check out some financing options available to help cover these startup costs.

Explore funding options (loans, investors, personal savings)

Money brings your business vision to life. Before you launch your brick-and-mortar shop—carefully explore all funding options. Self-funding means tapping into personal savings. This route gives you complete control, but limits the speed you can grow.

Bank-issued business loans offer more funds upfront, but banks expect strong credit and a convincing business plan. If traditional bank loans are hard to get, microloans from the U.S. Small Business Administration offer friendlier terms for new business owners.

The right funding mix creates freedom to build your vision without crushing financial pressure.

Angel investors and venture capital firms can also step in with significant investments—but they will want company equity in return. Beyond cash, these investors often share valuable connections and practical advice.

Many women entrepreneurs build successful partnerships through networking events, where they meet potential backers face-to-face. Crowdfunding websites provide another useful way to secure money, while also testing customer enthusiasm for your product idea.

Ideally, your chosen funding approach will align neatly with your current needs, as well as future business ambitions. Now let’s figure out choosing an ideal location for your shop.

Choose the Ideal Location

An empty storefront in a lively urban neighborhood with colorful signs and large windows.

Your shop’s location can make or break your success. Pick a spot where your target customers live, work, and shop to boost your retail sales and foot traffic.

Research customer demographics

Customer demographics guide your choice of store location. I discovered this directly when opening my own boutique—understanding the local shoppers changed everything for me. Begin with gathering information about local customers—age ranges, income brackets, and shopping preferences in the neighborhoods you’re considering.

With this knowledge, you can confidently stock items that sell easily. Most local chambers of commerce offer demographic data detailing who lives and shops in specific areas. Picking the right spot means aligning perfectly with your ideal customers.

Take a careful look at competitor locations, too. Their store placements provide key clues about the most profitable customer types. Lots of business owners overlook this step, losing out on key details like parking needs, how busy foot traffic gets, and peak shopping times.

Understanding exactly who passes by each day makes your marketing efforts more effective. Doing smart demographic homework today saves major headaches over costly location errors down the road.

Evaluate foot traffic and accessibility

Foot traffic will either lift or sink your retail store—it’s really that simple. Before signing the lease on my first space, I spent months tracking the number of people walking by.

Ideal locations have a steady flow of your target shoppers passing regularly. Visit during various times, noting changes, to spot true patterns. Also, consider choosing a spot close to businesses appealing to your type of customer.

For instance, a clothing shop might flourish near a busy coffee shop filled with style-savvy women.

Accessibility matters just as much as a prime location. Make sure your store is easy to get to for everyone—think nearby parking spaces, clear sidewalks, and transit stops. Women pushing strollers and shoppers using mobility aids need hassle-free paths to your door.

Features such as wide entryways and ramps clearly show you value each visitor. Good visibility from sidewalks or streets further encourages walk-ins. Lastly, carefully review every detail in your commercial lease terms before signing anything.

Obtain Necessary Licenses and Permits

A cluttered office desk with paperwork, computer, and business license application guide.

Every brick-and-mortar business needs proper licenses and permits before opening doors. Your local government will require specific paperwork based on your business type, from health permits for food shops to special licenses for selling alcohol.

Register your business

Registering your business officially is a big moment—it’s your first step toward becoming a genuine business owner. To get started, select a legal structure that matches your goals and the risk you’re comfortable taking.

Common options include a sole proprietorship, LLC, or corporation, each offering different tax advantages and levels of legal protection. Most local governments expect you to officially register your business name.

You’ll also need to get an Employer Identification Number (EIN) from the IRS for taxes—think of it as your company’s personal social security number. An EIN makes opening a dedicated business checking account possible.

Your business registration isn’t just paperwork—it’s the foundation that protects your personal assets and establishes your brand legally.

Trademark protection can shield your unique brand name and logo from being copied by competitors. Although the trademark process can feel tricky, plenty of online resources and tools make it easier to follow each part step-by-step.

For extra guidance, local business formation services can walk you through filling out the proper forms and hitting submission deadlines on time. Your chosen business structure also determines your tax approach and the type of insurance coverage you’ll require to safeguard your retail property and inventory.

Apply for local permits

Local permits keep your physical business running smoothly. You’ll likely need a general business license—these can cost anywhere from $25 to $400, depending on your location and business type.

One time, I spent three whole weeks gathering paperwork, only to find out I’d overlooked an important form—ugh! You can avoid that hassle by making a simple checklist of all required permits from day one.

Most cities require a Certificate of Occupancy—usually about $100—before letting you officially open. This certificate shows your store meets safety rules to protect your customers.

Also, if your business uses a different name than your legal one, be sure to file a DBA (Doing Business As). DBA fees typically run between $10 and $100, based on where you live.

Depending on the products you sell, extra permits may be necessary. Food-related businesses often have to get approval from the local health department. Stores that play music must secure licenses from performance rights groups, like ASCAP or BMI.

For a full and detailed list of specific permits needed, reach out directly to your city clerk’s office. Permit approvals can sometimes drag on for weeks—it’s always better to start early to avoid delays.

Setting automatic calendar reminders for permit renewals can also help keep everything organized and stress-free.

Negotiate a Commercial Lease

A man in his 40s is reviewing a commercial lease agreement at a cluttered desk.

A good lease can save you money and protect your store for years. Read the fine print on tenant rights, rent increases, and subletting options before you sign.

Understand lease terms

Your commercial lease lays the foundation for your store’s success. I once rushed into signing a five-year lease without carefully going through the details—and ended up dealing with unexpected rising CAM fees, which strained my finances.

Base rent is only one part of your total monthly expense, so dig into every cost clearly laid out in your agreement.

Pay special attention to lease duration and available renewal options, ensuring they align with your business goals. Many landlords provide Tenant Improvement allowances to offset remodeling costs.

These TI allowances can potentially save your business thousands in upfront costs.

The details in your lease agreement today determine your business freedom tomorrow.

Common Area Maintenance (CAM) fees often catch first-time business owners off-guard. CAM charges cover upkeep expenses for shared areas, like parking spaces or hallways. Before signing, request a clear breakdown—in writing—of exactly how these fees are calculated and billed.

Your lease directly shapes daily operations, expenses, and long-term earnings. Women business owners frequently secure more favorable lease conditions simply by asking detailed questions about each term.

Your rental agreement can influence everything, from branding flexibility and signage to where you set up your checkout system. Take enough time to carefully review every clause—or invest in hiring a professional to walk you through it.

Plan for long-term commitments

Once you understand the basics of lease terms, it’s helpful to plan ahead for the future of your retail space. Signing a long-term lease can save big money for your brick-and-mortar business.

Many landlords offer lower rents to tenants ready to commit for several years. By signing a multi-year contract, you lock in today’s prices—and avoid unexpected rent hikes later, protecting your profits.

Before signing any commercial lease, it’s always smart to get some legal advice. Lawyers familiar with retail leases can catch issues you might overlook. They can clearly point out the differences between gross and net leases—differences that directly affect your monthly costs.

Gross leases bundle most expenses into one simple monthly payment. Net leases separate your monthly rent from additional costs like maintenance fees, property taxes, and insurance charges.

Good planning upfront can save you a lot of cash, and help you avoid headaches along the way.

Purchase Equipment and Supplies

A man in his thirties browsing for point-of-sale systems and office supplies in a store aisle.

Setting up your store needs the right tools and stock to run well. You’ll need to make a list of must-have items like POS systems, cash drawers, and basic supplies before you open your doors.

Identify essential tools and inventory

Your store needs the right tools to run without issues. First things first—get a reliable point-of-sale system that keeps track of sales and inventory. Good POS software helps you spot sales patterns, making it clear which products need restocking.

Every brick-and-mortar business also needs a sturdy cash drawer and a dependable credit-card processing device. You might even want equipment to accept contactless payments like Apple Pay or Google Wallet.

Before opening day arrives, draft a thorough equipment list and compare prices carefully to get great deals.

Choosing the right products helps meet customer needs and boosts your profits. Your target customers’ tastes and preferences should guide your inventory decisions. Smart inventory handling keeps you from running low on popular products or holding onto too many slow-moving items—both of which drain your wallet.

Keep an eye on top-selling items and sluggish inventory. Sales data lets you make smarter buying decisions for your store, reduces waste, and helps cut down shoplifting risks.

Set up your space for functionality

Once you’ve chosen the right tools and products for your store, setting up a smart layout is key. A thoughtful design helps both you and shoppers have an easy experience. Shoppers notice the placement of each product—from the moment they walk in the door until checkout.

I realized this the hard way when opening my first store. Poor placement choices slowed down my sales for months. Good store design puts high-demand items right at eye level, exactly where customers can easily spot them.

Keep aisles clear, so visitors move freely through the space without frustration.

AI-driven software can now track top-selling products in each store section, and help ensure these items get prime shelf spots. Set up your checkout spot in a clear and obvious area, keeping the process quick and easy.

A modern payment system that accepts multiple card options is also essential.

To stand out from online shopping, create unique areas in the store where folks can test products or explore new activities. Special experiences inside the store encourage visits, build customer loyalty, and turn browsers into regular buyers.

Hire and Train Staff

A small business owner conducts hands-on training for a diverse group of employees in a rustic café setting.

Your team makes or breaks your brick and mortar shop. You need staff who share your vision and can deliver great service to your customers.

Define roles and responsibilities

Clear job roles make your business run smoothly and help employees know exactly what to do each day. To get started, write simple and clear job descriptions. Include main tasks, required skills, and who each employee reports to.

Defined roles prevent tasks from overlapping, avoiding confusion if issues arise. Many women business owners notice clearer roles create smoother operations and happier employees.

Always check current state employment laws before setting up job roles. Clearly list each person’s duties, needed skills, and expected outcomes, using easy-to-follow language. Hand out a printed copy of these descriptions to each staff member during their training period.

Doing this helps your brick-and-mortar shop run more efficiently and makes workers feel confident in their jobs. Solid role definitions build a stable foundation for your retail business, enhancing customer satisfaction along the way.

Provide training for excellent customer service

Training your employees to provide excellent customer service creates a solid foundation for your retail store. Your staff needs key skills, like empathy and active listening, to tackle customer issues calmly and effectively.

I’ve noticed workers who genuinely pay attention to customer concerns build loyalty and keep shoppers coming back for more. Hold periodic training sessions that adapt to shifting customer wants, and use CRM tools to track each customer interaction—this helps you deliver better service each time.

Customers quickly notice when your team serves them with genuine care. Proper training brings repeat shoppers and positive reviews. Good customer experiences often lead directly to upbeat social media posts.

These posts attract new shoppers faster and cheaper than paid advertisements. You can leverage your team’s improved customer skills further by highlighting their excellent service through targeted marketing campaigns.

Create a Marketing Strategy

A man and woman are brainstorming marketing ideas at a local cafe.

Your marketing plan needs to grab local shoppers while building your online presence. Smart ads on Facebook and Instagram can target nearby customers, while flyers and local events connect you with the community face-to-face.

Social media gives brick-and-mortar stores a powerful way to connect with ideal customers, without spending big money. Platforms like Facebook, Instagram, and TikTok let you show off new products, share exciting store updates, and interact directly with local shoppers.

Try posting appealing photos of merchandise, short clips from store events, or fun behind-the-scenes stories to keep customers interested. Local advertising efforts such as newspaper ads, neighborhood bulletin boards, or sponsoring nearby community events can boost these digital connections.

Savvy small business owners mix online marketing and traditional strategies to get the most out of their efforts. Create an easy-to-follow content calendar—this helps plan posts across multiple platforms and track which ones attract local visits.

Also, consider radio ads on local stations, flyers placed in nearby shops, and collaborating with other neighborhood businesses to spread the word. This balanced mix of digital and in-person marketing makes sure customers notice you, whether they’re browsing their smartphones or strolling through town.

Plan promotions for your grand opening

Smart promotions generate excitement around your grand opening. Offer appealing deals, like discounts on opening day, free gift bags, or buy-one-get-one specials. Hosting activities tailored specifically for your audience makes guests want to stay longer.

To boost visibility, partner with local influencers who connect naturally with your female customer base. Facebook, Instagram, and TikTok posts, shared weeks before the opening, can reach thousands of newcomers to your store.

At my most successful store kickoff, we even arranged a fashion show—it attracted three times more visitors than we expected.

Community partnerships build goodwill and raise your brand’s local profile. Teaming up with nearby businesses or charities helps cross-promote both parties. Investing in a reliable point-of-sale system tracks the effectiveness of each promotional strategy—so you easily repeat what’s working best.

Start digital marketing at least a month before the grand opening date for maximum exposure. Next, we’ll take a closer look at how the business environment could shift by 2025.

Plan a Grand Opening Event

A woman and man in their mid-30s discussing promotional materials for their upcoming business grand opening.

Your grand opening shapes the future of your business—make sure you nail it with great deals that pull in crowds and create local excitement.

Keep these quick tips handy:

Offer big discounts or buy-one-get-one deals to grab attention and convince people to try your products.
Host fun giveaways or raffles, making visitors excited to stop by and spread the word.
Plan kid-friendly activities like face painting or balloon animals, enticing local families to attend.
Partner with popular local influencers or businesses to boost your visibility and credibility in the community.
Use social media to build anticipation—share sneak peeks, countdowns, and behind-the-scenes glimpses.
Set up eye-catching signage or decorations outside your store, capturing attention from passersby.
Organize live entertainment, like local bands or artists, to create a lively atmosphere.
Give away branded freebies such as tote bags, pens, or stickers to keep your business name fresh in people’s minds.
Provide tasty snacks and drinks to make sure guests stick around longer and explore your offerings.
Encourage customers to snap and share event photos by setting up fun photo booths or selfie spots.

Attract customers with special offers

Special promotions grab people’s attention and draw them into your store. Giving away free gifts with a purchase can do wonders for new shops. You could provide a small gift that fits naturally with what customers buy—like a clothing boutique giving away a scarf on purchases over $50.

Contests are another great tool to boost excitement. Ask customers to drop their business card into a bowl for weekly prize drawings—it’s an easy way to gather contact details and stir up interest at the same time.

Social media helps you quickly spread the word about your deals to the right audience. Work closely with local influencers who appeal directly to potential buyers. These partnerships raise your shop’s profile rapidly and easily.

Build early excitement online with special pre-launch access to products before your physical store’s opening day. Placing a countdown timer on your social pages ramps up the excitement even more.

With the right point-of-sale system, you can even track which promotions bring in the biggest crowds, making it easier to create winning offers in the future.

Build community awareness

Local support is the backbone of any brick-and-mortar shop. Hosting community events builds strong ties with neighbors and future customers. You can organize workshops, charity drives, or family fun days that reflect your brand values.

Many women entrepreneurs grow visibility by joining forces with local social media influencers, who already have trust within the community. These partnerships usually cost less than traditional ads and foster genuine connections.

Engaging activities help target customers see your products or services at work. For instance, a cooking store could offer free weekend classes—maybe teaching a popular recipe. A clothing boutique might host styling sessions, complete with free snacks and drinks.

How Will Starting a Business Change in 2025?

A woman in her mid-30s is seen working with a tablet and point-of-sale system in a modern store.

By 2025, business owners must excel in both physical and digital spaces. The outdated idea that brick-and-mortar stores can’t compete online no longer holds true. Savvy retailers will adopt modern point-of-sale systems, linking in-store sales directly to their digital presence.

After launching my first store last year, I quickly realized customers still value real-life shopping experiences. Shoppers prefer seeing products up close and chatting with actual people.

Your plan should blend a solid in-store presence with digital strategies like social media marketing, helping you connect effectively with target customers.

Financial planning will also evolve. Funding options for businesses will offer increased flexibility, including new loan products specifically created for women entrepreneurs. Anticipate rising rental expenses, as prime retail locations become harder to find.

My friend Sarah lowered her startup costs by teaming up with another, complementary business to share a retail space—this strategy benefited both stores. Insurance premiums will probably rise too, so setting aside funds for reliable coverage from the beginning is smart.

Stores succeeding most will actively cultivate local relationships while providing smooth online shopping experiences. A smart balance of digital convenience and community-focused retail can position your business well, making clicks and bricks equally valuable.