4 Steps to Creating a Retail Brand That Can’t Fail
The idea of creating a foolproof business in any industry seems a bit far-fetched because everyone has that inner doubt that won’t let them 100% believe in the inevitability of their own success. There’s always the question of whether some unforeseen factors or problems might spring up and completely derail your entire business plan or model. While there will always be things that can go wrong, taking certain steps can, in fact, protect you from the vast majority of scenarios that might cause your brand to fail in the sense that it goes out of business completely. With that said, here are four steps that will make almost any retail brand failproof:
Base Everything Around Great Design
Consumers make most of their decisions based on visual cues, so ensuring your product looks great and is well-packaged should be your very first priority. Ironically, in today’s world of ubiquitous clickbait, the packaging or external branding that represents a product or company can actually be more important than the appeal and functionality of the product itself. As a result, wise entrepreneurs are collaborating with package design and production experts like The Packaging Lab to ensure that their initial investments go towards creating a great looking brand.
Create a Backup Financial Plan
Of course, the number one reason why a product would fail is due to the inability to continue covering operating expenses with the revenue that’s being generated. Of course, if a product literally is no longer profitable to produce and distribute, then it can no longer continue to be sold on the open market. With a backup financial plan in place, you can ensure that even in a worst-case scenario, you’d still have enough funds to recuperate from losses and rethink your game plan before absolute bankruptcy hits.
Establish Sustainable Budgets
Once you have a solid backup plan in place, preferably with a generous sum set aside as an emergency funding reserve, the next step in fail proofing a retail brand is to create a strong financial foundation through the development of highly sustainable budgets. That simply means that you’re creating a situation in which the operating expenses will never be more than the income of the company. Initially, that may mean that you’ll need to start slowly and take a gradual approach to scaling up.
Prioritize Investments — Put Marketing and Branding First
Finally, now that you have a great looking product, a backup plan, and a solid budget, it’s time to start making strategic investments that will help you with brand growth. Of course, the opposite of growth is stagnation, which leads to the collapse of most startups. When you’re not an established brand yet, you can’t afford to sit on your hands while the competition aggressively takes what could otherwise be your market share. Thus, marketing and branding expenses should be considered the highest priorities when determining where the brand should allocate its first investments.