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Risk in running a departmental store

 Whenever, there is risk, there is a possibility of making profit. Like other business, there is some risk inherent in running a departmental business. Some risk can be avoided by carefully monitoring however some risk can't be avoided but can decrease it's severity. There are also different kind of risk in sense of damage, financial, health etc. Some risk are given below which should be considered before running a departmental store. There risk in running a departmental store has the potential to completely devasted the business.  1. Physical Theft: The store manager or the owner should aware that theft can be a problem to the business. This risk can be avoided by putting surveillance cameras, securities. 2. Fire: Hazardous items inside the departmental store should be avoided. In case of fire, it can bring extreme loss to the business. Hence safeties like water circuit breaker, fire extinguisher should be keep inside the store in an easily assessable place. 3. Payment default
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How to run a Departmental Store Business?

     Running a business may be difficult at the beginning. However, after you become familiar with the business, nothing can stop you from making the profit. Like other business, looking for the capital is one of the most difficult problem. If you are planning to open a big departmental store business, you can do a partnership business. But if you are going to open a small or rural departmental store, you can ask to friends or family as an leverage.

To open a departmental store business you need the following steps:

1. Figure out the location and size: This is one of the most important step. It is the market location which reflects the profit of the business. If possible carry out a survey on how many consumers are there in the location.

2. Focus on the strategy to stand out among the competitors: Competition is one of the factor that need to consider. Various strategies like discounting, cashback, seasonal sales, holiday sales can be adopted to stand out among the competitors.

3. Find suitable agent who can supply the the inventories: You can directly go trade with the wholesale retailers. However sometimes they can be a problem if the wholesale retailer may not agree to accept return of expiry products. There are many agencies who supply the inventories.

4. Forecasting the profit, revenues and expenses: Many agencies gives you a profit of 10-20% for each product. If you find an agency who can give you a better profit percentage, then go for it. However, term and conditions applied. Figure out the expenses ahead of the business too.

5. Kept the capital: After planning everything start collecting your capital.

6. Start working according to the plan: Try to stick to your plan. If necessary look for an alternative for the best possible plan.

There are many consultant outside who can help you to open and run a business. If you are facing difficulties, you can try contacting them.

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