Many years ago, I started a comic book and game store, which flourished and expanded into its second decade with video rentals and more. A catalog was added, a full website and a second store. The store was a great personal success for me, because it enabled me to expand on my own ideas, and control my income and financial future. It also helped me learn a great deal about business, retail trends and customer habits (human behavior). My business also led to a huge network of personal contacts, which is perhaps the most rewarding aspects my small business. It has been a rewarding experience, and I never regretted the move to start my own business.

Looking back at the success, there were several key factors that led to fortune in my retail operation. My business might have failed, if I had not done all of these things right. These are the 5 most important key steps that led to my success.

1. Low Rent

The single most import "make or break" part of any retail operation is overhead, and rent is the base of it. I rented a very inexpensive space on the basement level of a mini-mall on a very busy street of the main shopping district in my city. Several spaces were empty at the basement level, the consensus being that consumers prefer street-level or higher and will not walk downstairs. However, my customer base was college age, healthy enough for stairs and the customers flocked in. The rent was very low, which helped me tremendously. My neighbor and friend at street level was paying $7000 a month, while I was paying $750 ($84,000 vs $9000 per year). He did twice the business, but went bankrupt in 2 years. I expanded and flourished for decades.

2. Location

Being in a good business and shopping district helped save on advertising. A well-placed sign outside was advertising every day 24/7 to a lot of walking traffic. Don't under-estimate the need for a good location; just find a way to get the location without breaking the bank. Look for second floor spaces in a good area. A cheap second floor space on a busy street is better than a big street-level space on a side-street in the middle of nowhere.

3. Product Evolution / Adaptation

As time passed and fads or customer interests changed, I adapted and changed the product lines of my store. When comics faded and collectibles card games (or CCG's) became hugely popular, I boosted my inventory in that direction. When Asian movies hit it big with my college students, I expanded the store to add more foreign movies. Don't sell widgets and sit year after year relying on the ups and downs of the widget market. Be attentive to what is popular and change with the tide. Just like Apple, who dropped almost all support for its failing computer line and then threw its energy into gadgets for kids, such as mp3-players and phones. They would be gone now, if they hadn't adapted.

4. Networking and Advertising

Try networking as a cheap way to supplement advertising. I would often join and sponsor college and high school groups as a way to network and meet my customers. They spread the word to other students and the network spread. Most of my customers said they found my store by "word of mouth." My paid advertising was kept to my target area, such as comic book fanzines, movie websites and college newspapers. I paid very little for advertising.

5. Website

My website only existed to do two things: give a map to my location and show new products each week. It was not a huge site, but it was simple and easy. There was no shopping cart or ability to order by mail. It was a successful site, because it kept customers informed. That's all a site needs to do. Keep it simple, easy and informative.

The main theme here is: low overhead. Because my rent and advertising costs were so low, I was able to enjoy nice profit margins. By adapting, networking and being in the right spot, my business bloomed and got better every year.

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How I Made My Small Retail Business Successful