Contents
You may already have a vision of the type of business you want to create. Or perhaps you are still trying to narrow your focus on what kinds of things you want to sell. Setting up a retail store in 2025 can be an exciting opportunity that is both fun and challenging. With evolving consumer trends and digital innovations, launching your store now offers more avenues to connect with your customers than ever before.
Our handy guide will take you through some of the key steps involved in setting up your store so you can get the ball rolling on your new venture! For further insights into starting your business successfully, be sure to check out our Business Set-Up Guide and related resources.
Step 1. Research, Research, Research
The first step to setting up a retail store is to decide what store you want to open – what are you going to sell and how will you stand apart from everyone else in a competitive 2025 market.
The following prompts may be useful when considering how to make sure your business stands out:
- What are you interested in and/or passionate about? Figuring out what you like will make selling it easier and more enjoyable.
- Do you want to operate an e-commerce store, a brick-and-mortar shop, or both? The model you choose will influence several important decisions later on. For tips about establishing an online presence, read our Online Shop Terms & Conditions guide.
- Who are your competitors? An analysing your competitors’ strengths and weaknesses can help you learn from them and improve on their offerings.
- Who is your target market? Knowing who you want to sell to enables you to tailor your approach and ensure there is a demand for what you are offering.
- How will you make sure your store is profitable? At the end of the day, your business must generate income. Assess whether the market is saturated or if there is genuine demand – a lack of competition could sometimes indicate a lack of interest.
- What are some potential obstacles? Figuring out possible challenges (be they regulatory, supply-related, or market-driven) can help you plan effective mitigation strategies.
Step 2. Choose Your Business Structure
The business structure you choose will generally determine how your business is taxed and the degree of protection you have from debts or losses. There are three main structures to consider:
- Sole trader – a simple and cost-effective structure where you operate the business under your own name. Under this structure, you are solely liable for any debts and losses. For more on this option, check out our Sole Trader resource.
- Partnership – a structure where two or more people run the business as partners. The business is not a separate legal entity, meaning every partner shares in the profits, losses, and liabilities.
- Company – this option creates a separate legal entity, providing you with limited liability. While setting up a company involves a more complex (and sometimes costlier) process, it offers a greater degree of protection. To understand the differences better, view our Sole Trader vs Company guide.
It is essential to fully understand the legal and tax implications of your chosen structure before proceeding further with your planning.
Step 3. Create Your Business Plan
Writing a robust business plan lets you set out your goals for your store and provides a roadmap that not only guides you but can also attract potential investors and stakeholders. Your plan should clearly define what products your retail store will sell, your funding requirements, as well as your brand identity and marketing strategy.
You might wish to include the following sections in your business plan:
- Executive summary
The executive summary should provide an overview of:
- What your business does
- Your target market
- Your unique selling point
- Your primary goals
- Operations
This section should detail your organisational structure, listing the skills and experience required for each role. It should also outline the range of products and services your store offers, alongside information about your vendors, suppliers, and manufacturers.
- Market analysis
The market analysis provides an overview of the problem your retail store aims to solve. It should include an assessment of your target market, competitor analysis, and evaluation of current market trends – updated to 2025.
- Risk management
This section should outline any risks your business may face and explain how you plan to manage them.
- Goals and actions
Set clear, measurable goals to ensure growth, and outline the concrete actions needed to achieve these objectives.
- Finances
In this section, detail your funding needs, sources of finance, and what the funds will be used for. Creating a detailed budget that accounts for costs involved in launching and running your store is crucial. Include updated forecasts of profit, loss, and growth projections for 2025 and beyond.
- Brand and marketing strategy
Your marketing strategy should outline how you will attract and grow your customer base. With the digital landscape evolving rapidly in 2025, consider integrating social media, influencer partnerships, and other modern approaches – our Legal Guide to Online Marketing offers useful tips.
Step 4. Make It Official
Now that your planning is in place, it’s time to register your business and formalise it. With Companies House updating its digital processes in recent years, registration is now more streamlined than ever.
Register Your Business
Before you begin trading, you must ensure your business is properly registered. For a sole trader, registration of your business name isn’t necessary, but if you choose to form a company, you will need to register your name and obtain a Company Registration Number (CRN) via Companies House. The CRN is a unique identifier that confirms your business is officially registered, and it must be displayed on all official documents.
Choosing Your Business Name
You’ll need to decide on a name for your retail store. Often, the trading name may differ from your registered business name. Choose a name that is creative yet reflective of your brand identity and product offering. To ensure your chosen name isn’t already taken, you can search Companies House’s business name register or check the Intellectual Property Office’s trade marks journal.
Protecting your business name is vital for building your reputation and distinguishing your brand from competitors. There are two main ways to do this:
- Register the name with Companies House – an online process that also issues your CRN.
- Register a trade mark through the Intellectual Property Office, which grants you exclusive legal rights to use your business name.
After securing your business name, consider purchasing a matching domain name and establishing your website and social media profiles to kick-start your marketing efforts.
Licences and Permits
Depending on the nature of your retail store and the products you intend to sell, you may be required to obtain specific licences or permits. Ensure you research local council regulations and sector-specific requirements to remain compliant in 2025.
Insurance
Insuring your business is a critical step to protect your customers, employees, and assets. In the UK, the only insurance legally required is Employers’ Liability Insurance, which covers employee injuries or illnesses related to work. However, you might also consider public liability insurance and other forms that suit your specific business needs. If you’re uncertain about the best coverage, consult a licensed insurance broker or refer to our guidance on business contracts for additional insights.
Step 5. Build Your Store
What kind of retail store do you want to build? Whether you opt for a physical presence or an online storefront, each comes with its own set of challenges and opportunities in 2025.
If you’re planning to open a physical location, the right venue can be crucial. A site with high foot traffic may ease your marketing efforts, whereas a location that is difficult to access could hinder your success. When choosing a space, keep your target market in mind, and consider factors such as layout, available area for displays and customer amenities, and the overall cost of rent and utilities. For detailed advice, see our Commercial Leases resources.
If your focus is on building an online store, determine which e-commerce platform best meets your business needs—platforms like Shopify, Squarespace, Wix, or Etsy remain popular choices. Research and compare their features to decide which allows you to manage transactions, customer data, and digital marketing effectively.
Step 6. Establish Vendor and Supplier Relationships
A crucial element in the success of your retail store is forging strong relationships with reliable vendors and suppliers. Ensure that any potential vendor aligns with your budget, upholds a good reputation, and consistently supplies high-quality products. It’s wise to maintain multiple supplier contacts so that you have alternatives if one source encounters an issue. For guidance on negotiating contracts with suppliers, visit our Supply Agreement page.
Step 7. Hire Staff
Recruiting the right people is both an exciting and challenging task. Your staff will represent your brand and directly impact customer experiences. During the interview process, focus on evaluating both the candidate’s experience in retail and their interpersonal skills. Remember to avoid asking any unlawful or discriminatory questions, as this could lead to legal challenges.
Step 8. Market Your Store
Create a comprehensive marketing strategy that aligns with your brand and appeals to your target market. In 2025, digital marketing strategies, including social media campaigns, influencer partnerships, and email newsletters, continue to be both effective and affordable methods to generate excitement about your store before it opens its doors.
As the retail landscape continues to evolve, consider adopting omnichannel approaches that seamlessly blend in-store and online experiences. Keeping abreast of the latest consumer trends and leveraging data analytics can help ensure your marketing efforts remain relevant and targeted.
Need Help?
Setting up a retail store involves wearing many hats, but you can leave the legal technicalities to us. Whether you need assistance with business registration, drafting contracts, or ensuring compliance with the latest regulations, we’re here to guide you every step of the way.
If you’d like to discuss your options or require personalised advice, please get in touch with us at [email protected] or call us on +44 (0)2034 321860. We’re always happy to help you future-proof your business.
Get in touch now!
We'll get back to you within 1 business day.
Top 3 Legal Mistakes
Book in a free consultation with us to discuss your legal needs.
0 Comments on "A Business Owner’s Guide To Setting Up A Retail Store (2025 Updated)"