It’s shocking how a lot of propaganda is floating around concerning small retail shops (commonly known as mom-and-pop stores) these days.
Honestly, all myths surrounding the experience as a startup business owner are often exaggerated. These myths can scare you from venturing into a niche that could be very profitable or, equally, convince you into going after opportunities that don’t really exist.
Discover the most common myths about mom-and-pop shop and the truth about small business.
Mom-and-pop stores are fading away
Truth: While startup businesses are not always at par with established business all the time in terms of revenue and many other factors, small business owners’ have lately reported that the situation is getting better.
According to Well Fargo’s August 2017 measure, small business confidence stands at 6 and is now at its peak though it still falls below prerecession levels.
The National Federation of Independent Business (NFIB) also reported in September that more retailers believe it’s time to grow their companies and better things in the coming six months especially now that every retailer can get a merchant cash advance.
Wal-Mart is the “one man wrecking ball”
Truth: Not really, seems like Amazon is taking over.
Small retailers face unfair competition from larger stores because of inventory space. Again, smaller footprints work against the small business in terms of real estate costs— they often pay more cash per square foot.
But these days, big stores like Wal-Mart are not the small merchant’s main fear; online shops like Amazon are…According to a research by the Institute for Local Self-Reliance 49% of large store owners agreed that large online companies were either challenging or very challenging. The figure rose to 69% among retailers.
Actually, unfavorable competition from established Internet companies was the number one problem independent retailers are facing.
But this is not to mean small businesses aren’t using tech to expand their markets. In fact in a recent research, only 27% of retailers admitted they don’t utilize social media.
The ‘buy local’ fashion is doing good Main Street
Truth: Yes, but only for restaurants and farmers. It doesn’t really work for other industries.
Local communities have been supporting a few specific small businesses. Movements encouraging customers to shop in nearby small businesses have been rising countrywide.
However, not all mom-and-pops have been benefiting from this idea. Restaurants continue to be the major benefactors followed by local farms. Other retailers have only enjoyed a slight spillover effect.
Be careful when seeking advice on starting a small shop, there are a lot of rumor that may discourage or mislead you.