Signs you should convert your bricks-and-mortar business to an online business
With the decline of the UK high street never being far from the news, business owners across Britain are pondering whether it’s time for them to shut up shop and dedicate their offering to an entirely online audience instead. A sad decision admittedly, but one that could breathe a new lease of life into a business that’s struggling to make money through a physical shop.
In this article, we look at the key indicators that suggest that it might be time for you to convert your brick-and-mortar business into an online one.
Overheads are beating earnings
The costs involved with running a physical store can be huge. Rent, business rates, heating, electricity, general maintenance, advertising materials, security, cleaning, employing staff, and the different types of insurance – it all adds up. What’s more, in the current economic climate, these outgoings can drastically increase with barely any notice.
Having a shop can make perfect business sense, if these costs are easily covered by what you are earning through sales. Still, if these overheads are taking too much of a bite and your business is struggling to stay afloat, it’s absolutely time to look into phase two of your operation and consider going down the online route if it’s suitable for what you sell.
There are no visitors
As with most decisions in business, the finances should be at the forefront of everything you do. Nonetheless, some other factors signify whether or not you should maintain a physical shop. Next on our list is the number of visitors you welcome.
If you are consistently getting a small amount of shoppers every day and the majority of people who are stepping into your shop are not walking out as customers, the requirement for the shop should be questioned (unless of course, you sell the types of product where just a handful of sales is noteworthy, such as a car dealership).
If the shop isn’t fundamental to delivering your service and not providing any value by existing, we recommend testing the waters of selling online through platforms such as Shopify and Etsy to see whether or not dedicating yourself solely to this channel is viable.
You are already having success online
If you’re not reaping the rewards from having a physical shopfront, but are already experiencing certain levels of success by selling online – perhaps online sales are outdoing face-to-face sales – you will have a reasonable idea of what is achievable.
Now, consider how the numbers would stack up if you were freed from the burden of general shop management, and committed yourself fully to your online shop. You’d have more time to spend on getting your website right, perfecting your communications, and looking after your customers.
As signs go, it couldn’t be more obvious. If there’s an online appetite for your offering and your shop just isn’t working out, it’s probably time to close and devote your efforts to going fully online.
Running the shop isn’t enjoyable
When business is going well, managing a shop can be an extremely rewarding and enjoyable experience, where new customers bring new experiences every day. Nonetheless, it’s generally hard work.
When business isn’t going well, you still have all the hard work, but often without any of the enjoyment. This can be remarkably depressing for a business owner: you have the anxiety of worrying about your financial future in an environment where interaction is likely to be limited (given that the shop isn’t flourishing).
If you are at this stage and you are dreading opening up every morning, you need to look at different strategies for picking the business back up again and also bring back the enjoyment factor. In this situation, switching to online-only could provide you with the opportunity to continue selling something that you’re passionate about, in a way that reinvigorates you.
You want to expand your business
Let’s now step into more promising territory for the future of your shop. If business is currently booming thanks to your current physical presence, and you’re looking to expand, converting to an overall online business could be the solution.
Rather than opening up another shop (involving dedicating serious time and effort into sourcing a new property, preparing it, and then paying the ongoing overheads) you can maintain your current shop, but focus your growth on online platforms.
This way, your brand’s reach multiplies, but you maintain the physical presence that has ensured your current success.
There you have it
Those are the signs you should convert your brick-and-mortar business to an online business. Whilst having to shut down a shop may feel like a failure, particularly if you have had a presence in the location for a significant period, in the long-term the decision can be for the betterment of a business, and ultimately lead it into an exciting new chapter.
We hope you have found this article useful. Thanks for reading.
Jo is Customer Service Operations Manager at Bizik, responsible for leading and supporting the team in delivering exceptional Customer Service, ensuring satisfaction and resolving issues efficiently. She has 10+ years of expertise and knowledge of the telephony industry and is passionate about developing strategies that improve service quality.
