What is a retail business, how to start and its types

What is a retail business, how to start and its types

The term retail is a term that we often hear, both for business people and for ordinary people. However, what is a retail business? What are the types and how to start a retail business?

In general, Retail Business is an activity that we encounter in everyday life. This business has a fairly large market share.

What is a retail business, how to start and its types

What is a retail business?

Retail business is the business of selling products or services to consumers or buyers directly in small quantities. Products or services purchased by retail businesses are mostly used for personal consumption or household purposes.

Because the goal is to consume individuals, retail businesses can be tried offline or in sports stores or online or digital stores.

Retail business plays a very important role in the supply chain from large producers or wholesalers to consumers who buy in small quantities.

Types of Retail Business

Retail business is divided into 3 types, namely according to the product sold, ownership and company scale. Check out the explanation below:

Products for sale

  • Service retail, retail that offers services or services to consumers. Examples: apartment rentals, car rentals, electronics repair, child care, and tour guides.
  • Product retail is a retail business that markets products that consumers need. Examples: department stores or department stores, supermarkets, minimarkets (alfamart and Indomaret), food and drug retailers.


  • Independent retail, a retail business that is not affiliated or operated independently. Example: a grocery store or food stall.
  • Franchises or franchises, businesses run by affiliates that use the franchise company's business management standards. Example: Kulo Coffee, Promise Soul
  • Retail already exists, this business is usually an inheritance or family business that is passed on to the next generation.
  • Corporate chain, this type of retail business consists of two or more businesses owned by different individual shareholders and joined into one group. Example: Ramayana Group, Matahari Group

Companies to scale

  • Large-scale retail business, including retailers that sell goods on a large scale. Example: department stores, supermarkets, hypermarkets.
  • Small scale retailer or traditional retailer. These types of retailers are further divided into two categories: small retailers such as street vendors or permanent kiosks and non-starting small retailers such as street vendors.

How to start a retail business

After reading the explanation above, are you interested in starting a retail business? Here are a few things you need to do:

Decide on the business you want to manage

As explained above, Retail Business has many types of business, scale and ownership. You need to determine this first when you want to start a retail business.

Ask yourself what type of business do you want to run, service or product? Do you want small or large scale? So do you want to run yourself, franchise or something else?

Have working capital

After thinking carefully about the first point number, you need to find out how much capital is needed for your retail business. Is the capital you currently have enough? Or maybe you need to borrow from relatives? Or borrow from a financial institution.

If you choose a small-scale retail business and independent ownership, you can apply for a business loan without collateral from Amartha. For information, Amartha only provides loans to women micro-entrepreneurs who live in rural areas.

Prepare marketing strategy

The last and very important step is to prepare a marketing strategy so that your retail business is known to many people so that there are many buyers. There are many marketing strategies available on the internet, you can also look for them on the Money+ blog.

Good luck!

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