Owners of these establishments need to "include safeguards in the business plan to eliminate the perceived risk," warns Smith.
Because they "started off as entrepreneurs, they are always willing to give advice," said Kennedy.
It's always a good idea to tap into the expertise of more established businesses to learn what did and didn't work.
Both the National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA) are resources that offer market research, sales forecasts, supplier guides, recruitment and training tools plus information about regulatory and tax laws.
Sandy Kennedy, president of RILA says, because "our members are some of the most successful in the industry they are able to provide access to benchmark info that can help shape a plan." Several retailers like The Gap and Home Depot are RILA members and were originally single-store businesses.
Copeland recommends contacting the local Department of Economic Development to get information on your city's programs.
Dig Deeper: 10 Ways to Mark Earth Day at Your Company How to Write a Business Plan for a Retail Business: Advertising Strategy Now that you've got supplies, it's time to create demand and move that inventory off the shelves.
It's an indicator of the ability to pay back the loan.
Also, some businesses like casinos and jewelry stores are frowned upon.
According to Blair Smith, a financial consultant and former banker, it may not be wise to dump all of your cash into a new business.
Instead, he recommends using some of that equity to clear up any unresolved personal credit issues.