Grocery store business is one of the most competitive
sectors in the world. To start your enterprise you will compete with mega
store, retailers and supermarkets.
Others in the same
line of work are grocery shop owners, market women and petty traders. Despite
haven so many competitors the mini grocery store is rather profitable.
The simple fact
could be linked to location and direct sales. As a rule mini grocery stores are
neighborhood shop or community handout.
They are usually located within residential areas and
easy to reach. Most residential estates have a few mini grocery stores catering
to their immediate needs.
The convenience of being a neighborhood shop is the
biggest advantage to running a mini-grocery store.
Advantages
of Operating a Mini Grocery Store
Mini grocery stores have ideal locations within
residential areas. They sell essential commodities that are mainly house hold
items.
Some stores stock specialty items, fresh food and
essential ingredients for households. Mini grocery store stock an impressive
range of different items to meet their customers demand.
They also reduce
travel time providing an essential service to the host community. Opening a
mini grocery store is lucrative and slightly challenging. There are a few things
you need to put in place before starting the business.
Opening
a Mini-grocery Store
Write
a Business Plan
Despite the small size of your enterprise you need a
business plan. The business plan should focus on the financial aspect of the
enterprise.
Inventory will
consume 75% of the total investment. While lease arrangement, transportation
costs, permits and labor are important. The business plan will also aid sourcing
funds including product identification.
Product
Identification
Mini-grocery stores are specialty stores that stock a
divers range of inventory. Before launching your enterprise you need to know
what your customers need.
Understanding their preferences provides a guide toward
purchase and stocking. Generally mini-grocery stores stock essentials such as
soaps, detergents, toothpaste, sugar, milk and canned items.
They sell biscuits, cleaning agents, home glue, beverages
and drinks. To gain adequate knowledge of consumer preferences conduct a survey
of the area. The survey will reveal popular products, pricing and consumer
behavior.
Hire
Staff
The staff requirements in a mini store is minimal you can
run the store by yourself or hire a sales girl. Because of the size of the
establishment the hired staff could easily multi-task.
The inventory should be your main focus and concern. The staff
you hire must have good customer relations and professional work ethics. Make
sure your store is properly stocked and inventory taken.
Connect
with your Community
A grocery store is part of a community and people in the
area will know you by name and regard you as a friend. You need to participate
in community events and donate to non profit organizations in your locality.
Offer your regular customer’s discounts but avoid
providing dept concessions.
Registration
Register your store as a sole proprietorship business. You
can decide to get a business name for your store.
You need to have a personal tax identification number and
trade license. If you sell alcoholic beverages you need a liquor license.
Sourcing
your Products
It is better to buy directly from manufacturers and
wholesalers. You need to keep your prices competitive to retain your customers.
Product pricing is a major challenge in mini grocery business.
Balance
the Books
Make sure you account for every inventory you purchase.
This is to avoid sharp practices of staff and possibility of theft.
Determine expenses, insurance, tax, items costs and
revenue. You can do the book keeping yourself or hire an accountant.
Marketing
The level of advertisement involved in running a mini
operation is small. You can print flyers, posters and banners to attract local
patronage. Organize small social events and provide discounts for regulars.How to Start a Food Delivery Business
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