Looking to start a business which guarantees good profits with a good number of customers? Then hurry!!! it is the perfect time to start a Grocery Store.
In India, with population increase, the purchasing power of the population also increases. A good business option to make good usage of the present market condition would be a Grocery Store
Here’s a list of what must be checked to start a grocery store:
#1 GST Registration
- If your annual turnover < 20 lakhs, get your grocery store business GST registration done to obtain your 15 digit GST.
- Most businesses avoid Non-GST companies as every transaction is documented and this can end up in tax violations. It is always better to stick to the tax rules made by the government to avoid any complications.
#2 Legal Formalities
- Obtain Food license, entity registration, shop and establishment registration, to name a few.
- As these are legal requirements, you will need to visit the license authority office to get the grocery store licenses to start a grocery store anywhere in India.
#3 Perfect Location
- It is vital to set your grocery store in the right place and there no doubt about it.
- A preferred place would be the centre of the town or busy market complex, where the buying population is big in size.
#4 Make Your Store Attractive Outside & Inside
- Everybody likes to shop from a new age vibrant grocery store with products stacked neatly, with clear price tags and salesperson quick enough to help him out. Make sure you’re this kind of place!
#5 Know Your Customers
- Learn more about who your customers are, their buying preference, their living standards, and market size. This will help you set up other things like the price of the products, dictates the kind of products to be kept at the store and other vital necessities to make your business successful.
#6 Check your Competition
- See what competition you have around you. Lower the competition, the better it is.
- Check out your competitors and see how your customers can think of your products when compared to your competitors.
#7 Find Good Vendors
- Having a good network with vendors is a huge benefit when it comes to balancing your inventory right. For eg: You can easily return packed inventory if they’re not selling well.
#8 Product Price
- Set the right price for the product, which in turn influences the customer to buy more.
- This has a direct effect on the revenue and profit of your grocery store.
- Grocery stores traditionally have markups of 33% to 67%, or margins of 25% to 40%.
- Never offer very low prices as you would need to buy high inventory upfront. Instead, stress more on good service and convenience to your customers.
#9 Hiring Sales Staff
- This depends completely on the size and requirements of your store.
- If at all you need to hire few, make sure they handle crowds of people with a smile on their faces.
- Other requirements are a thorough knowledge of the inventory and well-trained and highly motivated personnel.
#10 Online Store
- Apart from having a physical grocery store, you can sell your grocery products online as well.
- Take the help of online market to market your grocery store.
- You will need an online website of your grocery store, with an option of online payment through which you can take orders from consumers and get it delivered right to their doorstep. Or get listed on bigbasket.com and other such online platforms.
#11 Advertise Well
- Get noticed to draw maximum customers.
- Inform your family members, relatives, community members, neighbours, and friends about your new business as word-of-mouth is the best way of advertising for your grocery store.
- Build a good relationship with your customers, as a satisfied customer is your best advertisement.
- Depending on your customer size and market, make a choice of advertising mediums like flyers, leaflets in newspapers, hoardings etc.
#12 Be Digital Ready
- Do not stick to the old and inefficient method of operating business. Do business in a smarter way. Managing business accounting single-handedly or with a bunch of people is challenging and can result in a lot of manual work without the use of technology.
- Consider a business software like Vyapar to help you run business, manage inventory and ease up accounting stuff. Most of the businessman out there use it to ease up their life.
The future of grocery store business is bright as there is a huge population in India and grocery products are required in every household family. Opportunities are huge but all you need to do is satisfy your customer, invest in better infrastructure, improvise on technology, and be ready to soar in your new business.