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Grocery Store Business,How to start? Investment,Profit - Complete Guide

Updated On : 15-Jul-2024

Grocery Store Business Plan - Complete information on how to open a grocery / general store shop

We go to the grocery store to get all the things we need for everyday essentials. The population of our country is increasing continuously, it means that the demand for everyday necessities will also increase, so you can earn good profit by opening your new grocery shop. This business is such a business that runs for twelve months, whether it is winter, rainy or summer, because people always need things like oil, sugar, flour, chillies, spices etc. for subsistence.

If you stay in this business with full patience, if you are also planning to start a grocery store business, then let's talk in detail about every detail related to this business today, and know how much investment in this business. What should we do, and how much can we profit from that investment? 

What do you need to open a grocery store business? 

To open a grocery store, you first need a shop and a warehouse for storing goods. If you want to sell less products in the beginning, then you can run without a warehouse. After this it is necessary to do some furniture work in which you can deposit the product properly.

Apart from this, you need tables for yourself, counter furniture, etc. for the customers. Once the store is properly organized, you will have to buy the items for the grocery store that you want to sell. If you want to manage this business alone, then you can not only that, you can also start it from your home so that you will not need workers. If you want to hire a worker then you can.

Is there a market for this business?

If you are opening a grocery shop, then you should be sure that whether there is a market for this business or not because such things are found in the grocery shop, which no person takes to fulfill his pride and hobbies, but he does not take his own business. Takes it to fulfill the needs, so no matter who the person is, he has to go to the grocery store, so the market of this business is very big, when the market is big then there is more competition there, because of this your effort is only It should be on how you bring customers to your shop

Before opening a grocery store, it is necessary to know some points

Everyone can open a grocery shop, but there are very few people moving, there are many reasons behind this, sometimes it happens that the price of any item is the same, yet we like to take goods from a distant shop. While not from the nearest one, whenever you open a shop, keep some things in mind, so that your shop can run well.

Be polite in behavior

Whenever a person buys a grocery-related item from a shop every time, then he definitely has some emotional relationship with that shop, this relationship is going to benefit you a lot in the grocery business, so there may be any customer. Try to make him a little emotional relationship, for example, when he is taking some goods, then you can give him some advice at that time which will benefit his family and his health, along with this, it is very important to be polite in your language.

Rent or open a grocery store at home?

While starting a grocery store business, this question definitely comes in the mind of many people whether the best location would be home or somewhere outside the house, so it would be appropriate for you to open your shop in a place where there is more crowd. If you open a shop at home, but your customers are very few, because your home is out of reach

How much should be the shop space to open a grocery store

It depends on you how big a shop you want to open, but still, if you want to open an organized grocery store, then you must keep at least 200 square feet to 1000 square feet space in the shop, so that you should have all your space in the shop. It will be convenient to keep the goods well

Grocery store interior design

The interior design of the grocery store is also important, any shop, its interior design should be such that about 80% of the shop should be seen by the customers, along with this, if the interior design of your shop is good then you should also be able to keep the same organized. You will not feel any problem, at the time of need, you can easily take out the goods and give them to the customer.

A good interior design can also bring a little benefit in the business, as many times the customer comes to buy something else, but after seeing the same, he remembers something else and he buys that too.

What items can you keep in a grocery store? 

Grocery store means a shop where people get the daily essentials. You can keep many types of things in your grocery store, but you should mainly keep the food items which people need daily.

You keep these items sugar, oil, flour, detergent powder, shampoo, soap, cream, brush, toothpaste, pencil, pen, incense sticks, namkeen, sev, matchbox packets, ghee, dry fruits, spices, chillies, asafoetida, cumin Keep things like ajwain, mosquito repellent, clock cell, candy, chocolate, toffee, crunchy, biscuit, snake, chips, ice cream, papad, cold drink, room freshener etc.

Keep only the amount of goods sold in your shop, do not keep too much extra stuff. Bring new items as soon as the goods are sold.

Which licenses may be required?

If you are opening your big grocery store then you should get GST (Goods and Services Tax) registration done. You can get this done on the official website of GST of the Government. For this we need some documents like bank account statement, PAN number, any of your ID, address proof etc. If you are opening a small shop, then initially you can run it without GST registration.

Apart from GST, there is one side registration. FSSAI Registration FSSAI stands for (Food Safety and Standard Authority of India). You must have seen the FSSAI number written on the packaging of any food. It is operated by the government to prevent adulteration in food items. If you want to pack and sell any of your food items, then you must take the fssai number. And if you are opening your grocery shop in the same way, then even without the fssai number, the work will be done.

Where to buy goods for grocery stores –

When you open the shop, before that you should make arrangements about how and from where the same will come in your shop, buying goods for the grocery store is not a big deal. But it has to be smart. You can buy goods for kirana stores from wholesalers from your nearest market. Because this happens in every city, once this relationship is formed, after that they themselves keep coming to you to take orders for the goods, you should note them down for the goods needed for your shop, after that they themselves All those items can be delivered to your shop

Apart from this, it is important to talk about smartness here because you can buy many products at a very cheap rate. Like you are selling spices, you can buy the product directly from any spice company. If you are selling ghee then you can get good and cheap ghee by making contact in villages. Not only this, you can earn more profit by buying many such products like incense sticks etc. directly from their companies at a cheaper rate.

How to maximize the benefits of your grocery store ?

The advantage of a grocery store depends on some things like the location of your shop is very important. Having a shop in a good location has many advantages, like many strangers can also come to your shop if some strangers face in your shop every day. Come on, your shop is doing well

Apart from this, the second important fact is that how many more grocery stores are open around your shop, if not much is open, then you will not have to try much but if the competition is more then you may have to work a little hard so that customers can come to your shop. For this, you try to give something in your shop, which is not available in other shops, it can be anything like you can also keep some chairs in front of your shop, in which the customer can sit for some time.

How much will it cost to open a grocery store?

How much you want to spend in a grocery store is up to you. Still we will try to add the estimated cost. If the shop space is your personal space then you will not have to pay any rent and your expenditure will come only in buying the goods and getting the furniture. If you open your shop by renting someone else's shop, then you will have to pay the rent. The price of rent is different everywhere, if you are opening a shop in a big city then the cost of rent will be high and if you are opening a shop in a village then the price of rent there will be very less. Before opening the shop, find out the rental price of the place. The rent of your shop can range from Rs 2000 per month to Rs 20,000 per month.

Apart from the rent, we have to get the furniture made. We have to make the furniture only once in the beginning. In furniture, we have to make counters and cupboards to keep things. Its cost can come between 20 to 40 thousand at the most, but you can take all this at least for less than 10 thousand.

Talking about buying goods, it depends on how much you want to spend. You can start a small shop by bringing at least 20 to 50 thousand items. And if you open a big shop, then you can keep goods between 1 to 5 lakhs in your shop.

If you open a small grocery store then you will have to spend at least between 50000 to 1 lakh rupees. And if you want to open a big shop then you can spend as much as you want from 1 lakh rupees.

How much does a grocery store make? 

There is a lot of profit in the grocery store, but in the beginning you have to be a little patient. In the new shop, you will not see much benefit in the beginning but as time will pass slowly and after next 4 to 5 months you will see very good profit. In this, you will get about 20 to 40 percent benefit. And as your shop starts running, your profit will increase further.

You should try not to keep the shop closed too much because the longer your shop remains open, the more chances that your shop will be sold. And you keep good good goods, the local brand goods have more profit. On the other hand, the profits of branded companies are less. But keep the goods in your shop according to the demand of the people.

If you invest 1 lakh for the goods in this business, then when your entire goods are sold, at that time you can make a profit of about 20 thousand to 25 thousand, so the sooner the goods are sold from your shop, the more your profit will be more

Some important things related to this business

The competition in this business is very high but its market is also good because every person always needs groceries. Keep only groceries in your shop, apart from this, do not keep more such items which have no relation with grocery.

Whenever a customer comes, always talk to him in a good way, if you do not behave well then that customer will not come back to your shop.

Keep as much goods in your shop as is being sold, do not stock more, because of this there is a fear of spoiling the goods.

Do not keep dirt in your shop at all, do not allow insects, flies to enter your shop, keep washing your hands again and again.

Keep the goods in your shop in such a way that they are easily visible to everyone. Do not give more goods on credit, if the customer is familiar and you have confidence in him, then only give goods on credit and try to get all the loan back within a month.

Learn how to start Grocery Store Business in India.The basic business starting guide.Grocery Store investment,profit details.

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