How to start a grocery store business
Grocery store business is a business where household products that come fresh, dry and packaged are sold directly to people in a neighborhood.
Virtually all the household products are essential and required on a daily basis.
If you’re interested in starting a business, or have been looking for a business idea you can jump into, you may want to go into grocery store business.
The grocery store business requires a solid plan, know what people want, when they need it and be ready to compete for clients with other grocery store around you.
Grocery stores in Nigeria have seen a tremendous boost over the last few years. With technology, the grocery store online are beginning to make head wave.
The grocery stores in USA are big and have redefined how grocery stores business work. While the grocery stores in Nigeria has the potential to be bigger in Africa.
Why to start a grocery store business
- There will always be market. Nigeria have the population and the population is expected to double.
- People daily needs will never end. Every day, people eat, drink, wash, clean and so on.
- The variety of product makes it even better that 2 out of 3 of your customers will buy an item once they visit the store.
- There are two ways to enter into the business. You start it as a small or big business
- You do not need specialty or experience in retail to start the business
- When properly managed, profit can be on a daily basis.
- This type of business works no matter your location because it’s a business that sales man’s daily needs.
Start a grocery store business
Ever dreamt of having your own grocery store business? The steps below will help you to setup one.
The planning stage
- Before you start, know your customers need
Not everything will be appealing in the place where you intend to locate the business. You have to know their financial strength and the most common product before coming up with your grocery store items list.
If you’re in a low-income area and you supply items for high income people, then you stand not to make a lot of customers.
For instance if you’re to supply pure water of N5 in the neighbourhood and that’s what majority will afford and instead of supplying that pure water, you supply the bottle one.
Go to grocery stores near you and see what they’re selling to get an idea on how to prioritize your grocery store items list.
- Write a business plan
Someone once told me grocery store business is a small business idea that doesn’t require a business plan. In fact that’s the more reason why you need one.
The business plan keeps you focus and know what exactly you need to do and the steps to take. It’s simply your business on paper.
Your business plan should contain:
- Brief about the business
- The mission statement
- Required startup capital
- Profit and loss account
- Cashflow projection
- Planned expansion
- Market analysis
- Marketing plans
The business plan will help you to find investors that will invest in your business or get grants and loans for funding assistance.
- Register the grocery store business
This gives you an identity and an opportunity to begin to build your brand. It also safe you from people who want to steal the business name.
Many will use your stores name to describe the business location.
- Make your business logo and sign board unique
You want to attract new customers and keep existing ones. A logo and sign board will continually entice buyers to patronize your store.
- Find a location
Your grocery store business will not be complete without a tangible location. A busy location will bring in more customers, but importantly, make it easily accessible to both young and old, cars, motor bikes and even bicycle.
- Design your store
Most grocery stores in Nigeria are pretty the same. They have little or no space and are packed with products in a disorderly manner. When you look at grocery stores in USA, they’re pretty organized compare to ours here.
To stand out, you’ll need to create a store that will be inviting and gives you and order. It easier makes items to be located easier.
The following can be included as part of the grocery store:
- Shelves and cabinets
- Chairs and table
- Cash registers
- Guide to the grocery store.
- Find a supplier
Find suppliers for various goods that may include, dry goods, canned and packaged foods. A supplier that can supply in large quantity is good because you can get it at a wholesale price.
- Hire the right people
Hire the people who can handle sales and customers. Grocery store is the type of business that requires serious management to know and make profit. The right people will attract more customers and that will increase the sales.
- Find a book keeper
If you can’t do it yourself, then you’ll need a book keeper to help keep tract of the purchase and sales of items. This eliminate unnecessary mismanagement that maybe unforeseen.
- Grocery store advertising
Begin to market your grocery store business in your neighborhood. You’ll need to market using word of mouth to friends and family and distributing flyers.
More tips that will help your grocery store business to be a success
- Grocery store items list-you have to know exactly what your neighborhood need and provide it. This is really important.
- Grocery store coupons-Create coupons that people can use to get discounts. This encourage more buyers.
- Create promo sales-Give discount on special occasions. Might be for some days or hours to encourage people to buy an item at an amount taken off a regular price.
- Create custom shopping bag-These are bags you use to packaged items purchased by your customers. The custom bag helps in advertising your business and tells people where they can get them.