If you want to set up a modern convenience store or grocery store in an upscale mall or a central location with amenities like AC and many sales persons, then you will need to invest more than Rs 2 lakhs.If the amount is exceeding your budget, then you can always take a business loan from the banks.If you want to have your business and are wondering about how to start a grocery store business in India, then you have landed on the right page.
Also, the age group of people in your customer base would dictate the kind of products you will need to keep in your store.
Search for a prominent location at the center of town or at a busy market complex.
To set up a grocery store in India, there are legal formalities and licences that you will need to obtain.
These include Food license, entity registration, shop and establishment registration, to name a few.
With lots of people shopping there, you could get a good outcome.
A good location is vital as it will ensure you have a good amount of footfall every day.You can opt for one of the two pricing methods, namely Markup (cost based) or margin (selling price based).Grocery stores traditionally have mark-ups of 33% to 67%, or margins of 25% to 40%.For accurate target market assessment, you must zero in on the best location for your small grocery store business, evaluate the potential of the location, and find the perfect customer mix for it.The location of your grocery store is vital as the customer base differs from place to place and products used in urban areas would differ a lot from the products used in the rural areas.Also, if you are setting up one of the new age grocery stores or convenience stores, then you will need to spend a lot of money on air-conditioning, latest technology, marketing, and a lot more.You can have a blend of the best of these both and create the right mix for your clients.It will enable you to select the right place to set up your shop and determine the products you want to offer, set your pricing and selling strategy.Factors which will influence your grocery shop business will include your customers’ background, their location, living standards, products they prefer to buy; when, how much, and how often of it they buy.Now that you have a grocery store business plan in mind and are in the process of setting up your business, it would be totally up to you to decide how much of financial expenses you will be incurring in setting up this business.The grocery store business start-up cost would be influenced by many factors like the location of the shop and the rent you would need to pay, the inventory you need to buy, and how many salespersons you would be hiring.