The enterprise spirit is strong among today’s youth. Many young Indians start their entrepreneurial journeys while still in school and are always thinking of low-investment business possibilities. There are many possibilities to think about, but if you have the resources, opening a grocery store franchise, supermarket, or convenience store can be a smart idea.
The best places to buy domestic necessities including food, drinks, candy, cleaning supplies, and self-care items are grocery stores or supermarkets. They offer simple access to common home items.
Why Should You Open a Grocery Store Franchise?
You might be wondering why you should consider opening a convenience shop in a nation where there are so many food stores. Although some estimates indicate that Indians spend more than 50% of their monthly discretionary income on food, it may be important to highlight that this is the largest consumer group in India.
The necessities are available at grocery stores, therefore even during emergencies, individuals require these necessities to survive.
As if these weren’t enough, the grocery sector is dominated by Kirana, or small, neighborhood stores, to the extent that it represents 98% of the market, as opposed to other retail categories in the nation that are. Customers are seeking “convenient” solutions to purchase their daily essentials, which is why this is the case. Compared to a huge retail establishment, the grocery store franchise right around the corner is simpler to get to. Additionally, smaller grocery businesses let customers buy on credit, something that may not be available at bigger stores.
It is obvious that opening a food store in India is a viable business idea with little startup cost.
How Do I Start a Grocery Store Franchise?
There is nothing left to do but get started if you are determined to open a supermarket or convenience shop. Here, we offer a 7-step manual to help you create a supermarket on your own and address any questions you might have:
- Business Plan
You must begin with a business plan, just like any other type of venture. Basics like determining whether you want a physical or online store, the kind of products you intend to provide, the cost of inventory, product pricing, competitive analysis, and financing should all be covered in a business plan for your grocery store franchise. A business plan is essential for funding as well as for giving your company direction. You will require a solid business plan if you apply for a bank loan to open a grocery store. You might even take into account getting a gold loan for commercial property as they don’t demand a lot of paperwork, making it simpler to get capital for your grocery business.
- Perform a Feasibility Study
Through a strength, weakness, opportunity, and threat analysis, a feasibility study establishes the cost and value proposition of a firm. It establishes the likelihood that your firm will succeed, to put it simply. Even if this will already be a component of your business plan, it is crucial to guarantee returns while thinking about any low-investment business plan. It’s crucial that you don’t skimp on quality in an effort to reduce your expenditure.
- Register Your Store
In order to finalize the procedure, register your supermarket as soon as possible. Here are some factors to take into account:
- registering your company as a sole proprietorship, a partnership, or another type of ownership
- obtaining an occupational license for your convenience shop
Submitting an application for a Shops and Establishment Act of 1953 business license
Getting an FSSAI license registering for tax-related things like a TAN, GST number, etc.
Depending on the course your firm follows, more registrations can be necessary.
- Choose a Location
After registering your firm, logistics must be planned. If you want to open a physical supermarket, you must first select a location for your business. The location should be taken into account. A good grocery store location should be simple for customers to find, accessible, and convenient. Create a website for customers to access even if you decide to go the online route. Funds are necessary for this. You can receive the necessary funds to start working on your business with the aid of a grocery shop loan.
- Identify Sources
You’ve chosen a location, created a plan, and registered your business. Planning your inventory is the following phase. A good convenience shop should always stock the items patrons require. You will therefore require a dependable vendor-partner. Find manufacturers and wholesale distributors from whom you can purchase your stock. Find a supplier who is reliable, offers you competitive prices and has a wide selection of goods. You have the option of using inventory financing to merely pay for the purchase of these items.
- Plan Your Finances
Planning your convenience store’s operations is the next step in setting it up. Will your family assist you in running the business, or will you need to hire staff? How much would your physical store cost? Will home delivery be available? How will you get the stuff to your customers if it’s online? What methods of payment will you accept? Before you begin, you must have all of this ready.
- Determine the Total Investment Required
Even if the business plan calls for a small initial investment, opening a food shop will require some cash up front. Loans are available from a number of banks and financial institutions to help start-up companies.
You can apply for a small business loan, SME loan, flex loan, term loan, or even a grocery shop loan as a new grocery store franchise. Loans for working capital can be used to keep an inventory stock in constant supply. Applying for outside funding might help you make sure that before starting your firm, everything is in order. However, most business loans have strict requirements about the applicant’s credit history and demand that you have past company experience.
Choose the right franchise for you
The sheer amount of franchise ideas is truly overwhelming, but now that you are clear on what you want, you can start checking off a significant portion of them from your list right away.
It is beneficial to first examine particular grocery store franchises and ideas rather than specific brands. Even though your alternatives are getting smaller, don’t eliminate anything from your list without giving it some careful consideration. To uncover those uncommon perfect matches, you can also conduct your own study if you’re up for the challenge. Setting a deadline to identify some specific franchisors who would be suitable fits for you after going through your initial checklist is a fantastic idea. “If you don’t set a deadline, you risk never making a choice.