How do you start a small grocery store business in the Philippines and how much do you need?
Steps to Start Small Grocery Store
There are so many sari-sari stores, convenience stores, and neighborhood groceries in the Philippines. That could mean that this kind of business might be a good one to open. So, how do you do it?
Follow these steps:
Determine your target market
You can’t just open a business without knowing your customers. Who are your customers? What do they need? Would they willingly go to your store? How you can make them visit and come again?
By understanding your customers, you’ll know what to offer and what you can do to keep them coming back.
Plan Your Business
If possible, make a feasibility study. Learn where you should put your small grocery store so it can attract more customers.
Is it better to open the store in front of your house or should you lease some space by the road? Is there enough space for your customers to park? Can they even find your grocery store?
In planning your business, you should also know how much capital you have to open the store and whether you can sustain its daily operations, particularly during the first months.
A small grocery store could need around Php1-2 million while a larger one could need at least Php5-15 million. Take note that you might not get back that capital within the year or even a few years. Can you afford that?
But you can also start small and do it with less than Php1 million. Then you can just grow your business as you continue to earn profits.
Process the Necessary Permits
Make sure you have all the necessary permits set up before you open your grocery store – or the government could come knocking on your door and charge you penalties for not complying.
Don’t be afraid to try something new, but make sure you studied the pros and cons of each one.
Note that you don’t have to be the cheapest shop in your area to attract customers. Notice how convenience stores like 7-Eleven and Ministop have higher prices for many commodities yet have lots of people hanging out?
You can model your store after them.
Like any other business, there are many risks and benefits in starting a small grocery store in the Philippines. But you could earn a lot of money if you take those risks and they pay off. Good luck!