Many people want to start their own grocery store business but they don't know how to start this business. So today in this article I will tell you how to start grocery business in Pakistan. Grocery is a business that run for a long period of time because grocery is a need of every house.
People do grocery daily. So in this business you have a great opportunity to change your life by starting this business. Read this article carefully to understand all important things.
Investment required for grocery business:
I post 2 blog posts on my this blog in which I gave you 2 business ideas that you can start with just 10000 pkr. This is very little amount of investment that you can invest but if you want to start a grocery store business then you need huge amount of invest.
You can not start grocery store business with little amount of investment. For starting a grocery store you need at least 10 lac pkr. In 10 lac you will buy stock. Please remember in this 10 lac you can buy only stock not other expenses are included in this ok. Grocery store business is a difficult business to start right now.
Can I start grocery store business online:
There are many businesses that you can start online but grocery store business is a business that you can not start online. The main reason behind this is that grocery store are present offline in large number.
In each street you will find a grocery store so people do grocery on these stores instead of doing this online.
The second reason is that the items in grocery stores are not so expensive so people don't want to pay delivery charges for item that they can buy from a grocery store offline with just 100 pkr. You can do online business on those goods who are not available in the market easily.
Marketing of a grocery store:
Marketing of a grocery store is not so important. The main reason behind this grocery stores are present in the market in large number so people don't prefer only one grocery store. They do grocery in all stores.
But if you want to do a marketing then you can make banners and put these banners in all barber shops in all places where many people come each day. You can also promote this business through social media ads by selecting your location.
But I think don't invest your money in marketing. Grocery stores are very common don't waste your money in marketing. Do marketing for this business only if you are doing something new as compared to others shopkeepers.
What type of goods are important in a grocery store:
There are many goods that are important in a grocery store. These are surfs, soaps, Shoe polish, nail cutters and this type of stuff. Candies, biscuits, cakes and bubbles etc I mean child items should also be available in your grocery store.
Grocery store business is only successful if you have your own shop. You are not doing this business on rent shop. If your are doing this business on rent shop then you will in hand to mouth situation.
So if you have no any place or shop in the market then don't start this business. If you have large amount of investment then you can try rent shops.
Profit margin in grocery store business:
The profit margin in grocery stores vary from item to item. Different items have their own profit margins. Some items give you 10%, some items give you 20% and some items give you 25% profit margin. But as a whole in all child items like in candies, in biscuits in cakes in juices etc the profit margin is approximately 16%.
I mean if your sale is 1 lac then you have 16000 profit. This 16000 is your profit if you have your own shop if you are in rent shop then your profit margin will be only 5 to 6% only. In all other grocery items the profit margin is approximately 20%.
In toys the profit margin is 60 to 70%. So in whole by including all grocery store items the profit margin is approximately 10%. If your sale is 5 lac per month then 50000 is your profit.
Important things to remember in grocery store:
There are many important things that you should care in this business. First of all you should know the expiration date of each item. Buy only 2 to 3 pieces of each item.
If you buy more then there is a chance that your stock will expire and you will get loss. The other things is that keep your store neat and clean. The third thing is that keep juices in refrigerator. Behave with your customers in a good way. Your ethics are very important in not only this business but in all businesses.
Is license is important in this business:
Yes before starting your business you should register your shop name in government registration process. This is very important. First of all you should pick a unique name of your shop then you can register and get your shop license.
If you will not do this your shop can sele at any time or you can get a plenty by paying fine. So if you want to start this business do this business according to government rules and policies.
You can register your brand name and get license through ipo office. IPO office in Pakistan are present in 3 cities Rawalpindi, Karachi and Lahore. The IPO office will charge you for making license.
The amount may vary I think they will charge you around almost 50 to 60 thousand pkr. You should not need to renew this process. This process is only for one time. So if you will do business according to government rules you will face no any problem and you will run this business smoothly.
So this is how to start a grocery store business. If you found this article helpful for you then please share this article with others. Thanks for coming to our blog.
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