Planning to start a grocery store business is a super exciting step in your journey as an entrepreneur. But it’s a confusing and stressful one at that.
There are so many questions to ask and so many steps to take. If you find yourself stuck- know that you’re not alone.
This short guide will cover the fundamentals of opening a grocery store business.
Formulate A Business Plan
There’s no business execution without a business plan!
This first step is to decide what kind of grocery store you want to open. Is it an all-in-one shop? Will you sell other items that aren’t groceries?
You’ll also want to consider business ownership. If you plan to have complete independence on this project, opt for a sole proprietorship. Keep in mind though, that this choice has no liability protection.
The next option is limited liability partnerships, which are for people sharing ownership. As the name suggests, each partner has limited access to the ownership, but both owners typically have liability protection.
The last option is a general partnership. This option is much broader and doesn’t limit to only two partners. It’s almost exactly like the sole proprietorship, just with two or more people.
This section covers one of the most excruciatingly frustrating parts of starting any business: legalities.
Depending on what state you’re in, the legal licenses and whatnot that you’ll need will differ. With that said, there are some common things you’ll need. These include:
- Business licenses
- Federal Employee Identification Numbers
- Health Licenses
- Property Deeds
Again, there are a few more depending on your state. You can find out more about that here.
Customize Your Store: Name and Location
Probably the most exciting part of opening a grocery store company is creating a unique identity. This can be done in many ways but most commonly done via your business’ name and logo.
Consider naming your business with something people will remember by heart. Tie that to a logo that’s unique to you. It should be memorable enough for people to say “hey I know that store!”
Location is also super important. Depending on what kind of grocery store you’re opening, what is around your business is important. A good rule of thumb is to set up a store near a shopping center– this makes stopping by easy and quick for customers.
Who Will You Buy From?
If you’re starting a grocery store business– you’re obviously going to need to get your supplies from somewhere!
Before you even consider other things such as name, location, logo, how to advertise, and other processes, you should have an idea of where you’ll source your goods. You might get all your stuff from the same location or opt to buy from different suppliers.
During this time you’ll also want to know where to buy your store equipment such as shopping carts and cash registers.
Market Your Business
Considering that internet marketing is one of the most effective ways to grow your business, it’s no surprise the big dogs in the grocery industry are consistently advertising.
Now as a beginner business owner, you don’t need to go all out for advertising. However, variety is the spice of life after all. Consider your options.
You can do:
- Google ads
- Youtube ads
- Affiliate programs through influencers
- Social media ads
Taking advantage of SEO and PPC are also great ways to market your business. Click here if you’re interested in learning more about how to go about online advertising.
This short guide only covered the very basics of starting a grocery store business. There’s also the case of investing in the future, shipments, other types of insurance, and much more.
But for now, this should help you get a jump start.
If you’re interested in learning more, please head over to our business page. We have plenty of information there.