You are wondering how to start a departmental store of your own? Well, here’s all you need to know about it.
Departmental stores or Kirana stores need no introduction. They are a big part of the Indian society that has all the required goods in our homes.
There are several things that are sold in a departmental store like Rice, Sugar, Wheat, Vegetables, Spices, Snacks, Coffee\tea, Toothpaste, Shampoo, Sanitizer, etc. Also famous as corner shops and convenience stores.
How to Start a Departmental Store
Licenses and Documents for Departmental Store
There are several types of licenses and documents that are needed by anyone who wants to start their own department store.
- Identity Proof
- Registered Office Address Proof
- Address Proof
- GST Certificate(Document Checklist for GST Registration)
- FSSAI License (for food products)
- Shop and Establishment License
Things to Consider Before Starting a Kirana Store
While starting a departmental store, there are many things that one should consider before starting a Kirana store. Apart from all the licenses and documents, here’s everything you must think about before starting.
One of the most important things to remember is that location plays a vital role in starting any business. When choosing a location for your store, make sure that the competition around you is low, the shop is located nearby a residency and the rent of the space is not a lot. All these factors are pretty important and must be taken into account.
Once your location is decided, investment is the next important step. You can either get a franchise for the departmental store or open your own. If you decide to buy a franchise, these are the things you must keep in mind:
- When buying a franchise you pay an initial fee and ongoing royalties to a franchisor.
- The franchisee, in return, gets the use of a trademark, ongoing support from the franchisor, and the right to use the franchisor’s system of doing business and selling its products or services.
- Other than this, there are many other advantages of buying a franchise that is not given to the people starting a business from scratch.
If you are planning to open a store of your own, these are the things that you must know:
- A departmental store that is self-started is less expensive than getting a franchise.
- Investment is actually based on the location you choose, so choose wisely.
- Find yourself distributors who get you quality and nice products but at a reasonable price.
- Establishing a healthy and good relationship with your customers is another important aspect.
- Have all the necessities and are fully stocked at all times.
Related: Few Businesses Indians Can Start
- Start visiting all the stores near your location and make a list of things that they have in store. List all the brands and things they have in store and clearance bin items.
- Buying things from a distributor is a little expensive as compared to buying from a wholesaler as a distributor sells a lot of various products. They make a profit, so their prices are slightly higher if the item is purchased directly from the manufacturer.
Try to reach out to the direct suppliers and not have any middle man.
Accordingly, your profit margin is increased and it also reduces the time for the product to reach you. You can also reduce costs with any of the free inventory management apps that make tracking hassle-free
Benefits to starting your departmental store from scratch:
- A store that you start yourself is less expensive and more convenient than you buying your franchise.
- You can make your store as you want it but make sure you keep the demand and needs of your customers in mind as that would strengthen your relationship with them.
- Find out the highest selling point and keep a stock of that product.
- Keep sure you always have a stock of all the basic essentials that your customers need.
Tips to Increase Sales
Here’s how to increase your sales to the maximum:
- Make use of technology for payments and other transactions.
- Give amazing combos and discount offers to your customers.
- Get your customers’ phone numbers and share discounts and offers.
- You can keep your store open on weekends.
- Have loyalty programs that are beneficial for both customers and you.
- Offer home delivery to nearby customers.
Also Read: How to Start your Mobile Shop?
Ways to increase profit
There are many ways with the help which you can increase the profit of your departmental store. Follow the undermentioned steps and you would be successful in increasing profit:
- Open your store on weekends
- Attractive discounts and offers
- Give online payment option to customers
- Always be stalked well
- Have diverse grocery options
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How can Lio Help in starting a departmental store?
Lio is a popular app that is here to make your life much more organized and convenient. With this application, you can keep a track of all the things right from the beginning of the business to the peak.
With multiple templates for shopkeepers, one can keep a note of all their contacts, locations being shortlisted, licenses and documents required, money transactions, products required, and absolutely everything that one might want.
You can also upload your own document to the app. Add photos and you can collaborate with others on the same sheet.
Not downloaded the Lio App yet? Here is how you can start with Lio App.
Step 1: Select the Language you want to work on. Lio for Android
Step 2: Create your account using your Phone Number or Email Id.
Verify the OTP and you are good to go.
Step 3: Select a template in which you want to add your data.
Add your Data with our Free Cloud Storage.
Step 4: All Done? Share and Collaborate with your contacts.
Opening a departmental store is sure exhausting, but you are already one step ahead in the process with the given tips. Make sure you keep in mind all these things and make all the right and wise decisions to have a successful and profitable running business.
Frequently Asked Question(FAQs)
What is the Profit Margin for a Kirana Store?
Profitability for Kirana stores, apart from store capacity, in India ranges anywhere from 5% to 25% per cent.
India Kirana stores are an ever-growing market in India hence many imported and local brands compete to and reach every house in the country.
What Licenses are Required for the Kirana StoreS?
The licenses required are-
Shop and establishment registration
Which is the Most Popular Grocery Store?
What are Common Grocery Items?
The most common grocery items list in India are-
Flours (rice flour, wheat flour, etc.)
Spices (Powdered Masala and Khada Masala)