Due to the advent of the global pandemic, almost every business faced a downfall except for the grocery stores. Also, with the increase in the country’s population, the purchasing power of people is increasing at a rapid rate.
This is why it is the best time to open a grocery shop in India. Nevertheless, starting every business comes with its own set of challenges, and a grocery shop is no different.
Many people wish to open a grocery store but step back due to a lack of funds. However, you must note now it has become easy for people to start a grocery shop in India with a low investment.
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Ways to start a grocery shop with low investment
Starting up a small grocery shop in India is a profitable small business idea that remains untouched by the economic highs and lows. This is why many people in present times are fascinated with the idea of opening a grocery shop.
However, investment remains a principal cause of concern for many people. Hence, to help people in this regard, the Government of India started the facility of MSME loan for every small business owner.
Apart from this loan facility, there are numerous ways you can start a grocery shop in India with low investment, and some of those ways are mentioned below:
Choose the right business model
If you are low on investment while planning to open a grocery shop, you must always pay close attention to choosing the right business model.
For instance, you can initially start with a small grocery shop and then keep on expanding your shop operations once you start earning huge profits.
In addition to this, you should also consider ownership status like whether you want to open a grocery shop as a sole proprietor or as a partnership firm.
Create a business plan
Devising a business plan is again the most significant step if you wish to open a grocery shop with low investments. By formulating a plan, you can always understand how much capital you own to start a grocery shop, how to target your customers, and how to earn more profits.
Apart from this, you should also spend some time analysing your competitors and planning a better marketing strategy to remain ahead of your rivals.
Pick a suitable location
The location of your grocery shop is crucial as the client base varies from one place to another. Also, the grocery items used in metropolitan cities would always differ from the items used in rural areas.
Hence, it is significant for you to identify the right location that does not hold many competitors to run your grocery shop successfully. Also, a good shop location is essential as it will guarantee you get a considerable amount of footfall every day.
Hire the right staff
Now that you are done with finalising your grocery shop location, the next thing that you would require to do is hire the right staff.
Furthermore, if you are starting a grocery shop with a low investment amount, you can initially hire just 1 or 2 staff members and then increase your team once you start earning some profits.
Get all the legal formalities done
To run a grocery shop without any hassle, you should always complete all the legal formalities timely while opening a grocery shop in India. To start with, you should always get your shop registered.
Also, if you have taken the premises on rent, always make a rent agreement that includes all the details like the maintenance charges, rent, renewal terms, etc. to save a lot of expenses in the future.
In addition, to run a grocery business, you will also require a trade license and a GST registration number if your annual turnover exceeds Rs 20 lakhs.
Check your grocery shop loan requirements
The average cost of opening a basic grocery shop in a local area in India ranges between Rs 1 lakh to Rs 2 lakhs. However, if you think you do not have sufficient funds to start even a basic grocery shop then you can always opt for a business or an MSME loan.
Nowadays, it has become effortless for every person to get an MSME loan without any hassle to start and flourish their small businesses. Hence, with a business loan, you can easily fulfil your dream of opening a grocery shop even if you have a low investment amount.
Market your business effectively
Once you get done with the business loan formalities, you must shift your entire focus towards planning effective marketing strategies to take your grocery shop business to a whole new level and earn huge profits.
To market your business effectively, you can take the help of online platforms and must allocate some of your funds strictly for advertising purposes.
Start the online ordering facility
Nowadays, everybody wants to get things done within a click. Hence, to attract more and more customers to your grocery shop, you can start the online ordering facility through a mobile app.
Also, to make things more hassle-free for your customers, you can start the facility of home delivery of the grocery items. This will not only help you earn huge profits but also reach a wider client base.
By following some of these effective ways listed above, you can quickly turn your small grocery shop into a big supermarket. However, always pay proper attention to legal compliance and wisely choose the loan partner if you wish to get an MSME loan or receive the benefits of the PM Svanidhi scheme.
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Frequently Asked Questions
A grocery shop is a store that sells food and household supplies.
Yes, you can avail of a grocery business loan of Rs. 7.5 lakh from Ziploan within three days*.
It just requires common sense and the ability to stay completely organised, honest as well as compassionate. Selling grocery items is one of the most profitable ventures of all time.
Grocery stores store sell most types of food and daily needed items. They’re often privately owned and operated. Whereas a supermarket that is part of a chain is usually very large and may offer many choices and brands.
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