How To Set Up a Supermarket Business: Location, Cost Analysis, Feasibility study, Business Plan, Profitability
Buying and selling is what we all do everyday directly or indirectly, we ether sell product or sell our service to others just like a day job. For the purpose of this article, we would, be focusing on how to open a supermarket.
What is a supermarket?
According to oxford dictionary a supermarket is a large self-service store selling food and other goods. Definitely, it is products that are sold in supermarkets. If you have passion for selling, i.e retailing other peoples product, then it is better you startup your own supermarket chain.
Supermarket business ideas are very lucrative business opportunities if it is sited in a good location and has the product people living around that locality wants.
Complete Model of the Supermarket Business
Factors to consider before setting up a supermarket:
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- How much capital do I have?
- Where can I get goods to stock my supermarket?
- Where would I site my supermarket?
- How many staffs do I need?
- How much net profit do I expect daily?
- What commodities and products would I sell?
- How would I arrange my shelf?
- What machines do I need?
Answers to these questions on opening a big or small supermarket, which would be a prototype for this article is seen below:
How much capital do I need to have to open a supermarket?
How much investment needed to start a supermarket in India or in my country? The answer to this depends on your financial ability but it would be better you start up with something that can at least get the supermarket ready and get a little quantity of goods.
If the supermarket I setup remaining just goods, then you can go to large-scale wholesalers for goods on credit, just ensure you keep to the time frame you agreed on for the payment, he or she would be happy to give you more if you follow the agreement you both have.
Where can I get Goods to stock my Supermarket?
These has been answered above but you can also get loan from a bank to startup a supermarket, but to do that, you must have a very good business plan you would show to the bank. But these days banks do not give loans without collateral, so if this option is what you are going for, you need to get one.
Where would I site my Supermarket?
This is a very critical question to the success of your supermarket business model. Things to have at the back of your mind before selecting a site;
Closeness to residential areas.
Because these people living in these areas are those that would buy form your supermarket.
Availability of another supermarket.
Because you don’t want to start with a supermarket and start with competition form already existing supermarket. If there is a supermarket stocking general household goods, you might decide to stock more of movies, and little of household good, expect you are ready to give either N5 discount from the normal selling price to attract more customers.
Availability of road:
This is very important, because if you want customers, your supermarket should be accessible.
How many Staffs do I need to manage a supermarket?
You need to determine the number of staff you need, if it is a mini supermarket you might need just one staff for a start but if you want to run a large scale supermarket, you need at least five to ten staff members. Also ensure you enlighten your staff on how to handle customers and how to keep account of sales and purchases.
How much do I expect daily much net profit?
This is very important, you set a business goal, for instance, in three months time, I would make a profit of N10,000 naira. You work towards it.
What commodities and products would I sell?
This has been talked about before, but in addition you stock goods that of high demand, you make more sells and more sells implies more profit.
What machines do I need?
When starting a supermarket business in Nigeria, It is important you have an automated machine for your cashier. But if you have a low capital, you can get a sales book for a start. Also CCTV cameras are important mostly for large scale retail supermarkets. Because loss to thief is the last thing you would want to experience.
Conclusively, it is important to register your supermarket business with the government before starting up but on the other hand you might startup and register latter, also, the backbone of every business is having a principle. Principles such as opening your supermarket on time and if possible on the same time every day, it would make your customers know you are available at a particular time every day.
Also, it is important you set goals that improve supermarket business, and work towards it, hard work pays. Also remember to stock products that are needed by your customers.
Download a sample business plan for supermarket:
Supermarket business plan template in pdf