How To Start A Provision Store

Olajumoke Tolulade


A Provision Store (otherwise known as a grocery store or a supermarket) is a retail store that sells fresh or processed food items together with other daily necessity products and household goods. They are priceless because they meet the everyday consumables of their customers.

Provision stores are profitable, easy to set up, and of different sizes ranging from roadside stores to supermarkets. The success of most provision stores depends on the management, location, and ease of accessibility of the store.

Examples of items that are sold in a provision store are:

  • Toiletries
  • cosmetics
  • Batteries
  • Snacks
  • Assorted Drinks
  • Kitchen utensils
  • Gift Items
  • Electronics
  • Stationery, etc.

The steps involved in setting up a provision store are as follows:

  1. Get Your Capital Ready
  2. Construct a Business Plan
  3. Register Your Business
  4. Rent a store/shop
  5. Renovate and Shelve the Store
  6. Look out for Wholesale Provision Distributors
  7. Stock The Store
  8. Arrange The Goods
  9. Pricing of Goods
  10. Regular Record Keeping

Get Your Capital Ready

Business Capital in this context is the money you intend to invest in or start up your provision store. Your capital determines the size of your provision store. This implies that the size of your store depends on how much you invest in it. It's better to start with what you have at hand than not do anything at all. You can source funds from your individual servings, friends, relatives, commercial bank loans, government grants or subsidies, etc.

Construct A Business Plan

A Business Plan is a document that explains in detail a company's objectives (in this case, your provision store) and how it plans to achieve its goals. A good business plan guides you through every step of starting and managing your business. It helps you to determine your business's future financial requirements thereby attracting investors and lenders.

Register Your Business

Registering your business with the state or local government makes it a legitimate business, helps to eliminate suspicion, and establishes customers' trust. With your registered business legal documents, you are able to open a business account easily with your choice bank; as well apply for small loans, grants, and contracts from the government. Investors and lenders will not hesitate to come in. You stand to enjoy some supplier discounts and wholesale reserve rates that are strictly for legitimate business.

Rent A Shop/Store

When renting a shop/store for provision store, it's advisable to get a store in a conspicuous and easily accessible place so that all and sundry can locate the store with ease, which will in turn leads to the fast growth of the store.

Renovate and Shelve The Store

At this stage, repainting, installing light fixtures, and mounting shelves in the store come into play. A well-renovated store is usually attractive and welcoming. It increases efficiency, promotes your business, and instills confidence in your customers.

Look Out for Wholesale Distributors

Please note that, whenever you buy goods expensive, you in turn sell costly. When your prices are higher than your competitors, it drives your customers away. That's why buying directly from wholesale distributors is very important. They buy directly from the manufacturers and give it out at a cheaper rate. Ensure you always look out for them whenever you go to the marketplace to buy goods for your store.

Stock The Store

When Stocking the store as a newbie, do thorough research about goods that a sought after in your neighborhood, then go for them. More so, always ensure the products you purchase are genuine, of good quality, and not close to expiration. With this, you gain the confidence of your customers.

Arrange The Goods

This is a very important step. Arrange all the items in categories to ease accessibility. You give every item in your store a high chance of being sold fast when you organize and display them very well. Avoid congestion and disorganization at all times because they have a tendency to reduce your sales.

Pricing The Goods

There are several pricing strategies, but the five common ones are:

  • Keystone Pricing
  • Competitive Pricing
  • Cost-Plus Pricing
  • Markup Pricing
  • Demand Pricing

Whichever pricing strategy you adopt, always ensure that your Selling Price covers your overhead expenses so that you will not run at a loss. Also, endeavor to provide excellent customer service because it promotes the effectiveness of any pricing strategy.

Regular Record Keeping

This has to do with keeping accurate track of the incoming and outgoing cash or cash flow of your business. This is a crucial part of any business that must attain its height and it is useful for both legal and financial management purposes as well. It helps you to see at a glance the performance of your business and projects for the future. You can download bookkeeping or accounting apps on your phone for consistent recording. I advise you to select from the high-rated ones.

If you have any questions about setting up your provision store or concerning any of the steps discussed above, leave your comment below. I will be very glad to offer you advice from my well of experience.

 

 

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