Starting a convenience store, just like any other business, requires funds, planning, and time. Convenience stores are in demand all over the world which makes them a good deal to start with. With the right location, the choice of stock items, and a price list, you can start making a profit immediately after opening your shop. Read on to learn how to start the convenience store of your choice.
Steps
Step 1. Decide if you want to open the shop from scratch or if you prefer to start a franchise
A lot of money can be requested either way, but the franchise can be easier to manage in terms of marketing, advertising and other operations aimed at opening it. You will likely have to pay a franchise fee on profit, but this can be a lot easier than doing it all yourself.
Step 2. Develop your business and marketing plans, regardless of whether you are opening your own store or franchise
While it may be slightly different for a franchise in that you don't need to have your own ideas about marketing operations and because you have business practices outlined, these documents generally help secure funding. If you don't have any at all, you may run into trouble raising the necessary capital.
Step 3. Secure the necessary funding
Your franchise may require a certain amount of available funds in order to start the business, as well as a certain amount of capital set aside to protect the business from bankruptcy. The exact figure varies based on many factors, including if you are buying or renting a place and if you are converting a building with other initial purposes into a shop or if you are using one already prepared for this type of activity.
Step 4. Obtain all necessary licenses, permits, and insurance coverage to run your business
Make sure you comply with all local, regional and state guidelines. Insurance will protect you from theft, but at the same time help compensate workers in case an employee gets injured on the job.
Step 5. Make sure you are in a good position
The choice of where to place the store is everything for convenience stores. As the name suggests, these should be comfortable to reach. Shops away from the more popular center may have a solid local customer base to refer to, because people don't want to go all the way to the grocery store in town; conversely, shops close to the freeway can generally secure traffic for travelers unfamiliar with the area.
Step 6. Buy all the useful equipment for your shop
You will need a security system with cameras and alarms, a cash register, drink coolers, shelves, and a credit card reader. If you use a building that is already in charge of commercial operation, you will not need to purchase the aforementioned equipment in its entirety.
Step 7. Establish relationships with suppliers
You will need wholesalers to supply you with the goods you will sell, which include food and beverages, cigarettes, alcohol, stationery, household goods and fuel.
Step 8. Stock the store accordingly
Organize the store shelves by arranging the items for sale. Make it easy to order and restock. Place the most expensive or easiest-to-steal merchandise in sight of the clerk and security camera.
Step 9. Hire employees
You need trusted collaborators in this business, so that you won't have to bear to see your merchandise, as well as money, lost. Be thorough in your interview, check references, consider previous work experience and the drug test.
Step 10. Open the shop to do business
Advice
- It really is a starvation business. Remember that the smaller the store, the larger the quantity of goods sold wholesale will be. The big gas companies won't give you anything for free, and that goes for everything else, including the simplest credit card business transaction. Don't expect to make big bucks right away.
- Choosing to sell fuel is an option that can yield a lot of money. However, if pumps and tanks aren't available there, doing so could be too expensive an investment to start.
- An alternative to opening your own shop from scratch would be to buy a shop that has been running for some time. Much of the process would remain the same, except that the management of the business would be directly transferred from the original owner to you.
