The Business Idea: How to start a Grocery store

How to start a grocery store

Since starting a grocery shop does not require a huge sum of money, it is actually easier than you think to establish one. A successful grocery business requires ample stock according to customer needs. Apart from that there are some other requirements, of which we will take a look here

1. Research

As the customers that visit a grocery store are not demographic specific, it is very important to discover a niche when you start your own small grocery store. It can include, niches like ethnic, Gluten free, organic, frozen foods grocery store etc. The competition will always be there from companies like Walmart but you can cut your share by catering to the needs of your chosen customer base efficiently.

2. Plan for your business

You should plan on how to launch your grocery business, on a franchise model or your own set up. If you choose for a franchise model you will get assistance for marketing and many other startup tasks. However it requires more investment initially. If you want to set up your own thing, you will have more freedom and give customers a local business feel.

You should include sources of funding in your business plan. Use your plan to showcase your vision of a successful business model and lure potential investors. Apart from relying solely on bank loans, you can think of raising funds from family, friends, partners and government programs. Write down all your plans and you can seek professional help to organize it properly.

3. Legal requirements

To start a grocery store the law requirements vary from state to state. You can know more by contacting the local departments of commerce and licensing. The following legal documents are a must:

a.) Federal Employment Identification Number (EIN)
b.) Certificate of Incorporation
c.) Business license
d.) Employment agreement
e.) Non disclosure agreement
f.) Insurance Policy

The State department of health and the local fire department will inspect these documents before you open your store.

4. Location

Find a location for your grocery store which is convenient for customers to reach and gets maximum attention. Allocate space in front of your store for car parking.

5. Equipments required

Equipment required for your grocery store will depend on what you sell but some common equipment are Security systems including cameras and alarms, cash register with credit card swiping machine, Freezers and refrigerators for storing perishable food items, shelves for displaying products to be sold.

6. Find the right suppliers

Develop a network of suppliers who will provide the goods for your store. You can tie up with wholesale suppliers and think of picking up and transporting the items yourself to save money. If you are planning a small store you can buy your goods from price club stores.

7. Strategies needed for marketing

Your marketing tactics should start right from the shelf. You should form a strategy on where to place your products on the shelves. Try to place items logically. Use traditional marketing platforms like newspapers and direct mails. Coupons and information regarding sales and new items are a must. You can also think of implementing a grocery delivery system as part of your marketing tactics

Watch out for thefts

Implement proper security solutions to avoid thefts from your grocery store. You can think of placing hidden cameras and alarms, even employing a security personnel won't be a bad idea.

Ways to attract customers

By providing excellent customer service and having good product knowledge you can persuade customers to visit your store. You should be able to convince customers to buy from you by providing quality products and services. Do things that are different from your competitors and which will win the hearts of your customers.


Starting your own grocery store is not something unachievable. With a proper plan in place and a go for it attitude you can easily start your own grocery store with minimum hurdles.