Opening a side business at home today can be a profitable source of additional income. One of the small businesses that might be tried is opening a grocery store. Yes, opening a grocery store can be one of the profitable side business opportunities. This one business can be said to only require small capital, and if it is run, it will get abundant profits. Grocery stores are small-scale stores that sell various daily necessities. Generally, these stores are local and easily accessible. Despite the digital age, grocery stores still exist because of their easy reach, lower prices, and convenience due to the intimate interaction between sellers and buyers. However, starting a grocery store business cannot be done carelessly. You still have to have strategies and ways so that the grocery store you open can be in demand and successful. Therefore, in this article, we have summarized for you tips and ways to start a grocery store business.
How is the Grocery Store Business Opportunity?
Before discussing further about the strategies and tips, you must first understand how the business opportunity of the grocery store itself. Grocery stores are present in the midst of society to provide the basic needs of the community. Quoted from a book entitled ‘Entrepreneurship’ written by Suharyadi, a grocery store is a business that sells daily necessities, such as rice, eggs, cooking oil, sugar, salt, vegetables, and so on. Grocery stores have several uniqueness that make them different, including operating hours that are mostly 24 hours, a large selection of products at affordable prices, and in some places can pay by kasbon (debt). Many people underestimate this form of business. In fact, the turnover opportunities that can be obtained by opening a grocery store can be said to be quite fantastic. Yes, although there are now many modern retail stores or supermarkets, the existence of grocery stores is still needed in the midst of society. From time to time, grocery store enthusiasts still survive and choose to shop there. Moreover, grocery stores are also included in the MSME group which plays a role in driving the wheels of the national economy. Not surprisingly, because of its promising opportunities, grocery stores are the choice for many business people to become business ideas.
How Much Capital to Start a Grocery Store Business?
Capital is something that cannot be separated in business activities, as well as in the type of grocery store business. Here we provide an overview of the capital needed to run this business:
Required Equipment
- Glass showcase Rp1.5 million – Rp2 million
- Medium-sized wooden table IDR 300,000 – IDR 600,000
- Large size shelf Rp800 thousand – Rp1.5 million
- Cashier drawer IDR 200 thousand – IDR 300 thousand
- Digital calculator Rp40k – Rp70k
- Small scales Rp250 thousand – Rp300 thousand
The list of equipment above are tools that must be owned to open a grocery store business. From the list above, the range of capital needed to get the equipment is IDR 3,090,000 – IDR 5,270,000.
Must-have products
- 50 kg rice IDR 500 thousand – IDR 600 thousand
- Cooking oil 2 liters carton of 12 Rp150 thousand – Rp200 thousand
- Gila pasir 20 kg IDR 200 thousand – IDR 300 thousand
- 10 boxes of instant noodles IDR350,000 – IDR400,000
- 10 kg wheat flour Rp80 thousand -Rp120 thousand
- Eggs 1 crate IDR350 thousand – IDR400 thousand
The list of items above are basic items that must be present in a grocery store. From the list above, the range of capital required to provide these items is Rp1,630,000 – Rp2,020,000.
Optional Products
- LPG gas 3 kg or 12 kg
- Kitchen spices such as garlic, onion, pepper, coriander, etc.
- Food and soft drinks
- Frozen food products
- Cigarettes
The items above are optional items to sell at the grocery store that will add to the variety of product choices for customers. By adding these products, you may need additional capital of around Rp2 million to Rp3 million. From the explanation above, it can be seen that the capital needed to open a grocery store business is in the range of Rp6,720,000 – Rp10,290,000.
So, how to start a grocery store business?
Now you know the range of capital needed to open a grocery store. Now, if you are interested and think you have enough capital, there are several ways to make your grocery store business run smoothly and profitably:
Choose a Strategic Location
If you want to start a grocery store business, then you need to determine the right and strategic location. This can affect the success of the shop business later. Since grocery stores sell a variety of daily necessities, you need to have an easy access location that is ‘visible’ to customers. Generally, grocery stores are located in the middle of residential areas, on the side of the road, or at home if you have more land that can be utilized.
Conduct Market Research
After determining the location for the next grocery store is to recognize market research. Although it is a home business, this needs to be done to find out what products customers need so that you can sell the right products. If you know this, then you will maximize sales and ultimately have an impact on profits that will also be greater.
Work with Distributors
Next, to fill your grocery store, you’ll need a distributor. Look for distributors who can be trusted and offer lower prices so that the supply of goods in your shop is maintained and can increase spending efficiency. Currently, there are many choices of distributors, and some are even online. You can prepare a list of distributors and compare them in terms of price, delivery process, completeness of goods, communication compatibility, and more.
Give the Best Service and Promotion
If the grocery store has started operating, don’t forget to provide the best service so that customers have a reason to return. Another thing that can be done is to provide price promotions by making grocery packages that can be cheaper than buying individually. You can also provide delivery services to customers’ homes to make it easier and more enjoyable for them.
Do Financial Bookkeeping Periodically
Another thing that is equally important in the success of a grocery store business is financial bookkeeping. This aims to record all activities that occur so that you will easily track your finances. Separate personal finances with grocery store business finances so that they are not mixed up and avoid using the money from selling for personal needs. This can also make it easier to calculate how much profit and loss you get.
How about the Grocery Store Business License?
In addition to the five things above, it is important to know that grocery store business actors also need to take care of business licensing. Based on the Regulation of the Minister of Trade No. 26 of 2021 concerning the Determination of Business Activity Standards and Products in the Implementation of Risk-Based Business Licensing in the Trade Sector, retail trade activities for grocery goods that are not carried out in the form of department stores are required to obtain a business license. This criterion is actually in accordance with the grocery store business model currently circulating in Indonesia. Specifically, the grocery store business is classified in the Indonesian Standard Industrial Classification (KBLI) 47192 with a description of the KBLI criteria, namely “Retail Trade in Various Kinds of Goods Which are Mainly Not Food, Beverages or Tobacco (grocery goods) Not in Department Stores”. Based on the KBLI, a grocery store only needs to apply for a Business Identification Number (NIB) as part of its business license. This NIB for grocery stores will also function for several things, namely:
- Business registration for BPJS Health and BPJS Employment
- Get assistance to make halal certificates
- Recording or storing business data
- Obtaining financing facilities from banks
- Opportunities for training
- Opportunity to procure (tender) government goods/services
- Obtaining incentives and various other business licensing facilities from the government
- Obtain facilities to enter into partnerships with medium and large enterprises
- Potential to expand its business
- Guaranteed protection from the government
KH Contact
Thus the explanation about the grocery store business, ranging from opportunities, capital range, to tips for starting it. Hopefully this information is useful for those of you who want to run a grocery store business, yes! Apart from capital and strategy, another thing that is no less important is to take care of the grocery store business license in the form of NIB.
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If NIB and Business License have been obtained, then business activities will become easier and smoother. So that any problems related to permits can be resolved properly without any obstacles.
No need to worry, now the NIB arrangement for grocery stores has also become easier thanks to the existence of Kontrak Hukum. As a digital legal platform, we can help you to take care of making NIB easily and affordably, making it very suitable for MSME players such as grocery stores. For information on ordering services, visit the KH Services – Business Licensing page. If you have questions about other business and licensing needs, you can also consult for free at Ask KH or send a direct message (DM) to Instagram @kontrakhukum.
