Are you thinking of starting a Kirana shop but are unsure how to go about it? Well, we have you covered. Here is a step-by-step guide on how to start a Kirana store in India.
Chalk out a business plan
First off, prepare a sound business plan by assessing the market, target customers, and your competitors. By analysing your customer base, you can choose the appropriate location and the kind of products you will sell. Also, study your competitors and what they sell to attract more customers.
Next, highlight all the areas that require funds and figure out factors such as:
- Obtaining licenses
- Choosing a vendor
- Setting up a delivery method
- Securing equipment
- Paying rent, utility bills, etc.
Secure a finance option
Now that you have a business plan, the next step is securing the funds for your business. You can consider taking a business loan from a credible lender. It is an efficient way of ushering funds for your enterprise without digging into your hard-earned savings.
You can use a loan EMI calculator to figure out your future expenses like monthly instalments and overall interest payable and plan your repayment.
Additional Read: Trends post-pandemic and how businesses can adapt to them
Remember that opening a store is not the end of your worries as you must work hard to sustain it. Purchasing inventory is a crucial step in your journey to regularly attracting customers. You must choose the products as per the demand in your locality to decide what goes up on the shelves.
You can purchase products either directly from wholesalers or a distributor. Nowadays, you can also invest in inventory management software that automatically manages stock lists and re-order unavailable items. With lenders offering competitive business loan interest rates, you can easily finance your inventory purchases.
Hiring a workforce for your shop depends on the size and requirements of your business. You must employ trustworthy and motivated personnel who are willing to learn on the job and can handle customers with a smile. However, avoid hiring additional personnel before profits start rolling in.
If you opt for business finance, you can pay your employees with ease, even during off-seasons. Remember to check your preferred lender’s business loan eligibility terms before applying for a loan.
Don’t neglect marketing
When it comes to promoting a business, you must choose the best medium for your target audience and potential customers. As a retail shop owner, investing in direct marketing, print advertising, and mobile marketing will be profitable for you. Thus, printed flyers, newspaper ads, and social media advertisements are the way to go.
Additional Read: How SMEs can manage their finances better post-COVID
The bottom line
Now that you know how to start a departmental store, Tata Capital can help you bring your vision to life. How? Through our business finance offerings tailored to meet your specific needs.
With Tata Capital’s collateral-free business financing, you can secure an amount as high as Rs. 75 lakhs. Enjoy speedy processing, attractive interest rates, flexible EMI plans, and more.
So, check out our easy eligibility and minimal documentation requirements and apply now!