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How to start a Kirana Store | Here’s all you need to know

You can see small to big Kirana stores in every part of the city. In fact, the demand for these stores is never less because they make life easy. However, it might seem difficult to start a business. But, there has to be an easier way. Here is that easier way for how to start a Kirana store and earn profit from it.

1. Business plan

It is necessary to make a plan before starting a Kirana store.

With this in mind, you need to list all essentials you will sell in the store. Also, figure out the investments and expenses to have an estimate of the funds required.

While making a business plan, keep in mind the following things.

  • Decide the size of the store: The smallest store requires 200 square feet of space, although it is up to you and your budget limit.
  • Investment: In the initial phase, you need to invest at least Rs. 50,000 – Rs.1.00,000 to start.
  • Stock Sourcing: Make sure that your shop has everything that is required in the neighbourhood and it looks full of goods. It will help you in creating a customer base.
  • Keep Extra Safety Funds: Keep an advanced six-month capital for safety purposes.

2. Business Registration

There are two ways to register a business, online and the traditional offline method. However, online company registration can help you with a hassle-free process. Also, it can save your time of running everywhere. In fact, the team of experts handle everything professionally.

You should also register your store under MSME/Udyog Aadhaar. With this, you can benefit from several government schemes and your store can perform much better.

3. Acquire License and Permits for Kirana Store

  • Trade license (if required)
  • Food license (FSSAI)
  • GST Registration
  • NOC
  • Shop Act and Establishment License

Firstly, if a business is registered, it increases the credibility and reliability of the customers towards the store. So, whenever you are looking for how to start a Kirana store, always remember to gain the customer’s trust.

Secondly, a trade license is only required in some states. Therefore, check with your local municipality if you need one.

Thirdly, a food license (FSSAI) is necessary when you are starting any food-related store. Also, take a printout of this certificate and put it in your shop after receiving it.

If you are thinking of starting a small Kirana store, then GST registration is not essential. But, if your annual turnover is Rs. 20,00,000 or more annually, you should register for GST Certificate.

Also, if you want to start your store as a brand, you can go for trademark registration of your name and logo. Have a look at food product trademark class to find out if you need one.

Lastly, you will need a NOC from the neighbourhood to open your store at the location.

4. Investment/ Expenses for Kirana store

Below is the list of all the expenses explained of the Kirana store:

  1. Rent

  2. Stock

  3. Utility Bills

  4. Interior

  5. Furniture

  6. Registration

  7. Fittings

  8. Logistics

  9. Salary of Employees

  • Cost of buying or renting a Kirana store.
  • A counter and a shelf will be needed to store the furniture.
  • The investment in the goods/ items can range up to Rs. 50,000 – Rs. 1,00,000 initially.
  • You have to spend for Registration of GST, Food and other License if needed.
  • Marketing is up to you. You can distribute pamphlets to your known. If you want can hire an agency for marketing purpose
  • The cost of the shop, furniture, interior, and licenses is one time.

5. Location and layout for the Kirana store

To make a profit in this business, the store must be in an established location. Then it runs in that place for a long time.

Therefore, it is necessary to select a particular place to set up a Kirana store.

Keep in mind to check that there is no other grocery shop near the shop you are opening. Otherwise, it affects the business of both.

Layout for Kirana store

Kirana store layout should be simple according to the good’s capacity.

  • You have to design the Kirana store that the consumers can see all the items in one view.
  • Your shelf should be such big that a maximum number of items come in one block. Also, you and the customers keep seeing the goods.

To keep the goods separately, you can build a warehouse behind or near the shop.

6. Source Products and Items

At the beginning of the Kirana store, you need to keep different types of stuff.

After some time, you will understand which product is in demand and which one is not. According to your experience in the store, start increasing or decreasing the items of the Kirana store.

Few items you should keep in your Kirana. For example:

  • Desi Ghee
  • Oil
  • Bathing Essentials
  • Spices
  • Cleaning Essentials
  • Pulses
  • Rice
  • Wheat
  • Flours (Atta, Maida, Suji, Besan etc)
  • Coffee/ Tea
  • Detergents
  • Milk
  • Bread
  • Egg
  • Vegetables/Fruits
  • Ice-cream
  • Milk shakes/ Juices (Tetra Packs)
  • Pooja Samagri

7. Hiring for Grocery Store

You cannot run a store alone, as there are many duties under it. Because of this, you need good staff who can run your store faithfully even in your absence. You have to select a practical person for your store, who is courteous towards the customers and does all the work with perfection.

In fact, you don’t need to hire a lot of people. You can go for just two or three helpers depending on the size of your business.

Now, as you know the complete process of how to start a Kirana store, let us move forward to some crucial tips and how to earn profits.

Tips for Kirana Store Owners

  • Sell Different variety of Products

Customers usually like to buy products, where they get everything at once. Keep all those items which your customer needs daily.

  • Match your customer’s needs

In such a situation, keep only those goods in your shop, which are in high demand among the consumers.

  • Display all your products

It is essential to show off as many products as possible to the customer. This strategy helps in increasing sales.

  • Be polite to your customers 

Customers come to the grocery store again and again. If good, then customers will never stop coming to your Kirana store. Always treat the customer well.

How to Increase Profit in a Kirana store

  • No one has time nowadays. Nobody wants to waste time buying stuff that is not essential to them. In such a situation, the more customers you are with, the more customers will face you.
  • You may have bought a lot of stuff together from the supermarket. But we keep needing new things every day, which grocery stores fulfil.
  • It is a Low Investment business. You do not need to invest a lot of money to open a Kirana store. Initially, you can start this business with less money. Keep increasing your business as the work progresses.
  • Fresh food items: Frozen food is rare in India. Many consumers want to buy one-two days’ frozen food items instead of bringing one-two months’ food items at once.
  • Kirana store saves everyone’s time and money. It is easy for consumers to get items from the Kirana store outside their homes or apartments. These Kirana stores save both time and money.
  • Fulfil everyone’s needs: India is known worldwide for its diversity. You will find people of different religions who speak different types of languages ​​in the same city. Kirana stores meet all your needs by carrying products to suit your needs.

Also, if you can go through how to start a departmental store for further reference.

Author Name

Geeteshree Singh Panwar

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