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Guide to start a supermarket

6 Simple Steps to Set up Supermarket

We guide you how to set up your first supermarket store like a PRO

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6 steps to launch your store

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How to set up a supermarket in India?

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An Introduction

The present generation is all about entrepreneurship. India's younger generation constantly focusing on low investment business plans with good profit. As there are so many options, Indian people constantly fall for the grocery store or a supermarket, which is a convenience store.

The supermarket or a grocery store is the place for household requirements. This store includes -- beverages, candies or chocolates, cleaning material required for houses, self-care products, and lots of things used in our routine. The store provides easy access goods for our household routine.

So, let's dive into how to start a grocery store in India with a good business plan on low investment.

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Create a Business Plan

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Have a right business plan

A business plan is always the first step in each business. The business plan for your supermarket should cover your most basic needs. Some of the basic needs for the business plan are -- planning for a physical or online store, the list of items you want to focus on, inventory cost, product pricing, competitive analysis, marketing plan, business operations, financing, and other similar factors. Further, you must have a clear picture of how to calculate startup costs for small businesses.

A business plan gives you the path for your convenience store. If there is a need exist to obtain a loan for a grocery store, make sure to have a thorough business plan. There are lots of sources available to offer a business loan to start a supermarket business.

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Pick you location

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Have a perfect business location

Location plays a major part in your grocery store if you are going to start physically. First, you need to find the right spot for your convenience store or grocery store. Your store should be easily accessed by your user without difficulties. Try to choose a location with a less competitive area.

If you are going for the online store, make the website user-friendly. List all your product with a nice website design, to attract the customer.

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The Right Strategy

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Perform Feasibility Study

The feasibility study is the estimation of business cost and value proposition via, strengths, weaknesses, possibilities/opportunities, and threat analysis. In simple, the feasibility study will tell you the success possiblity for your grocery or a supermarket store.Anyways, a feasibility study is one of the elements of business planning. If you plan your business with low investment, it is known that you will get returns. Make sure you will not compromise on the quality of the products to make your investment low.

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Grab customers attention

When considering the physical supermarket, two things are more important for your grocery store -- Easy to access and attractive.

Customers love to visit and revisit your convenience store if you have a nice stock alignment, cleanliness, clear price tags, efficient salesperson to help with and the product should be focused on the right site. Excluding the product quality, these are other points to look at.

Check for supermarket product placement planning ideas to make your store super attractive and easily accessible.

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Find a Good Source

If you want a potential customer, you must have the potential products as per the need of your customer. So you must have a reliable vendor partner. Identify the potential wholesale distributors and manufacturers and make good relations with them. Choose the person who gives you inventory at a good rate.

When you build a highly trusted relationship with the supplier, you can bargain and as a result, you will have comparatively low investment.

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Plan Operations

Once you found the right and efficient supplier, the next step is to plan for your convenience store operations.
 

  • Whether you are planning to hire employees?

  • Whether your family is going to help you?

  • What would be your physical store expenditure?

  • Would you like to offer home delivery?

  • If yes, what is the method you are going to proceed with?

  • What is the type of payment you are going to offer for your customers?

  • Any plan to build an online store?

  • If yes, then think of the website, how to build, the home delivery process, and so on.

You must have a clear-cut operational plan to start your grocery store or a supermarket.

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Supermarket Registeration

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It's time for shop registration

Registering your store is the initial stage to standardize the process. Here is a list of things to consider for store registration.

  • Make sure to register your store beneath a sole proprietorship, partnership, or other ownership choices.

  • For your grocery store, obtain a trade license

  • You need to proceed with business registration under the Act of Shops and Establishment 1953.

  • Obtain an FSSAI license

  • Consider for other tax-like registrations such as -- getting a TAN, GST number, etc.,

    Further, there might also be other needs for registration based on the direction your business takes.

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On GST registration,

  • If the business annual turnover is less than 20 lakhs, get your supermarket business GST registration accomplished to receive your 15 digit GST.

  • Some businessers bypass the Non-GST companies as every transaction is recorded, and it might result in a violation of tax. 

Other for legal formalities

Make sure to receive a Food license, entity registration, shop, and establishment registration. You need to visit the license authority office to obtain the licenses to set up supermarket in India.

Register your business

Get GST Number in 3 Days

Online Store

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The Super Duper Way

The online store is one of the trending parts for most of the stores. It is always profitable to start an online store to sell your products. You can enjoy lots and lots of benefits of starting an online store. The online store will improve your customer loyalty and retention. In the present digital world, people love the online store.


Even small retail businessers, grocery store, and supermarket owners can start their online stores. It attracts more users. But, when it comes to small businesses, it's hard for them to afford an online store. But here is the best solution for small grocery businessers. Try using SNAPOS, the affordable online store builder. Every grocery store businessers can afford it. 


SNAPOS is one of the simple and inexpensive applications. Get your POS system and an online store with one single SNAPOS app. 

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Dive for Advertising

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Best for business growth

You have planned a perfect place, you have built your store successfully, then what next? You should create brand awareness about your shop, i.e you should make people know about your Kirana store so that you can reach more audience. For potential customers, you need to work hard with smart moves.

  • Try to use flyers

  • Plan for an inauguration function

  • Reach out manually for your potential customers

  • Start engaging more on social media

  • Try to run an ad by focusing local area

  • Add your business on Google My Business

  • Place your business in local newspapers


There are more smart ideas for marketing your supermarket business. Learn for that business marketing strategy to reach more potential and target audience.

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POS System with Online Store

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Effective POS app

Choosing POs is one of the important parts of your convenience store. Try to pick the POS software for a supermarket that holds your needs with the online store. SNAPOS is one of the best software for supermarket and grocery stores. It is more affordable in the POS software market. You can start your online store, can make billing, can manage customers effortlessly and inventory, and more features just for your grocery store.

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Simple POS billing software

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All your need with one SNAPOS app. Get your POS system and Online store in one app. 

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Accounting Software for your Store

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Software for Inventory Management

You can also try using some simple accounting software like mybooks if you would go for an advanced option without an online store. For easy GST, inventory management with low stock alert, accounts payable and receivable, multi-business, multi-user role access, barcode billing, 25+ report with lots and lots of features, if you would like to focus more on accounting, go for accounting software like mybooks.

Make your business accounting ease

Manage your business inventory with mybooks accounting app. Seamless billing & invoicing with multiple templates. The free app for accountants

and non-accountants. 

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So, why set up a grocery store?

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In a country, there are 12.8 million grocery retailers as an approximation. Thinking about what might be the reason to start a convenience store? Grocery is the most extensive consumer element in India. In estimation, India spends 50% more than its monthly disposable income.

Even most people realized, during the coronavirus pandemic most businesses went lost and loss, because there does not exist any need for that business among people. But grocery was running -- reason, people cannot survive without the basic needs. Further, in a survey, 62% of Indians reported as they spend their most time on groceries and food.

If you still can't be compromised, then did you know that 98% of the grocery market holds kirana or small, local stores? Yes, it's a true fact. The reason behind this is, people love to be convenient to make their daily routine easy. People want to buy their grocery items as soon as possible without waiting so long in the queue. The grocery store does this. Additionally, you can purchase at local stores on credit and can pay later, which cannot be done at the larger stores.

Financial Plannings

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To start your grocery store as per your needs, on initial you might have the necessity of some financial investment. Even though you have a business plan with low investment needs, you might have the necessity of some financial investment. There are lots of financial institutions and banks that provide you the business loans to start your business operations.

For your new grocery store, you can utilize a

  • Small business loan,

  • Flexi loan,

  • Term loan,

  • SME loan,

  • Or even a grocery store loan

For managing the inventory stock on regular basis, the working capital loan can be considered. This kind of business loan can be sanctioned, only if you have a credit history and prior business experience. Those who are weak in these fields can go for the Gold loan.

Get your business insured

Business insurance shields you from the unforeseen expenses of running a business. Natural disasters, accidents, and lawsuits could run your business out if you’re not guarded with the suitable insurance.

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Coverage for lawsuit & settlements

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Aids in risk-sharing

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Minimizes financial loses

Frequently Asked Questions

FAQs to set up supermarket

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Do I need an FSSAI license before my grocery store opening?

Yes, it is mandatory for a grocery store. FSSAI  stands for Food Safety and Standards Authority of India.

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For an online store, how to choose a store name for my domain?

Make it unique, short, and relevant based on your supermarket. Use godaddy.com, namechk.com, etc., to make your task efficiently.

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How much profit does a grocery store make? 

The profit expected -- profit margin of 35% to 40% for a grocery store in India. The grocery store profit may vary based on the maintenance and quality of the product. 

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Is it profitable to open a supermarket?

In India, most grocery stores are profitable. Food Industry and Consumption is one of the most profitable businesses which tops in India.


Moreover, based on your product quality, the location you choose, your customer relation, the MRP on each product, listing the product as per the customer needs, the payment they make without outstanding,  and your marketing the profitability for the supermarket may vary. 

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How much does it cost to open a supermarket?

The cost of the store may vary based on the size of the store. Moreover, you can start your grocery store or a supermarket with from minimum of investing 10 lakhs to more than 2 Crores. This investment is done by including from registration to hiring an employee. 

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Do I need software for my supermarket or grocer business?

Yes, it is so good to use the software. The software will guide you on the right path. For basic grocery stores, you can use a grocery POS system like SNAPOS, and for one step advanced stores can use simple accounting software like mybooks. It will not affect your business budget.