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Launching a small grocery shop can be a fulfilling and rewarding endeavour, but there are a range of factors to consider before you begin. From the skills and the equipment to the mandatory licences, this guide will demystify the process for you.
A grocery store business is a food seller that typically operates in a city where there is less competition from nearby supermarkets. A grocery shop sells groceries, drinks or specialty ingredients that aren't available locally.
There are no prerequisites for starting a small grocery shop. However, writing a business plan can help you get off to a successful start.
Here are some of the key aspects to consider when writing your plan:
Trained workers that your grocery store might need include:
There are also government courses available for anyone interested in retail operations and management. These courses cover essential knowledge for running a grocery store. The courses available include:
Before you begin, you'll need to invest in equipment and software. Essential equipment might include:
Good software not only helps you grow the business, it can also save many headaches when it's time to count stock or file tax returns. Software to consider:
To start your business, you will need to decide on a business structure. There are three common types in Australia:
Deciding on a business structure is only the first step. To start a company in Australia, you need to register for an Australian Business Number (ABN). You'll also need to register a business name and open a business bank account.
There are several licence hurdles to pass before launching your grocery business. Different councils across Australia require different licences and, depending on the food and drink products you are selling, you may be required to get the following:
Business.gov.au can provide you with a list of licences you'll need in your specific area.
Visit the Australian Institute of Food Safety for more resources and information about food safety standards across Australia. Alternatively, if you need any legal help or guidance you can compare online legal services below.
From covering rent to furnishing your store and buying inventory, starting a grocery business can require high initial investments. However, with the right financing, these investments can seem a little less daunting. You can make the most of different loans available, including:
How profitable is a small grocery business?
This depends on a variety of factors, such as the location or the types of products sold. Generally speaking according to research, retailers might expect to make 0.5% to 4.5% net profit.
What are the most profitable items in a grocery store?
The most profitable items in a grocery store typically include:
What are the costs involved in opening a grocery business?
Some of the costs involved in opening include:
The initial investment can vary a lot, as there are so many factors at play. Generally, you might have to pay anywhere between $30,000 to $70,000 for a small grocery business.Back to top
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