How do you start opening a supermarket?
Even though every city in the world now has shopping malls, the opening of a supermarket can still be considered a good option, but only if it is designed in detail and then scheduled with a certain awareness. To open a supermarket and allow it to succeed, a real development plan must be created.
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To do this, pay attention to the following points that you should take into account:
Develop a business plan
In order to have an idea of everything we need to have both the intangible and the tangible, it is extremely necessary to start by developing a business plan that also allows us to know the market we are launching into and everything we need to set it up. Initially we need to be clear about the following points:
Target audience: In this case our business will be focused on the family audience, especially parents who are responsible for buying the products of the family basket.
Objectives: We will create a list of medium and long term objectives to establish goals that we want to reach with our business and that will stimulate its growth.
Training: The entrepreneur, you in this case, must have basic knowledge about the operation of this type of business, which you can achieve with resources on the Internet, books, magazines, personal references, etc.
Marketing strategies: These will be planned according to factors such as scope, product or service to promote, media, among others.
Selection of suppliers: It is very important that if you are going to operate independently, without a franchise, try to store in your supermarket the most recognized and preferred brands in the market to provide your store, so that customers and interested parties will find it easier to trust your supermarket, if they see brands they already know.
Choosing a good place
If you have started looking for a place to open a supermarket, the first care you should take is to choose a place totally away from the shopping malls. The location of your store will be one of the main elements that will determine its success or failure. Among the most likely places to start a supermarket are: the city center, residential areas and industrial areas. Keep in mind that this place must have entrance or approaching zones for vehicles and pedestrians.
Choosing whether to work independently or with a franchise
Without a doubt, the second option will take much less trouble in relation to logistics and also several costs that will be included in the price of the franchise. In opening a supermarket in the franchise has at its disposal some of the means of communication as a fact: the highly controlled delivery of goods, provision of the store, technical and commercial services, and so on. However, you also face some challenges here, as is the search for the place where you are going to install, which must have the necessary potential that will be verified by the company with whom you seek the franchise.
Permits and licenses of a supermarket
Whether you are working independently or with a French company, you will need a license for the sale of food, the authorization of the municipality, after having worked for at least two years with food or having followed a course at the Chamber of Commerce, as some of the requirements are a certain amount of experience in the market you are going to work in. These types of documents and certificates are of main necessity to be able to operate according to the conditions of the law.
Costs to open a supermarket
Let’s move on, now, to one of the topics you may be most interested in: What are the costs of opening a supermarket? Here, too, the data is very variable, since it depends on the size of your store and the area where you decide to buy or rent it, including the amount of products you will initially supply, the staff, shelves, cash registers, etc. Basically, premises of 200 to 400 square meters require an investment of about 350,000 euros. If you want to open a larger one, you should know that the cost is about 1000 euros per square meter. And the investments are not over yet…
Opening a supermarket also means supporting the costs with respect to furniture, equipment, as we call it, the staff should be at least four or five people from a small supermarket initially, but of course, this will depend on the size of the premises. On the other hand we also find the prices and costs of insurance and taxes, utility bills and the service of a good accountant to keep all these accounts up to date. After having listed some advantages and some disadvantages, we only have to
take a look at the potential gains.
Show what you have to sell (goods and products)
After all the steps have been completed, then the next important procedure is the store’s stock. As indicated above, a supermarket stores a wide variety of goods and products from different manufacturers and brands. This is to meet all the wishes of the customers entering the supermarket. It is advisable to talk directly with the supplier to obtain the products and eliminate intermediate costs as much as possible. By doing this, you have the ability to eliminate all additional costs. This means that the goods will be sold to the customers at cheaper prices, which means that more customers will come to your store and you can buy larger shares. So more profits will come in.
Choice of suppliers
This is perhaps one of the most relevant processes within your business, since they will be the channels that will provide you with the products you will sell. It is extremely important that you carry out an analysis of the market to know which brands are most requested by the public and which are the most consumed, this will give you an idea of which brands to have. Do not forget that your business must provide all kinds of products for the home.
How much do you earn with a supermarket?
Everyone wants to start their own business to make money. The margin on fresh produce is higher than other products: in general, we can say that to make money by opening a supermarket you must generate a large volume of business. The average income that remains the holder, according to a millionaire estimate, is about 3.2% of turnover, which means that for a net profit turnover of 1,000,000 is between 20 and 30,000 per year.
Advantages of having a supermarket
Having all kinds of products of first necessity at hand ensures the capture of clients, once the business has been organized you only have to wait for clients to show up at the business to acquire everything they need, ensuring a constant fluctuation of cash and an important perception in the profit margins for your business.
Having many varied products for home and consumption can even keep the house itself supplied at all times, this business model is one of the most important in times of crisis, therefore, is one of the strongest in these circumstances.
It is known that, almost 60 percent of consumers go to supermarkets, without lists, which tends to increase compulsive spending, so that, in general, buyers are victims of their whims and desires. This is why owning a supermarket is an advantage because you can deliberately place highly sold products, such as milk and bread, especially freshly made, so that customers grab all kinds of goods in search of basic foods and other products.
Success stories of a supermarket
Mercadona is a successful supermarket that reinforced its leadership with growth based on the boom in fresh perishable produce, whose sales increased significantly and the continuous introduction of new references, as well as the strength of its white brand.
Another chain that is very popular with consumers is Bon Preu, which is highly valued for the quality of its fresh and healthy products, as well as its brands and variety of offer, and also for the treatment it gives to consumers who need to feel cared for and be rewarded for their loyalty.
Possible drawbacks: One of the main competitors in this same market are not only the big and well known supermarkets, but also the neighbourhood shops as they are closer to the houses of their main customers. Avoid choosing brands based on assumptions, do your research before contacting them and choose your suppliers carefully.
Final recommendation: Compared to the previous situation, it is best to create advertising strategies in which promotions and offers are offered regularly to attract the public’s attention. In addition, you can sometimes lower the prices of products so that more people are encouraged to buy in your supermarket or initially try it out. Remember to count on the best suppliers and keep a detailed record of every move, especially financial ones, made inside the supermarket to keep all your accounts in order.