08 Sep, 2017

Cost Of Opening A Convenience Store

Cost of opening a convenience store How to open or start a convenience store and cost of opening a convenience store. This type of business is always in demand because it offers conveniences to customers. It also performs well even during times of economic downturns like recession. With that being said, it is still an entrepreneurial venture that needs to be thoroughly researched before taking any action. Failing to take the following steps can result to failure or poor financial results: 1- Business Plan: Contact a lawyer who specializes in this field to draw up a professional cost of opening a convenience store business plan. Most financial institutions will not grant you a business loan unless you have a lawyer approved business plan that makes sense to them. 2- Legalities: Contact your local government agency that deals with vendor permits and incorporations for detailed zoning and building requirements. Find out what kind of requirements that your perspective retail store will need to comply to such as: • Commercial and residential zones • Square footage • Number of customers that your estimated square footage can handle safely at any given time • Food and water safety regulations • Fire extinguishers and other safety supplies like first aid kits • Number of exits in case of fire or other emergencies 3- Location: This type of business offers customers a convenience of supplying a need mainly for impulse buying. People tend to drop into convenience stores on the way to work or home. They usually buy from this type of business when they are short on time or when their super market of choice is closed. The best location would be near highway exits, main streets and even in large residential areas. Most grocer associations will require that a store must be located one mile away from between 500 to 1000 potential customers. 4- Competition: Do a market and residential zoning research to determine if your perspective area can accommodate another business of this type. Find out if there are any local expansion plans to build additional homes in this area. Your main competition will be from other convenience stores and even larger grocery stores close by. If there are large grocers nearby then your peak business time will be outside of their normal operating hours of business. 5- Equipment: Find out what kind of shelving, counters and fridges ETC, that you will need to get in order to run a clean and safe operation. Figure out if you are going to purchase new or used equipment. Here is a business that has a lot more profit potential than a cost of opening a convenience store. Best of all; you can get up and running with a fraction of the cost!