The concept of mini supermarkets is fast rising in Kenya. Supermarkets are no longer confined to malls but now entrepreneurs are opening up mini supermarkets in residential areas.
Starting a mini supermarket needs strategy and a plan for you to realize the maximum potential of this venture. Most importantly, you will need capital for stocking up. Mini supermarkets are ideal for residential areas and shopping centers. In this guide, you will get the basics you need for such a venture.
Selecting the location
The location needs to be convenient. In this case, it should have a lot of human traffic like walkways. Selecting space located on the ground floor of a building to make it easier for potential customers to walk in and out with hassle. In most residential areas within Nairobi, premises that will host a good mini supermarket will cost you between Ksh40,00 — Ksh150,000 in rent depending on location.
Just like any venture, you need some permits from the local authorities to operate. We have the annual business permit, health certificate at a cost of about Ksh5,000. The cost of your business permit will vary but may cost up to Ksh25,000 depending on the size of your business and the number of employees. You will incur some extra costs in having your employee undergo a medical examination.
Furthermore, you will need fire safety guides by installing fire extinguishers alongside a fire certificate. The fire certificate will cost about Ksh4,500.
Stocking up and supplies
For stocking your mini supermarkets you will rely heavily on distributors for their supplies. Unlike bigger supermarkets, your suppliers will bring goods to your store without charging you for transport. To build your distributors network, visit the industrial area where you most are located. Depending on your location, size, and sales, you can settle on a suitable schedule to stock your shelves. Mini supermarkets usually stock fast-moving household goods.
From a mini supermarket business, you will make a profit based on your prices and the volumes moved. To calculate their profits, some mini supermarkets engage the services of external auditors/accountants to work out monthly or weekly profits while others do it themselves in-house.
The nature of a mini supermarket presents many challenges that will be faced in the course of the business. The arrangement where shoppers serve themselves from the shelves increases cases of shoplifting, which many supermarket owners grapple with all the time.
Some goods will most likely expire before they are bought. Whenever you stock new products there is a possibility they will not sell. This is a common problem affecting many small supermarket owners.