Kirana stores are the backbone of our locality and are one of the industries that don’t require any master’s degree to survive. Kirana stores are also known as ‘general stores’ where we get all the goods we need daily. To start a Kirana store, you need a sound knowledge of the business and the confidence to make it work and achieve your targeted goals. Kirana stores are found in every nook and corner of our locality, and they have a higher chance of achieving success in a short time as they sell goods that we require daily. But over the years, we have seen a lot of development around us, and the traditional Kirana stores won’t be able to keep up with it, so they need to evolve and develop themselves as per the new requirements.
To start or to open up a Kirana store, there are a few things that you must keep in your mind that are given below:
- A sound and solid business plan: Any business can fail and become a disaster if you don’t have a proper business plan to work with. It is crucial to make a business plan before starting any business so that you follow the program, execute it accordingly, and achieve your goals. You must understand when and where you are investing your money, as to start any business, you will require a plan and a certain amount of funds. You need to understand and study the customers you want to target and their financial status to know what price and offers you must charge for your goods. When you study your customers you get to know their likes, preferences, choices and the frequency of their shopping and with these results, you can plan out your selling strategies.
- Locality: Planning is very important because when you plan out your business, it also helps you choose or target a locality you want. Every locality and area has a certain customer base, and their needs depend on it accordingly. Choosing the locality for your business is the second most important thing to do. When you study your customers and their locality, you get to know their preferences. With that, you can decide if you want to start with a fancy locality, a youth-oriented locality, or an average locality.
- Understanding your customers: You must understand your customers’ needs, as a Kirana store is a store that fulfils the needs of its customers daily. You must understand what products or goods your customers require and which goods or products can satisfy their needs. The goods or products you sell depend on the demand and needs of your customers.
- Digitalise your Kirana Store: The traditional Kirana stores can’t keep up and survive with the recent developments in the digital world. You must digitise your Kirana store. Most customers don’t like visiting a Kirana store as they think it will waste their time. They prefer to stay at home, shop whenever they want, and get the products at their doorstep. You must digitise your store online to keep up with your competitors and satisfy your customers.
- Licences and Permits: There are rules and regulations for every business that must be considered and followed. Certain laws and licences are required to open up a Kirana store and must be followed. You must have Shop and establishment registration, Food licence and Entity registration before starting a Kirana store. You must also register your store under GST to prevail certain tax benefits. If your annual turnover is more than 20 lakh, you must have a ‘GSTIN’ or a 15-digit identification number.
- Competitive Research: You must do competitive research and analyse your competitors before starting your store to plan your business accordingly. You should research the structure of their stores, the brands they sell, and the price and offers they charge to their customers. You must also study their marketing tactics to develop a better and different marketing effort that will increase your sales.
- Additional services you offer: Customers always look for additional services or concessions that make them feel special and make their shopping easy. Digitising your store is one way to give them an additional service. Home deliveries, quick deliveries, free products, coupons, rewards, discounts, and points to use on their next purchase also count as an additional service you must provide to your customers.
Which are the most important licences required to start a Kirana Store:
- FSSAI Licence: The products sold in the Kirana stores are edible food items. Any business that sells food in India must register with the ‘Food Safety and Standard Authority of India (FSSAI). The owner of the Kirana store, to license, is known as the ‘Food Business Operator’. This licence is based on the business’s capacity and the business’s turnover decides the kind of licence the FBO gets from the FSSAI. If your Kirana store has branches in more than one state and its turnover is more than 20 crores, then it requires a ‘central licence’, and if its turnover is around 12-20 crores, it might require a state licence. This licence is valid for only five years and needs to be renewed.
You can register your business at: https://www.fssai.gov.in/cms/registration.php.
- Shop and Establishment Registration: As the Kirana store owner, you must register your business with the ‘Shop and Establishment Act of 1953’. This act has defined shops as a place where goods are sold, retail or wholesale, and services are rendered to customers. The owner must apply the legal fee to the Inspector of the local area in the given time. This application consists of the owner’s name, the store’s address, the number of employees, and the other necessary information. The owners are bound to display the certificate at their store.
You can register your business at: https://mahakamgar.maharashtra.gov.in/lc-registration-of-shops-and-establishments.htm.
- Contract of Lease: The store owner needs to prepare a lease contract from their landlord. This contract is by the Rent Control Act. This lease is different from the one we have for our residential purpose. It must have a certain clause like:
- Rent and deposit
- Maintenance charges
- Working hours of the property
- Terms and conditions of the renewal
- Amount of payment
- Consequences of breach of contract
- Address and name of the landlord and the tenant
- Taxation Norms: GST has changed the taxation policy for the Kirana stores in India. Every business that sells goods needs to register itself with GST. When you register your store for GST, you get a 15-digit unique identification number or a ‘GSTIN’. Registration is not compulsory if the turnover of your business is less than 20 lakhs. Still, if your turnover is more than 20 lakhs, then your business must be registered under GST. Under GST, the owners must file three monthsns and one annual return.
You can register your business at: https://services.india.gov.in/service/detail/gst-registration-1.
- Trade Licence: If you are the Kirana store owner, you are bound to have a trade licence. The permission needs to be granted from your local Municipal Authority. There is three business that requires a trade licence:
- Any business that sells food items, such as restaurants, hotels, bakeries, Kirana stores etc.
- Any business using motives like the manufacturing industry, factories, cyber cafes, etc.
- Any business selling timber, firewood, cracker manufacturing, etc.
- You can register your business at: https://services.india.gov.in/service/detail/trade-license.
- Sign Permit: Some localities have certain rules and regulations regarding the size of the sign permit outside your Kirana store. The Kirana store owners need to know all the local rules and regulations on the signs from their local municipality.
Start your own Local Kirana Store Today!