How To Start A Provision Store

So you have been considering and researching on how to start your provision store? In light of the nation’s economic state, this is a logical financial move.

In this article, I will be explaining the steps to start a profitable provision store, maintain, and succeed in it. I will also be throwing in my past experiences in the line of business, challenges, and solutions to the challenges.
So let’s dive in right away!

How to start a provision store

There are a few steps to take if you wish to launch a profitable provision store.

1. Conduct a Market Survey

Online-Survey
Online-Survey

When conducting a market survey for a provision store, you ought to know what your potential customers need and desire. A market survey is a great tool for gathering information about the consumers you are targeting or the general public where you are promoting your goods. Three major Steps to consider when performing a market survey for a provision store.

1. Define the problem

When defining the problem you need to Consider your initial motivation for exploring a certain issue carefully before deciding how to structure a market research survey.
When defining the problem you also need to ask the following questions What benefits will it have for your product, your consumers, or your firm as a whole? By posing these queries, you’ll be able to comprehend the problems and the kinds of information you need.

2. Target the right audience

Brand-Ambassador

Think about the purpose behind your audience outreach. It’s important to take your audience’s specialization into account. It gets tougher to find enough respondents the more detailed your audience parameters are. It also becomes more pricey. You might want to think about lowering your population criteria to make sure you have a sample size that works for you and your budget.

3. Take action on your research

Now is the moment to present your research and make a decision. Start designing your marketing plans and tactics. Now go ahead to evaluate your data! The most important lesson from this is that while the current round of research is finished, Your not yet done with market research.

Your research is never done since the challenges, the business climate, and overall trends are ever-changing. The patterns your investigation revealed are changing. Regular data analysis will show you where you can make improvements. Your organization and marketing activities will be profitable the more you understand your buyer profiles, marketplace, and business.

2. Write a Business Plan

The development of a business strategy is the next stage in launching a provision store in Nigeria. This is important since, without it, you may have neglected to start your provision store since you wouldn’t have thought to take into account so many important elements.
With a little help from a business plan, you can decide on an array of things, including the capacity of the shop you will rent, the store location, the equipment needed to get started, the number of provision items necessary to begin the business and other aspects.

NOTE: Check out How to write a great business plan for your business, if you find it difficult.

3. Aquire the Required Capital

Free-Money-Hacks
Aquire the required capital

I’m going to assume that once you’re at this level of this article, you have already saved money for this project. Otherwise, your business plan ought to specify how much funding will be sufficient.

You might need to make some expense reductions or look for additional funding if the quantity of money you require is greater than what your business strategy projected. It is not a good idea to borrow money to sustain your business because the pressure of the loan may force you to make bad judgments. It is usually preferable to spend the cash you currently have to expand your company.

4. Get or Rent a Shop

Rent a Shop
Rent a Shop

In this step, you need to pick out a shop for you to sell your items. When establishing a provision shop, having a location that is at the roadside where you may sell your goods is crucial, because it allows your business to be shown to all including pass-a-byes.
Things to consider when renting a provision shop

  1. Location: The location of your shop will determine the amount of daily profit that your business generates. When selecting a location for a business, especially a provision business you need to pick a location where there are a lot of people and the items you sell are of great use to them.
  2. Safety: When picking a shop, it is common to ask yourself whether your goods are going to be safe here. You need to make the area you will select to rent your shop so there is no act of robbery both in the night or day. You’ll also need to guarantee your customer’s safety whenever they come and leave your shop.
  3. Electricity: A well-powered place is a factor you’ll need to put into consideration when selecting a shop because you need your shop to have a proper lightning system to avoid any indoor accidents. You also need electricity for some items are need to be sold at a cooler temperature such as drinks and water.

NOTE: Just know that if your shop is not safe it will affect the number of customers and sales negatively.

5. Furnish your Shop

Deciding how to design the space is the next step after locating a shop to rent on a low budget for your provision business. If required, paint the walls before placing the exhibition shelves. An additional crucial step is to install electric lamps on the shop’s premises.
All these are crucial for the comfort of all the customers that will come into the premises to purchase some items.

6. Equip your Store with Provision Items

Provision Items
Provision Items

When it concerns purchasing supplies for your provision store business, there are a few factors to take into account. Some of them are areas in which you can get affordable goods, and another is how far it is between this location and your shop.

You will be well on your way to building a sizable profit off your business if you can locate a decent location or market in which you can purchase your goods at the lowest costs and that is also reasonably close to your place of business.

7. Register your Provision Business Legally

After you equip your shop, you need to register your business with the authorities. Based on how large your business is, you may need to register your provision shop with the Corporate Affairs Commission (CAC). Do this to ensure that you avoid getting into legal issues with the authorities. If your provision store is a small-scale company, like a one-room store, you will likely not have to register it; however, if it is a large-scale business, like a supermarket, then you might be required to.

You will also be asked for the name of your provision shop business. This name is unique to your specific supply store and is called the “business name.” You will need to think of a name unique to your company. Your business will gain official recognition from the government and become a legitimate entity if you register your provision shop with the CAC.

8. Launch your Provision Store

Launch your provision store
Launch your provision store

You should select a day that you’ll launch your store and start selling the items you have in the store. One of the mistakes you should avoid making at the initial start of your business is to sell below the selling price of any goods. To counter this initial mistake most businesses do, is to place price tags on each product to avoid customers asking for a lower price for any product. This method could also be of great use to you in order not to forget the price of each product in your provision store.

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Tips on Surpassing Your Competitors in this Field

In this business, it is essential to be at the top of your game because you’ll have a lot of competitors. These people sell almost the same items as you and worst of all at the same location. There are many ways to be at the top of your competitors you know. These ways include:

1. Have great customer service

There is a difference between having customer service and having great customer service if you know what I mean. Having great customer service means that you treat your customers like precious stones while still making them purchase more items that will go together with the products they’ve already purchased. For example; if A customer buys coffee, you as the seller have to make the customer feel special, right after you need to attempt to make the customer purchase some loaves of bread for the coffee. At that instant, there is a high percentage that the customer will end up buying what you said. As far as it is compatible with what they bought initially.

2. Try as much to open first and close last

When you open first and close last, it will let people know that you are serious about your business which will end up attracting people to your provision store. If you keep it up even in the holidays, people will take your business seriously and will be purchasing from you.

3. Replace Finished Goods

Once you notice that you are about to run out of any product, don’t allow it to finish because at the moment it finishes there might be dozens of customers that will come looking for that product. Once they come and you don’t have it they will take your business for granted and might end up skipping your store to buy that product from your competitor. But if you replace products as soon as it’s about to finish it will make your customers think highly of your business.

4. Sell at a lower rate

This is why you need to perform market research (Step 1). Take it like this, you open a provision store at a certain location and sell a certain product that people in that area love and you notice that your competitors are also selling that product, you need to observe the price that other stores are selling it and then reduce the price of your own but not below the selling price. If you do this you’ll attract more people to your store coming to buy that product.

Tips to Increase Profit for Your Provision Store Business

There are two ways to increase profit in a business firstly, is to increase sales. Lastly, is to increase the price of a single product but this one is not recommended because shortly, it might end up causing more harm than good.

You need to apply the four previous tips mentioned above to increase sales in your business. You need to inform families, colleagues, co-workers, and even strangers. All these people combined will share the information with others thereby increasing the traffic to your store. The more the traffic the more the sales, the more the profit.

PS: If you are to purchase a product, it is advisable to buy it from wholesalers because it will come at a considerable price fitting your pocket. Take note of the four tips I provided above they will take your provision store business to greater heights.

Conclusion

Provision store business is a daily income business and a well lucrative business. Provision store business is an economical business which means it brings in money whether the economy is good or not.

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