You’re just starting dinner, and you’re out of garlic. The party is just getting started, and you’re running low on wine. It’s the middle of the night and you desperately need nappies. You were up all night with the baby and the party blaring next door, and you can’t find any paracetamol. For all of these scenarios and many, many more, the convenience store is open and ready to rescue the British Public. Where would we be without them?
You might think of it as your local corner shop, or the off-licence – but no matter what we call them, convenience stores can be found in most towns and villages across the country. And convenience store is a succinct name – they’re useful, accessible, offer a broad range of products, and in some places they are an absolute necessity. The fact that they’re a sound business investment should come as no surprise. After all, the key to success is strong consumer demand.
So if you’re looking to invest in a convenience store, here’s a few quick tips on starting one up.
Location – be within ‘slipper distance’
Location is everything with a business like this. Convenience means accessibility, and that means you must be easy to find. You’ll rely on a lot of repeat business too, so placing yourself in a busy area, with high density housing, should bring customers back time and time again. The more customers who feel they can run out in their slippers and pajamas, the better. If there are schools in the area, that is an added advantage as well. Just think how many kids want to grab a snack or fizzy drink on their way home from school at the end of the day. Footfall and passing trade are all a boost to business, and should be factored in when considering how to start a convenience store in the right location.
Timing – be ready to service the night owls and the early birds
There’s definitely a big clue in the name here. If you want to know how to start a convenience store, the first thing you need to do is make things convenient. That means thinking carefully about what it is you’re offering your customers, how easy it is for them to find you and what hours they can expect you to be open? It’s likely you’ll need to be open at least 12 hours a day, possibly many more. And definitely seven days a week. In fact, one of your key USPs over competing businesses, such as supermarkets or newsagents, is that you remain open when they’re all closed.
So if you’re wondering how to start a convenience store and maintain a life outside of business, you might be in for a shock. This isn’t a lifestyle business. And definitely not from the outset. Until you have the luxury of putting staff in round the clock, you’re going to have to put in some long hours yourself. You’ll also need to have the right sort of personality for the job. The best convenience store owners are friendly, chatty and gregarious types who get to know their customers. It’s what keeps those customers coming back.
Inventory – be stocked from Apples to Zippos, and everything in between
What keeps those customers coming back is stocking exactly what they need. They’ll expect the essential foods like milk, bread and biscuits. Confectionery, tobacco and drinks are a must. And keep in stock the emergency items that people might need out of hours, like loo roll, toiletries and medicines. But don’t discount the extraordinary. Savvy convenience store owners get to know their customers, and importantly, what their customers want. And that might well be items that they struggle to find elsewhere. Do that and you’ll be able to start a convenience store and stand out from the competition.
Starting a new venture is exciting, but it is riskier than taking over an existing business (as long as that business is trading successfully, of course). So, should your question be: how to start a convenience store? Or would it be better to ask how to buy a convenience store that is already trading? You might find it easier to raise finance for a going concern, as a lender will be able to assess the same accounts and trading history that you can. And if you do want to buy an existing convenience store, there are lots to choose from here.
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