How to get license for grocery store (Kirana Store)? Groceries and food are the backbone of retail and this is why grocery businesses are becoming so popular. To be successful as a grocery store owner in a village or city, they must be aware of the different needs of their customers and understand licensing requirements.
How to get license for grocery store?
Kirana shops can be found in every corner of towns and villages. They cater to the daily needs of consumers. India’s retail sector is growing quickly and plays a significant role in the country’s economy. If a solid business plan is in place, a city or village grocery store owner could make enormous profits. When the COVID-19 pandemic hit, wholesale grocery suppliers played an important role in door to door delivery of groceries and other sundries. Understanding the basics of opening a grocery store and the various types of grocery licenses is key. We will also discuss how to apply for licensing applications. It is easy to start a grocery store.
Why is a trade license necessary?
Before opening a grocery store or selling consumer goods and/or services, a business license must be obtained. Each state has its own quality standards and legal technicalities when applying for a trade permit.
The Kirana store permit must be obtained within 30 days of the trading start. The application process for trade permits takes just eight days. If the owner of the grocery store has incorrect documents, delay is possible. If the store owner fails to meet the requirements of the state exchange permit, the trade license can be revoked or canceled.
Documents required
To obtain a business license, you must submit the following documents: These documents are:
- pan card
- bank details
- Certificate of establishment
- Address and ID proof
- color photos
- sale deed
- Utility bills such as water, telephone, and electricity bills
- Different angles show the trading premises clearly.
- Existing traders will need to show proof that their business license was renewed between the 1st January and 31 March of each year.
Shops and Establishment Act 1953
Owners of grocery stores should ensure that the business is registered under the 1953 Shops and Establishment Act.
This Act pre-fixes working hours and days. This Act states that you can’t exploit your employees and is designed to protect their health. These rules must be followed by grocery store owners in order to obtain a permit.
Guidelines have been established for paid and unpaid maternity leave. These guidelines include terms and conditions of termination of employment or contract. This act governs Kirana’s legal operation of stores. It also mentions holidays, non-working day, store closing and opening times, and other important terms.
Respect and care for women employees is important. Store owners and employees should not tolerate sexual harassment. It is important that the working environment be compatible with modern grocery store business models.
Tips and tricks to grow your grocery store business
- Get your business online
Many small business owners and grocery store owners are shifting to a digital business model. Customers can add products to their shopping carts and receive delivery at their doorstep. To increase customer engagement, you can promote your online store via social media and host virtual events.
You can grow your business by using paid Facebook campaigns, smart blogging and YouTube video ads. Online connections can be made with industry leaders and influencers to ask for collaboration on advertising and promotional campaigns. Instagram and YouTube are a hot place for paid brand partnerships. Online grocery stores will enable you to reach customers that you wouldn’t normally be able to reach by traditional methods.
- You might consider opening your store on Sunday
This is a great way to increase your grocery store margins. Store hours are ideal for new stores, which can be opened from 8 a.m. until 10 p.m. While most grocery stores prefer to close on Sundays, you’ll get more sales if your store is open. You can appeal to this market by opening your grocery store on weekends and making good profits.
- Accentuate Customer Commitment
Interacting and engaging with customers is the best way to retain and attract new customers. Engage with customers online and offline by focusing on customer engagement. How the brand owner interacts with buyers is what will determine their reputation. You are more likely to sell more if you do this consistently. Your customers should be able to count on you being helpful, regardless of their gender, age, origin, or job.
You can offer loyal customers special discounts and create referral programs that allow them to refer friends. Asking customers to leave testimonials or reviews on your website and Google pages can help you improve your grocery store’s business.
- Focus on the visuals
When building a website for your grocery shop brand, don’t forget the visuals. A professional graphic designer is recommended. They will match your store’s spirit with the needs of your customers. A library theme might be appropriate if your store is more focused on books. You don’t have to decorate your brick-and-mortar grocery store. The appearance of your store is a key factor in attracting new customers. Give your store a personal touch and ensure your products are easy to find. A cluttered store is not something that people like.
- Improve customer service
You can make your business stand out by improving various aspects, including shipping speeds, delivery times, return policies, and refund policies. You can improve your business rating by making late or midnight deliveries. It is important to plan your funding accordingly.
You can either borrow money from an NBFC or use your own capital to fund the store if you’re just starting out. Once your store is growing and producing sales, it’s a good idea to apply for a loan. Make sure you restock your inventory and look at customer wish lists to determine which products are most in demand. A good inventory management software can help you accomplish this task and make sure that no perishable or other products are wasted. If your Kirana store is successful, you might consider making it a franchise. Bharat QR Code is a convenient and easy way to collect payments from customers on various purchases.
Conclusion
New grocery store owners need to obtain the necessary permits and licenses. A strong business plan is essential for their success. It is easy to open a grocery store. Shop owners can even start small.
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Frequently Asked Question
You can make anywhere from Rs 2 lakh to Rs 7.5 lac per month.
If you’re just starting out, getting a loan from a bank to finance your business can be challenging. If your business is growing and has a strong financial position, you may be able to get a bank loan for business purposes.
Yes, Kirana store owners may get unsecured loans from the NBFCs.
It is possible to obtain a loan for a business to open a grocery store. MSME loans can be applied for at attractive interest rates. You can easily pay your EMIs over time.
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