Planning to start a Sari-Sari store business sooner or later? This article is for you. In the Philippines, Sari-Sari stores seem to become the norm since they can be found mostly along the streets. Sari-Sari store is simply a convenience store that is translated in English as Neighborhood Sundry Store. The common features of a Sari-Sari store in our country are those screen-covered or metal-barred windows with various displayed jars containing different types of candies and chocolates. Others also sell prepaid load, canned and frozen goods.
According to Statistics, there are over 1.3 million Sari-Sari Stores in the Philippines and 94% of the consumers rely on them for their everyday needs. If it ever occurs to your mind to start a Sari-Sari store business, then you have come to the right place. You don’t want to enter a business you have the faintest idea about, right? So, here, we have written down some guides to help you plan with your Sari-Sari store this 2022!
1. FIND A GREAT LOCATION
Customer- the most essential factor in Sari-Sari store business. It’s recommendable if your Sari-Sari store location has good accessibility- either near establishments like hospitals and terminals or where passersby usually frequent. However, if you have a limited budget, you can still start a Sari-Sari store adjacent to your house which will spare you from renting and staying close to your family. You can just look for a better place when your business accumulated enough profit.
2. COME UP WITH A BUSINESS PLAN
Before you begin a Sari-Sari store business, you must first conduct a survey. You should know the number of stores within your area, figure out the most purchased store items, check the average pricing per item, what are the goods they sell, and observe the food traffic in the place as well as the operating hours in order for you to decide if the business is really feasible for you.
3. DIFFERENTIATE YOUR STORE
Think creatively. Do not limit on selling FMCG or fast-moving consumer goods like soy sauce, vinegar, cigarrette, or softdrinks. If you have a budget, you can spice up your store a little or put some twists. You can opt for a Sari-Sari store with carenderia, Sari-Sari store with internet shop, Sari-Sari store with rental WiFi, Sari-Sari store with water refilling shop, or Sari-Sari store with videoke. The main point is to come up with a novel idea to attract customers.
4. FIND A GREAT STORE NAME
We’re certain you’ve come across viral witty names of stores or businesses on social media such as “LIBING Things” for Funeral Parlor, “Air Supply” for Vulcanizing Shop, “7 Evelyn” for small Sari-Sari store, “Summacum Laundry” for Laundry Shop, “Hurry Cutter” for Barber Shop, “Tanging Henna” for Tattoo Shop, “Devil’s Burger” for Burger Shop (contrary to Angel’s Burger) and etc. Take note that your store name must be unique, relevant, and easy to remember.
5. FIND LEGITIMATE SUPPLIERS
As a Sari-Sari store owner, you have to make sure that you have no shortage of stocks with low prices for you to sell it easier. One of the efficient ways to go about this is entering into a supply contract. A supply contract is where you negotiate with stores or wholesalers to give you bigger discounts or freebies. For instance, buy 10+1 free or buy 7+1 free deals. There are circumstances where suppliers offer consignment, meaning, “Hindi mo kailangang bayaran hangga’t hindi mo pa nabebenta.” While others even offer terms up to 15 to 30 days.
6. HIRE THE RIGHT AND FIT PEOPLE
If you want to have a well-managed store, you must choose the right people especially when you are just starting your business. Select trustworthy workers to avoid “kupit” or better yet create a system where there is a check and balance.
7. CREATE A SYSTEM
Build the framework and process. First, start with the inventory. In business, there’s what you call “first in, first out” which means “ibenta agad ang unang pumasok na produkto para maiwasang ma-expire.” Second, ensure cash management or cash flow, for those not too techy, they manually list down how much they are selling while techy ones use Point of Sales Systems (POS). Third, you have to make an accounting system. This will help you analyze if your business is positive or not, or whether it is gaining profit or not. The sales must be larger than the base, if the report says otherwise, that just means your business is already sinking. Lastly, consider cleanliness to be more appeasing and magnet prospects.
8. MANAGING YOUR INVENTORY
Never run out of stocks. When you have shortage of stocks, your customers will surely opt for another stores.
For first-time Sari-Sari store owners, some of the most suggested products to sell are canned goods, toiletries, detergents, snacks, instant coffee, instant noodles, and seasonings or the fast-moving consumer goods.
9. REGISTER YOUR BUSINESS
The good thing about business registration is that you can negotiate better prices with your suppliers and it makes your business reliable and legitimate. Plus, you can also put your business under “General Merchandizing” and open a business account. By then, you can apply for a sole proprietor with the Department of Trade and Industry (DTI) for a certification that is good in terms of 5 years.
10. NO TO CREDIT
“Utang” is the top reason why businesses close soon after. Well, credit is inevitable but only lend in limited amount. For example, you can put a limit of up to P100 where you can imposed a rule of “bayad muna bago utang ulit.”
Now, the big question here is how much is it to start a Sari-Store store business? To begin a Sari-Sari Store you must have an ESTIMATED CAPITAL FOR AT LEAST: P25,000-50,000.