How to start a Departmental Store? | Steps and Secrets

Are you looking for how to start a departmental store in your locality? 

 

Then you found us at the right time. It is not hard to start but to keep it going requires a lot of work and effort.

 

Therefore, we have the best assistance for you from our experts on how to start the store to the complete company registration process.

 

Also, after setting everything, you will look for the best day to start in 2021 then you should have a look at this: Auspicious day to start business in 2021

 

A brief description of departmental stores...

 

Departmental stores are small neighbourhood stores that sell all the basic items needed by a household. For instance, here is a list: 

 

• Rice
• Grain
• Pulses
• Sugar
• Spices
• Vegetables and Fruits
• Dairy and Bakery
• Beverages
• Snacks
• Eggs
• Toothpaste
• Sanitiser
• Deodorants
• Shampoo, etc. 

 

Of course, the size of the store depends on the location and finances.

 

Documents and Licenses for Departmental Store

 

1. Identity Proof
2. Address Proof
3. Registered Office Address Proof
4. GST Certificate
5. Shop and Establishment License
6. FSSAI License (for food products)

 

5 Steps to Start a Departmental Store

 

Here are the crucial steps for starting a departmental store:

 

• Analyse the Plan

• Register your Business

• Choose the Location

• Figure out the Investments

• Find the local Suppliers

 

1. Analyse the plan 

 

It is very challenging to keep up with the changes in the market. But if you are looking for how to start a departmental store then doing so can help you avoid making mistakes and become a successful department store operator.

 

2. Register your Business

 

The first step after plan analysing is to register your business and Trademark Registration. Therefore, it is an important decision for any individual to pick the right legal organization structure that is good for you. Above all, get a legal consultation from our experts and ensure you have the right objective and accurate opinion.

 

3. Choose the Location

 

Before you start the licensing and permits process, it is crucial to identify where to set up your store.

 

Therefore, you need to know where your customers are. A good location can help you succeed, but a bad one can also guarantee failure.

 

It is as necessary as to decide the type of business.

 

Pick a location with:

 

• Good access to public transport
• A reasonable degree of security
• No competitors around or lesser.

 

So, keep in mind that the location affects visibility and affordability and helps you negotiate terms and conditions.

 

The rent can range from Rs 10,000 to Rs.10 lacs depending upon the size of the store and the city.

 

However, you may require a minimum of 1000 sq ft. area for the departmental store.

 

After choosing a location, here is a departmental store plan that you can refer to.

 

 

4. Figure out the Investments 

 

Depending on the size of the store, the initial investment could be anywhere between 10 lacs and 2 Crores.

 

If you need a loan, choose a financial institution that has a lower interest rate. Also, there are government programs that help you get a loan of up to 10 lacs.

 

5. Find the local Suppliers

 

When you enter a business, there are always various intermediates that link you to the manufacturer.

 

Therefore, try to eliminate the middle man and reach out to direct suppliers.

 

Accordingly, it increases your profit margin and reduces the time taken for the product to reach you. 

 

The sourcing decision plays a huge role in determining the profitability of a company. Keep a variety of products in your store but consider the need of the target audience.

 

You can visit Indiamart, to find and compare the right suppliers in or nearby your locality.

 

Benefits to start your departmental store from scratch:

 

• Self-started departmental stores are more convenient and less expensive than buying a franchise.
• Investment depends on your budget and the place you choose to sell.
• You can design your store the way you want. However, try to do it according to locals taste for a better relationship and attracting potential customers.
• Determine the highest selling products in the neighbourhood and stock up on them.
• Make sure your store has most of the essentials people need. 

 

5 Secrets to Increase your Profit in a Departmental Store

 

1. Keep Your Store open on Weekends.
2. Put attractive discounts and combo offers.
3. Use the technology and try to keep your digital (like QR Scan Code)
4. Collect your customer's mobile numbers and share discounts and offers by creating broadcasts and sending invoices, visiting cards & greetings in WhatsApp.
5. Introduce Loyalty programs. For example: if a customer purchases goods worth Rs. 500 he will receive 50 points, which can later be converted into Rs.25 discount on the next purchase.

 

In conclusion, opening a departmental store can be exhausting but if you are looking for how to start a departmental store, then you are mentally ready for it. Most importantly, you have us for all the legal purposes handled by our experts at www.starteazy.in