Which shop is Most Profitable in India | Take your Pick

There is no doubt that retail shops are the most profitable in India. It has emerged as a fast-paced industry that accounts for 10% of India's GDP.

 

Not only this, but it requires low or moderate investments with high-profit margins.

 

In fact, it does not require much knowledge or expertise as well.

 

All you have to do is be polite with your customers to make them regulars.

 

What is a Retail Shop?

 

A retail shop is a store where a customer directly buys products at MRP without any mediator.

 

The retailer gets goods in large quantities from wholesalers and lets you buy them according to your need.

 

Moreover, service-related businesses such as beauty parlors or rental places are also in the retail industry.

 

In a product-related business, your investment will be in products mainly. On the other hand, in service-related business, your investment will be in manpower.

 

Steps to Start a Retail Store and EARN PROFITS

 

Step 1 - Decide the Type of Retail Store 

 

Choose the type of retail store on the basis of your investment capability.

 

Types of Retail Shops

 

Here is a comprehensive list of different types of retail shops, to help you find out which shop is most profitable in India.

 

• Low Investment Retail Shops (Rs. 50,000 to Rs. 1 Lac)

 

Kirana Store 

Minimum Investment - Rs. 1 Lac

Profit Margin - Up to 60%

 

Stationery Stores

Minimum Investment - Rs. 1 Lac

Profit Margin - 20% - 50%

 

Fruit Shop

Minimum Investment - Rs. 50,000

Profit Margin - Up to 40%

 

Flower Shop 

Minimum Investment - Rs. 50,000 - Rs. 70,000

Profit Margin - 60% - 90%

 

Altering Shop

Minimum Investment - Rs. 40,000

Profit Margin - Up to 40%

 

Seed Store or Nursery

Minimum Investment - Rs. 30,000 - Rs. 50,000

Profit Margin - Up to 40%

 

• Medium Investment Retail Shops (Rs. 2 Lacs to Rs. 15 Lacs)

 

Medical Store

Minimum Investment - Rs. 3 - 4 Lacs

Profit Margin - 20% - 50%

 

Ethnic Wear Stores

Minimum Investment - Rs. 1 - 4 Lacs

Profit Margin - 40%

 

Gift Shops

Minimum Investment - Rs. 5 - 10 Lacs

Profit Margin - 25%

 

Cosmetics Shop

Minimum Investment - Rs. 1 - 5 Lacs

Profit Margin - 60%

 

Cake Shop

Minimum Investment - Rs. 5 - 15 Lacs

Profit Margin - 30%

 

Perfume Shop

Minimum Investment - Rs. 1 - 3 Lacs

Profit Margin - 40%

 

Bakery

Minimum Investment - Rs. 3 - 4 Lacs

Profit Margin - 20% - 60%

 

Sweets and Snack Stores

Minimum Investment - Rs. 5 - 10 Lacs

Profit Margin - 50% - 60%

 

• High Investment Retail Shops (Rs. 20 Lacs Minimum)

 

Coffee Shops

Minimum Investment - Rs. 10 - 20 Lacs

Profit Margin - 20% - 70%

 

Ice-cream Parlors

Minimum Investment - Rs. 5 - 10 Lacs

Profit Margin - 40%

 

Fast Food Restaurants

Minimum Investment - Rs. 10 - 50 Lacs

Profit Margin - 40%

 

Two-wheeler or Four-wheeler Showrooms

Minimum Investment - Rs. 30 - 70 Lacs

Profit Margin - 30%

 

Beauty Salons

Minimum Investment - Rs. 15 - 30 Lacs

Profit Margin - 10% - 30%

 

Restaurants

Minimum Investment - Rs. 15 - 30 Lac

Profit Margin - 15% - 20%

 

Step 2 - Find a Location

 

The location plays a very crucial role in a business's profitability.

 

Standard Area Requirements for Retail Shops in India

 

Low investment Shop - 60 sq ft to 150 sq ft.

 

Medium Investment Shop - 150 sq ft to 300 sq ft

 

High Investment Shop - 500 sq ft to 2000 sq ft

 

For finding the location to start a retail shop with the most profits in India, do the following:- 

 

• Find a location for your shop in your city.
• See if there are similar shops nearby in that area.
• Analyze their scale and daily footfall.

 

You can also ask them their daily earnings and monthly profits (pretend to be on a survey to know this).

 

After choosing the location, you can either go for renting the place or buying depending on the budget.

 

Step 3 - Legal Registration

 

Registering your shop is important to avoid any legal conflicts in India.

 

You can register your shop as any of the following: -

 

Low and medium investment shops can be registered as sole proprietors or partnerships.

 

However, you may have to register your high investment retail shop as Private Limited Company Registration, One Person Company or LLP.

 

Along with registering your firm, you may need GST registration as well if your income exceeds the slab.

 

Apart from that, you will require Shop and Establishment Registration.

 

Besides, if you are starting a retail shop in Mumbai, apply for Gumasta License Mumbai.

 

Step 4 - Find Wholesalers

 

For a shop to be successful and give profits, you must have all the products required in the neighborhood.

 

Also, you must know what products or services are more in demand and have less supply.

 

It would help you with targeting a wider niche and building a loyal customer base. 

 

Thus, once you know what you need, look for wholesalers near you.

 

Further, negotiate with the wholesalers for the best deals and offers. After that, choose the one that gives you the most profits.

 

After that, buy the stock and start displaying it in your store.

 

Ensure that the products are visible to your customers. Accordingly, they will know where to look when they need something.

 

Step 5 - Market and Promote your Shop

 

Once you start your shop, you will have to tell people about it. 

 

For this purpose, use the print media and social media.

 

Tap your local social media pages.Every has their own these days.

 

You can also put up posters about your new ventures and circulate about the opening through your friends and family.