When the COVID-19 pandemic started, I never saw the adverse financial impacts it came packed with. Cases surged and the government had to come up with ways to contain the spread of the virus. As a country we had to close down most of our businesses. For me, I had to close down my Cybercafé and chose to help my community by venturing into the grocery business.
My grocery business had its highs and lows before it would pick up. But after studying its structure, I found myself making profits out of it. In my article today, I will teach you on how to maximum profits out of grocery business
These habits are vital, if you want to succeed in Grocery business
- Always remember your customers
- Have a clean environment
- Dress and present yourself professionally to your customers.
- Try looking for new customer i.e. You can achieve this by reaching out to hotels and homes in your location.
Table of Contents
Five things that make grocery businesses fail and their solutions.
Lack of financial records.
Keeping record of your financial transactions in the grocery business is important. Most people tend to forget this. Even at the sell of a single onion, record it somewhere that you sold out a certain number of units.
Buy a book, preferably a squared book to write your transaction history.
Lack of Adequate Marketing.
Just like big established businesses, your small grocery business can fail if you do not market it well. Marketing should be a core part of your daily activities. Invest resources in shopping for new customers; it’s also important to offer after sale services like packaging.
Unwillingness to Delegate and manage the business.
If you want to succeed, you need to learn the rule of management. Know what to delegate and what you can do by yourself. For instance, if you cannot write a proper business plan, look for someone who can, if you cannot do proper marketing, meet someone to teach you. Great business leaders are those who can delegate responsibilities effectively.
Most business fail because of inadequate planning. As a rule of thumb, every business should have a business plan, no matter how small the business may look. Great companies, started small, so draft a business plan, analyze your business using the SWOT model of analysis; Strength, Weakness, Opportunities and Threats.
Lack of up-to-date Technology.
Technology evolves. Its evolvement should go hand-in-hand your business. This gives you a plus in marketing .
Here are a few Ideas of staying aboard with new technological trends in the market as small grocery owner.
- Create a social network for your grocery business
- Have online transaction accounts such as paypal, moneygram and other trusted mobile finance firms.
- Have a radio or even newspapers for your customers to read. Be sure they will love that.
How to ensure maximum profit in your grocery business.
Enroll for an Insurance
To protect your self from losses, you should opt in for any Small business insurance program. Groceries fail because of taking undesired risks. This risks develop serious financial problems, leading to failure.
Have required Licenses and permits
Obeying the law of the land will bring harmony into your business. Obtain any relevant licenses and permits for your grocery business. Crucial permits such as health permits have sent groceries into abyss and their owners to prisons. Other people have to run tirelessly to evade licensing and permit officials.
Have a saving account.
Savings can easily make you realize the success of your grocery business. Whatever small profit you find, so long as it is not a loss, save. Hand-to-mouth habit of running businesses leaves a big financial gap for your grocery.
Select your Prices strategically.
In commerce, we learn about price selection. Consider factors such as costs i.e., fixed costs and variable costs. Determine the price of your products by making sure you recover costs incurred when buying a new stock and delivering it to the market. Add a favourable profit margin and voila!! You’ve set your price strategically.
Keenly Manage your Cash flows.
Cashflows are the transactions your grocery business undertakes. Handle money keenly. Count twice or thrice to be sure not to give an extra coin to your customers. Do not hurry when making transactions. You are likely to make wrong calculations that would either favour your customer or you.
Pros and cons of a grocery business
- Grocery suppliers may offer excess products
- You will always find extra units for home consumption as a grocery owner.
- Grocery business has a lot of customers
- You have to spent long hours waiting for customers
- Most of the grocery products are highly perishable if you don’t have proper storage.
- You have to, at all times. Maintain highest levels of hygiene.
- Some grocery products are seasoned. You have to be aware when they are back on the market.
- Suppliers may pack spoilt grocery products.
Grocery business is one of the most popular small and medium sized enterprise in Africa. Many women with a few men venture into this business. It will be quit dishonest to fail crediting the role such SMEs have been playing in ensuring Africa is cushioned from a full blown covid19 financial effects. It is still an unexploited market gap in many parts of Africa.