According to an opinion from Anthony Gross, Grocery-Anchored Real Estate is a "current attractive gold mine for investors." Anthony is the Co-Founder and the managing principal of First National Realty Partners, a commercial real estate private equity firm in New Jersey. The Covid-19 pandemic stirred rapid uncertainty among investors in the retail sector because it led to the rise of E-Commerce. There has been skepticism over the future of business that deals with non-essential retail goods. Skeptics believe the industry is subject to perish over the rising digital disruption.
On the contrary, retailers that deal with essential goods have remained steadfast despite the restrictions that the pandemic ushered into the market. Retailers in grocery stores are mining well because they deal with crucial daily necessities. The Covid-19 pandemic justified the beauty of investing in the grocery business owing to its ability to adapt to restrictions. Despite the increased popularity of online shopping, there is no doubt that people still flock to grocery stores because there's an undeniable desire to see and touch merchandise before purchasing it. Therefore, starting a grocery store could be an indisputable road to success because, with diligent management, there is a surety in daily sales.
Grocery Store Business Plan Guide for Beginners
Choose a suitable location
To be successful in your grocery store business, the location of your store is vital. An ideal location will ensure a good flow of customers, but a poor site will jeopardize sales. You should choose a location close to social places like coffee shops and restaurants because people flock there and you stand a chance of attracting most of them. Make sure the area is clean and has a parking space for the convenience of your customers.
Understand the market
Before starting a grocery store, research the local market's demands and competition to gather information. Even though items in a grocery store are in constant need, you should know the local's favorites to know the brands to stock. As a valuable addition to your business, consider buying from fresh organic food suppliers who sell products that have reasonable demand in the market.
Create a business plan
After researching the market, you should make a business plan. You can involve a financial strategist or an experienced grocery store owner for advice. The business plan should have the details of the following five essential aspects:
Source of Funds
Name your store
After establishing the store, giving it a good name is vital. Your store's name is essential because it defines your business and gives it identity among your competitors. A good store name is the basis of the trademark design that poses a significant value to your business. After you've named it, launch your store's website to create awareness among your customers.
Create a marketing plan
An ideal marketing plan is a prerequisite for your grocery store's success. Marketing your business is one way of communicating to the public what your business deals with and trying to attract them into doing business with you.
The following are some of the best marketing strategies you might consider for your grocery store:
Hand Deliver Produce Great customer service and on-time produce deliveries are marketing tactics that help your brand stand out. Before opening day, drive around the neighborhood and offer local customers free samples of your produce. Consider partnering with InstaCart (or creating your own delivery service) to make your grocery store more convenient. Plan your delivery routes via software to ensure perishables get to potential customers quickly.
Since a grocery store is a local enterprise, you could build up your name locally by starting a door-to-door campaign. You could also design posters, flyers, or pamphlets to create general awareness among the locals.
The Internet is a fantastic tool for advertising. You should create a website for your store and list the merchandise it sells. You could also go old school and advertise your store through newspapers or radio. The most critical aspect of an advertisement is highlighting your business' niche. Let the public know you deal with goods like veggies, organic fruits, or vegetables.
Have a good display pattern
An ideal display pattern in a grocery store is one way of marketing your business to the customers. Arranging your merchandise, so customers find it easy to spot and pick items is good because it boosts your sales apart from saving their time.
Give your store a grand opening
Before your store opens, give it an 'Opening shortly' or 'Coming Soon' tag line. The strategy will create interest and curiosity among your possible clients and guarantees an influx of customers once the store opens. A few days after the store opens, organize a gala opening ceremony at the store. Bringing a public figure like a local celebrity is a good way to attract the public's attention. You could also try offering special discounts to your clients during its grand opening.
What can Mainvest do for your business?
Mainvest allows you to raise capital from your community, without giving up any ownership or control in the process. By running a Mainvest campaign, you can engage the community and get buy-in from local stakeholders. If you are ready to take the next step as an entrepreneur, reach out to us here.