How much amount is required to start a small supermarket?
Let’s add everything up and see!!The fee for registering the business in the United States – $750.Legal expenses for getting licenses and permits as well as accounting services (software, P.O.S machines, etc) – $3,400.Marketing expenses for the grand opening of your Grocery Store – $7,500.Hiring a business consultant (including writing business plan) – $2,500.Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,500.Payment for rent for 12 month at $1.76 per square feet in the total amount of $105,600.Construction of racks and shelves – $20,000.Other misc start-up expenses including stationery, phone and utility deposits – $3,000.Operational cost for the first 3 months (salaries of employees, payments of bills etc) – $60,000Start-up inventory (stocking with a wide range of groceries from different brands) – $100,000Purchasing storage hardware (bins, food case) – $3,700Counter area equipment (counter top, sink, ice machine, etc.) – $9,500Store equipment (cash register, security, CCTV, ventilation, signage) – $18,500Furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs): $4,000.Building and hosting a website: $600Miscellaneous: $5,000So What Does This Mean?Starting a small – scale but standard grocery store business in the United States of America will cost about $75,000 to $250,000. Please note that despite the fact that it is a small – scale grocery store does not mean that it is in same level with the average mom and pop grocery store in the United States.You will really need a closer estimate of $300,000 to successfully set up a medium-scale but standard grocery store in the United States.Keep in mind that when it comes to starting a standard, large-scale chain grocery store in the United States of America, then you should look towards budgeting well over $1,000,000!
Marketing question?
It's not the simplest answer, and varies by market and industry, but distribution channels can actually be a source of competitive advantage. GBC could never be profitable if they didn't have amazing distribution set up, not just channel partners but many strong wholesale distribution centers as well, and no one can topple them because of their channel dominance despite their inferior overpriced products, worthless management, and overwhelming bureacratic dry rot. Other firms, particularly small-time manufacturers of sauces and condiments, could raise unstoppable hell for the big companies if they could only get into grocery stores other than the half-dozen in their home towns. It's unfortunate but many really great products just never get a chance to compete because of the way shelf space is held for ransom in the grocery business, especially specialized sauces for diabetics... though that market is changing. In this FedEx, eBay, and YourName.com world in which we live, durable goods know no limits but their sales force. Other industries are locked out from nimblefooted competition by distribution venues that hold their suppliers in blackmail. So how does geographical location affect bla bla distribution channels? Less than ever, that's how- but it still depends on the industry.