Introduction to starting a kitchen store business in India
Are you interested to start a kitchen store? If your answer is yes, then in this blog we focus on how to start a successful kitchen store when you have less investment. Even though the Kitchen store is considered a traditional business in this age of the internet, people plan to buy kitchenware from brick and mortar outlets. That is the reason why the kitchen store business is an interesting and profitable business option for small businessmen.
A step by step guide to starting a kitchen store business
Location wise a kitchenware business is attractive for almost any location. However, you must store the products as per the demand of the local people there.
Market research for starting kitchen store business in India
In addition to that, the business offers many diversified avenues for beginning the venture. You can initiate a large kitchen store using an extensive range of items. On the other hand, you can also start a small store with a specific category of items. In small cities and suburban areas, you can begin a small store according to the need of the local people.
Moreover, location wise you can go opt for two options. First is an individual store and the second is shop-in-shop. However, a shop-in-shop model is more attractive for this type of business. Because in this option, you can gather moderate footfalls or crowd those are mainly visiting the mall or the shopping center.
Business plan for starting a Kitchen store
It is recommended to refer to an experienced interior professional for planning and crafting a floor plan. You must have the proper areas for displaying the products, cash counter, for storage of items, etc. If you are willing to give your clients a comfortable shopping experience, then you should definitely focus on the interiors. Moreover, you should be capable of in-store and outdoor branding. Create a good design for the outer wall of your store and make it catchy.
Apart from the kitchen items, you should obtain office stationeries, printers, computers, and a POS (point of sale) software. Retail management software is mandatory for operating the store smoothly.
License, registration and permission for starting kitchen store business
To start the kitchen store business one must acquire a Trade License first. It is obligatory for any other business. Trade Licenses are issued by the local municipality. In case the person who is selling the products is willing to sell their goods out of the city/town but within the state, then also they have to apply for the Trade License following certain procedures.
Apart from the Trade License, GST or Goods & Service Tax registration is very essential nowadays. So by taking the consultation from any local Chartered Accountant or Tax consultant one may register for GST. If the turnover of your business is greater than Rs. 20 Lac then GST will be applicable. However, each business should register under the GST network for starting their operations.
Below is the list of licenses which you need to apply for starting kitchen store business-
- Firstly, apply for MSME Udyog Aadhaar, which is available as online registration.
- Then, the necessary trade license from the local municipality should be used.
- Nowadays, it is a must to apply for GST registration.
- You also need to apply for a business PAN card.
- Try to create a current account in any of the nearby banks.
- Moreover, it is essential to check the tax liabilities as well for this business.
Products required for starting kitchen store
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- Systematic Investment Plan
A large size kitchen store encompasses a wide range of items and subcategories. Here we place a brief list for your convenience.
Kitchen Appliances: In this section, the most common items are the grinder, mixer, juicer, microwave, food processor, kitchen chimney, etc.
Cooking Essentials: Some of the most famous products are Frying pans, Pressure cookers, Gas stoves, Tawas, and Kadais, etc.
Tableware: In this section, most popular and gift-oriented items are present such as cutlery, dinner sets, casseroles, bowls, glasses, mugs, crockery items, etc.
Storage: Storage items are important commodities for the kitchen. Some of those items are jars, thermos, containers, lunch boxes racks, water bottles, and holders.
Kitchen Tools: These are moderately low-valued items. Some of the essential kitchen tools are choppers, slicers, graters, knives, spatulas, etc.
Bakeware: Some of the main bakeware items are bakeware molds, baking tools, tins, etc.
So you may start a full-fledged store with the complete range of products or, you can start a small kitchen store with a specific section of products and later on expand based on your budget and profits.
Step-by-step procedure for starting a kitchen store business
Registration and Licensing
First of all, you must pick the right form of organization. And then you will register your business. For a small outlet, you can start the business in the form of proprietorship. Additionally, you should apply for several licenses as listed below for your convenience.
- Apply for trade license
- Get the license under Shop & Establishment Act.
- Verify whether the VAT is applicable or not.
Location for starting kitchen store business
As per your business size and range of products, opt for a good retail location. You should have a location that has a high footfall rate. In addition to that, your store should have a wide window area. Verify the car parking provision as well which a major problem in urban areas is nowadays before finalizing the space.
It is recommended to obtain a place on rent. A rental space reduces the upfront capital investment that is needed while purchasing a retail space.
Kitchen items which you need to procure
After securing the place, you have to obtain the items from the manufacturer or from the wholesale markets. Basically, the purchase source is the major aspect that will determine the profit margin in any type of retail business. So you must acquire your kitchen store products from reliable suppliers who will provide the items at reasonable rates with many offers.
Hiring employees for this business
Employees play a significant role in the retail business. As per the store size, you must appoint experienced people. If you are opening a large store, then you must keep department wise sales employees on the floor.
Marketing strategies for promoting kitchen store business
A kitchenware retail store should have both offline and online promotion. In addition to that, you must approach the public and start advertising and do sales promotion work. In India, kitchenware items are also thought to be value-based gift entities. So you should keep the product range accordingly. It is also recommended to have a business website in the present scenario. Whenever you have the possibility and options change your website into an online store. So that customers can check the stock over the web and they can book online. It will definitely help you in increasing your sales.
You should not miss this: How to Start a Food Delivery Business in India.
Investment to start a kitchen store business
You need to invest a minimum amount of Rs. 3-5 lakhs to set-up the kitchen store business in India. It is better to start the store on a small-scale because the huge investment is not suggested during the initial stages.
Profit in kitchen store business
You can get 10-15% of profit in the kitchen store business during the initial stages. Later based on the customer attraction and quality products you offer, your business profits can be increased to 25-30%.
Finally, the much inevitable social media is the perfect tool to advertise your items. Promote the new arrivals to your existing clients through them and ask them to spread about it to their relatives and friends. Also, there are several methods to promote this business. However, you should advertise your kitchen store business according to your product range and target public.
In case if you are interested in this: Low-cost Agriculture Business Ideas for Beginners.