How To Start A Mini Supermarket

Author :
Traffic Tail
| Updated On :
July 20, 2023

Supermarkets are as important as our daily lives and thus they are always alone when it comes to buying the daily needs of our groceries and even many more daily needs.

As a boom in the economy of India the purchasing power of people is also increasing This leads to an increase in the standard of Living with an increase in spending power. They also start to prefer to buy from new edgy and shiny stores with high-quality products for daily needs like dairy, cereal, pulses, cleaning items, etc.

Get a lot of information about How To Start A Mini Supermarket through this article!

Mini super market

Also, statistics show that the profit margin of grocery stores in India lies between 2% to 20%. Thus it’s been suggested that if you’re planning to start any kind of business go for the supermarket as it is one of the businesses which can survive in any of the locations. Also, it will provide a reasonable profit with a good Return On Investment.

Market research

Before setting up and doing planning for grocery business firstly find out the opportunities that can be there for opening a supermarket. As a supermarket is for the basic and daily needs thus you should have all the items that customers will look for under an umbrella.

With this industry is competitive in nature thus you need to identify the Market location where there is an underserved market to serve for to attract as many customers as you can. This can be done through market research that can make your business unique by enhancing your services from your competitors in the market.

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For starting any business there should be a business plan before investing in it because it will always help to act as a guide during the time of implementation of your business opportunities.

Thus for setting it you should have good knowledge about your customers and competitors so that you can plan according to the niche in the market. For this, you need to invest your time in knowing your customers by analyzing them and trying to find their interests, size, and buying preferences. This analysis will help you to set up the right person, place, product to sell, with pricing and selling strategies.

The whole concept of your business will depend on what the customers are looking for according to their background, their living standards, the locality and tastes, and preferences. So for growing your business you need to understand the needs and requirements of customers and work accordingly. With that, you also need to understand your competitors and check what your customers feel about your products in comparison to your competitors.

Thus you should ensure that you take a good time to sit back and draft a worthwhile business plan that can serve as a bridge between your investment and the profit of your business.

Thus for the legal purposes few entities to be considered are:

Sole proprietorship :

It is owned and operated by a single person and requires less finance with less liability.

General partnership:

It is also the same as sole proprietorship with two or more owners. But they do not have liability protection as in sole proprietorship.

Limited Liability Partnership :

This type has a partner where one works on day to day activities and another invests money depending upon the location of the company.


 For every business to be listed in the government documents and to be valid need to be legal. This legality is done for recognition and categorising your business into pertinent head. Also your legal documents will be considered as a proof when there is any question on your business.

Thus there are varieties of license and registration that are required for your business.

Property Registration:

This is the basic need to start your business. If your business is on your land then you need to have the ownership document of your land but if it is on someone else’s land then you need to have a document of a lease for that under a body called the Rent Control Act .

This should be wholly based on commercial purposes including rent, working hours, maintenance charges, renewable terms, the authority of sublease, consequences on the violation, Name, and address of the landlord, etc.

Trade License:

To operate in the market all businesses need to have trade licenses irrespective of their business purposes. This is for the purpose that your business is ethical with all the safety standards and regulatory aspects.

Trade license

It mainly takes 8 days to get this license if you have submitted all your documents on time with no breach of terms and conditions mentioned in the license. The documents required are:

  1. Photograph of your supermarket with goods to be sold.
  2. PAN card
  3. ID proof
  4. Address proof of owner
  5. Bank statement
  6. Certificate of establishment


As food items are also one of the basic needs and many of the supermarkets possess these items thus should have an FSSAI license for it. This business will come under Food Business heading of Food Safety and Standard Authority of India. This license has a period of 5 years after which it gets canceled if not renewed on expiration.


GST Registration:

As we know that GST is compulsory for all kinds of business you do this for this business also you should possess 15- digits GST code which will be generated when you register your supermarket under GST (Goods and Services Tax.) This registration is compulsory only if your annual turnover of a business is more than a specific amount.

  1. If your annual turnover is less than 20 lakhs rupees. It’s not compulsory to register your business and get a 15 digit GST Number.
  2. But if your business exceeds above 20 lakhs rupees turnover then it’s compulsory to register under GST and get your GST number.

After getting a GST number you will have to file 3 monthly GST Return where you have to give tax in 3 month period. And 1 annual GST Return where you have to file GST for the annual turnover of the business.


Location of the business needs to be most feasible as it is the most important factor which affects business growth. The location of supermarkets depends upon the customer base from place to place and from the demand for products. It also depends upon the age group of people in your targeted customers depending upon the product you have in your shop.

The location that you choose should have easy access to the customers like the center of the town or the busy market, also have ample parking space, or it should be near shopping centers, restaurants, bakeries, coffee shops, etc. Even you can check and choose the location where there is no grocery shop so that your business has the monopoly and grows accordingly.

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Also if your grocery shop is modern then you have to provide the people according to their level of a standard like AC hall, latest technology, Marketing on the basis of modernity.

Also statistics suggest that  supermarkets that exist in 5kms in urban areas are the main preference of people to go with.

A good location will be that which has the be sound of feet every day. So make sure that you need to choose the best location that will always house your business. Where the cost of place is minimal with all other aspects to be the best.


To manage supermarkets there is not only a need for products but also other physical items such as baskets and trolleys to carry items or products to billing machines. Scanner, barcode reader, computers, feedback machine for billing and taking feedback. Ladders and chairs for staff to put the things upside, also shelves for putting products and customers luggage, refrigerator for perishable goods.


The price factor is one of the most attractive factors which helps your supermarket to gain customers. So finding suppliers who provide you with stock to sell in your market at a reasonable amount is important.

They not only provide stock but promote your business at an extra level. Make long-term tie-ups with the vendors to deliver goods to you.

How To Start A Mini Supermarket

So the vendor should be the one who is helpful to you in a lot of ways for that proper research is needed thus vendor ranking based on before performance needs to be checked before choosing him.

But before finding a source you need to understand the market so that you can stock the right product in the right quantity according to their needs otherwise you will have a dead stock so you need to have proper research in finding suppliers.


Supermarkets are those where customers expect to have all the basic needs under one roof. So you should have all the items related to the basic needs and desires of customers. With the stocking shelves management also goes hand in hand.

Right stock on the right shelves works as the best part for shoppers because their reach for the product is good and get the license of your business enough and they get confidence that whatever they are buying is handled well and with care thus it builds customer relationships.

Also you can make choices about the product you need to put in your shop like you need to put only at the grocery shop or add perishable goods with grocery or have home appliances or all together with different sections.

Now after this keep the stock full for your customers it should not get off anyhow. For that fix, you reorder to maintain it. It should not even have more stock which can lead to deadstock due to expired products or damages. So management of products is a much more important factor.


This is the most important part of business as with the help of financial background only you can make a sound arrangement of your business. So the proper and clear forecasting about the business investment need to be done so as to achieve the company goals in future.

So make sure to arrange the amount that you can fruitfully use for your business if this is not being done you will not be able to run the business properly. You should invest the amount in such a way that you have savings for the future because a business is fluctuating everyday according to market influence.

Investment in this business is dependent on major components which are:-

  1. Cost of Leasing or renting a shop in the proper location.
  2. Setup cost of the supermarket such as interior design and number of racks.
  3. Purchase of products in stock.
  4. Business setup costs like obtaining a license from required authorities.
  5. Tech investment such as CCTV, billing counter, billing software, etc
  6. Salary for the employees.
  7. Marketing and advertising costs.

Mainly a medium-size supermarket with minimal facility will require 40 lakhs of investment. You can even go above it if you have financed with more facilities available and you can even expand your business in future to gain profit.


For selling the product not advisable to sell the items based on generalization. Don’t sell a product just because it’s in your competitors shop and it’s attractive but don’t sell it unless and until it is demandable by your consumers because it will just put on your cost and will make your stock a deadstock.The choice of such merchandise depends on some of the following reasons.

  1. Demand in the market: Dominantly you need to check the demand of products that your customer wants and sell according to it.
  2. Affordability of customers: Now check which kind of market you targeted and what their affordability of the product prices are.
  3. Level of demand whether high, low, or medium: Now check the level of demand is at the extraordinary level or at the normal level or at the minimizing level and bring the product in your stores accordingly.
  4. Accessibility of those products in the region: Now check whether the product is easily accessible for the customers in your region or it is hardly accessible and price your product according to it. If your competitors are also selling the same product, sell it at a little less price.

Filling your supermarket with different products that are demanded by your customers because if there are no relevant products to your customers they will not come again to your store and then it will be your loss. Some of the common merchandise every supermarket has are:

  • Common eatable items available for general use
  • Snacks, a soft beverage that is in trend
  • Vanity products like beauty cream, moisturizer, comb, etc.
  • Items used in the bathroom like soap, shampoo, face wash, detergent powders, etc.
  • Tea, coffee, sauce, etc.
  • Cleaning items require for domestic cleaning in kitchen, rooms, bathroom
  • Meat products both packaged and non-packaged
  • Baby care products include nearly everything a baby needs
  • Dressing items including latest fashion wear for men, women, and children
  • Houseware, cooking utensils, decorative items, etc.
  • Electronic items for domestic purposes like iron, microwave, TV Fridge, etc.
  • Furniture products
  • Cosmetics, hygiene products, grooming items, etc.

Apart from these, one can have specially selected items which can be based on the requirement. And also this selected item should be unique enough to make your brand valuable.

Hire Service and Staff

The supermarket is a kind of market which is labor-intensive thus 10 requires to hire staff for which services are provided. as we know that supermarkets mainly depend upon the need of costume customers but with that, if anything activity is to be done in the supermarket you need to have skilled or unskilled labor for it.

It is not the business that can be run alone by the owner, you need proper staff for it. The number of staff will depend upon your business size and what kind of services you are providing. For this purpose, you need to have efficient and reliable staff.

Some of the important positions that are needed for your business to work are:

  • Accountant
  • Cashier
  • Marketing Manager
  • Store Head
  • Salesperson
  • cleaning staff
  • general staff
  •  store supervisor

A supermarket means to deal with your customers so a start should be  honest and reliable enough to build customer relationships and make a bridge between the customers and the products.

So please your staff in such a way that it should not go wrong dealing with customers and train them how to interact with customers because good customer relationships will build your image in the market.

POS/ Supermarket Software to Systematically track sales, inventory, accounting, etc

In this modern era of technology, all the things are recorded in software rather than books so to run your business smoothly with no fault. With the help of software you have every record of your business thus, there is no chance of being cheated by the fraudulent.

So purchase the software that is reliable enough to maintain your records and track your business performance. With the help of software you can easily in one click or on a fingertip you can record your sales and then get your profit by subtracting your sales from your purchase.

You even can record all the customer details that will be helpful for you legally. A good P O S is always beneficial for your business for working fast and EASILY


Marketing means opening your business officially to the public. In the world of technology, you should go with online and offline technology to market your supermarket. You can use both ways to inform your customers about your supermarket opening.

Advertising is one of the most ancient and prominent ways To market your business. Therefore it is the most important way through which you can attract your customers. You can do this by giving advertisements in papers, magazines, radios with hoardings and boarding to attract new customers.

The second marketing activity is the word of mouth publicity which is very common for this type of business in this type of marketing. A person who gets satisfied with your services will praise your services in front of other people and will force them to buy products from your supermarket thus this confidence needs to be built in your customs by you.

Thirdly you can go with the online marketing of your business it can be through your website or by marketing on different social media platforms by targeting relatable customers. You can give advertisements on different social media to promote the business or makeup block of your supermarket.

Hence marketing your supermarket is one of the best ways to push the traffic and increase your sales this will increase your profit.

Home delivery

Nowadays people become lazy or do not have time to go to stores to buy items and thus it is imperative To Have an online business. Do you have online websites with the option of online payment and delivery of products at the address provided by the customer?

For delivering products to the home you need delivery boys and vehicles for the same, these vehicles need to be registered for commercial purposes this registration is done under RTO.

But if you have a bicycle there is no need for registration. Thus home delivery could be a good option to promote your business in this busy life and send the product of your customers to Their Doorsteps.


It is impossible to operate a supermarket business single-handedly. You need a significant staff of tellers, cleaners, stackers, accountants, marketers, and supervisors. That variety of personnel might mean that a lot of wastage occurs during the production or marketing process.

There are far too many stories of supermarkets that would have been successful had it not been for a pilfering worker or infiltration. That means from time to time you need auditors who do not just consider what is involved in the marketing process or even the money but also the activities of workers.

You will need to install an appropriate security system and update it on a regular basis. The security is not only for the merchandise that you are selling but also the workers that are in the store.


Starting up a small mini supermarket in India is one of the lucrative businesses because of the growth in the youth population. You have a lot of opportunities if you start a supermarket business as the daily needs of persons are increasing.

The sport starting the business you need to know about what is required and what is not required you need to register yourself legally with that try to be unique to attract customers and built a reputation this reputation will help you to grow you need to be unique in one or another way for starting a supermarket you also after realizing all the plan you need to market your business online and offline basis so as to attract more and more customers related to you this will enhance your business and you will able to earn more. The spot at the superMarket is the best business to invest in.

Frequently Asked Questions

Ques 1. How do I start a mini supermarket business?

Ans: For starting a supermarket business you need to take care of-

  • Having A Solid Business Plan
  • Choosing Your Locality
  • Understanding Your Customers
  • Calculating Your Investments
  • Digitizing Your Store
  • Obtaining All Licenses/Permits
  • Promotion of your business
  • Home delivery

Ques 2. Do you need to hire employees for supermarket?

Ans. Yes, you need to hire employees for supermarkets because supermarkets are a place where you need to come in contact with the customers and need to have a proper team for this. This will help you to build a good image of your business.

Ques 3. What are the marketing strategies to be used for supermarkets?

Ans. You can use both online and offline marketing strategies for your supermarket but this strategy needs to be good enough to attract customers and gain profit.

Ques 4. Which location is best for the supermarket?

Ans. If you are concerned about the location where you have to start a supermarket then choose the location Which either has no supermarket or which has a supermarket but does not purchase the latest trends.

Ques 5. Investment required for supermarket

Ans. The investment depends upon the size of the supermarket you are opening. Mainly for mini supermarkets, you require 20 lacs as your investment this can go higher if you have a large amount of investment. And with this, you can provide unique services to your customers.

Ques 6. Is it important to have home delivery options in supermarkets?

Ans. As we know nowadays every person needs 2go online for everything because they don’t have time to go physically to buy products. If you have home delivery options in your supermarket your customer target will increase and you will be able to earn more profit with customer satisfaction.

Ques 7. What are the legal requirements for starting a supermarket in India?

Ans. For starting a supermarket in India you need to register your business and get the license of your business. You need to have registration of the leased property or your own property with that you need to have a GST number for your business.

Supermarket deals in food products so you need to have a license of FSSAI according to the demand also irrespective of what kind of business you maintain you need to have a trade license for doing trade in the market does this all are the legal requirements for the supermarket to be settled in India.

Ques 8. Tools and equipments required for supermarket

Ans. Yes, you required some tools and equipment for the supermarket. These are vending machines, cash counters, baskets rakes, swiping machine stairs and stools for workers, scanner barcode reader computer feedback machines, shelves for putting customer luggage, etc.

Ques 9. Is GST registration compulsory for supermarkets?

Ans. Yes GST registration is compulsory for supermarkets whose turnover is above 20 lacs and if your turnover is less than 20 lacs then it’s not compulsory for you to register and get 15 digit GST number it’s all your choice how to register yourself for GST if your turnover is less than 20 lacs.

Ques 10. How many type of supermarkets are there in India?

Ans. there are almost three types of supermarkets in India one is a sole proprietorship in which a single is there who runs the business second is a partnership business in which one or more partners run the business on a partnership deed third and the last one is limited liability partnership in which one partner see the daily chaos of the business and one or more and other partner invest for the business.

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