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How to Start a Small Grocery Business

How to Start a Small Grocery Business

Have you ever wanted to start a business but didn't know where to start? This article outlines how you can get your grocery business up and running.

30th June 2020
Reading Time: 2 minutes

Before starting a new business you want to make sure you have a plan to ensure you meet all the administrative, financial and legal requirements. To start a small grocery business there are a few things you will need to consider, ranging from your business structure to sourcing produce to marketing your grocer. Keep reading to get your business off on the right foot. 

1. Business Basics

First you will need to decide on a business structure. Will you operate as a sole trader, partnership or company? You should consider which structure will work best for your business goals.

Secondly, you should determine the location of your grocery business. You should consider the size and location of where your store will be run. You should consider if you will buy or rent and how this will affect your expenses in the short and long run. Maybe you will even consider a mobile location to create a larger customer base and stand out against the other grocery stores.

Next, you will need to register for an Australian Business Number (ABN). Registering an ABN is a simple process, and your business will be able to gain benefits including tax benefits.

Now you need to decide on a business name. Once you decide on your name, you should check the availability of the business name you have chosen. If the name is available, you can then register your business as a trademark to ensure that you have the exclusive rights to your business name throughout Australia. This will be beneficial for branding. 

2. Licences and Permits

When starting any business you should always check if you require any licences or permits. For example, in NSW any business that handles or processes meat, seafood and shellfish are required to hold a NSW Food Authority Licence. If your independent grocer chooses to sell these products you will be required to attain a licence. Every state and territory has different regulations so check with your local authority to ensure you have the correct licences. 

3. Source Your Equipment

To run a grocer you are going to need products. Firstly, you must organise a supplier who will provide the fresh food and products which you will sell to your customers. Secondly, you must consider the type of shop fixtures and equipment you will need to operate your business. This could include scales, fridges, cash registers and trolleys. All the equipment will be a considerable expense. You should do your research to find the best deals to optimise the profitability of your business. 

4. Hiring Employees

To run your business smoothly you may want to consider hiring staff. You should consider how many employees you are looking to hire and what type of employment they will receive such as full time, part time or casual. You will then need the appropriate employment agreements drawn up and signed.

5. Market Your Business

Now all you need are customers. A strong strategic marketing plan will allow you to consider the most effective advertising method to reach your target market. You may decide to start a social media page or put an advertisement in your local newspaper. Another simple and effective approach of reaching new customers is through word of mouth.  

In conclusion, starting a business is an exciting and rewarding experience. If you are looking for further assistance with any aspect of your business, contact a business lawyer today.

Don’t know where to start?
Contact a Lawpath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.

Author
Liesel Millard

Liesel is a legal tech intern at Lawpath, working as part of the Content Team. She is currently in her second year of a combined Bachelor of Business and Bachelor of Laws degree at the University of Technology Sydney. She is interested in areas of sports, corporate and intellectual property law.