A convenience store is an integral part of people’s daily lives. Offering a wide range of products in targeted locations and being open for longer hours is a service many people need. Read this article to find out how you run your own convenience store.
1. Register your business structure
After deciding you want to start a business, you will need to determine what business structure you will choose. Depending on your choice, you can either be a sole trader, partnership, or a company.
Subsequently, being a sole trader means you have unlimited liability for the costs you incur in running your own convenience store. Being in a partnership means that you will need a partnership agreement to set out the terms and clauses of running the business alongside your partner(s). Forming a company will mean that your business will be considered a separate legal entity and you will be taxed under corporate rates. Either way, you will need to first register your business and obtain an Australian Business Number (ABN).
2. Franchising
Another way you can run your store is by entering into a franchise agreement. This means that you’ll pay a fee to the franchisor to run a store under their brand, and be supplied with the all required materials and products to sell. In fact, most convenience stores are franchises – just think of 7/11, EzyMart or City Convenience stores in Australia.
3. Make a plan
No matter what type of business you operate, you should always have a business plan. This should include things such as branding, furnishing, who your target audience will be and how you’ll serve them. You will need to determine the location of your convenience store and target it to places which attract a large number of people, such as a business hub or near a tourist attraction.
Subsequently, it’s important to decide what products you’ll provide. You can provide a good general range of supermarket products, or also stock car-related products. This is a good option if your store will be located next to a petrol station.
4. Insurance
It is important that your convenience store has insurance to protect you if anything unexpected happens. Public liability insurance will protect you if a third party is injured or their property gets damaged in your store.
Final Thoughts
Convenience stores are known by this name for a reason – they provide much needed products when a customer requires them on short notice. For this reason, convenience stores can also profit from charging higher prices than larger supermarkets. Depending on where you open your store and what you sell, convenience stores can earn you a neat profit. For further advice about starting your business, you can get in touch with a business lawyer here.
