How to Start a Mini Supermarket in Kenya
A mini supermarket is among the profitable businesses in demand in Kenya. You can start from a retail shop and then to a wholesale shop and expand to a mini supermarket. A mini supermarket is a business that is doing well in residential and fast-growing towns.
Kenyans are moving away from supermarkets and opting to shop in mini-marts. With a good business location, startup capital and strategy, a mini supermarket is a profitable business to start in Kenya. This is how you can start a mini supermarket in Kenya.
Do a Market Research
Before starting a mini supermarket, it is advisable that you do market research. When doing market research, you try to find out what are the fast-moving goods, good business location, startup capital, competition and if it is worth starting the business.
Carrying out market research will help you determine if the business is viable before investing your money. This way, you will avoid making losses.
Write a Mini Supermarket Business Plan
If you have carried out market research, it easier to write a business plan. A business plan helps you plan your ideas and also plan your finances. A Mini supermarket business plan should highlight the following:
- Business location
- Business name
- Startup capital
- Sources of capital
- Business opportunities
- Business risks and weaknesses
- Mini supermarket product list
Read more: How to write a business plan.
Identify a Good Business Location
One of the factors that affect the success of any business is the business location. A mini supermarket is best suited for residential areas in the fast-growing towns. Also, look for a location where there is no high competition. For instance, there is no use in setting up a mini supermarket next to a supermarket due to high competition.
You can set up your mini-mart near institutions like colleges and universities. A mini supermarket can also thrive well next to a petrol station where travelers can drop and shop.
Acquire Necessary Business Permits
You need to ensure that your mini supermarket is licensed and meets all the legal requirements. For instance, you need to register a business name for your mini supermarket. You can register the business name on eCitizen for only Ksh 1,000. This will ensure that no other business can use your business name.
You need the following business permits and licenses to operate a mini supermarket in Kenya.
- Single Business Permit. You need a single business permit to operate any business in Kenya. You can get it from County Council Offices for an average cost of Ksh 7,000.
- Health License. You also need to have a health license since you will be dealing with foodstuffs. A health official will be sent to your business premises to inspect if it meets all the health standards.
- Fire and safety certificate. You need to have fire handling equipment like fire extinguishers to get this certificate.
Read also: Business licenses you need to operate a business in Kenya.
Branding and Partitioning
You need to brand your mini supermarket and partition it in such a way that it looks appealing. Make sure there are shelves where you can display items. Make to place items in their right places.
For instance, have a place for foodstuffs and non-food stuff. This makes your mini supermarket look organized also makes it easy for customers to locate items.
It is also good to have price tags for all goods displayed on the shelves. This will make it easy for customers to know the prices for your products. Finally, ensure that your business has enough lighting and is well ventilated.
Read also: How to start a grocery store in Kenya.
Launch Your Mini Supermarket
Once everything is set, you can now open doors to customers. When your business is new, you are not likely to have many customers. But as your business gains popularity and customers get to know about its existence, you will getting many customers.
Mini Supermarket Product List in Kenya
You need to stock the following products in your mini supermarket in Kenya.
- Household items
- Fresh produce
- Bakery products
- Soft drinks
Market Your Mini Supermarket
It is best that you market your mini supermarket so that you can get customers. Some of the ways you can market are through social media, word of mouth, customer referrals, signs and posters and pamphlets.
The best way to attract customers to your business is by offering excellent customer service and customers will refer other potential customers.
How Much Do I Need to Start a Mini Supermarket
The cost of starting a mini supermarket in Kenya depends on the business location and the size of your business. Starting a mini supermarket in cities like Nairobi can be expensive due to high expenses like rent. However, you can start a mini supermarket with a startup capital of Ksh 400,000.
The following is a breakdown of the startup capital
- Rent – Ksh 40,000
- Licenses – Ksh 15,000
- Stock – Ksh 250,000
- Branding and partitioning – Ksh 100,000
- Marketing – Ksh 50,000
Is Mini Supermarket Business Profitable in Kenya?
The profit margin for a mini supermarket is usually between 15% and 30%. This makes it a profitable venture. The demand for mini supermarkets is high since many Kenyans prefer to shop here. This makes a mini supermarket a profitable business if you find a good business location.
One of the ways to make it in this business, is by being unique. Make customers find a reason to shop in your mini-mart. You can offer excellent customer services to attract and retain customers. Finally, make sure to stock fast-moving goods to avoid losses due to product expiration.