Photo by Eduardo Soares on Unsplash
How many times have you been thankful you were able to run into a convenience store last minute and find what you need? If you’re like most of us, it’s probably more than a handful. So, when it came down to deciding which type of business you wanted to open, you wanted one that allowed you to give back to the community. Whether you’re a 10-minute drive down from a neighborhood or right underneath an apartment complex, everyone needs to have a convenience store around. In this post, we’ll be covering a few steps to opening your own convenience store.
Develop a Plan
No matter what business you want to open, you will need to build and maintain your business and it should always begin with a comprehensive plan. This plan will go over everything your business stands for as well as its operations. Here’s a small list of what should always be included in your plan:
- Mission statement
- Budget
- Executive summary
- Analysis of your target market
- Structure of your store
- Stock and inventory
This is what every store plan needs to have written down because it’ll help you remain focused and organized. Going into this process blindly can cause a few issues.
Take Out a Small Business Loan
A convenience store may be a simple concept, but the costs sure aren’t. Opening a convenience store isn’t cheap, however, the overall price you have to pay varies on a few factors, like location, space, amenities, and even what you plan on selling. Every store is different, so you’re going to have to make a budget to get a rough estimate. Regardless, financing tens of thousands, and in some cases, hundreds of thousands aren’t something anyone can just do. Procuring this kind of money can take a very long time, but you can easily speed up the process by taking out a small business loan.
These types of loans can give you the money you need to get started, but that’s not all it can do. Compared to a standard business loan, small business loans offer additional benefits for new owners. These loans can make it easier to build credit, help, keep you from dealing with cash flow problems, fund the necessary equipment and lower your taxes. Furthermore, this also allows you to build your relationship with the lender. Why is this important? Well, having a solid relationship with a lender can make it far easier for you to get more funding, should you need it in the future.
Determine the Right Structure You Need
Lastly, you need to choose a structure for your new store. This is a legally mandated process, but it can be a little stressful deciding on which is best. A sole proprietorship means you own the store in its entirety. That also means you’re legally obligated to file taxes as well as handle liability claims. Partnerships are basically the same thing except it’s owned by more than one person. A corporation makes your store a legal entity that’s separated from the traditional business world, which gives it some of the best protection available. An LLC takes the best of all three and combines them into one structure.
