How to Start a Supermarket Business

Greg Brian is a freelance writer who took his diverse writing skills to the Internet in 2007. He currently writes for various prestigious websites. He earned an Associate of Arts degree in business management from Trend Business College in 1993. By Greg Brian, eHow Contributor

updated: May 05, 2010

Select a cart and take a tour of your future supermarket...Opening a supermarket might seem like a ridiculous business idea when so many chains already dominate the marketplace. Yet you'll still find independent supermarkets in certain towns and cities that manage to succeed amid the corporate behemoths. Even though most supermarkets seem uniform, you can still open one with unique qualities. The start-up procedures for this business are tremendous but doable--as long as you have plenty of initial capital available.

Difficulty:Challenging

Instructions

things you'll need:

At least $100,000 capital A building for your supermarket Licenses and permits Employees Advertising in newspapers/TV

1. Start-up Procedures

o 1Save up a considerable amount of capital since operating a supermarket isn't a small business. It could cost you up to or over $100,000 to buy a building, renovate it to your specifications, supply food for the store and hire employees.

o 2

Plan what type of supermarket you want to open. A more unique supermarket that sells ethnic food or whole foods will stand out more than the store that sells more mainstream food products.

o 3Scope out possible locations for your store and see what your competition might be in those neighborhoods. Try to find a location right in the center of a town or city and in a spot that's noticeable.

o 4Consult with your local health department (see Resource 1) about the location of your business and whether it is safe to open a supermarket there. They'll inspect your supermarket after it's built for any health safety issues.

o 5Work out your plan for the building with your contractor for plumbing, waste and areas where food may be prepared. Contact your local food safety inspector to come out and inspect the areas where you will prepare or store food. They may request changes that you will need to address with your contractor before the building is built.

2. Licenses and Permits

o 1Obtain all the licenses and permits you will need for selling food and drink. You can get these through your local zoning office, health department and other departments such as Department of Agriculture or Department of Consumer Protection. Some licenses and permits need to be renewed after a couple of years. Fees run anywhere from $20 to $250.

o 2Contact your local health department about getting a possible food service certification. This isn't necessary in all states.

o 3Register to get a license for selling liquor and tobacco in a retail store. These are required by federal law through U.S. Dept. of Alcohol, Tobacco and Firearms (see Resource 2). Contact your local bureau of the ATF to obtain this registration.

o 4Check to see if your state requires a license for selling dairy products, particularly milk. Some states require this, and licenses can be obtained through your local Department of Agriculture.

o 5Look into other licenses that vary state by state. Some of these may include unusual licenses for something such as selling frozen desserts. More common ones include licenses for operating a bakery, selling over-the-counter drugs, registering weights to weigh deli items or selling lottery tickets. You also need to be registered to sell or redeem food stamps (see Resource 3), plus comply with federal food labeling requirements (see Resource 4).

3. Employees and Marketing

o 1Hire employees for your supermarket, particularly cashiers, chefs to work in the deli or bakery, shelf stockers and general maintenance staff. Create a family environment so your employees will be loyal to you for many years. Offer bonuses for rewards after an employee stays with you for more than a year.

o 2Set up a manager's office near where your employees do their jobs so you can monitor day-to-day operations and be immediately available to handle problems.

o 3Buy advertising in newspapers or even local TV commercials to get the word out about your supermarket. Be sure to offer discounts on all grocery items during your first week for first-time customers. This assures a loyal customer base that may last for decades.

How to Run a Supermarket Business

Vanessa Cross has been a freelance writer since 1994. Her works include "An Anthology of Black Folk Wit, Wisdom, and Sayings" as well as business articles in print publications such as the "Chicago Tribune." Cross has a Bachelor of Arts in journalism from Columbia College. By Vanessa Cross, eHow Contributor

updated: August 02, 2010

Management principles for a supermarket entitySupermarket sizes range from mega-stores and chain grocery stores to small business community grocers operating individual stores. To properly run a supermarket, the manager or owner-operator must understand, monitor, and manage all core supermarket business operations. This includes such core functions as department operations, human resources, business accounting, shipping and receiving, parking and security.

Difficulty:Moderately Challenging

Instructions

1.

o 1Identify departments. Supermarket departments include meats and seafood, fruits and vegetables, frozen foods and cheeses, breads, spices and baking goods, and an assortment of canned, boxed, jarred foods. There should be an employee who oversees the proper functioning of each of these departments. Other supermarket services provided for customer convenience are bakery, florist, check cashing, money orders, money transfer and state lottery purchases.

o 2Manage employees. Supermarket staff should be reliable with a high level of accountability. This includes being honest, performing duties with little monitoring, providing quality customer service and observing employee work schedules as agreed.

o 3Master supermarket accounting operations. This includes implementing cash management procedures for counting and recording cash register sales and performing banking functions. It also includes

accounting for operational expenses and supermarket procurement needs, as well as managing employee payroll.

o 4Monitor shipping and receiving. Accurate procurement assessments are based on monitoring inventory needs and patterns to avoid overstocking and under-stocking products. The issue of overstocking is especially important for items that have short expiration dates. Additionally, store management must know dates and times for all expected delivery to insure that proper staffing is available for its receipt.

o 5Offer select delivery services. Many supermarkets offer delivery services either to select customers such as to the elderly and people with disabilities within a designated distance from the shop. Other grocers are offer online order for select items at reduced prices. This includes bundled products to encourage bulk deliveries of dried and canned goods.

o 6Manage parking grounds. This includes ensuring that safe and convenient parking is available to customers.

o 7Stay in contact with security. Security may be the local police that needs to be called in case of an emergency at the supermarket. It may also be a staff security employee or a contract security patrol agency. In either instance, plan scheduled meetings to address concerns communicated to you by employees and customers. Also, secure available police and security reports on identified security problems within the community where the supermarket is.

How Does a Supermarket Owner Spend a Workday?

Leigh Kelley is a freelance writer who provides SEO Web copy to industry leading companies. Her work has appeared in publications such as "Bullys Magazine" and "Jonesboro Sun." Kelley earned a bachelor's degree in English from Arkansas State University. By Leigh Kelley, eHow Contributor

1.

Customer Service

o A supermarket owner should always make herself available to her customers. In some cases, a customer may prefer to do business with someone she knows. As such, it is important that the owner talk to customers on a regular basis, and not only when there is a problem at the store. For small supermarkets, the owner should consider getting involved in community activities. Not only do these provide an effective advertising opportunity for the store, they also give the owner a chance to learn what people in the community want and need.

Inventory Management

o Especially in a small supermarket, the owner will usually oversee inventory accounting and product ordering. This means that as it is time for him to order new product, he will have to check the current amount of stock he has available. He must also be able to estimate how much of each product will be purchased between his inventory count and the delivery date of the product. He has to determine the amount of each product to order to ensure he doesn't run out. At the same time, he must avoid over-ordering, especially when it comes to perishable items.

Employee Management

o Keeping an eye on the employees at the supermarket is one of the most important tasks of the supermarket owner. His employees can make or break his business, as they are the ones that have constant contact with the customers. The owner must ensure that his employees look presentable, act in a professional manner and treat every customer with respect. Part of doing this job effectively is hiring employees that are capable of effectively doing the duties of their position. This may include hiring and training a good management team. At some supermarkets, the owner also does the employee scheduling.

Accounting

o Although many supermarket owners use an accountant to take care of finances, the owner should still have a hands-on role with the finances. For example, he should be familiar with his profit and loss statement. He should also keep an eye on his bank account balances, vendor account balances and daily sales records.

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