A departmental store is a place where you can find all the daily use items like tea, coffee, toothpaste, shampoo, sugar, salt etc all in one place. That’s why everyone likes to go to a supermarket or departmental store. Moreover, in the business of the departmental store, the owners are earning lakhs of rupees in it. Therefore, here is everything you should know about how to start departmental store.
It will go on forever and will continue to grow gradually.
Firstly, to start any business, it is a must to go for company registration online and get your business registered to run legally.
What are Departmental stores?
Departmental Store is a store in which all household items are available. Many types of goods such as food items, cleaning items and household items, etc are sold by them.
Also, all the items in a departmental store are bought from different places and made available at a single place.
Therefore, if you want to know how to start departmental store business, it is the right choice in which you can earn huge profits. Also, it does not require much effort to grow if you are located at the right place.
Requirements for a Departmental Store
The requirements depend on the size of the business. Because, if you start this business from home, there is no need for many things and, if you start the store on a large scale, then there are these requirements.
- Business plan
- Electricity, water facilities
Investment for Departmental Store Business
Investment in this business depends on the size of the city or area. If you start a big departmental store, then more investment has to be done.
If you start a small business, then less investment has to be made.
Secondly, if we talk about the city, you will require two to five lakh rupees for small towns and five to ten lakh rupees for big cities.
- Land: Around Rs. 5 Lakhs To Rs. 7 Lakhs (If the land is your then money will not be charged)
- Building: Around Rs. 1 Lakhs To Rs. 1.5 Lakhs (Can also be rented) • Cost of Raw Material Around Rs. 50,000 to 1 lakh
- Total Investment:- Around Rs. 2 Lakhs To Rs. 2.5 Lakhs ( If Own Land)
Land for Departmental Store
It does not require much land because its store has to be built, not only after that such a big godown has to be made.
If you are thinking of how to start departmental store, then take special care of its location.
Choose a location for the shop, which is in prime areas, main market, city mall, etc.
Store:- 500 Square Feet To 1000 Square Feet
Documents Required for Departmental Store
When starting any business, you may require some personal documents and some business-related licenses like:
- Personal Document (PD): There are many documents inside the PD like:
- ID Proof: Aadhaar Card, Pan Card, Voter Card
- Address Proof:- Ration Card, Electricity Bill
- Bank Account With Passbook
- Email ID,
- Phone Number,
- Other Document
Business Document: There are many documents inside the business document like
- Business Registration
- GST Registration
- Trade License
When you are looking for how to start Departmental Store, these are the important things to take care.
It has to be started according to a process. However, basic activities have to be done, like area analysis, land selection, project plan.
All the work has to be done according to a process like registration, financial arrangement, etc.
- Area Analysis: Under Area Analysis, research within the area where you are thinking of doing business. For example,
How many stores are there already?
What kind of products are they selling?
How much is the price of their product?
Can you price less than that?
What is the demand of the customer?
- Land Selection: After doing Area Analysis, the location has to be selected and attention if you are thinking of starting a Departmental Store, then take special care of its location. Choose a location in prime areas like the central market, high market, city mall, etc. It does not take long for the shop to pick up at such a location. In small cities, if there is a small side location, it will work. Because in the small town people reach somewhere in the street for the goods they need.
Steps to Start a Departmental Store
1. Project Plan (Business Plan): When the location is selected, then prepare your business plan, and inside this plan put all the things that have to be done inside the business-like
- How much investment will you need?
- Who will sell which products?
2. Financial Arrangement: When the business plan is ready, the financial arrangement has done because nothing can happen without investment.
3. License and Registration: After the investment, apply for the Shop and Establishment Act License and Trade License.
4. Electricity Fitting and Machinery Installation: After taking machinery, do Electricity Fitting for them. Hire a professional to do so for a safe and secure electric supply system.
5. Hire Worker: After doing all the things, bring workers according to your business.
Now, you can start your business on a good day. For that, you can look for the best day to start a business astrology 2021.
Departmental Store Product List
To place the products in the departmental store, find a supplier who is close to your shop to save on travel costs and also make sure that they can provide you with the most products because the more products you get, the more discount you get, and the overall cost will be low
- Grocery and staples like pulses, flour, rice, sugar, oil, spices, dry food, etc.
- Fruits and Vegetables
- Beverages like cold drinks, juice, milk, water, etc.
- Frozen food like cookies, chips, candies, chocolate, papad, etc.
- Personal care like creams, soaps, shampoos, brushes, savings
- Household essentials like detergents, cleaners, room freshness, etc.
If you want to start any business, then its publicity is essential. In the same way, if you want to earn well from the departmental store, you have to pay attention to the publicity of the shop. For example,
- Distributing pamphlets in your area,
- Install a good name board in the shop.
- Put up banners all over the place.