how to start a kirana store

How to Start a Kirana Store Business

Are you looking to start a Kirana store and still thinking ?

The world had begun to abandon neighborhood stores in favor of online shopping and home deliveries at any time. Whatever! Do you know that despite significant growth in e-commerce, many neighborhood corner shops across major cities surpassed the sales of many supermarkets and e-commerce giants during the pandemic? The COVID-19 pandemic showed us how important running Kirana stores are.

However, now the question is: is starting the Kirana Shop business a profitable venture so far? If yes, then how to start a Kirana store? In this guide, we’ve tried to cover every finer detail, from the Kirana store business plan to the set-up procedure, the required investment to the expected profit margin, etc. So, stay tuned till the end.

What Is a Kirana Store Business?

Kirana store business are general shops for the daily needs of the local neighborhood. Local Kirana shop business generally retail household items, commonly grocery items, vegetables, spices, and basic hair and skin care products, like oil, shampoo, etc. Apart from being a small store for serving daily rations, some Kiran store operators present their outlets as a mini-mart type of set-up to allow customers to pick their own items.

Kirana store businesses usually serve the local community but don’t have any specific target audiences. Anyone can open a Kirana outlet with decent funding and sell their choice of items. Operating Kirana does not require any special degree or skills. A minimal amount of documentation would be required for opening an outlet. Read on to learn how to come up with a profitable Kiran store business plan.

Why to Start a Kirana Store?

Kirana stores face business challenges across major cities due to the boom of quick-commerce giants like Zepto, Dunzo, Instamart, BigBasket, etc. 

However, consumers always appreciate and prefer personalized treatments, which you can offer easily. Likewise, a few things make investments in the Kirana Store business worthy and profitable.

  • Because you only stock for local communities, you have a low risk and stocking requirement.
  • Strong relationships with customers and the goodwill of products help get referrals.
  • Easy accessibility by locals and public transport
  • Flexible payment options along with offering Credit payments

How to Start a Kirana Store Business?

Here is how to open and operate a Kirana store business:

  • Have an effective kirana store business plan

A business without a proper business plan is not a business at all. So, follow these steps to come up with a good business plan:
  • Grocery stores generally require hard-working individuals. Keep this fact in mind while recruiting staff for your Kiran store.
  • Identify potential buyers and analyze their choices and preferences to stock all possible items.
  • Price your goods and commodities according to the financial status of the customers you are targeting.
  • Figure out the best possible selling strategy by tracking customer needs and purchasing frequencies.
  • Keep your competitors on track; monitor their marketing strategy, items, and the brands they mostly stock.
  • Select an ideal location

The location has the potential to skyrocket your sales and promotion, but it also has the potential to kill your business before you even start doing anything. Try to target the newly developed areas of a city to guarantee success

Because the building is new, there is a chance of obtaining relatively larger commercial space at a lower cost, as well as the fact that your outlet will be easily visible to the entire neighborhood

Target the entire area, which lies between 1 and 2 kilometers within your Kirana outlet location, by meeting all possible customer demands.

  • Arrange fresh inventory depending on customer preference

Depending on the area, you will see a specific type of customer base during reiki. All you need to do is keep up with your inventory according to the requirements of the customers you are targeting

Suppose you are planning to open your store in a fancy shopping area. Then, you’ve got to stock up on urban commodities and luxurious food items, like instant food products, frozen foods, a variety of bakery items, etc.

Dairy products, FMCG products like soaps and cosmetics, etc., and in-demand seasonal items offer lucrative margins as well as help maintain a competitive edge over others

Select a reliable vendor to keep your inventory fresh and affordable without compromising quality. PosBytz Retail software for small businesses can help you manage inventory most efficiently.

  • Determine the required investment

Calculate all possible costs to be expended on shop rent or the purchase of a commercial property, inventory supplies, manpower, maintenance, etc. The investment amount will vary depending on whether you want to open a small shop or franchise and in which location.

  • Obtain all registrations and license

Certain registrations and permits are required to open a Kirana store, and some legal laws need to be abided by for operating that outlet. They are

  • Food license
  • Shop and Establishment Registration
  • Entity Registration
  • The GST Act requires registration. The unique 15-digit GST identification number will help avoid reverse taxation and avail various tax benefits.

Once you are all set to go, promote your business with offers and discounts. This will also help retain customers.

How do I increase sales in my Kirana store?

Due to the heavy market presence of Kirana Store, the competition is high, so traditional marketing efforts may not yield the desired result. However, you can follow these tips to boost your sales in your Kirana store outlet:

  • Stock up on demand and don’t lose a single customer, even if one of them requires any grocery items from their eating habits.
  • Provide online shopping catalogs and ordering system
  • If possible, offer free home deliveries with no specific order limit, specifically for local customers.
  • Run appealing discount offers and credit account benefits.
  • Allow your customers to take advantage of digital payment options.
  • Create and maintain long-term relationships with new and returning customers.
  • Last but not least, digitize your Kirana store with POS software, Keep your inventory fresh, stop inventory waste, and manage orders and accounts in an optimized way.


The COVID-19 pandemic crisis altered customer behavior, causing them to gravitate toward online shopping. However, when it comes to shopping for fresh fruits, veggies, and grocery items, people often prefer neighborhood shops like Kirana Stores 

Hopefully, this guide article will help someone who’s planning to open Kirana stores in a nearby location with their research.

Automate your store with PosBytz kirana store billing software to manage your inventory , Sales , purchases and reports.

Digitize your Kirana store with PosBytz Kirana store software

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