Is buying a convenience store a good idea?
At a time of economic uncertainty and the UK high street still declining, starting a small business is a risky decision. But all is not lost for those looking to get into the convenience sector, which despite competition and rising costs, is showing a healthy market growth and standing its own.
Here we explore the benefits of owning a convenience store and aspects you should consider before choosing this venture.
Benefits of owning a convenience store
- Be your own boss
Many retailers love the autonomy that comes with being their own boss, having the control to make their own decisions and change things when they don’t work.
- Get gratification
The personal fulfilment that comes with building something from the ground up is very rewarding and you can take complete ownership of the hard work and efforts it took to get to your dream.
Furthermore, convenience stores are very often a life line for local communities, especially in remote rural areas. They present a place for some customers, who might not get to socialise (such as the elderly and vulnerable) to have a conversation with a friendly face. Being able to offer vital services to customers is extremely rewarding and sociable.
- Secure financial gains
Generally, convenience stores are profitable propositions. Owning your own business offers the opportunity to make more money than you could possibly make as an employee.
Things to consider
Do you want to be independent or run a symbol store?
One thing you’ll want to explore is the pros and cons of being an independent store or partnering up with a symbol group such as Premier, Family Shopper, Nisa, etc. There are pros and cons to both options, so doing your research is key.
Work out the costs vs. effort
On average, a convenience store is open more than 14 hours a day, and a fifth of storekeepers take no annual holiday. Conversely, it can be extremely rewarding and financially lucrative, if you run your store efficiently. But you must work out all your overheads such a staff wages, inventory, insurance, etc. before deciding if it’s for you, and get support from a financial advisor who knows the industry.
Location, location, location
First consider where in the country you want to be located and if this is in a rural neighbourhood, rural transient, urban neighbourhood or urban transient locations. Basket size, basket spend and the number of visits per week will vary between these locations.
In addition, the demographics will be greatly different in these four locations, meaning the missions will differ too.
Once you’ve done your research and put a business plan together, you can evaluate if buying a convenience store is a good idea and worth the investment. If you do, please get in touch with us to discuss your EPoS needs.
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