Thinking Of Starting A Kirana Store Business

Since the pandemic, most people have become wary of crowds. This shift has resulted in huge demand for small kirana stores as they have lesser masses than big supermarkets. Furthermore, the popularity has made kirana stores a profitable business opportunity. However, if you are considering starting a kirana store, there are numerous factors you must analyze and understand, especially SME financing.

What Are The Factors You Should Analyze Before Starting A Kirana Store?

Here are some of the most important factors to consider before starting a kirana store in India:

1. Business Plan

Planning is one of the most important aspects of starting a business. Analyze the current market environment and learn about the factors to create a blueprint for the kirana business. This plan can include aspects such as the type of inventory, the store size, and the investment needed to go from planning to operation.

2. Store Location

An integral part of the success of the kirana store is its location. Since kirana stores cater to the needs of the sounding households, the ideal store location is in a densely populated neighbourhood that does not have multiple kirana stores. The lesser the competition, the more people will visit the kirana store, resulting in better profits.

3. Customized Inventory

Every neighbourhood houses different types of people whose interests and needs may differ based on their culture. You can adapt your inventory based on the demanded products to better cater to the needs of the locals and increase sales. It is better to take a survey for such demands before buying inventory.

4. Evaluating Investments

Before starting the kirana store, you must evaluate the investment you will need to fund aspects such as rent, furniture, inventory, etc. The initial investment decision will also depend on the estimated profit margin. However, kirana stores generally demand an investment between Rs 50,000 to a few lakh rupees.

5. Customer Service

Customer service is one of those aspects that numerous kirana store owners often miss when it is a vital part of the business plan. You should ensure that your kirana store prioritizes customer experience and satisfaction. You can give discounts on products, or start a home delivery for immediate neighbours to ensure they prefer your business over others.

6. Product Quality

First-time customers become recurring customers if the products in the kirana stores are of the highest quality. You should ensure that the products you buy are from a reliable and quality supplier. As the customers know your products are of better quality, they will always buy products from your kirana store.

7. Funding

There are numerous means of funding, but the most widely used is SME financing through an instant business loan. Ideal SME financing can allow you to raise immediate funding and invest in the factors included in the kirana business plan. As there are no restrictions on the end use of the business loan amount, you can use the amount to invest in any aspect of the kirana business.

Ideal SME Financing Through IIFL Finance Instant Business Loan

Although starting a kirana store in India does not require high amount of funds, it is still wise not to use your capital but invest by availing a business loan. IIFL Finance business loan offers sufficient financing of up to Rs 30 lakhs with no collateral.

The online application process is simple and hassle-free and disburses the loan amount directly into your bank account within 48 hours. Furthermore, IIFL Finance business loans are customized specifically for your business and include attractive and affordable interest rates. You can apply for the loan online or offline by visiting IIFL Finance nearest branch.

Frequently Asked Questions

Q.1: Can I use IIFL Finance business loan amount to start a kirana store?
Ans: Yes, there are no restrictions on the end of the loan amount offered by IIFL Finance. You can use the loan amount to start a kirana store.

Q.2: What documents are required to Apply for an Instant Business Loan?
Ans:
• Previous 12 months bank statements
• Proof of business registration
• PAN Card and Aadhar Card copy of the Proprietor(s).
• Deed copy and company PAN Card copy in the case of partnerships

Q.3: What are the benefits of IIFL finance SME financing through business loans?
Ans:
• Instant loan amount up to Rs 30 lakhs
• An easy and online application process
• Instant credit of loan amount to your bank account.
• Affordable EMI repayment options