How to start a supermarket business in India

How to start a supermarket business in India

To start a business there are certain rules that must be heeded to. When you plan on starting a business you must be sure about what you are dealing with, what you will be facing and how to last in the market. Supermarket is a common type of retail business but is always in demand in every corner. There are supermarkets every 5 kilometers or even less on a street and every residential area or a township owns a supermarket. You can have a bright future if you start a business that is in demand and know the right ways to stay in competition and how to bring more customers to your business.

Now starting is one of the first challenges that you will face and the practices and rules differs from place to place but to make it simpler here is a brief idea on what to keep in mind while starting a supermarket business in India:


As it is a matter of legal issue therefore do not forget to visit the license authority office before you establish your supermarket anywhere you must get an approval from the government and the local police. There are series of legal documents that you will have to fill and agreements to sign along with getting a license. There will legal fee that you will have to submit for getting your license that you will have to keep planned and ready before you start your business.

Getting a license helps you state that your business is legal and that you can run your business without facing any questions in the coming days.


Will you start a business of infant wear in an area which is filled with college students? And even if you do how will you make profit? Will the students ever buy your product? This way you will not be able to access to your buyers and your business will be of no use to anyone. Thus location plays a major role in a supermarket business. Choose the correct location that has a need for a supermarket and make sure that you do not have too many competitors located next to your store. It should be located in an area that has many buyers and consumers around with easy accessibility and has a good environment around you so the customers feel like visiting your store.


Take your time and make a proper planning on how to finance your business. Take note of your budget and how far you can go with it. If you are looking for a financial support then the best choice will be to go for government institutions so you do not bear the load of repaying with too much interest in the future. Read and learn about the market before coming to conclusions on how much you will be having to spend on your business. Read about other similar business and visit different supermarkets to learn about their stock and products.


Choosing the right software is a irreversible decision and there are many factors to carefully consider before finalising one. Make sure the software has all the features you need and can help in automating your operations completely. Its a wise idea to choose a cloud based software to save huge investment in servers, LAN Connections and IT Support. Some widely know software are Reach Accountant, Marg and Tally Shopper

 Choosing right supplier and staff

Getting a supplier that expects you to come and pick your order and do all your work on your own is not the kind of supplier that you would want to go to. Make sure that the supplier that you are going to deal with delivers your product and has a good quality of supply. While hiring staff assign them according to their capability like; the right person for stocking the products, right people for sale and counter etc. Educate them on how to deal with customers and teach them about the products at least brief so they can be of help for the customers.

Get CCTV and proper security in your store to avoid fraud and theft from your store. There is a possibility of inventory theft and stealing of sales and cash as well so it is highly important to have a good security system.


You might need some hardware to manage the operations faster and give a better in-shop customer satisfaction. Here is a quick list:

  • POS Counter computer
  • Thermal Bill printer
  • Barcode Printer
  • Weighing Machine
  • RFI D Inventory scanning device


Once you have opened your store the people nearby will be aware of it but that is not enough and you need more buyers and quality customers. How do you get that? The only way is marketing and advertising. Learn how to advertise your business, get your business out in the market with the help of advertisement but with the type that your budget allows. Take it online which is the cheapest way. Opening a page of your store and an account does not cost you anything. Distribute pamphlets of your store and treat your customers in a way that the word of their mouth spreads with the right motive and you get more buyers.


I’m a tax expert with over 10 years of professional experience. I’ve gained practical insights on GST and other Taxes during my tenture as a Tax expert and GST Trainer in Reach Accountant.

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