A sari-sari store is very common in the Philippines. In fact, you can see sari-sari stores in almost all corners of the streets. It is considered as a one-stop shop where you can buy small and cheap items from candies to cellphone loads.
This business venture is easy to setup as it requires small amount of capital, making it perfect for stay-at-home moms. But, there are instances in which sari-sari stores were not able to survive in the business.
Here are some reasons why sari-sari stores fail:
- Supply and demand
As you plan to start your own sari-sari store, you should also identify what you should offer. This means that you should determine the things or merchandise that your common customers need. As much as possible, stock more items that your customers need the most.
A sari-sari store is not an exemption for the competition. For your business to be noticed and attract more customers, make sure to make it different from your competitors. Prior of the scheduled opening, you must consider advertising. This can cost you some amount of money, but even a simple word of mouth can be a great help.
Making your store presentable is another way to attract customers. You can also consider printing calling cards and give it to your customers and suppliers.
Allowing your customers to make credit can be your biggest mistake that can turn your business to fail. You can let your customers make credit once, but never let them do it again and again. Your immediate family, relatives and friends are not exemption to this rule.
- Handling the money
Another reason why many sari-sari stores fail is due to mishandling of money. Many store owners don’t understand about gross and profit, rather they only know the sales made for the day. To know if your business is making a profit, you must learn to separate your capital from the profit. Make sure to save money and learn how to use your gross smartly.
Now that you know those mistakes that most store owners have committed, you have no reason for your business to fail. The key for your sari-sari store business to survive and succeed is to practice those ideas discussed above.