Convenience stores succeed by understanding what people need and when they need it. It may sound basic, but it is fundamental. For instance, 80% of the total fuel purchased in the U.S. is directly from a convenience store. As a store owner, you can grow like a rocket if you observe this.

Opening a convenience store needs thorough planning and a good understanding of the customer to make a profitable business. We have listed the step-by-step process of how to open a convenience store, which will increase your chances of succeeding. The list is all yours!

1. Research and planning

Everybody considering opening a convenience store must have seen an opportunity to flourish in this business. But this is not enough to jump straight into the business. More fundamental research is necessary before investing any money.

• Market research

Your market research will start by understanding the demand; this is the base of any business. Identify how the market has operated for the past few years and which products have captured the consumer’s attention. Figure out a list of hero products that are high in demand.

• Location analysis

Evidently, location is the most important element in a convenience store business. Search for locations with high traffic and provide easy accessibility. It will be best if the store is near a residence or institution area so that you always have access to a definite number of people.

• Competitor analysis

Visit and observe how other stores in the same niche perform. Note the kind of experience they are providing and attracting customers. Once you grasp all the details regarding product offerings, prices, store layout, and customer service, you can analyze the gap and Implement the same in your store.

• Target customer identification Study the area’s demographics to help you categorize your audience. According to your target location, you can determine the interest of your target customer. For instance, if you are near a school or education institute, your store will mostly cater to the needs of students.

2. Creating a convenience store concept plan

Once you have all your research and analysis reports, you will clearly understand what works and what does not.

It is time to build your idea or concept into a concrete plan. For instance, if you want a health-conscious store, you can keep organic, natural, and healthy products.

If you are targeting a few popular brands, then you can keep only the genuine products of those brands. So that when people need that product, they will prefer your store over others.

Apart from products, you can also be differentiated by your approach.

For instance, you can plan for a technology-driven store with no storekeeper, cashier, or associate. Everything is managed by technology. Amazon Go is a vivid example of this level of technological utilization.

Though it is easy to think, you must ensure that your plan and uniqueness will work. You can also take feedback from customers after pitching your idea. Read their reaction and conduct a reality check before finalizing the plan.

Work on your business goal and unique selling proposition (USP). List and scrutinize the types of products and services you’ll offer.

3. Legal requirements and permits

Ensure your store meets all the legal requirements and permits. Visit your local government office and get a license and permit for your business. Moreover, the legal document is not confined only to the business license; it also includes zoning permits, health and safety permits, tax permits, etc.

Ensure your business is registered in the government portal. Visit the local municipal authority or state government authority to understand the terms and conditions for the business permits clearly. The process may be time-consuming and tedious, but be prepared with all the required documentation to avoid future complications.

4. Securing financing

Financial planning is essential as it will support the store’s setup and handle the initial operating costs until it receives many customers. Once you have the required lump sum, deciding how to source the funds will be easier. However, Many small business owners fund their stores with personal savings or investments. But this is only the case with some.

The best and safest way to approach government grants. For instance, the U.S. government offers grants and loans to support small businesses. If your business meets the specific eligibility criteria, they will provide a grant for your business.

Moreover, you can also take the help of investors or business partners to share the cost and risk. Ensure you have a great pitch, and we’ll research business ideas.

5. Setting up the store

Design the store layout to use each space available efficiently. Check out various stores to understand how you can place specific products in a definite place to make it easier for the customer to access everything.

You can also divide the space into different sections and dedicate popular and best-selling products in that area. For instance, keeping the snacks and chocolate section near the billing counter will tempt customers to purchase more while waiting in the queue.

It is vital to take insights into human behavior to influence shopping patterns subtly. Arrange key items like groceries and essentials in areas that encourage exploration, guiding customers through various sections—perhaps even past the children’s aisle, where curious eyes might spark unplanned purchases.

Invest in technology to help you manage the entire operation and maximize your benefit. For instance, modern convenience stores must have a POS system to track sales, manage inventory, and process payments.

Additionally, digital signage should be placed around the stores in a position visible to everyone. You can use those screens to display promotional content, discounts, ongoing deals, etc. Strategically, you could install a video wall outside your store to attract customers.

You can easily manage all the displays in your store from one dashboard with Pickcel, a powerful digital signage software. But it doesn’t stop at screen management—Pickcel empowers you to create content effortlessly using its design tool, Artboard, which also provides access to hundreds of customizable pre-made templates. With Pickcel, you can deal with each screen of your premises individually or sync them all and show the same content simultaneously using their Wallcraft feature.

6. Staffing your store

To run the store on track and manage the operation smoothly, you must fill a few positions with experienced and reliable staff. Start with the most crucial position, a cashier who can manage the billing counter and complete purchases.

Hire staff who can assist the customers in the buying process. Additionally, they can manage shelves to ensure all the products the customer is searching for are available. Finally, you will need a manager to look after the entire operation, handle staff, and manage if some complications arise.

Training your staff to understand their role and how to be efficient is essential. Ensure they have the required knowledge about store operations, customer service skills, cash handling, and inventory management.

7. Marketing your store

Stores often host events to announce the opening of their store. This is a great strategy to attract customers, as people are always excited to try new things and get a unique experience. Organize an event, display offers, and open discounts on various essential products on DOOH advertising or an outdoor video wall.

Additionally, you can set up the social media handle of your convenience store and promote relatable content to your target audience in the locality. Moreover, list your store on Google My Business so that customers can locate your store quickly.

Encourage repeat visits by offering a loyalty card or program that rewards customers for frequent purchases: plan discounts or special offerings around holidays or seasonal events.

Summing Up!

People often dream of running a store that’s always in demand. To bring that dream to life, you can follow the above mentioned steps to set up your convenience store.

Start by making your store accessible and customer-friendly; understanding your community’s values can make all the difference. Use new-age technology to make shopping a pleasant experience for all. If you plan to install the most demanding digital signage technology, visit Pickcel for the top-notch digital signage software solutions.