Business is one of the most sought-after professions in the world. Many startups arise every year and work towards making themselves big. Engineers after graduation go for mainly three things: MBA, job, or startup.
Though, no matter how popular startups are, nor how sought out, they still remain one of the few very difficult ways of going big. One can start their own business, but the question remains, what are the top Challenges Entrepreneurs Face When Running a business?
One such business that people go after is the Supermarket franchise industry. It is one of the most challenging and competitive industries because it requires not only strategy and planning but also a very deep understanding of market trends.
So, let’s dig deeper into this article to know more about the challenges that an entrepreneur faces, and how they can overcome them. And make sure you have the best supermarket franchises in India.
1. High Competition & Market Saturation
Wherever you go, grocery stores are the most common shops to find in the world. Even small villages with not much available have grocery stores set up for them. And further, you go, more and more big supermarkets are available in various places in cities and towns.
So, in a place where markets are available left and right, how does one make sure that their supermarket business will stand out and make it big?
- Make it different and unique. Offer discounts, or gifts to the product that you are selling.
- Make your customers comfortable by providing them with trustful staff who will help them with their purchases.
- Ensure that your staff remain polite and friendly.
- Your staff must be knowledgeable on where all the products are, and what offer or gist each of them has.
- Reduce waiting time by maintaining a proper, controlled environment. Everything must be in a systematic order to avoid unsatisfied customers and chaos.
- Also, keep note of the people living in your neighborhood and what their requirements are. Using that to mold your supermarket, and provide what they are more prone to require will make you a good, and preferable market.
- Build a trustful customer base, who will prefer you to other markets.
2. Inventory Management & Supply Chain Issues
One of the most important parts of the supermarket business is the goods that they keep. What you keep, and how much you keep it will give you an edge. If you keep too much of something that isn’t that required, then you will simply be wasting the product along with your money. And similarly keeping less of something that people buy a lot, will just result in unsatisfied customers.
So, let’s further talk about how you can ensure that your inventory is properly filled and maintained.
- Keep track of people’s demands in the past.
- Predict what they might require more as compared to other things.
- Try buying your products from one, trustworthy supplier.
- Changing too many suppliers might destroy the relationship of trust between you. And might result in them asking for more money, or supplying products not up to the mark.
- Keep the price you pay to your supplier consistent so that you do not need to bargain every time.
- Keep a proper warehouse to store all your products.
- Look for expiry dates.
- Always bring the best and most fresh products to last long and healthy.
3. Workforce Management & Employee Retention
Now as we have already talked before, with a big supermarket, proper staffing is also required. We need to ensure that our staff is polite and proper to keep our supermarket open and welcoming to others. So, let’s talk some more about starting the best supermarket franchises in India.
- Hire the employees after properly interviewing them.
- Ensure that your staff is polite and knowledgeable about all your offers and products.
- Properly train them after hiring them.
- Treat them well.
- Never mistreat your staff. Because a happy staff will surely ensure satisfied customers and a thieving shop.
- Give them bonuses from time to time, so that they remain encouraged to work better in the future.
- When they want to leave, offer them good recommendations, and write them good reviews for their next career.
4. Rising Operational Costs & Thin Profit Margins
Often enough, when opening a supermarket, you will go through many instances when your sales will be less. Times when it will be very difficult to manage the cost of all the products. You need to know how you can cut the cost, while still maintaining a good business flow.
- Keep a better track of all your products.
- Buy products according to your needs.
- Reduce wastage of food.
- Sell more popular and streamlined goods.
- Do not waste energy. Reduce its consumption.
- Price your products better, so that they give you maximum sales and profit.
- Try reducing labor costs.
- Use modern technology to ease your work, and require less labor.
- Do not reduce the quality of products, yet still find creative ways of wasting less money, and getting more profit.
5. Customer Acquisition & Retention
A faithful and trustful customer base is what is going to save you even in the hardest of times. Once you build up that faithful base of customers, you will have built yourself a very good and stable supermarket business. Even when your sales decrease, those customers will still give you an edge, and a better chance at recovering.
It will help you remain relevant, even after new markets rise near you. So how to build that customer base? Well, let’s talk about it, and learn what steps we should take for that.
- First, attract your customers with attractive customer service.
- Instruct your staff to be friendly and helpful. And always polite.
- Collaborate with other social events, to raise your name, and advertise your products.
- Offer good discounts.
- Keep your price reasonable.
- Provide good quality products.
- Provide some free samples of some products as well.
- Cater and provide in large communities and schools.
- Offer attractive deals to attract customers.
- Offer personal recommendations that are best for the customers.
- Offer online deliveries and services.
- Keep a clean environment that is sanitized.
- Keep your surroundings very organized and maintained.
- Provide in time to avoid delays.
Also read this : Effective Marketing Strategies for Supermarket Franchise Owners.
6. Adapting to Changing Consumer Trends
Times keep changing. What was once relevant may not be popular now. A very important part of opening a business, especially a supermarket, is predicting and working along with time. You need to know what the public now likes, and what is trendy nowadays.
Similarly, in today’s modern world, almost everything has become digital. Whether it be ordering food online, or reserving seats. People have become busy doing their work, and now do not want to spend time going out by themselves.
That is why ensure that you offer e-commerce platforms like home delivery, online ordering, etc. Also, nowadays people have become very conscious about eating healthily and using only eco-friendly products. So, keep that available in your market, to attract a larger audience.
7. Handling Economic Fluctuations & Regulatory Changes
Part of life has its ups and downs. You cannot always have a good time. You will also experience falls. Similarly, in the supermarket business, you will surely encounter times when you are experiencing economic fluctuations. So, as a good business person, you need to ensure you are well-adapted in handling those hard times.
You need to keep yourself updated and informed about all the changes that are going on. And adjust your prices for the goods according to that. Many taxes or inflations from the government can disrupt your normalcy, yet keep strong and do your best to adapt to that!
Conclusion
So, now we have finally come to an end to our discussion on how to open your own supermarket franchise and not only have that but also thrive in it. Because while doing so has its challenges and difficulties, we need to keep ourselves consistent and strong to overcome them.
We need to have a faithful customer base that will prefer us even when offered other options. We also need to always keep happy staff who will provide the best experience for the customers.Â
Market trends also keep on changing, but by keeping ourselves informed and updated, we will surely be able to build ourselves the best supermarket franchises in India.