It is an evergreen business with no loss because the groceries, confectionery, and household items are the regular needs of any customer and based on these needs the customer attains loyalty and visits those grocery stores where they feel convenient.
It has a lot of perks and you can reap a high profit immediately. We are here to guide you. How can you start a cash and carry business in Pakistan? What is the scope and potential of the cash and carry business?
What Is Cash And Carry Business?
The cash and carry business is based on the concept of providing all the products under one roof. It is a very versatile business because the retailer has an opportunity to sell everything under one roof, whether it is food or non-food items. At a cash and carry store, customers can get everything at once.
The best benefit of cash and carry wholesale business is that the retailers attract a very wide range of customer base, at the same time some of the items at cash and carry stores don't get wasted so it promises a sustainable business growth with greater return over investment in a minimum span of time.
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What Is The Potential And Future Of Cash And Carry Business?
The cash and carry business is going to have a very successful future in coming years, as it is soon transforming from cash and carry to click and carry business. Currently the cash and carry retailers are paving their ways on the internet as well.
Now customers just write cash and carry near me and they get a list of websites where they just click, add items to their cart and checkout while their items get delivered to their door steps within a minimum time. The biggest example of the online retail store is Howmuch.pk.
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Begin With Proper Business Plan
The initial step towards opening a cash and carry business in Pakistan is to create a proper business plan in which you may decide the location, also you may decide are you willing to start a full brick and mortar business store or an e-commerce business.
Or you are interested in maintaining your business presences both online and in-store. Well after deciding about infrastructure you have to choose a name for your business and then create a plan with a proper timeline to which you’ll follow until your business establishes properly.
At the same time you have to make your business plan highly unique that will definitely give you competitive advantage, also you have to finalize the area where you're going to open it, and you’ll finalize your overall operations plan.
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Determine The Opening Cost
Determining the cost and doing cost benefit analysis is the best way to identify how much you need to invest in and how much return on investment you’ll enjoy. However, the opening cost involves multiple things.
Also, you can completely create a whole plan of how much money you’ll borrow from your family, credit card, or from any bank, and for that purpose you have to complete financial documentation such as balance sheets, income statements, and cash flow statements as well.
Similarly, after the opening expenses, rent, insurance, and other legal expenses, you have to list down all the other required things and the cost associated with them, so it will be good for you to budget down everything and then arrange the overall amount in one go and move forward.
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Select Business Structure
When it comes to business structures, there are different types of business structures that exist when you are trying to establish a legal entity. However, when it comes to opening a cash and carry store or starting a business store, three types of business structures exist.
One is sole proprietorship. It involves a single owner with 100% of its own authority. The second business structure to choose while opening a grocery store is a general partnership. It involves two or more people contributing together to make an investment and establish a store.
The last business structure type that you can consider is a limited liability company with multiple members that can be individuals, corporations, or other LLCs. In Pakistan, all three are appropriate, but it is entirely up to you how much money you have.
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Set Up Bank Account
Once you have decided on your business structure, the next step to becoming a cash and carry wholesaler requires you to have a professional bank account in which all your profit will go directly to them. Gone are the days when people used and collected cash.
It is a digital era with digital wallets, but customers prefer to make transactions via online banking or by swiping credit cards or debit cards. That is why in order to gain a competitive advantage in this current era, you have to provide multiple payment options.
Well, setting up a bank account for your store will be a really crucial step because it gives an authentic business bank account, makes your assets legal and complies with tax rules. Also, you can keep a tight check on your finances and know exactly what your business profits and losses are.
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Obtain License
Before establishing your cash and carry store you need to complete all the paperwork and for that purpose, you need to register your business officially by obtaining licenses and permits from the state institutions in Pakistan.
Firstly, obtaining a license to open a business involves getting your business name registered with the Security and Exchange Commission of Pakistan (SECP). After name registration, you’ll register your cash and carry business with SECP and go for income tax registration.
Then, obtain an NTN registration number in Pakistan from the Federal Board of Revenue (FBR). Then move towards registration at Social Security Institutions, take a certificate of incorporation, register with the labor department, deposit shares, and obtain a license.
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Purchase Equipment
After all the legal formalities now you have to move towards purchasing equipment for your cash and carry business and you should start from buying good quality freezers, chillers, technological gadgets including barcode scanner, iPad, laptop, computer, etc.
Don’t worry about spending money on these because it is a one-time investment that helps you reap huge benefits in the long term. Also you have to buy shelves, counters, cash drawers, shopping baskets and carts, food and product packaging etc.
In the last session, you will buy all the products that you are going to sell to your end customers. While in the cash and carry business, there are a lot of products under one roof, so you have to buy both food and non-food items and then arrange them accordingly.
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Invest In Cloud-Based Solution
The most important thing that you must not forget is to invest in buying a fast and reliable retail management system such as cloud point of sale software. In the retail industry, including brick and mortar stores, it is the newest and most popular technology.
Therefore, having good retail software is essential for cash and carry stores. One example is Howmuch Point of Sale software, which offers quick checkout, effective inventory management, and strong artificial intelligence capabilities to manage overall business operations.
It is evident nowadays that businesses with POS technology embedded in their stores are gaining competitive advantages over their competitors, as it is a technology tool that eliminates the hassle of manual management and automates overall operations.
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Market Your Cash And Carry Business
Promoting your business is the most important requirement. That is why you have to promote it with new trends such as digital marketing, and for that purpose, make your business presence known on the internet with heavy digital marketing strategies.
Also, maintain your business presence online, establish your e-commerce website, create accounts on social media, and keep your business active on all the social media platforms so that you can grab a wider audience.
Gone are the days when people used outdated marketing tools, now your business presence on social sites will make your business more successful and attractive.
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