Convenience Store Startup Guide: Start Your Business Confidently
Are you planning to open your convenience store but don’t know where to start? Well, you’re in the right place. After serving thousands of convenience stores in the United States, Modisoft observes the trials and tribulations of the most successful store owners and we have found one thing in common. Most successful convenience store owners follow proven formulas and take inspiration from industry leaders to run a profitable business. But as a newcomer, you might get overwhelmed by the tons of content available on the internet. Don’t worry, Modisoft brings you a step-by-step guide that can help you achieve what other industry leaders have done. Why Invest in a Convenience Store In 2024? As an entrepreneur, you might be wondering if opening a convenience store is the right step for you. Investing a lot of money comes with fear and risks. But you may be happy to know that the convenience store industry is booming. In a report released by NACS Magazine, the number of C-stores has grown and reached over 150,000 in the U.S. As the US population stands, that means there is only one convenience store for every 2,225 people. This means that there is still a huge gap and potential for new players to enter the industry. According to Precision Reports Insights, the convenience store market is anticipated to rise at a considerable rate between 2024 to 2031. Thus, it’s the perfect time to step into this industry. But before you start, let’s have a look at what the future holds for convenience stores. The Future of C-Stores Convenience stores have been around for over 100 years and have weathered various market storms that other industries have struggled with.  A C-store in itself is a commodity, and that’s the biggest reason why it is still a profitable and popular business in the era of online retail culture. But there is no one-fit formula for all. Convenience stores, regardless of the location they choose, need to adopt modern technology and stay updated with the latest trends to cope with the market. Think of an old convenience store that refuses to upgrade and still contains the manual checkout process, poor lighting, and no option for curbside pickups. Do you think that store can sustain its presence? Never. Put yourself in the customer’s shoes. Would you consider a convenience store that has no convenience at all? Although the future holds a lot of potential for convenience stores to grow, you need to be quick in adapting to those changes to survive and thrive. How to Open a Convenience Store in 2024 Now that you are aware of the C-store and its future, it’s time to know how to enter the market. Just like any other business, convenience stores also need solid research, time, and money. There are crucial steps that you need to know before you start your convenience store in 2024.   To make the process easy for you, Modisoft shares all the steps that are necessary to know before starting a C-store in the United States. Step 1: Convert Your Idea into a Solid Business Plan Convert your idea into a business plan to ensure that you are on the right track. Many entrepreneurs often miss this crucial step that ultimately becomes one of the reasons why businesses fail. A business plan helps you clearly outline purpose, operations, strategy, and goals. Above all, it can be of great help when looking to obtain bank financing or securing a loan from other lenders. The key components of a solid business plan include Executive Summary Business Goals & Objectives Market Analysis Marketing Strategy Competitor Analysis SWOT Analysis USP – Unique Selling Proposition Financial Plan Overall Startup Cost Step 2: Pick Your Convenience Store Format You might be surprised to know that convenience stores come in all different shapes and sizes. Before you start your C-store, you need to plan out what segment your convenience store will fall into. These are just a few options that are available to you. Kiosk– If you are looking to go for a small startup, Kiosk is the perfect format. It generally occupies less than 800 square feet and sells items like tobacco, beverages, snacks, and candy. Mini Convenience Store- This store usually occupies 800 to 1,200 square feet and is a very popular model that runs alongside gas stations. It usually emphasizes gasoline sales, and most customers are people who refuel at gas stations. Limited Convenience Store- These types of stores are often affiliated with an oil company. Extended hours and striped parking are common in these types of C-stores. They have a broader product mix along with limited groceries. Traditional C-Store- This C-store category is very popular in the United States. The stores are about 2,500 sq feet and have product categories ranging from dairy, bakery, and snacks, to grocery, sweets, and much more. They are often open 24/7 and owned by oil companies. Expanded C- Store- These fall into the large stores category and have more shelving for additional grocery products. The expanded C-store occupies more than 3,000 square feet (about the area of a tennis court). They have proper seating, and parking facilities that attract families, women, and seniors. Hyper C-store- The hyper C-store covers up to 5,000 square feet and accommodates a variety of products and departments. They have a separate sit-down restaurant area, sometimes a pharmacy, and they often offer a bakery. Most customers are families, senior citizens, and traditional C-store customers. Step 3: Select Your Location Wisely Location plays a vital role in making or breaking a business. Selecting the wrong location can cost you thousands of dollars. If your location isn’t desirable, you won’t be able to attract enough customers, which results in lower sales and profits. Therefore, you need to take time to select your location. You need a spot that can be easily viewed, without an existing convenience store. Location selection depends on various sectors including but not limited to Research the audience demographics
