Many Filipinos engage in buying and selling (retail) business because it is the easiest to form with small capital that even a low class can invest in. This business is a typical you buy items from suppliers or dealers in bulk and sell it to customers into pieces (retail)
There are different types of retail business.
Many Filipino housewives all over Philippines engage in sari sari store outside their house. Sari sari store or tingi tingi is a store that sells variety of items from needs of people to wants. There are also people sells a sari sari store online or selling personal items to their co-workers as their sideline.
Many products to buy and sell in a retail business. It could be a supermarket, department store, food retail, flower shop, appartel, school supplies, appliances, personal products, home products, home furnitures, kitchen tools and equipment.
So if you serious in putting up a retail business consider the following:
How much money you invest in?
If you want to start a sari sari store business at home, you can start P20,000. If you want own a supermarket, big capital is needed.
Location is very important so that you will know of how you market your business. This is very critical in finances if you rent the place because it affects your prices and adjust your time.
Your capital can also depends on your location. If your location is at home where seldom resides in your place, minimum capital is ideal. If your place is good accessible fit for your target market, you should increase your capital. And if you are renting, a good location with big capital to buy different types or a one stop shop business to increase sales to pay rent.
Knowing who is your target market, will you make up conclusion of what items to sell and how much capital you invest in and what location you will start up.
Many start up owners fail to continue business because of stiff competition and in retail business is one of the challenging part because of similar items you sell. So to increase sales, you have to reduce your price and that is called price war. If it happens you are renting, it is very advisable to consider your competitors. For me, it is an healthy competition but if you observe that out of five with same selling items, you have to consider additional products which are not available to others.
My Sari sari store Business experience.
My business story start to manage a sari sari store. I continue it since my eldest sister started it.
Location The business located at home, in urban city ( which means many people living in our area from low class to above average class families.) Since it is located at home, no renting fee.
Target Market. Our house located on the road, so not only the residential near our place but also people passing by from different places as the target market. Another target market is the jeepney drivers, pedicab drivers and taxi drivers.
Capital. Our main target market are drivers and their behaviors reveals most products they really want are cigarettes and energy drinks. Residential people mostly they buys mostly are electronic load (smart and globe) and liquors. So this items are big capital that sell it into pieces. So I need to invest P100,000 capital for cigarettes and liquors and groceries.
Competitors. Even I don’t pay for the rental fee, many sarisari store business in our place. But what really standout to others? 1.) Since our place is on the road, not only the residential living in our place but also the drivers and people passers by. 2) It happened there is also a convenience store infront of us, but their specialty is snack foods targeting the college students and boarders while me targeting the drivers which products are cigarettes and energy drinks. One thing, additional business which is water refill station, not only buy water but also buy in sari sari store.