How to Start a Sari-sari Store Business

Jron December 6, 2011 Home Business 2 Comments

Sari-sari stores are small retail outlets that can be found in almost all neighborhoods, sometimes even in every street corner in the Philippines. Most sari-sari stores are privately owned shops and are operated inside the store owners house. Commodities are displayed in a large screen-covered or metal barred window in front of the shop. Candies, canned goods and cigarettes are often displayed while cooking oil, salt and sugar are often stored in sacks or cans. A small window is also present where the customers requested commodity is given. It is a business worth considering for a gradual entrepreneurship take off.
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Estimated Investment Cost (based on 2009 prices) Sponsored Links

I. Products a. Drygoods (quantity, cost/piece, cost): Sardines (big), 30 @P28.00 P 840.00 Sardines (small), 30 @12.00 360.00 Corned beef, 30 @26.00 780.00 Tuna, 30 @28.00 840.00 Pineapple juice, 30 @20.00 600.00 Creamer /sachet), 60 @2.50 150.00 Egg, 48 @5.00 240.00 Catsup, 20 @25.00 500.00 3 in 1 coffee, 120 @4.00 480.00 Food mix enhancer, 48 @2.00 96.00 Choco powdered drink (sachet), 72 @4.50 324.00 Iced tea powdered juice, 48 @9.00 432.00 Orange powdered juice, 24 @9.00 216.00 Evaporated milk, 20 @22.00 440.00 Sinigang mix, 46 @10.00 480.00

Lechon sauce (in pack), 48 @9.50 456.00 Cooking oil (small), 48 @11.50 552.00 Cooking oil (big), 36 @24.50 882.00 Sugar, 48 @9.00 432.00 Fish sauce, 48 @11.00 528.00 Vinegar in plastic park, 48 @4.50 216.00 Soy sauce in plastic pack, 48 @6.00 288.00 Noodles in plastic cups, 30 @15.00 450.00 Candies, 300 @0 .50 150.00 Noodles (pancit canton), 72 @7.50 540.00 Noodles (soup), 72 @6.50 468.00 Tomato sauce, 20 @13.00 260.00 Meat loaf, 25 @55.00 1,375.00 Batteries (biq), 30 @25.00 750.00 Batteries (small), 30 @ 11.00 330 00 Diaper Subtotal, 60 @6.00 360.00 Subtotal P14,599.00 b. Toiletries: Shampoo, 96 @4.00 384.00 Conditioner, 96 @4.00 384.00 Body soap, 30 @28.00 840.00 Toilet tissue, 60 @9.00 540.00 Toothpaste In sachet, 60 @9.00 540.00 Sanitary napkin, 48 @4.00 192.00 Subtotal P2,880.00 c. Laundry Products: Deterqent powder, 72 @ 10.00 720.00 Detergent bar soap, 72 @8.50 612.00 Subtotal P1,332.00 d. Drinks Bottled softdrinks, 144 @7.00 1,008.00 e. Others E-Load, 7 @1,000.00 7,000.00 Total P 26,819.00 II. Cost of Good Sold Particulars Initial purchase Add: 40% Weekly Purchase for 3 weeks replenishment of goods Total Cost of Good Sold Add: 20% Mark-up

Total III. Projected Income Particulars Sales (P52.322.16x 80%) Less: Cost of Sales Net Sales Total Net Sales P11,456.29 Less: Operating expenses Water and electricity 400.00 Labor 3,000.00 Transportation 200.00 Miscellaneous 2,180.00 Total operating expenses 5,780.00 Total estimated net income P5,676.29 Assumptions: 40% of the items are being replenished every week Mark-up of 20% per item 80% of total goods are considered sold per month 20% of the goods remain in the inventory per month Here are some tips on how to start a sari-sari store business: Create a niche. If there are already three such stores on your street, it would be good to specialize in something. Miriams sari-sari store in Quezon City flourished because she was the only in the area that sold nail polish, pad papers for different grades, ballpens and Campbells soups. What Miriam would do was look at the merchandise of her competitors and buy what they didnt offer. Christine, who studied making tapa, tocino and longganisa, started selling her cured meats at her sari -sari store in a non-affluent area of Makati City and they were a big hit. Christine would cook a few pieces and offer them to her customers. Some of her neighbors would even order four to five kilos of tapa and tocino at a time. Make it legal. A sari-sari store is a micro-enterprise but that does not mean you do not need a business permit to operate it. You also need to talk to your utility providers because the charge for business and residential areas are different and having a store does not fall under residential. Look for the cheapest prices. There are a million wholesalers out there, all vying to be your store of choice but just because you have a suki does not mean that you should get all your merchandise from him or her. Look for other suppliers and dont stop searching for the best bargains. Keep records. Even if youre not an accountant, keep records of all your transactions. Some storeowners simply add the days sales and apply a mark-up on what they sold to compute their net profit. But unless youre really good with numbers, it is better to record all transactions in a ledger. Goods P41.857.73 34,881.44 6,976.29

You need cash. Many sari-sari store owners have lost money because they extended credit to people who couldnt pay them back. This is what happened to Delia of Quezon City, who extended credit lines to her neighbors and relatives. Unfortunately, these creditors did not pay their debts and Delia was left with nothing. Registration Requirements 1. Business name registration (www.bnrs.dti.gov.ph) 2. Mayors/Business Permit (check your local municipality/city) 3. BIR TIN (www.bir.gov.ph) Financing Facility

Read more at BusinessDiary.com.ph: http://businessdiary.com.ph/1807/how-to-start-a-sari-saristore-business/#ixzz2M8HLl1RW - See more at: http://businessdiary.com.ph/1807/how-to-start-asari-sari-store-business/#sthlending for individual borrower with an asset size of P500,000-1M.) 7. SSS Special Financing Program Social Security System (SSS) Loans and Investment Office SSS Building, East Avenue, Diliman, Quezon City Tel. Nos.: (632)920.6401 / 920.6446 Email: member_relations@sss.gov.ph Website: www.sss.gov.ph

Read more at BusinessDiary.com.ph: http://businessdiary.com.ph/792/funding-sources-for-yourbusiness/#ixzz2M8IRKlLK - See more at: http://businessdiary.com.ph/792/funding-sources-for-yourbusiness/#sthash.xikkIXSM.dpufash.wADUsgKM.dpuf