sari sari store business plan example

How To Start and Manage a Sari-Sari Store Business: An Ultimate Guide

Sari-sari stores are an integral part of every Philippine neighborhood. For many Filipinos, sari-sari stores are not only a source of groceries and home supplies but also a great place to meet their neighbors.

According to Philippine tech start-up GrowSari 1 , there are more than 1.1 million sari-sari stores in the Philippines. Thus, they are important parts of the product distribution network in the country.

If you want to start a sari-sari store business yourself, you have to know how you can compete in this highly populated space. This guide will help you decide if a sari-sari store business is for you and teach you how you can earn a profit from running one.

Related: Best Business Ideas in the Philippines [Pandemic-Proof]

Table of Contents

1. overview, 2. capital requirement, 3. competitors, 4. earnings.

• Differences Between a Sari-Sari Store and a Convenience Store or Grocery 

1. Time To Run & Manage It Yourself

2. solid community ties, 3. strict & organized, 1. advantages, 2. disadvantages, a. join business training programs online or in your area, b. learn about your customers.

• C. Study Your Competitors 

D. Decision Time: Is a Sari-Sari Store a Good Fit for Your Situation?

A. set a goal for your sari-sari store, b. choose a location for your sari-sari store, c. create a product list.

• D. Find the Right Suppliers 

E. Do the Math

F. decision time: can you make a sari-sari store work in your location.

• A. Register Your Sari-Sari Store’s Business Name 

B. Register With the BIR

Business permit requirements for a sari-sari store, how to get a business permit for a sari-sari store, how much does a business permit for a sari-sari store cost.

• D. Set Up and Stock Your Sari-Sari Store 

E. Open and Run Your Store

F. maintain a strict record of your inventory and sales, g. promote your store locally & through your network, h. decision time: what should you change to make your sari-sari store profitable, a. break down your goal into smaller goals, b. expand your sari-sari store, c. what success looks like for a sari-sari store, d. decision time: should you continue running your sari-sari store, 1. separate your sari-sari store money from personal use, 2. remember: never sell on credit, 3. for sari-sari stores, success is making your customers feel that it is convenient to shop with you., 4. salesmen will sometimes visit you to push you into carrying their products in your store. try to negotiate a good deal for your store., 5. don’t stop trying to find more ways to reach more customers..

• 1. Is running a sari-sari store still profitable? 
• 2. How much does it cost to start a sari-sari store? 

Sari-Sari Store: The Basics

A sari-sari store is basically a small retail store, often family-owned and run, that carries a variety of basic goods, hence the name “sari-sari” which means “an assortment”. 

They carry anything that they think their community would buy, from candies to beer. And as Filipinos become more reliant on technology, sari-sari stores also begin to sell other necessities such as phone load or e-credits. 

Their primary customers are the people who live nearby, their neighbors. Thus, convenience is the main reason people buy from them.

Typically, sari-sari stores are set up in a family’s home through a small room with a window, usually with railings, that faces the road. 

So, the biggest cost is just stocking up on the products to sell. This can range anywhere from ₱2,000 to ₱30,000 depending on the variety and amount of products. If you are building a dedicated space for your sari-sari store, then the capital you need will increase by a lot.

Your other expenses include government registration , which ranges from  ₱1,890 to ₱6,590 depending on how much a business permit costs in your city or municipality .

The competitors of sari-sari stores include convenience stores, groceries, and other sari-sari stores. 

Sari-sari stores typically add a 10 to 20% markup on their products as their main source of revenue. Though owners usually don’t want to deal with centavos, so they round it up to the nearest peso. 

Differences Between a Sari-Sari Store and a Convenience Store or Grocery

• Convenience stores and groceries are bigger in size and carry a larger amount of products than sari-sari stores. It’s also rare for sari-sari stores to have a frozen or refrigerated food section, aside from a few cold drinks. 
• Sari-sari stores usually have cheaper prices than modern convenience stores. This is because convenience stores have air-conditioning and salary costs that are especially high when they are open 24/7. Meanwhile, groceries are usually cheaper than sari-sari stores since they buy in bulk and sell a larger volume. 
• Convenience stores and groceries are usually only located on maid roads where there is a lot of traffic. Sari-sari stores can be found in almost any location including side streets or even inside subdivisions. 

What Qualities Are Ideal for People Who Want To Run a Sari-Sari Store?

Certain qualities will help you start and manage a sari-sari store much more smoothly. If you have any of the following traits, then you might see success easier than others. 

Because of low margins, people or families who have the time to run the sari-sari stores themselves will be able to save on hiring an employee. Lowering your costs as much as you can also mean you can keep your prices competitive. 

People and families who have or can build a good relationship with their neighbors and community have an advantage since they can help drive traffic and sales to the store. 

Again, because of the low margins, people who are strict in managing their inventory and writing down records are more likely to succeed. It’s equally important to strictly never sell on credit as well. One bad stock or debt and a day’s worth of profits can be wiped out immediately. 

Advantages & Disadvantages of a Sari-Sari Store Business

Compared to other kinds of businesses, the sari-sari store has unique advantages, especially for a newbie entrepreneur. These include: 

• Easy to start. With a low capital requirement and a simple setup, the sari-sari store is a business that you can begin in just a few days. It’s also a good starting point for people who want to experience running a business, and if successful, grow into a bigger retail store. 
• Save on rent and salary. If you run a sari-sari store in your home by yourself or with help from your family, then you can save on costly rent and salary expenses. 
• Strengthen relationship with community. Being the friendly neighborhood sari-sari store means you are the go-to place of the nearby families for their daily necessities. This helps you build stronger relationships with your neighbors. 

However, due to its nature of being easy to set up, it also has its own share of disadvantages. These include: 

• High competition. Since almost anyone can start a sari-sari store, it means that there is stiff competition. Not to mention that you also have to compete with convenience stores and groceries. You have to learn how to keep your clients coming back to your store. 
• Low margin, low sales volume. Because convenience is the main selling point of sari-sari stores, they only add a small markup to their prices to remain competitive. They also don’t sell in bulk so they need to have as many repeat customers as they can. 
• Reputation of poor-quality products. There is a negative reputation that sari-sari stores carry poorer quality products. This is likely due to some owners not taking care of their inventory well by exposing them to the sun or air or letting products expire. This can be solved through proper storage and inventory management. 

How To Start and Manage a Sari-Sari Store Business: A Step-by-Step Guide

This guide is divided into 4 different phases. At the end of each phase, you will have to make a crucial decision. This is to emphasize that while sari-sari stores are easy to set up, it’s not easy to succeed. 

Phase 1: Training & Research

In this phase, your goal is to learn the basics of business so that you can determine if running a sari-sari store is a good fit for your situation. 

You have to learn a bit more about the basics of running your own business before you can properly evaluate if running a sari-sari store is for you. Many organizations, private and government, provide free business training programs and seminars. Here’re are some examples: 

• The Department of Trade and Industry (DTI) partnered with the Philippine Trade Training Center (PTTC) to provide seminars and training programs 2 , both locally and online. You should ask your local DTI branch or LGU if they currently have a program for you. They also have an online resource 3 for MSMEs regarding how to make a business plan. 
• Go Negosyo, by the non-profit organization Philippine Center for Entrepreneurship (PCE), provides free one-on-one mentorship around the country through their KAPATID Mentor ME program 4 . You can follow their Facebook page for updates. 
• TESDA has an e-learning program called “ Start and Improve Your Business ” that teaches the basics for people who want to start their own small business . 
• Hapinoy is a social enterprise that teaches sari-sari store owners the best practices of running their own store. They are not present in all Philippine provinces yet but you can follow their Facebook page for updates. 

Take note, however, that some programs are only available on a per-schedule basis. So, while waiting, you may want to read up in advance through the various videos and resources available online.

Regardless if you start a sari-sari store or not, what you learn can still be useful when starting other kinds of businesses. 

A sari-sari store’s main customers will be the people nearest to them, meaning your neighbors and community. There’re a few things you should find out about them to get an idea if they’ll shop at your sari-sari store or not. These include: 

• When and where do they buy their food and home goods? 
• What kinds and brands of products do they buy? 
• How much do they spend on a shopping trip? 
• What is their daily commute like? Will they pass by the location you want for your store? 

You can do this very informally while just chatting with your neighbors. This information will help you decide if a sari-sari store can fit your customers’ shopping habits or not.

For example, some people like to buy in bulk so that they can save money. If most of your neighbors are like this, then a sari-sari store may not be the best fit in your area.

However, there’s still an opportunity if there are products that your neighbors prefer to buy in “ tingi ” or small amounts. For example, they may purchase food in bulk but only buy non-essential goods, such as cigarettes or beer, per piece. 

C. Study Your Competitors

If there is a competitor in your area, then you’ll be fighting over the limited number of customers that you can reach. You should pay a visit to their store and find out: 

• What are the brands or products that your competitors are selling? 
• What are the prices of their most popular products? 
• What are their opening and closing times? 

If there’s a product that your neighbors want but is not available from your competitors, then that’s an opportunity for you. 

For sari-sari stores, convenience is the main reason people will buy from your store over others. So, when studying your competition, you need to find out what is inconvenient about the other options available. If you make it more convenient to shop with you, then you’ll get more customers. 

Using what you learned from your training, as well as what you researched about your customers and competitors, you should now have a better idea if a sari-sari store will work or not. 

• Will I have any potential customers? 
• Are there products that my potential customers will buy frequently? 
• Are my potential customers unsatisfied with the competitors? 

If your answers to the questions above are a ‘No’ then don’t get hung up on the idea of starting a sari-sari store. You can use what you’ve learned and researched so far to start another business instead. Click here to get business ideas.

If you think there is an opportunity for your sari-sari store to succeed, then it’s time to begin planning how your store will do just that. 

Phase 2: Planning

In this phase, your goal is to back up your decision to run a sari-sari store with actual numbers. By doing this, you can check if it will become profitable and if it is worth the effort. 

Tip : The steps you go through in this phase are all part of making a sari-sari store business plan . It’s not a requirement, but if you ever need a sari-sari store business plan for getting a loan or an investment, then all you need to do is create a formal document covering the details of each step in this phase.

The first thing you need to do is to set a goal that your business, the sari-sari store, must meet. Most of the time this is a monetary goal. An example would be “I want to earn ₱10,000 a month through the sari-sari store.” 

When setting a goal, just remember a few things: 

• Make it personal . This way, it’s important for you that the goal is achieved. 
• Make it realistic. If you have a big goal, break it down into smaller goals. So, you can keep yourself motivated as you make progress. 
• Set a deadline. This will force you to work hard and smart. 

Your goal will also be an important factor in deciding if you’ll run a sari-sari store or not. So, write it down and don’t forget it. 

Using your research earlier about your customers, you have to choose a location where it’s convenient for them to buy from you.  

Most sari-sari stores are run in the owner’s home to save on rent and to keep prices low. However, if your home is located in an out-of-the-way area, then your customers may not frequent you. 

To find out if your home is enough, then you need to: 

• Know what the foot traffic is like in the area . Is the number of people passing by a lot? What time do they pass by? 
• Learn what kinds of people are passing by. Are they students or office workers? Depending on the type of person, the products they buy will be different. 
• Find out if your store will be visible to the people passing by. If not, then you might need to add a large signage or another visible landmark. 
• Check the locations of your competitors. Are you near a mall, convenience store, or supermarket? You want some distance from them since it’s difficult to directly compete with these business establishments.

While renting a space in a more favorable location is an option, it’s not really recommended for beginners. With a sari-sari store’s low margins, it may be difficult to earn enough to cover rent expenses. 

Based on what you learned about your customers, you now have to create a list of products that you will sell in your sari-sari store.  

It may sound difficult to do, but if you just focus on what kind of customers you’ll have, you’ll be able to create a list much more easily. 

For example, if you are located inside a subdivision, your customers are mostly households. So, food and home essentials are perfect products for your market. 

Meanwhile, if you are near an office, then your customers could be people who are taking a break from work. So, you can stock up on merienda items, such as coffee or instant noodles. If there are a lot of smokers, then sell cigarettes. 

If you are near a school, then it’s a good idea to stock up on what students like or need. These include candies, snacks, and school supplies. 

When you are creating your product list, remember to: 

• Be conscious of your customers’ budget . Don’t sell expensive brands if you don’t think they can afford them. 
• When you carry popular brands, make sure to check the prices of the competition . You should aim to have the same or lower price unless the competition is inconvenient to visit. In those cases, you can add a little premium to your prices. 
• Avoid choosing problematic products , such as those with a short expiry date or those that spoil due to heat. One product going bad can wipe out your whole day’s earnings. 

If you really have no idea where to start, then you can check DTI’s list of basic necessities and prime commodities 5 . However, just choose the ones that you think your customers would need or like. 

Your product list does not have to be perfect. You can always adjust what you stock after you have opened and received feedback from your customers. 

D. Find the Right Suppliers

Now that you have a product list, it’s time to find a place where you can stock up on your products. Here are some ideas on where you can find products to sell: 

• Wholesalers. These are stores that normally sell their products in bulk so you can get your stock at a cheaper price. Puregold is an example of a nationally known wholesaler. However, there are many other wholesalers across the Philippines. You’ll probably know better the name of the one that is nearest to you. 
• Supermarkets. This is not the ideal place to get your products. They typically sell at higher prices than wholesalers, so you’ll have lower margins. However, if you just need to restock quickly to meet a customer demand then you can use it as an alternative. 
• Direct from Manufacturer. You can contact a manufacturer or the distributor in your area to see if they are willing to sell their products to you at prices cheaper than a wholesaler. Although, once your sari-sari store is more established, it’s not uncommon to get a visit from a salesperson offering you good deals as well. 
• Sari-Sari Store Apps. There are also dedicated apps, such as GrowSari , for the sari-sari store owner. Each app would have different features. GrowSari, in particular, promises to sell products to sari-sari store owners at distributorship prices. However, their app is not available in all Philippine provinces yet. 
• Online Marketplaces. If you want to add some uniqueness to the products in your sari-sari store, then you can add some from online marketplaces such as Shopee or Lazada. However, you have to know exactly what your customers would want so you don’t waste the delivery fee. 

Feel free to take your time and explore your supplier options. This is where most of your capital will go, and it will affect every crucial part of your sari-sari store. 

You don’t have to buy your products just yet. You can just take note of the prices so that you can properly compute if you can make a profit or not. 

Here are a few tips on selecting a supplier: 

• You should already have information about the prices of your competitors. The suppliers you choose should make it possible for you to compete with a reasonable 10% to 20% markup, otherwise, you should look for other options. 
• Don’t forget to treat transportation costs as part of the cost of your products . Ideally, your suppliers should be nearby, so you don’t have to spend too much on transportation. However, if you buy products in bulk then you can spread out the cost across the different products you carry. 
• Lastly, choose suppliers that have a solid reputation and a reasonable return policy . Bad suppliers may attempt to trick you into purchasing expired or poor-quality goods. Due to low margins, you don’t much room for errors. 

At this point, you should have enough information to see if you can make a profit from starting a sari-sari store or not. 

To do that, you need to do a computation like the one below. You can make it as detailed as you want, but here is a basic example: 

In this example, let’s assume that you don’t want to stock up on too many items, so you choose only a small amount of the essentials. 

• Step 1 : List down the cost per unit of each of the products you want to stock. You can make it more detailed than the one in the example above by listing each item or brand. 
• Step 2 : Write down the quantity of each of the products you want to stock. 
• Step 3 : Multiply the cost per unit and quantity to get the total cost of each brand or type of product you want to stock. 
• Step 4 : Add up all the costs of your products to get the total. 
• Step 5 : Multiply the total costs of your products by the markup or “patong” you want to add to your products. In this example, a 20% markup was used. 
• Step 6 : List down an estimate of your other expenses. These may include transportation, rent, salary, electricity, and water. In this example, the sari-sari store owner is not paying rent or salary. Note that you may encounter other expenses later, such as taxes. 
• Step 7 : Subtract the total of your other expenses from your markup. The number you end up with is your income if you sold all of the products. 

After doing your computations, you now have to make another crucial decision based on the information you have. Answer the questions below to see if a sari-sari store makes sense or not. 

• Can you beat your competitors? 
• Can you sell the whole quantity of goods that you plan to stock in a reasonable amount of time? 
• Did the potential income make sense based on the goal you want to reach? If the income will not help you reach your goal, you might want to explore other ways of earning income instead. 

It’s not easy to answer these questions, so you might want to do a trial run first. This should help you build confidence that you are making the right decision. 

Once you decide that this is really something you can do, then you have to be committed to it for the long run. The next steps will take a lot of effort and incur additional expenses. 

Phase 3: Business Registration and Launch

At this point, it’s about time to turn your plans into a reality. To do that, you have to start your business right and work hard every day to earn enough to at least cover your business’s expenses. 

A. Register Your Sari-Sari Store’s Business Name

To start your business right, you have to register with the required government authorities. By registering properly, you can legalize your business and take advantage of government programs for micro and small businesses. 

Usually, the first step in the process is to register your business name. However, for sari-sari stores, this step is optional 6 if you will just use your given name. 

However, if you want to use a business name, then you need to register with the government . You can just keep the business name simple such as combining “your name” with “sari-sari store”. For example, “Lydia Bautista’s Sari-Sari Store”. 

For a sari-sari store, it’s recommended to register as a sole proprietorship with the DTI. You can do this easily by visiting a local DTI office or one-stop shop. DTI registration is also available online . 

Please note that the fees you have to pay will depend on the business scope that you will choose. For sari-sari stores, you can just choose “Barangay” as the scope, so you only have to pay ₱200 plus a documentary stamp fee to register. 

Next, you have to register with the BIR by visiting the revenue district office (RDO) with jurisdiction over the city or municipality where your store will be located, or by using their online registration system. Note that you can do this at the same time as getting your business permit 7 from your city or municipal office. 

Since you are a sole proprietorship, you have to fill up BIR form 1901 . You can check your RDO code at our updated list . 

You can ask the BIR staff if there are tax exemptions for sari-sari store owners. If there are none, you can expect to pay the following: 

• Annual registration fee (ARF): ₱500  
• Documentary stamp tax: ₱15  
• Certification fee: ₱15 
• Registration of books of accounts: ₱800 
• Sales Invoice: ₱30 

In total, you have to pay ₱1,360 to complete your registration with the BIR.  

Under the TRAIN law, you are exempt from paying taxes as long as your sari-sari store is not earning more than ₱250,000 annually 8 . However, you still have to file your papers monthly, quarterly and annually to comply with the required procedures. 

C. Get a Business Permit for Your Sari-Sari Store

Does a sari-sari store need a business permit? Yes. Sari-sari stores are considered micro-business and you will need to get a business permit as part of the government registration requirements. 

You can ask the staff at your local city or municipal hall if there are any exemptions for a sari-sari store business. However, if there are none, then you need to go through the regular procedures. 

• Barangay Business Clearance – you can get this from the barangay hall with jurisdiction over the place where your sari-sari store will be located. 
• Community Tax Certificate (CTC) or cedula – you can get this from your city, municipal, or barangay hall. 
• Ph otos of the exterior of your sari-sari store – applicants need to submit printed copies of these photos.  
• Sketch or vicinity map of your store’s location – you can also use a screenshot from Google Maps.
• Original and a copy of your DTI Business Name Registration Certificate .
• Copy of your contract of lease (if you are renting the location). 
• Go to the municipal or city hall with jurisdiction over your place of business and obtain the official checklist of requirements for business permit application. You may use the above list as a reference but keep in mind that requirements may change without further notice, hence the need to verify it with the personnel at the city or municipal hall.
• Get a copy of the business permit application form from the city or municipal hall. You may also get a copy of it online, if available.
• Notarize your business permit application form. 
• Submit the business permit application form along with the other requirements. 
• Pay the assessment fee. 
• Once everything is in order, the staff will tell you when you can claim the business permit for your sari-sari store. Just go back on the scheduled date. 

It depends on the city or municipality. It varies wildly as it can cost anywhere from ₱300 to ₱5,000.  

Please note that the business permit is something that you have to pay for either quarterly or annually. So, make sure to consider that cost as part of what you need to cover with your sari-sari store’s income. 

D. Set Up and Stock Your Sari-Sari Store

Once your government registrations are done, the next step is to actually set up your sari-sari store. It’s also the time to buy the items on your product list so you can begin selling them to your customers. 

It’s up to you if you want to spend money on construction to make your store look more appealing. However, you can always do it slowly and spend as you earn. 

There are a number of things you should do to optimize your sari-sari store’s setup. These include: 

• Ensure that the most popular brands and products are easy to see from far away. One trick you can use is by lining up the same or similar products like how they do it in a supermarket. This will improve the visibility of these products and will attract customers to your store. 
• Ask your suppliers for posters, signs, and other things you can use to promote products . Place them where they can be easily seen. This will also help let your customers know that you are carrying those brands. 
• Make it clean and organized . It’s tempting to just place your posters and stock wherever there is space; however, people who are walking by won’t know where to look if it looks cluttered from the outside. 
• When organizing your sari-sari store’s products, you should make it easy for you to get the earliest stock . The way you organize your products should follow the “First In, First Out”(FIFO) system. This means that you should always sell the stock that you bought earlier or has the nearest expiry date. 
• Check with your local city or municipal office if you can get a license to sell regulated products , such as cigarettes and alcoholic drinks. 

You can also set up your store as a gathering place for people in your community by adding chairs or tables. This can be beneficial in attracting customers. However, you should be careful that it doesn’t attract a bad crowd, such as drunkards, that could scare off your other customers. 

After setting up your store, you can now open it and start selling your stock. Don’t expect to be successful overnight. There’s still a lot more work to do to make your sari-sari store profitable, including: 

• You should decide on what your opening and closing times are according to the foot traffic in your sari-sari store’s location. 
• Remember, a customer with a good experience has a higher likelihood of coming back to your store. So, try to build a good relationship with your customers as much as you can. 
• During times when there aren’t many customers, you can keep yourself productive by doing online marketing, organizing your stock, or updating your records . 

For now, just do things slowly so you don’t overwhelm yourself. After you get a feel for running the sari-sari store, the next thing you should aim for is to reach your sari-sari store’s breakeven point. 

The breakeven point is when “You are selling enough to cover your business’s expenses”. This should be your very first monetary goal. You should cover everything that you’ve spent so far, including the government registration fees. 

In order to do this, you have to work hard in the next steps. 

One of the most common reasons that sari-sari stores close is because of bad inventory management. Just one product that expires, becomes damaged, or gets lost can lead to a day’s worth of income disappearing.  

This is why you should be very very strict in managing your inventory.  

For a sari-sari store business, proper inventory management involves the following:

• Make sure to record everything , from the inventory to the cash, coming in and out of your sari-sari store. You can use a computer, phone apps, or a ledger for this. 
• With a proper record, you can see which products are selling faster than the others. This way, you can plan and stock your store accordingly . Your goal is to avoid any “out of stock” issues when your customers drop by to shop. 
• Always keep track of expiry dates . As mentioned before, when selling your stock, make sure to sell the ones you bought earlier or have the nearest expiry date first. 
• Store your products properly . You want to keep them away from excessive heat, pests, and theft. 
• Never get any product from the sari-sari store without paying for it . It’s true that you own the stock, but you should separate the sari-sari store’s finances from personal use. Make sure your family also abides by this rule. 
• Never sell on credit . “Palista” is the enemy of small businesses like the sari-sari store. Debts can not only wipe out your income but also lead to the closure of your business. 

Below is a sample inventory and sales record. We’ve also created a FREE inventory and sales record template that you can download to make your own. 

It might look complicated at first but once you get the hang of it, it becomes much easier. Let’s break it down into smaller parts. 

• Step 1 : Write down the period of time that the inventory and sales record will cover. It can be daily, weekly, or monthly depending on your needs. Since you are just starting out and don’t have much sales volume yet, “weekly” is a good starting point. You can do “daily” once your sales have increased significantly. 
• Step 2 : List down all of the products that you will have for sale. Make sure to include details such as their brand, variant/flavor, and size. If you are selling items in “tingi”, then what you will write is the size in “tingi”. 
• Step 3 : Write down the starting quantity of your products. Since you just opened, the starting quantity for all your products is zero. After the week is finished, create a new record where your starting quantity is how much of each product you have at the end of the week. 

• Step 4 : List down the cost of each product that you stocked. If you are selling it in “tingi”, you write how much it cost you per piece. 
• Step 5 : Write the quantity of each product you stocked. 
• Step 6 : The template will automatically compute how much was spent on each type of product. This is the quantity multiplied by the item cost. At the bottom, you’ll see the total purchase cost. This should be equal to the amount shown on the receipt from your shopping trip. 

• Step 7 : List down the selling price for each item you have. 
• Step 8 : As you run your store, you can write down how much you’ve sold of each item in this column. If you find it difficult to update while running your store, you can always just write it down on paper first and transfer it to the template at the end of each day. 
• Step 9 : As you update your sales, the template will also automatically update how much your sales are for each item. You’ll find the total sales for the period at the bottom.

• Step 10 : In ‘Bad Stock’, input how many of each type of product got damaged, went unpaid, or got lost. 
• Step 11 : This part is automatically updated as you input the quantity of your sales and bad stock. Here you’ll see how much of each product that you should still have on hand. Make sure to check every day if your records match the real-life scenario in your store. 

• Step 12 : Once the week has ended, you just need to copy what you’ve made so far and change the date for the next week. You can copy the product description, item cost, and selling price. However, you need to remove the quantity to have a clean record for the week. If you are purchasing a new product, simply add a new row to the product description. 
• Step 13 : Lastly, you need to copy the ‘Current Stock on Hand’ from the previous week and make it your new starting balance. 

As you’ve seen from the example above, it takes a lot of effort to strictly maintain your inventory and sales record. However, seeing the numbers makes you understand the value of each of the products you sell. That’s why everything in your inventory should be taken care of properly. 

Once you are open, you can freely promote your business. There are many ways to do this, and you can be as creative as you can. 

Here are some ideas: 

• Visit your neighbors and share the news . If you did your research properly, you should already know what products they would be interested in. Tell them that you have those products available if they ever need them. Don’t give out free stuff though, they might take it for granted. 
• Join social media groups or chats for your subdivision or area. You’ll usually find these on Facebook. You can announce that your store is now open, and you can also post updates like telling them about any new products that you carry. 
• Ask your barangay hall if there are any local events coming up . You might be able to find an opportunity to promote your sari-sari store there if they will also allow you to sell your stock during the event. 

It might be hard to find time to do promotions especially when you are running the store at the same time. However, during times when there aren’t many customers, you can use the time to promote yourself online. 

After a few months of running your sari-sari store, you should be able to determine if your plan is working or not. If the plan isn’t working, it’s time to take a moment and evaluate what you are doing. 

Check your numbers. Are there areas in your sari-sari store’s operation that you should adjust? 

• If you think that your margins are too low, you can raise your prices. But if that isn’t an option due to the competition, then you can try lowering your costs by finding new suppliers or buying in bulk. 
• Are your products selling slowly? You should check if the products you are carrying fit the needs of your customers. You can also promote yourself more or check if your opening time matches the time when there is high foot traffic. 
• Do you have any products that go bad or get lost? You should be stricter in your inventory management. 
• Are customers coming back to your store? If not, then you should find out why and solve that problem before it’s too late. 

Here’s an example of an adjustment you can learn by checking your numbers: 

In this example, the original flavor of the Vienna sausage is outselling the spicy flavor. It’s quite possible that your customers prefer the original flavor. If that’s the case, then the adjustment you should make is to stock less of the spicy variant. 

However, maybe the reason is that they don’t see the spicy variant on your shelves and that’s why they don’t purchase it. If that’s the reason, then you need to make sure that the spicy variant is visible in your sari-sari store. 

Here’s another example. 

Above, you can see that the records show one bad stock of a high-value item that costs ₱135. Since you can no longer sell that product, it’s a huge loss for your sari-sari store, especially with your low margins. Find out why it happened and make sure to learn from your mistakes. 

These are just some examples of what you can encounter. There are many other scenarios where the numbers will show problems in your store that you can make adjustments to. 

Remember, your first goal for this phase is to sell enough to cover your expenses, from the cost of products to the government fees. Once you reach that goal, then you can start expanding and thinking about increasing your profits. 

Phase 4: Growing Your Sari-Sari Store

After reaching the breakeven point in the previous phase, it’s now time to grow your sari-sari store and earn larger profits. 

Once you’re in this phase, you’ll probably have a better idea of what works or what doesn’t work in your community. In phase 4, you need to use everything you’ve learned to reach the goal you’ve set from the very start. 

If you have just reached the breakeven point, it’s hard to believe that the goal of “I want to earn ₱10,000 a month through the sari-sari store” will ever come true. 

That’s why it’s a good idea to break down your big goal into smaller goals. For example, a ₱10,000 a month goal can be broken down into: 

• ₱2,500 after 3 months 
• ₱5,000 after 6 months 
• ₱7,500 after 9 months 
• ₱10,000 after 12 months 

It’s up to you how you break down your goal. However, make it realistic by using the data from your records. Once you have your smaller goals listed down, you can continue to make the adjustments you’ve learned from the previous phase to make your store more profitable. 

To get closer to your goals, you may want to start exploring ways how to expand your sari-sari store. You can get as creative as you want, as long as you think of your customers first. 

• Expand your product range if you think there are products that your customers would buy that you do not carry yet. For example, if there is a substantial increase in the number of babies in your community, you might want to start carrying diapers. 
• Expand the size of your store if your customers are doing most of their grocery shopping with you rather than going to supermarkets. Just be careful not to overstock. 
• Expand the reach of your store by offering delivery to customers who live farther away. Only offer this if you can make time for it. Set a clear set of rules so your customers’ expectations match your capabilities. 
• Consider adding a “pabili” or personal shopper service. If you have customers in your area who are always busy and don’t have time to shop for groceries themselves, then they might be interested in a “pabili” service. You can just charge a premium for it and do it at the same time you buy stock for your sari-sari store. 

Just a word of warning. Sometimes you can get too excited about trying out new ideas that you push to do them without considering the cost. Whenever you have an idea, sit down first and write down its advantages and disadvantages . This way, you can make an informed decision. 

It is up to you to say what success looks like for you based on the goal you’ve set at the start. If you think the profit you are earning is worth the time and effort that you’ve put into the sari-sari store then continue to work hard to grow it. 

Based on the examples we’ve used so far in this guide, success looks something like what’s shown below: 

Their total profit for one month meets their ₱10,000 a month goal. 

Their sales amount to about ₱16,000 per week which is about ₱2,286 per day. With a 20% margin, this amounts to around ₱2,600 net revenue per week or ₱372 net revenue per day. 

After subtracting the other expenses, then they are left with a ₱10,078 profit for the month. They can then use this profit to grow their store further or withdraw it for personal use. 

For you, the number might be different, but as long as it’s a goal that you came up with carefully, then you should consider it a success once you’ve reached it. 

If you are successful, then definitely. If something has changed in your life, then you might want to make adjustments. For example, if you don’t have as much time as before, then you can either hire a part-time employee or change your opening times. 

If you can’t make your sari-sari store profitable, don’t give up too soon. Exhaust every option that you can to make it work. 

However, if you’ve rechecked and adjusted everything that you can about your sari-sari store’s operations and you still can’t find any way to make it work, then there’s no shame in cutting your losses and closing it down . 

Take a break and take care of yourself. The effort you’ve put into your sari-sari store wasn’t a waste. Everything you’ve learned and experienced so far will be something you can use for a future business. 

Tips and Warnings

This also means that if you need an item from the sari-sari store then you also need to pay the store for it, even if you own it. It might be tempting to get what you need for the store at any time, but this is a bad habit that can lead to your store losing money. 

Since you are selling to people you know, such as your neighbors, they might be tempted to pay through “palista” or credit. However, with a sari-sari store’s low margins, one bad debt may mean you lose a day or even a week’s worth of profits. 

In cases where you don’t have a product that a customer is looking for, never say “we don’t have it”, just say it’s “out of stock”. Then, assure your customers that you will have it on the next stocking day.  

Ask for discounts, posters, equipment, and other things that can help sell their products. If their products need to be kept in refrigerators, make sure to take electricity costs into account. You can always decline to carry a product if you don’t think you are getting a good deal. 

Since a sari-sari store is a low-margin business, you have to increase your sales volume as much as you can. 

Frequently Asked Questions

1. is running a sari-sari store still profitable.

Yes, a sari-sari store can still be profitable. However, because the margins are so tight it doesn’t leave much room for error.  

Success is different from person to person. So, it’s up to you what level of profit can be considered enough for your needs. If you have a goal that can’t be met by a sari-sari store’s income, then it might not be worth it for you to run a sari-sari store business at all. 

Related: 100+ Best Franchise Business Opportunities For Every Budget

2. How much does it cost to start a sari-sari store?

Sari-sari stores cost differently depending on how much inventory you want to carry, if you plan to rent and build a space, and if you hire employees. It can cost as little as ₱3,940 and can go up to six digits depending on how much you invest in it. 

Here’s a list of costs that you can expect: 

• Inventory Costs : ₱2,000 to ₱30,000+ 
• Transportation : ₱50 to ₱300+ 
• Rent : ₱0 to ₱10,000+
• Construction :  ₱0 to ₱30,000+
• Salary : ₱0 to ₱10,000+ 
• DTI Registration : ₱230 
• BIR Registration : ₱1,360 
• Business Permit : ₱300 to ₱5,000 

Note that this does not yet include any operational costs that you might have, such as electricity or water utilities.

• Shu, C. (2021). GrowSari, a B2B platform for small stores in the Philippines, adds investors like Temasek’s Pavilion Capital and Tencent. Retrieved 3 April 2022, from https://techcrunch.com/2021/06/21/growsari-a-b2b-platform-for-small-stores-in-the-philippines-adds-investors-like-temaseks-pavilion-capital-and-tencent/
• Training Calendar. (2022). Retrieved 3 April 2022, from https://pttc.gov.ph/webinar/
• Start and Grow Your Business. Retrieved 3 April 2022, from https://www.dti.gov.ph/negosyo/start-and-grow-your-business/
• KAPATID Mentor ME Project. Retrieved 3 April 2022, from https://www.dti.gov.ph/negosyo/kapatid-mentor-me-project/
• Latest Suggested Retail Prices (SRPs) of Basic Necessities and Prime Commodities. (2022). Retrieved 3 April 2022, from https://www.dti.gov.ph/konsyumer/latest-srps-basic-necessities-prime-commodities/
• Department of the Interior and Local Government (DILG), Department of Trade and Industry (DTI), and Department of Information and Communications Technology (DICT). (2016).  Joint Memorandum Circular No. 01, Series of 2016 (Revised Standards in Processing Business Permits and Licenses in All Cities and Municipalities)  (p. 5).
• Ramirez, J. (2020). BIR ditches mayor’s permit as a registration requirement. Retrieved 3 April 2022, from https://mb.com.ph/2020/06/15/bir-ditches-mayors-permit-as-a-registration-requirement/
• Package 1: TRAIN. Retrieved 3 April 2022, from https://taxreform.dof.gov.ph/tax-reform-packages/p1-train/

Written by Rod Michael Perez

in Business and Finance , Juander How

Last Updated April 18, 2022 12:57 PM

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

Browse all articles written by Rod Michael Perez

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The Ultimate Guide to Starting a Sari-Sari Store Business in the Philippines

Table of Contents

Introduction.

Imagine turning a small corner of your home into a bustling hub of community life and entrepreneurship. That’s precisely the magic of a sari-sari store, an essential facet of Filipino neighborhood culture. These quaint little shops do more than just sell goods; they become a cornerstone for local interactions, offering a convenient stop for everyday needs while fostering social ties. Starting a sari-sari store comes with its set of potential benefits—like generating steady income with relatively low startup costs and becoming an integral part of the local community.

However, it’s not without challenges, including managing inventory, dealing with competition, and navigating the intricacies of running a business with limited experience. This guide is your compass to navigating these waters, laying down the groundwork for aspiring entrepreneurs to build a successful sari-sari store that thrives on community spirit and smart business practices.

Chapter 1: Understanding the Sari-Sari Store Landscape

The role of sari-sari stores in the philippines.

Sari-sari stores, the Filipino term for “variety” or “miscellaneous,” are more than just retail outlets; they are woven into the fabric of local communities across the Philippines. These small, neighborhood stores offer essential goods, from snacks and drinks to household items, often within walking distance for residents. Their importance transcends commerce, as they serve as communal hubs where neighbors gather, share news, and stay connected. In many ways, sari-sari stores embody the bayanihan spirit, providing a support network for local communities.

Difference Between Sari-Sari Stores and Other Retail Formats

Unlike supermarkets or big-box retailers that offer a wide range of products in a large space, sari-sari stores are typically operated out of the store owner’s home and have a much smaller footprint. This setup allows for personalized service and a deep understanding of customer preferences, which large retailers can’t easily replicate. Additionally, sari-sari stores often offer goods in tingi or retail-by-piece, catering to customers who may not have the budget for bulk purchases, a practice not commonly found in larger retail formats.

The Evolution of Sari-Sari Stores in the Digital Age

The digital age has ushered in significant changes for sari-sari stores, with technology offering new ways to manage and grow these businesses. Mobile applications and platforms now enable store owners to restock inventory efficiently, access financial services, and even offer new services like e-loading and bill payments, expanding their role in the community. Despite these advancements, the heart of the sari-sari store remains its close ties to the community, blending tradition with innovation to meet the evolving needs of Filipino neighborhoods.

Chapter 2: Planning Your Sari-Sari Store

Market research: understanding your community’s needs.

Before diving into the sari-sari store business, conducting market research is crucial. This involves observing the local community to understand what products are in demand, identifying what competitors offer, and pinpointing gaps you can fill. For example, if your area lacks a store offering fresh produce or affordable cooked meals, this could be your niche. Engage with potential customers through casual conversations or surveys to grasp their purchasing habits and preferences.

Location, Location, Location: Choosing the Right Spot

The success of a sari-sari store often hinges on its location. Ideal spots are accessible to a high foot traffic area within the community, such as near schools, churches, or along main residential streets. However, consider the competition; setting up shop too close to another sari-sari store could split your potential customer base. Visibility and convenience to your target customers are key factors in choosing the perfect location.

Crafting a Business Plan: Budget, Forecast, and Goals

A well-thought-out business plan is your roadmap to success. Start by detailing your startup costs, including inventory, permits, and renovations. Then, project your sales, considering the average spending of your customers and the frequency of their visits. Setting clear, achievable goals for growth, such as expanding your product range or offering new services, will help guide your business decisions. Remember, your business plan is a living document that should evolve as your store grows and the market changes.

Chapter 3: Legal Requirements and Registration

Necessary permits and registrations.

Starting a sari-sari store requires navigating the legal landscape to ensure your business operates within the law. Key permits include a Barangay clearance, a necessity for any business in the Philippines as it certifies your compliance with local regulations. Registration with the Department of Trade and Industry (DTI) secures your business name and protects it legally. You may also need a Business Permit from the local city or municipal office, alongside securing a Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR).

Understanding Taxes and Compliance for Small Businesses

Compliance with tax obligations is crucial for the longevity of your sari-sari store. Small businesses in the Philippines are subject to various taxes, including income tax, value-added tax (VAT), or percentage tax, depending on the business’s earnings and size. Regularly updating your books and receipts, and understanding the tax breaks and incentives available to small businesses, can help manage tax responsibilities efficiently. It’s advisable to consult with a tax professional to navigate the complexities of tax compliance and benefit from any applicable small business incentives.

Chapter 4: Setting Up Shop

Store layout and design principles for maximum impact.

The layout and design of your sari-sari store can significantly influence customer experience and sales. Optimize space by ensuring your most popular items are easily accessible. Use clear signage for product categories to facilitate browsing. Lighting should be bright enough to make products appealing but not harsh on the eyes. A clean, organized, and welcoming environment encourages repeat business.

Essential Equipment and Initial Inventory: What You Need to Start

Starting requires minimal equipment: shelves for displaying products, a refrigerator for perishables and drinks, and a secure cash register or money box. Your initial inventory should reflect your market research, focusing on high-demand items in your community, like basic groceries, snacks, and household essentials. Balancing variety and depth in categories where you anticipate regular sales is key.

Sourcing Products: Tips for Finding Suppliers and Negotiating Terms

Building relationships with suppliers is crucial for getting the best prices and ensuring a steady supply of products. Attend trade fairs and join local business groups to network with suppliers. Don’t shy away from negotiating terms that benefit your business, such as discounts for bulk purchases or favorable payment terms. Diversifying your supplier list can also protect your store from stock shortages.

Read next: Side Hustles: These are the Best Ways to Make Money in 2024

Chapter 5: Managing Your Finances

Initial investment: estimating start-up costs.

Your initial investment will cover the cost of securing permits, purchasing initial inventory, acquiring necessary equipment, and any renovations to your space. Create a detailed list of these expenses to form a clear picture of the capital required to launch your sari-sari store.

Pricing Strategy: How to Price for Profit While Remaining Competitive

Pricing must strike a balance between being competitive and ensuring profitability. Research local market prices and consider your costs, aiming for a markup that covers expenses while attracting customers. Regularly reviewing and adjusting prices in response to market changes and cost variations is essential.

Keeping the Books: Basic Accounting for Sari-Sari Store Owners

Basic accounting involves tracking all financial transactions, including sales, expenses, and profits. Maintain a ledger or use accounting software tailored for small businesses. Regularly updating financial records helps in monitoring the health of your business, planning for taxes, and making informed decisions for growth and sustainability.

Chapter 6: Operations and Best Practices

Inventory management: streamlining with growsari.

Effectively managing your inventory is crucial to prevent overstock and understock situations. Leveraging GrowSari , sari-sari store owners can access tools for efficient inventory tracking and ordering. This platform allows for real-time visibility into stock levels, helping to make informed decisions about when to reorder supplies. GrowSari’s technology simplifies inventory management, ensuring you have the right products at the right time to meet customer demand.

Customer Service: Building Loyalty and Repeat Business

Prioritizing excellent customer service fosters loyalty and encourages repeat business. Personalize your interactions, remember regular customers’ preferences, and respond promptly to feedback. This approach not only builds a strong rapport with your community but also sets your store apart from competitors.

Credit Management: Handling “Utang” Effectively

Offering credit is a common practice but requires careful management to maintain healthy cash flow. Establish clear credit policies and maintain accurate records of all transactions. This balance of generosity and prudence ensures you can offer this convenience without jeopardizing your store’s financial stability.

Incorporating GrowSari into your inventory management practices not only enhances operational efficiency but also supports better customer service and credit management by freeing up time and resources that can be dedicated to these critical areas.

Chapter 7: Marketing and Growth Strategies

Community engagement: becoming a neighborhood staple.

Fostering a strong relationship with your community is not just beneficial; it’s a cornerstone of your sari-sari store’s success. By participating in local activities and supporting community causes, you do more than increase your store’s visibility; you weave your business into the fabric of daily life, becoming a trusted and valued community ally. This involvement transforms your store from a simple point of purchase to a cherished local institution, deepening customer loyalty and encouraging the kind of word-of-mouth that no amount of advertising can buy.

Digital Marketing: Leveraging Social Media

Expanding on the importance of leveraging social media for digital marketing:.

Utilizing social media platforms allows for a direct and engaging way to connect with your customer base, advertise your products, and share exclusive promotions. An active online presence not only helps in attracting new customers but also ensures your sari-sari store remains a vibrant topic of conversation within the community. Through consistent and creative posts, you can build a loyal following, turning casual browsers into regular patrons, fostering a sense of belonging and community around your brand.

Expanding Your Services with GrowSari

• Integration with GrowSari : Embrace GrowSari to modernize your sari-sari store. This platform enables you to efficiently manage inventory, access a broader product range, and dive into e-commerce.
• Broadening Market Reach : Through GrowSari, offer additional convenient services like e-loading and bills payment, drawing in more customers and enhancing your store’s value.
• Adapting to Digital Trends : GrowSari exemplifies the shift towards digital solutions in the sari-sari store sector, ensuring your business stays competitive and relevant.

Incorporating GrowSari into your business model not only streamlines operations but also positions your sari-sari store for sustainable growth and success in the digital age.

Chapter 8: Overcoming Challenges

Common pitfalls and how to avoid them.

A key challenge for new sari-sari store owners is managing inventory efficiently—too much leads to waste, too little to lost sales. Implementing a simple inventory management system can help. Another pitfall is failing to adapt to customer needs and market trends. Regular feedback collection and market research are vital. Additionally, underestimating the importance of record-keeping can lead to financial disarray. Establishing straightforward bookkeeping practices from the start is crucial.

Case Studies: Success Stories and Lessons Learned

Learning from others can pave the way for your success. Consider the story of a sari-sari store that diversified its income by offering bill payment services, significantly increasing foot traffic and sales. Another case involved a store implementing a loyalty program, enhancing customer retention. These examples highlight the importance of innovation, customer focus, and adaptability in overcoming challenges and achieving business growth.

Chapter 9: Looking to the Future

Trends affecting sari-sari stores (e.g., e-commerce integration).

The digital transformation is reshaping the sari-sari store landscape, with e-commerce and online payment platforms becoming increasingly prevalent. Integrating digital services allows stores to expand their customer base beyond the neighborhood, offering convenience and a broader range of products and services. Adaptation to digital trends is not just beneficial but necessary for staying competitive and relevant.

Planning for Growth and Sustainability

Sustainable growth involves careful planning and continuous improvement. Diversifying your product and service offerings can open up new revenue streams, while investing in technology can streamline operations and improve customer satisfaction. Building a strong community presence and focusing on customer loyalty also contribute to long-term success. Regularly assessing business performance against your goals and being open to pivoting your strategy based on market feedback are key to ensuring your sari-sari store not only survives but thrives in the future.

In wrapping up this comprehensive guide on starting a sari-sari store, we’ve covered the essentials from understanding the landscape, planning, legalities, setting up shop, to managing finances, operations, marketing, overcoming challenges, and planning for the future. Here’s a quick recap:

• Conduct thorough market research and choose a strategic location.
• Navigate legal requirements and secure necessary permits.
• Design your store for maximum impact and manage inventory wisely.
• Develop a solid pricing strategy and maintain accurate financial records.
• Prioritize customer service and consider expanding services to increase value.
• Stay adaptable and leverage digital trends for growth.

Embrace the journey of starting your sari-sari store with confidence. Armed with knowledge and a clear plan, you’re ready to become a vital part of your community’s daily life. Take that leap, and transform your entrepreneurial dream into reality.

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14 Things You Need to Start A Sari Sari Store Business

The first thing you need when starting a sari sari store is money. You can get it from your own pocket or by getting a loan from banks or your relatives.

Either way, you need money. But just how much capital do you need to start a profitable sari sari store?

This depends on your capacity.

But for first time business owners, it’s recommended to just start small and test the waters first. As with any business, you don’t want to over-extend your reach to the point that you can’t get it back.

What this means is that you need to assess the risks first before investing in a business. A lot of store owners started with just a few thousand pesos but eventually grew them into a successful store!

If you want to earn some money while at home so you can acquire some capital, why not try online freelancing? Since you’re just at home, you can work and earn money with just a computer/laptop and internet connection!

Read this if you’re interested: 7 Steps to Start Working at Home in the Philippines

2. Location

The next most important thing or arguably the most important one is the location.

You can’t set up a store in the middle of a field and expect your business to be booming, right?

Unless of course, your customers are birds.

But on a serious note, your location usually will make or break your business.

Ideally, you need to run your store in locations where there are many people such as:

• Highways/Main roads
• Near terminals

If these locations aren’t available to you, you may set up your sari sari store even in a small street.

Just make sure that you’re not near another store. This will ensure that you’ll get all the customers to yourself!

3. Suppliers

It might be more convenient to just buy your goods from the groceries at first.

However, if you want to survive longer – buy straight from suppliers.

As you know, buying from suppliers will allow you to save more money so you can provide the lowest prices!

Establish good terms with your suppliers and you may even secure a credit line, discounts and more!

Another important thing to consider is the prices of your products.

It might be tempting to sell them at low prices at first. But that’s not a good idea if you have a lot of competition around the area.

Do a research and keep note of their prices. This should give you an idea on what to price your products.

But if you don’t have a lot or any competitors at all, you may sell your goods at a higher price than usual.

5. Business Plan

Don’t worry, this may sound complex but it isn’t.

This is usually created by medium to large businesses when starting out.

Most sari sari stores don’t have a plan at all. This is one of the reasons why they fail.

To truly establish your store on a good foot, you need a plan.

A business plan for a sari sari store could just include these simple things:

• A summary of what your business is all about (name, location, goods etc.)
• Your marketing strategies
• Some things to keep in mind

Ideally, you just need this to have a direction for your business.

“If you fail to plan, you are planning to fail” – Benjamin Franklin

6. Storekeeper

Having someone who will manage your sari sari store business is crucial.

You don’t want to delegate this task to someone you don’t trust.

If you don’t have time to do it yourself, you can ask your family, friends or relatives to do it.

Just make sure that they’re well-compensated and they’re doing their job well.

If they’re inexperienced, you need to teach them the basics at the very least.

For instance, they need to have basic math knowledge which will help them to serve customers faster.

This will also ensure that your business will not go bankrupt.

7. Products you’ll sell

If you’re starting with a limited budget, you should consider selling basic needs first.

This includes goods such as:

• Vinegar and Soy Sauce
• Laundry powder

Of course, the basic needs you’ll sell depends on where your store is located.

If it’s near a hospital, you may need to sell some diapers, first-aid kits and more.

But if it’s in a regular neighborhood, then you can sell the common necessities that we need.

Your sari sari store design is also crucial in establishing your business.

You need to categorize your goods accordingly and set a space dedicated to each of them.

This will ensure that your customers can see the products easily.

It will also allow your storekeeper to easily navigate through the goods to better serve the customers.

That’s why it’s a good idea to plan the design of the space and to maintain the organization and cleanliness of it.

9. Marketing

A sari sari store is still a business no matter how small.

As with every business, you need to exert some effort into marketing it.

This means that you can put up banners or tarpaulins around your area.

Or you can go the classic route of the word of mouth.

Advertise your store through your neighbors, friends and relatives!

10. Business Permits

A lot of sari sari store businesses don’t register their business in BIR or DTI.

Some say it’s a hard work or it’s just another expense that will eat up their small income.

But that’s not exactly the case!

BIR tax-exempts minimum income earners. But you still need to register for TIN and to file annual tax returns.

Because if your sari sari store business is registered, you can enjoy a lot of advantages.

One is that suppliers and other entities will see your store as a legit business. This allows you to secure a more advantageous place and you can get discounts.

You can also access other government support that will allow you to grow your business!

11. Accounting  

Don’t be intimidated by this word!

This can be as simple as just taking note of your revenue and expense.

Ideally, you should have a ledger in a notebook to list out all of your inventory, profits and expenses.

But if you’re comfortable around a computer, you can use spreadsheets to do computations much faster.

This will also allow you to easily access and save your files unlike notebooks where you can misplace it.

12. Offer Additional Products (Load, School Supplies etc.)

Aside from goods, your sari sari store business can profit from additional products.

This can include:

• School supplies
• First-aid kits
• Medicines (Non-subscriptions)
• Ice candies and other desserts

Look for items that a lot of customers are looking for that you don’t already have.

Or you can create your own products that you can test out in your store!

Related: How to Earn Money in GCash (Ultimate Guide!)

13. Offer seats and shade

A lot of sari sari stores don’t know that having seats and shade can indirectly increase profit!

There are a lot of people that look for temporary resting places and what could be more convenient than your store?

This way, you can sell them refreshments and other goods that they may be interested in.

It doesn’t even need to be a wide area, just a simple chair and a shade will do in most cases.

Just make sure that your customers won’t sit in there forever because it could irritate your other customers.

14. Self-control

Before starting a sari sari store business, you need to warn your self and your family first.

Treat your store as a business and not as your own stockpile of goods.

To do this, separate your own grocery from your store’s goods.

And makes sure that you don’t get food from your sari sari store every so often.

If you’re the storekeeper, control the urge to eat your own stocks! You should always go to your store after eating so that you won’t be tempted.  

13 Tips to Manage A Successful Sari Sari Store

Plenty of Filipino households have a sari sari store. In fact, almost every street nowadays has at least one!

But why are there so many sari sari stores closing down? Is it because of low customers or others?

Whatever the reason is, you need to know these secret tips that only the highly successful sari sari store business owners know!

1. No to credits

“Palista nalang muna, bayaran ko sa katapusan.” These are the common phrase we use or hear all the time.

But did you know that the worst mistake you can do when starting your store is to allow store credits?

Yes, it may sound like a good way to build your reputation and business early on but it will damage you in the long run. Tons of businesses not just sari sari stores have turned to ruins because of this.

But if you’re still not convinced, here are the reasons why you shouldn’t allow this:

• Debts are hard to collect.
• You won’t have sufficient cash flow for your next purchases.
• Sometimes, customers may even hold a grudge when you collect their debts.
• There’s something called “bad debts” where there will always be a small percentage of money that you can’t collect.

If those still don’t scare you, I don’t know what will. So, if you’re planning to start your sari sari store business soon, don’t allow credits.

The First in, First Out principle is used by most businesses worldwide. But in small businesses such as sari sari stores, this isn’t common knowledge.

There are still some who don’t know this principle which allows them to lose money every week!

So, what exactly is this? How does it work?

It’s as simple as it sounds. This only means that you should sell the goods as you buy them. For instance, a customer is looking for a can of sardines. Then, you need to sell the inventory that is the oldest first.

Following this will ensure that your products will stay fresh and you won’t have any losses due to expired food.

3. Customer’s buying habits

Here’s another tip, if customers are looking for something but you don’t sell them, just say “It’s out of stock” instead of saying “we don’t sell it”.

Then, list down the item that they’re always looking for so you can buy it next time. This will ensure that you can better serve your customers and that they won’t look for another store.

This is something I observed that not a lot of sari sari stores in our area don’t implement this trick.

They would simply say that they don’t have those products which forced me to look for it in other stores. Even after some time, they still didn’t include the product in their store.

4. Start low

It’s easy to get excited especially if this is your first business. But it’s important to understand that you can start even with just hundreds in your pocket!

In fact, it’s recommended to do so in order to test your market first. Even if you don’t have a physical store at first, you can start by setting up something at the front of your house and going on from there.

Lots of people started this way and now they’ve grown their businesses to new heights.

5. Maintain the quality of your goods

Another thing to keep in mind is the quality of your products.

A sari sari store business isn’t a passive income business where you just leave it expecting it to earn in itself.

This is a business so you should treat it as such. This means keeping everything in top-notch quality. If you see some of your products that have gone bad, don’t try to sell them to your customers!

Also, this means keeping everything clean. I remember buying a canned product from a store which had dust all over it. Although it wasn’t expired, it’s still an indication that the storeowner doesn’t clean the store. This alone turned me off so imagine what it will do to your customers.  

6. Re-invest and Save your profits

For a lot of Filipinos, their sari sari stores are their first business that they venture into. Because of this, it becomes easy to adopt a mentality where you should reward yourself.

Buying things for yourself from your profits isn’t necessarily a bad thing. In fact, I encourage you to do so every so often. But if you’re just starting out, you need to re-invest your earnings into your business.

This might mean:

• Buying more goods
• Expanding your store
• Hiring a storekeeper

Aside from that, you should also keep a portion of your earnings as savings. This will allow you to survive on days where you are closed or are having losses.

7. Be friendly

It may not look like it, but your sari sari store is a business. Therefore, you need to treat it as such.

This means that you should not only establish your business as a means to sell products. Businesses are about serving your customers.

Greet, smile and talk to your customers as much as you can. You won’t notice but doing so will have a positive impact to your customers.

If you’re not the storekeeper, you should train them to be friendly. It doesn’t cost anything but it gives back so much!

I remember buying from a sari sari store nearby and the lady was so slow to assist me. She even ignored me and scrolled for about 30 seconds on her phone before noticing me. Needless to say, I complained about this to my family and they now know.

As you can see, bad experiences like these spread like wildfire especially in a small neighborhood.

Another thing you can do to provide exceptional customer service is by providing doorbells or service bells. Just by the cheap but quality ones you can find around.

And trust me when I say that your customers will thank you for this!

8. Offer promos

Sometimes, it doesn’t hurt to offer promos once in a while. This would even encourage your customers to buy more and spread the good news!

You can offer something like free P30 load for every 1 tray of egg purchased or others.

Whatever it is, be sure that you won’t be losing out on money. On the other hand, you also have to make sure that your customers will see the incentive enough that they will avail of the promo.

When your sari sari store business starts to earn more, you should consider scaling.

What I mean by this is expanding. You can try to physically expand your store to accommodate more goods.

Or you can set up a branch of your store somewhere else. But you need to take note of the location and the number of people that can be your potential customers.

But overall, you need to put up your store with the objective of scaling as you earn more. This will ensure that your business stays relevant.

10. Offer Tingi Tingi

Sari sari store started as a means for Filipinos to buy things in “tingi tingi”.

This means that they like to buy cooking oil in plastics and sold in P5, P10, or more. There are plenty of other items that you can offer in small packs. You just need to listen to the requests of your customers and you’ll get a good idea of what those are!

11. Get only 10% of profits for the day

Most sari sari store business owners just get a certain amount of the revenue they get per day.

For instance, they get a P400 sales one day and then they get P100 from that revenue. This may look fine at first glance but this is already 25% of the total profit you got on that day!  

What if you don’t have a lot of sales on a certain day, would it still be profitable to get P100?

What you should do instead is just get a certain percentage of your total sales for the day as your profit say 10%. So, if you earned P400 in a day, you should only get P40.

Doing so will allow you to have a steady flow of cash which will ensure the profitability of your business.

12. Seasonal Items

Another good thing to keep in mind as a store owner are seasonal products.

For example, when it’s summer, it’s a good idea to have a lot of soft drinks, ice, and other beverages you can sell. This will allow you to supply the huge demand for these products because they’re in “season”.

13. Offer deposits

Lastly, you should also put deposits on bottles. This is because those bottles cost you money!

Often times, customers would be too lazy to bring back their bottles to stores. So to combat this, you need to give them something in return such as some coin incentives.

Final Thoughts

There you have it, I hope these tips can help you start your own sari sari store business.

It may be a long road but as long as you keep in mind these things, your business will surely prosper!

How about you, do you own a sari sari store or are planning to? Share your thoughts below. I’d love to hear from you!

Read these next:

• Food Cart Business: Beginner’s Guide (Plus Top 9 Ideas)
• Pisonet Business: Everything You Need to Know!
• How to Start a Car Wash Business in the Philippines

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

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Hi, good day. I just scrolled up then I found you’re content. I empress the thought you’ve posted. I agree all of the reality of the words in the blog. I may not one of good talking or saying comments but I amazed from you’re economic business plan management. Hope to see more things around…happy mini sari-sari store owner.

Thank you very much for reading my posts! 🙂 Glad you liked it.

Keep posted, will write more blog posts soon!

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I rarely read a blog unless I happen to see something that pertains to something I am highly interested in or need knowledge on. With your great business plan and advices this idea might be a big help for me on how to manage my small sari sari store. 😊😊

Have a great day ahead and God bless

thank you mr. Writer

Thanks very much for the kind words! 🙂 I’m glad that this blog post can help you manage your sari sari store. Thanks and Godbless! Feel free to read the other helpful blog posts around here.

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If you are looking for a distributor, please feel free to contact me. I am from Suysing Commercial Corporation. Thanks!

We are in Cabuyao Laguna. Where are you located? We have had our store for a couple of years and recently increased our size.

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FILIPINO BUSINESS HUB

How to Start a Sari-Sari Store Business in 2023

A Sari-Sari Store is a small retail shop commonly found in the Philippines that sells a range of household and grocery items such as snacks, canned goods, beverages, and other necessities for everyday living. “Sari-Sari” in Filipino means variety or assortment – hence why this type of store is given its name due to its wide selection of goods.

Sari-Sari Stores have long been an integral part of the Philippine retailing landscape. Established as a means for Filipinos to earn income by selling goods directly to local communities, these stores have become an indispensable component of Filipino life – providing easy access to essential goods at a price everyone can afford.

This article’s goal is to provide a step-by-step guide on launching and operating a successful Sari-Sari Store business in 2023. It will address essential aspects such as the benefits of starting such an endeavor and the necessary steps to start one up. When readers complete this guide, they should have the knowledge to launch and operate such a venture successfully.

Table of Contents

Understanding the nature of sari-sari store business.

• Characteristics of Sari-Sari Stores Sari-sari stores are small neighborhood retail outlets that sell snacks, canned goods, toiletries, and other household essentials at competitive prices. Often located in residential areas or along busy streets for easy accessibility to the communities they serve, these shops are known for providing convenient service at competitive rates with personalized attention from staff members who know exactly what customers need.
• Target Market and Customer Profile A sari-sari store business typically targets its target market as the local community within its immediate surroundings, serving families, students, commuters, and others who need quick and convenient access to necessities. Therefore, understanding customer needs and preferences is integral for success in any sari-sari store business venture.
• Advantages and Disadvantages of Sari-Sari Store Business One significant advantage of starting a sari-sari store business is its low start-up costs, making it an accessible and viable option for aspiring entrepreneurs. Furthermore, their products meet daily needs within their communities, putting them in constant demand. Unfortunately, earnings potential in such businesses is generally limited as profit margins tend to be low; in addition, they face stiff competition from similar shops nearby.

Aspiring entrepreneurs who plan to open a sari-sari store business in 2023 should fully understand its unique characteristics to increase their chances of success. We will explore below why opening such an enterprise would make for a sound investment decision.

What Type of Business is Sari-Sari Store?

• Micro-Enterprise Business Sari-sari stores can be classified as micro-enterprises because they are generally small-scale businesses operated independently by families or small groups of people. Owners usually take an active part in running the store, from purchasing inventory to overseeing sales and finances.
• Retail Business Sari-sari stores can also be considered retail businesses because they sell goods and products directly to consumers; however, unlike larger chains, they typically provide a limited selection of items that meet immediate community needs.
• Community-Based Business Sari-sari stores are an integral part of Philippine culture and communities nationwide. Not only are they an economical source of everyday necessities, but they’re also social hubs where locals gather, chat, and exchange news and stories of life happening nearby – thus becoming more than simply businesses but an integral component of life itself.

In the next section, we will discuss why the sari-sari store is a good business and what makes it unique.

Why Sari-Sari Store is a Good Business Venture?

Sari-sari store businesses have long been attractive for Filipinos looking to launch small-scale businesses. Here are some reasons why starting such an endeavor could be wise:

• Low Capital and Operating Costs One of the primary benefits of running a sari-sari store business is its minimal initial capital requirement and operating costs; you can start up your store for just a tiny investment and gradually build your inventory and customer base over time. Furthermore, operating costs are minimal as stores can usually run from their owners’ homes or rented spaces in their communities.
• High Demand and Profit Margin Sari-sari stores fulfill daily needs within their communities, making them highly sought-after businesses. Customers come in to purchase necessities like food, toiletries, and household products at competitive prices that provide higher profit margins than retail prices in markets.
• Flexibility and Adaptability Sari-sari store business can offer tremendous flexibility and adaptability; you can quickly adapt your inventory based on customer demand and the season and offer additional services like cellphone loading or bill payment to attract more customers.
• Social and Economic Impact Sari-sari store businesses also make an invaluable contribution to the community by creating employment opportunities and contributing to the local economy. Furthermore, it fosters an atmosphere of belongingness by serving as a gathering point for neighbors and friends alike.

Given all these considerations, it is no surprise that the sari-sari store business remains an attractive choice among Filipinos seeking to start their venture.

Starting Your Own Sari-Sari Store Business

Market research and planning.

• Conducting a feasibility study to determine the potential profitability of the business
• Identifying your target market and analyzing their buying behaviors
• Researching your competitors and their prices, products, and services
• Creating a business plan that outlines your goals, strategies, and financial projections

Business Registration and Permitting

• Registering your business with the appropriate government agencies, such as the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC)
• Obtaining the necessary permits and licenses, such as Barangay Clearance , Mayor’s Permit, and BIR Registration
• Complying with the tax and labor laws and regulations

Choosing a Location and Setting Up the Store

• Selecting a strategic and accessible location that has high foot traffic and minimal competition
• Renting or leasing a space that is suitable for your store’s size and layout
• Designing and renovating the store’s interior and exterior, including the shelves, displays, signage, and lighting
• Installing the necessary equipment and facilities, such as a point-of-sale (POS) system, cash register, refrigerator, and security system

Stocking and Inventory Management

• Identifying the best-selling and profitable products that cater to your target market’s needs and preferences
• Establishing relationships with reliable and quality suppliers who can provide you with consistent and affordable inventory
• Maintaining a sufficient inventory level and avoiding overstocking or understocking
• Implementing an inventory management system that tracks your sales, stock, and orders

Pricing and Profitability

• Setting competitive and profitable prices that reflect the market demand, product quality, and overhead costs
• Calculating the cost of goods sold (COGS) and the gross profit margin (GPM) to determine the profitability of each product
• Implementing pricing strategies, such as bundling, discounts, and promotions, to attract and retain customers
• Regularly review and adjust your prices and profitability based on market trends and competition.

Customer Service and Marketing

• Providing excellent and personalized customer service that fosters loyalty and word-of-mouth referrals
• Offering a variety of payment options, such as cash, credit cards, and mobile payments, to accommodate different customer preferences
• Creating a brand identity and value proposition that resonates with your target market’s values and aspirations
• Developing a marketing plan that includes various channels, such as social media, print ads, and flyers, to reach your target market and promote your products and services.

Challenges and Solutions in Sari-Sari Store Business

• Competition and Market Saturation While the sari-sari store business can be profitable, it has challenges. One of the biggest challenges is the high level of competition and market saturation. In most areas, several sari-sari stores are already operating, making it difficult for new businesses to enter the market. To overcome this challenge, aspiring entrepreneurs should consider offering unique products or services, improving the store’s location or accessibility, and implementing effective marketing strategies to attract customers.
• Security and Safety Concerns Sari-sari stores are often located in areas with high crime rates, making them vulnerable to theft and robbery. To address this concern, store owners should invest in security measures such as CCTV cameras, alarm systems, and strong locks. They should also ensure that the store is well-lit and visible from the street to deter criminals from targeting the store.
• Financial Management and Record-Keeping Financial management is a crucial aspect of any business, including a sari-sari store. Store owners should keep accurate records of their sales, expenses, and inventory to track the financial health of their business. It is also essential to create a budget and stick to it, as well as to monitor cash flow to ensure that the business has sufficient funds to operate and grow.
• Innovation and Diversification Another challenge for sari-sari store owners is to keep up with changing consumer demands and trends. To stay competitive and relevant, store owners should consider introducing new products and services, expanding their product lines, and adopting innovative technologies such as cashless payment systems. Diversification of the business, such as offering additional services like bill payments or reloading services, can also attract more customers and increase revenue.

Final Thoughts

Starting a sari-sari store business in 2023 is an excellent decision for entrepreneurs seeking to enter the marketplace with minimal capital and high potential return. This business model has long been part of Filipino culture, thriving despite challenges and competition.

In this article, we explored the nature and characteristics of the sari-sari store business and its advantages and disadvantages. Additionally, we covered what type of business venture this type represents and why it would make an excellent venture.

To successfully open a sari-sari store business, you must conduct market research and planning, register the business with all necessary permits, select an ideal location, manage inventory and pricing correctly, offer superior customer service, and market your store effectively to bring customers.

Although starting a business can provide plenty of rewarding opportunities, it also presents its unique challenges, including competition, safety and security concerns, financial management needs, innovation needs, and innovation processes. But with the proper mindset, skillset, and solutions in place, you can overcome these hurdles to find business success.

Running a sari-sari store business is an ideal opportunity for entrepreneurs looking for entrepreneurial ventures. Through hard work and determination, you can establish a thriving enterprise that meets your family’s needs and contributes to economic development in your community.

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• How To Start a Sari Sari Store Business In The Philippines: A Beginner’s Guide

By   Yesh Quijano

May 11, 2023

Key Takeaways:

• Starting a sari-sari store business requires careful planning and understanding of what your local market wants. Creating a business plan, setting a budget, picking the right location, and choosing the goods to sell are all important first steps.
• To run a sari-sari store business legally, you must get the right business permits and sign up with the Bureau of Internal Revenue (BIR). Even small companies have to pay taxes.
• The success and image of a sari-sari store can be greatly improved by putting customer service first, learning about your customer’s buying habits, and hiring trustworthy and skilled storekeepers.
• Effective financial management is important for a sari-sari shop’s long-term success and growth. This includes setting competitive prices that still make money, keeping accurate business records, and limiting customer credit.

You know you’re in the Philippines when you must navigate through a maze of sari-sari stores just to reach your destination. It’s like a real-life version of Pac-Man, but you’re dodging sachets of shampoo and snack foods instead of eating pellets.

But kidding aside, the sari-sari store is more than just a ubiquitous presence in the Philippines – it’s a testament to the ingenuity and resourcefulness of Filipino entrepreneurs, who have turned these humble mom-and-pop shops into a cornerstone of local commerce and community life.

Opening a small retail store business is more than just starting a small business venture.

It’s also about joining a community and carrying on a long-standing tradition.

These one-stop shops are common in every neighborhood. They sell everything from snacks to things you need for your home.

If you want to start this small retail outlet, you’re getting into a business that will still be useful even as shops and online shopping become more popular.

This article will tell you everything you need to know about starting a sari-sari store.

It might seem hard to start a sari store business, but with the right help, your business can do well in this market that never goes away.

What is a Sari-sari Store?

A sari-sari store is a mini store in the Philippines close to where people live.

The name of these shops comes from the Tagalog word “sari-sari,” which means “variety,” and they live up to their name by selling a wide range of goods.

A sari-sari shop has a little bit of everything, from food and drinks to toiletries and things you need around the house. Most of the time, these shops are run out of a tiny room in the store owner’s house.

This makes them an important part of the community. People go there to buy something quickly and easily without going far.

Pros and Cons of Running a Sari Sari Store Business

• It’s easy to get started. The sari-sari shop is a simple business idea that doesn’t cost much and can be set up in just a few days. It’s a great opportunity for people who want to learn more about business and maybe open a bigger store in the near future.
• Save money on rent and wages. Operating a store in your home or getting the help of family members can save you money on employee wages and rent.
• It helps people connect with each other in the neighborhood. Families in their area go to the neighborhood sari-sari store for most of their everyday needs. This lets you build longer-lasting relationships with your neighbors.
• There are a lot of rivals. Due to how easy it is to start a sari-sari business, there can be a lot of competition from other shops, convenience stores, and grocery stores. The growth of your business needs to find ways to keep customers.
• Sari-sari stores’ main selling point is convenience, so they keep their profit margins low to stay in business. Since they don’t sell things in large quantities, they need repeat customers to keep making money.
• Reputation for making and/or selling low-quality goods. People often think that sari-sari shops sell low-quality items. This may be the case because some store owners don’t keep track of their inventory well. For example, they might leave products in the sun or air or forget to take things that have already gone bad off the shelves. But this problem can be lessened with careful handling and inventory control.

Here’s Your Beginner’s Guide on how to Start a Sari-Sari Store

Develop a business plan

A good plan is the foundation of every business that does well. To open a sari-sari store, you should create a business plan first. This includes the following:

• Finding your target market
• Figuring out how much money you could make
• Making both short-term and long-term goals

Think about what makes your store different. What will make your sari stand out ?

Business capital

Next, look at how much money your business has.

This should be enough for the first few months of inventory, store setup, and running costs.

Don’t forget that it’s important to start with a reasonable budget that balances your goals with what you can afford right now.

If you don’t have much money to start the business, stock up on things that sell quickly.

As your store grows and makes more money, you can offer a broader range of products.

Location and Store Design

Find Location

One of the important factors, if you want to start a sari-sari business, is its location.

Where you put the store is very important. Make sure that it is easy for target customers to find.

The best place would be near a school, a church, or a neighborhood with many people walking by.

Remember that one of the best things about a sari-sari is that it must be easy to find.

Design your store and choose a store name.

When designing a sari-sari store, you should make it simple and useful. Your store should be neat, well-lit, and easy to find things in.

Make sure that your goods or products are easy for customers to see.

Choose a name for the store that is catchy, easy to remember, and shows the spirit of a sari-sari store.

The name of your store is the first thing people see, so make sure it’s good.

Product Management

Identify the products you will sell

Start by figuring out what items people want in your area. These are usually food, home items, and personal care items. Your choice should be based on what your customers need right now.

Find legitimate suppliers

It’s important to find reliable suppliers for your goods. They should give you competitive prices without lowering the quality of their products.

Building good relationships with your suppliers can also lead to better deals and terms, which benefits your business too.

Make Sure to Have Enough Stocks Always

It’s important to ensure that your sari store always has the necessary items. An empty shelf could result in a missed sales opportunity, so it’s important to check on your stock regularly and restock when you need to.

Maintain the quality of your goods.

Make sure the products you sell are of good quality. Check the expiration dates and store things correctly to keep them in good shape. Remember that your business can’t succeed without the trust of your customers.

Offer Unique Products to Sell

To make your sari-sari shop stand out, you might want to offer unique products that suit your customers’ interests. This could include things made in your area or that are hard to find and may not be sold in bigger shops.

Seasonal Items

Offer things that are appropriate for the season or holiday. Whether you sell fireworks for New Year’s, chocolates for Valentine’s Day, or school supplies for back-to-school, these things can help you make more money all year.

Hire the right storekeeper.

The storekeeper is an important part of a sari-sari store, whether you run it yourself, a family member. or hire someone else.

This person must be trustworthy, dependable, and focused on customers’ needs. They should know the basics of managing goods while handling cash responsibly.

Keep in mind that the person you hire to run your store is the face of your business to your customers. This means that their behavior can greatly impact how the community sees your store.

Set prices for the products

Setting the right item price is key to making your sari-sari store successful. Your expenses need to be competitive and make you money.

You need to consider how much it will cost to buy the things from your supplier, how much it will cost to run your business, and the average market price in your area.

Remember that small retail stores often sell things in smaller amounts, called “tingi,” so your prices should consider this.

Lastly, it’s important to keep prices the same, but you should also be open to change based on market trends and changes in provider costs.

Legal Compliance:

Business permits.

A sari-sari store must follow the rules just like any other business. Get the business permit as well as additional licenses you need from the government in your area.

This includes a Barangay Clearance, a Mayor’s Permit, plus other necessary local paperwork. Getting these licenses ensures your business runs legally and shows your customers that you are a real business.

Keep up with any changes to local rules or requirements to avoid fines and keep things running smoothly with your business.

Registration of Small Businesses in the BIR

You need local permits to register your sari-sari business with the Bureau of Internal Revenue (BIR). This is required for tax reasons.

The BIR will give you a Certificate of Registration and legal receipts you’ll use daily. Remember that paying your taxes properly and on time is part of running a legitimate business.

It also brings in money to the country, which is used to pay for public services and infrastructure. So make sure you know your tax responsibilities, and talk to a tax expert or the BIR if you have questions.

Customer Service

Quality customer service

One key to a successful sari store is delivering quality customer service. Every time customers come into your store, they should feel welcome and important.

Please pay attention to what they want, talk to them in a friendly way, and handle any problems or complaints promptly and professionally.

Giving your regular customers personalized service, like remembering what their favorite goods are or letting them know about important events in their lives, can also make a big difference to your business.

Remember that in a sari-sari store, you’re not just selling things; you’re also building relationships with your customers, and good customer service is the foundation of those relationships.

Financial Management

It’s best to start small when opening a sari-sari store. This means putting most of your attention on a small number of high-demand goods. As your sari makes more money, you can slowly add more things.

Low sales, low volume

This principle says you shouldn’t keep much of an item in stock if it’s not selling well. This can reduce costs and help you make the most of your space for things that is more popular and sell quickly. This approach can help sari-sari store owners optimize inventory management and profitability.

Say no to credits

It’s common for sari-sari shops to give loyal customers credit, but keeping track of this carefully is important. Too much praise can make it hard to get money when needed. Remember that your shop is a business, not a bank.

Accounting in business

It is very important to keep accurate and update cash records. This will help you track how well your store is doing, keep track of your stock, and make smart choices about where to invest in the future.

Get only 10% of profits for the day.

One smart way to handle your money is to use only 10% of your daily profits for yourself and put the rest back into the business. This will help your business grow in the long run.

Customer’s buying habits

Understanding your customers’ buying habits is key to being a great retailer. In a sari-sari store, this could mean knowing which items are often bought together, what times certain items sell the most, or what customers like.

Pay attention to these patterns, and change your stock as well as your service to fit. For example, if you see that people often buy coffee and sugar together in the morning, ensure you have plenty of both during that time.

By making your products fit how your customers usually buy, you can boost sales and make your customers happier.

Is Sari-sari Store Considered a Small Medium-size Business (SMB)?

Yes, this kind of business is a Small, Medium-sized Business (SMB) in the Philippines. SMBs are businesses with a small to medium number of employees and a low sales volume.

Even though a sari-sari store might be small in size as well as the number of workers, it is very important to the local economy.

As a SMB, a sari-sari shop can help the local economy by creating jobs, making life easier for the community, in addition to boosting economic activity in the area.

A sari-sari store is not exempted from Business Tax.

Not all sari-sari stores are exempt from business tax. If the business qualifies as a Marginal Income Earner (MIE) or generates less than Php 100,000 in annual income, it is not subject to income tax (RMC No. 7-2014).

The activities of MIEs should focus primarily on subsistence or livelihood. Examples of MIEs include agricultural growers or producers, direct sellers to ultimate consumers, small sari-sari stores, small carinderias or turo-turo, and drivers or operators of a single-unit tricycle.

It’s important to note that MIEs are not subject to value-added tax (VAT) and other percentage taxes.

However, sari-sari stores that do not qualify as MIEs are still subject to either percentage tax or value-added tax, depending on their Certificate of Registration (COR). You have several options to minimize the tax burden on your sari-sari store.

Register your sari-sari store business as a Barangay Micro Business Enterprise (BMBE) or opt for 8% gross sales or receipts tax. Alternatively, you may pay a 1% tax under the CREATE Law.

It’s crucial to consult with a tax professional or the Bureau of Internal Revenue (BIR) about the business.

Tax Rate for Sari Sari StoreBusiness

Under the TRAIN tax law, people whose yearly income is less than Php 250,000 do not have to pay income tax. So, owners of sari-sari stores whose incomes are below this level will also not have to pay income tax.

Depending on their circumstances, sari-sari shops may still have to pay a percentage tax (3% of total gross sales) or a value-added tax.

Consider registering your sari-sari shop as a Barangay Micro-Business Enterprise (BMBE) so that you can pay less or no individual income tax. This registration can help you pay less tax and still run your sari-sari shop in accordance with Philippine tax rules.

Talk to a tax expert or the Bureau of Internal Revenue (BIR) to ensure you fully understand your unique tax obligations together with choosing the best tax strategy for your sari-sari store business.

Final Thoughts

Sari-sari stores may help the community and make money. It may also boost the economy.

You must be diligent, plan well, and know your target audience.

Be adaptable, attentive to clients’ wants and buying habits, and up-to-date on local legislation and tax laws.

Your small retail outlet can last if you manage your money and treat customers well.

If you’re wondering how to start a sari-sari store business, analyze the market, get the permits and licenses you need, build a sound business strategy, get to know your suppliers, and provide exceptional customer service.

These recommendations will help you develop a successful sari-sari store business that benefits you and others.

Sari-sari stores are more than one-stop shops. It’s a community staple and a monument to Filipino entrepreneurship!

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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9 keys to your sari-sari store business success.

Many smaller sari-sari store vendors establish their business to augment their family income and provide a direct supply of household necessities as among the benefits of setting up shop. No wonder many such shops have dwindling supplies, empty shelves, and discontinued the business after less than a year. Unpaid customer debts or amounts consumed by the family have been the usual culprits.

If you plan to stock food supplies bought in bulk at discount for family use, you might as well stock it at the storeroom and don’t bother setting up the sari-sari store because starting a business with such a mentality is doomed to fail. If you have a similar mindset, perhaps you need more discipline in running the business, so cash capital to replenish supplies will be available, and the store can sustain its operations.

But there are also small sari-sari stores that thrive — someone’s store in Cebu earns P2,000 a day even with only P14,000 capital money — thanks to the dedication of their owners.

The following tips are practical and should be a reminder to small business owners, not only sari-sari store operators. They are characterized as focusing on the business and practicing discipline.

Table of Contents

Treat the store as if it’s not yours

As you work for the shop owner , you will be careful with the day’s inventory, cash flow, and earnings. You’ll have to do accounting and ensure that cash on hand matches the value of items sold. If you treat it as your store, you or other family members can easily take anything to consume and use without being liable (not paying) for it.

It may be an excellent convenience for the family’s needs, but it’s a terrible model to adopt as a business. As a result, your shop supplies will eventually dwindle and be unable to get replenished because your cash flow is missing its revenue for the unpaid items you or other family members took.

Therefore, always think as if you’re working for an employer and you’re accountable for the sales revenue. That way, you’ll be motivated to get things right day after day without fail.

Start selling with the basic needs of a neighborhood

Starting your neighborhood sari-sari store , if you have small capital money, say less than P10,000, you aim to sell your goods and them fast. One reason is that unless you do market research, you don’t know precisely what people nearby buy frequently. For example, if the store is near the church, perhaps you can include candles and matches, and if in the middle of a subdivision, cellphone loading, canned milk, and laundry powder.

This approach also helps roll your capital faster and allows you to grow your business and quickly establish a customer relationship.

A quick list of these items may include the following:

You can then expand your product range once you have established a trend of popular products and often-asked ones that are not yet displayed. You may also list items you don’t currently sell (see #4 on how to deal with customers on this matter) and consider them for your next round of replenishing supplies.

Take only profits of the day

With a plan to grow the business and roll part of your earnings for capital expenditure, it’s prudent to be disciplined on how you account for your day’s revenues. If, on average, your markup price is 10% of goods you sell minus expenses — transportation and labor costs over a certain period — it’s not too difficult to calculate how much your profit is on a given business day.

So if you earn P1,500 daily, you can only take 10% off P1,500 (P150) as profit and reserve P1,350 to replenish your store inventory. Taking only profits not only preserves the rest of your money to restock your inventory, you also realize how big or small, your profit is and be more motivated to improve your earnings.

It’s “Out of stock,” not “We don’t sell them”

You may be managing a “sari-sari” store, but, understandably, it’s not that literally “sari-sari”;  it cannot sell everything, from certain shampoo brands to milk varieties. But instead of saying “we don’t sell them” or implying that your store is far from a complete one-stop-shop, which creates an impression that other items this customer might look for later are unavailable, tell customers you ran out of stock.

Of course, if this item is not expected to be sold from your sari-sari store known for snacks, condiments or toiletries, such as spark plugs or USB chargers, you can tell the customer you don’t sell them, so they won’t expect they’ll be available on a future store visit. Otherwise, note if such missing items should be part of your next products to replenish your shelves.

Pack certain products in smaller quantities/portions

Some customers are used to buying smaller pieces (tingi-tingi in local dialect) instead of standard sizes — she wants P5 cooking oil instead of the P60 1-liter pack. No wonder shampoo, powdered detergent, and powdered milk packaged in sachets and tipid packs are often found in neighborhood sari-sari stores.

Some of these items can be repacked into smaller pieces so they can be sold cheaply. This includes P5 packs of soy sauce, garlic, or cooking oil. While pepper, garlic, and similar items are also sold prepacked in smaller pieces at supermarket dealers, your profit margins may become very small. A better option might be buying bulk from your wholesaler instead of the supermarket to get better deals.

Some of the items you can pack in smaller quantities.

• Cooking Oil

However, it also takes time and additional equipment (plastic containers, weighing scales, etc.) to prepare them, so ensure you have enough resources to do the job while operating the store.

Ensure sari-sari store product quality

As many of the items are fast-moving consumer goods, the shelf life may also be limited. So make it a point to review the expiry date of your products. Make sure that the first to arrive in your shop are also the first to be disposed of. To increase shelf life, store certain items in the desired environment.

• Frozen meat has to be stored at freezer temperatures of around -18C.
• Do not expose goods to direct sunlight — chips, biscuits,
• Prevent the infestation of ants on sugar and sweet snacks by using repellant chalk.
• Avoid accidentally puncturing the seal of powdered goods should you use push pins or thumbtacks to display items like powdered milk, 3-in-one coffee, or instant noodles. If you can, don’t use push pins, staples, or thumbtacks.
• Immediately discard chips that lose crispness, rotten tomatoes from the fresh ones or any other unpleasant items to a customer’s eyes (and taste).

Take note of seasonal items and upsell

Some products are sold more quickly during specific periods of the year. During the rainy season, you may stock up more on instant noodles, champorado mix, or a wider variety of choco and coffee products. Also, note that people tend to be lazy and decide to skip a visit to the market for their usual grocery shopping, so anticipating weather patterns can yield even more profits.

During fiestas, you can stock new cases of beer, soft drinks, packs of spaghetti sauce, cheese, or any other items that might run out in a household as visitor numbers swell. Remember to charge deposits for bottles to ensure they have compensated adequately once they are not returned.

For hot summers, expand your cold drinks on offer. Besides your steady supply of soft drinks, add energy drinks, ice candy, lemonade, and other cold refreshments your target customers look for.

If customers aren’t used to seeing these products on your shelf, you can promote them even when customers come to buy another item. If they purchase the usual daily two-kilo rice supply, upsell them with new varieties that are highly relevant and may even bring them more value.

No credits. Period.

Without even you mentioning it, the store’s premises should shout the slogan to discourage customers from taking goods without paying upfront. Every earned peso counts on your daily profits in such a low-margin shop.

Such a habit of allowing customers to take your product on credit will drive you out of your sari-sari store business .

You might hear rude comments from some people who are used to this habit, but for the sake of the survival of your sari-sari store business, it makes a lot of sense to discourage credit. Without capital money to buy fresh inventory, you cannot fill the empty shelves, depriving others of buying from your store and instead switching to a competitor.

Be friendly to all your customers.

It’s not purely a business relationship between the sari-sari store owner and his or her customers. There should also be a personal touch. After all, they are mostly your neighbors who patronize your business, so small talk should be fine.

Put a genuine smile on your face to express appreciation for their business, no matter if it’s just a piece of candy bought by the naughtiest boy around. A friendly attitude pays off big, uniquely when customers cannot distinguish price differences between you and your competitors.

Always be ready to serve them. Customers are typically put off if the storekeeper is away from the store and needs to shout to get her or his attention.

Being friendly does not mean you’ll fall for their whims: Pwede pautang? Walang tawad, kumare? Say thank you and ensure they get the right product quantity/volume, correct spare change, if any, and served promptly even with a crowd of customers around.

Does a sari-sari store earn profit?

The answer to the question depends on who you ask. Ideally, yes, that is why they exist and continue to serve the neighborhood. Your sari-sari store profit may be small at the beginning. But once you track your revenue growth, you’ll know which items sell fast, and which items are most profitable and focus on them by perhaps supplying more stocks or placing them on the more prominent shelf.

Meanwhile, you’ll also know which items don’t sell or have minimal markup and perhaps decide not to put them as priority merchandise. Sari-sari store margins are often thin.

Therefore, to keep the business growing, focus on products that sell faster, so no matter if the profits are minimal, the money keeps “rolling” and allocated to replenish new stocks. If fresh capital from loans is infused, then much better. But only do so if the loan interest is lower than your markup.

Otherwise, you might get caught in a 5-6 loan scheme, a vicious cycle that could shut down your business as you focus more on repaying loans and less on growing your business.

No matter the size of your sari-sari store business, there are always challenges — competing shops nearby, lack of inventory skills, neighbors who want credits, and inflation.  But the above tips should help to guide you to grow your business, despite these challenges.

• How Much Does a Sari-Sari Store Earn?
• 10 Benefits of Managing Your Own Sari-Sari Store
• Why Sari-Sari Store Business is a Bad Idea
• How to Register Your Sari-Sari Store Business
• How to Chase Sari-Sari Store Debts

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How to Start a Sari-Sari Store

Do you dream of starting your own business but don't know where to begin? Have you considered starting a Sari-Sari store?

Before we dive into the nitty-gritty of starting your own patok na negosyo in the form of a Sari-Sari store, let's first define what it is.

A Sari-Sari store is a small, family-owned convenience store that can be found on nearly every corner in the Philippines. These stores offer a variety of products at affordable prices and are a staple of Filipino culture.

If you're interested in starting your own Sari-Sari store, keep reading our comprehensive guide on how to get started.

Planning Your Dream Sari-Sari Store

The first step in starting your own Sari-Sari store is to do some planning. This includes identifying your target market and location, determining your capital and budget, and researching the legal requirements and permits needed to start a business.

When it comes to identifying your target market, consider the location of your store. Is it in a residential area or near a school? Knowing your target market will help you determine what products to sell and how to market your products. Finally, research the legal requirements and permits needed to start a business. This includes obtaining the following:

• Business permit
• Registering your business
• Clearance from local government agencies

Setting up Your Own Sari-Sari Store

Once you've completed the planning stage, it's time to set up your store. You'll need to find a suitable location, purchase the necessary equipment and inventory, and set up a system for accounting and inventory management.

When choosing a location for your store, consider foot traffic and accessibility. Is your store easy to find? Is it in a visible location? These factors can greatly impact the success of your business.

Next, purchase the necessary equipment and inventory. This includes shelves, refrigerators, cash registers, and of course, products to sell. Don't forget to keep an eye on the expiration dates of products and restock items as necessary.

Finally, set up a system for accounting and inventory management. This will help you keep track of your sales, expenses, and inventory. Consider using technology such as point-of-sale systems to make this process easier.

The Cost of Starting a Sari-Sari Store

The cost of opening a Sari-Sari store in the Philippines can vary depending on a number of factors, such as location, size, and the types of products you plan to sell.

Here are some of the costs you can expect to incur when starting a Sari-Sari store:

• Rental fees for your store location
• Initial inventory of goods to sell
• Cost of permits and licenses required to operate a business
• Display racks, shelves, and other store fixtures
• Cash register or point-of-sale system
• Security equipment such as CCTV cameras
• Utility bills such as electricity, water, and internet
• Staff salaries (if you plan to hire employees)

The amount of capital needed to start a Sari-Sari store can range from as low as ₱10,000 to ₱50,000 or more, depending on the size of your store and the type of goods you plan to sell. It's important to carefully consider your budget and plan your expenses to ensure that you have enough capital to cover your initial costs and sustain your business until it becomes profitable.

Starting Your Own Sari-Sari Store With SariSuki

Through SariSuki , you can start your own Sari-Sari store without shelling out a large capital to invest. SariSuki is here to help you out in not only building your own business, but also your dreams!

Look no further than SariSuki! As the first and largest Philippine-based community-selling platform, SariSuki aims to uplift communities by improving access to quality and affordable essential goods. 

With a 5,000-strong network of Community Leaders (CLs), SariSuki is dedicated to creating a more efficient Philippine supply chain ecosystem by directly sourcing produce from farmers and manufacturers. And now, you can become a part of this exciting mission by starting your own digital grocery store as a SariSuki Community Leader. You can have the opportunity to build a better Philippines today with us!

If you want to start your own Sari-Sari store using SariSuki, here are the steps you can follow:

• Visit the SariSuki website at https://www.sarisuki.com/ and click on "Become a C ommunity Leader" at the top right corner of the page.
• Fill out the registration form with your personal information and provide a valid government ID.
• Attend the Community Leader training conducted by SariSuki to learn more about the platform, its products, and services, and how to manage your online Sari-Sari store.
• Once you have completed the training, you can start ordering products from the SariSuki website and receive them through their distribution network.
• Create an online store on SariSuki where you can display your products and manage your inventory.
• Promote your online store through social media and other means to attract customers and increase sales.
• Manage your store by monitoring your inventory, processing orders, and delivering products to your customers.

By using SariSuki, you can leverage its platform to access a wide range of quality products, connect with other Community Leaders, and take advantage of their distribution network to receive your products easily. Starting your own Sari-Sari store through SariSuki can be a convenient and cost-effective way to become an entrepreneur and promote community development near you.

Marketing and Promoting the Store

Now that your store is up and running, it's time to start marketing and promoting it!

Develop a unique selling proposition that sets your store apart from others in the area. Consider offering promotions or discounts to attract customers. And don't forget about social media. Use it to promote your store and connect with potential customers. Promoting your Sari-Sari store is essential to attract customers and increase sales. Here are some ways to promote your Sari-Sari store in the Philippines:

• Word-of-mouth: Spread the word about your store to friends, family, and acquaintances. Encourage them to recommend your store to others.
• Social media: Use social media platforms like Facebook, Instagram, and Twitter to promote your store. Share photos of your products, post updates about sales and promotions, and engage with your customers.
• Flyers and posters: Distribute flyers and posters in your local community. Place them in public areas like community centers, schools, and markets.
• Discounts and promotions: Offer discounts and promotions to attract customers. For example, you could offer a discount for first-time customers or a buy-one-get-one-free deal on certain products.
• Partner with other businesses: Partner with other businesses in your community to promote each other's services. For example, you could partner with a nearby bakery to offer a discount on bread when customers buy from your store.
• Online marketplaces: Consider selling your products on online marketplaces like Lazada, Shopee, or SariSuki to reach a wider audience.
• Loyalty programs: Implement a loyalty program to reward customers who frequently purchase from your store.

By using a combination of these methods, you can effectively promote your Sari-Sari store and attract more customers.

Managing and Operating Your Sari-Sari Store

Managing and operating a Sari-Sari store can be a challenging task. Hire and train employees if necessary, and implement a system for restocking and inventory management. Keep records of sales and expenses and regularly analyze your financial reports to see where you can make improvements.

Here are other things to consider for your Sari-Sari store management and operations:

Managing and operating a sari-sari store requires effort and dedication. Here are some important things to keep in mind:

• Keep track of your inventory: It's crucial to monitor your stock levels to ensure that you don't run out of popular items. Create an inventory system and regularly update it to know which items are selling well and which ones need to be restocked.
• Keep your store clean and organized: Maintaining a clean and organized store creates a good impression on customers and encourages them to keep coming back.
• Provide excellent customer service: Treat your customers with respect and kindness, and make sure to address their needs and concerns promptly. Good customer service can lead to loyal customers who will recommend your store to others.
• Set reasonable prices: Research the prices of the products you want to sell and set your prices accordingly. Be mindful of your profit margins, but also keep in mind the purchasing power of your target market.
• Keep up with trends: Stay updated on the latest products and trends in your area to attract more customers. Offer new and exciting items in your store to keep customers interested.
• Manage your finances: Keep track of your income and expenses to ensure that you are making a profit. Set a budget for your store and stick to it.

You Own Sari-Sari Store Awaits!

Starting a Sari-Sari store may seem overwhelming at first, but with the right planning and execution, it can be a profitable business venture. By conducting market research, choosing the right location, obtaining the necessary permits and licenses, determining your product line, setting your prices, advertising your store, and keeping it clean and organized, you'll be well on your way to running a successful Sari-Sari store.

Frequently Asked Questions

How much is the cost of opening a sari-sari store in the philippines.

The cost of opening a Sari-Sari store business in the Philippines can vary depending on several factors such as location, size, and inventory. Generally, the cost can range from around PHP 10,000 to PHP 50,000 or more. This can cover expenses such as rental fees, licenses and permits, initial inventory, and basic equipment such as shelves, a cash register, and a refrigerator. However, the actual cost can also depend on whether you plan to start a physical store or an online one. Starting an online Sari-Sari store through SariSuki as a Community Leader, you can enjoy building your own on a lower cost and less requirements.

How do I promote my Sari-Sari store?

There are several ways to promote your Sari-Sari store. These include word-of-mouth, social media, flyers and posters, discounts and promotions, partnering with other businesses, online marketplaces, and implementing loyalty programs. These methods can help attract more customers and increase sales for a Sari-Sari store.

What products should I start selling in my Sari-Sari store?

The products you should sell in your Sari-Sari store can depend on several factors, such as your location, target market, and competition. However, here are some popular and essential products that you can consider selling in your Sari-Sari store in the Philippines:

• Snacks and chips: This can include popular local snacks like chicharron and choco pie.
• Cigarettes: Selling cigarettes is a common and profitable item in Sari-Sari stores.
• Drinks: This can include bottled water, soft drinks, and energy drinks.
• Basic household items: This can include soap, shampoo, toothpaste, laundry detergent, and toilet paper.
• Confectionery: This can include chocolates, candies, and gum.
• Personal care items: This can include sanitary napkins, diapers, and tissue paper.
• Canned goods: This can include popular Filipino canned goods like corned beef, sardines, and tuna.
• Rice and other grains: Selling rice is also a staple in Sari-Sari stores.
• Mobile load: Selling mobile load credits can be a convenient service for customers.
• School and office supplies: This can include notebooks, ballpens, and pencils.

These are just some examples of products you can sell in your Sari-Sari store. It is also essential to assess the needs of your community and adjust your inventory accordingly.

How can I start my own Sari-Sari store using SariSuki?

To start a Sari-Sari store using SariSuki, you need to visit our website and click on "Become a Community Leader" to fill out the registration form and provide a valid government ID. Attend our training to learn how to manage your online store, order products from their website and receive them through our distribution network. Create an online store, promote it through social media, manage your store by monitoring inventory, processing orders, and delivering products to customers. SariSuki offers a convenient and cost-effective way to become an entrepreneur and promote community development.

What are the most important things that I should remember when starting my own Sari-Sari store?

Here are some important things to remember when starting your own Sari-Sari store:

• Know your market: Understand the needs and preferences of your target market, such as the products they need and the prices they are willing to pay.
• Stock up on essentials: Make sure to always have essential products in stock, such as rice, canned goods, snacks, and toiletries.
• Manage your inventory: Keep track of your inventory and make sure to restock popular products regularly. This will help you avoid stock shortages and lost sales.
• Keep your store clean and organized: A clean and well-organized store can attract more customers and make it easier for them to find what they need.
• Offer promotions and discounts: Offering promotions and discounts can attract more customers and increase sales. Consider offering discounts for bulk purchases or first-time customers.
• Build relationships with your customers: Get to know your customers and build relationships with them. This can lead to repeat business and positive word-of-mouth.
• Be honest and transparent: Always be honest and transparent with your customers about your products, prices, and promotions. This can help build trust and credibility with your customers.

By keeping these things in mind, you can start and run a successful Sari-Sari store that meets the needs of your customers and contributes to the growth of your community.

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• Wed. Apr 3rd, 2024

Business Diary Philippines

Small business startup ideas and money making guide

How to Start a Sari-sari Store Business

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 owner’s 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 customer’s requested commodity is given. It is a business worth considering for a gradual entrepreneurship take off.

In order to kickstart your dream of opening a sari-sari store, you have decided to pursue your entrepreneurial venture by borrowing from a licensed money lender to secure the initial capital needed for inventory and store setup.

Estimated Investment Cost (based on 2009 prices)

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

III. Projected Income

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. Miriam’s 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 Campbell’s soups. What Miriam would do was look at the merchandise of her competitors and buy what they didn’t 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 don’t stop searching for the best bargains.

Keep records. Even if you’re not an accountant, keep records of all your transactions. Some storeowners simply add the day’s sales and apply a mark-up on what they sold to compute their net profit. But unless you’re really good with numbers, it is better to record all transactions in a ledger.

You need cash. Many sari-sari store owners have lost money because they extended credit to people who couldn’t 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. Mayor’s/Business Permit (check your local municipality/city) 3. BIR TIN (www.bir.gov.ph)

Financing Facility

Click here: Funding sources for your business.

sources: dti.gov.ph, wikipedia, manilastandardtoday

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How to start selling your homegrown produce, how to work faster and more efficiently from home, how to earn money being a mom blogger, 33 thoughts on “how to start a sari-sari store business”.

sari sari store is very beautiful business plan .kailangan ng big capital.

very informative tips…i was really inspired…just waiting for a good timing…i'll cross the bridge to get in there thanks..

guys dili nako kabalo himo business plan

hello… just asking lang po okay lang po ba na iclose ang business permit ko sa store at mag-register for computer shop nainspect po kasi kami last friday ng munispyo namin here in binangonan.. kahit po ba sa bahay lang namin ang shop need po talaga ng business permit di naman po kumikita ang store namin sa dami na din ng kacompete na alang permit same din po ng shop ilan na po kami na meron dito at sa pagkakaalam ko lahat po kami alang permit . sa barangay lang po ang permit ko sa shop. sana naman po ay magkaroon ng exemption or mababang fees pagkasa barangay at home base lang po . thanks

it is big help for me,i want to discover more ideas for this kind of business.thanks.

i wan to know if you have a package deal for a sari sari store, with diffrent deals and cost of each package deal. let me know who to contact, thanks my email is [email protected] thanks

another idea…a good start…

Tama ka boy sa pagtanong mo..baka ibig sabihin halimbawa sa isang linggo let say 40,000 ang sales-turn over mo 40% from that….mamimili ka na naman base sa sinasabi nyang 40%….atmga 16,000 pesos ang worth na ipamimili mo..ganun cguro.

Thanks for the post.I got some tips!

if they do not sell alcohol and cigarettes it's ok.

why do some brgy allow brgy permit only with sari sari stores? no dti/mayors permit na

Thank you i learned this a lot specially how to start sari sari store

Ask lang po what do you mean by 40% weekly purchase for 3 weeks?

try nyo mag business ng new oil engine conditioner 150 srp may tubo kayo 70 pesos agad isang piraso pwede sa motor o sasakyan. 1.mabilis ibenta dahil maraming sasakyan 2.murang halaga batrya lang ang 150 3.epektibo at mabisang produkto 4.pwedeng bitbitin kahit saan magpunta dahil maliit lang ang packaging 5.walang expiration 6.maliit ang puhunan 7.online selling masmaganda 8.kahit nasa bahay ka kumikita ka. 9.full time o part time 10.walang age limit tested and proven sa TESDA MMDA DENR GERMANY VOLKSWAGEN

Thanks for the good idea,its helpful!!

Thank u so much for this guide and tips, i'll have this sari sari store someday..

Thank you for this information sobrang naka tulong to sakin para sa business na gagawin ko

Thank u it helps me. To learn more

now i will plan to build my own business someday..it start in this.

Thank you for that advice, you are so right! You can't win having a small business if you are surrounded by Relatives and Friends and if you are not strong enough to say NO to credits upon credits. As sad as it is, that is a fact. How do you avoid friends and relatives wanting credits on a daily basis – You cannot ! the only way is not to have that business. And if you own any other type of business, Do not make it known that you are the owner. Some things never change in our culture.

Saan po ba may guide kung paano mag-keep ng ledger for saro-sari store?

pm me sir.. how to start a distributor in aim global..so i can assist you po so i can discuss about all aim global po

TRy nyo po ang leveraging system na business TULAD nang AIM GLOBAL PM ME How to start this business add me .www.facebook.com/aimtedericalanes

Ggawin ko ito balang arw

Thanks for everything…someday i will try one of your suggestion if i have the capital to put up a business.

nice tips,thanks a lot

I have not checked in here for a while as I thought it was getting boring, but the last few posts are good quality so I guess I’ll add you back to my everyday bloglist. You deserve it my friend 🙂

thank u for the knowledge …it help me a lot.

Thank you so much for sharing this knwledge!

if i plan to be a distributor of these items mentioned above, where i can find it? what company i should go first? thank you

thank you for this. additional learning for fresh enter in entrepreneurship

do u know how much it will cost to get your sarisari store licensed?

i like betong..congratiolation..

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How to Manage and Maximize Your Sari-Sari Store's Profits

It is not enough that your sari-sari store is well-paid for the time being―you must also guarantee its long-term profitability. You can achieve this goal by performing activities that effectively manage and maximize your shop’s revenues. These tasks include regular monitoring of your inventory and establishing a good budget. When your inventory is always new and complete, customers will patronize your goods. Making a budget helps you avoid overspending. With these actions, the income of your store becomes sustainable in the long run. Below are ways for you to manage and maximize your sari-sari store’s profits:

Set a Budget

List down your shop’s expenses for a given period (usually a week or a month). Besides each expense, specify the amount that you will allocate for it. You can either write your budget on a ledger or type it on a Microsoft Excel file. Once you have created your budget, be sure to stick to it. Do not buy equipment or goods that you really cannot afford simply because you saw your competitors purchasing these. If you do, you might end up reducing your money and even borrowing from other people just to be able to meet more important payments such as rent and electricity bills.

Routinely Check Your Inventory

It is important that you consistently keep track of your inventory. Failure to do so increases the chances of your merchandise expiring without you knowing it. Since expired products are no longer fit for consumption, you will have to throw these out, resulting in wasted money. Include in your tally when you purchased goods, their respective expiry dates, and the quantities you have in hand. Just like your budget, you can jot your table down in a ledger or encode it in an Excel file. Make it a point to frequently update your record so that you will know ahead of time if you already have to replenish your stocks. Learn how to start your inventory system here: Proper Inventory Management for your Sari-Sari Store

Add 10% Markup

According to pisoandbeyond.com, a simple method of pricing your goods and calculating your shop’s revenue is the “Rule of 10.” Add a 10% markup to each of your products to cover your overhead expenses and desired profit. For example, if you bought biscuits from a wholesaler for PHP 5 per pack, sell each unit at PHP 5.50. Similarly, take 10% of your outlet’s total daily revenue and consider this your profit or tubo. For instance, if your store earned PHP 500 today, 10% of this amount which is PHP 50 will automatically become your tubo. Do not spend your tubo broadly. Rather, save it, so that you can buy more products or equipment for your shop without going into debt. Also, you can use it for your store’s emergency expenses like roof leak repairs. For other business pricing tips, check: Stocking and Pricing Tips for Your Sari-Sari Store

Keep Your Business and Personal Funds Separate

When you keep your personal and business funds in the same bank account, you will certainly misuse money that is intended for your store. For example, you may overspend on online shopping.. Before you know it, your bank account is already empty, and you have no remaining capital. Avoid this scenario by opening a separate bank account for your business funds. Doing so guarantees that you will have sufficient money for your outlet’s operations. Ask yourself: What if Meralco disconnects my store’s electricity supply, will I be able to pay for it with my new gadget?

Do Not Turn the Goods of your Sari-Sari Store into Your Personal Grocery

Some sari-sari store owners have the tendency to turn their store’s goods into their personal grocery. Instead of selling their products, they use these for personal consumption. Not surprisingly, their store shelves are emptied even if they did not get to sell anything. With no sales, they do not make profits and their outlets eventually fold up. When you take something from your shop for personal use, be sure to pay for it like you are buying from another store. Doing so, ensures that you will have enough funds to buy new merchandise to sell and generate profits from.

Say No to Credit

Some sari-sari store customers tend to buy items on credit. They take a product and promise to pay for it in the future. However, they intentionally forget to pay for what they purchased. The proprietor, bound by the Filipino trait of pakikisama (maintaining harmonious relationships with other people), no longer bothers to go after these customers to avoid offending them. Hence, his or her inventory is reduced to the point where he or she has nothing to sell anymore. The lack of wares ultimately diminishes his or her profits, forcing him or her to close the business for good. To safeguard your store against credit-related losses, make it clear to your customers that you are running an enterprise. Anyone who buys from you must therefore pay in full immediately after a transaction. In short, credit is not allowed in your shop. This rule may turn off some of your customers, but at least you will have peace of mind because your outlet is generating profits.

Keep Operational Costs Low

Reducing your operational costs can greatly boost your revenue. To lower your electricity bills, invest in appliances with inverters. These appliances are more energy-efficient compared to those without inverters. Using inverter appliances thus cuts your power consumption and, ultimately, your electricity expenses. You should likewise buy appliances with comprehensive warranty coverage. An extensive warranty safeguards you against major out-of-pocket expenses if ever your appliance breaks down. Appliance repairs will not deplete your profits, giving you huge savings and peace of mind. The Condura Negosyo Pro chest freezers (inverter and non-inverter) provide energy-efficient chilling. The Negosyo Pro inverter chest freezer consumes less electricity than its conventional counterparts. The Negosyo Pro non-inverter chest freezers’ electricity usage is equivalent to roughly PHP 9.48 per day (based on an average daily consumption rate of 11.7088 kWh from January to June 2019). The quality of your shop inventory is hence preserved minus the huge power costs. The Condura Negosyo Pro chest freezers (inverter and non-inverter) and chillers also have a 5-year compressor warranty and a 2-year warranty on system parts and labor. Condura Negosyo Pro manual/semi-automatic defrost inverter refrigerators (single- and two-door) have a 10-year compressor warranty and a 3-year warranty on system parts and labor. The Negosyo Pro no-frost inverter refrigerators have a 10-year compressor warranty, a 3-year inverter board warranty, and a 1-year warranty on parts and service. These terms ensure that high repair prices will not consume your profits. You will get to save your earnings and use it to grow your shop instead.

Discipline Is Key

Handling your sari-sari store’s profits requires discipline. It is very easy to become unworried when your store is thriving. But complacency can cause financial mistakes that can drive your customers to your competitors. The Philippines has numerous sari-sari stores that offer goods at competitive prices―you can quickly lose your customers to these establishments merely because you carelessly managed your outlet’s revenues. Proper usage of your shop’s profits, in sharp contrast, generates more money for new investments, such as additional merchandise and equipment. These investments give your store an edge over its competitors, leading to greater business continuity for it. Condura provides various refrigerators, freezers, and beverage coolers for households and businesses. To know more about our products, call us at (02) 8863-5555 or 1800-10-888-8888 (toll-free number for PLDT subscribers) or click here.

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Sari Sari Stores: Designs and Samples

Sari-sari stores are a ubiquitous feature of Filipino communities, providing a convenient source of daily necessities and a place for people to gather and socialize. In recent years, the design of sari-sari stores has become more important, as store owners look for ways to stand out from the competition and create a welcoming environment for their customers.

There are many different sari-sari store designs and samples available, ranging from simple and functional to more elaborate and eye-catching. These designs can help sari-sari store owners create a unique and memorable shopping experience for their customers, while also maximizing the use of limited space and resources.

Table of Contents

What is a Sari-Sari Store?

Sari-sari stores are a fundamental aspect of Philippine culture and community life. These small, neighborhood shops are found in every corner of the country, offering a range of goods and services to local residents.

From snacks and beverages to toiletries and household essentials, sari-sari stores are a one-stop-shop for daily necessities. Beyond their practical function, sari-sari stores are also important social hubs, providing a space for people to connect and catch up on local news and gossip.

The sari-sari store model has proven to be a resilient and adaptable business model, with many owners finding creative ways to innovate and thrive in a challenging economic environment.

Why do Filipinos find this business attractive?

• Flexibility : Sari-sari stores offer a flexible business model, which allows owners to run their business on their own terms. They can set their own hours, choose their own products, and tailor their offerings to suit the needs and preferences of their local community.
• Low start-up costs : Compared to other businesses, sari-sari stores have relatively low start-up costs. Many owners start with a small inventory and gradually expand as their business grows. This makes it an accessible option for Filipinos who may not have a lot of capital to invest.
• Community involvement : Sari-sari stores are often located in residential areas, which allows owners to build a strong connection with their customers and the community. They can also provide essential goods and services to those who may not have easy access to them.
• Additional income : Running a sari-sari store can be a good source of additional income for Filipinos who have a regular job or other sources of income. It allows them to earn extra money while still having the flexibility to manage their own time.
• Resilience : Sari-sari stores have proven to be resilient business model even during times of economic uncertainty. They offer essential products that people need on a daily basis, which means that demand remains consistent.

Things to Consider when Putting up a Sari Sari Store

• Location : The location of your sari-sari store is crucial to its success. Choose a location that is easily accessible, visible to potential customers, and has a steady stream of foot traffic. It’s also important to consider the competition in the area.
• Inventory : Choose a range of products that will appeal to your target market. Consider stocking basic household items, snacks, beverages, and other popular products in your area. It’s also important to maintain a good balance of perishable and non-perishable items, and to regularly check the expiration dates of your products.
• Pricing : Determine your pricing strategy by researching the prices of similar products in your area. Consider the cost of your inventory, as well as overhead costs such as rent, utilities, and labor.
• Capital : Determine your start-up costs and estimate your daily expenses. Consider the cost of your inventory, rent, utilities, licenses, permits, and other expenses. Ensure that you have enough capital to cover these expenses until your business becomes profitable.
• Store layout : Design your store layout to maximize the use of limited space and to make it easy for customers to find what they need. Consider the placement of shelves, the flow of foot traffic, and the use of signage to highlight your products.
• Marketing : Develop a marketing plan to attract customers to your store. Consider using social media, flyers, and other promotional materials to spread the word about your store. You can also offer special promotions or discounts to encourage repeat business.
• Permits and licenses : Make sure that you have all the necessary permits and licenses to operate your sari-sari store. This may include a business registration certificate, barangay clearance, and health permits.

Sari-sari Store Designs

Sari-sari store designs play a crucial role in creating a welcoming and functional space for customers, as well as optimizing the use of limited space and resources.

The design of a sari-sari store can influence a customer’s decision to enter the shop and can even affect their purchasing behavior. There are numerous design elements to consider, such as layout, lighting, color scheme, signage, shelving, and storage.

A well-designed sari-sari store can not only increase foot traffic and sales but can also build customer loyalty and create a memorable shopping experience. From traditional layouts to more modern and creative designs, sari-sari store owners have a wealth of options to choose from that can help them differentiate their store from others in the community.

Here are some design samples for layout ideas and inspiration:

Modern Layout Sari Sari Store

A modern layout sari-sari store typically features clean lines, minimalist design, and a well-organized layout. The focus is on maximizing space efficiency and creating a streamlined shopping experience for customers.

This may involve the use of modular shelving and display units that can be easily reconfigured to accommodate different product categories. Modern lighting fixtures are often used to enhance the store’s visual appeal and highlight key products. The color scheme may be neutral or incorporate bold accents to add visual interest.

Small Space Sari Sari Store

A small space sari-sari store is a compact and efficient store that maximizes the use of limited space to provide a range of products to local customers. Due to its small size, the store typically has a simple layout, with shelves and displays strategically placed to optimize space.

The store may offer a limited selection of items, with a focus on high-demand products. Despite its size, a small space sari-sari store can still provide a welcoming and convenient shopping experience for customers.

Sari Sari Store with Grills

A sari-sari store with metal grills is a type of sari-sari store that features metal grills as a security measure. These grills are often installed on the windows and doors of the store, providing a level of protection against theft and burglary.

The grills can be customized with different designs and patterns to add an aesthetic element to the store’s exterior. Additionally, metal grills can provide a sense of transparency and openness, allowing customers to view the store’s products even when the shop is closed.

Sari Sari Store with Shelves

A sari-sari store with shelves is a popular layout that maximizes the use of limited space while offering customers easy access to a wide range of products. The shelves can be arranged in various configurations, such as along the walls or in the center of the store, depending on the available space and desired aesthetic.

Shelves can be made of different materials, such as wood or metal, and can be customized to fit different types of products, from snacks and beverages to toiletries and household essentials. The shelves allow for easy restocking and inventory management, and can also help to create a more organized and visually appealing store layout.

Sari Sari Store with Open Area Seating

A sari-sari store with open area seating is a design concept that incorporates a communal space within the store where customers can relax and socialize. This type of store features an open area with chairs or benches, usually located near the entrance or in a designated corner of the store.

It creates a welcoming atmosphere for customers, encouraging them to spend more time browsing the store’s products and chatting with other patrons. The open area seating also provides a place for customers to enjoy a snack or beverage purchased from the store. This design concept is particularly popular in urban areas, where space is limited, and customers often look for a place to sit and rest while on-the-go.

Sari Sari Store with Open Window

A sari-sari store with an open window is a common sight in many Filipino communities. The open window serves as both a means of ventilation and a way to display merchandise to passing customers. The store may have shelves or displays near the window, showcasing snacks, beverages, and other popular items.

The open window also allows the store owner to interact with customers, greeting them as they pass by and making recommendations for products to try.

In conclusion, sari-sari stores are an integral part of Filipino culture and community life. These small, neighborhood shops serve not only as a source of daily necessities but also as social hubs that bring people together.

As competition in the market increases, the importance of sari-sari store design cannot be overstated. By creating a welcoming and functional space for customers, store owners can increase foot traffic, sales, and customer loyalty.

READ NEXT: OFW from South Korea Shares Apartment Rental and Sari-Sari Store Business

• Tips and Trick

Making a Business Plan and How to Write it Successfully

Ang pagbuo ng sari sari store sa Pilipinas ay karaniwang negosyo at iniisip ng karamihan na ito ay napakadali nito. Kumpara sa ibang negosyo, maliit lamang ang capital sa pagbuo ng sari sari store pero kung gusto mong lumago ito, kinakailangan mo magkaroon ng business plan. tapos pwede kang sumali sa smartsari, dahil maraming kumikitang business opportunities! Simulan ang iyong negosyo ngayon!

Ang sari sari store, gaya ng ibang negosyo, ay nangangailangan ng extensive planning at preparation, gayon na rin ang malalim na kaalaman tungkol sa negosyong ito pati na rin ang may kinalamang mga regulasyon.

Business Plan Meaning

Business plan meaning: ang business plan ay isang valuable tool na makakatulong sa mga negosyanteng kagaya ng sari sari store owner na magkaroon ng tamang decision tungkol sa kanilang tindahan at magkaroon ng strategies para sa success. Ang article na ito ay magbibigay ng step-by-step instructions sa paggawa ng business plan para sa sari sari store sa Pilipinas.

Advantages of Learning How to Make a Business Plan

Ang paggawa ng kumpletong business plan ay mahalaga para sa tagumpay ng kahit na anong sari sari store. Ang isang maayos at napag-isipang business plan ay makakatulong sa may-ari ng mga sari sari store na malaman ang kanilang mga gustong mangyari para sa kanilang tindahan at magkaroon ng strategies para matupad ang mga ito.

Ang business plan ay magbibigay sa iyo ng outline ng costs na kasama sa launching at operation ng business. Kakailanganin mo ito, lalo na kung may potential investors ka at kailangan mong ipakita sa kanila ang iyong plano.

Ang business plan ay makakatulong rin na maiwasan ang potential risks at mabawasan ang mga ito, para maprotektahan ang iyong negosyo sa pagkatalo dahil sa mga di inaasahang pangyayari.

How to Create a Business Plan: Step-by-Step

Sa mga naghahanap ng how to make a business

Step 1: Research the Market

Bago magsimula ng kahit na anong negosyo, mahalagang maunawaan ang local market at industry. Ito ay makakatulong na malaman mo kung may pangangailangan sa iyong produkto o serbisyo  at kung may kakayahang bumili ang mga customer sa iyong area.

Kinakailangan din ng research to assess potential competitors, their offerings, and prices. Finally, consider regulations. May mga restrictions na na maaaring maka-apekto sa operasyon ng iyong tindahan??

Step 2: Define Your Target Customers & Products

Kapag naintindihan mo na ang iyong market, magsimula ka ng isipin kung sino ang iyong mga target customers are at kung anong mga produkto ang kakailanganin nila mula sa iyong tindahan. May mga consumer groups ba na more likely buy from you than others? Knowing this information can help you tailor your product selection to meet their needs.

Step 3: Choose Your Location

Pumili ng nababagay ng lokasyon para sa iyong sari sari store, hangga’t maaari ay yung convenient at madaling ma-aaccess ng iyong target customers. Consider factors such as traffic flow, competition nearby, and parking availability. Kung ikaw ay renting or leasing a facility, consider the terms of the agreement carefully bago pumirma ng kahit na anong kontrata.

Step 4: Create a Business Plan

Once you have completed preliminary research and taken care of matters related to location and customer base, it’s time to create a formal business plan. Dapat maisala dito lahat ng relevant information tungkol sa finance, marketing strategy, operations, staffing, at iba pa. It is also important to set measurable goals for the store.

Step 5: Monitor Your Progress

Keep track of sales, expenses, customer feedback, and other relevant information to make sure that you are on track with your business plan. Importante na maging konektado sa kung ano ang gusto ng customers mula sa iyong tindahan para makagawa ka ng mga adjustments kung kinakailangan. Regularly reassess your products and services based on market data.

Step 6: Seek Financing and Capital

One of the most important aspects of starting a business is raising capital. Ito ay maaaring gawin through investors, banks, or micro-finance institutions. Tingnan ang lahat ng available options at ikumpara ang interest rates at ibang terms para masigurado na ginagawa mo ang pinakamagandang desisyon para sa iyong sari sari store. Be sure to also pay attention to any government grants or incentives that may apply.

Step 7: Make Your Store Stand Out

Ang success ng sari sari store ay nakadepende rin sa kung gaano magstand out ang iyong tindahan kumpara sa mga ibang sari sari stores sa inyong lugar. Isipin kung paano gagawing attractive at inviting for customers ang iyong tindahan. Display products in an organized manner, offer promotions, introduce loyalty needs etc., in order to provide potential investors with a comprehensive overview of your business plan and projected financials.

These are the basic steps for creating a sound business plan for a sari sari store in the Philippines. Developing this document is an important part of starting any business, as it helps entrepreneurs make informed decisions and plan for success. With proper preparation and research, you can pwede ka ng mag-create ng iyong sariling detailed business plan. You be well on your way to opening up a successful sari sari store!

By following these steps, entrepreneurs will have all the necessary information they need to create a comprehensive business plan that will help them succeed in establishing their own sari sari stores. Dapat maalala ng business owners na maging updated sa mga bagong developments sa kanilang industry.

Marketing Tips to Help With Your Sari Sari Store Business Plan

1. Use social media – Gumamit ng social media platforms to reach out to potential customers and keep them informed about your store.

2. Offer promotions – Mag-introduce ng regular discounts and promotions to help attract customers and increase sales.

3. Advertise locally – Makipag-ugnayan sa local businesses, schools, at ibang organizations in the area to advertise your store.

4. Have a loyalty program – Gumawa ng loyalty programs that reward regular customers para sa pagtangkilik nila sa iyong tindahan. This will encourage more people to support your business.

5. Keep up with the trends – Maging aware sa new products, services, and trends related to sari sari stores—this will help you stay ahead of competitors in the market.

6. Build Relationships – Mag-develop ng relationships with suppliers and other business owners in the community to increase visibility in your area.

7. Connect with customers – Get feedback from customers about what they would like to see at a sari sari store. This will help you improve the customer experience and keep them coming back for more.

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Business Plan Writer Moscow

A well written business plan is an essential component for any company seeking to raise capital. Our team at Prospectus.com has over 20 years of experience writing business plans and structuring business models for start-ups, later stage and expansion companies, those seeking venture or angel financing all the way to mezzanine and 144A funding, spanning a wide range of industries across the globe. We have been involved in thousands business projects and assisted with business planning, offering and private placement setup, feasibility studies, drafting financial projections, both for private companies and those seeking initial public offerings or listings on a stock exchange.  Our team is a recognized leader in business plan development. In fact, our CEO is the Chairman and Founder of  Borders.org  ( Business Plans Without Borders ), a not-for-profit 501c3 organization which assist low income families as well as refugees and immigrants with business plan writing services and grants.

Our Team’s Business Plan Advisory Services Value-Proposition:

• Our staff are known as one of the most reliable and affordable Business Plan developers in the U.S. and worldwide. Our straight forward and honest assessment of one’s business is one of our strongest characteristics
• Offices and associates in numerous countries, including New York, London, Hong Kong Beijing, Singapore and Seattle
• 1 to 2 weeks’ average time for completing business plans
• Proven track record of saving entrepreneurs thousands of dollars in needless spending while developing the business plan
• Ability to draft your business plan and prospectus or private placement memorandum or offering memorandum for debt or equity offerings or any other service and package    everything as one price
• We are somewhat of a one stop business for most of the startup and later stage company needs.

Moscow Business Plan Options

There are mainly two types of business plans that are written in Moscow: capital raising business plans and management or managerial business plans.

Raise Capital with a Business Plan

Most business plans are written with eye towards raising money for their venture. In a business plan that is written for investment capital, the structure of the business plans and therefore the most important point of the document will be the value-added benefit. Information on the products, services and the market will play central roles in the development of the plan, as well as various payout or exit strategies for the investors. Most business plans will focus on either selling equity or debt to investors.

• Equity : In an equity business plan the company seeking funding will sell an ownership stake. If the company is a corporation, they will sell shares or common stock or a variation of them. If the company is a LLC or a Limited Company (which is popular worldwide) interest or units in the company would be offered. Both a form of ownership, just with a different name for each entity. In additional, there are other sweeteners one can add into any business plan offering, including warrants or preferred shares or preferred units or convertible debt.
• Debt : in a debt offering business plan the company will be issuing some type of bond or a note to investors. A bond or note differ only in terms of the length of each security, which bonds being considered a longer maturity date than a note. There are also convertible debt securities that would convert the notes/bonds to equity at a certain fixed point in time. The business plan for bonds would detail the terms, such as the maturity date, interest rate and other vital information.

Managerial Guidance Business Plan

• No Capital Raising : In a managerial or a management business plan, the focus is not on raising money but what strategy a company should employ. While most companies that write business plans do so to raise capital, there are some that simply want to get a second opinion or an outside view of their business. They ask us to write them a business plan for growth opportunities, not to raise money. Said another way, the management of the company wants to see our view and take on their business and what we would do to expand their company.
• Recommendations : A business plan used to simply strategically plan one’s next move is referred to as managerial guidance business plan document. No capital is being raised initially, although sometimes we may conclude that capital should be raised for the company to penetrate or open new markets or opportunities. In the course of research, we may conclude that, in fact, the company should conduct an offering and raise money. We will recommend the amount to raise based on the company’s expansion needs and the company valuation.

3 Levels of Business Plans

Our firm offers various levels of business plan writing service and consulting, including: Level I Start-up Business Plan »

• Prospectus.com’s team consists of industry expert business plan writers. Our Level I Start-up Business Plan can be used for companies raising initial seed funding and getting off the ground. The dollar amount being raised is not of paramount importance.
• The Start-up Plan includes complete financials, potential cash-flow, market analysis and marketing strategies as well as a break-even analysis, and a separate executive summary and much more.

Level II Expansion or Series B Business Plan »

• Prospectus’ Level II Expansion or Series B Business Plan assists companies and entrepreneurs that are seeking to expand or scale their business, including by increasing market share.
• The Level II Start-up Plan helps to define concepts, target markets and market potential, as well as financial clarity necessary to define your concept, identify your market potential, and identify capital requirements. Executive summary included.

Level III Enterprise Business Plan »

• Prospectus’ Level III Enterprise Business Plan serves the need of those later stage and established companies seeking to raise additional capital to expand their businesses, often in the form of issuing debt securities such as bonds or convertible notes.
• The Level III Enterprise Business Plan is our most comprehensive business plan and often our clients will need a prospectus or a private placement memorandum (offering memorandum) written as well.

Our firm has years of experience drafting securities documents and is confident we can assist with your Moscow Business Plan Writer.  Feel free to contact us anytime, or call us to setup an appointment at any one of our global offices.

Contact Us Today To Schedule Your Free Consultation

• Prospectus Writing
• IPO Stock Exchange Listing
• Bonds Offerings
• 144A Reg S Offerings
• Hedge Funds and Mutual Funds
• Offering Memorandum
• Private Placement Memorandum
• Offering Circular
• Explanatory Memorandum
• Information Memorandum
• Fund Setup Formation
• Securities Identifiers
• Registration and Filing
• Business Plans

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Central Kids Store in Moscow: a paradise for children

Anastasiya Molchanova

Travel tips for moscow.

Sometimes we all want to get back to our childhood and enjoy that careless time. Childhood is probably the happiest time of our lives and memories about it are always priceless.  Central Kids Store in Moscow  can help you to make this little dream come true: a 6-floor giant shop can offer much more than Barbies and Lego. After being renovated in 2015, the store has become a popular attraction mostly for Moscovites, and if you are visiting Moscow , this  paradise for children  is a must!  

What Central Kids Store actually is?

The Store looks like a big shopping mall for kids with a lot of shops, and you are probably wondering what an adult can do there, right? Alright, let me give you a hint! Firstly, if you are  travelling with children , they will be excited to see the statues of Iron Man, Hulk, all My Little Pony ponies, Lego girls and much more! Secondly, this place has many activities for the younger generation : a museum with life-sized dinosaurs that explains the life of these magnificent extinct animals, InnoPark - a center of scientific discoveries for kids and many more! The interior of the store is made of light marble, while on the ceiling in the main hall, you can observe a glass Pano with the heroes of Russian folk tales. 

What to do there besides shopping? 

Central Kids Store in Moscow  attracts a lot of people every day because of its ice cream. I’m not kidding! Ice creams  with many flavours, such as chocolate, strawberry, blueberry, vanilla, caramel must be found and immediately eaten! The quality is very high because the visitors are mainly children, and you know that they are just the fond of this dessert! After eating the ice cream, go straight to the 6th floor and find the  Observation Deck  sign. The price is 50 roubles (less than $1) and the view is breath-taking! From the Observation Deck, you can see the Kremlin, St. Basil's Cathedral, Moscow State University and many narrow streets, winding and cozy. It’s a very romantic and nice place to visit in the evening. The sun reflects on the roofs of the buildings and creates many different colors on them: golden shades of the sunset are mixed with pink and blue.  

Why is it worth visiting it? 

Central Kids Store  at Lubyanka metro station is a perfect place for those who think that walking along the streets is not enough. Watching  Moscow  from a bird’s eye perspective is a great experience as well. A sweet tooth can enjoy a delicious ice cream and a cup of coffee, and young guests of this  paradise for children  can find out what their Russian peers are fond of.  

Central Kids Store in Moscow

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I am Anastasiya from Moscow, a linguistics student who loves hiking, playing the guitar and drawing. On itinari, I will share with you my favorite Moscow’s spots, giving you the opportunity to dive into an amazing Russian way of living.

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