How to open up a convenience store?

Question

I'd like to start a small business but I'd just like to get some basics like how much money is needed just to open it up, where do I buy the products, what are the risks involved, etc. I live in the los angeles area. Thank you!

Answer 1

When I was young my parents opened up a corner store, We didn't have much money because my parents moved form a didnt country. We sold just basic things like candy, chips, home needs, ice cream, foods, cigarettes, they had lottery , soda , hoagies, ect.. & every mornign they went to buy things at a wholesale. which is kind of like BJ's or SAM'S CLUB.  

Answer 2

Your cost will depend on where your store is located, the better the location, the higher the rent.  And commercial rent is not cheap.  It can easily take $100,000 to open a small convenience store, especially if you have to remodel or build out the space first.  The biggest risk, of course, is that you choose the wrong location and don't have any traffic in the store.  Look VERY carefully at any location you're considering, look at the traffic flow, the patterns, and whether or not it is accessible to passing cars and pedestrians.  You will need pedestrian traffic, meaning nearby houses.

Then you will need a business plan.  The business plan will address many of the things you need to know, including suppliers, available space, startup costs, etc.  

Before you go any further, I STRONGLY recommend you contact the Small Business Development Center (at your local community college) and talk to them; the counseling is free.  Then sign up for the NxLevel Entrepreneurial program...  it's a 12 session course that walks you through the ins and outs of starting or growing your business, and as part of that you will write a business plan.  At the end of the class your plan will be reviewed by a lending professional, and will be critiqued, telling you the strong points of your plan AND the weak points.  

Then you can work on the weak points and hopefully get it into shape to actually present to a lender and get the loan you need.  There is a cost for the NxLevel program ($375.00 last year at my SBDC), but it’s a lot cheaper than losing your investment.

Even if you hire a professional to write your plan, you should still take the NxLevel course.  It saved me from going into a business that would have failed within a year or so, taking my investment with it.  

Business plans may be a pain in the butt to prepare, but without one, your business is doomed to failure.  To start with, you won't know what your startup costs are going to be, what kind of income to expect, what your ongoing expenses are, who your competition is, and even whether or not you can make a profit.  Without a GOOD business plan, you will not be able to get a business loan to get your business off the ground.