Five Tips How to Start a Sari-Sari Store Business

Five 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)