How to Start a Small Provisional Store in a Big Village?

. 6 min read
How to Start a Small Provisional Store in a Big Village?

Stating a provisional store is a lucrative idea as the demand is increasing every day. It is the best business to start in India. As the economy rises, people prefer to shop from big supermarkets and provisional stores. It is due to the large variety of goods and services and customer service. They can find all the necessities and daily products in one place, including dairy, cereals, cleaning items, meat, cold packaged foods, etc.

Starting a provisional store is a small business idea that you can start with a little investment. However, the process is segregated into various parts. We will discuss all the steps, tricks, and tips to start a provisional store in India. It is considered as one of the best new business ideas that many people opt for. It is essential to draw up a business plan for your store.

How to open a provisional store?

The steps of opening a provisional store are as follows:

1. Draw a business plan

Before starting a provisional store, you must create a business plan. It will help you understand the market, customers, and their requirements. An effective business plan will lead you to a successful business. A business plan includes customers’ requirements, backgrounds, location plans, living standards of customers, financing structure, labour cost, inventory, and other related business needs.  

2. Target Market

The target market plays an essential role in the growth of the business. Do proper market research and identify your target market. If you focus on your target market and make products specifically for them, your sales will increase. It will help you streamline your products and the location of the business.

3. Select the location

The next step is to find a suitable location for your business. Location plays an important role. If you start your business in a small town or village, you should sell your products based on the requirements in the village. You must distinguish your target market and location based on the needs of your customers. So, choose your location properly.

4. Setup cost of the business

After setting up your business plan, and selecting the location, make a financial plan. Forecasting the costs of your business is important as it will help you depict a number required for your business operations. A provisional store requires furniture, racks, drawers, tables, inventories, AC cost, interior decoration, etc. It would cost around INR 2lakhs to INR 3 lakhs.

Create a budget for your business and arrange the finances. You can take a short-term loan to meet your daily expenses of the business or a long-term loan for the establishment of the business.  

woman and lawyers discussing contract papers with brass scale on wooden desk in office

A provisional store might be a unique business idea but involves many legal formalities. You cannot start your business without licenses and permits from the government. To start a provisional store, you need a food license, entity registration, establishment registration, business license, and other food-related trademarks and permits. You can hire a CA before starting your business. A CA will help you handle all the legal formations required for a business.

6. Pricing of goods

Pricing is key for a successful business. Provisional business is considered as the best small profitable business idea to start in India. However, many businesses fail due to the high pricing of the products. Pricing affects the quantity of the products that your customers will purchase, which in turn affects your revenues and profits. There are two types of pricing methods, cost-based and selling-based pricing.

7. Hire employees and sales staff

Employees and sales staff are dependent on the size and requirements of the store. If your business is a small-scale business, a couple of sales staff will suffice the requirements. In a large-scale provisional business, you might need more employees to manage your business. You can hire employees using social media channels and other professional job portals.

8. GST Registration

After setting up your business and hiring employees, get your business GST registered. You will receive a GSTIN, a 15-digit number for your business. It is a compulsory requirement to start your business. If the annual turnover of your business is less than INR 20 lakhs, GST is optional. If your sales cross INR 20 lakhs mark, GST is mandatory. The GST returns are filed in two types, three monthly returns and annual GST returns.

9. Take your business online

It is imperative to take your business online nowadays. The sales of online businesses are more compared to physical stores. Online businesses reach a much larger audience. The majority of people purchase goods and services online to save money and time. So, you must build your business online to access more people. It will also increase your sales and profits. You can create a website to sell your products and services to customers.

10. Promote your business

The last step is to promote your business. Promotion and advertisements are essential for the growth of your business. It allows you to explain your business in detail to your target audience. It also provides you with a platform to connect with your customers. You can advertise your business by creating graphical videos or connecting with people through social media platforms. A large number of people use social media channels. So, it is a great way to connect with the customers.

a man using computer and showing diagram of promotion


To conclude, we can say that starting a provisional store is the best business idea in India. You can start your business by following the steps mentioned in the article. It includes a business plan, location, target audience, legal procedure, registration of business, machinery, furniture, and promotion. All these components make a successful provisional store.

Also read:

1) Startups in India: Growth & Other Factors to be Considered for a Startup
2) When does a Startup Stop being a Startup and Become a Normal Company?
3) What Are Some Good Startup Ideas?
4) Startup Ideas: How do you know if your Startup idea already exists?

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Q. Are provisional store businesses profitable?

Ans. Yes, the Provisional store business is profitable in the long term. If you create a good financial plan for your business, you can save money and manage your finances well. You can increase your revenues by advertising your business and focusing on the target audience’s needs.

Q. How can I start a small grocery store?

Ans. You can start a grocery store by following the steps mentioned below:

  • Figure out the niche or the business
  • Find investors
  • Rent a studio or small place for your business
  • Hire employees, if your business grows
  • Find suppliers and trusted distributors
  • Advertise and promote your business

Q. What licenses are required for a provisional store?

Ans. The major licenses needed for the provisional store are as follows:

  • Business registration
  • Food license
  • Establishment registration
  • FSSAI license
  • Shop registration and other required licenses and permits

Q. What is the profit margin in a provisional store?

Ans. The profit margin is dependent on the scale of the business and the target audience. On average, the profit margins range between 5% to 25%. The profit margin of a large-scale business can go up to 30-40%. You can increase your profit margins and sales by expanding your business.