How To Start A Provision Shop in Ghana [2021 Guide]
Have you ever thought of starting your own provision shop in Ghana? But are you thinking of how you can be able to do that?
This article will explain to you everything you need to know about how to start a provision shop in Ghana.
Provision shops are one of the most important things that can be found in every location. But, starting your own provision shop could be quite overwhelming at first.
Many questions will run through your mind about what should you name your shop, what are the items you will need in your shop, how much capital is required, etc. All these questions are equally important and necessary.
What Is A Provision Shop?
Before we jump into anything, I want us to look at what a provision shop is. It might not seem relevant in this context but knowing what exactly a provision shop helps you to decide what you need to do to make yours a successful one.
A provision shop is a retail shop that sells all the basic items human beings need for their daily survival. Some of the products that are sold at provision shops include uncooked food and foodstuff, drinks, toiletries, books, and stationery, etc.
With this type of shop, you buy the product from the market a lesser price (wholesale price) and sell it a little bit expensive to the people who buy them from you.
How To Start A Provision Shop in Ghana
Before you start a provision shop, there are several things you need to take note of and be aware of. Below is a list of how to start a provision shop in Ghana.
- Write/draw your business plan.
- Look for your capital.
- Find land or space you will start your shop at.
- Look for materials that will be used to build or set up the shop.
- Perform your market research and stock your shop with products.
- Pay the required taxes
Now, let’s take a look at each of the steps listed above.
Write/draw your business plan
Before you can start any business, you need to have a business plan. This could be a written plan or something you have just planned in your head.
According to research, businesses that start without a plan stand a higher chance of failing than those that started with a business plan. As the saying goes, “if you fail to plan, you are planning to fail”.
Therefore, you need to have a business plan. Your business plan is what is going to guide you throughout your business journey. The business plan should contain at least:
- The capital you will need to start the provision shop
- The type of items you will sell in your shop
- The location of your shop
- Your business goal for the next one or two years.
Look for your capital
Next, you now need to look for the capital that you will use to start your shop. Mostly, people estimate their capital based on only the items they will put in their shop.
But, your capital should include all the money you plan to spend before the business starts. Thus, the cost of the land, shop (if you are renting), cost of workmanship for the carpenter and the mason, etc. should be included in your capital.
After doing the necessary consultation and you can find out the cost of each of the services listed above, you then add the cost of items you will sell in the shop. That is your final capital required to start your provision shop.
Once you have been able to calculate the total capital required, you then look for your source of funding. If you already have the money, you proceed to the next stage, otherwise, you look for your source of funding.
Find land or space you will start your shop at
Now that you have the capital required to start your business, you then proceed to find a land or space you will start your shop.
If you already have a piece of land somewhere you can go ahead and build the shop.
Other than that, you can rent a shop somewhere or rent land somewhere in the beginning. Once your business starts booming, then you can buy the land or the shop space.
Look for materials that will be used to build or set up the shop
Once you find the land or space you will set up your shop, you need to know the materials and items that will be needed in setting up the shop.
Some of these materials and items include wood, nails, cement, water, sand, and any other item that will be needed. To find out which item that will be needed, you need to ask the carpenter and the mason who is coming to build or set up your shop.
The materials will depend on the type of shop you are building, whether a wooden shop, a building or a container. Also, you need to ask the carpenter to make shelves where the items you sell will be kept or displayed.
Perform your market research and stock your shop with products
After building your shop, you need to do simple market research at a specific location. Some people also perform their market research when looking for a place to set up the shop.
To do this, all you need to do is go around the particular place your shop is established and ask people about the items they wished they could buy in that neighbourhood but are not able to find some.
This will give you a clear idea of the items that those in the neighbourhood require. Once you find out, you then need to go to the market and buy those items to furnish your shop.
After that, you need to make everyone aware that you have established a provision shop at the location you have your shop.
Pay the required taxes
Finally, you need to find out whether there are any taxes or levies that you will be paying or not. Once you find out, you need to make sure that you pay all the required amount on the exact date.
This will prevent your shop from being closed down soon by the authorities.
After reading this article I’m sure you have realized that starting a provision shop in Ghana is not as difficult and expensive as you thought.
You can go ahead and follow the steps we have provided for you and you will see your provision shop grow in just a short period of time. If you have face any challenges, make sure to write them in the comments section below and you will be attended to.