A Complete Guide to Opening a Successful Kirana Store Business


Kirana store businesses are seen as the heart of every Indian neighbourhood. Every street corner has a Kirana store business that sells things people need daily. 

In this industry, you do not need a special or high-profile master’s degree to get by. All you have to do is research, feel enthusiastic and assured about your new firm, and establish a few goals to accomplish.

This business is built on good relationships between buyers and sellers. But because times are changing, traditional marketing methods don’t work anymore. You must improve and think outside the box when making decisions. Before we talk about how to set up small Kirana shops, let’s tell you what exactly a Kirana store business is.

What’s a Kirana Store Business?

Kirana stores are called general stores or shops because they sell things people from all walks of life need daily. They are small businesses, but if the merchant or trader has enough money, they may be able to open one with a large space and good stock. 

Kirana stores have made much more money than major supermarkets and even some of the biggest online shopping sites. In India, opening a Kirana store business is seen as a good way to make money because of this.

Steps to Open a Kirana Store Business 

  1. Have a well-thought-out business plan for your Kirana store business

Planning well is half the job. Making a well-thought-out plan for opening a Kirana store and realizing your entrepreneurial dreams will elevate you to the top. Find out how many people live in the area where you want to open your Kirana store. This will help you decide how big it should be. You must also learn how much money your target customers have and decide what kinds of items and how many you’ll need to stock to meet their daily needs. You’ll also need to set the prices of the goods and study their product choice, consumption habits, etc.

  1. Selecting a location 

Starting a Kirana store business relies heavily on picking the correct spot. Locals like and go to Kirana stores because they are easy to get to on foot or by public transportation. Make sure you choose a residential area without a small general store, because the less competition there is, the better the sales. This is why many people choose to open a Kirana shop in a village, where there is less competition than in a semi-urban area. 

Choose a place to rent or lease that is safe, easy to get to, and cheap for you. After this, you will be well on creating your own Kirana store business or purchasing a Kirana shop franchise.

  • Know your customers

Most of the time, the store’s target customers are those who live within 1 to 1.5 km of the store. It is important to figure out what kinds of products customers want. A sudden rise in sales of chocolates and gift items, for instance, may indicate that the buyer demographic is young. It requires the retailer to maintain a larger-than-usual supply of these things. Try to grow in newly built areas so that people can see you. You will immediately become the go-to place for necessities and other goods.

  • Getting funds for your Kirana store business

Preparing a budget for the start-up costs and expenses is crucial to determining how much capital will be needed to launch a Kirana shop. To open a small business, you will need less money and staff to get it up and running. Big Kirana store businesses require large investments and many employees to run well.

There are many ways to fund your Kirana store business, but an unsecured Kirana shop loan is the most popular. You can also set up your Kirana store with the help of a short-term loan with terms of up to 2 years. These loans may have a high-interest rate because they are not secured. 

Another popular choice is to apply for a micro, small, and medium-sized enterprise (MSME) loan. The government’s Mudra plan provides up to Rs. 10 lakhs to fund entrepreneurs as they launch or grow their enterprises. However, most commercial loans call for established business history, proof of annual revenue, a solid business strategy, and other extensive paperwork.

  • Learn about your rivals

Visit nearby supermarkets and department stores to get a feel for how things work and run. Note how the store is set up and which products are often sold. Try to find new ideas and chances.

  • Add on new services 

People like to be treated with extra care, especially if they want to buy things from the same store often. From offering home delivery to making your store look nice, you can think about other ways how to set yourself apart from other shops in the area. Learn what other Kirana stores are doing, then seize an opportunity.

  • Offers & Discounts

You can keep customers by coming up with interesting plans, deals, and discount policies. The main goal is to keep people coming back to your Kirana store business by giving them regular service.

It is wise for a new convenience shop to use all available means of promotion to let the community know it has opened. Mobile marketing is a cheap way to stay in touch with customers and get the word out about your business.


Kirana store businesses are a great way to earn a good income. While they require an initial investment, you can expect to earn from day one. Not only that, Kirana store businesses offer a good margin for merchants. Family members can easily manage them in the absence of the primary owner.

Young business owners in India will benefit greatly from starting such a business in India. You will be better equipped to launch a successful Kirana business that will grow to great heights with a startup business loan. 

If you want to learn more about starting your own small business, check out more blogs on Piramal Finance. You can also access a wide range of finance products and services on their website.