Are you ready to start your own sari-sari store business, or have you already started one? Being able to manage profit and small loans will be vital in the success of your negosyo. Read about three very important aspects that will help you. These are positive credit, increasing profit, and reducing expenses.
Positive Credit
Building a positive credit history is very helpful for any enterprise, and is especially helpful for small businesses. Building a positive credit history just means that you can manage your responsibilities, can pay bills on time, and that you don’t have outstanding loans.
How can you build positive credit? The first thing that you should do is to create a budget and stick to it. Don’t expand your sari-sari store business unless you’re ready, and don’t take on loans unless it’s necessary. Be on top of all utility bills, rent, and credit card bills, and make sure to always balance your books.
If you do need to borrow money, make sure that you don’t fall back on your payment schedule. However, if you do fall back, contact your lender/s as soon as possible. Building positive credit means managing all debt wisely.
Increasing Profit
One good way to ensure that books are always balanced is to focus on increasing profit. This is especially true for small business owners, and practices need to be tailored towards actions that bring in more revenue.
There are many strategies that you can employ. The first is to see if anything needs to be changed in your operating procedures. How can your sari-sari store generate more sales, while reducing expenses? One good way to increase your store’s sales is through cross-selling or offering new services or goods that complement those that you already currently offer. If you already have your mga suki, you can also increase profit for the long term by giving incentives to these loyal customers, such as specials deals, discounts, and even small giveaways.
Speaking of mga suki, focus on applying a relationship-based sales model to ensure that customers will keep coming back to you. A sari-sari store is about building relationships within the community, so keep this in mind. Stay visible and connected with the members of your barangay or immediate area. If you are keen on expanding, you can also see if you can try to have an online retailing and delivery arm, to reach more customers.
You should also see if there are changes that need to be done with regards to how you function. Should you hire others to help with routine tasks? Are there repetitive tasks that need to be automated or eliminated? Should you hire part-time, or full-time help?
Checking on which processes and habits can be changed will eventually maximize your cash flow. To push this to optimum efficiency, you should also streamline management costs. If you have hired help, and other employees, check if they are helping the business achieve maximum efficiency. How can you attract more customers? If you have outstanding loans, how can you quickly pay them off? These are very important questions, and you need them to have streamlined management and operations.
Reducing Expenses
When you’re running a sari-sari store, you should also think of how to reduce your expenses. One way to do this is to reduce utility bills. For electricity, it has been studied that appliances make up around 13% of the monthly bill. This becomes even more important when your store grows bigger and you start selling frozen goods, as you also have to think about your refrigerating appliances. If you’re buying a new negosyo refrigerator for your store, we’re sure that you have checked the different prices of refrigerators in the Philippines. However, don’t just think about the initial purchase price; also consider the yearly operating cost. This is because energy-efficient refrigerators may seem more expensive initially, but the operating costs are a lot lower, which will lead to reduced expenses in your business.
If you’re using a refrigerator that’s older than six months, check if it’s working properly. Make sure that the coils are always clean because debris and dust will cause the heat to not flow out, which will lead to the refrigerator consuming more energy just to keep working. While you’re checking for blocked compressor coils, also check if there are any blocked vents, as this also prevents warm air from being properly released. If there are dust and dirt on temperature sensors, then the refrigerator will not be able to regulate its temperature well.
You should also reorganize the contents so that you won’t need to spend too much time looking for goods. Every time you open the door, you consume more energy. For this reason, also check the door seals for any leaks.
You should also think about where you should place your refrigerator. Do not place it next to a stove, under direct sunlight, or too close to appliances that emit heat. This will cause the refrigerator to work harder to stay cool, thus using up more electricity.
Are you ready to manage your sari-sari store in a better way? If you’re looking for the best partner for your negosyo, then the answer is a Condura refrigerator. Just like an excellent Pinoy business owner, we focus on the Filipino value of malasakit to allow us to serve our community with passion and excellence. We ensure that we make only the best products in and for the country. We know Filipinos best, and to us, the Filipino always comes first. We call our technological innovations “Filipinnovations,” because we are proud to showcase the products engineered by Filipinos specifically for the Filipino consumer.
We’ll make sure that your sari-sari business will flourish, and be of great service to your community!
