Convenience Stores
The Challenges and Rewards of Owning a Convenience Store
Convenience storeowners, whether independent or franchisees, face several challenges that are not shared by other types of retailers. However, the rewards of owning a business that thrives in both good and bad economic times certainly offsets the added hurdles one must face to do so.
A $500 Billion Industry
There are nearly 145,000 convenience stores in the United States. These stores post total revenues of more than $500 billion, more than half of which derives from gasoline. Chains such as 7-Eleven, Circle K and AM-PM Mini Mart are familiar sights in both urban and rural areas across the country. Millions of people fill their gas tanks at a convenience store every day, or stop in before work for that first morning cup of coffee.
An entrepreneur interested in opening a convenience store will have to decide whether to explore franchise opportunities, or launch as an independent retailer. As the market is dominated by franchises, the independent store might have a more difficult time breaking through, but can succeed with the right location and ownership.
As with any business, however, the more time that is devoted to research and education, the more likely the result will become a stable, profitable venture.
Comcash offers several resources for entrepreneurs considering ownership of a convenience store, or those already in the process of building or purchasing this unique type of retail establishment.
Tips to Get You Started
Sometimes the number of details to address when starting any new business can be daunting. Opening a convenience store carries additional considerations that must also be fulfilled, or the owner may face a wide assortment of legal concerns.
Here is a brief overview of some of the most prominent issues. For additional information, other resources are listed below.
- Franchise or Independent?
As stated above, the industry has several prominent international brands already established. With a franchise you'll receive help in getting started, but pay for the privilege of this assistance and instant name recognition. You'll avoid the franchise fee with an independent store, but will now be in competition with the 7-Elevens of your community for customer loyalty. - Hire an Attorney
Since you will have to deal with federal, state, city and country rules and restrictions regarding the sale of alcohol and the location of your store, it's advisable to hire an attorney experienced in such matters. - Safety First
A security system, particularly one that incorporates video surveillance, is an essential step to protecting your customers, employees and inventory. - Customer Service is Key
What separates one convenience store from another? While location is the most important factor, customer service can also make a difference. To make certain your business is keeping the "convenience" in convenience store, invest in an efficient and reliable POS (point-of-sale) system to expedite purchases so customers can get in and get out on their schedule. - Get Organized
Even after legal and zoning issues have been resolved, running a convenience store business means keeping track of customer and product data and using that information to better serve your market. Many POS systems, such as the one provided by Comcash, also offer inventory management and back-office administration reports that can impact management decisions. - Check out the Competition
What are convenience stores in your city doing to attract customers? More important, what are they not doing? By visiting your competition, you will not only find ideas that can be adapted for your store, you may discover an untapped niche that your business can serve.
More Resources
Read our whitepaper on "The Convenience Store Owner's Strategies to Success"
Check out our FAQ page for answers to the questions many prospective convenience storeowners ask.
Take a Closer Look at our Hardware & Software:
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