11/04/2024
Sari-Sari Store
A sari-sari store business is among the most common small businesses in the Philippines. It can even be argued that it’s the most common one. You can also find a sari-sari store on almost every street in the Philippines.
Commonality aside, setting up this type of business becomes easy since you can put up a sari-sari store in front of your house. The term sari-sari roughly translates to variety. This means that you can sell various items in a sari-sari store. These items can range from shampoo and soap to garlic and onion. You can even put up a loading business (more about this later) with a sari-sari store for more income.
In a gist, you can sell just about any type of everyday product in a sari-sari store. When managed properly, a sari-sari store can be a great source of income. Sari-sari stores have an average net profit margin amounting to 20%. There are many reasons why Filipinos put up sari-sari stores.
For one, a sari-sari store requires low capital. 93% of sari-sari store owners set up the said business in front of their homes. They also do not have to do major renovation work to set up sari-sari stores, as the business does not require big and open spaces like convenience stores. You can also get loan from the government for your initial capital. In addition, the initial capital for approximately one week’s worth of products starts at as low as 10,000 PHP. The capital may go down if the sari-sari store is small.
Second, a sari-sari store describes a straight cash business. Credit and debit cards don’t get accepted. If you open a sari-sari store, you don’t have to worry about not having enough cash to buy next week’s inventory. As long as you manage your earnings properly, of course.
