Grocery
Rural Grocery Profit Simulator
This program is designed to give a potential business owner an opportunity to evaluate the financial implications of opening a small grocery store in a specific rural setting. Starting with a review of the potential market area, the program will look at potential revenue, estimated expenses, and ultimately calculate an estimated profit or loss based on the user inputs. A detailed report explaining all of the calculations used will be provided upon completion of the program. Users can “tweak” the inputs used to evaluate the impacts various changes will have on the bottom line.
Rural Grocery Profit Simulator
Rural Grocery Profit Simulator Instructions and Explanations PDF
Rural Grocery Toolkit
Full Report
When making a decision to go into the grocery business, particularly in a rural area, there is much to consider and a great deal of work to be done. To help walk through the process we are providing two tools that potential store owners may find useful. First, we have identified what we believe are many of the key success factors in the rural grocery business and organized them into 12 subject areas. Interested individuals can read through all of the subject areas by scrolling through this document or can return to the top of the page and choose the topics of most interest.
Module 1 - Rural Grocery Ownership Models
Explore the alternatives for the legal structure of your grocery store business, along with the respective advantages and disadvantages of each. We will review Sole Proprietorship, LLCs, and Corporations, as well as several other alternative business models to consider.
Module 2 - Funding Sources Available to Rural Grocery Stores
This module lists various organizations who can help business owners secure financing of a retail store, along with a brief description of each.
Module 3 - Compliance to Regulations
A review of the various permits, licenses, and insurance that may be required or recommended for a grocery store.
Module 4 - Locating Your Grocery Business
Here we discuss key factors to consider when choosing a location of your grocery store. We discuss community selection, purchasing an existing business, buying an existing building, or constructing a new store.
This module provides insight into the various costs associated with opening a grocery store, defines expenses that can be considered start-up costs, and describes how to account for these costs.
Module 6 - Departments and Layout in a Rural Grocery Store
This module examines factors to weigh when determining departments to include in a grocery store and how to optimize store organization for maximum sales and profitability.
Wholesale distributors often provide much of the product sold by a rural grocery store, but other national, regional, and local suppliers must also be arranged. These are all discussed and contact information for a number of resources is included.
Module 8 - Margins and Pricing in the Rural Grocery Store
This module considers suggested margins for departments within the store, and how to set prices to achieve a desired margin. Blended margins are also discussed.
Module 9 - Rural Grocery Operations
This module gives an overview of grocery store operations. Topics include staffing, training, customer service, accounting, technology, and store maintenance.
Module 10 - Marketing for Rural Grocery Stores
Explore marketing strategies new and old and learn of resources that are available to help develop your store’s marketing strategy.
Module 11 - Grocery Innovations and Ideas
This module explores some of the many ways grocery stores are innovating to remain competitive in an industry with razor-thin margins.
Here we discuss key trends in the grocery industry, particularly those that could be relevant to rural grocery stores. For example, a few of the trends covered include online ordering, ready-to-eat meals, and product sourcing (local, sustainable, etc.).
Module 13 - Financial Statements
This module provides a basic overview of the most common financial statements a grocery store will use. These include the Income Statement, Statement of Cash Flows, and Balance Sheet.
Appendix
Table of Contents:
Exhibit 1 – Sample Business Plan
Exhibit 2 – New Grocery Checklist
Exhibit 3 – Detailed Income Statement
Exhibit 4 – Summarized Income Statement
Exhibit 5 – Detailed Balance Sheet
Exhibit 6 – Summarized Balance Sheet
Exhibit 7 – Detailed Statement of Cash Flows
Exhibit 8 – Summarized Statement of Cash Flows
Exhibit 9 – Sources and Uses of Funds
Midwest Independent Grocery Stores
The USDA states that one of the most consistently referenced data points for vibrant, sustainable communities is a robust and diverse local economy. An essential element of a healthy economy is a thriving set of small businesses. The Center for Rural Affairs argues that the independent and locally owned grocery store is one of the most important businesses in a small town. The local independent grocery store is an integral institution for communities and part of the critical infrastructure necessary for keeping a community vibrant and viable. These stores are critical to sustaining community vitality by generating economic activity, enhancing sense of place, and providing food access.
