How to start departmental Store?

How to start departmental Store?

According to us, starting a departmental store is not a complicated task if you are familiar with the business products, rather I would say that it’s not so tough for those people who do not know departmental products because it is an independent business that anyone can start and replace their identity in this business, only you should know about the rate or price of the products during purchase the products from vendors.

You know what, departmental business is mostly done by those people who have little qualifications and don’t want to do jobs in any field or can’t establish any big organization that’s why they choose this business line and start earning profit. Trust me, this line also contains a huge profit after setting up and takes a time to establish in the business location.

Benefits of starting a departmental store

There are so many benefits when you are deciding to start a business such as:

Start a Home departmental store

If you have no budget to purchase a shop for rent or can’t find a brilliant location so you can start from home also so that your nearby people can come and buy your products if your product is healthy.

This is the first step to build trust with a customer who lives in your nearby location (neighbors) because neighbors like to prefer to buy products from shops nearby their homes so that they can easily buy products at any time.

If you set up a home departmental store, you can save money on land and so many rental charges such as electricity bill, water bill, maintenance charges. 

You can put all grocery products, all things that should contain in departmental stores like chemical products, cleansing products, food products, and so many things.

Low investment

Departmental store business contains not a huge investment because you can start from low investment for establishing the business as a startup in a locality, It is a local business which does not contain so many efforts but needs to concern about products price, quality, and safely stores in a warehouse so that they can put safely in the store.

Huge profit

This is a free and local business that anyone can do easily and earn huge profit with low investment, you just find a trusted vendor who is the supplier of this business products and provide high-quality products to the retailer so that you can easily buy trustable products from them.

You need to make free transactions between you and the supplier to maintain the flow of goods or services and also need to build trust.

Women also make an identity in this business

Yes, of course, women can also do this, if they want and not so much highly educated and other way, women can also help their husbands in this business, if their husbands are not active in a shop, but to perform and become a part of this business, they also need to familiar with information of business products such as rate, quality, availability of resources.


To set up a departmental store, you don’t need any high qualifications, only must have a quality of doing quick calculations because, in department stores, customers come in bulk together to buy products so you need to know about basic mathematics for making bills of customers.

Set up an Online departmental store

You can construct a departmental store online as well as offline so you can also easily explore your business in the field of departmental services by making your business website. After establishing the business on digital platforms, you need to be active on top social media sites for business to explore your business products blog, and need to post informative content with a high-quality image of your goods or services.

You can offer your business services on so many social shopping sites like Amazon, Flipkart, and so on and get an opportunity to build a social trust also.

Sell a product through a salesman

You can also sell your products through a salesman so that they can easily provide door-to-door services to the customers by exploring and selling your goods or services by which you can sell your products quickly.

Also start this business in partnership

If you are not able to start a business or not financially strong so you can build your build departmental store in partnership with other experienced business entrepreneur, friends, 

If you work with an experienced entrepreneur so it is beneficial for your business as well as for you because experienced entrepreneurs have an existing image in the market and business market by which you don’t need to spend a lot of time to build trust inside customers, and vendors. 

Take a franchisee

If you decide to invest the maximum budget to build a brandable departmental store, you can take a franchisee of so many brands through International Franchise Association (IFA) along with the complete legal procedure.

The way to construct a departmental store

To set up a departmental store, you need to take some basic steps of every business such as:

  • Make business plans
  • Arrangements of capital to invest
  • Create Market strategies

Departmental store business plan

The first step in every business is to start a business plan for future events like business contingency plans. In business plans, you need to plan about your goods, dealers, vendors, strategies, budget, location. Business plans contain all other next steps and are mainly set for high accuracy in business so that business can do inflow.

You need to take each step very comfortably and securely because if you will not make a business plan attractive so how can you improve your business in less time. Plans discuss in business plans:

  • Business startup budget
  • Resource planning
  • Management of stock
  • Choose a well-reputed vendor
  • Research in the market about your goods

Arrangement of capital to invest

You need to arrange capital for investment like startup capital (also read what is startup capital).

You can invest your capital or if you have not your capital so you can take a business loan from banks or other financial institutions, family, and friends. 

Create market strategies

While preparing business plans, you need to be concerned about market strategies, make strategies for effectiveness in business so that it can easily run business. For making market strategies, you can hire market consultants so that consultants can smoothly access your business in the market and make a successful identity in the business.

After fulfilling these plans, you need to move forward with additional steps:

Resource planning

After fulfilling the above arrangements, you need to move for resource planning so that you can plan what type of products you want to sell. You have to do this also according to your business startup budget so that you can never face problems in future transactions.

Choose a posh location

If you establish a business in a posh area so it is beneficial for you because rich people like to prefer to buy products from brandable departmental stores if you set up in those areas so you definitely can achieve maximum profit.

Choosing the best location is a crucial part of every business so that businesses can explore fast. The location depends on the scope of business and also makes the scope of your business. Always choose a location according to the size of the business.

Choose Reputed vendors

For purchasing stock, you need to interact with reputed vendors who have good professional identity and provide high-quality services to their retailers. 

Vendors can be any wholesaler, other entrepreneurs of any big organization who sell goods to the retailers, salesman, and consumers at a different price. Every supplier has different values in the market and different product quality, price. 

Must check things while purchasing goods from vendors for departmental store

Always check the expiry date

You need to check product expiry date or time, manufacture date, and so many things at the time of purchasing a stock for consumer protection, if you sell expired products so consumers can take legal action against it by putting legal notice through the consumer protection act.

Always check label

You need to check the label on products such as manufacture date or time, address of manufacturing company, phone number and fax number, the logo of the brand, and so many things.

Labeling is a must on products because of manufacturing company identity so you have to be concerned about it also.

Maintain legal agreement

You need to maintain a legal agreement with vendors or suppliers so that you can never face obstacles in the future. It contains contact time, date, periods of contact time. To maintain legal procedure, you must follow some legal guidelines mentioned by vendors. You can also add legal guidelines if you want for future protection.

Products promotion through advertising

If you want to spread your business fast and also be active on social platforms so you can do advertising on social platforms. 

If you want to explore your business on a high level and you have a huge budget, you can promote your business products on televisions, radio, and so many platforms. You can promote by doing video marketing also.

Hire workers 

If you can’t handle the business smoothly so you can hire workers as helpers who sell your products to the consumers inside the shop or outside the shop. For big departmental stores, workers must be available in store to manage customers effectively. 

Keep maintain store with extra beneficial services

To make attractive stores, you can give extra benefits to attract customers such as discount offers, sale so that consumers can easily attract towards your business and always connect with your business store

You can also maintain stores with air conditioners, proper valuable facilities to the customers by providing accuracy, comfort in conversation with consumers and also teach the consumers about goods.

How to start a departmental store franchise

If you want to reach your business to a successful world, you need to require some huge investment which helps you to make your business brand all over the world. In simple words we can say that if you build your business by purchasing a franchise it’s a good decision, it will reach you in the successful world. But before that, you need to fulfill some legal procedure to get a franchise because during the franchise business you may face some ups and downs so you will have to complete all the possibilities which give you the best opportunity in your business. To get a franchise, you can go through the franchise directories.

Franchise directories

Sometimes business owners confuse before buying any franchise what franchise they should buy and which provide them quick success so it’s easy if you are ready to find. There are so many franchise directories from where you can choose which is in your budget. 

After finding your franchise, you will need to go for the next step ” start a departmental store franchise”

Require funds for investment

The Franchise needs a good investment in business because it’s a brand that gives the business success in less time. It’s not that after purchasing a franchise you don’t need to do anything for your business, no it’s wrong because every business needs a startup action so that their business car runs towards first success. 

Franchise Investment depends on the size of the business, a huge investment for huge business and low investment for small business.

Business place

If you start a small business without buying any franchise you can choose any place like a nearby house location, colony because your business is not connected with any brand. But if you start a business with the franchise you will think about their reputation so you need to choose a franchise industry area to build your business so that you can connect with other franchise business owners and competitors to know about market status, scope, and condition.

Choose products

Now come to the main point which is your store products. You have to think about your store products that you will sell to your customers and make a budget which will give you insight and get a chance to beat your competitors.

Business registration

Without completing the legal procedure, you cannot move to the next step because this is the crucial step to begin a journey of the franchise business. This action is taken to avoid future discrepancies by interacting with the government to fulfill the legal policies required in the departmental business franchise.

Design your store with franchise product banners and postures

After setting up the business, you can make your departmental store with your selected franchise banners, postures, stickers, schemes to attract potential customers and also make a chance to show your interest, and experience by selling your store products with proper description. In simple words, you have to make your store colorful with your products.

Are department stores profitable?

Yes, Why not, it is profitable if you have fixed your mind to open your departmental store so it’s your good startup. 

After setting your mind, you think about how much investment is needed to start a departmental business?

Now you think about it and start to make a budget for your business, a budget is a necessary thing for proper investment of funds. With the growing technology, every small and big business requires a good amount to start a business. But you should know the one thing too, along with investment you need to focus on maintaining goodwill which is earned by reputation and reputation is earned by good business and good business is earned by good dealing of goods or services.

Every business has a profit but it is hidden because if the business will show the profit at the beginning, then the owners will put some effort into it. Earning profit is a mind game that can be done by both utilizing physical and mental strength.

Profit does not depend on the business niche, but business activities decide profit in business so if you will run your business on a good track so you can touch the peak to get big success in business.

Profit gets in the last but before that, you need to do some business activities and necessary to handle with a proper schedule such as holding stock, maintaining inventory, maintaining transactions of sales and purchases to get better revenue.

On the other hand, people ask about profit in this business so we can explain also with some points:


The First step is an investment, investment is required in every business to start and grow in continuity. We can also say that profit depends on the business activities, get more profit by investing potential power in business activities.

To calculate the profit is not a hard thing, earning profit is hard enough because first, you have to start with the sales with fewer expenses then you will get an actual profit of the business. Expenses such as rent, salaries and benefits of employees, electricity, business tax, stock amount, cost of advisors(financial and marketing), transport expenses, and many more.


Competitors can be the reason for earning the profit in business. Now you will think how competitors can help us to make a profit?

Competitors give the strength to the business owner to find out competitors and goals. For beginners, keep the focus on competitors so that you can find out their values, how they invest, how much they earn, and many more.


Consultants help us to find the actual condition of the market by using data through graphs, charts, and other representor things. Competitors are the right hand of the business which act as a researcher to analyze the value, status, and goodwill of the business in the financial marketing.

Maintaining sales and purchase transactions, bills, expenses, revenue, and other things

With the help of accounting software, you can maintain your sales and purchase invoices, bills records, verify expenses with the purchase, calculate revenue, and reduce the chances of errors.


Profit also depends on shares invested by investors. Investors are really important for increasing the quality of business and show the supported system for business. 

Investors are like the supporters who give the reason for the business to survive in the business and maintain the flow of goods or services. 

How much investment to start a departmental store

Before taking a step towards a new business, the first question we strike in our mind is how much investment is required to start a departmental store and to know more about it, we can search on web browsers so that we can calculate the actual estimate and set our budget for everything. Without a budget, we shouldn’t take a crucial step due to a misbalance in investment. 

Now you are thinking about why an investment plan is required for the further process? So yes, an investment plan is required for the further process so that we can arrange business activities according to having a business budget. Investment in things can be of many kinds such as:

  • Goods or services
  • Capital
  • Creditor
  • Franchise
  • Workers
  • Location
  • Godown 
  • Market strategies
  • Marketing consultants

As a business owner, we have to make investments very carefully and smoothly. If we see, the departmental store does not contain a huge investment due to count as small or medium business. Buying the right products with the right investment leads to success. Investment should be done when we are sure that we have arranged the business activities and we have enough capital to invest in those activities. 

If we are confused about the investing process, you can take support of analytics software where we can make our budget so that we can understand where we need to invest and how much. 

Actually, investment is based on things like the size of the business, product brand, quality of services, labor cost, transportation cost. All these things matter in the investment process and for computing the investment budget, we need to count all the activities according to a budget list and budget list when we search more about these activities. 

The starting cost of investment to start a departmental store is around $2500 to $3000.

The Basic cost required in departmental store business

Land cost

If we purchase the land to set up a store we have to pay only a one-time selling cost to the seller but if we put the land on rent we have to pay rent charges with electricity charges to the lender. It also includes expenses.

Registration cost

Before starting a business, we need to take some legal steps like registration of the business. It includes registration costs which need to be paid to the registration office to make our business legal so that we can’t face any legal charges.

Products cost

Without products, we can’t start our business so we need to pay production costs for getting goods or services regularly.

Additional Cost required in departmental store business

Expenses such as rent, electricity

These types of expenses contain costs before starting a business but later, revenue covers these expenses. 

Legal expenses

Legal expenses like insurance, licenses, software for maintaining accounting records. These are some legal expenses that contain huge costs before starting a grocery store. 

Consultants cost

Consultant cost is necessary for the business because they are like a piece of information provided so that we can earn more revenue by more sales.

Furniture cost

To set up our store with designable things like shelves, interior, racks so that we can put the product on it with proper arrangement.

Digital cost

Digital costs may be a website, phones, internet, payment mode, and many more things. These costs are necessary for running a suitable business and we can transform our business digitally with these things so that customers cannot face any obstacles during payment with a payment machine-like Paypal, Googlepay. On the other hand, by making a business website we can explore our business across the country and take online orders also if we want to make our business into international business.

Workers cost

When we set up a business, we need workers according to business size. We need to pay salaries or wages plus incentives to the workers.

Other costs

Other costs like a business product banner, pamphlets to promote our business. If we have enough budget we can deal with advertisement agencies or promote business products.

Transportation cost

Transportation cost incurs when we provide online service to the consumers so we need to arrange a vehicle for delivery boy so that they can deliver fast service