How to Start a Sari-Sari Store: Tips, Strategy, and More

Many Filipinos consider sari-sari stores their bread and butter. According to the Asian Preparedness Partnership, there are about 1.3 million sari-sari stores in the Philippines.^[1]

It’s one of the easiest and most popular businesses to start in the Philippines. However, learning how to start a sari-sari store business requires research, planning, and capital. Many sari-sari stores fail because of poor management and inventory.

If you plan to put up your own sari-sari store, here are essential things you need to know to launch a successful business.

**What is a Sari-Sari Store Business?**

A sari-sari store is a small neighborhood retail store in the Philippines that sells basic and daily essential needs. It’s usually individually or family-owned.

You can find one in almost every street corner in the country. Instead of going to the supermarket or convenience store, just walk to the nearest sari-sari store and buy what you need at a more affordable price.

**Why Should You Start a Sari-Sari Store?**

Opening a sari-sari store is like taking a first peek into life as an entrepreneur. It’s a legitimate business operation that can turn a good profit if you manage it well. Thus, operating a sari-sari store will give you a good business experience.

Because you can open a store right from home, you can save money on construction or rental space. Plus, aside from the low capital requirement, a sari-sari store is simple and fast to set up.

What are the Disadvantages of a Sari-Sari Store Business?

As mentioned, there’s a sari-sari store on almost every corner, which means you’ll face some stiff competition. That’s not counting 24-hour convenience stores, mini groceries, and major supermarket chains.

The profit margin might also be small because your main selling point is convenience and competitive prices.

Moreover, not all sari-sari store owners take care of their inventory correctly. Sari-sari stores therefore have a reputation for selling poor-quality products, negatively affecting other store owners with proper product displays and inventory management.

How Much Can You Earn with a Sari-Sari Store Business in the Philippines?

According to a study conducted by analytics startup Packworks, sari-sari stores in the Philippines earned more than ₱8 billion in 2023, over 21% higher than last year’s ₱6.6 billion.^[2] So yes, it is a profitable business venture.

Financial consultant and business coach Chinkee Tan also said that a sari-sari store has a profit margin of 10% to 40%, depending on the products sold.^[3] To achieve this, your financial goal should be a daily revenue of ₱5,000 in the first three months and an increase in sales by 10% to 20% in the first year.

**How to Start a Sari-Sari Store**

Ready to learn how to start a small sari-sari store at home? Follow these five easy steps:

**Step 1: Create a Sari-Sari Store Business Strategy**

Even if it’s just a small store you’ll put up in your house, you need a sari-sari store strategy.

It may sound intimidating and complicated. Still, you need a business plan if you want your store to go in the right direction.

Before you can set up your sari-sari store, think about these points:

Target market - Who are your target customers? What are their pain points? Do they live far away from the nearest convenience store or supermarket? Determining this will help you decide which products to sell in order to offer convenience and affordability to your customers.
Location - Where do you plan to put up your store? Will it be in a residential area or near schools, offices, and main roads? The higher the foot traffic, the more customers you can attract, and the bigger your sales.
Business capital - Once you determine your target market, location, and products to sell, you can get a reasonable estimate of your required capital.
Legal requirements/business permits - To be a legitimate business, your store should have a DTI business name registration, Tax Identification Number, Mayor's Permit, and Sanitary Permit, just to name a few.

Step 2: Prepare Your Sari-Sari Store Start-Up Capital

How much capital do you need for a sari-sari store? If you plan to set up a store at your house and sell only essential commodities, a start-up capital of ₱20,000 should be sufficient. With this capital, you can buy the following sari-sari store basic needs for your stock inventory:

🛍️ Dry goods

Sardines
Corned beef
Tuna
Pineapple juice
Creamer
Egg
Ketchup
3-in-1 coffee
Food mix enhancer
Powdered iced tea
Powdered orange juice
Evaporated milk
Sinigang mix
Lechon sauce
Cooking oil
Sugar
Fish sauce
Vinegar (in plastic pack)
Soy sauce (in plastic pack)
Noodles in plastic cups
Candies
Pancit canton noodles
Noodles (soup)
Tomato sauce
Meatloaf
Batteries
Diapers

🛍️ Toiletries

Shampoo
Conditioner
Body soap
Toilet tissue
Toothpaste (in sachet)
Sanitary napkin

🛍️ Laundry products

Detergent powder
Detergent bar soap

🛍️ Drinks

Bottled soft drinks
Bottled water

You can increase your business funding to ₱30,000 or ₱50,000 to include other fast-moving sari-sari store needs. Meanwhile, with a sari-sari store start-up capital of ₱70,000 to ₱100,000, you can sell a wider variety of goods in larger quantities.

However, aside from the goods, consider the cost of materials and labor if you construct your sari-sari store. The same goes for renting the store space; purchasing a freezer and additional display cases, storage cabinets, and shelves; or hiring storekeepers.

Step 3: Secure Your Business Registration, Clearances, and Certificates

To legally operate your sari-sari store business, you must secure its registration and all the necessary permits. Fortunately, most local government units have a one-stop shop for business permit processing, registration, and clearances.

All you need to do is submit the required documents, which usually include the following:

Cedula
Barangay clearance
Sari-sari store name (at least three options) for DTI business name registration
Notarized affidavit of capital
Sanitary permit
Fire clearance
Tax Identification Number
SSS Number
Philhealth
Pag-IBIG

Step 4: Build a System and Workflow

Keep track of your beginning and ending inventory. You can do this manually in a notebook or via software or spreadsheet. Consider getting a POS system for sari-sari stores to automate everything and save time.

Track every sale and expense religiously. It’s also essential to keep your stocks at 50% so you won’t run out of items to sell.

You can even hire a storekeeper and teach them sari-sari store business tips. Your storekeeper will run your business for you, from taking inventory to transacting with customers and keeping the store clean and organized.

**Step 5: Market Your Sari-Sari Store**

Ensure you have a clean, well-organized, and visually appealing display to draw people to your store. Your sari-sari store name should also be easy to remember and prominently displayed.

Take advantage of word-of-mouth marketing from your customers and the community. You can also partner with other businesses in your area for promotions and loyalty programs.

**How to Manage a Small Sari-Sari Store**

Here are some sari-sari store negosyo tips to remember so you can succeed in this business venture:

Don't go overboard with your initial inventory. The last thing you want is to fill your store shelves with items that don't get sold. So start with a few items, determine the fastest-moving ones, and then buy more the next time you need to replenish them.
Religiously and accurately do your accounting. List all the items sold to know how much your store earned for the day.
Keep your personal funds separate from your sari-sari store funds. If you must spend your earnings, use only 10% to 20% of it and the rest for stock replenishment.
No credit. Be firm about this policy if you don’t want the headache or the stress of collecting payments.
Provide exemplary customer service if you want loyal customers. Seeing a friendly, smiling face and someone eager to help at the sari-sari store window is definitely a plus.

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Final Thoughts

Now that you’ve learned tips on how to start a sari-sari store, reflect on whether it’s something you want to pursue to earn additional income.

Moreover, if you have a credit card, use it to buy your sari-sari store supplies and enjoy rewards, rebates, friendly installment terms, and more. Apply via Moneymax today!

Credit Card	Perks for Business Owners
UnionBank Rewards Credit Card	1 point per ₱30 spend 3x points for shopping locally and abroad
UnionBank Lazada Credit Card	₱6 Lazada Wallet Credits per ₱200 spend at Lazada ₱1 Lazada Credit per ₱200 spend at other merchants ₱50 monthly shipping vouchers at Lazada ₱500 discount vouchers for 5 Lazada Sales all year round Priority access to Lazada Sales Discounts from selected Lazada merchants
Metrobank Platinum Mastercard^®	1 rewards point for every ₱20 spend eCommerce purchase protection of up to US$200 0% installment at partner merchants
HSBC Red Mastercard	1 point for every ₱20 spend 4x points on shopping, online, and overseas transactions
HSBC Platinum Visa Rebate	5% cashback on shopping transactions 0.50% cashback on all other purchases
Security Bank Gold Mastercard	1 point for every ₱20 spend Secure online shopping with SecureCode