In this series, we will look at the businesses in the various stages of the Supply Value Logistics Chain, instead of looking at specific businesses, we will take an abstract look at the value chain in this link of the supply chain. This can be used as a guideline or framework to choose a business idea.

This is part of a series on How to Start, Run, Grow & Fund a Business in South Africa. These pages have to be read in order:

  1. How to Start, Run, Grow & Fund a Business in South Africa (using what you currently have)
  2. Choosing the right Business Idea for You
  3. Writing the Business Plan
  4. Supply Value Logistics Chain – Research and Understand Your Industry
  5. Raw Materials Business 
  6. Equipment Business
  7. Skills Business
  8.  Manufacturing Business 
  9. Distributor Business
  10. Wholesale Business
  11. Retail Business
  12. Test if Business Idea is right for you

Today we will look at the retail business. A simple Supply Value Logistics Chain will look something like this:

Retail is the sale of goods to the public in relatively small quantities for use or consumption rather than for resale. It is the most common and popular of all small businesses and has the lowest level of entry. This is just buying and selling. Buy for R1 sell for R2. But it’s not that simple you still need the right product in the right place at the right price.

I will only be focussing on new goods here. I will look at secondhand and other retail on other pages.

This business usually buys from a wholesaler and sells to a consumer, but it can also buy from a distributor or even direct from the manufacturer. This is the final link before we get to the consumer in the supply chain.

The most common retail strategy is buy in bulk and resell in smaller quantities. This is your spaza shop in the township, your house shop in the Cape Flats, your corner shop in the upper Cape Flats, your convenience store in the suburbs, but it’s also your PicknPay, Shoprite, Woolies all retailers. But retail is not just about food any product can be sold retail.

Now this is a business that anyone can start, and many have had a taste of retail when they sold something in the classifieds. The problem, of course, is that many products are already sold so getting the right product to be sold to the right consumer is the hard part.

Retail Business Ideas on Khoi Capital
Buy and Sell Firewood
Buy & Sell “Back to School” Stationery Supplies
Buy & Sell Shade Cloth
Open a Bed and Mattress Shop


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