How to start a sari-sari store in the Philippines

September 29, 2026 · 3 min read

Most sari-sari stores do not fail because nobody buys. They fail because the owner cannot tell whether the store is making money. Here is how to start one properly.

1. Pick the spot before the stock

Foot traffic decides almost everything. A store beside a school gate, a jeepney stop or a basketball court sells more than a bigger store at the end of a quiet street. Before you buy anything, stand at the spot at 7am, noon and 6pm and count who walks past.

Check who else is nearby. One other store within a few houses is normal. Three means you are splitting the same customers, and you will need a reason to be chosen, like longer hours, cold drinks or load.

2. Start with what sells every day

Your first order should be small and boring. Buy the items people need daily, not the ones that look good on a shelf.

• Rice, cooking oil, sugar, salt, eggs
• Instant noodles, canned sardines and corned beef
• Coffee sachets, powdered milk, bread if you have a supplier
• Shampoo, soap and detergent in sachets
• Softdrinks, water and ice if you have a freezer
• Cigarettes, candies and biscuits by the piece

Keep the first stock light so you learn what moves. After two weeks your sales will tell you what to reorder and what to stop buying.

3. Get the permits in order

Requirements differ by city and municipality, so ask at your municipal or city hall first. For most small stores the usual steps are:

1. Register your business name with the DTI.
2. Get a barangay clearance from your barangay hall.
3. Apply for a business or mayor’s permit at the city or municipal hall.
4. Register with the BIR so you can issue official receipts and file taxes.

4. Price for profit, not just to be cheap

A common mistake is copying the price of the store next door without knowing your own cost. Write down what you paid for each item, including the fare to the grocery. Then add your markup. We explain how in our guide to pricing products for profit.

5. Decide your rules on utang early

Credit brings in regulars, but unpaid utang is the fastest way to lose your capital. Decide from day one who can borrow, how much, and when they pay. Write every utang down the moment it happens. Our guide on tracking utang covers a simple system.

6. Record every sale from the first day

If you only count the cash at night, you know how much came in but not what sold, what it cost you, or what is running out. Even a notebook is better than nothing. A POS app on your phone does it for you: every sale takes the item off your stock count and shows the profit for the day.

This is what we built Tindro for sari-sari stores to do. It works on the phone you already have and is free for 30 days.

Questions