how to write a business plan for a provision store

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Top 10 Provision Store Business Plan Templates with Samples and Examples (Editable Word Doc, Excel and PDF Included)

Siranjeev Santhanam

Provision stores, some of the world's oldest businesses, have adapted and thrived amidst changing market dynamics, even in the face of competition from larger supermarkets and online platforms. They've introduced modern practices like digital payments and inventory management. Beyond shopping spots, they serve as vibrant centers for social interaction, often found in residential and bustling areas, offering convenience, variety, and affordability while contributing to local commerce.

In this blog, we will dive into a business plan template tailored to suit the needs of the provision store business niche. The template in question has been made with an exhaustive amount of data and substantiation, allowing users to grasp this business's versatile and multi-faceted nature. Download this template to access all the content within, situating yourself in the right policies to get ahead and master the market.

Table of contents

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• SWOT Analysis
• Porter’s Five Forces Framework
• Operational Plan
• Financial Summary
• Graphical Representation of Financials

1) Executive Summary

An executive summary can be a great way to open a business proposal, supplying audiences with a clear and concise overview of the business in all its essentials. Use our executive summary segment to organize the key information within the template and build a stronger connection with audiences. Describe your provision store and feature all the major data points of the proposal, using the two primary subheadings of the presentation – the quick pitch and the entity . Expand on the essential services offered, the location of the provision store, the target market, and more with the structure of this template.

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Here is another well-designed seventy-nine-page presentation in PowerPoint format that you can use to boost your provision store business. Click here to explore it.

2) Company Overview

Our company overview section can be customized to suit the needs of the provision store business, giving audiences the relevant details with strong visuals and finer tabulations. The section has been further segmented into a series of short and impressive subheadings relevant to the subject, which you can weaponize to create a more cohesive brand image. Mission and vision is the subheading starting the whole segment, and this is followed up by company goals and objectives , start-up summary , market gap and business statement key success factors, and more.

3) Industry Analysis

An industry analysis enables a firm to examine the undercurrents that shape a specific industry, providing a firmer understanding of the internal workings of the business. Decipher the market challenges central to the provision store business while also mastering the trends and navigating the challenges of the system with this segment of the presentation, tailor-made to suit your personal needs. Establish the scope, scale, and market demands of the provision store business while creating the right conditions to bridge ties with partners and attract funding. Some headlines integrated into this key presentation facet include market analysis , market trends , major challenges , growth drivers , and geopolitical analysis .

4) Customer Analysis

Good customer analysis is central to business, and with our template, you can distinguish between all the essential demands of your customer demographic pool. Understand the central needs and preferences of the broader demographic that shapes your business domain while reconfiguring your practices to attract more customers. Do all this and more with our well-curated template with many pages dedicated to customer analysis. The subsections featured within this profile include target market , buyer’s persona, and market sizing .

5) SWOT Analysis

SWOT analysis equips businesses of all domains with a data-driven methodology to know the strengths, weaknesses, opportunities, and threats that frame the workings of the business. Our template has a professionally designed analysis section devoted to SWOT, designed to create a more sustainable internal assessment for your provision store business. Establish all the diversity of market factors that could potentially steer your company’s performance and develop more effective responses to the existing conditions of the market.

6) Porter’s Five Forces Framework

Porter’s Five Forces is an analytical method that assists firms in developing more competitive practices and out-maneuvering the market. It creates an interplay of five central forces that shape the overall profitability of an industry – competitive rivalry, bargaining power of buyers, suppliers, the threat of substitutes, and the threat of new entrants. Weave this strategic methodology into your provision store business to advance your own market position and gain better profits.

7) Marketing Plan

A marketing plan is a non-negotiable feature of a business, and if you’re seeking to feature a well-designed marketing plan within this proposal, our template gives you the tools for it. This segment has been divided into smaller, more crucial segments to solidify the marketing capacity for a provision store business. Headlines to be mentioned here include sales and distribution strategy , promotional strategy , pricing strategy, and sales funnel . Break down the intensive nature of marketing and advance your competitive edge by employing this template and incorporating all these features into your marketing strategy.

8) Operational Plan

Cement your business structure and make more money, all with the help of a sound, well-thought-out operational plan. This presentation has been outfitted with a segment dedicated to creating cohesive and well-functioning business models, utilizing graphs to further this objective. The two main highlights within this presentation space are the business model and goals to be achieved .

9) Financial Summary

Use the financial summary section to create more well-integrated financial mechanisms, allowing for better performance and productivity within the business. This segment has been incorporated with a host of smaller headlines, which make for helpful substance within the financial domain. Subheadings to be mentioned here include financial assumptions , revenue model and sales forecast , break-even analysis , profit and loss statement , projected cash flow statement , projected balance sheet , scenario analysis , and DCF valuation .

10) Graphical Representation of Financials

Depict key financial data in a refined manner, using charts and graphs to enhance the overall presentation. Featured as part of this template segment are a wide array of graphical presentations, all aimed at specific financial scenarios. Highlights include ‘total revenue from profits’, ‘earnings before tax and depreciation,’ ‘cash flow statement,’ ‘breakeven analysis,’ ‘annual profit after tax,’ and more.

Do you like what you see? Understand that this is just a sneak peek, and that upon downloading our business plan ppt templates, you are given full access to the wider presentation. Take advantage of the content of these slides to create a more coherent and structured business for your provision store, building better revenue models in the process.

Dive deeper into this subject by reading our other blog, which features thirteen retail business plan samples, complete with templates and examples. Click here to read it now!

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StartBizEasy

How to Start a Profitable Provision Store: Insider Tips for Retail Success!

A provision store, often referred to as a grocery store or convenience store, is a retail establishment that primarily sells food items and other household essentials.

These stores typically offer a variety of products such as fresh produce, canned goods, dairy products, snacks, beverages, cleaning supplies, personal care items, and sometimes basic pharmaceuticals.

Provision stores are commonly found in residential neighborhoods and cater to the daily needs of local residents, providing convenient access to essential items without the need to travel to larger supermarkets.

In Nigeria, a thriving provision store can generate profits ranging from a few thousand to tens of thousands of naira per day, with monthly profits varying from tens of thousands to hundreds of thousands of naira. This makes it a profitable business to start.

Nevertheless, armed with the insights from this article, you’ll gain valuable knowledge on how to start and run a profitable provision store.

Here is how you can start a profitable provision store:

Table of Contents

1. decide on your specialty :.

When determining your niche for a provision store, you need to decide whether you will specialize in offering perishable items, non-perishable items, or both types of products.

Perishable items are goods that have a limited shelf life and require refrigeration or other preservation methods to maintain their freshness. These may include fruits, vegetables, dairy products, meat, fish, and bakery items. Non-perishable items, on the other hand, are goods that have a longer shelf life and do not require refrigeration. These may include canned goods, dry pantry staples like rice and pasta, beverages, snacks, and household essentials.

Understanding the needs and preferences of your target market is crucial in making this decision. For example, if your store is located in an area with a high demand for fresh produce and daily essentials, focusing on perishable items might be more profitable. Conversely, if your target market consists of busy working professionals who prioritize convenience and shelf-stable products, then emphasizing non-perishable items could be more beneficial.

Your choice may also be swayed by studying your competitors in your preferred business area. For example, if you observe that your competitors mainly deal in perishable goods while few or none offer non-perishable items, you can strategize effectively by entering the market with a focus on non-perishable items, or by offering both types of products if you have the capital to do so.

By tailoring your offerings to meet the specific needs of your target customers, you can effectively differentiate your provision store and attract loyal clientele. This strategic approach also enables you to optimize your inventory management, pricing strategy, and marketing efforts, ultimately leading to a more profitable business.

2. Secure Sufficient Capital:

The total capital needed to start a provision store business in Nigeria could range from ₦500,000 to ₦2,500,000 or more depending on several factors such as location, size of the store, inventory selection, and operating expenses.

This capital will be spent on several factors such as;

• Fixtures and Equipment
• Utilities (water bill, electricity and so on)
• Licenses and Permits
• Miscellaneous Expenses

Keep in mind that in the early stage phase of launching a provision store business, your priority will be to recover the expenses incurred. This implies that it might take some time for your provision store to start making profits. Ensure that you have sufficient capital to support your business during this early period.

Maintaining a financial buffer will enable you to navigate unforeseen obstacles and enhance your business’s prospects for success.

If you’re struggling to raise the necessary capital for your business, you have the option to obtain funding from various sources. Such as:

• Personal Savings : Utilize your own savings accumulated over time to invest in your business venture. This can be a reliable and readily available source of capital without the need for external approval.
• Family and Friends : Seek financial support from family members or friends who believe in your business idea. They may be willing to provide loans or investments to help you get started.
• Bank Loans : Approach banks or financial institutions for business loans. Prepare a solid business plan and financial projections to demonstrate your ability to repay the loan. Consider both traditional banks and microfinance institutions that cater to small businesses.
• Government Grants and Programs : Explore government grants, subsidies, or programs aimed at supporting small and medium-sized enterprises (SMEs). These initiatives may offer financial assistance, training, or other forms of support to help you launch your provision store business.
• Crowdfunding : Consider crowdfunding platforms where individuals or groups contribute funds to support your business idea in exchange for rewards or equity. Platforms like Kickstarter, Indiegogo, or local crowdfunding platforms can help you raise capital from a wide audience.
• Trade Credit : Talk to your suppliers about getting good payment terms. This means you can get stock without paying straight away, which helps save your money at the start. However, they might ask for someone to guarantee the payment, especially since you’re new to the business and just starting to build a relationship with them.
• Partnerships : Explore partnerships with suppliers, distributors, or other businesses in the industry who may be willing to provide financial support or assistance in exchange for mutual benefits or collaborations.

Each option comes with its own advantages and considerations, so carefully evaluate which sources align best with your business goals and financial situation.

3. Select a Prime Location:

Some successful provision store owners might claim, “location isn’t everything. As long as you stock your store well, customers will come from afar to find you and make purchases.”

While there’s some truth to this, rather than waiting for customers to seek you out, why not invest your efforts and resources in securing a prime location? This way, it’ll be easier and more convenient for customers to find and access your store.

As a newcomer in the business, the location significantly influences the success of your provision store. Unlike established store owners who can draw customers from afar, new businesses benefit greatly from being in a high-traffic area. These established businesses can transform a previously overlooked location into a bustling market hub almost overnight.

Here is how you can spot a strategic location for your provision store:

• High Foot Traffic : Choose areas with high foot traffic, where many people pass by regularly. This increases the visibility of your store and exposes it to potential customers. Locations near busy streets, markets, or transportation hubs are ideal.
• Residential Neighborhoods : Setting up your store in residential neighborhoods ensures a steady flow of customers, as residents will frequently visit for their daily shopping needs. It’s convenient for them to access essential items close to home.
• Commercial Centers : If feasible, consider locating your store in commercial centers or business districts. Employees and workers from nearby offices often require quick access to provisions during lunch breaks or after work.
• Proximity to Markets : Being close to wholesale markets or suppliers can be advantageous for restocking inventory efficiently and possibly obtaining better deals on products. This proximity helps maintain a competitive edge in pricing and availability.
• Near Schools : Establishing your store near schools or educational institutions can attract student customers and their families. Providing snacks, beverages, and other essentials popular among students can boost sales.
• Accessibility : Ensure easy accessibility for customers, including ample parking space if applicable and convenient transportation options. A location with good visibility and signage also helps attract passing pedestrians and motorists.
• Residential Areas : Targeting residential areas ensures a consistent customer base, especially if there are limited provision store options nearby. Consider the demographics of the area to tailor your product selection to the preferences of local residents.

By carefully selecting a strategic location that aligns with these considerations, you can maximize the potential for your provision store’s success. It’s essential to conduct thorough market research and evaluate various factors such as competition, demographics, and local demand to make an informed decision about the best location for your business.

4. Set Up Your Shop:

Once you’ve identified and secured the ideal location, it’s essential to ensure that your shop is visually appealing and efficiently organized. This enables customers to easily find what they’re looking for and allows you to locate items quickly based on customer demand.

The main aim is to create a welcoming atmosphere that attracts customers and encourages them to explore your store. Consider factors like lighting, decor, and cleanliness to make a positive first impression.

To set up your store for maximum appeal and organization, you’ll need to have the following equipment and fittings in place:

• Sturdy Shelving : Invest in durable and functional shelves to display your products effectively. Arrange items logically and categorically to make it easy for customers to find what they need. Adjustable shelves allow flexibility in accommodating different product sizes.
• Refrigeration Units : If you plan to sell perishable items such as fruits, vegetables, dairy, fish, or meats, invest in reliable refrigeration units. Ensure they are properly maintained to preserve the freshness and quality of perishable goods.
• Display Racks : Use display racks or stands to showcase featured or promotional items prominently. This can attract customers’ attention and encourage impulse purchases. Consider rotating products regularly to keep displays fresh and interesting.
• Adequate Space : Ensure there is ample space for customers to move around comfortably and browse your offerings. Avoid overcrowding shelves or aisles, as this can create a cramped and unpleasant shopping experience.
• Checkout Area (only for medium and large-scale provision stores) : Designate a clearly marked checkout area with a cash register or POS system for seamless transactions. Keep this area tidy and clutter-free to expedite the checkout process.
• Signage and Branding : Use clear signage and branding elements throughout your store to reinforce your brand identity and help customers navigate the space. This includes signage for product categories, pricing, promotions, and store policies.
• Safety and Accessibility : Prioritize safety by ensuring aisles are wide enough to accommodate wheelchairs and strollers, and that shelves are securely anchored to prevent accidents. Maintain cleanliness and organize storage areas to minimize hazards.

By paying attention to these details and creating an inviting and organized space, you can enhance the overall shopping experience for your customers and increase the likelihood of repeat visits and positive word-of-mouth recommendations. Additionally, a well-designed store layout can contribute to increased sales and customer satisfaction.

5. Fulfill Legal Requirements:

As a potential provision store owner, you must be aware that before you can operate your business, you have to fulfill some basic legal requirements, which is crucial to avoid potential penalties, fines, or legal consequences that could impact the success of your provision store business.

In Nigeria, the legal requirement is not really a hurdle as it requires just two basic legal requirements;

• Business Registration
• Tax Identification Number (TIN)

In addition to those two, you have to comply with health and safety regulations to ensure the well-being of your customers and employees. This include not being a promoter of inferior items, maintaining cleanliness and hygiene standards, and implementing proper sanitation practices.

Depending on the nature of your provision store business, you may need additional permits or licenses for specialized operations. For example, if you plan to sell alcoholic beverages, you may need a separate liquor license.

Fulfilling these legal requirements not only prevents fines and penalty, It also helps build trust and credibility with customers, suppliers, and regulatory authorities. Be sure to research and understand the specific legal requirements applicable to your business and take the necessary steps to ensure compliance before opening your provision store.

6. Stock Your Provision Store:

Stocking involves carefully selecting and purchasing the products that you’ll offer for sale in your provision store. This could include both perishable and non-perishable items such as groceries, household essentials, snacks, beverages, and other everyday necessities depending on the specialty you have choose your provision business to be known for.

When stocking your store, consider factors such as:

• Product Selection : Choose a diverse range of products to meet the needs and preferences of your target market. Consider local dietary habits, cultural preferences, and popular brands to ensure a well-rounded inventory.
• Quality : Prioritize quality when selecting products to stock. Source items from reputable suppliers known for freshness, reliability, and consistent quality. High-quality products contribute to customer satisfaction and loyalty.
• Quantity : Determine the appropriate quantities of each product based on anticipated demand, shelf life, and storage capacity. Avoid overstocking items that have a limited shelf life to minimize waste and spoilage.
• Variety : Offer a variety of options within each product category to cater to different tastes and preferences. Provide options for various dietary restrictions, lifestyles, and budgets to appeal to a broad customer base.
• Seasonal Considerations : Consider seasonal fluctuations in demand when stocking your store. Adjust your inventory to reflect seasonal trends and holidays, such as stocking up on holiday-themed products or seasonal produce.
• Display and Organization : Arrange products logically and attractively to make it easy for customers to find what they need. Use clear signage, attractive displays, and organized shelves to enhance the shopping experience.

Stocking your provision store effectively requires careful planning, attention to detail, and an understanding of your target market’s needs and preferences. By curating a well-balanced inventory of high-quality products, you can attract customers, drive sales, and build a successful provision store business.

There are various options for purchasing stock for your provision store:

• Lagos: Lagos International Trade Fair Complex, Alaba International Market, Mile 12 Market.
• Kano: Sabon Gari Market, Kantin Kwari Market.
• Onitsha: Onitsha Main Market, Relief Market.
• Distributors and Suppliers : Connect with distributors and suppliers who specialize in providing goods to retail businesses like provision stores. These suppliers often offer a wide range of products and may provide delivery services for convenience.
• Manufacturers : Some provision store owners choose to purchase directly from manufacturers, especially for branded or specialty products. Contact manufacturers of specific products to inquire about purchasing options and wholesale pricing.
• Online Marketplaces : Explore online marketplaces and e-commerce platforms that cater to wholesale buyers. Websites like Jumia, Konga, and Alibaba may offer a range of products suitable for provision stores, with the convenience of online ordering and delivery.
• Trade Associations and Cooperatives : Join trade associations or cooperatives that provide access to bulk purchasing opportunities and negotiated deals with suppliers. These organizations may offer discounts and other benefits to members.
• Local Suppliers and Farmers : Consider sourcing fresh produce and locally-made goods directly from farmers, cooperatives, or local suppliers. This supports local producers and ensures the freshness and quality of products.
• Trade Shows and Exhibitions : Attend trade shows, exhibitions, and industry events where wholesalers, distributors, and manufacturers showcase their products. These events provide opportunities to network, discover new products, and negotiate deals.

When purchasing stock for your provision store, consider factors such as product quality, pricing, reliability of suppliers, and proximity to your store location. It’s also essential to maintain good relationships with suppliers to ensure consistent supply and favorable terms.

You should also be mindful of common mistakes made by provision store owners that you must avoid at all costs, or else you might incur unnecessary losses and experience a slow business growth.

• Overstocking : Buying too much inventory without considering demand fluctuations can lead to wastage, expired products, and tied-up capital. It’s crucial to strike a balance and maintain optimal inventory levels based on sales patterns and shelf life.
• Understocking : Conversely, underestimating demand and failing to stock enough inventory can result in stockouts, dissatisfied customers, and missed sales opportunities. Regularly monitor inventory levels and replenish stock promptly to meet customer needs.
• Poor Product Selection : Stocking products that don’t resonate with your target market’s preferences or buying products solely based on personal preferences without considering customer demand can lead to slow-moving inventory and reduced profitability. Conduct market research and analyze customer preferences to curate a relevant product assortment.
• Ignoring Seasonal Trends : Neglecting to adjust inventory based on seasonal demand fluctuations can result in missed sales opportunities and excess inventory during off-peak seasons. Pay attention to seasonal trends and adjust your stock accordingly to capitalize on seasonal demand peaks.
• Lack of Variety : Failing to offer a diverse range of products within each category can limit customer choice and satisfaction. Ensure your store offers variety in terms of brands, sizes, and price points to cater to different preferences and budgets.
• Poor Quality Control : Neglecting to check product quality or failing to rotate stock regularly can lead to selling expired or damaged goods, damaging your store’s reputation and customer trust. Implement strict quality control measures and regularly inspect inventory to ensure freshness and quality.
• Failure to Negotiate with Suppliers : Accepting prices at face value without negotiating with suppliers can lead to higher costs and reduced profit margins. Build strong relationships with suppliers and negotiate favorable terms, including pricing, discounts, and payment terms, to maximize profitability.
• Inefficient Inventory Management : Relying on manual inventory management processes or failing to utilize technology to track inventory accurately can result in inventory discrepancies, stockouts, and overstocking. Invest in inventory management software and implement efficient systems to track stock levels, sales data, and reorder points effectively.
• Ignoring Customer Feedback : Disregarding customer feedback and failing to adapt inventory based on customer preferences can lead to missed opportunities for improvement and reduced customer satisfaction. Solicit feedback from customers regularly and use this information to refine your product selection and offerings.
• Not Monitoring Market Trends : Failing to stay informed about market trends, industry developments, and competitor strategies can result in being left behind or losing out on emerging opportunities. Stay abreast of market trends, consumer preferences, and competitor activities to make informed decisions about stocking your provision store.
• Copy and Paste : This mistake is quite prevalent among provision store owners. Instead of aiming to stand out by offering a diverse range of products, they often mimic their competitors’ inventory. This oversight contributes to the challenges faced by many new provision store owners in establishing themselves in the market and securing a significant market share. Consequently, some end up relocating their businesses to different locations, wrongly attributing their struggles to their initial choice of location rather than recognizing that their lack of unique stocking strategies hindered their success from the start, even before they started facing the intense competition.

Here is a list of common items needed in a provision shop to guide your stocking process:

• Canned vegetables and fruits
• Cooking oil
• Spices and seasonings
• Sauces and condiments
• Bottled water
• Soft drinks (sodas)
• Fruit juices
• Tea and coffee
• Energy drinks
• Milk (fresh and UHT)
• Chips and crisps
• Biscuits and cookies
• Chocolate bars
• Candy and sweets
• Nuts and seeds
• Fruits (e.g., apples, bananas, oranges)
• Vegetables (e.g., tomatoes, onions, potatoes, carrots)
• Herbs and greens
• Bread (sliced and unsliced)
• Cakes and muffins
• Frozen vegetables
• Frozen fruits
• Frozen meats and seafood
• Ice cream and frozen desserts
• Toilet paper
• Cleaning products (e.g., detergents, disinfectants)
• Personal hygiene products (e.g., soap, shampoo, toothpaste)
• Paper towels
• Canned soups
• Canned beans
• Canned fish and meats
• Canned fruits
• Over-the-counter medications (e.g., pain relievers, cold medicine)
• First aid supplies (e.g., bandages, antiseptics)
• Vitamins and supplements
• Baby food and formula
• Pet accessories

These are just some of the items commonly found in a provision shop. The specific range of products may vary depending on the size of the store, its location, and the preferences of the customers it serves.

7. Build a Strong Brand:

Building a strong brand for your provision store is essential for establishing a distinct identity and becoming the preferred destination for customers in your chosen location. This process involves several key steps aimed at creating a memorable and trustworthy image for your business.

Firstly, investing in signage and logo design is crucial. Your store’s signage should be visually appealing and easy to spot, while your logo should reflect the essence of your brand and stick in customers’ minds.

Beyond physical branding, developing a unique identity is essential. This encompasses your store’s name, tagline, color scheme, and overall aesthetic. This cohesive identity helps to differentiate your store from competitors and leaves a lasting impression on customers.

Marketing materials play a vital role in promoting your brand. Well-designed flyers, brochures, and business cards can effectively communicate your store’s offerings and values to potential customers, further solidifying your brand identity. -You might consider avoiding these expenses if you are not going to be operating a medium or Large-scale provision store.

Offering competitive pricing and high-quality products is another key aspect of building your brand. Customers are drawn to stores that provide value for their money, so striking the right balance between affordability and quality is crucial.

Equally important is prioritizing customer service. Training your staff to be friendly, helpful, and knowledgeable creates positive interactions that enhance the overall shopping experience. Positive experiences lead to customer loyalty and word-of-mouth recommendations, further strengthening your brand.

By following these steps and consistently delivering on your brand promise, your provision store can become the go-to destination in your community. Building a strong brand fosters trust and loyalty among customers, paving the way for long-term success and growth.

Is having a Business Plan necessary when starting a Provision Store?

Yes, having a business plan is essential when starting a provision store. A business plan serves as a roadmap for your business, outlining your goals, strategies, and the steps you’ll take to achieve success. Here’s why a business plan is necessary:

• Clarifies Your Vision : A business plan helps you clarify your vision for the provision store and articulate your goals and objectives. It allows you to define your target market, identify your unique selling proposition, and outline your plans for growth.
• Provides Direction : By laying out your strategies and action plans, a business plan provides direction for your provision store business. It helps you stay focused on your goals and guides decision-making as you navigate the challenges of starting and running a business.
• Attracts Investors and Lenders : If you need financing to start your provision store, a well-written business plan can help attract investors and lenders. It demonstrates your understanding of the market, your business model, and your plans for profitability, increasing confidence in the viability of your venture.
• Aids in Budgeting and Financial Planning : A business plan includes financial projections, such as startup costs, operating expenses, and revenue forecasts. This helps you estimate the capital required to start and sustain your provision store and plan your finances accordingly.
• Identifies Potential Challenges and Risks : Through market research and analysis, a business plan helps identify potential challenges and risks that may affect your provision store business. By anticipating these challenges, you can develop strategies to mitigate risks and overcome obstacles.
• Promotes Accountability : A business plan serves as a tool for accountability, both to yourself and to stakeholders such as investors or partners. It provides a framework for measuring progress against your goals and allows you to track performance over time.

Overall, a business plan is a valuable tool for planning, launching, and growing your provision store business. Whether you’re starting a small neighborhood shop or planning to expand into a chain of stores, having a solid business plan can significantly increase your chances of success. To create that perfect business plan, you can read our curated resources on writing a business plan

Challenges of Provision Store Business

Running a provision store may seem simple, but it comes with numerous challenges typical of the retail sector. Competition is fierce, with provision stores competing mainly against supermarkets and other provision store retailers for market share. Profitability is tricky to maintain due to consumer price sensitivity and the need to stay competitive.

Managing inventory is crucial yet complex, balancing customer demand with avoiding overstocking or running out of stock. Adapting to changing consumer preferences, seasonal fluctuations, and regulatory requirements adds to the challenge. Technology integration presents both opportunities and hurdles, as stores try to embrace e-commerce while preserving their traditional setup.

Customer retention is vital, requiring exceptional service and understanding of customer needs. Supply chain disruptions, such as supplier shortages or transportation delays, further complicate matters, necessitating robust contingency plans.

To succeed, provision store owners must be adaptable, innovative, and dedicated to customer satisfaction. Strategic planning, effective management, and a commitment to excellence are key to thriving in this competitive retail landscape.

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I am Eghosa Kester Igbinigie, the owner of StartBizEasy.com and Richnuggets.com. As a business enthusiast, writer, and speaker, I hold a degree in Business Administration (BSc) and own several successful businesses

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How to Write a Business Plan For a Retail Store: Complete Guide

• August 3, 2022
• Small Businesses

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your retail store, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your retail store business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a retail store?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your retail store business plan’s executive summary?

For any retail business, the following information must go into the executive summary:

• Business overview : include your business name and model (independent retail store or franchise model), the products you intend to sell (and whether you want to expand with additional product offerings), the legal structure of your business, etc.
• Market analysis : how many retail stores operate in your area and what do they sell? The estimated number of visitors your customers receive per week, target audience demography (the products you sell must fulfill their needs), purchasing power, etc. must also be included
• People : organizational setup and the management hierarchy along with retail store experience of the key people in the management
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? It is ideal to include a chart depicting your key financials such as revenue, gross profits, and net profit
• Financial ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

2. Business Overview

The business overview is essentially the company description. The second section of your business plan, it should cover the following for a retail store:

• The products you will sell in your store
• The price range of the products
• The company structure
• Target audience information

Let’s look at different subsections that you must include:

Give a brief explanation of why you want to open a retail store. It must display two things:

• Your passion & interest for this type of business
• Feasibility of the business

There may be other retail stores in your area, but they don’t fulfill certain needs of the potential customers. Your business may fill in that gap. 

For example, there may not be any retail store in your area addressing the needs of cyclists. Even if there are competing retail stores, are they offering everything like electric bikes, mountain bikes, touring bikes, BMX, folding bikes, etc.? Do they offer spare parts and customizations?

b) Business Model

This is where you will explain the following:

• Is your retail store independent?
• Are you buying an existing retail store?
• Are you settling for a franchise store of an established bike brand?

c) Products

Your retail store can sell various products. Lenders or investors must get a clear idea of the products you intend to sell. If you want to focus on one or two specific products, you must clarify that, too.

For instance, if you are opening a retail bicycle or bike store , do you intend to sell only assembled bikes or do you intend to sell spare parts, too? What about toolkits? Do you have plans to sell supporting products for cyclists such as helmets, pants, shorts, gloves, eyewear, etc.?

If you have plans to specialize in something (for example, mountain bikes with shock absorption, gears, disc brakes, etc.), mention that.

d) Pricing Strategy

It is important that you add a pricing list here. You don’t need to go into extreme details. Just an average range will be more than enough. 

For instance, mountain bikes can cost anywhere between $400 and $800 . Depending on the components used, the average price can increase or decrease.

A pricing chart for all major products you are offering can help the investors or lenders to tie your pricing strategy with your financial projections.

e) Target Audience

Knowing your customers is very important. That will give you an edge over your competitors. For example, if you are opening a retail bicycle store, you must know whether your potential customers will be enthusiasts, hobbyists, or professionals.

Another important aspect is to understand the type of cyclists you will focus on. The products you sell will depend on that.

Knowing your customers well help in two things:

• You can better retain your customers
• Lenders or investors will be more confident about your business strategy

f) Legal Structure

Finally, your business overview section should specify what type of business structure you opt for. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Market Analysis

The market analysis is the next most important aspect of your retail store business plan. You must demonstrate to the potential investors that you know your market. Investors must be confident that the retail store you are trying to open (or you are already operating) makes sense.

For example, if you want to open a retail store specializing in mountain bikes, it’d be better if you’re located in states like Utah, Arizona, Arkansas, Colorado, North Carolina, Michigan, etc., because these states have ideal mountain bike destinations. Similarly, Texas isn’t really popular for mountain biking.

Again, you will never want to sell high-end bikes in a middle class neighborhood because they will most likely not be able to afford those items.

a) Retail Market Trends

You must also focus on the market size and growth opportunities . For example, if the location of your retail store doesn’t have enough cyclists, your bicycle business will probably not make enough profits. Again, if there are way too many competitors, the growth opportunities may be stifled.

Find market data for your city / area

It is always a good idea to get city-level data to get a clearer picture of the market size in addition to any national-level data you are providing.

Getting city level data might not be an easy task. In fact, you may have to get out and collect the necessary data. You may have to do some math. For example, if there were 30 bicycle retailers in your city in 2019 and the number grew to 33 in 2020, the annual growth rate will be 10%. 

You may want to investigate the factors leading to such growth. For instance, median income may have increased, there may be an influx of population, growing environmental consciousness, increased health awareness, etc., can be some of the factors.

However, you may actually notice a drop. In such a case, you must investigate the reasons. There can be varied factors like drop in income (and hence, sales that led to closure of businesses), decrease in population (may be younger popular moved out of the location), etc.

If there is a drop, you must explain the rationale behind opening a business, the industry of which is showing a gradual decline. It may also happen that the market may rebound back after a temporary decline.

b) Competition

Your competitor analysis is very important. Here are a few questions that you must answer:

• How many retail stores are there?
• How many of those stores are your direct and indirect competitors?
• What type of products do your competitors sell?
• What is the price your competitors are charging for the same or similar product?
• How many employees do your competitors have on an average?
• How many customers do they receive per month?

Some of the answers will end in approximation of data. That’s totally fine. For example, you may not be able to get the exact number of customers your competitors receive.

Draw a strong conclusion for your competitive analysis

Your competitive analysis must bring out the reasons why you are trying to open a retail store. For example (related to the retail bicycle store example):

• There are no specialised mountain bike retailers in the area despite a high percentage of mountain bikers
• Existing bike retailers offer only bikes and spares. No retailer offers clothing and protective gear

c) Customers

You already spoke about the target audience in the Business Overview section. Here, you must provide hard data that establishes the existence of your potential customers in the area.

This section must answer the following questions (with reference to the bike store example):

• What is the age group of the cyclists in your area?
• What percentage of the cyclists are women vs. males?
• What type of bikes are they mostly interested in?
• Do the customers also look for related accessories?
• Do they prefer online shopping or offline shopping?
• What is the average household income per month (and also their average disposable income)?

Much of this hard data will come from your competitor analysis. Also, the data must support your decision to open a retail store. For example, if people have a tendency to buy online, you may be better off opening an online retail store instead of a physical store.

4. Sales & Marketing Strategy

The 4th section of your retail store business plan is where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your USP ?
• What marketing channels will you use (online or offline)?
• Do the marketing channels aptly grab the attention of your target audience? For instance, young adults will most likely not pay attention to TV ads. Instead, use social media
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

a) Marketing channels

A few marketing channels retail stores typically use are:

• Email marketing
• SMS marketing
• Social media
• Pay-per-click campaigns (e.g. Google Ads, Amazon Ads)
• Partnerships (e.g. with companies to offer employees coupons, discounts, etc.)

b) What is your unique selling proposition?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are (with reference to retail bike store example):

• Price : you may have cheaper prices than competitors
• Specialization : you may be specializing in some specific product
• Additional products : you sell additional accessories and safety gear that your competitors don’t
• Freebies : you may offer freebies like helmets or tail lights

Your USP will definitely depend on the products you are selling.

5. Management & Organizational Structure

You must address two things here:

• The management team and their experience / track record
• The organizational structure: what are the different teams and who reports to whom?

a) Management

Your store’s management will vary depending on the business type and size. For instance, if you are opening a franchise store, you may have to give a lot more details compared to an independent store.

You may have co-founders and/or senior managers. You must explain their roles, too. Apart from that, you must also explain their industry experience and why they are suitable for those positions.

b) Organizational structure

Note that even if you have not already hired senior managers and other team members, you must include the details. 

You must define their roles and the hierarchy of reporting. This will demonstrate to the potential lenders and investors the solid management plan you have in place to operate your business efficiently and successfully.

Create and attach an organizational chart for a visual understanding of your store’s staff and their reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any retail store business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your retail store is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to open a new retail store, renovate your store, etc.)
• The 5-year financial projections

Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a retail store, startup costs are all the expenses you incur before you open the space to your customers. These expenses typically are:

• The lease deposit for the space you rent
• The design and renovation of the existing facilities
• The equipment and furniture

The total startup costs depend on a number of factors, such as the size of your store, the quality of the building (whether there is a lot or remodeling to do or not), the quality of the furniture, etc.

Financial Projections

In addition to startup costs, you will now need to build a solid financial model over 5 years.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 5%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers, sales as a small change in these assumptions will have a big impact on your revenues.

7. Use of Funds

This is the last section of your retail store business plan. Now that we have explained what your retail store sells and to whom, the industry, management and your marketing strategy, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the inventory? Or will it cover mostly the cost for the lease deposit and the renovation of the building?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our retail store financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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How To Start A Provision Store In 2024 (An Instructive Guide)

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So you have been considering and researching on how to start your provision store? In light of the nation’s economic state, this is a logical financial move.

In this article, I will be explaining the steps to start a profitable provision store, maintain, and succeed in it. I will also be throwing in my past experiences in the line of business, challenges, and solutions to the challenges. So let’s dive in right away!

Table of Contents

How to start a provision store.

There are a few steps to take if you wish to launch a profitable provision store.

1. Conduct a Market Survey

When conducting a market survey for a provision store, you ought to know what your potential customers need and desire. A market survey is a great tool for gathering information about the consumers you are targeting or the general public where you are promoting your goods. Three major Steps to consider when performing a market survey for a provision store.

1. Define the problem

When defining the problem you need to Consider your initial motivation for exploring a certain issue carefully before deciding how to structure a market research survey. When defining the problem you also need to ask the following questions What benefits will it have for your product, your consumers, or your firm as a whole? By posing these queries, you’ll be able to comprehend the problems and the kinds of information you need.

2. Target the right audience

Think about the purpose behind your audience outreach. It’s important to take your audience’s specialization into account. It gets tougher to find enough respondents the more detailed your audience parameters are. It also becomes more pricey. You might want to think about lowering your population criteria to make sure you have a sample size that works for you and your budget.

3. Take action on your research

Now is the moment to present your research and make a decision. Start designing your marketing plans and tactics. Now go ahead to evaluate your data! The most important lesson from this is that while the current round of research is finished, Your not yet done with market research.

Your research is never done since the challenges, the business climate, and overall trends are ever-changing. The patterns your investigation revealed are changing. Regular data analysis will show you where you can make improvements. Your organization and marketing activities will be profitable the more you understand your buyer profiles, marketplace, and business.

2. Write a Business Plan

The development of a business strategy is the next stage in launching a provision store in Nigeria. This is important since, without it, you may have neglected to start your provision store since you wouldn’t have thought to take into account so many important elements. With a little help from a business plan, you can decide on an array of things, including the capacity of the shop you will rent, the store location, the equipment needed to get started, the number of provision items necessary to begin the business and other aspects.

NOTE: Check out How to write a great business plan for your business, if you find it difficult.

3. Aquire the Required Capital

I’m going to assume that once you’re at this level of this article, you have already saved money for this project. Otherwise, your business plan ought to specify how much funding will be sufficient.

You might need to make some expense reductions or look for additional funding if the quantity of money you require is greater than what your business strategy projected. It is not a good idea to borrow money to sustain your business because the pressure of the loan may force you to make bad judgments. It is usually preferable to spend the cash you currently have to expand your company.

4. Get or Rent a Shop

In this step, you need to pick out a shop for you to sell your items. When establishing a provision shop, having a location that is at the roadside where you may sell your goods is crucial, because it allows your business to be shown to all including pass-a-byes. Things to consider when renting a provision shop

• Location: The location of your shop will determine the amount of daily profit that your business generates. When selecting a location for a business, especially a provision business you need to pick a location where there are a lot of people and the items you sell are of great use to them.
• Safety: When picking a shop, it is common to ask yourself whether your goods are going to be safe here. You need to make the area you will select to rent your shop so there is no act of robbery both in the night or day. You’ll also need to guarantee your customer’s safety whenever they come and leave your shop.
• Electricity: A well-powered place is a factor you’ll need to put into consideration when selecting a shop because you need your shop to have a proper lightning system to avoid any indoor accidents. You also need electricity for some items are need to be sold at a cooler temperature such as drinks and water.

NOTE: Just know that if your shop is not safe it will affect the number of customers and sales negatively.

5. Furnish your Shop

Deciding how to design the space is the next step after locating a shop to rent on a low budget for your provision business. If required, paint the walls before placing the exhibition shelves. An additional crucial step is to install electric lamps on the shop’s premises. All these are crucial for the comfort of all the customers that will come into the premises to purchase some items.

6. Equip your Store with Provision Items

When it concerns purchasing supplies for your provision store business, there are a few factors to take into account. Some of them are areas in which you can get affordable goods, and another is how far it is between this location and your shop.

You will be well on your way to building a sizable profit off your business if you can locate a decent location or market in which you can purchase your goods at the lowest costs and that is also reasonably close to your place of business.

7. Register your Provision Business Legally

After you equip your shop, you need to register your business with the authorities. Based on how large your business is, you may need to register your provision shop with the Corporate Affairs Commission (CAC). Do this to ensure that you avoid getting into legal issues with the authorities. If your provision store is a small-scale company, like a one-room store, you will likely not have to register it; however, if it is a large-scale business, like a supermarket, then you might be required to.

You will also be asked for the name of your provision shop business. This name is unique to your specific supply store and is called the “business name.” You will need to think of a name unique to your company. Your business will gain official recognition from the government and become a legitimate entity if you register your provision shop with the CAC.

8. Launch your Provision Store

You should select a day that you’ll launch your store and start selling the items you have in the store. One of the mistakes you should avoid making at the initial start of your business is to sell below the selling price of any goods. To counter this initial mistake most businesses do, is to place price tags on each product to avoid customers asking for a lower price for any product. This method could also be of great use to you in order not to forget the price of each product in your provision store.

How to Build a Scalable Business (13 Effective Strategies)

Tips on surpassing your competitors in this field.

In this business, it is essential to be at the top of your game because you’ll have a lot of competitors. These people sell almost the same items as you and worst of all at the same location. There are many ways to be at the top of your competitors you know. These ways include:

1. Have great customer service

There is a difference between having customer service and having great customer service if you know what I mean. Having great customer service means that you treat your customers like precious stones while still making them purchase more items that will go together with the products they’ve already purchased. For example; if A customer buys coffee, you as the seller have to make the customer feel special, right after you need to attempt to make the customer purchase some loaves of bread for the coffee. At that instant, there is a high percentage that the customer will end up buying what you said. As far as it is compatible with what they bought initially.

2. Try as much to open first and close last

When you open first and close last, it will let people know that you are serious about your business which will end up attracting people to your provision store. If you keep it up even in the holidays, people will take your business seriously and will be purchasing from you.

3. Replace Finished Goods

Once you notice that you are about to run out of any product, don’t allow it to finish because at the moment it finishes there might be dozens of customers that will come looking for that product. Once they come and you don’t have it they will take your business for granted and might end up skipping your store to buy that product from your competitor. But if you replace products as soon as it’s about to finish it will make your customers think highly of your business.

4. Sell at a lower rate

This is why you need to perform market research (Step 1). Take it like this, you open a provision store at a certain location and sell a certain product that people in that area love and you notice that your competitors are also selling that product, you need to observe the price that other stores are selling it and then reduce the price of your own but not below the selling price. If you do this you’ll attract more people to your store coming to buy that product.

Tips to Increase Profit for Your Provision Store Business

There are two ways to increase profit in a business firstly, is to increase sales. Lastly, is to increase the price of a single product but this one is not recommended because shortly, it might end up causing more harm than good.

You need to apply the four previous tips mentioned above to increase sales in your business. You need to inform families, colleagues, co-workers, and even strangers. All these people combined will share the information with others thereby increasing the traffic to your store. The more the traffic the more the sales, the more the profit.

PS: If you are to purchase a product, it is advisable to buy it from wholesalers because it will come at a considerable price fitting your pocket. Take note of the four tips I provided above they will take your provision store business to greater heights.

Provision store business is a daily income business and a well lucrative business. Provision store business is an economical business which means it brings in money whether the economy is good or not.

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Hi, I am Johnson Uche. I am a content creator and digital marketer who provides tips, and reviews to help you in your business journey.

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Ecommerce may be booming but opening and running successful shops and retail companies of the bricks-and-mortar variety is still a life goal for many.

If you’re planning to make that dream a reality, writing a thorough business plan should be at the top of your to-do list — here’s why.

What is a business plan?

Your business plan is essentially your company’s strategic blueprint. It explains what your business idea is and sets out your goals and how you will achieve them, while considering the environment you’ll operate in.

Typically, it’s the first proper step of getting your retail business off the ground and can be used to get investors, grants, loans or other funding for your company before you open your shop doors.

Something that can also help your planning is a Business Model Canvas . It is a handy tool to help you build out your business plan.

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Do independent shops really need a business plan?

The short answer is yes. Of course it’s possible to do well with a good idea and a bit of luck but you’re more likely to succeed with a solid business plan to help guide your decision-making. Researching your plan will also help you figure out if your products or services are financially viable and in demand before you launch. Here are three things to consider as part of your business planning process:

1. Location, location, location

For shops and retail companies, whether you’re opening a community greengrocer or an exclusive boutique, one of the most important aspects of your business model is your location. Pulling a plan together will encourage you to think about the most viable location for success, as well as the cost implications.

2. Customers

When creating your business plan, you’ll need to research your potential customers. Documenting who they are, how they behave and the circumstances in which they will shop with you will aid you in determining the stock you will carry and how to effectively promote your store to customers.

3. Pricing model

A big part of any business plan is the financial figures that are included. As part of the planning process, you should be doing detailed research on potential competitors and their prices as well as all the expenses that running your business will incur. This will help you determine the prices that you will charge for the products you sell.

What are the other benefits to having a business plan?

• It looks good to potential partners, investors, lenders and funding bodies, and if you want to apply for a business loan, you’ll most likely need a business plan.
• It will help you work out what your unique selling proposition is, identify threats and challenges, and come up with solutions and coping strategies.
• It will make you set short and long-term SMART goals, such as launching a new website within three months or opening a second shop in year three of trading.
• You can use it to benchmark your performance by comparing your company’s results and achievements with the goals set out in your plan.

If you want to increase the chances of your business being successful, it’s worth having a business plan

How to write a business plan for your shop

Your business plan doesn’t have to be a boring document. Given some investors make their decision to provide funding to start-ups and existing firms based on the people as much as the business itself, your business plan should showcase your passion and personality.

However, certain bodies or individuals who can provide funding will expect you to include specific information. Putting your plan together using the following sections can help you make a strong case for securing the required finance:

• Executive summary
• Business overview
• Audience and market
• Products and services

As we’ve discussed, your business plan will be critical to you running a profitable shop, which is all the more reason to ensure that you are thorough in your approach. Here are some top tips for writing your plan:

Be realistic

It’s unlikely that you will be profitable straight away and sales may show steady growth rather than a massive spike. If your plan includes figures that seem unrealistic, you should justify them.

Accuracy is key

As your business plan will help you make decisions, it’s important the information you base those decisions on is correct. Double check everything. We have some great advice on how to get more accurate figures for your business plan .

As your plan will be used to help you manage your retail business and potentially be shared with others, it’s important to avoid waffle. You can always make use of appendices for supplementary information.

Want help with business plan for shops and retail companies?

Your accountant may be able to give you tips and ideas, or ask your bank if they have a small business adviser you could talk to. If you’re ready to start your research and writing, why not use an online template?

To help you out, we’ve created a business plan template specifically for shops and retail companies with physical stores. It’s free to download and takes you through the process step by step with detailed guidance notes.

Don’t forget that your plan should evolve with your business, so you should revisit and update it regularly. Good luck!

Want to create a business plan for your shop or retail company but not sure how to do it? Download our free and easy-to-use business plan template and you can get started.

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How to Write An Attention-Grabbing Retail Business Plan

• by Luke O'Neill

minute read

Now, you might be thinking: ‘why do I need a business plan? I’ve got it all mapped out in my head. I might even have successful businesses already!’

But business plans are so much more than another action item on your ever-growing to-do list.  They communicate your positioning, planning and potential for success to the world.

Whether you’re writing your first business plan or your tenth, we’ve put together a guide to getting it done that will help:

• The purpose of a retail business plan
• How a retail business plan differs from other business plans
• Before you get started
• What to include in your plan
• Mistakes to avoid
• How to set your plan apart

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What are retail business plans for? 

Retail business plans are planning and forecasting documents. They explain your business model, who your customers are and how you plan to take your store or online shop from an idea to a profitable reality. 

Why are retail business plans different?

Because retail businesses are different. 

Whether you’re selling from a brick-and-mortar store or through an online shop, you have to consider a combination of factors that many other businesses don’t. Think inventory, store supplies, sourcing and supply chains. And, even more complex activities like order fulfillment, deliveries and customer returns. 

You don’t need to write a tome that covers all of these areas, but they will inform how you put your business plan on paper. 

What are the different sections of a retail business plan? 

Crafting an attention-grabbing retail business plan hinges on detailing its most crucial sections with precision. 

Each section plays a vital role in presenting a comprehensive and convincing plan for your retail business.

Here are three pivotal areas to focus on:

• Executive summary: your elevator pitch. The executive summary distills your business concept, market positioning and unique selling proposition into a compelling narrative that hooks the reader immediately. 
• Market analysis: this section should detail the size and growth potential of your target market, customer demographics, and purchasing habits. It also covers competitor analysis, showing awareness of your competition and how your business will stand out. 
• Financial Plan: lay out your financial projections and funding requirements clearly. This includes startup costs, projected income statements, cash flow forecasts, and a break-even analysis.

Before you write your retail business plan

But let’s pump the brakes for a second. It might be tempting to dive right in and start writing your business plan as soon as possible. But consider these suggestions before you do.

Research your market first

“Without a market, a retail firm cannot exist,” said Susan Smith, marketing manager at Velden Engineering . “One of the first things readers will look for when reading your business plan is evidence of a healthy market, an unmet need in the market and how your company is positioned to meet that need. Completing thorough market research before developing your business plan should be a top priority,” she said.

To grasp customer demographics and preferences, retailers should engage in thorough market research:

• Analyze existing data on target market segments to understand age, gender, income levels and lifestyle choices.
• Conduct surveys and focus groups to gather insights directly from potential customers about their needs, preferences, and shopping behaviors.
• Leverage social media analytics to reveal wider trends and consumer sentiments.

Combining quantitative data with qualitative feedback allows retailers to tailor their offerings and marketing strategies effectively, ensuring their business plan is aligned with customer expectations and market demand.

Understand your competitors

This will give you valuable insight into your own products and services.

“Most industries are becoming oversaturated at this point, so investors want to know what sets you apart. What makes you unique. Do as much research into your competitors as you do into your own business ,” said Gabriel Dungan, CEO and founder of mattress topper company, ViscoSoft.

To research your competitors:

• Shop with them. Browse their online storefront, visit one of their locations, make a purchase and make note of their services.
• Gather their press releases, investor relations and earning statements.
• Chart their growth patterns and research the cities and neighborhoods they operate in.
• Record their USP, product offering and any loyalty programs.

Choose the right location

When selecting a potential location, consider factors such as target market proximity, foot traffic, competition density and the compatibility of the local demographic with your product offering. A prime location can boost foot traffic, offering more opportunities to attract and retain customers.

The impact of location extends beyond mere physical presence; it’s about positioning your business in a spot that maximizes its exposure to the right audience, enhancing the likelihood of higher sales volumes.

Do research to help you articulate the rationale behind your location:

• Gather market research data, foot traffic statistics and competitive analysis.
• Cross reference how your chosen location aligns with your target market’s profile and shopping habits.

Have a growth strategy

Identify a clear growth strategy to strengthen your business plan, suggests Michelle Ebbin, Owner of Australian clothing brand JettProof .  “Most companies focus on market penetration where they sell current products to an already existing market,” said Ebbin. “While that’s a feasible route, you might also want to explore product development by introducing new, innovative products to existing customers.”

“There’s also market development where you try to find new markets for your existing products and diversification for introducing new products to new markets,” she said. Ebbin believes determining a clear growth strategy can increase retailers’ chances of convincing potential investors, who essentially want to know how you will grow your business once it’s up and running.

TIP: Accountants and financial advisors can help you prepare your retail business plan.

Retailers should consider expansion or diversifying product lines and services when their current operations consistently exceed performance expectations, signaling market demand and operational capacity for growth. Analyze sales data, customer feedback, and market trends to identify opportunities. Additionally, if there’s a noticeable shift in consumer behavior or emerging trends align with your business’s strengths, it might be time to diversify. In your business plan, clearly outline the strategic rationale for expansion or diversification, supported by data and market analysis, to demonstrate how these moves will drive future growth and address evolving market needs.

What to include in your retail business plan

When it comes to the specifics, include these details.  

Give a business overview in your executive summary 

For your executive summary, give a high-level description of your retail business. If you had less than two minutes to explain why your business will succeed, what would you say?

You can mention your company’s structure, legal name, location and the products or services you’ll sell, but don’t go in depth—these will all have their own dedicated sections. Describe whether you will be selling in-store, online or across various channels.

Keep this section simple. Use easy-to-understand language. It shouldn’t be more than a page, and it should get people excited right away.

Explain your business goals

In this section, you should talk about what you plan to achieve. Why are you starting this business, and where do you want it to go? Realistically, what will you be able to make happen?

This doesn’t need to be lengthy or complex. And the goal doesn’t need to be huge, either. For example:

“Our goal is to become the go-to provider of HD gaming and streaming cameras for teenagers in San Francisco within 18-24 months.”  

You could also cover any goals you have about locations, product ranges or online stores. 

Showcase your industry experience

This section is more about you, the owner. It’s where you showcase your personal and professional drive to take the business forward. Keep it brief, but say why you’re the right person to take this retail business from an idea to a reality. 

• Your specialty, such as brick-and-mortar, ecommerce or both. Direct-to-consumer (DTC) is also an option.
• Any senior roles in well-known national or regional retail businesses
• Sales or lead generation goals you’ve driven before
• Successful growth initiatives, like new store openings.

Set out your marketing strategy 

Here’s where you talk about your store’s image and branding strategy. Cover of some of the fundamentals of retail marketing, including your plans for the 4Ps of retail marketing. 

Here’s a quick reminder about what they are:  

• Product: What you’ll sell and your Unique Selling Proposition (USP). 
• Pricing: How much your products will cost and why you’ve chosen these price points. 
• Place: Where you’re going to sell your products (online, in-store or omnichannel).
• Promotion: How you’re going to promote both your store and the products you will sell.  

Consider briefly outlining your strategy for leveraging social media for marketing and customer engagement. Describe how platforms like Instagram, Facebook and Twitter will serve as tools for brand promotion, product launches, and direct customer interaction. 

This section doesn’t need to be overlong or complex. If you want to dive into the details—or provide a complete marketing plan —you can do this in an appendix at the end of the plan. 

Financial strategy and forecast

Nine times out of 10, this is what people reading your business plan will most want to see.

“At the end of the day, your company will be judged on its capacity to generate a profit,” said Will Cannon, CEO of Signaturely , an e-signature software company. “Investors will want to see some data related to your startup demands and revenue estimates, no matter how succinct and appealing your retail business plan is,” he said. 

Think about including your:

• Estimated capital requirements
• Profit and revenue model
• Estimated sales volume
• A break-even point calculation
• Balance sheet projections
• Cash flow projections.

Above all, ground these figures in reason.

Detail the management structure

Explain your management setup. Who are the founders? What will their job be? Will you have a CFO, a CPO, a head buyer, a head of marketing? A vice president? Define your titles and jobs. 

This will make things move much more easily throughout the early settling-in time. Everyone will understand where they stand and you will know how you plan to manage people on a daily basis. This strategy should include information such as the number of team members you’ll hire, their roles and how those roles fit into the wider plan. 

Outline your plan for technology and retail operations

In this part of your business plan, detail how you’ll harness retail technology to streamline operations, enhance customer experience and expand your market reach. List your options for POS systems, why you’re considering them, their opportunities for growth and their annual cost.  

Emphasize integrating ecommerce into your business model and exactly how—will you operate your own site, sell on Amazon or both? Discuss the specifics of your online storefront, including website design—will you pay for a custom-coded site?—payment processing systems and cybersecurity measures to protect customer information.

Talk about inventory sourcing and supplier management

Outline your criteria for selecting suppliers, including their sustainability practices, delivery timelines and ability to scale with your business. If you have any quotes from or connections with suppliers already, include those details here. 

Discuss your strategies for efficient inventory sourcing, such as leveraging technology for inventory management, adopting a just-in-time inventory system to reduce holding costs and diversifying your supplier base to mitigate risks. Explain how you plan to negotiate favorable terms and build a collaborative rapport with suppliers to secure better prices, quality improvements and exclusive products.

Include your approach to handling supply chain disruptions and ensuring product availability to meet customer demand without overstocking. 

Make a plan for compliance and legal considerations

This part of your retail business plan should detail any local zoning laws, health and safety standards and specific retail sector regulations you need to make a plan for. 

Mention the need for protecting your business with the right insurance policies. Outline the types of insurance you’ll secure, such as:

• Liability insurance
• Property insurance
• Workers’ compensation

Mention your sustainability and ethical practices

Describe initiatives you’ll invest in, such as using eco-friendly materials, reducing waste through efficient packaging and implementing energy-saving practices within operations, and briefly mention their importance to your potential customers. 

Also discuss the importance of ethical inventory sourcing, ensuring that products are obtained from suppliers who uphold high standards for labor practices and environmental responsibility.

Finish by detailing plans to monitor and adapt to market trends

Future-proof your retail business plan by laying the foundation for scaling and adapting. Outline your strategies for continuous market research, including customer feedback mechanisms, social media monitoring and industry reports, to identify emerging trends and shifts in consumer preferences.

Discuss how your business plan is designed to be flexible, allowing you to swiftly adapt to changing market conditions. This might include diversifying product lines, embracing new technologies or refining marketing strategies to meet evolving consumer demands. 

Avoid these common mistakes

A good business plan is as much about what you leave out as what you put in. 

Too much detail

You’re not here to write a novel. You’re here to get busy people on board with your business plan.

“Potential partners and investors will not waste time pouring over hundreds of pages of rambling nonsense,” said Nick Edwards, Director at Snow Finders , a ski holiday company in the UK.

Long blocks of text should be avoided. Use visuals and graphics to substitute prose, with any exceptionally heavy content being attached as appendices if necessary.

Poor financial planning 

Some landlords take a percentage of sales as part of the rent. And it’s common for rent to increase annually. Your retail business plan should account for growing expenses, taxes and wider market influences to prove you’ve got a handle on your financial planning.

Spelling and grammar

Remember the basics. Grammar and spelling errors show you haven’t put diligence into the planning process. And that can undermine how partners and potential investors view the plan.  

Once you’ve written your business plan, have a professional editor look it over to catch any errors and make sure you’re as clear as possible.

How to strengthen your business plan 

As you’ll have noticed by now, you need to keep a few different audiences in mind while writing your business plan. In most cases, there are three:

• Potential investors: People or businesses who want to back your business with capital, in return for future profits or part-ownership.
• Potential business partners: Suppliers, brands and business partners who may want to supply goods or services to your business, or even help you run the whole show. 
• Banks, lenders and insurers: Financial institutions that you may need for credit cards, overdrafts, loans or revolving credit facilities. 

“Be wary about exaggerating your numbers or laying out too difficult or impossible things,” said Stacey Kane, Business Development Lead at Easy Merchant . “You want the investor who finds flaws in your plan to be the exception, not the norm. With this perspective, you can strengthen your view of what can be done with research and transparent results. Finding ways to show how valuable your idea is will also help make them more likely to invest,” she said.  

Finishing your retail business plan 

Done well, business plans are much more than a helpful written guide to your business strategy. They’re a resource to attract future business partners, and even a foundation for securing outside funding. Don’t put writing your retail business plan on the backburner for too long—it could be one of the first stepping stones to your very own thriving retail business. 

Ready to write your retail business plan? Talk to a Lightspeed product expert to discover how the right POS technology can help you show investors and partners that you mean business. 

Frequently asked questions about business plans

How do i write a retail business plan.

Begin with a clear executive summary, followed by market analysis to understand your audience.

Detail your business description, including products and services. Include sections on organization and management, marketing and sales strategies, funding requests (if applicable), financial projections and an appendix for additional documents. 

Each section should be concise, backed by research, and reflect your vision for the business.

How do I start a successful retail business?

• Identify a market need and develop a business model that addresses that need uniquely. 
• Conduct thorough market research.
• Choose a strategic location.
• Curate a compelling product mix.
• Write a business plan detailing all this, plus financial planning, and get funding.

How do you structure a retail business?

Organize your operations into key areas: procurement, sales, marketing, inventory management, customer service and finance. Define clear roles and responsibilities for your team to ensure smooth operations and a positive customer experience.

What does a retail business plan look like?

A retail business plan includes an executive summary, market analysis, business description, organization and management structure, details of product or service offerings, marketing and sales strategy, financial projections and an appendix. It’s a structured document that outlines your business goals and your financial expectations.

How do you start a business plan from scratch?

Start by defining your business idea and objectives. Conduct market research to understand your competition and target audience. Outline your business structure, products or services, marketing and sales strategies and financial plans including projections. Write an executive summary last, which summarizes the key points of your plan. Use a clear, concise and realistic approach throughout the document.

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Luke O’Neill writes for growing businesses in fintech, legal SaaS, and education. He owns Genuine Communications , which helps CMOs, founders, and marketing teams to build brands and attract customers.

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How To Write a Business Plan in 9 Steps (2024)

Business plans aren’t just for entrepreneurs who need to secure funding—they can help you plan and evaluate new ideas or growth plans, too. Find out how to write a business plan and get the most out of the process in this comprehensive guide.

A great business plan can help you clarify your strategy, identify potential roadblocks, determine necessary resources, and evaluate the viability of your idea and growth plan before you start a business .

Not every successful business launches with a formal business plan, but many founders find value in taking time to step back, research their idea and the market they’re looking to enter, and understand the scope and the strategy behind their tactics. That’s where writing a business plan comes in.

Learn how to write a business plan with a step-by-step guide, get tips for getting the most of your plan, and see real business plan examples to inspire you.

What is a business plan?

A business plan is a strategic document that outlines a company's goals, strategies for achieving them, and the time frame for their achievement. It covers aspects like market analysis , financial projections, and organizational structure, serving as a roadmap for business growth and a tool to secure funding.

Often, financial institutions and investors need to see a business plan before funding any project. Even if you don’t plan to seek outside funding, a well-crafted plan becomes the guidance for your business as it scales.

How to write a business plan in 9 steps

• Draft an executive summary.
• Write a company description.
• Perform a market analysis.
• Outline the management and organization.
• List your products and services.
• Perform customer segmentation.
• Define a marketing plan.
• Provide a logistics and operations plan.
• Make a financial plan.

Few things are more intimidating than a blank page. Starting your business plan with a structured outline and key elements for what you’ll include in each section is the best first step you can take.

Since an outline is such an important step in the process of writing a business plan, we’ve put together a high-level overview to get you started (and avoid the terror of facing a blank page).

Once you have your business plan template in place, it’s time to fill it in. We’ve broken it down by section to help you build your plan step by step.

1. Draft an executive summary.

A good executive summary is one of the most crucial sections of your plan—it’s also the last section you should write.

The executive summary distills everything that follows and gives time-crunched reviewers (e.g., potential investors and lenders) a high-level overview of your business that persuades them to read further.

Again, it’s a summary, so highlight the key points you’ve uncovered while writing your plan. If you’re writing for your own planning purposes, you can skip the summary altogether—although you might want to give it a try anyway, just for practice.

An executive summary shouldn’t exceed one page. Admittedly, that space constraint can make squeezing in all of the salient information a bit stressful—but it’s not impossible. Your business plan’s executive summary should include:

• Business concept. What does your business do?
• Business goals and vision. What does your business want to do?
• Product description and differentiation. What do you sell, and why is it different?
• Target market. Who do you sell to?
• Marketing strategy. How do you plan on reaching your customers?
• Current financial state. What do you currently earn in revenue?
• Projected financial state. What do you foresee earning in revenue?
• The ask. How much money are you asking for?
• The team. Who’s involved in the business?

2. Write a company description.

This section of your business plan should answer two fundamental questions: who are you, and what do you plan to do? 

Answering these questions with a company description provides an introduction to why you’re in business, why you’re different, what you have going for you, and why you’re a good investment. 

For example, clean makeup brand Saie shares a letter from its founder on the company’s mission and why it exists.

Clarifying these details is still a useful exercise, even if you’re the only person who’s going to see them. It’s an opportunity to put to paper some of the more intangible facets of your business, like your principles, ideals, and cultural philosophies.

Here are some of the components you should include in your company description:

• Your business structure (Are you a sole proprietorship, general partnership, limited partnership, or incorporated company?)
• Your business model
• Your industry
• Your business’s vision, mission, and value proposition
• Background information on your business or its history
• Business objectives, both short and long term
• Your team, including key personnel and their salaries

Brand values and goals

To define your brand values , think about all the people your company is accountable to, including owners, employees, suppliers, customers, and investors. Now consider how you’d like to conduct business with each of them. As you make a list, your core values should start to emerge.

Your company description should also include both short- and long-term goals. Short-term goals, generally, should be achievable within the next year, while one to five years is a good window for long-term goals. Make sure your goal setting includes SMART goals : specific, measurable, attainable, realistic, and time-bound.

Vision and mission statements

Once you know your values, you can write a mission statement . Your statement should explain, in a convincing manner, why your business exists, and should be no longer than a single sentence.

Next, craft your vision statement : What impact do you envision your business having on the world once you’ve achieved your vision? Phrase this impact as an assertion—begin the statement with “We will” and you’ll be off to a great start. Your vision statement, unlike your mission statement, can be longer than a single sentence, but try to keep it to three at most. The best vision statements are concise.

3. Perform a market analysis.

No matter what type of business you start, it’s no exaggeration to say your market can make or break it. Choose the right market for your products—one with plenty of customers who understand and need your product—and you’ll have a head start on success. If you choose the wrong market, or the right market at the wrong time, you may find yourself struggling for each sale.

Market analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it.

This is why market research and analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it. It should include an overview of how big you estimate the market is for your products, an analysis of your business’s position in the market, and an overview of the competitive landscape. Thorough research supporting your conclusions is important both to persuade investors and to validate your own assumptions as you work through your plan.

Here is an example to illustrate how to approach this section:

How big is your potential market?

The potential market is an estimate of how many people need your product. While it’s exciting to imagine sky-high sales figures, you’ll want to use as much relevant independent data as possible to validate your estimated potential market.

Since this can be a daunting process, here are some general tips to help you begin your research:

• Understand your ideal customer profile. Look for government data about the size of your target market , learn where they live, what social channels they use, and their shopping habits.
• Research relevant industry trends and trajectory. Explore consumer trends and product trends in your industry by looking at Google Trends, trade publications, and influencers in the space.
• Make informed guesses. You’ll never have perfect, complete information about your total addressable market. Your goal is to base your estimates on as many verifiable data points as necessary.

Some sources to consult for market data include government statistics offices, industry associations, academic research, and respected news outlets covering your industry.

Read more: What is a Marketing Analysis? 3 Steps Every Business Should Follow

SWOT analysis

A SWOT analysis looks at your strengths, weaknesses, opportunities, and threats. What are the best things about your company? What are you not so good at? What market or industry shifts can you take advantage of and turn into opportunities? Are there external factors threatening your ability to succeed?

SWOT is often depicted in a grid or visual way. With this visual presentation, your reader can quickly see the factors that may impact your business and determine your competitive advantage in the market.

Competitive analysis

There are three overarching factors you can use to differentiate your business in the face of competition:

• Cost leadership. You have the capacity to maximize profits by offering lower prices than the majority of your competitors. Examples include companies like Mejuri and Endy .
• Differentiation. Your product or service offers something distinct from the current cost leaders in your industry and banks on standing out based on your uniqueness. Think of companies like Knix and QALO .
• Segmentation. You focus on a very specific, or niche, target market, and aim to build traction with a smaller audience before moving on to a broader market. Companies like TomboyX and Heyday Footwear are great examples of this strategy.

To understand which is the best fit, you’ll need to understand your business as well as the competitive landscape.

You’ll always have competition in the market, even with an innovative product, so it’s important to include a competitive overview in your business plan. If you’re entering an established market, include a list of a few companies you consider direct competitors and explain how you plan to differentiate your products and business from theirs.

For example, if you’re selling jewelry , your competitive differentiation could be that, unlike many high-end competitors, you donate a percentage of your profits to a notable charity or pass savings on to your customers.

If you’re entering a market where you can’t easily identify direct competitors, consider your indirect competitors—companies offering products that are substitutes for yours. For example, if you’re selling an innovative new piece of kitchen equipment, it’s too easy to say that because your product is new, you have no competition. Consider what your potential customers are doing to solve the same problems.

4. Outline the management and organization.

If you have a management team, use an organizational chart to show your company’s internal structure, including the roles, responsibilities, and relationships between people in your chart. Communicate how each person will contribute to the success of your startup.

5. List your products and services.

Your products or services will feature prominently in most areas of your business plan, but it’s important to provide a section that outlines key details about them for interested readers.

If you sell many items, you can include more general information on each of your product lines. If you only sell a few, provide additional information on each. For example, bag shop BAGGU sells a large selection of different types of bags, in addition to home goods and other accessories. Its business plan would list out those categories and key details about the products within each.

Describe new products you’ll launch in the near future and any intellectual property you own. Express how they’ll improve profitability. It’s also important to note where products are coming from—handmade crafts are sourced differently than trending products for a dropshipping business, for instance.

6. Perform customer segmentation.

To give a holistic overview of your ideal customer, describe a number of general and specific demographic characteristics. Customer segmentation often includes:

• Where they live.
• Their age range.
• Their level of education.
• Some common behavior patterns.
• How they spend their free time.
• Where they work.
• What technology they use.
• How much they earn.
• Where they’re commonly employed.
• Their values, beliefs, or opinions.

This information will vary based on what you’re selling, but you should be specific enough that it’s unquestionably clear who you’re trying to reach—and more importantly, why you’ve made the choices you have based on who your customers are and what they value.

For example, a college student has different interests, shopping habits, and pricing sensitivity than a 50-year-old executive at a Fortune 500 company. Your business plan and decisions would look very different based on which one was your ideal customer.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

7. Define a marketing plan.

If you’re planning to invest heavily in Instagram marketing or TikTok ads , for example, it might make sense to include whether Instagram and TikTok are a leading platform for your audience—if it’s not, that might be a sign to rethink your marketing plan.

Market your business with Shopify’s customer marketing tools

Shopify has everything you need to capture more leads, send email campaigns, automate key marketing moments, segment your customers, and analyze your results. Plus, it’s all free for your first 10,000 emails sent per month.

Most marketing plans include information on four key subjects. How much detail you present on each will depend on both your business and your plan’s audience.

• Price:  How much do your products cost, and why have you made that decision?
• Product:  What are you selling and how do you differentiate it in the market?
• Promotion:  How will you get your products in front of your ideal customer?
• Place:  Where will you sell your products? On what channels and in which markets?

Promotion may be the bulk of your plan since you can more readily dive into tactical details, but the other three areas should be covered at least briefly—each is an important strategic lever in your marketing mix.

Here is an example of a marketing plan for a new business:

8. Provide a logistics and operations plan.

Logistics and operations are the workflows you’ll implement to make your business idea a reality. If you’re writing a business plan for your own planning purposes, this is still an important section to consider, even though you might not need to include the same level of detail as if you were seeking investment.

Cover all parts of your planned operations, including:

• Suppliers . Where do you get the raw materials you need for production, or where are your products produced?
• Production . Will you make, manufacture, wholesale , or dropship your products? How long does it take to produce your products and get them shipped to you? How will you handle a busy season or an unexpected spike in demand?
• Facilities . Where will you and any team members work? Do you plan to have a physical retail space? If yes, where?
• Equipment . What tools and technology do you require to be up and running? This includes everything from computers to lightbulbs and everything in between.
• Shipping and fulfillment. Will you be handling all the fulfillment tasks in-house, or will you use a third-party fulfillment partner?
• Inventory . How much will you keep on hand, and where will it be stored? How will you ship it to partners if required, and how will you approach inventory management ?

This section should signal to your reader that you’ve got a solid understanding of your supply chain and strong contingency plans in place to cover potential uncertainty. If your reader is you, it should give you a basis to make other important decisions, like how to price your products to cover your estimated costs, and at what point you plan to break even on your initial spending.

9. Make a financial plan.

The level of detail required in your financial plan will depend on your audience and goals, but typically you’ll want to include three major views of your financials: an income statement, a balance sheet, and a cash-flow statement. It also may be appropriate to include financial data and projections.

Here’s a spreadsheet template that includes everything you’ll need to create an income statement, balance sheet, and cash-flow statement, including some sample numbers. You can edit it to reflect projections if needed.

Let’s review the types of financial statements you’ll need.

Income statements

Your income statement is designed to give readers a look at your revenue sources and expenses over a given time period. With those two pieces of information, they can see the all-important bottom line or the profit or loss your business experienced during that time. If you haven’t launched your business yet, you can project future milestones of the same information.

Balance sheets

Your balance sheet offers a look at how much equity you have in your business. On one side, you list all your business assets (what you own), and on the other side, all your liabilities (what you owe). This provides a snapshot of your business’s shareholder equity, which is calculated as:

Assets - Liabilities = Equity

Cash flow statements

Your cash flow statement is similar to your income statement, with one important difference: it takes into account when revenues are collected and when expenses are paid.

When the cash you have coming in is greater than the cash you have going out, your cash flow is positive. When the opposite scenario is true, your cash flow is negative. Ideally, your cash flow statement will help you see when cash is low, when you might have a surplus, and where you might need to have a contingency plan to access funding to keep your business solvent .

It can be especially helpful to forecast your cash-flow statement to identify gaps or negative cash flow and adjust operations as required.

📚 Read more: What Is Cash Flow Management: Template and Examples

Why write a business plan?

Investors rely on business plans to evaluate the feasibility of a business before funding it, which is why business plans are commonly associated with getting a loan. 

Business plans also help owners identify areas of weakness before launching, potentially avoiding costly mistakes down the road. “Laying out a business plan helped us identify the ‘unknowns’ and made it easier to spot the gaps where we’d need help or, at the very least, to skill up ourselves,” says Jordan Barnett, owner of Kapow Meggings .

There are several other compelling reasons to consider writing a business plan, including:

• Strategic planning. Writing out your plan is an invaluable exercise for clarifying your ideas and can help you understand the scope of your business, as well as the amount of time, money, and resources you’ll need to get started.
• Evaluating ideas. If you’ve got multiple ideas in mind, a rough business plan for each can help you focus your time and energy on the ones with the highest chance of success.
• Research. To write a business plan, you’ll need to research your ideal customer and your competitors—information that will help you make more strategic decisions.
• Recruiting. Your business plan is one of the easiest ways to communicate your vision to potential new hires and can help build their confidence in the venture, especially if you’re in the early stages of growth.
• Partnerships. If you plan to collaborate with other brands , having a clear overview of your vision, your audience, and your business strategy will make it much easier for them to identify if your business is a good fit for theirs.
• Competitions. There are many business plan competitions offering prizes such as mentorships, grants, or investment capital. 

If you’re looking for a structured way to lay out your thoughts and ideas, and to share those ideas with people who can have a big impact on your success, a business plan is an excellent starting point.

Business plan types

Business plan types can span from one page to multiple pages with detailed graphs and reports. There’s no one way to create a business plan. The goal is to convey the most important information about your company for readers.

Common business plans we see include, but are not limited to, the following types:

Traditional business plans

These are the most common business plans. Traditional business plans take longer to write and can be dozens of pages long. Venture capitalist firms and lenders ask for this plan. Traditional business plans may not be necessary if you don’t plan to seek outside funding. That’s where the next type comes in.

Lean business plans

A lean business plan is a shorter version of a traditional business plan. It follows the same format, but only includes the most important information. Businesses use lean business plans to onboard new hires or modify existing plans for a specific target market.

Nonprofit business plans

A nonprofit business plan is for any entity that operates for public or social benefit. It covers everything you’ll find in a traditional business plan, plus a section describing the impact the company plans to make. For example, a speaker and headphone brand that aims to help people with hearing disabilities. Donors often request this plan.

📚 Read more: The Road to Success: Business Plan Examples to Inspire Your Own .

7 tips for creating a small business plan

There are a few best practices when it comes to writing a business plan. While your plan will be unique to your business and goals, keep these tips in mind as you write.

1. Know your audience.

When you know who will be reading your plan—even if you’re just writing it for yourself to clarify your ideas—you can tailor the language and level of detail to them. This can also help you make sure you’re including the most relevant information and figure out when to omit sections that aren’t as impactful.

2. Have a clear goal.

When creating a business plan, you’ll need to put in more work and deliver a more thorough plan if your goal is to secure funding for your business versus working through a plan for yourself or even your team.

3. Invest time in research.

Sections of your business plan will primarily be informed by your ideas and vision, but some of the most crucial information you’ll need requires research from independent sources. This is where you can invest time in understanding who you’re selling to, whether there’s demand for your products, and who else is selling similar products or services.

4. Keep it short and to the point.

No matter who you’re writing for, your business plan should be short and readable—generally no longer than 15 to 20 pages. If you do have additional documents you think may be valuable to your audience and your goals, consider adding them as appendices.

5. Keep the tone, style, and voice consistent.

This is best managed by having a single person write the plan or by allowing time for the plan to be properly edited before distributing it.

6. Use a business plan template.

You can also use a free business plan template to provide a skeleton for writing a plan. These often guide you through each section from financial projects to market research to mission statement ensuring you don’t miss a step.

7. Try business plan software.

Writing a business plan isn’t the easiest task for business owners. But it’s important for anyone starting or expanding a business. Fortunately, there are tools to help with everything from planning, drafting, creating graphics, syncing financial data, and more. Business plan software also has business plan templates and tutorials to help you finish a comprehensive plan in hours, rather than days.

A few curated picks include:

• LivePlan : the most affordable option with samples and templates
• Bizplan : tailored for startups seeking investment
• Go Small Biz : budget-friendly option with industry-specific templates

📚 Read more: 6 Best Business Plan Software to Help Write Your Future

Common mistakes when writing a business plan

Other articles on business plans would never tell you what we’re about to tell you: Your business plan can fail. The last thing you want is for time and effort to go down the drain. Avoid these common mistakes:

• Bad business idea. Sometimes your idea may be too risky for potential investors, too expensive to run, or there’s no market. Aim for small business ideas that require low startup costs.
• No exit strategy. If you don’t show an exit strategy, or a plan for investors to leave the business with maximum profits, you’ll have little luck finding capital.
• Unbalanced teams. A great product is the cost of entry to starting a business. But an incredible team will take it to the top. Unfortunately, many business owners overlook a balanced team. They focus on potential profits, without worrying about how it will be done. 
• Missing financial projections. Don’t leave out your balance sheet, cash flow statements, P&L statements, and income statements. Include your break-even analysis and return-on-investment calculations in your financial projections to create a successful business plan.
• Spelling and grammar errors. All the best organizations have an editor review their documents. If someone spots typos while reading your business plan, how can they believe you’ll run a successful company?

Prepare your business plan today

Whether you’re working on starting a new online business idea , building a retail storefront, growing your established business, or purchasing an existing business , you now understand how to write a business plan that suits your business’s goals and needs.

Feature illustration by Rachel Tunstall

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Business plan FAQ

How do i write a business plan.

Learning how to write a business plan is simple if you use a business plan template or business plan software. Typically, a traditional business plan for every new business should have the following components :

• Executive summary
• Company description, including value proposition
• Market analysis and competitive analysis
• Management and organization
• Products and services
• Customer segmentation
• Marketing plan
• Logistics and operations
• Financial plan and financial projections

What is a good business plan?

A good business plan starts with a strong executive summary. It also adequately outlines idea feasibility, target market insights, and the competitive landscape. A business plan template can help businesses be sure to follow the typical format of traditional business plans which include financial projections, details about the management team, and other key elements that venture capital firms and potential investors want to see.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are: 

• To clarify your plans for growth
• To understand your financial needs
• To attract funding from investors or secure a business loan

What are the different types of business plans?

The types of business plans include startup, refocusing, internal, annual, strategic, feasibility, operations, growth, and scenario-based. Each type of business plan has a different purpose. Business plan formats include traditional, lean, and nonprofit. Find a business plan template for the type of plan you want to write.

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Provision store business plan in a big village.

Starting a Kirana store is beneficial for business professionals to become part of the profitable industry and cater to the widespread product requirements of customers. With the rise in the economy, customers' requirements for various products also rise to an optimum extent. And the Kirana store or the provision store, whatever you call it is the easily accessible medium to shop for a variety of products. Undoubtedly, it's a profitable business not just in cities but across villages as well to meet widespread product needs.

So, if you are thinking of starting a Kirana in a large village, then you should start working on the provision store business plan strategically and efficiently. This article highlights the different steps involved in starting a Kirana store with a minimal amount of investment and allows you to make a substantial profit ahead.

Follow Six Essential Ways to Plan a Provision Store in Village

First of all, opening a provision store in the village is something not a new thing. Several small shops are already there across different villages to provide easy accessibility of products to rural customers. However, multiple small shops with limited product variety allow the customers to run from one place to another. Well, the solution lies with your full-fledged Kirana store that can be set up ideally based on the following steps.

• Know the target market: Knowing your target market plays an integral role in providing the right set of products and increasing sales. Starting a provision store in a village implies catering to the requirements of rural customers. That means you need to keep retail-specific products in different quantities to meet the requirements of village people. • Select the ideal location: Certainly, local plays a critical role in deciding, whether target customers will come to your shop and buy the products. Starting a Kirana Store in a village has to be very specific in terms of selecting a central location, easily accessible for all the villages. It will help people to swiftly reach your shop and buy their preferred choice of products. • Finalize the setup cost: After selecting the location and finalizing your target market, the next step lies in deciding the capital required. It is essential to plan your setup cost in advance and move in a particular direction. You need to take care of the costs related to products, shop rent, legal charges, storage units, counter, and more. • Do the legal formalities: It is difficult to start a Kirana store without having the proper license and registration. After finalizing your products, location, and capital, next to do the thing is to apply for the shop's license. In addition to this, you also need establishment registration, business license, and other such permissions. • Know the goods price: Knowing the prices of products you will sell to customers is another imperative factor to keep in mind. Depending on the list of products to sell, you should be aware of their price and profitable factors. • Do the GST Registration: Another important part of your provision store business plan is applying for the GST Registration. Paying commercial tax is something mandatory and you cannot prevent it. To showcase the real-time selling of products at the listed prices inclusive of GST charges, you need to have the registration certificate.

Starting a Kirana Store in a village is not that difficult. With a strategic business plan, you can move ahead with ease and start the store to earn a great deal of profitability. Learn the insights of a provision store from the Kirana business consulting experts.

Author's Bio:

Aarnav is a dedicated professional in the creative field of content writing. He has rich expertise in writing for the retail business sector. Continue to read his immersive and engaging articles and blogs on the profitable retail sector.

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How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

Build your dream business with the help of a high-paying job—browse open jobs on The Muse »

What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

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How to write a business plan for a retail store?

6 June 2022

A retail store business plan is a formal document. It provides a snapshot of what your business is and how it can develop. Typically, a retail store business plan will forecast the next five years. Think of it as a map which shows you where you are going. And how to get there. A plan can help you anticipate potential pitfalls. A retail store business plan helps you think about what you will be doing months or years ahead. It is also something you can show to investors. Crafting a business plan is a creative experience.  Ankorstore can help you.

What’s a retail store business plan? 

7 steps of the business plan, what are the essential elements of a retail business plan, who to present the business plan to, what exactly is a business plan.

A business plan is a document which contains all your important business goals, the methods of attaining them and the resources and timescale needed for this. It is a summary of everything you want to achieve. All your strategy will need to be set out to enable you to get sales for your product or products.

It will also contain all your professional details. It is one of the most important documents you will ever create. . It is better to get it absolutely right through lots of in-depth research. So much depends on it, so…

• Don’t rush it..
• Take the time it needs.
• Every word is important.
• Think through every concept.

Why making a business plan helps the success of the retail project

Many new entrepreneurs are creative. They have things to sell that you won’t find elsewhere. But creativity needs a structure, a good business plan for your retail store . A good retail business plan is a necessary step to save you from making expensive mistakes. It will also help you look professional and is an absolute necessity if you are looking for investors.

Start by setting your goals

Do you have dreams of a high-street store or an e-commerce website? You need to plan every aspect from finances to marketing. As you do your research you will clarify your own ideas and understand your business better.

A plan should include both your short-term and long-term goals. There are also internal and external objectives. The internal ones might not be a public part of the plan. They might involve discussing goals with employees and offering incentives to them. In the external objectives you set goals for overall performance. Pricing and customer service are important here.

How to efficiently analyse the market

Entrepreneurs come from all sorts of backgrounds. Some have had a wealth of experience in the retail trade before deciding to go it alone. Others are straight out of school or university and have brilliant ideas they want to put into operation. Entrepreneurs are starting concept stores offering brands and authentic goods of the sort you cannot find on Amazon or in the average supermarket. Your specialty might be:

• gourmet foods;

It can be almost anything that is a bit special. You can learn by looking at the business plan s of other retail stores , particularly those who are offering similar lines of products.  If you have a high street store you can also check out similar businesses in your area.

A few tips to analyse customer behaviour

Who is your ideal customer? What is their age, background, education, financial status? Is this going to be a rare expensive purchase? Or is it something people will need to buy frequently? How do you get repeat custom? Word of mouth is one of the best recommendations. You have to inspire trust to get that.

How to set you retail strategies

Make a one-page summary to start with. You need to find an answer to the following questions:

• Who is your target market?
• Who are your competitors?
• Will you need staff?
• Who are your suppliers?
• What is your market plan?
• How will you run your business?
• What is the supply chain?

Besides, you will need a merchandising plan to make sure you get the best return on your investment. And how will you record your sales, returns, purchases of materials, etcetera? And what is your positioning in the market? What makes your brand different?

The importance of making short-term plans

Not everything in your plan will be long-term. With a retail store some things will be seasonal. You could focus on the next sales period. Or do you have products suitable for Mother’s Day? Or for Christmas gifts? Do you want to run a Black Friday campaign, American style? Do you want to celebrate your store’s opening day with special offers for customers?

How to implement your plans

Make sure all the legalities are in place before you start. Who owns the company? Does it have a separate correspondence address? How can the public contact you?  Are there other directors involved? If so, what are their roles? Try to keep to your original goals within the times set. Stick to your aims. Try to meet specific targets.

In-depth analysis of your performance

The analysis of performance will be an ongoing process as your business progresses. Choose intervals at which you want to reassess this analysis . This will help you improve on several aspects:

• Are you reaching the goals you set out at the start?
• Is anything getting in your way?
• Has a new competitor appeared?
• What do you need to do to improve profits?
• Who is responsible for keeping all the pages on social media and your website up to date?

And you will also need to do a thorough financial analysis. Have you started to make a profit after the start-up costs?

Project presentation

Explain your products. This part can be great fun. Let the world know what you are selling and why you are so enthusiastic about your goods. How do your products differ from those of your competitors? Make sure you have professional photographs to enhance the image of your products online.

Publicity is another thing to consider. Where do you want to advertise online and offline? What is your budget? Does your shop have a website? Can you make additional use of Facebook, Instagram and all the other host of places in social media to promote your goods online ? Consider the four Ps otherwise known as the marketing mix:

Products and restocking

Products can be dispatched on your behalf from warehouses or distribution centres. Some entrepreneurs prefer this. Others like a more hands-on approach which could involve anything from a bricks-and-mortar store to a thriving regular market stall. The choice is yours. Online or offline or better still both.

Make sure you are always well-stocked with the most popular products. Customers can be fickle. If they can’t buy what they want when the mood takes them, they may take their cash elsewhere. It is more important to keep successful lines well-stocked than to attempt to stock everything. But also look at new products. Keep up with the competition.

Market research

Find your target market. Who are they and why should they buy from you? Is your product something basic everyone needs like foods, beauty products, clothes? Or are you targeting a specific luxury market?

It is useful to gather information on your competitors as well as possible clients. If you are working from a shop rather than solely online by e-commerce, location will be an important aspect. Is there a similar business nearby? What can you do better than them?

Look at general trends in retail. What is selling? And what isn’t? How can you boost sales ?

Presenting to investors

Investors may be family or friends you have known all your life. Or they may be people who have a particular interest in the products you are selling. Or they could be those who think that you and your business look like a promising investment.

Presenting to banks

Banks are cautious investors, and you will need the best of business plans to get a loan these days. But they have financial acumen and will know a good business proposition when they see one.

Be complete and precise in your retail store business plan. Have it proofread for feedback. Include all the essential information and practical details. Write about goals, ideas, strategy, innovation, marketing, and performance. But remember – it is not fixed in stone. As your business grows you may want to adjust your original ideas. The market is always changing, and you will want to stay ahead of the competitors to maximise your profits.  Ankorstore helps you to get all the details right.

A business model is a one-size-fits all statement. It is useful up to a point but not as essential as a business plan. A business plan is specific to you, your business and its location.

A business plans needs to be written right at the start of any business. It is essential as a tool to clarify your own ideas. It is also important as a mark of professionalism to secure cash investors.

Whether your store is going to be offline or online you will need to begin your business plan with a good company description. What is the company’s name? Where are you located? Is it online or offline? Or both? Let the world know what product or products you are selling and why your products are better than everybody else’s. The rest is aims, finances and a general picture of the sales market for your product

Related posts "Build my business plan"

Financial projections and forecasting are incredibly important for your retail store. In order to assess the health of your retail venture, you need to be able to look ahead at future inflows and outflows of cash and reassess historic returns. We’ll teach you how in our article.

If you’ve ever wondered why you need a business plan or what it’s used for, read on. From market research to budgeting, there is so much day-to-day managing for small businesses that it’s critical to maintain clear objectives and a concise repository for all that information.

The executive summary or operational summary is essential for attracting funders. With the advice of Ankorstart’s experts, strengthen your business plan.

Before starting an e-commerce business, it is important to be well prepared. Here is a step-by-step guide to writing an effective business plan tailored to the specificities of retail e-commerce.

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Business Plan For a Provision/Variety Store

• Executive Summary

A.        INTRODUCTION

Management Team

The products

Personal goals

Business goals

B.        M ARKETING ANALYSIS

Sales forecast

Marketing Actions to achieve objectives

C.        ORGANIZATIONAL AND HUMAN RESOURCES PLAN

Personnel Department

Marketing Department

Number of Employees Needed

Employee Welfare Programme

Cash Flow Forecast

D.        FINANCIAL PLAN

Estimates of Capital expenditure needs

Pay-back plan

E.         CONCLUSION

EXECUTIVE SUMMARY

TABLE OF CONTENT

1.1       Management Team

1.2       Background of the Business

1.3       Product

1.4       Market

1.5       Competitor

1.6       Personnel Objectives

1.7       Business Goal

1.8       Objective

2.0       Marketing Plan

2.1       Marketing Goal

2.2       Sales Forecast

2.3       Revenue Forecast

2.4       Marketing Objectives

2.5       Strategies for Achieving the objective

2.6       Estimate of Cost of Marketing Action

3.0       Production and Operation Plan

4.0       Organizational and Human Resources Plan

4.1       Administrative Department

4.2       Marketing Department

4.3       Production Department

4.4       Maintenance and Security Department

4.5       Enterprise Employees

5.0       Financial Plan

5.1       Annual Personnel Cost

5.2       Estimate of Capital Expenditure

5.3       Estimate of Net working Capital

5.4       Cash Flow Forecast

5.6       Balance Sheet

5.7       Break-Even Analysis

5.8       Pay-back plan

6.0     Risk Assessment

Miragrade Provision/Variety Store Business is a sole proprietorship business that is registered under the Laws of Federal Republic of Nigeria. It is owned by Mr. Olu Olawale, who has a Master Degree in Textile/Graphic Design and a Master Degree in Business Administration. The business is located at No 4, Step Down, Lagos Benin Express, Ore, Ondo State. The business is intended to sit on a fifteen acres of land that will cover the offices. The expected total capital investment is N10,000,000 ( Ten Millions Naira Only) and it is expected to commence in June, 2021.Going by the operational plan, marketing analysis, intended management approach, financial plan and projection and  risk management plan; the business is expected to generate a massive return on investment , and hence it is considered a profitable and viable business.

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CHARGES FOR BUSINESS PLAN/PROPOSAL 0 - 50 Millions                         -N10, 000 N51Millions - N150Millions - N20, 000 151Millions - N300Millions - N30,000 301Millions - N500Millions -N40,000 501Millions AND ABOVE    - N50, 000

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How to write a restaurant business plan + free template (2024)

By Homebase Team

Whether you’re living the dream of opening your own restaurant or reworking your existing concept, a restaurant business plan template takes a ton of stress out of writing a business plan.

With prompts for every section you’ll need, we’ve created our free restaurant business plan template to be your operational foundation (you’re welcome!). Something you can download, customize, and come back to whenever you make business decisions for your restaurant.

But first, let’s go through all the ways a written business plan helps shape your restaurant, and why it boosts your business’s chance of success.

What is a restaurant business plan?

A restaurant business plan is a written document that lays out an overview of a restaurant, its objectives, and its plans for achieving its goals.

It’s needed across all kinds and sizes of restaurants, and can be a handful of pages long or much more detailed. A well-written restaurant business plan not only helps you organize your ideas, it’s also a key part of getting investor funding .

Starting a restaurant? Here’s why you need a business plan. 

Creatively, opening a new restaurant can be incredibly exciting. But it’s also super complicated. From licenses, to equipment, to building a team, each phase needs a lot of attention to detail.

Before you jump in, it’s important to shape your plan of attack, organizing your business ideas into a clear, concise narrative that an outsider could easily understand. A business plan is an essential part of this—and here’s why.

Your business plan helps you:

Set short and long-term goals.

A restaurant business plan not only shows how your business will operate in its early stages, it also shows what steps it’ll need to follow as time goes by. Setting both your short and long-term goals at the outset makes you more likely to achieve them.

Understand your resource needs.

Going through the exercise of writing a restaurant business plan is as important as having the finished document in front of you. As you organize your thoughts, your resource needs—from the amount of capital you need to raise all the way down to the equipment you need to find—will take shape. 

Reduce potential risks.

Sadly, some 60% of restaurants fail within the first year of opening. One of the main reasons? A failure to plan. Your business plan will help you plan for most challenges at your restaurant before they come up, keeping you on the right side of that number.

Develop a marketing strategy.

As you do your market analysis and figure out who your customers are likely to be, the ways you’ll promote your business will get clearer. The more specific you are with your market research, the easier and more effective your marketing efforts will be.

Build your team.

Your business plan helps you see who you’ll need on your team and which roles you’ll need to fill first . For investors, it’s a document showcasing everyone’s collective experience, personalizing your restaurant in their eyes and packing a professional punch.

Share your vision.

Whether you’re using your business plan to secure startup funding or need additional capital after you’ve already opened, your restaurant business plan shows an investor or lender exactly why they should get behind you. 

The 9 elements of a strong restaurant business plan.

Your restaurant business plan will be unique to your vision. But all good business plans hit standard points, and whoever reads yours will expect them. As you develop and finalize your ideas, here are nine key elements you should include. 

1. Executive summary

A strong restaurant business plan begins with a strong executive summary. This is a sharp, concise overview of your restaurant and your opportunity to grab people’s attention.

Here’s where you communicate, in a nutshell, what kind of restaurant you want to run. Which demographic will you be targeting? Why is your business something the community wants or needs? Especially if you’re asking for financing, include a snapshot of your financial information and growth plan as well. 

Your executive summary should briefly lay out:

• Your mission statement. Why are you starting this restaurant now, in this location? 
• Your idea. What’s the concept of this restaurant?
• Your plan of execution. What are your key steps to making this concept work?
• Your potential costs. What are your expected expenses?
• Your anticipated ROI. How much do you expect your restaurant to make?

Many investors will make a split-second decision off of the executive summary alone—it might be all they’re going to read, so make every word count.

2. Company description

Now it’s time to let your creativity out and give your restaurant concept life. Give a more detailed description of your concept that lets your passion for what you’re creating come through. 

Flesh out all the other details of your proposed restaurant, including your restaurant’s:

• Style of cuisine and any unique selling points or differentiators that will make customers choose you
• Service style
• Restaurant name (or at least ideas)
• Size, seating style, and capacity
• Location ideas or the location you’ve scouted or secured
• Ambiance ideas including décor, lighting, and music
• Operating hours
• Other service offerings like whether you’ll offer delivery or takeout, delivery guarantees, catering, and any retail products you plan to sell
• Legal structure (e.g. sole proprietorship, LLC) 
• Existing management and their roles, including yours
• Experts or advisors you’ve brought on board

3. Market analysis

Present the research you’ve done on your target market. Make a couple of buyer personas to represent your future customers, explaining:

• Where your target customers live
• Their income levels
• Their dining-out and/or ordering-in pain points (e.g. lack of late opening hours, lack of family friendliness)
• How often they dine out or order in

Go through which other restaurants already have a customer base in your area, then explain why people will choose your restaurant over others. 

4. Sample menu

Even at the business plan stage, menu engineering is crucial. The specific menu items you’re likely to serve—the biggest thing that will set you apart—should shine through with descriptions that are short, clear, and evocative. If you have an executive chef already, this is a great area for them to add input.

Use language that will get people excited about trying your offerings. Hire a designer or use an online program to create your own mockup using the same colors, fonts, and design elements as the rest of your branding. 

5. Business structure

Dive deeper into your business structure (sole proprietorship, partnership, LLC, etc.) and organizational management. Show what your different employee positions will be (co-founders, managers, servers) to give a sense of your team’s makeup. An organizational chart can be helpful here.

Investors won’t expect you to have your entire team on board at this stage, but you should have at least a couple of people firmed up. For the roles that are already filled, including your own, summarize your collective experience and achievements. Bullet points work well, or some people choose to go into more detail with full resumes for the executive team or critical team members.

6. Restaurant design and location

Long before you sign a lease, make sure that your new offering will outshine existing ones nearby. In this section of your business plan, explain why your chosen location, or the ones you’re narrowing down, are going to be an effective space for your target market.

Consider things like:

• Neighborhood demographics
• Foot traffic
• Labor costs
• Accessibility

Hand in hand with location, your restaurant’s interior design—both in its floor plan and its ambiance—is also crucial to your business’s viability. Come up with a captivating restaurant design that communicates your theme and matches your cuisine, creating a memorable customer experience. Decide how many tables you’ll be serving, and plan out any outdoor seating.

Touch on things like:

• Team uniforms
• Flatware and glassware

7. Marketing strategy

How do you plan to market your restaurant? Your plan for grabbing customers’ attention is vital to getting diners through the door, especially at the beginning before word-of-mouth advertising has taken off.

What kind of offers will you provide? Will you have promotional events, direct mail, or a social media strategy ? Go through your planned marketing campaigns and explain how each of them will help secure your target market. 

8. Takeout and delivery options

If you’ve decided to have takeout and delivery at your restaurant—pretty important for most target markets—decide whether you’ll use your own drivers or a professional fleet like Uber Eats or DoorDash.

Show how you’ll provide the smooth digital experience your customers will expect. Decide if and how your website will come into play, bearing in mind that in 2023, 40% of consumers preferred to order directly from the restaurant website .

9. Financial projections

Your restaurant’s projected budget need to be solid, especially if you’re using your business plan to get startup funds. Without this, investors have no way of knowing if your business is a good investment or when it will become profitable.

Hire an experienced accountant with expertise in running restaurants and write down your market research, your planned costs , and your projected income. Show how investor funds will be used and whether you’ll be putting up collateral to get a loan. Give a sales forecast, usually for the first five years, and make sure to give a break-even analysis.

Get started with our free restaurant business plan template.  

As the team behind Homebase , we know how much there is to consider when you’re starting a new restaurant. We’re proud to be an all-in-one partner for thousands of restaurants large and small—helping make everything from staffing, to scheduling, to team communication easier for business owners.

And we know that your restaurant business plan is a high-stakes document. That’s why we created our free restaurant business plan template to make sure nothing gets overlooked.

Check out our free, downloadable template to get your ideas into shape, get started on your restaurant journey—and get investors excited to jump on board with you. 

Download your restaurant business plan template for free: Restaurant business plan + free template (2024)

Stop chasing down phone numbers with our built-in team communication tool. Message teammates, share updates, and swap shifts — all from the Homebase app.

Restaurant business plan template FAQs

What is the basic planning document for a successful restaurant.

The basic planning document for successful restaurants is a restaurant business plan. A restaurant business plan lays out a restaurant’s long and short-term goals and its plans for achieving those goals. Restaurant planners use it both to finetune their ideas and to secure investor funding.

How to write a restaurant business plan.

When writing a restaurant business plan, include an executive summary, a detailed restaurant description, market analysis research, a sample menu, a breakdown of your business structure, the design and location of your restaurant, your planned takeout and delivery options, your marketing strategy, and your financial projections.

What makes a business plan template for restaurants different from a standard business plan?

A restaurant business plan template differs from a standard business plan by including things like menu engineering, interior design, kitchen operations, front-of-house management, takeout and delivery offerings, and location analysis, which are unique to the food service industry.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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How to Start an E-Commerce Business In 2024

Published: Jun 25, 2024, 2:51pm

Reviewed By

Table of Contents

What is e-commerce, types of e-commerce businesses, why start an e-commerce business, 8 steps to start an e-commerce business, 5 tips for running your e-commerce business, bottom line, frequently asked questions (faqs).

E-commerce is more popular today than ever before. Between 2019 and 2023, the number of e-commerce websites increased from 9.2 million to 26.5 million. If you’re looking for a way to earn money online while being your own boss, an e-commerce business may be worthwhile.

While it takes much time, effort, and dedication, it can become a profitable, enjoyable venture. With our handy guide on how to start an e-commerce business, you can hit the ground running and bring a successful e-commerce store to life.

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Before we discuss what it takes to start and run an e-commerce business, let’s define e-commerce. Put simply, e-commerce refers to the buying and selling of products or services online. An e-commerce website acts as a virtual storefront, allowing customers to purchase what they want from their desktop or mobile devices. While brick-and-mortar locations can be attached to e-commerce websites, many e-commerce businesses solely operate online.

In general, e-commerce businesses fall into these four categories:

• Business to customer (B2C): A B2C website sells to individual customers, similar to brick-and-mortar storefronts. Customers can choose a product, check out, and wait for the product to be shipped to them.
• Business-to-business (B2B): A B2B website sells products or services to other companies. It usually receives many bulk and recurring orders.
• Consumer-to-consumer (C2C): A C2C website or marketplace allows customers to sell to one another. Etsy and eBay are popular examples of C2C sites.
• Consumer to business (C2B): A C2B website allows individuals to sell to businesses. Customers can often write reviews, exchange affiliate links, or provide places on their websites in exchange for compensation.

There are a number of benefits to e-commerce stores, including:

• Lower overhead costs: Compared to running a brick-and-mortar store, an e-commerce website is often more affordable. There’s no need to pay for a commercial property and the utility costs that come with it. Instead, you’ll invest in a domain name, web hosting, inventory and digital marketing.
• Chance to reach a broader audience: With an e-commerce store, you don’t have to limit your customer base to where you’re located. Even if you’re in a small town, you may reach customers across the country and world. This can lead to higher profits and greater success.
• Ability to easily scale: It’s much more difficult to grow a business with physical storefronts than one that operates online. If you go the e-commerce route, your website and store can grow as your business grows. You won’t have to open and manage more brick-and-mortar locations.
• Flexibility for customers: In today’s day and age, customers are busy and often lack the time or desire to drive to a store and purchase what they need. If you can serve them through an e-commerce website, they’ll be able to make purchases whenever they want, from the comfort of their own home, office or anywhere with an internet connection. Flexibility can lead to happy customers who return to your store and refer their friends.
• Access to customer data: An e-commerce business can allow you to collect valuable customer data. You may gain insights on your customers’ buying habits and demographics. In addition, you’ll have a better understanding of demand and be able to reduce the risk of understocking or overstocking as a result.

1. Define your e-commerce business idea

First and foremost, figure out what you’re going to sell. Ideally, you’d choose a product or service in a very specific niche. This way, you’ll have less competition and increase your chances of success.

If you decide to sell clothing, for example, you can target young professionals with affordable suits for young children with comfortable formal wear. Make sure that you’re passionate about whatever you’re trying to sell and/or can do or make well.

2. Validate your idea

A business idea is only worth pursuing if you determine it’s actually viable. To do so, consider the following:

• Market-based criteria: Market-based criteria focuses on market factors that will impact your business. It considers market size, competition, target customers and whether your products or services are trends or part of a flat or growing market.
• Product-based criteria: Product-based criteria revolves around your products and services. It examines your potential selling prices, size, weight and durability, how seasonality may affect demand, product regulations and whether your product caters to a passion or solves a pain point.

Both market-based and product-based criteria can help you understand whether your products or services have potential. If you believe that there is a market for your offerings, you can move on to the next steps.

3. Write a business plan

Once you hone in on and validate your business idea, it’s time to create a business plan. Think of your business plan as a blueprint that outlines what you hope to accomplish and how you’ll get there. In general, a business plan involves the following components:

• Executive summary: This is where you discuss your structure, industry, leadership team, and offerings.
• Competitor research: Competitor research is all about your competitors and their tactics.
• Product or service descriptions: Product or service descriptions explain each offer and how customers may benefit.
• Marketing and sales strategy: The marketing and sales section should describe what you’ll do to reach prospective customers and retain the ones you land.
• Financial projections: Here’s where you may want to work with an accountant to estimate your pricing strategy and profit goals.

Learn more: Simple Business Plan Template (2024)

4. Set up your business

After solidifying your e-commerce business idea and finalizing a business plan, you can take the plunge and set up your business. You’ll choose a business structure, name your business, apply for an employer identification number (EIN), and open a business checking account. Getting all the licenses and permits you’ll need to operate legally is also a good idea. For help with the setup process, don’t hesitate to contact an attorney, accountant, or other professionals who can answer any questions and steer you in the right direction.

5. Develop or source your products

Next, you’ll need to develop the products you plan to sell. If these are tangible products, you may make them yourself or leave the task to a manufacturer. At this point, you should decide whether you want to produce or order your products in bulk so you’ll have inventory in stock.

You may decide to start small and only stock a few products until you get a better sense for demand and determine whether bulk inventory makes sense. Another option is dropshipping , which is when products are manufactured and sourced when orders are placed. If you’re selling professional services online, such as graphic design or bookkeeping, you should zero in on what they’ll be and how much you’ll charge for them.

Learn more: How To Start A Dropshipping Business

6. Create your e-commerce website

Your e-commerce website will be one of your most important assets. Customers will visit your site to learn about you, explore your offerings, and, hopefully, make purchases. The easiest way to launch a site is through an e-commerce website builder, such as Shopify or BigCommerce . While every builder is different, most allow you to market your offerings, manage inventory, collect payments, ship orders, access analytics, and more.

If you’re limited on funds or don’t want to invest too much in your business, a free e-commerce platform can be helpful. As your business grows, you may always upgrade to a paid plan or platform. Do your research and compare your options to figure out the best e-commerce tool for your unique budget, preferences, and goals.

7. Figure out order fulfillment

Fulfillment is essential to your e-commerce store because it ensures your customers receive the products or services they paid for. Fortunately, most e-commerce website builders come with shipping label printing, allowing you to add shipping costs at checkout automatically. If you want to take the entire fulfillment process off your plate, you might want to outsource it to a company. Just make sure your potential profits outweigh the fees they’ll charge.

8. Market your e-commerce business

In a perfect world, you’d launch your e-commerce website, and countless customers would run to it. The reality, however, is that you’ll need to find, attract, and convert your target audience. While your marketing plan will depend on your budget, products or services, and capabilities, it may include search engine optimization (SEO), social media marketing, paid search, email marketing, and/or influencer marketing. Regardless of your chosen strategies, be consistent and establish a brand that allows you to stand out from your competitors.

Once you have all your ducks in a row and your e-commerce store is ready for business, keep these tips in mind:

• Focus on customer retention: Retaining a current customer is more accessible and less expensive than landing a new one. That’s why you should keep your customers returning through excellent service, loyalty programs, exclusive discounts and new products and services.
• Optimize your shipping strategy: While an e-commerce store offers many benefits to customers, high shipping costs can turn them off. If possible, offer free shipping or deals for loyal customers or those who spend over a certain amount.
• Offer excellent customer service: In the world of e-commerce, the customer truly is king. That means you must be responsive and cater to customer needs and preferences through friendly agents, live chat and 24/7 availability. Otherwise, your reputation and profits will likely take a hit.
• Diversify your distribution channels: To raise your likelihood of success, go beyond your website and use other channels to sell your offerings. Amazon, social media and affiliate marketing are a few options to consider.
• Upsell and cross-sell: When you upsell, you encourage customers to purchase a higher-end product or service than the one they were considering. A cross-sell is when you encourage customers to buy products that are related to complementary products. Both strategies can boost profits.

An e-commerce business can be advantageous. It may allow you to share your passions, interests or experience with customers near and far while providing some great income. By following the steps and tips listed above, you’ll put yourself on the path to success. Best of luck!

How much does it cost to start an e-commerce business?

Several factors will determine how much you’ll pay to launch an e-commerce business. These include fees for your website, payment processing, stocking, order fulfillment, and warehousing. The general costs of running a business, such as accounting, marketing, and employee payroll, will also affect your overall cost.

What are the three types of e-commerce?

The three main types of e-commerce businesses are B2B, B2C, and C2C. Your products or services will help you determine the suitable business model for your e-commerce store.

Is e-commerce actually profitable?

Just like a business with a physical storefront, an e-commerce business has the potential to be profitable. However, profitability often takes time, so you must be patient before your efforts genuinely pay off.

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