How to Write a Business Plan for a Retail Store

Posted by Anonymous , 9/4/2007 Tags:WriteBusinessPlanRetailStore
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How to Write a Business Plan for a Retail Store

Introduction

You have decided to become an entrepreneur and start your own retail business. Before you open your doors, you will want to write up a business plan to help you define your objectives, set goals and see potential problems. You can then correct any problems before they occur. Basically, a business plan is a plan for success.

Instructions

Difficulty: Moderate

Business Description

Steps

1

Step One

Describe the products, services, location and facilities. List the benefits to the customer. Discuss your business objectives.
2

Step Two

Prepare your business analysis. Assemble an industry analysis and do a market analysis. Research the competition and evaluate their products. Consider the advantages and disadvantages you have over other retailers.
3

Step Three

Create a product development plan. Discuss customer service, quality assurance and insurance. List the vendors, including electric, phone, water and shipping.
4

Step Four

Create a management plan. Decide on your business structure and create the management team. Determine your staffing needs.
5

Step Five

Write an executive summary. This is a miniature version of your business plan and where you describe the business and create your mission statement. Include market potential, management team and prepare an exit strategy.

Tips & Warnings

  • Give an overview of the product lines. Include visual aids.
  • Do an organizational chart to illustrate your management plan.
  • Use resources such as websites, small business agencies and financial consultants. Look at sample retail business plans online. There are also business plan software available for purchase.
  • Make sure your retail business is customer-friendly.
  • The executive summary will appear first in your document, but will be the last thing you will finish writing.
  • Don't forget to look into the regulatory issues and technology required for your retail industry.

Marketing Plan

Steps

1

Step One

Establish your sales objectives and develop a marketing strategy.
2

Step Two

List your promotions, advertising and publicity strategies.
3

Step Three

Determine the method of distribution for your retail business.
4

Step Four

Decide on pricing, discounts and incentives. You might offer discounts to regular customers.

Tips & Warnings

  • The first impression is critical for your retail business. Ensure that it is a good one for your customers.
  • Networking is very important. Consider joining the Chamber of Commerce or other organizations.
  • Advertise during peak seasons for your retail business.
  • If you are using bar codes, make sure they are UCC compliant.

Financial Plan

Steps

1

Step One

Focus on a financial strategy. Basically figure out the funds available and the funds required for your retail business.
2

Step Two

Assemble the financial documents. This includes a profit/loss statement, cash flow analysis, balance sheet, projected income statement and break even analysis.
3

Step Three

List your financial resources. Determine any additional funding needs and how you will meet them.
4

Step Four

Predict sales forecasts.
5

Step Five

Prepare a list of inventory.

Tips & Warnings

  • Be sure the numbers add up.
  • Be detailed. Use charts and graphs as visual aids.
  • Don't forget to figure out the tax rates and commissions.
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