Retail Store Business Plan
Retail stores are popular business concept for novice and experienced entrepreneurs. Our business plan writers define a retail store as a company selling tangible goods. Up until recently, retail stores were considered to be brick-and-mortar. In other words, retail store would be found in a strip mall or a stand-alone building that is easily accessible for customers. However, thanks to the Internet, retail stores may also be online as well.
Quality Business Plan understand the challenges entrepreneurs face when attempting to write a business plan for a retail store. Because of these challenges, our company has consulted with business plan writers and business plan consultants to help explain various aspects related to the writing process for a business plan for this industry.
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Our business plan writers are located in Orlando, Fl. We have researched and written business plans for numerous businesses in the US.
Starting a Retail Business
Starting a retail business takes significant planning, capital and research. Because of these challenges, an excellent starting point for embarking on a retail business is with your business plan. In your business plan, a main section will be related to startup cost for your business. It is here that our business plan writers strongly recommend to start.
Startup costs for a retail store often starts with identifying a retail establishment for your proposed business. Costs involved with identifying an establishment may include a credit check fee charged by potential landlords. When tenant seek to rent a commercial establishment, landlords often check credit to ensure credit worthiness of the applicant. This fee may range from $25-$75.
Once you settle on a place for your retail business, the real costs beginning. Costs to transform a shell in a retail establishment to a finished product may range from 50,000 to over $500,000, depending on the type of retail store you envision. These costs are often called buildout fees. Fortunately, sometimes, landlords will often credit tenants with funds towards buildout. In real estate terminology, this is called “TI” or tenant improvement allowance.
Get Ready to Open
After you build out is complete, then the fun begins. This is where retail store owners now need to purchase inventory, hire staff, start advertising and get ready to offer world-class service to your potential customers.
Structuring a Retail Store Business Plan
Retail store business plans should be structured in a specific order to ensure that readers understand the totality of the business concept.
Retail Store Company Description:
A retail store company description should always start with identifying the problem that your company is solving. For example, if your retail store will be selling footwear, then the problem that you are solving is protecting people’s feet from harm. Further, this type of business is also solving problems related to a customer’s need for attention or to better assimilate the other people through fashion statement. Regardless of the problem, identifying the problem of the customer has will help entrepreneurs focus on creating specific marketing campaigns to help consumers understand how this product will solve their problem.
Retail Store Operating Structure:
In the operating structure, entrepreneurs should include a hierarchy diagram showing the different retail positions that will be included in your store. Common positions include CEO, manager, assistant manager and sales associate. By creating this diagram, the reader will be able to see whether the company will have a vertical or horizontal chain of command. This will indicate how much responsibility will be assigned to each position as well.
Retail Store Funding Request:
For most industries, the funding request is a critical component for most business plans. This is especially true for the retail store industry. In the retail store industry, entrepreneurs are often faced with excessive need for capital. These findings may be spent on inventory, buildout, paying employees and other important fees. Because of the multitude of fees and funds being paid out, a bullet pointed list is often the best approach for showing where funds will be spent.
Retail Store Financials:
A final segment that is critical for retail store business plans is the financial section. When our business plan writers create financials for retail stores, we often start with expected daily sales for various product categories. From this, we then estimate cost of goods for each category. This now leads to subtracting the cost of goods from the sales price to determine gross profit. With these calculations, make sure to then use a spreadsheet to tie them into a 24-month profit and loss statement. After this, creating a five-year income statement is achievable. The biggest tip to remember when creating your financials is to try not to itemize each product and cause. This will be extremely burdensome
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Contact Quality Business Plan today for help with a retail store business plan.