6 Essential Parts of a Retail Business Plan
A business plan for a retail store can be a complex multi-page document created using special software or it can be a page torn from a notebook. Whatever format, here are the essential elements of an excellent retail business plan.
6 Reasons to Write Business Plan
One of the most important things you can do for your business, new or existing, is to write a business plan. Whether it is formal or informal, on paper or on disk, the process of creating a business plan will only help your business become successful. The following are our top reasons to write a business plan.
Products and Services
This part of the business plan is most important to retailers developing a business. The Products and Services section describe the goods and services offered, how they are provided, information about the vendors, and any plans for future growth of the product lines.
What is My Industry's Average Sales Per Square Foot?
The average sales per square foot for your chosen type of retail store are often needed to write a business plan. However, this data can prove difficult to locate. Here are a few places to find the average sales per square foot by retail industry.
Business Plan Books
Many books have been written on starting a business and the necessity of writing an effective business plan. Each book in our list of recommended business plan books, is devoted solely to the topic. Some have forms and outlines, others have sample business plans for you to review. These are the best step-by-step guides on content, presentation and execution of a business plan still in print today.
Business Plan FAQ
Answers to common business plan questions from Darrell Zahorsky, your About Guide to Small Business Information. Learn answers to frequently asked questions (FAQ) such as: Why do I need a business plan?
In the management section, the information will show that the retail business has the necessary human resources to be successful. It will answer questions about the key management personnel and their background, explain how the store will be staffed and detail all personnel compensation and benefits, including employment policies and procedures.
One of the more difficult sections of the business plan, the Financial Plan will involve the company's revenue and profitability model. The Financial Plan assesses the amount of capital the retail business needs, as well as the proposed use of these funds and the expected future earnings.
The marketing strategy should explain how your retail business will penetrate your target market. Detail the company's desired image and branding strategy. Give an overview of the company's pricing strategies, current and potential marketing partnerships and provide documented research to back your plan.
From the business structure, legal name, location and goods or services offered to an analysis of your customers and competition, the business analysis will describe the nature of your retail business. Use easy-to-read, common terminology. Never assume that those reading your business plan have the same level of technical knowledge that you do.
An Executive Summary is critical to the success of the business plan. The Executive Summary offers synopsis of the business plan, and highlights the key points raised within. Here is where you need to capture the reader's attention so that he/she will be compelled to read on.