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. The purpose of your business plan will determine how much information should be included and what format to use. For financing, you'll have a better chance of convincing someone to fund your company if there are plenty of details provided. Do you know what goes into a business plan? Here are the essential elements of an excellent retail business plan and what to include.
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. This business plan part is where you need to capture the reader's attention so that he/she will be compelled to read on.
The next section is the Business Analysis. From the business structure, legal name, location and goods or services offered to an analysis of your customers and competition, this section 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.
The Marketing Strategy section 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 in this part.
This business plan part 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.
In the Management section, the information will show that the retail business has the necessary human resources to be successful. This part 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 parts of the business plan, the Financial Plan will involve the company's revenue and profitability model. This part assesses the amount of capital
the retail business needs, as well as the proposed use of these funds and the expected future earnings. It includes Break-even Analysis, Sales Forecasts, Balance Sheets and Cash Flow Statements broken down monthly for the first year and then annually for the next 2-5 years.