How to Write a Retail Business Plan
Before you start your retail business, you're going to need a plan. A business plan will help get your retail business up and running and on the path to success. Your business plan should include your goals, potential obstacles, financial information and market analysis. You should research your information well and make your business plan detailed and easy to read. You might include graphs and charts for clarity. Your business plan should be five to 20 pages long.
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Things You'll Need
- Market analysis
- Retail-specific profit-and-loss averages
- Retail business plans to review
Instructions
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Write the executive summary. Keep in mind that this is what will grab the reader's attention. The summary should include the most important elements of your business plan. Include a description and location of your store, if you'll have one, and the products and services you will offer. Summarize your objectives, mission and keys to success.
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Detail your company's ownership and management team. Create succinct biographies for key personnel, including their roles, experience and skill sets. Look for employees who can complement your talents and counter your weaknesses. Include pictures. Investors are interested in key personnel.
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Detail the products and any services that your business will offer. Include statistics about comparable products and services already on the market. Are the products you intend to sell already on the market? How will you compete? Are your products cheaper or more efficient? Do you have a plan to provide better service? Does technology play a role? Will you operate a chain or single store? Point out any disadvantages, and detail product and operating costs.
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Analyze the market. Include an in-depth analysis of the current trends and future trends in the retail industry. Is there a need for your store? Why? Did other stores fail? Why? Compare what others did right or wrong and determine how your company will stand out. Will you sell online? Who is your audience? Include statistical data about market trends, similar companies' performances and buying behavior. Find this information checking with trade associations, industry websites, magazines and books.
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Include your marketing strategy. What methods will you use to market your business? Will you advertise online or via television, radio or newspaper? Will you advertise at local events? How much do you intend to spend on advertising?
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Write a risk analysis. Use SWOT (strengths, weaknesses, opportunities and threats) to assess the risk of internal and external factors such as work-related injuries, liability insurance and seasonal issues. Do you expect any fluctuations in revenue?
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Detail a financial projection for 3-5 years. Base your projections on reports of profits and losses, break-even analysis, cash flow and balance sheets. The reports should include start-up and operating costs, product and service pricing, taxes, rent, payroll, licenses, production costs and any other costs. Include charts. If your business plan will be presented to investors or banks for acquiring funding, include how much money you will need to borrow.
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Determine your exit strategy. How long do you intend to be in business? Will you eventually have a chain? What factors will determine when it's time to quit?
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Include detailed financial statements, business and personal references and any relevant charts that weren't listed elsewhere in your appendices.
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Tips & Warnings
Use conservative projections when discussing profits, sales and time lines. Use bullet points to break up sections. Review examples of retail business plans. (See Resources.)
