How to Write a Plan for a Small Retail Business

Every small business needs a business plan

Creating a business plan for a small retail business forces you to think strategically.
It moves your ideas from a dream to a concrete plan.
The Navarro College Small Business Development Center explains the importance of a business plan: "Even if they [owners] do consider writing a business plan, they are often overwhelmed or confused by the planning process and never understand the value of this critical document. As a result, many small business dreams fail or fall short of their actual potential."
A business plan may be simple or complex according to the size of the business and the personality of the owner.

Things You'll Need

• Paper and pen or a computer
• Articles or books about small business planning

Instructions

1. Describe your potential business precisely by writing your mission statement.
   In a few short sentences, describe your new business including what you will sell and who your customers will be.
   Consider any factors that will make your retail business different from other similar businesses.
   It might be helpful to create a mission statement that you and your staff can easily memorize. Long, lengthy mission statements often indicate a lack of focus for the business.

2. Develop a customer overview.
   The core of any retail business is the customer. Describe your customers in as much detail as you are able.
   Also, describe your customer service goals. How will you and your staff treat your customers? What do you want your customers to say about you when they leave your store?
   Think of why your customers will come to your retail business rather than another business in your town or even online.

3. Create the marketing component of your business plan to include public relations, advertising and the word of mouth objectives you have.
   Public relations refers to publicity that a company does not directly purchase. An article published in your local newspaper about your business, whether you write it or a reporter, is public relations.
   A billboard, located at the entrance to your town, telling about your store, is considered advertising.
   Your business plan should include specific details about how you intend to generate awareness about your business and how much time and money you will dedicate to marketing.

4. Explain your competition.
   Your small business plan should include details and information about your competition.
   Is there nearby store selling similar merchandise? Does an online retailer provide competition for what you sell?
   Describe who your competition is and how you intend to overcome the challenges presented by that business.

5. Detail your measurable goals.
   Business plans often flounder due to lack of specificity. Plans that include the words better, more, soon, or lots, lack detail.
   Business plans require measurable goals including numbers, dates and amounts.
   Describe how much revenue you intend to generate within 12 months.
   List how many new products you will display each week.
   Explain how many staff members you will have, what their pay will be and how many hours they will work.
   If you will be borrowing money, list how much you will borrow and how long it will take to pay it back.

References

• U.S. Small Business Administration: Write a Business Plan
• Navarro College Small Business Development Center: Business Plan Guides
• "Business Plans That Work: For Your Small Business"; Alice H. Magos; 2008

Resources

• SCORE: Counselors for America's Small Business