A business plan gives you a glimpse of your retail firm right now and spells out your five-year growth strategy. It defines your company's objectives and how you plan to achieve them. To back up your plans, market research is included.
The following 8 sections should be included in your business plan:
The executive summary
The executive summary gives the reader an understanding of your company's values. It should be stated in such a way that even a stranger may understand what your company is about.
Your business summary, goal and purpose statement, and financial overview are the primary components of this part.
Company Profile
Everything about your company, from its location to information about your employees, would be included in the company summary or company profile part of your business plan.
While the executive summary part contains information about your organization's functional features, the company summary portion contains information about your company's structural aspects.
When drafting a company summary, it is a good idea to solicit feedback from your coworkers, as this section reflects you as a group of people rather than a physical location.
Customer Analysis
In the customer analysis section of your retail business plan, you must detail the clients you service and/or expect to serve. Client segments include college students, sports fanatics, soccer moms, techies, teens, and baby boomers, to name a few.
Make an effort to segment your target market based on demographic and psychographic factors. When it comes to demographics, talk about the ages, genders, locations, and income levels of the customers you wish to serve. Because most retail businesses serve customers who live in the same city or town, government websites provide demographic data.
The wants and demands of your target clientele are described in psychographic profiles. The better you understand and recognize these requirements, the more likely you will be able to attract and retain customers.
Competitive Analysis
The indirect and direct competitors of your organization should be identified in your competitive analysis, with the latter receiving the greatest focus. Direct competitors include other retail businesses. It is extremely likely that they are local businesses selling similar goods.
Give a brief description of each direct competitor's operations, as well as a summary of their strengths and flaws. You should be able to find out crucial information about them, such as:
- What customers do they serve?
- What services do they provide?
- What kind of pricing do they have?
- What do they excel at?
- What flaws do they have?
The final component of your competitive analysis is to document your areas of competitive advantage. Consider the case below:
- Will you be able to provide better products or services?
- Will you provide services that your competitors do not?
- Will you make it easier or faster for people to buy your products?
- Will you provide better customer service?
- Are you going to lower your prices?
Consider how you can outperform your competitors and write down your ideas in this section of your business strategy.
Marketing Plan
The four Ps of marketing are often included in a marketing strategy: product, pricing, placement, and promotion.
Product
In the product section, you should reaffirm the type of business you outlined in your Company Analysis. Then go into great detail about the specific items you will be selling.
Price
Make a list of the pricing you'll be offering and how it compares to what your competitors are charging. In the product and price sub-sections, you essentially present the items you sell, as well as their prices.
Place
Your company's location is referred to as its place. Make a note of your destination and how it will affect your success. Is your firm located near a busy office building, gym, or other public areas? Discuss how you can maintain a steady stream of customers at your location.
Promotions
The promotional section is the final component. You will discuss how you will attract customers to your store in this section (s). You might want to think about the following marketing strategies:
- To attract passing customers, make your retail shop more appealing.
- Advertisements in the local press, including newspapers and magazines.
- Making contact with local bloggers.
- Flyers
- On a local level, radio advertising
- An event's publicity
Operations
A comprehensive operations strategy for a retail store can keep your firm from becoming a chaotic disaster. The logistical and functional information for your firm is contained in an operations plan. In essence, it allows an outsider to observe what a regular day at your company is like.
It also includes your long-term and short-term objectives as well as the milestones you will need to hit to get there.
Your operations plan as a retail store business would include supply renewal cycles, backup distributors, a plan for the management of your store, daily sales targets, and long-term expansion goals, among other things.
Management team
To demonstrate your retail organization's capacity to grow as a business, you will need a capable management team. Highlight your key personnel's histories, emphasizing the skills and experiences that illustrate their ability to start a firm. A direct retail experience is perfect for you and/or your team members. If this is the case, make a point of emphasizing your skills and experience. However, you should also include any relevant experience that you believe will contribute to your company's success.
If your team is insufficient, consider forming an advisory board. An advisory board would be made up of two to eight persons who would serve as mentors for your business. They would be able to provide answers to questions and strategic guidance. If needed, look for advisory board members who have worked in retail and/or successfully run retail and small businesses.
Financial Plan
A financial plan ensures that your company navigates through difficult times while simultaneously generating optimum earnings. Your funding requirements, cash flow estimates, and profit forecasts would all be included. As a retailer, your financial plan would include the funds needed to open your store, purchase goods, and hire employees. It would also include a profit forecast and a break-even analysis.
