Example of a business plan for a hardware store
Dear visitors, below is an example of a shoe store business plan with economic payback calculations. The calculation was compiled in Excel format by economists with extensive experience and can be used to draw up your own business plan for submitting it to a bank, investor or institution. The structure of the document itself is also standard and can be used at your discretion, taking into account the correction of the data according to your project.
Purpose: opening a shoe store in the city of Kemerovo.
Objectives: Opening a shoe store targeting middle-income and upper-middle-income people.
The initiator of this project has a small business in another area, previously worked in a typical store and knows its features. In connection with the emergence of free funds, it was decided to open a shoe store. Attraction of customers will be carried out through marketing activities and selection of suppliers with the best combination of price and quality of goods.
Investment costs will cost 857 thousand rubles. It is necessary to obtain credit funds in the amount of 486 thousand rubles. You will also need to invest the initiator's own funds in the process of business development, their amount will be 371 thousand rubles.
The amount of investment costs includes:
- Registration of the initiator as an individual entrepreneur - 14 thousand rubles;
- Payment of the security deposit under the lease agreement - 120 thousand rubles;
- Implementation finishing the premises - 150 thousand rubles;
- Making a sign and banner for registration of the entrance - 77 thousand rubles;
- Purchasing the necessary furniture and equipment, their delivery and assembly - 100 thousand rubles;
- Marketing activities - 25 thousand rubles.
The total investment amount will be 486 thousand rubles.
When developing business plans, many do not take into account one important thing. It is necessary not only to plan and calculate, but also to be prepared for the fact that at some point everything will not go as planned. That is, it is impossible to be equal only to a business plan on paper, in real business you will have to take into account and make adjustments, otherwise you can burn out. The strictest part of a business plan is the description and cost structure of the future company.
After all, without laying the required amount of money for start-up and development, you can close the case without opening it. According to most entrepreneurs, the initial investment should be at least twice the amount that was planned at the very beginning.
Ideally, write a business plan with real data and statistics on other similar enterprises. Of course, such information is very difficult to obtain. Here you will either have to act relying on your intuition, or on real experience of working in managerial positions of a grocery store (or a chain of such stores). As you guessed, the intricacies of opening and writing a grocery store business plan will be discussed further.
Features of writing a business plan for a grocery store
Grocery store business plan structure
The sample grocery store business plan consists of several parts. The very first step is to understand the underlying marketing characteristics and data.
For example, is there a good location. In this case, you can move to a ready-made rented premises, or you will have to search and repair an unprepared object. You also need to understand how you will legally formalize your undertakings.
Future cost structure
Next, we will describe all the expenses that will be needed to open a grocery store:
- costs of preparation and execution of permitting documents, (Read also - What is the difference between an LLC and an individual entrepreneur)
- construction and repair of premises, reconstruction or implementation of communications, and so on further,
- equipment (commercial, refrigeration, warehouse, etc.),
- costs of software, cash registers, computers,
- costs of installation and maintenance security systems, fire safety,
- the cost of purchasing the first batch of products,
- staff salaries (at least for 1-2 months of work),
- consumables ( receipts, packaging, paper, letterhead, printer ink and so on),
- logistics and transport costs.
If a grocery store is planned to be "branded" - to advertise and create your own brand for a grocery store, to create a certain unique format, then you need to additionally allocate funds for marketing activity.
Among all sections of the business plan:
- Cover Page
- Confidentiality Memorandum
- Executive Summary
- Investment Plan
- Marketing plan
- Production plan
- Organizational plan
- Financial plan
- Risk analysis
The production plan describes the production process. Of course, if you are not opening a factory or factory, but a clothing store, this description will be less detailed and will exclude items on production, but this does not mean that you can do without this section in your business plan.
Structure of the production section of the business plan
In fact, the purpose of this chapter is to familiarize the investor with the production process, the list of required equipment and the number of personnel. In other words, the production plan must show that you are able to organize the production of the required volume of high quality goods, as well as to establish the implementation process and prepare the necessary areas within the planned time frame.
If we are talking about an enterprise that is focused on the production of a certain product, the first thing you need to do is to clarify whether you are the owner of an already operating production facility, or are just planning to open it.
Often, the key reference point for writing this section is the sales plan. Therefore, you need to describe in detail exactly how you plan to manufacture products and consider in detail all the stages of creating your product or service. At the same time, each described position should include approximate terms, as well as the costs that will be required to organize it.
Description of the production process
If you are planning to open a production facility, you definitely need to describe all the stages and features of the technological process, starting with the purchase of consumables and necessary raw materials, and ending with the sale of finished goods (even if you plan to open a store, then a shortened version of the process from the delivery of the product to its placement in the store and sale is simply necessary).
Think about how you can modify this process. Describe your considerations and any activities and costs involved. Particular attention should be paid to the structure and composition of production facilities. If you are planning to open a factory or, for example, a plant, this information should be stated in a special appendix attached to the plan.
Download free business plans from a special catalog: "BEST FREE RUNET BUSINESS PLANS"!
Attention! The free business plan offered for download below is an example. The business plan that best suits your business conditions needs to be created with the help of specialists.
A business plan is a strategic document containing all the necessary information about project investments. The plan is necessary in preparation for the opening of an enterprise, store, or during the period of its reorganization, requiring the involvement of additional funds.
The business plan is designed to answer the questions: where to get additional appropriations (credit, own funds, debt obligations) and how they can be quickly returned.
Selling building materials is a great income. To begin with, everyone who decided to open a hardware store needs to determine the scale of the future enterprise: the area of the store (from 80 to 150 square meters and more), the range (from 20 to 100 items of goods).
It is better to start your business promotion from medium-sized retail outlets. In this case, you will need an initial investment of at least 50 thousand conventional units.
Profit - about 2 thousand per month. Not much, but over time you can expand the retail space. But for the effective functioning of your store, it is important to take into account all the features of this enterprise, choose the right store location, think over the assortment.
Don't forget anything and build your business correctly with a business plan for a hardware store. The structure of a business plan depends on various qualitative characteristics of the project and should contain the following sections:
A reliable home improvement business plan for a budding entrepreneur today plays a big role, since such an undertaking, with the proper approach, will bring a solid profit.
Sale of building materials is a relevant and promising idea for business
The sale of building materials is carried out today at any scale: small stores sell exclusively at retail or are engaged in direct one-time deliveries, while large specialized retail chains wholesale a wide range of building materials. The relevance of such a business idea as a building materials store is due to the fact that this type of goods is in constant demand among the population, and the supply market is often not able to satisfy the demand with an assortment or quality of products. The prospect of such a business and the success of its implementation in practice depends on many factors, however, in the overwhelming majority of cases it turns out to be favorable.
Project summary, goals and objectives
A hardware store today will find its client in any area of a bustling metropolis or a small provincial town. The ever-growing demand for building materials is not in doubt, especially when it comes to a wide range of quality products available at attractive prices for buyers.
The main goal of the business plan is to organize a small construction store that consistently brings decent profit, with the prospect of further development and increasing income. The study will examine the issues of choosing a suitable place and premises for arranging a store for the sale of building materials, the necessary equipment and qualified personnel, as well as issues of analyzing the market for construction products and methods of advertising such a business.
List of goods and services of a building store
The success of the entire trading company is mainly due to the range of construction products sold, as well as the quality of the goods, the level of service and the cost of materials and services.
Approximate range of building materials:
- the most popular types of construction tools, including power tools;
- floor coverings;
- entrance and interior doors, made of various materials as well as plastic and glass doors;
- plumbing equipment: showers, hydroboxes, bathtubs, sinks and toilets, as well as a variety of plumbing accessories;
- all types of wallpaper and other finishing materials, wallpaper glue, various dry mixes, as well as cement and sand;
- paints and varnishes for all types of construction and repair work, as well as all the tools necessary for these purposes;
- wall and floor tiles and tile glue;
- popular materials for roofing, such as: slate and metal tiles;
- gardening tools, furniture for summer cottages and private households;
- electrical equipment and lighting devices.