Business plan; Grocery store
Today, the sale of food products is one of the most profitable types of business. Therefore, many entrepreneurs are thinking about opening it. In this review, we will take a closer look at the business plan for a grocery store, and also pay attention to the main subtleties that start-up entrepreneurs will have to face.
Imagine a rough business plan for a grocery store that is being marketed through retail with an approximate payback period of 2 years.
The objectives of the project are to generate a stable income, as well as to satisfy the market for the consumption of food and industrial goods. Financing can be carried out at the expense of own funds or a bank loan.
So what is it? What does it take to open a grocery store? The success of the entire enterprise is largely determined by the correctness of actions at the initial stage.
Let's describe the main points and terms of their implementation:
- Preparation and conclusion of an investment agreement - 1 month.
- Making a cash loan - 1 month.
- Registration with the tax and administration, making an entry in the state register - 1 month.
- Registration of documentation, selection of the location of the outlet - 1-6 months.
- Purchase and installation of equipment for the store - 1 month.
- Selection of specialists - 1 month.
- Advertising campaign - 1-24 months.
The business plan of a small grocery store must contain such a clause as a description of the target audience. To do this, you need to study the area where the opening is planned. A grocery store is usually dedicated to retailing food ingredients in residential areas. Thus, the target audience is residents of an urban area or other settlement. The business plan also contains items such as the format of the establishment, an approximate list of the trade assortment, the projected profit and costs.
How to choose the type of business?
Let's dwell on this in more detail. It is possible to correctly design a grocery store from scratch only if the format of the establishment is correctly defined.
Business plan for a grocery store. Based on the findings of marketers, the most profitable investment is the grocery store. With minimal risks and costs that arise when opening, you can get a good income.
Let's take a look at some of the basics that come in handy when you're writing your own grocery business plan. Open a new store with an area of one hundred square meters. (the territory of the shopping area will be 70 sq.) can be placed in a residential area of the city. The store is open from 08:00 to 21:00, without breaks and days off.
This grocery store is designed for approximately 500 visitors per day. Visitors with average income are considered to be able to make a purchase for at least 2 hundred rubles.
Selecting a suitable object
A small store can be located on an area of one hundred square meters. meters, while, as mentioned above, 70 sq. meters are allocated for trade, and the rest of the area is occupied by auxiliary and warehouse premises.
The rental price is in direct proportion to the location of the object. The average cost can be about 400 thousand rubles, including utility bills, take this into account when drawing up a business plan.
If for some reason you plan to renovate the premises, then it makes sense to agree on this issue with the landlord in advance and include the cost of redevelopment in the future payment.
Renovation of the premises may be necessary in such cases:
- Bringing the sales area to the accepted standards of SES;
- Cosmetic repairs in order to increase customer activity.
A grocery store business plan is a fundamental step in building your business. Not only a quick start, but also its successful development directly depends on how seriously you approach planning a business.
The sale of products is relevant at all times, stores can have a different scale, name, located in different cities and villages, and in all cases they promise to be a profitable enterprise. But in a market economy, even a grocery store cannot do without a promotion strategy, advertising, investment, in other words, without a business plan.
A detailed, detailed business plan can easily answer the question that interests all aspiring entrepreneurs: how to open a grocery store?
Grocery store as a business idea
Man is a biological creature, the need for food is one of the main ones. Naturally, the idea of opening a grocery store seems to be quite promising, and in the presence of a competent business plan, it is also profitable.
One of the undoubted advantages of this business idea is also the consistently high demand for almost all categories of goods, a wide range of customers, and lack of seasonality.
The business plan for a grocery store should also include an analysis of possible risks and ways to overcome them. One of the main tasks of a business plan is this: it is important to assess all the pros and cons of what has been conceived, and also to weigh your strengths and capabilities.
Sample grocery store business plan with calculations
Table of Contents
Features of the grocery store
Today there are many ways to invest in the retail sector and you can occupy a certain niche in the whole variety of food outlets. The retail grocery market is dimensionless, it is almost impossible to completely saturate it. There are even online grocery stores.
At typical profit margins, food retail profitability is approximately 25 percent, the minimum contribution depends on the format. If a businessman decides to invest finances in such a field of activity, he is faced with a difficult choice, he can join large networks or start his own small business.
In the video: A grocery store in the USA, foreign experience
How do I open a grocery store?
The most common opinion in this area is that it is most profitable to open such a business in the field of selling food. Ideally, an entrepreneur should have experience in trading, know the specifics of such a market and have an appropriate education. It is also necessary to draw up a competent business plan for a grocery store.
It is worth dwelling in more detail on some issues that should be resolved before opening your own store:
- Type of outlet and form of trade. You should think about which store is better to open, a supermarket, a small store, perhaps around the clock, as well as self-service or counters.
- The location of the store and its competitiveness should be determined. To do this, you need to understand your potential consumers, study the surrounding objects, such as schools, residential buildings, recreation areas, and the like. You should also study the work of the nearest stores, understand whether the buyer needs those goods that will be presented to this store.
- The assortment of goods is finally determined after analyzing the sales market at the location of the store, you need to think about the related products. In this case, you cannot neglect merchandising, you can hire a temporary specialist.
- Investment costs. To understand how much money will be required at the beginning, you should draw up a business plan. Be sure to think about a contingency item that can double the initial amount.
- Room. After the documents are completed, you can invite architects and designers, explaining to them what the store will be like. Since the store will be a grocery store, you should consider areas for refrigeration equipment, utility rooms and a place for air conditioners. You should think carefully about the sign and name of the store.
- Service personnel. The sellers for the store are selected qualified, with experience in trade, especially edible goods. Be sure to explain the specifics of trade and provide people with special clothing.
This is an indicative list of things that need to be solved, various promotional activities are also thought out when opening a store, suppliers are found, all legal documentation is drawn up.
Video: US Chosen Food, Organic Food
Classification of trade formats
- The largest of all formats is the superstore. In Russia, it is also called "hypermarket", this is a gigantic store with an area of over 15,000 square meters. The food group in these stores is less than half.
- The second format is hypermarkets. A clear example is Auchan. Signs of such stores: the area is 5-10 thousand squares, more than half is occupied by food products, more turnover is made on them, the rest is related products. These stores have their own pricing policy. Superstores and hypermarkets are usually located outside the city.
- The next format is “supermarkets”, the so-called city shops, which are located on busy highways and populated areas, near the metro or at the intersection of large passenger flows. The most important thing is to locate the stores in a favorable way, then the revenue will be maximized. The area of such outlets is up to two thousand square meters.
- The next format is “deli”. A small store with an area of up to 500 square meters, the main part is occupied by food perishable goods and products of daily demand, the remaining small turnover for goods for the kitchen and household chemicals. In such stores, prices are not high, but it all depends on the pricing policy of the store and its area of location. Such shops are called “convenience store” or “on the corner”.
- Another variant of the store format is “discounters”. Often translated as "cheap", it not only offers attractive prices, it also has a specific organization of business processes and location outside the city.
- The sixth option is very common in the West and not very popular in Russia. These are small shops of narrow specialization that sell a specific product, such as meat or herbs. The area of such a shop is 60-90 square meters.