Food store business plan with 2021 calculations
Find out the timing and cost of developing a business plan for your investment project
A minimarket business plan is a document describing the key aspects of a future enterprise (project) from the point of view of a manager responsible for the implementation of a future project:
The minimarket business plan describes the following aspects of the project:
- the external environment of the minimark;
- the internal environment of the minimark;
- material, labor, financial and other types of minimarket resources required for the implementation of the project ;
- organizational plan for the implementation of the project to create a minimarket;
- forecast of the project's financial performance;
- project risks and ways to minimize their negative consequences;
- the economic efficiency of the project.
Assigning a minimarket business plan
A minimarket business plan is required for the following tasks:
- planning the company's activities for the future;
- coordinating the activities of employees;
- assessing financial performance and risks to prospective investors and creditors.
The purpose of developing a business plan for a minimarket
Before starting to write a business plan for a minimarket, it is advisable to clearly understand the goal. Depending on the purpose of the opus, its content may differ. Typically, the goals for creating a minimarket business plan are:
- Investigation of the feasibility of starting a new business or its continuation.
- Determining the company's development path
- Raising borrowed funds
- Attracting an investor or external partner.
Minimarket business plan users
The main users of the minimarket business plan are:
- Entrepreneur. Uses the business plan of the enterprise to test the reasonableness, feasibility, feasibility and cost-effectiveness of its ideas.
- Minimarket manual. Uses the minimarket business plan to plan and coordinate long-term activities.
- Minimarket workers. They can use the minimarket business plan to understand long-term development prospects, their tasks and career prospects.
- Third party investors. They can use the minimarket business plan to assess the effectiveness and risks of the project and make a decision about participation in it.
- Lenders - to make a decision on the provision of borrowed funds.
A grocery store business plan is an option for starting your own business. The specified type of activity is recognized as well-established, reliable and provides for a rapid payback. Whether it is a supermarket, minimarket or a convenience store, the demand for food is only growing, hence, for a productive business, it is enough to competently draw up a store project, determine what suppliers of products are required, and calculate the opening costs.
Relevance of the business plan for opening a grocery store
Starting your own business involves going through mandatory procedures and establishing compliance with the legal requirements of an entrepreneur. If you want to sell grocery products, it is necessary to draw up a business plan of the outlet, which will reflect the sequence of formation and development.
When forming a business plan for a grocery store, you need to take into account your own capabilities and present a business model for the enterprise. For the correct preparation of the project, it will also be necessary to assess the market conditions.
This includes research on the following:
- the number of potential buyers;
- categories of the population that could act as customers of the store;
- customer needs;
- the average income of potential store visitors for setting prices.
These aspects should be reflected in detail in the development project of the grocery store. Also keep in mind the level of competition. Planning a retail chain of stores should be based not only on the material side, but also on the territorial aspects. The fewer other outlets nearby, in particular with a similar product, the greater the number of potential buyers.
Speaking directly about the importance of this type of employment, it is noted that this business option helps to open a store using the average start-up capital.
On average, it takes about two million rubles to form a retail outlet, but the profitability rate is 11.7%, which guarantees a monthly profit and a full payback in less than two years.
The legislator does not allow the free opening of a store and the implementation of trading activities without going through special procedures. First of all, an entrepreneur must take care of registering a business. Activities can be carried out in the form of either an individual entrepreneur or an LLC. When choosing a suitable form of business organization, you should evaluate the scale of the enterprise.
How it all began
My wife and I worked in the north for several years before we saved the necessary amount to start our own business. After thinking about what can be opened in our city, we came to the conclusion that people will always eat and it is necessary to open a grocery store. I am a merchandiser by profession, and my wife worked as a merchandiser for several months after graduation, so we had some knowledge in the field of trade. In 2021, we opened a store. It was very difficult at first, especially the first six months. We have forgotten that there is rest and free time. They put all their efforts into their "brainchild".
Premises and location of the minimarket
In a large residential area, on the first floor of a high-rise building. The place is good, as there is a bus stop nearby, there is no market nearby, and it’s about fifteen minutes to walk to the nearest supermarket.
There is also a school on the way from the bus stop. All this contributes to a constant flow of customers and I advise you to choose a place for your store according to the same principle.
I rent a room because there was no financial opportunity to buy it, and it is not so easy to buy a room in a good location.
Before renting a room, you need to pay attention to:
- traffic at the store;
- parking availability;
- layout and area of the premises (availability of a warehouse and a separate exit from the premises for employees and suppliers);
- availability of electricity, water, heat, telephone, Internet, security.
The premises must comply with the requirements of the SES for stores selling food, as well as the fire inspection. You will need a total area of at least 100-120 sq. m, of which about 80 - 90 m2 is allocated for sales areas. The cost of renting 1m2 is 150-250 UAH, so try to find the conditions as best as possible.
Do not forget that during the period of repair (if you need it) you will have to pay rent. Repairs can take from 3 days to 2 weeks, so please agree that you will not pay rent at this time. Justify this by the fact that if suddenly your idea does not come true, he (the landlord) will receive the renovated premises free of charge.
The lease agreement is usually drawn up for a year, but it is possible for two years, having written in the agreement all the options for increasing the price of the lease so that you do not get a “surprise”.
Documents for launching the store
Among the documents that you must have:
Food trade is an industry that will always be profitable and promising, regardless of the presence of financial crises, natural disasters and social upheavals. With a stable society, trade is a doubly profitable niche: that's why opening a grocery store is almost always a win-win event. However, it is necessary to take a responsible approach to work on a number of important points: this will help the business plan of the grocery store with calculations, set out below.
Business plan for opening a grocery store: brief information for investors
The food retail industry has at all times demonstrated stability, dynamic development and positive dynamics in general. This is why the success rate of a grocery store project can be considered high in advance, even though there is a high level of congruence in the industry represented. In order to quickly find your niche in the field and reach a stable profit, it is enough to take care of several success factors from the following:
- the success of choosing the location of the future outlet;
- literacy of the marketing strategy when opening;
- an extensive range of assortment, covering the entire grocery basket;
- availability of pricing policy.
Food products are goods that will always be in demand, even in times of crisis. According to experts, the decision to open their own grocery store can be successful even for those investors who are just starting their business, because the presented business will always be in strong demand.
Brief information on investment indicators (for a store with an area of up to 50 square meters):
Amount of initial financial investments From 1.2 million rubles Break-even point 2-3 months of work Average payback period of a retail outlet 12 months Average level of net profit From 150 thousand rubles Business profitability 7.5% - 25%
Food trade is a highly competitive industry. It is important to understand that on weekends, consumers try to shop in hypermarkets or large supermarkets, which allow significant savings, however, during the week one way or another they face the need to buy certain products. This leads to high demand for convenience stores.
Before starting a detailed study of the business plan for opening a grocery store, you will need to carefully think over the assortment, financial and marketing policy, study the forecast of price changes for the most popular groups of goods. This will allow you to understand in advance what will be in special demand among buyers, and how you can use this information most competently and profitably.
It is important to understand that there is no special algorithm for opening a store and its further scheme of work. Almost all novice businessmen are looking for their product and their niche through trial and error, analyzing sales as they work.
Development of a business plan for a retail outlet
In order to develop a grocery store business plan, you need to include the following important steps:
Many aspiring businessmen think that opening a minimarket is quite simple, but this is far from the case. After an entrepreneur decides to open his own store, he will have many questions in his head, which are not always easy to find an answer to. But if the answer is received, it will allow you to protect your business from many troubles, not only at the start, but also in the foreseeable future. The first thing to remember is a minimarket business plan, which should include many points.
What to sell?
One of the most basic questions that a minimarket business plan should reflect is what the owner is going to sell. It depends on many factors, such as the city in which the minimarket will be located, the needs of the population, as well as the competitiveness of the product.
Think carefully about whether consumers will need your products? A lot also depends on the area in which your store will be located. Study the contingent of the population, their purchasing power, as well as needs. A very good solution would be to communicate directly with residents to find out their opinion on the opening of a new store.
And of course, a minimarket business plan will provide not only convenience, but also a sequence of actions, which will greatly reduce the chance of accidental errors.
Documentation required to get started
In order to trade in food products, you must not only obtain permission, but also register with the trade register. All the documentation that is needed for this is divided into two types: specialized and standard. The first is needed for the food trade, and the second is needed to open any retail outlet or store.
Documents required to confirm the formal status:
- Certificate of registration of an individual entrepreneur and a legal entity.
- Certificate of registration with the tax service.
- Memorandum and Articles of Association.
The following documentation is required for the retail space: