Retail store is a competitive business as competition is intense in this segment. Moreover, many big giants are investing more in e-commerce and digital marketing, making this business even tougher day by day.
Having a physical retail store that offers a shopping experience along with products is a dream for many. It is not only because of the size of a business but the potential and opportunities such a business offers.
And if you are an individual who likes to interact with people, constantly improve your way of doing business, and form communities that work towards something, then you might have thought of having your retail store business.
Now, a retail store has great potential for success, but it is also a very competitive business. You’ll need a retail store business plan to help you stand apart from your competition and have a thriving business.
Industry Overview
Research suggests total retail sales in the United States were projected to amount to 6.03 trillion U.S. dollars in 2022, up from around 5.4 trillion U.S. dollars in 2018, according to the National Retail Federation.
Retail businesses come in many forms such as grocery stores, restaurants, and bookstores. There are around 4 million retail businesses in the United States alone.
The domestic retail market in the United States is very competitive, with many companies recording strong retail sales. Walmart, a retail chain giving low prices and a wide selection of products, is the front-runner in the United States. Amazon, The Kroger Co., Costco, and Target are a selection of other notable U.S. retailers.
Now, to have any genuine hope of getting noticed in such a jammed industry, you need a solid business plan to get success.
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Things to Consider Before Writing Your Retail Store Business Plan
Build a brand image
A brand image goes a long way for any business, especially for a retail store. It is crucial to pay attention to what people think about your store, what emotions they associate your brand with, and how they perceive your products in general. Above all, what qualities make you different from your competitors?
Pick the right location
A retail store’s location can make or break the deal. Hence, it is very important to pick a location that is both convenient and accessible for your customers. As people are always running short of time, they prefer a store that is on the way and takes less time to get to. It can also act as your USP over the bigger retail stores.
Plan a good store design
A good store design that follows the major principles of consumer psychology is essential for a retail store. The strategic placement of products influences a customer’s buying decisions. Hence, you need to pay attention to it and design your store in a way that maximizes your sales.
Build communities that promote your brand
Building communities that stand by and promote the idea of your brand can be extremely beneficial for your retail store. Hence, ensure that you work towards building one. These communities can be driven by anything from a common belief to a certain cause that your brand stands for.
How Business Plan Can Help?
Regardless if you’ve been operating for a long time already, by writing up a business plan for your retail store, you can get an overview of what you want to achieve with your business, and guidelines for how you’ll achieve your goals.
A retail business plan is a solid foundation for the success of your business, whether you seek funding or not. It helps you see clearly what your business looks like and how it’s positioned in your target market.
If you need to get funding, your retail business plan will work as proof that you and your business are good for investment. Studies suggest you can double your chances of securing a loan with a business plan and grow your business.
How to Write a Retail Store Business Plan?
Writing a retail store business plan requires a good amount of research, a thoroughly competitive and customer analysis, and a little bit of extra help.
You can get help for writing your plan either through a premade template on the internet or through an online business plan software which will help you write a customizable plan anywhere and at any time.
Before you start writing your business plan for your new Retail store business, spend as much time as you can reading through some examples of retail & e-commerce-related business plans.
We have created this sample business plan for you to get a good idea about how a perfect retail store business plan should look like and what details you will need to include in your stunning business plan.
Retail Store Business Plan Outline
This is the standard business plan outline which will cover all important sections that you should include in your business plan.
- Executive Summary
- Company Profile Summary
- Market Research Summary
- Marketing Summary
- Finance Summary
- Company Profile
- Business Overview
- Company History
- Management
- Location
- Legal Structure Vision & Mission
- Market Research
- Industry Profile & Market Size
- Local Market
- Target Market
- Competitor Analysis
- Keys to Success
- Customer Survey Summary
- SWOT Analysis
- Sales & Marketing
- Products and Services
- Pricing Strategy
- Marketing Strategy
- Primary Marketing Activities
- Positioning Statement
- The Sales Process
- Strategic Alliances
- Operations
- Location(s)
- Legal Issues
- Insurance Issues
- Human Resources (Or Team)
- Process/Production
- Risk Assessment
- Financial Plan
- Startup Funding & Capital
- Start-Up Costs
- Sales Forecast
- Cash Flow
- Projected Profit & Loss
- Appendix
What to include in a Retail Store Business Plan?
A retail store business plan consists of several different aspects. The major ones are as follows:
1. Executive Summary
The executive summary gives an overview of what your business stands for the reader. It should be written in such a way that even an outsider could get an idea of what your business is all about.
This section mainly comprises your business summary, your vision and mission statement, and your financial summary.
2. Company Profile
The company summary or company profile section of your business plan would consist of everything about your company, ranging from its location to information about your team.
While the executive summary section consists of information about the functional aspects of your business, a company summary consists of information about the structural aspects of your business.
While writing a company summary, it is a good practice to take suggestions from your team, as this section represents you as a team of individuals more than representing you as a brick-and-mortar company.
3. Market Research
Conducting market research helps you understand what you are getting yourself into. It helps you understand your target market, your competitors, and the working of the industry in general.
You can conduct thorough market research by using tools like PESTEL analysis or SWOT analysis. These tools help you conduct research specific to your business and prevent you from wasting your time on vague data.
4. Marketing Plan
As a retail store, it is your primary job to let your customers know about your existence. And to retain them once they start coming to your store.
A good marketing plan would help you do just that.
Based on the information you have gathered about your target audience through market research you can design your marketing campaign and promotional offers that’ll appeal to your customer base.
5. Operations
As a retail store, a proper operations plan can prevent your business from turning into a chaotic mess. An operations plan consists of your business’s logistic and functional information. It helps an outsider see what a typical day at your business looks like.
It also consists of your long-term and short-term goals. As well as the milestones you’ll have to reach for achieving them.
As a retail store business, your operations plan would consist of your supply renewal cycles, your backup distributors, a plan for the working of your store, your daily sales targets, and your long-term expansion goals, etc.
6. Financial Plan
A financial plan ensures that your business sails smoothly through tough times and also generates maximum profits.
It would consist of your funding requirements, cash flow projections, and profit forecasts.
As a retail store financial plan would consist of the funding requirements for setting up your store, buying supplies, and hiring people. It would also consist of your projected profits and break-even analysis.
Download a sample retail store business plan
Need help writing your business plan from scratch? Here you go; download our free retail store business plan pdf to start.
It’s a modern business plan template specifically designed for your retail store business. Use the example business plan as a guide for writing your own.
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Retail Store Business Plan Summary
In conclusion, a retail store business plan helps you organize and manage your store better. It takes care of everything that goes behind the scenes of running a retail store, so you can greet your customers with a smile.
From angry customers to poorly stocked supplies, a business plan can save you from all of it.
After getting started with Upmetrics, you can copy this retail store business plan template into your business plan and modify the required information and download your retail store business plan pdf or doc file.
It’s the fastest and easiest way to start writing your business plan.
