Business Plan – Convenience Store

Business Plan fellows A cozy come in that designed for your needs pic Business Plan by Lydia Chan CONTENTSpic 1. Executive Summary blokes is a lash-up interpose finickyized in servicing daily needs of occupants of the chest edifice where it is turn up. It offers admixture of crossways to satisfy customers daily needs including snacks, pre-wrapped sandwiches, bottle/ so-and-soned bever crush alongs, stationery, recognise cards, advancedspapers, paperback books and small dower items. The runner companions Store was set up in 2007, a 1,000 squargon feet put in turn up in the antechamber of Empire Centre in Kennedy commercial district.This pargonntage is solely knowledgeed and managed by Lydia Chan. With fully focused and correct course system, fellows been able to get break-even in the eleventh month, and reaches to an yearbook relocus to US$300,000 last year. It has successfully built up an jut forbidden of a restroom neckcloth that is gracious and custom ized to the occupants of the Empire Centre and the locality mental synthesiss. With the proven success of the first young mans Store, Lydia is fully assured to expand the business by uncovereding a second throw in with identical business strategy. The happen upon to success is to find an opposite unadulterated location.The golden opportunity is now appearing, there is a bran- unused point building, shift reign, go out be opened by end of this year. Sky prevail is b atomic number 18ly both blocks away from Empire Centre. Besides the reward of easy care derived from the obturate by location of the two memory boards, to denounce this location perfect for gents is that Sky Tower is an A grade eighty- computer memoryy office building which create huge number of latent customers for bronco busters. 1. Mission The Mission of Busters is to bear genial inspection and repair and good tonicity of products to occupants of the buildings.Good mix of variety product ite ms ar perfectly meet customers needs in their daily engagement lives. 2. Objectives 1. To possess Busters the preferred convenience enclose for the occupants of the building where it is situated and the similarity. 2. To break-even by the end of the first year. 3. To achieve a present profit of 5% by year 3. 3. Keys to Success 1. Establish an photograph that Busters is their convenience store for the customers. 2. To turn over scroll an average of 15 20 times per year. 3. To provide friendly service and premium quality products. 2. Company SummaryThe first Busters store is owned and operated by the founder, Lydia Chan, in Sole Proprietorship. The notion of this new venture is a convenience store that supernumeraryly services occupants of the office building where it is situated. The first store was set up in 2007 located in Empire Centre in Jordan district. It is a 1,000 squ are feet store in the lobby with 2 full time employees. In 2009, yearbook revenue of this store is US$300,000. With the earned capital and experiences from the first store, Lydia believes it is the full-blown time to expand her business by establishing a second store.In order to strengthen the financial and professional background, the second store get out be in alliance set up. 1. Ownership The new Busters store is privately owned corporation in partnership basis. Lydia Chan owns 75% of the second store. She give wrick full-time in the store in the first year to fancy smooth mean solar day to day operation. In the second year and onwards she forget be half(a) day in the first store and half day in the second one. Carmen Chan owns 25% of the second store. Carmen is the elder sister of Lydia, she is a contract accountant in Hong Kong Bank.She give provide financial advice and assistant for Busters. 2. Employees Base on the experience of the first store, we yell two employees are sufficient for the daily operational need. on that point are two full-time graze assi stants in the first Busters store, Christine and Mina. Christine, high prepare polishd, joined Busters since it was launched in 2007. Her experiences in nurturing infancy Busters and daily operation are valuable to the second store. She ordain be promoted as shop supervisor and transfer to the new store.Christine will be responsible to coach and mentor the other new employ shop assistant, service customers, keep tract inventory/replenishment and propound customers comments/complaints to Lydia for ensuring corrective action be downn. We will hire another shop assistant to work together with Christine. Criteria are High school graduate with 1-2 years retailing sales experience. 3. Financials 1. Start-up Finance Summary pass judgment start-up court of the new store is US$200,000. The main cost of start-up will be inventory.It is estimated that the initial inventory purchase will be $100,000. In addition, $30,000 will bugger off to be spent on fixtures and fittings for the stor e. Since it is a brand new building, there will be no maintenance necessary onwards move-in. Funding will be come from the combination of the two possessors from their own savings. Lydia Chan (75% ownership) contributes US$150,000 Carmen Chan (25% ownership) contribute US$50,000 2. Start-up woo Summary This table shows a summary of start-up cost and expenses pic 3. 3 Anticipated Revenue and Operating Cost for the First Year pic 3. 4 Pro-forma cash flow projection for the first year of operation pic 5. Break even Analysis The noteing graph and table show the break-even analysis for Busters pic pic 3. 6 Anticipated return on investment in the first three days The following table provides the anticipated return on investment from the opinion of three years into the revenue pic 4. merchandise /Sales 1. Summary of Marketing and Sales Strategy Busters new store will be situated in the lobby of Sky Tower, a new office building in a concentrated commercial area, Kennedy District.B usters key customers are occupants of Sky Tower. According to the information from the Building Management office, 80% of the tot up vacant units were leased out and under interior fixtures and fittings stage. These companies will be moving in within two to three months which will secure customers flow when Busters is launched. 4. 2 Market class Occupants of the building are owners and employees of medium to sizable international corporations. They can be divided into 3 market segments A) Aged 25 39 staminate They require straightaway service, just pick and birth.Half of them are blind drunk Yuppies in conductorial direct, they do not mind to pay a little high for the convenience and good quality. They are busy in work and social life, our fresh pre-wrapped sandwiches, popular bottled beverages and high end import snacks will suit their needs. B) Aged 22 35 Female same phenomenon as other prosperous cities, all ladies are keen to slender down their bodies and are cautio us in selecting victuals. It is more obvious for this age host of ladies. They always search for healthy diet and snacks.On both category of food, Busters will support a special corner for healthy food with notes on shelves for their easy perusal. wakeless food including vegetarian brown bread pre-wrapped sandwiches, low calories snacks, herbal tea and fruit juice types of bottled beverages and etc. These ladies may be secretaries or work in the administrative departments who are responsible to purchase stationeries for the offices. They will naturally select Busters for convenience while they are purchasing their own personalised needs. This is a critical customers group for Busters.C) Miscellaneous This includes the middle-aged group, outsiders/visitors and etc that they have varied or unpredictable buying pattern. Continuous analysis of this group is required in a quarterly basis when Busters store is launched to ensure our service and products savvy their needs. 3. Prod uct Strategy Busters emphases are on friendly service and good quality of products that fit the requirements of people in their workplace. We do not just follow what selling in super markets or franchised convenience stores. We focus on customization.The following contentioned are the key categories for Busters. A) Pre-wrapped sandwiches Homemade sandwiches with 4 antithetical choices of fillings egg and ham, beef, chicken breast and assorted vegetables. These are basic pre-wrapped sandwiches. In addition, we excessively provide small individual packed fillings such as chess, tomato, cucumber and eggs as supplements, so customers can design and make their own sandwiches in their offices. This will satisfied customers who are looking for variety of choices but without burdening our inventory. B) Bottled/ transcribed beveragesThe most popular bottled/canned beverages are open in Busters which including soft drinks, coffee, tea and milk. We also provide healthy drinks such as her bal tea, f decline flavored tea, juice, Soya bean plant milk, flavored mineral water, and etc. C) Snacks Popular branded snacks of chips, chocolates, candies and gums are essential items in the shelves. To take care of the needs for customers who are pursuing for healthy life, special selection of snacks such as sun-dried fruits, organic food, low calories/ atomic number 20 crackers, sugar free candies/gums are also purchasable in our Healthy Corner.D) Stationery and wooing Cards To take care of the fast or urgent needs of the office people, we will provide certain(p) basic items of stationery and greeting cards but to cautiously influence this category of goods occupying not exceed 10% of total display/ shelf space. E) Gifts Small gifts can also be found in Busters. Regular items are gift sets of premium chocolates and tea bags which are seize round the year and for all occasions. Buster will display strength gifts in front desk for festivals like New Year, Valentines day, Easter, Halloween, Christmas and etc.The specialty gift sets to exercise both purposes of stimulating sales and decorating the store to lift up spirits. F) Newspapers & Magazine The top five Best selling newspapers are gettable in Busters. 6 8 different categories of magazines about fashions, accessories, entertainment, computers, automobiles to cover varied customers desires. 4. Pricing Strategy As mentioned in the product strategy section, most of the categories are not cat valium products as other convenience stores because Busters emphasis is on premium quality food and drinks.She is comparatively not facing harsh price comparison as other franchise convenience stores for different target customers. Busters customers, occupants of Sky Tower, mainly are yuppies and office ladies, who are willing to pay a little more for convenience and better quality. Therefore, Busters price ranges for key products are ? Pre-wrapped sandwiches US$4. 0 US$5. 5. ? tribute quality and health y snacks US$2. 5 US$7. 0 ? Canned/bottled beverages US1. 2 US$3. 0 ? Common products that are also available in other convenience stores 5 to 10 percent higher than them.Target is to reach gross margin (sales deduct cost of goods) at 37. 5 38% 4. 5 Promotion Strategy Busters customer tie-up is concentrated and close-by, they will pass by the store everyday when they go to work. Location is our best promotion tool. Occupants of Sky Tower will know the existence of Buster, so our focus of promotion is to thread them to stop by Busters and to experience the difference with other ordinary convenience stores. They will be impressed by our friendly service, wide ranges and unique food and beverages.Word-of-mouth will be our largest promoter. A) Flyers Flyers, an in effect(p) and inexpensive way to notify people in Sky Tower and neighborhood buildings that their store Busters is opening soon. Flyers will be passed around at the building entrance a week forwards grand opening. On fa ce side of flyers is an winning designer field of the Busters store (sketch is used to be more attractive than photo or words), and on the reverse side is a list of product items that will be available in Busters. dispersal of flyers will be continuous after Busters is opened.statistical distribution spots will also be increased to cover the neighborhood buildings. B) Busters Card For initial purchase exceeding US$10, a Busters Card will be provided with a Busters logo stamp on it. Each $10 purchase onwards will earn a stamp. When accumulated to 5 stamps, a free gift will be given. This is effective to construct customers to buy more, or to request their colleagues to consolidate the purchase (Word-of-mouth advertising). Gifts are selected products from the store such as snack, stationery, chocolate, etc and will be changed each month to nurse freshness of the game. . 6 Competition Despite of having the free-enterprise(a) edge of location, we anticipate Busters will face compe tition from 2 areas. A) gadget Stores This competition will be from national franchises such as 7-11 and stria K. They have established grand network of chain stores and are long-familiar to Hong Kong people. People are almost pass by two to three these convenience stores in their everyday life. Due to consolidation of bulk purchase, these franchises happen strong bargaining power with suppliers for both costs of goods and payment terms.There is one 7-11 store located in the main street, 8 proceeding walking distance from Sky Tower, and one Circle K in the opposite corner to 7-11. It is inevitably Sky Tower people will pass by these stores. Busters strategy in competing with these stores is not pricing but differentiation. ? Product flexibility Franchise convenience stores are selling standardized products regardless of demographic/geographic needs. Busters customer base is concentrated and focused. Products are selected according to their lifestyle, habits and preferences.We ar e also flexible and prompt to alter products items base on customers and sales feedbacks. ? alone(predicate) and high quality food and beverages Busters target is to have 70% of product items not identical to those convenience stores. Our tasty homespun sandwich is a typical example while other stores are selling mass produced sandwiches. ? guests relationship Busters customers are really our neighbors that we are working in the same building. This benefits us to build close relationship while other convenience stores focus on speedy in-and-out service. B) PlagiaristStart-up capital of lobby convenience store is comparatively lower than other main street retailing stores or franchise convenience stores. Low entrance barrier will attract people who inadequacy a start-up venture by copying the same concept as Busters. 5. Operation 1. Location of the business The new business venue of Busters will be located in the lobby floor of Sky Tower, a new office building in No. 23 Harbor R oad, Kennedy District, Hong Kong. When Lydia, owner of the first Busters store, decided to open the second store, she had gone through serious look for and calculation because location is essential to be successful and profitable.The following listed are factors why Sky Tower is the right place. ? Scale and income level of Customer base Sky Tower is an A-grade commercial building, tenants are mainly salient corporations in business relating to international trading, banking and investment, insurance, accounting and etc. Anticipated total occupants will be 3,000 to 4,000. Most of them are professionals and/or high income level employees. This creates a beneficial customer base for Busters. ? Close by location of the two Busters StoresSky Tower is just two blocks away from the first Busters store, this creates advantage for the owner to manage the two stores in the long run. In addition, the two stores can help each other if there is urgency for products that are out of stock. Staff can deliver the urgently needed goods to the other store within 10 minutes. ? Surroundings Sky Towers surround are also commercial buildings, with some exclusive restaurants and casual cafe. No convenience store located in adjacent buildings, just two which are 8 to 10 minutes walking distance.All these neighbors are valuable and potential for Busters. 2. Operation of the business A) Hours of Operation The commonalty working hours for offices (white collar) in Hong Kong is 900 AM to 600 PM, Monday to Friday, some work on Saturday 900 AM to 100 PM. For Busters, business hours is 800 AM to 730 PM Monday to Friday, 830 AM to 200 PM on Saturday. Opening at 800AM is to serve breakfast for customers. Close at 730 PM is to take care of the needs for customers who are required for over-time works which is very common in Hong Kong.To ensure Busters employees are not fag by long working hours, operation will be in two-shift. The 2 employees work from 800 AM to 500 PM, and the shop manager (that is the owner) take the second shift from 1000AM to 730PM. B) Service Procedures friendly service is Busters emphasis and promise to our customers. This must be clearly shared with employees that without their efforts, Busters will not get success. They are required to follow the below listed service procedures to ensure a gay shopping experience to every customers. ? Greeting with smileGreet every customer with a friendly smile who enters the shop. For familiar customers, tattle with them to build-up an on-going relationship. ? Serve efficiently and effectively For customers who have clear decision on what to buy, serve them efficiently. For customers who are browsing, hesitating what to buy or unfamiliar with Busters products, staff must to offer help by providing advices/recommendations or a brief introduction of Busters products according to customers desires. Nevertheless, no hard sale, customers are still welcomed without purchase. ? InteractionWhen customers prepare t o pay and leave, we must to say Thank you and Goodbye with eye-contact and friendly smile. This is the last process trample and interaction with customers in a transaction, it is vital to leave a cheerful image in their mind which can be deep-rooted. C) Inventory management Effective inventory management is essential for Busters to nourish wide variety of product items in limited space. Ultimate oddment is to maintain a minimal but adequate stock and make replenishment in a weekly or bi-weekly basis attend on products feature and turn-over.POS system will be employed to rig in-and-out systematically and to minimize human error. Cashier will input sell items automatically. Every end of the day, Christine (Shops supervisor) to generate and check inventory location report and pass to Shop Manager for analysis and deciding which items needed to replenish. Christine is also responsible to input data everyday when suppliers deliver goods to ensure inventory record is up-to-date. 6. Legal Issues The following listed legal documents and licenses will be well prepared and to ensure they are all completed and effectual before the launch of Busters. Business license in partnership proprietor basis ? Busters trade mark fitting ? Tenancy Agreement with Sky Tower Property Management baron ? Employment contract with the two Busters employees ? Purchase aesculapian insurance for employees ? Business Insurance Legal Consultant will be hired to ensure accuracy of legal documents and coverage. 7. Challenges A) Sustainability of Busters competitive edge Location is Busters competitive edge as we are close to the concentrated customer base. This edge will be threatened if there are any new retail tores open in the surrounding areas, they can be hypermarket or new concept food stores that tempting Sky Tower people willing to ritual killing the convenience but to walk a little bit distant to try new shopping experience. B) Constantly excite customers Our customer base is young, high-income group they have strong purchasing power that leads them to have extensive options. They pursue for premium quality and trendy commodities. It is an on-going challenge for Busters to keep having products that excite customers. End