The best way to show bankers, venture capitalists, and angel
investors that you are worthy of financial support is to show
them a great business plan. Make sure that your plan is clear,
focused and realistic. Then show them that you have the tools,
talent and team to make it happen. Your business plan is like
your calling card, it will get you in the door where you'll have
to convince investors and loan officers that you can put your
retail business plan into action.
Once you have raised the money to start or expand your retail business,
your plan will serve as a road map for your success. It is not
a static document that you write once and put away. You will
reference it often, making sure you stay focused and on track,
and meet milestones. It will change and develop as your retail business
evolves.
Do I need a retail business plan?
Not everyone who starts and runs a business begins with a
business plan, but it certainly helps to have one. If you are
seeking funding from a venture capitalist, you will certainly
need a comprehensive business plan that is well thought out and
contains sound business reasoning.
If you are approaching a banker for a loan for a start-up
business, your loan officer may suggest a Small Business
Administration (SBA) loan, which will require a business plan. If
you have an existing business and are approaching a bank for
capital to expand the business, they often will not require a
business plan, but they may look more favorably on your
application if you have one.
Reasons for writing a retail business plan include:
Support a loan application
Raise equity funding
Define and fix objectives and programs to achieve those
objectives
Create regular business review and course correction
Define a new business
Define agreements between partners
Set a value on a business for sale or legal purposes
Evaluate a new product line, promotion, or expansion
What's in a business plan?
A business plan should prove that your business will generate
enough revenue to cover your expenses and make a satisfactory
return for bankers or investors.
Executive Summary--features the highlights of your plan and
sells your idea in two pages or less.
Company Summary--a factual description of your company,
ownership, and history.
Products (or Services or both)--describes your products
and/or services and how they stand out from competitive products
and services.
Market Analysis-provides a summary of your typical customers,
competitive landscape, market size, and expected market
growth.
Strategy and Implementation-describes how you will sell your
product, how you will put your plan into action, and establishes
milestones.
Management Summary-provides background on the management
team, their experiences, and key accomplishments.
Financial Plan-contains key financials including sales, cash
flow, and profits.
What makes a successful business plan?
A well thought out idea
Clear and concise writing
A clear and logical structure
Illustrates management's ability to make the business a
success
Shows profitability
How do you write a business plan?
Sitting down looking at a blank computer screen as you prepare to
start your business plan can be daunting. You may want to look
at some alternatives that will make the process a bit easier.
Hire a Professional
A professional consultant will create the business plan for you,
but you still have to be prepared to think through your business
and understand the underlying concepts in your business idea.
You will have to work closely with the consultant to ensure that
he or she develops a good plan that accurately represents your
business or business idea.
Buy a Book
There are many good books on the market that will help you to
understand what needs to go into a good business plan. You can
read Timothy Berry's "Hurdle: the Book on Business Planning".
Use Business Planning Software
A good business planning software package will provide you with
an outline for a well-developed, objective-based and professional
business plan. Software packages will remove the problem of
starting from scratch by structuring your plan for you. The
software should ask you the right questions that will pull out
the most important underlying concepts within your business idea.
Find out more about the leading software package on the market, Business Plan Pro.
Business planning resources:
Sample Retail Business Plans
Sample Business Plan 1
Type of Business: Computer Hardware Retail
Name of Business in this Example: American Management
Technology
Cover Page Intro Paragraph:
By focusing on its strengths, its key customers, and the
underlying values they need, American Management Technology will
increase sales to more than $10 million in three years, while
also improving the gross margin on sales and cash management and
working capital. It serves its clients as a trusted ally,
providing them with the loyalty of a business partner and the
economics of an outside.
Sample Business Plan 2
Type of Business: Tennis
Stores
Name of Business in this Example: Tennis Master Pro
Shops, Inc.
Cover Page Intro Paragraph:
Tennis Master Pro Shops, Inc. operates retail tennis stores
known as Tennis Master Pro Shops. Each retail location markets
indoor tennis instruction and custom racket fitting. These two
primary revenue streams are both high in profit margin and low
in inventory requirements. Tennis Master franchise operations
and company owned stores will all be included under the
corporate umbrella of Tennis Master Pro Shops, Inc.
Sample Business Plan 3
Type of Business:
Auto-parts and Repair
Name of Business in this Example: Quick and Dirty
Cover Page Intro Paragraph:
Quick and Dirty offers high-quality auto repair and parts at
three different locations in the Portland, Oregon area. All
of our customers will be treated to convenient, unlimited
shuttle access while their car is being serviced. With the
highest technology, and strongest vendor relationships in
the business, Quick and Dirty foresees success with this
business venture.
Sample Business Plan 4
Type of Business: Home Decor Retail
Name of Business in this Example: Interior Views
Cover Page Intro Paragraph:
Interior Views is a home retail decorator fabrics and
complementary home accessories and services concept that is now
in its third year. This destination store offers the advantages
of providing fabrics specifically designed for home decorator
use in fabric widths of 54 inches and greater.
Sample Business Plan 5
Type of Business: Aircraft Rental
Name of Business in this Example: Lansing Aviation LCC
Cover Page Intro Paragraph:
Lansing Aviation LCC (Lansing Aviation) is being formed as an
aircraft rental, flight instruction, and aviation consulting
company, offering a well-maintained aircraft for individual
rental and for flight training, as well as professional aviation
consulting for corporate, airline, and individual needs.
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