Business Plan

9 September 2016

This business plan describes a proposed venture to expand Buster’s from a one-store operation to two-store operation in a new office building opening two blocks away from the current location. Buster’s will be the neighborhood store for the corporate world catering to the busy needs of the office building’s occupants. We expect to be the only business of its kind in the new location and offer competitive pricing with personal customer service. Our cliental are mainly the building’s occupants and often frequent our shop for a quick bite to eat or just to say hello.

We have come to know many of our customers on a first name basis. We will offer this same atmosphere at our new location and hope to quickly gain loyal customers. Description: Buster’s is a small store located in the lobby of a large office building with a 1000 square foot floor plan.

We will write a custom essay sample on
Business Plan
or any similar topic specifically for you
Do Not Waste
Your Time

Only $13.90 / page

The inventory consist of a variety of popular items catering to the needs of the occupants of the building to include snacks, pre-wrapped sandwiches, beverages, greeting cards, newspapers, paperback books, and small gift items for last minute shoppers.

The stores hours will complement the office building hours, opening 1 hour prior to business hours and closing 1 hour after business hours Monday-Friday averaging 12 hours per day. Buster’s does offer similar products as other stores in the local area of the building. What makes Buster’s unique is the location inside the building. Buster’s is located on the first floor lobby near the main entrance. During inclement weather occupants never have to leave the building to grab lunch or don’t have to go out of their way to pick up the last minute gift. We continuously listen to customer feedback and always have what they need in stock.

Buster’s is 100% owned and operated by Ms. Marsha Jones and has been operational for four years currently bringing in $225,000 of annual revenue each year. Ms. Jones would use $43,130 of her personal savings and is seeking a loan for $20,000 to start up the second location. Aspirations: The downtown business area is continuously opening new office buildings and Ms. Jones hopes to have a small corner in each, eventually having 10-15 Buster’s offering a convenient and friendly atmosphere to the building occupants. In the past five years convenient stores revenue grew at an annualized rate of 2.

8% to total $57 billion. Although convenient store businesses face the challenge of the poor economy, the fact remains, people like convenience. The easier the better and Buster’s capitalizes on the need for convenience. Through networking with occupants in the office building and excellent relations with vendors, Ms. Jones is able to obtain the best price for her inventory allowing competitive prices that can’t be beat. 2. Organization Owner: Marsha Jones Ms. Jones will be the owner and primary operator of the business. She will be responsible for all aspects of the operations.

Ms. Jones experience includes four years at her current business and 10 years previous in retail and management positions. She is fully proficient in inventory, business finance and marketing. Legal Structure: Sole Proprietorship Management Team: Marsha Jones, Felix Smith, Grace Carter Ms. Jones will oversee management of both locations, but will focus her attention on the new location the first year of operation. Mr. Smith will manage the original location. Ms. Carter will transfer to the new location and assist Ms. Jones with the opening of the new store. Ms.

Jones is a graduate of University of Management and Technology. She has her MBA and 20 years experience in the retail business. She was a branch manager for a popular retail chain for 10 years before opening her own business four years ago. Mr. Smith is a recent graduate of the University of Management and Technology. He has five years experience in retail and has been with Buster’s for two years. Ms. Jones is confident is his management ability and will promote him to manager at the original location. Ms. Carter is a student at the University of Management and Technology and hopes to own her own business someday.

She will transfer to the new location bringing with her attention to detail and excellent customer service skills. Ms. Jones is grooming Ms. Carter to one day manger one of her many Buster’s locations. Employees: One employee will be hired for the current Buster’s, with a plan to hiring another employee one year later. These employees will work 30 hours per week each. Vendors: Price Master Corporation is a national distributor of convenience and dollar store products that carries over 3000 name brand items with over 25 years of experience. Most of their products ship in one day.

Price Master Corporation has been a major vendor with Buster’s for the past 3 years. They have a proven track record with reliable service and competitive pricing. Ms. Jones has an excellent rapport with the sales team of Price Master Corporation and established pricing discounts, giving Buster’s a competitive pricing edge. Allen Brothers is a full service wholesale convenience store distributor with over 100 years experience. Ms. Jones has been working with Allen Brothers for the past six years. She was introduced to the company when her previous employer needed to find a new vendor.

She continued her business with Allen Brothers when she opened her own business. Allen Brothers continues to deliver the best products for her store. Mister Snacks Inc. has over 30 years experience providing healthy alternative snacks under the names SUNBIRD SNACKS and STONE MOUNTAIN SNACKS. Ms. Jones supplements her menu with a variety of healthy snacks from Mister Snacks Inc. These snacks have been a proven best seller for the customers who are short on time, but still try to maintain a healthy lifestyle. 3. Financials Anticipated Operating Costs:

The monthly operating cost is estimated at $30,000. This includes rent and insurance for the store as well as the monthly payroll. Included in the operating cost is the monthly merchant fee for credit card use and marketing. The $20,000 monthly loan payment is $1,722 for a term of 12 months. The average monthly inventory cost is estimated at $22,000. Anticipated investment requirement: ITEM| COST| Inventory| $13,150| Shelving| $7,000| Refrigerator| $1,800| Deli Case| $2,500| Register & Counter| $800| Coffee Station| $2,500| Microwave| $200|Signs| $200| 6 months Rent & Deposit| $11,200| 6 months Insurance | $900| 6 months pay roll| $20,880| Legal Fees| $2,000| TOTAL| $63,130| Ms. Jones personal savings contribution:$43,130 Investment Request:$20,000 Total Startup Cost:$63,130 The initial startup cost for the business is estimated at $41,680 with $21,450 in reserve for six months of payroll. This amount includes $23,100 for the equipment and shelving for the store. The store will be designed with a self-service coffee station containing fresh brewed coffee and a cappuccino machine.

A microwave will also be placed on the coffee station for customers to heat up frozen meals or sandwiches. The store will have a 4-door refrigerator unit to house cold beverages. A deli case will be near the front of the store for grab and go sandwiches and cold snacks. The register counter will display an assortment of gum, candy and miscellaneous items. Shelving will display dry snacks, health & beauty products, magazines & newspapers, and an assortment of gift items with cards and gift bags. Startup inventory will run about $13,150 bringing in a variety of merchandise from three main vendors.

These items include perishable and non-perishable items. The inventory for the new location is similar to the original location and items can be used at both locations. Anticipated Revenue: The anticipated revenue from the first year is $150,000-$180,000. The original Buster’s location averages $225,000 annual revenue. The new Buster’s location should prove to be as equitable three years into the business venture. We will use the same techniques of business management and customer relations in the new business as we did in the original business.

Tent sign located near the store entrance displaying hours and current specials Punch Cards: Buy 6 cups of coffee and the 7th is free Monthly Drawing: First day of the month draw a business card that the customers leave in the bowl and give away $20 gift card. Social Media: Buster’s will advertise on the popular social media sites and allow the customers provide us with the best advertising…Word of mouth. Competition: The current competition in the area are the two convenience stores located outside of the office building offering similarly priced products in a four block radius. These stores are also in direct competition with the current Buster’s and to date we have always made a profit.

Although all the stores provide similar items, the difference is location and personal customer service. Buster’s knows the customers by name. We see them as they enter the building and give them a friendly good morning and say goodnight to them as they leave. We are in constant interaction with these people unlike the outside stores who only see them when they come in to purchase something. 5. Operations Location: Buster’s will be located on the first floor of the new downtown office building near the main entrance. The space is leased for $19,200 per year and includes utilities. The office building itself is 186,000 square feet with 12 floors.

The population of the building is estimated at 5,000 occupants from a law firm, advertising firm and investment firm. The location of Buster’s is 1000 square feet with a small office and storage room. The space is completely functional and only requires the specific equipment for the store, such as shelving, refrigeration and supplies. Daily Operations: Buster’s will be a small retail business in the lobby of an large office building operating Monday-Friday from 0630-1830 selling beverages, sandwiches, snacks and a variety of gift items. The store will offer friendly and personalized service with competitive priced merchandised catering to the needs of the building’s occupants. The store will be managed by Ms.

Jones and assisted by Ms. Carter. Ms. Jones will arrive at Buster’s every morning at 0600 when the office building opens. She will start the coffee station and post the sign with the current specials and display the fresh pastries that were delivered that morning. She will put together the till for the register and review the finances. Buster’s will promptly be open for business at 0630. Ms. Carter schedule is from 0800-1400. This accommodates the busiest time of day based on traffic patterns at the original Buster’s. During the mid-morning slow period, Ms. Jones will update the accounting books, reconcile invoices and prepare for the bank deposit. Ms.

Carter will cater to customers and stock items as needed and update the inventory list. Every week orders will be placed to vendors for restock. At 1030, Ms. Carter will prepare for the lunch crowd by replenishing inventory and cleaning microwave area. At the end of the day, the store will be cleaned and stocked. The accounting will be reconciled and money secured. 6. Legal Ms. Jones chose a flat rate legal fee as a solution for the many legal matters that small business owners face with a firm she has been doing business with since she opened her first Buster’s. The firm she chose specializes in small business and offers a flat rate fee of $75 per month after the initial fee of $750.

This rate includes the day to day operations of business and does not include time consuming legal issues such as lawsuits. As a current and active client, Ms. Jones would receive discounts for any of these matters if they were to come up. The original Buster’s already has a general liability insurance plan. Additional coverage will be added to insure the new store. Liability insurance will protect the business from a number of expenses that result from liability claims such as: payments as the result of bodily injury or property damage, medical expenses and the cost of defending lawsuits. The business is considered low risk for liability claims and never has been responsible for causing injuries in the past.

A food service license application has been submitted along with required documents and fees. Initial inspection will be conducted providing a temporary 90 day license until the annual inspection requirements are complete. Monthly safety inspections will be conducted by the owner and the business will cooperate with all food and safety inspectors during the annual inspections. 7. Challenges The main challenge to making a profit for this business is the focused market. The majority of the retail traffic comes from the office building population and their transient guests. Buster’s must remain in tune with the occupants needs and desires if a profit is to be made.

In addition to a focused market, the potential for a similar business to open is possible. The new office building is 30,000 square feet larger and the population is 17% greater than the original Buster’s. A similar business located on the opposite end of the building might not be too much of a threat. The main lobby is the ideal location and should prove advantageous over any other location in the building. The time Ms. Jones will have to dedicate to the first year of business will cause her fatigue and stress. She must have a reliable staff that can manage day to day operations if for some reason she is unable to work due to illness. Hiring new employees is always a gamble, even with the soundest credentials. Ms.

Jones will retain her two current employees and should only need to hire one employee during the first year. Once the business is stable, another employee will be hired. Funding for a new business is probably one of the greatest challenges, especially in today’s economy. Ms. Jones has been frugal with her earnings over the years and managed to save $40,000 of her own money for the initial startup cost and only asking for a $20,000 loan that she plans to pay off in 12 months. She is already an established small business owner and developed positive relationships with vendors, lenders and lawyers. Her networking and contacts should prove in her favor of saving money and increasing her profits.

How to cite this essay

Choose cite format:
Business Plan. (2016, Sep 01). Retrieved May 25, 2019, from
A limited
time offer!
Get authentic custom
ESSAY SAMPLEwritten strictly according
to your requirements