Let’s face it: Developing a comprehensive business plan can feel like a homework assignment. It requires extensive research, in-depth financial calculations, and a game plan for challenges you might face well into the future.
But this document is one of the most important factors in your small business’ success. In fact, businesses with a formal plan have a 30% higher chance of growth!
We know how tough it is to write a business plan, so we’ve made it easier for you. Keep reading to get our full business plan checklist and learn what to include in each section.
Free Resource: Follow Along With Our Downloadable Business Plan Checklist
Before we dive into the specifics of retail store business plans, let’s set you up for success with a valuable resource: our downloadable business plan checklist.
Now, let’s take a closer look at the why and how behind each section of your retail business plan.
1. Executive Summary
An executive summary is a snapshot of your business as a whole. A complete stranger should be able to glance at this section and understand your store’s brand and goals.
Here’s what your executive summary should include:
- Basic information like your store’s name and location
- Your unique selling proposition
- Your business’ legal structure (e.g. LLC)
- An overview of your financial projections
- A quick summary of your market and competitor analysis
While this will be the first chapter of your formal business plan, we recommend writing it last.
2. Market and Competitor Research
Thorough market research will inform nearly every aspect of your business plan, so we recommend starting here first.
The first step in market research is identifying and learning about your ideal customer. Use census data, surveys, and even informal conversations to discover how your new store can meet their unique wants and needs.
Then, it’s time to size up your competitors. Make a list of other stores in the area in the same industry, along with notes on their product selection, pricing, and customer experience.
3. Business Description
Your business description should analyze the findings from your market research to answer one critical question: What makes your business special?
Explain in detail how you plan to serve your ideal customer and how your offerings will differ from your competitors’.
For example, if you’re planning to open a liquor store, you might cater to discerning bourbon and whiskey enthusiasts by offering a curated selection of spirits and a luxury customer service experience.
4. Business Structure and Operations
The section of your business plan should answer two key questions: Who is responsible for your store’s success, and what will your store’s day-to-day operations look like?
Let’s start with the first one. Your business plan should include an organizational chart and a list of your team’s roles and responsibilities. This will help you delegate tasks and rely on a trusted employee to watch over your store when you aren’t around.
Next, you should explain your store’s standard operating procedures. Here are a few things to cover:
- Customer service: Establish how your employees should interact with shoppers on the sales floor and at the checkout counter.
- Floor plan: Describe your store’s layout and design, mapping out departments and product placement.
- Inventory management: Share how you plan to keep your store well-stocked, including a list of potential suppliers and best practices for restocking the shelves.
- Cleaning: Explain when cleaning and zoning should take place and who is responsible for this task.
- Security: Outline your strategies to protect your employees and inventory from theft and crime.
This chapter should serve as a handbook for your team, giving them all the information they need to run your store smoothly.
Pro tip: Working on your operational plan is the perfect time to evaluate point of sale (POS) systems for your store. This powerful tool simplifies operations by eliminating manual tasks like data entry at the checkout counter and inventory counts on the sales floor.
5. Product Strategy
Your product selection is a critical factor in your store’s success. After all, it’s what brings customers through your door.
That’s why your business plan should include a complete overview of what you plan to sell, as well as how you’ll source your products.
Alongside a detailed list of your store’s products, include an estimate of your inventory costs, an overview of your pricing strategy, and an estimate of your profit margins on each item category.
Don’t forget to plan for seasonal changes! For example, if you own a boutique, you might carry swimsuits and sunhats in the summer and scarves and gloves in the winter.
6. Marketing Plan
You might offer the best selection and friendliest customer service in the neighborhood — but it doesn’t matter if you can’t bring customers through your door.
Your business plan should highlight how you plan to attract new shoppers and keep them coming back. Here are a few strategies you might include:
- Offering a new customer discount and regular in-store promotions
- Launching a customer loyalty program
- Creating a website
- Experimenting with e-commerce
- Posting on social media
When writing this section, keep your ideal customer profile in mind, designing promotions and marketing campaigns that will appeal to their preferences and shopping habits.
7. Financial Plan
Finally, it’s time to crunch the numbers and determine if your new store will be profitable.
The financial section of your plan should include an in-depth look at your expected expenses and your projected income.
First, estimate your expenses. Start with how much it will cost to get your store up and running, including renovations, shelving, POS hardware, shopping baskets, and more. Then, calculate your ongoing expenses like inventory replenishment, labor, utilities, and advertising.
Next, project your store’s income. Research your area’s foot traffic to estimate how many customers will come through your door. Then, use your pricing plan to determine how much each customer might spend in your store.
After you’ve identified your expected revenue and costs, you can perform a breakeven analysis — revealing when your store will become profitable.
Set Your Store Up for Success With POS Nation
Congratulations! You’re ready to map out your small business journey and open a profitable retail store.
Starting a business is a challenge, but you don’t have to do it alone. Whether you’re planning to sell liquor, tobacco, groceries, clothing, hardware, or anything else, we’re here to help.
We partner with POS providers that specialize in these niche industries, offering powerful software, reliable hardware, and dependable support to help you process transactions, manage inventory, attract customers, and grow.
Discover which POS solution is right for you and get an instant, custom quote using our build and price tool.
