Retail Business Plan

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)
Business plan for ABC Retail Limited
2005 - 2007
Copyright Teneric Limited 2005 all right reserved.
TABLE OF CONTENTS
EXECUTIVE SUMMARY........................................................................................................3
............................................................................................................................................4
BUSINESS MISSION..............................................................................................................4
COMPANY OWNERSHIP/ LOCATION...................................................................................4
EXTERNAL ANALYSIS..........................................................................................................5
The economy & business environment.......................................................................................................................................5
The local market place...................................................................................................................................................................5
Target Customers/ market dynamics..........................................................................................................................................6
Competition .....................................................................................................................................................................................7
SWOT ANALYSIS...................................................................................................................8
Strengths...........................................................................................................................................................................................8
Weaknesses.......................................................................................................................................................................................8
Opportunities...................................................................................................................................................................................8
Threats..............................................................................................................................................................................................8
OBJECTIVES.........................................................................................................................9
Objective 1: To develop retail business ......................................................................................................................................9
Objective 2: Recruit and train staff.............................................................................................................................................9
Objective 3: Launch.......................................................................................................................................................................9
Objective 4 : Marketing plan........................................................................................................................................................9
KEY ACTIONS PLANNED FOR THE NEXT 12 MONTHS.....................................................9

MANAGEMENT TEAM/ HR..................................................................................................11
FULL FINANCIAL STATEMENTS........................................................................................11
Year 1 sales forecast........................................................................................................................................................................1
Year 1 costs forecast and profit and loss account.................................................................................................................2
Year 1 cashflow................................................................................................................................................................................3
Year 1 balance sheet........................................................................................................................................................................3

EXECUTIVE SUMMARY
Summary
ABC Limited is a new company who are planning to open a new retail business in the centre of a local village
selling fashion womens clothes and accessories.
ABC Limited is founded by three entrepreneurs who have 18 years retail business experience between them.
The market and business
The main market sectors ABC will penetrate are women between the ages of 25 to 55 in the local area, tourists
and within a radius of 10 miles. We wish to become a recognised regional name in the next year but this is our
starting point.
ABC will concentrate on the latest fashions at reasonable prices. We will always have an excellent selection of
fashionable accessories to entice our customers into our shop on a regular basis.
Core product offerings
The retail business will be a womens fashionable establishment offering three types of product:
Business fashion for the new business women

Fashion for middle age women who want something different
Accessories for all
Revenues and profitability

Revenues forecasting for the first year of operation are 343,000 with this increasing by 8-9% for the
subsequent two years. Net profits are forecast to be 33% before the salaries of the directors and before tax and
interest.
Management team
ABC limited is a new company set up and run by Mrs Jones, Mrs Smith and Mr Brown who have 18 years
experience in the retail business business.
The directors will invest 70,000 into the business at the beginning and repay these loans by the end of the first
year. The retail shop unit is secured and will be leased for 15 years with a break at 7 if so desired.

BUSINESS MISSION
ABC's mission is to become a leading well-known womans fashion retail business in the local area and be first
choice for fashionable business attire.
COMPANY OWNERSHIP/ LOCATION
ABC Limited started trading in 2004 and is jointly owned by Mrs Jones, Mrs Smith and Mr Brown and are trading
as a limited company.
ABC Limited are based at their premises at :
12 anystreet
anytown
anyshire
AB12 99XY
UK
Telephone 0134 445600

EXTERNAL ANALYSIS
The economy & business environment
The UK economy has steady growth and the outlook is for this to continue.
General retail sales continue to improve although recent interest rate rises are set to cool demand.
LONDON RETAIL SALES MONITOR

CENTRAL LONDON RETAIL PERFORMANCE STILL AHEAD OF UK
MAY 17, 2004
Retail sales in Central London during April increased by 3.5% on a like-for-like basis compared with April 2003,
when sales were still affected - though less than in March 2003 - by the Central Line closure and the Iraq war.
The three-month trend rate of growth edged down from 5.3% in March to 5.1% in April for like-for-like sales in
Central London. London sales were still slightly better than in the UK as a whole, but comparisons are distorted
by the 2003 figures which showed London sales still depressed but a rebound in the UK. Improved footfall,
helped by an increase in tourist numbers, boosted signature products and instore restaurants
RSM - RETAILERS REMAIN CAUTIOUS IN A CONTINUING COOL CLIMATE
MAY 11, 2004
Retail sales in the UK during April increased by 1.9% on a like-for-like basis, and showed growth of 4.9% on a
total basis, compared with a year earlier. The three-month trend rates of growth decreased from 2.6% in March
to 1.7% in April for like-for-like sales, and from 5.9% to 4.8% for total sales. Year-on-year comparisons were still
being artificially boosted by the weak April 2003, when trade was hit by the Iraq war though to a lesser extent
than in March. Cooler weather this April compared with last year's warm spring also hit sales, particularly those
of lighter clothing, sandals and gardening products. Easter boosted sales of perfumery, home accessories and
flowers
Source: BRC
RETAIL KEY FACTS
There are some 188,700 VAT-registered retail businesses in the UK operating in more than 310,000 retail
outlets.
UK retail sales were approximately 235.6 billion in 2003.
Retail accounted for 5.6% of Gross Value Added (GVA) in 2001.
(Data for 2002 yet to be released)
Over a third of consumer spending goes through shops.
The retail industry employed over 2.7 million people, as at the end of September 2003. This equates to 1 in 9
(11%) of the total UK workforce.
Over the last five years, employment in retailing has grown by over 140,000.
During the last decade, the price of shop goods rose by 20 percentage points less than the overall level of
inflation.
Source: Office for National Statistics
The local market place


Research shows that there are 25,000 women aged between 25-55 earning over 35,000 per year in the
catchment area we are targeting.
There are 1,250 local businesses we have targeted for the marketing launch for business attire.
Target Customers/ market dynamics
Customer group 1
End customer is
Business women
End customer need
Stylish and practical business clothing
Excellent personal service and value for money

Products targeted to this group
Business clothing
Accessories
Customer group 2
End customer is
Women between the ages of 25 to 55
End customer need
Fashionable clothing
Excellent personal service and value for money

Products targeted to this group
Fashionable clothing within the seasons
Accessories
We will target customer group 1 with customer group 2s product

Competition
Competitor summary
There are many retail businesses in existence today.
We aim to flourish on reputation.
In the immediate area there is no retail business that is catering for our target audience.
In the next town there is an established outlet but there is a need for a new and exciting venture.
SWOT ANALYSIS
Our strengths and weaknesses are shown relative to our competitors. Strengths are shown if they are better
than the competitors. Weaknesses are weaker than the competitition.
Strengths
1.
2.
3.
4.
3 retail business professionals with 18 years experience

Excellent location for presence of building
Excellent links with suppliers from current experience
Start-up funds of 37,000 in addition to the building
Weaknesses
1. No presence
2. No credibility with target audience
Opportunities
1. To be the business women and fashion conscience clothing retail experience in the local area
Threats
1. More similar retail businesses open due to our success

OBJECTIVES
Objective 1: To develop retail business
The location is already signed up for the lease to begin in two months time and has been used as an existing
retail business previously.
The total fitting is estimated to cost 13,000 as we will use contractors who we know and will charge much less
and produce an excellent results.
We will purchase 20,000 of stock (cost price)
Operations:
The retail business will be open from 9am to 18.30 Monday to Saturday and 11.00am to 17.00 on Sundays. As
our target audience is business women we need to be opened when they are not at work.
Objective 2: Recruit and train staff
We will recruit two shop assistants as well as a shop manager.
To ensure our customers have a positive experience we will not be using part time labour.
We will recruit three weeks before opening so there is enough time for training everyone.
Objective 3: Launch
The launch event is all too important for every retail business.
The launch event can make or break you.
We will have the launch event on September 15th in the evening.
We will invite local and national business women and prominent business mens wives as well as local press.
Objective 4 : Marketing plan

In addition to the opening night, we need to ensure we have good presence in the local market place to kick
start our business. We will therefore put into place a comprehensive marketing plan to commence 4 weeks
before launch. This will develop interest and communicate that we will be open for business:
Local/ free press Teaser adverts 4 weeks before opening moving to stronger advertising closer to launch
Location Large board advertising opening night
Local businesses Direct mail to directors of local companies and local business women
Local magazines There are three local glossy magazines we will take advertising and have the editor write a
feature about the new retail business.
We have allowed 4,000 for the opening night and initial marketing plan
Key actions planned for the next 12 months

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Develop retail
business
Recruit/ train staff
Marketing plan
Launch night
Strategies
Cost
Responsible
Completion date
1.
2.
3.
4.
13,000
20,000
0
4,000
Mr Jones
Mr Brown
Mr Jones
Mr Smith
Aug
Sep
Sep
Sep
Develop retail business

Purchase stock
Recruit/ train staff
Marketing plan/ launch night
Sales by year
500.000
450.000
400.000
350.000
300.000
250.000
200.000
150.000
100.000
50.000
0
Accessories
Clothing
Year 1
Year 2
Year 3

Management Team/ HR
Mr smith is CEO and PR spokesperson/ media developer
Mr Brown is operations officer
Mrs Jones is Marketing Officer
Full financial statements
Year 1 sales forecast
Month 0
month 1
month 2
month 3
month 4
month 5
month 6
month 7
month 8
month 9
month 10
month 11
month 12
Total
26
26
26
26
26
26
26
26
26
26
26
26
10
65
10
65
10
65
10
65
10
65
10
65
10
65
10
65
10
65
10
65
10
65
10
65
16,900
16,900
16,900
16,900
16,900
16,900
16,900
16,900
16,900
16,900
16,900
16,900
18
25
18
25
18
25
18
25
18
25
18
25
18
25
18
25
18
25
18
25
18
25
18
25
Total accessories
11,700
11,700
11,700
11,700
11,700
11,700
11,700
11,700
11,700
11,700
11,700
11,700
140,400
Total revenues
28,600
28,600
28,600
28,600
28,600
28,600
28,600
28,600
28,600
28,600
28,600
28,600
343,200
Revenues
Days open in month
Clothing
Buying customers per day
Average purchase price
Total clothing
202,800
Accessories
Buying customers per day
Average purchase price
Copyright Teneric Limited 2005 all right reserved

Year 1 costs forecast and profit and loss account
Month 0
month 1
month 2
month 3
month 4
month 5
month 6
month 7
month 8
month 9
month 10
month 11
month 12
Total
11,440
686
11,440
686
11,440
686
11,440
686
11,440
686
11,440
686
11,440
686
11,440
686
11,440
686
11,440
686
11,440
686
11,440
686
Staff (2 members + manager)
4,125
4,125
4,125
4,125
4,125
4,125
4,125
4,125
4,125
4,125
4,125
4,125
Misc
Rent
Rates/ elect etc
Insurance
Marketing
Accountancy/ legal
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
50
2,500
500
250
250
146
137,280
8,237
49,500
600
30,000
6,000
3,000
3,000
1,750
17,000
19,947
19,947
19,947
19,947
19,947
19,947
19,947
19,947
19,947
19,947
19,947
19,947
239,367
- 17,000
8,653
8,653
8,653
8,653
8,653
8,653
8,653
8,653
8,653
8,653
8,653
8,653
103,833
1,731
1,731
1,731
1,731
0
1,731
0
1,731
0
1,731
0
1,731
0
1,731
0
1,731
0
1,731
0
1,731
0
20,767
-
6,922
6,922
6,922
6,922
6,922
6,922
6,922
6,922
6,922
6,922
6,922
6,922
83,067
Costs incurred
Direct cost
Average cost of sale (40%)
Credit card fees 3% on 80%
Start-up costs
Total costs
Net profit
17,000
Tax
Dividends
Net profit after tax
- 17,000
Year 1 cashflow
Month 0
month 1
month 2
month 3
month 4
month 5
month 6
3,000
3,773
4,546
3,198
1,851
504
15,000
15,000
5,720
5,720
- 10,000
22,880
5,720
- 10,000
22,880
5,720
- 10,000
22,880
5,720
- 19,947
- 19,947
- 19,947
- 19,947
- 19,947
month 7
month 8
month 9
month 10
month 11
month 12
Total
4,157
2,809
1,462
5,115
8,768
12,420
70,000
5,000
22,880
5,720
- 10,000
22,880
5,720
- 10,000
22,880
5,720
5,000
22,880
5,720
22,880
5,720
- 19,947
- 19,947
- 19,947
- 19,947
- 19,947
- 19,947
Cashflow
Opening balance
Directors loans
Loan repayments
Credit card income + 8 wks
80% cash receipts
Stock purchase
Costs - instant
40,000
- 20,000
- 17,000
5,000
22,880
5,720
5,000
22,880
5,720
- 19,947
70,000
228,800
68,640
- 20,000
- 256,367
Tax - next year

Dividends instant
Closing balance
3,000
3,773
4,546
3,198
1,851
504
4,157
2,809
Year 1 balance sheet

1,462
5,115
8,768
12,420
21,073
21,073

Month 0
month 1
month 2
month 3
month 4
month 5
month 6
month 7
month 8
month 9
month 10
month 11
month 12
3,773
20,000
22,880
46,653
4,546
20,000
45,760
70,306
3,198
20,000
45,760
68,958
1,851
20,000
45,760
67,611
504
20,000
45,760
66,264
4,157
20,000
45,760
69,917
2,809
20,000
45,760
68,569
1,462
20,000
45,760
67,222
5,115
20,000
45,760
70,875
8,768
20,000
45,760
74,528
12,420
20,000
45,760
78,180
21,073
20,000
45,760
86,833
8,653
- 10,383
- 12,114
- 13,844
- 15,575
- 17,306
- 19,036
- 20,767
Balance sheet
Cash
Stock
Debtors
Current assets
3,000
20,000
23,000
Tax creditor
Assets - liabilities
1,731
23,000
44,922
- 17,000
- 10,078
Directors loans
repayments
net loan
40,000
40,000
Total
23,000
3,461
5,192
6,922
66,844
63,767
60,689
57,611
59,533
56,455
53,378
55,300
57,222
59,144
66,067
3,156
3,767
10,689
17,611
24,533
31,455
38,378
45,300
52,222
59,144
66,067
55,000
55,000
70,000
70,000
70,000
- 10,000
60,000
70,000
- 20,000
50,000
70,000
- 30,000
40,000
70,000
- 35,000
35,000
70,000
- 45,000
25,000
70,000
- 55,000
15,000
70,000
- 60,000
10,000
70,000
- 65,000
5,000
70,000
- 70,000
-
70,000
- 70,000
-
44,922
66,844
63,767
60,689
57,611
59,533
56,455
53,378
55,300
57,222
59,144
66,067
Shareholders funds
P&L account

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SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Business plan for ABC Retail Limited

Copyright Teneric Limited 2005 all right reserved.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

KEY ACTIONS PLANNED FOR THE NEXT 12 MONTHS.....................................................9

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Business fashion for the new business women

Revenues and profitability

Copyright Teneric Limited 2005 all right reserved.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

COMPANY OWNERSHIP/ LOCATION

Copyright Teneric Limited 2005 all right reserved.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

LONDON RETAIL SALES MONITOR

Source: Office for National Statistics

The local market place

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Stylish and practical business clothing

Excellent personal service and value for money

Excellent personal service and value for money

Copyright Teneric Limited 2005 all right reserved.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Copyright Teneric Limited 2005 all right reserved.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

3 retail business professionals with 18 years experience

Copyright Teneric Limited 2005 all right reserved.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Objective 4 : Marketing plan

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Develop retail business

Copyright Teneric Limited 2005 all right reserved.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Full financial statements

Copyright Teneric Limited 2005 all right reserved.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Year 1 sales forecast

Copyright Teneric Limited 2005 all right reserved

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Staff (2 members + manager)

Copyright Teneric Limited 2005 all right reserved

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Tax - next year

Year 1 balance sheet

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS)

Copyright Teneric Limited 2005 all right reserved

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