how to create a store business plan

Retail Business Plan Template

Written by Dave Lavinsky

Retail Business Plan

You’ve come to the right place to create a successful retail business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their retail companies.

Sample Retail Business Plan

Below is a retail business plan example to help you create your own business plan.

Executive Summary

Business overview.

Artisan Home & Decor is a startup retail shop located in Pasadena, California. The company is founded by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing a store and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor. Joyce is confident that her ability to effectively manage employees, customer relationships, and retail operations will help her establish a profitable retail store. Joyce plans on recruiting a team of highly qualified sales associates, accountants, and buyers to help manage the day to day complexities of retail – marketing, sales, budgeting, sourcing, and purchasing.

Artisan Home & Decor will provide uniquely curated home decor products created by local artisans. The home decor shop will be the ultimate choice for customers in Pasadena who value one-of-a-kind pieces for their homes. Artisan Home & Decor will provide its customers with a refreshingly personalized shopping experience they can’t get anywhere else. The shop’s sales associates will be able to help customers find the perfect pieces to suit their individual preferences and styles.

Product Offering

The following are the products that Artisan Home & Decor will provide:

• Lamps & Lighting
• Throw Blankets
• Photo Frames
• Cookware Sets
• Kitchen Gadgets
• Kitchen and Bathroom Fixtures
• Waste Baskets
• Soap Dispensers

Customer Focus

Artisan Home & Decor will target home decor shoppers looking for a personalized experience and unique pieces in Pasadena. The company will target boomer, millennial, and gen z  consumers looking for unique decor for their homes, apartments, or condos. They will also target businesses looking for special pieces to furnish their corporate offices, waiting rooms, and lobbies. No matter the client, Artisan Home & Decor will deliver the best communication, service, and high quality products.

Management Team

Artisan Home & Decor will be owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing retail businesses and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor.

Joyce Hernandez has recruited her former assistant manager, Melissa Jacobs to come on board to help her manage Artisan Home & Decor. While Joyce will oversee the employees, day-to-day operations, and client relationships, Melissa will be the Inventory Manager. She will be in charge of sourcing, purchasing, and pricing all inventory. Melissa will work directly with suppliers to stock the retail shop with unique artisan pieces.

Melissa is a graduate of the University of California with a Bachelor’s degree in Interior Design. She has been working at a local retail home decor company for over a decade as an assistant manager. Melissa has an eye for design and keen organizational skills that will allow her to effectively manage Artisan Home & Decor’s one-of-a-kind inventory. Her communication skills will enable her to establish and maintain working relationships with artisans and suppliers.

Success Factors

Artisan Home & Decor will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of sales associates and interior design experts that are able to provide a personalized customer experience and help each client find the right home decor pieces to suit their preferences.
• Artisan Home & Decor will bring fresh inventory into their retail store on a regular basis so there will always be something new for customers to check out. In addition to in-store sales, the company will sell pieces online through its website.
• Artisan Home & Decor offers one-of-kind pieces created by local artisans to suit a wide variety of home decor styles and tastes. By purchasing from the shop, customers are supporting these local artisans and getting fresh decor that no one else will have.

Financial Highlights

Artisan Home & Decor is seeking $210,000 in debt financing to launch its retail business. The funding will be dedicated towards securing and building out the retail space and purchasing the initial inventory. Funds will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for print ads, website and SEO marketing initiatives, and association memberships. The breakout of the funding is below:

• Retail space build-out: $25,000
• Retail store shelving, displays, equipment, supplies, and materials: $40,000
• Three months of overhead expenses (payroll, rent, utilities): $120,000
• Marketing costs: $15,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Artisan Home & Decor.

Company Overview

Who is artisan home & decor.

Artisan Home & Decor is a newly established retail company in Pasadena, California. The new home decor shop will be the ultimate choice for people looking for uniquely curated one-of-a-kind furniture and other home products crafted by local artisans. Artisan Home & Decor will provide its customers with a refreshingly personalized shopping experience they can’t get anywhere else. The shop’s sales associates and experienced interior designers will be able to help customers find the right pieces to suit their preferences and styles.

Artisan Home & Decor will be able to provide a personalized shopping experience for serving customers in-store and online. The team of professionals and sales associates are highly qualified and experienced in interior design, home decor, and the customer experience. Artisan Home & Decor removes all headaches and issues of the home decor shopper and ensures all issues are taken care off expeditiously while delivering the best customer service.

Artisan Home & Decor History

Artisan Home & Decor is owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing retail stores and the education on how to run a retail business, she is ready to start her own company. Joyce is confident that her ability to effectively manage employees, customer relationships, and retail operations will help her establish a profitable retail store. Joyce has begun recruiting a team of highly qualified sales associates, accountants, and buyers to help manage the day to day complexities of retail – marketing, sales, budgeting, sourcing, and purchasing.

Since incorporation, Artisan Home & Decor has achieved the following milestones:

• Registered Artisan Home & Decor, LLC to transact business in the state of California.
• Has a contract in place to lease the retail space.
• Reached out to numerous local artisans to advise them on the upcoming retail shop in order to start getting supplier contracts.
• Began recruiting a staff of sales associates, interior designers, an accountant/bookkeeper, marketing director, and assistant manager to work at Artisan Home & Decor.

Artisan Home & Decor Services

Industry analysis.

The retail industry in the United States is valued at over $4T currently and is forecasted to reach $4.9T by the end of 2022. This is up from $3.8T in 2019. After a decade of retail decline between 2010 and 2020, the market is rebounding at a surprising rate. There were twice as many store openings as closings in 2021 alone. The number of brick-and-mortar retail establishments is increasing even as ecommerce shopping has grown by 70% in the last three years.

The role of retail stores is evolving and industry operators are discovering in-store experiences are still vital from the customer perspective. Successful brick-and-mortar industry operators are incorporating ecommerce into their business models. Trends include providing ship-from-store and buy online, pickup in store options to give customers more flexibility in the way they can shop. Key success factors include the level of customer satisfaction, product selection, prices, and convenience.

Customer Analysis

Demographic profile of target market.

The precise demographics for Pasadena, California are:

Customer Segmentation

Artisan Home & Decor will primarily target the following customer profiles:

• Millennial customers looking for one-of-a-kind home decor
• Boomer customers looking for one-of-a-kind home decor
• Gen z customers looking for one-of-a-kind home decor
• Businesses looking for unique decor for their offices, waiting rooms, or lobbies

Competitive Analysis

Direct and indirect competitors.

Artisan Home & Decor will face competition from other retailers with similar business profiles. A description of each competitor company is below.

Pasadena Home Decor

Pasadena Home Decor provides high-end home decor for the conscientious consumer. Located in Pasadena, California, the home decor retailer is able to provide a tailored shopping experience for its customers. The store’s list of products includes tables, chairs, wall hangings, rugs, vases, photo frames, candles, office decor, and paintings by local artists. Pasadena Home Decor sells online and in-store to give customers flexibility.

Pasadena Home Decor’s promise is to deliver high quality pieces that will stand out. Customers who purchase furniture and home decor from Pasadena Home Decor will be delighted with the customer service, cleanliness of the store, and personalized design services the company offers.

Home Shoppe

Home Shoppe is a California-based home decor retail store that provides outstanding pieces for discerning clientele. Home Shoppe stocks unique furniture and other decor items that are 100% hand-crafted. The owners of Home Shoppe are experienced craftsmen themselves, so they know how quality furniture and home decor pieces should be made. Clients can depend on their selection of products for durability, style, and eco-friendly materials. Choose Home Shoppe for your next home decor project and let the sales team take the stress out of the redecorating process by helping you select the best products for your home.

Redecorating For You

Redecorating For You is a trusted Pasadena retail company that provides superior home decor products for shoppers in Pasadena and the surrounding areas. The shop offers an extensive inventory of home decor items in a variety of styles so there is something for every taste. Redecorating For You is able to provide premium pieces that fill every space with elegance and style. The shop also eases the stress of redecorating by providing in-store pickup and delivery options for busy customers.

Competitive Advantage

Artisan Home & Decor will be able to offer the following advantages over their competition:

• Artisan Home & Decor will bring fresh inventory into the store on a regular basis so there will always be something new for customers to check out. In addition to in-store sales, the company will sell pieces online through its website.
• Artisan Home & Decor offers one-of-kind pieces created by local artisans to suit a wide variety of home decor styles and tastes.

Marketing Plan

Brand & value proposition.

Artisan Home & Decor will offer the unique value proposition to its clientele:

• Artisan Home & Decor will make redecorating easy for customers by providing in-store shopping, pickup, delivery, online shopping, ship-from-store, and buy online-pickup in store options.
• By purchasing from the shop, customers are supporting local artisans and getting fresh decor that no one else will have.

Promotions Strategy

The promotions strategy for Artisan Home & Decor is as follows:

Social Media Marketing

The company will use various social media platforms such as TikTok, Instagram, Facebook, LinkedIn, YouTube, and Snapchat to promote the shop, feature artisans, and show off new pieces. The marketing director will oversee the social media marketing activities to grow the customer base.

Professional Associations and Networking

Artisan Home & Decor will become a member of professional associations such as the National Retail Federation, California Retailers Association, and the Home Furnishings Association. The company will focus its networking efforts on expanding its network of clients, designers, and artisans.

Print Advertising

Artisan Home & Decor will invest in professionally designed print ads to display in programs or flyers at industry networking events, in home decor publications, and direct mailers.

Website/SEO Marketing

Artisan Home & Decor’s marketing director will be responsible for creating and maintaining the company website. The website will be well organized, informative, and list all of the products currently available for purchase online.

The marketing director will also manage Artisan Home & Decor’s website presence with SEO marketing tactics so that any time someone types in the Google or Bing search engine “Pasadena home decor retailer” or “home decor store near me”, Artisan Home & Decor will be listed at the top of the search results.

Pricing Strategy

The pricing of Artisan Home & Decor will be premium and on par with competitors so customers feel they receive value when purchasing the one-of-a-kind products.

Operations Plan

The following will be the operations plan for Artisan Home & Decor.

Operation Functions:

• Joyce Hernandez will be the Owner and Manager of the store. She will oversee all staff and manage day-to-day operations. Joyce has spent the past year recruiting the following staff:
• Melissa Jacobs – Inventory Manager who will be responsible for sourcing, purchasing, pricing, and inventory management.
• Robert Brown – Staff Accountant/bookkeeper who will provide all store accounting, tax payments, and monthly financial reporting.
• Bill Johnson – Marketing Director who will provide all marketing and sales activities for Artisan Home & Decor including maintaining the website, social media, print advertising, and promotions.
• Julia Smith – Lead Sales Associate & Designer who will manage all sales associates and provide design services for customers.

Milestones:

Artisan Home & Decor will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to lease the retail space.

9/15/2022 – Finalize personnel and staff employment contracts for the management team.

10/1/2022 – Finalize contracts for suppliers.

10/15/2022 – Begin networking at industry events and implement the marketing plan.

10/22/2022 – Begin moving into the Artisan Home & Decor shop.

11/1/2022 – Artisan Home & Decor opens for business.

Artisan Home & Decor will be owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing a store and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor.

Melissa is a graduate of the University of California with a Bachelor’s degree in Interior Design. She has been working at a local retail home decor company for over a decade as an assistant manager. Melissa has an eye for design and keen organizational skills that will allow her to effectively manage Artisan Home & Decor’s one-of-a-kind inventory. Her communication skills will enable her to establish and maintain working relationships with suppliers.

Financial Plan

Key revenue & costs.

The revenue drivers for Artisan Home & Decor are the retail fees they will charge to the customers in exchange for their products. The shop will charge a healthy margin to make sure artisans are paid well for their products while ensuring a solid profit for the business.

The cost drivers will be the overhead costs required in order to staff a retail store. The expenses will be the payroll cost, rent, utilities, store supplies, and marketing materials.

Funding Requirements and Use of Funds

• Store shelving, displays, equipment, supplies, and materials: $40,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of items sold per month: 300
• Average sales per month: $90,000
• Retail space lease per year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Free Business Plan Template PDF for a Retail Store Business

You can download our free retail business plan template PDF here . This is a retail business plan template you can use in PDF format. You can easily complete your retail business plan using our Retail Business Plan Template here .

Retail Business Plan Template FAQs

What is a retail business plan.

A retail business plan is a plan to start and/or grow your retail business. Among other things, it outlines your business concept, identifies your target market, presents your marketing plan and details your financial projections.

What are the Steps To Start a Retail Business?

Starting a retail business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop a Strong Retail Business Plan – The first step in starting a business is to create a detailed retail store business plan that outlines all aspects of the venture. This should include thorough market research, your potential market size and target customers, the services or products you will offer, marketing strategy, your competitive advantages and detailed financial projections.

2. Choose Your Business Structure – It’s important to select an appropriate legal entity for your retail business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your retail business is in compliance with local laws.

3. Register Your Retail Business – Once you have chosen a legal structure, the next step is to register your retail business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your retail business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Store Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Retail Equipment & Supplies – In order to start your retail business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your retail business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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How to Write An Attention-Grabbing Retail Business Plan

• by Luke O'Neill

minute read

Business success is impossible without a good plan. And in the case of retail stores , that means putting in the time and effort on your retail business plan. 

Now, you might be thinking: ‘why do I need a business plan? I’ve got it all mapped out in my head. I might even have successful businesses already!’

But business plans are so much more than another action item on your ever-growing to-do list.  They communicate your positioning, planning and potential for success to the world.

Whether you’re writing your first business plan or your tenth, we’ve put together a guide to getting it done that will help:

• The purpose of a retail business plan
• How a retail business plan differs from other business plans
• Before you get started
• What to include in your plan
• Mistakes to avoid
• How to set your plan apart

Inventory management made easy

Use our easy-to-follow inventory management to streamline your processes and eliminate errors.

What are retail business plans for? 

Retail business plans are planning and forecasting documents. They explain your business model, who your customers are and how you plan to take your store or online shop from an idea to a profitable reality. 

Why are retail business plans different?

Because retail businesses are different. 

Whether you’re selling from a brick-and-mortar store or through an online shop, you have to consider a combination of factors that many other businesses don’t. Think inventory, store supplies, sourcing and supply chains. And, even more complex activities like order fulfillment, deliveries and customer returns. 

You don’t need to write a tome that covers all of these areas, but they will inform how you put your business plan on paper. 

What are the different sections of a retail business plan? 

Crafting an attention-grabbing retail business plan hinges on detailing its most crucial sections with precision. 

Each section plays a vital role in presenting a comprehensive and convincing plan for your retail business.

Here are three pivotal areas to focus on:

• Executive summary: your elevator pitch. The executive summary distills your business concept, market positioning and unique selling proposition into a compelling narrative that hooks the reader immediately. 
• Market analysis: this section should detail the size and growth potential of your target market, customer demographics, and purchasing habits. It also covers competitor analysis, showing awareness of your competition and how your business will stand out. 
• Financial Plan: lay out your financial projections and funding requirements clearly. This includes startup costs, projected income statements, cash flow forecasts, and a break-even analysis.

Before you write your retail business plan

But let’s pump the brakes for a second. It might be tempting to dive right in and start writing your business plan as soon as possible. But consider these suggestions before you do.

Research your market first

“Without a market, a retail firm cannot exist,” said Susan Smith, marketing manager at Velden Engineering . “One of the first things readers will look for when reading your business plan is evidence of a healthy market, an unmet need in the market and how your company is positioned to meet that need. Completing thorough market research before developing your business plan should be a top priority,” she said.

To grasp customer demographics and preferences, retailers should engage in thorough market research:

• Analyze existing data on target market segments to understand age, gender, income levels and lifestyle choices.
• Conduct surveys and focus groups to gather insights directly from potential customers about their needs, preferences, and shopping behaviors.
• Leverage social media analytics to reveal wider trends and consumer sentiments.

Combining quantitative data with qualitative feedback allows retailers to tailor their offerings and marketing strategies effectively, ensuring their business plan is aligned with customer expectations and market demand.

Understand your competitors

This will give you valuable insight into your own products and services.

“Most industries are becoming oversaturated at this point, so investors want to know what sets you apart. What makes you unique. Do as much research into your competitors as you do into your own business ,” said Gabriel Dungan, CEO and founder of mattress topper company, ViscoSoft.

To research your competitors:

• Shop with them. Browse their online storefront, visit one of their locations, make a purchase and make note of their services.
• Gather their press releases, investor relations and earning statements.
• Chart their growth patterns and research the cities and neighborhoods they operate in.
• Record their USP, product offering and any loyalty programs.

Choose the right location

When selecting a potential location, consider factors such as target market proximity, foot traffic, competition density and the compatibility of the local demographic with your product offering. A prime location can boost foot traffic, offering more opportunities to attract and retain customers.

The impact of location extends beyond mere physical presence; it’s about positioning your business in a spot that maximizes its exposure to the right audience, enhancing the likelihood of higher sales volumes.

Do research to help you articulate the rationale behind your location:

• Gather market research data, foot traffic statistics and competitive analysis.
• Cross reference how your chosen location aligns with your target market’s profile and shopping habits.

Have a growth strategy

Identify a clear growth strategy to strengthen your business plan, suggests Michelle Ebbin, Owner of Australian clothing brand JettProof .  “Most companies focus on market penetration where they sell current products to an already existing market,” said Ebbin. “While that’s a feasible route, you might also want to explore product development by introducing new, innovative products to existing customers.”

“There’s also market development where you try to find new markets for your existing products and diversification for introducing new products to new markets,” she said. Ebbin believes determining a clear growth strategy can increase retailers’ chances of convincing potential investors, who essentially want to know how you will grow your business once it’s up and running.

TIP: Accountants and financial advisors can help you prepare your retail business plan.

Retailers should consider expansion or diversifying product lines and services when their current operations consistently exceed performance expectations, signaling market demand and operational capacity for growth. Analyze sales data, customer feedback, and market trends to identify opportunities. Additionally, if there’s a noticeable shift in consumer behavior or emerging trends align with your business’s strengths, it might be time to diversify. In your business plan, clearly outline the strategic rationale for expansion or diversification, supported by data and market analysis, to demonstrate how these moves will drive future growth and address evolving market needs.

What to include in your retail business plan

When it comes to the specifics, include these details.  

Give a business overview in your executive summary 

For your executive summary, give a high-level description of your retail business. If you had less than two minutes to explain why your business will succeed, what would you say?

You can mention your company’s structure, legal name, location and the products or services you’ll sell, but don’t go in depth—these will all have their own dedicated sections. Describe whether you will be selling in-store, online or across various channels.

Keep this section simple. Use easy-to-understand language. It shouldn’t be more than a page, and it should get people excited right away.

Explain your business goals

In this section, you should talk about what you plan to achieve. Why are you starting this business, and where do you want it to go? Realistically, what will you be able to make happen?

This doesn’t need to be lengthy or complex. And the goal doesn’t need to be huge, either. For example:

“Our goal is to become the go-to provider of HD gaming and streaming cameras for teenagers in San Francisco within 18-24 months.”  

You could also cover any goals you have about locations, product ranges or online stores. 

Showcase your industry experience

This section is more about you, the owner. It’s where you showcase your personal and professional drive to take the business forward. Keep it brief, but say why you’re the right person to take this retail business from an idea to a reality. 

• Your specialty, such as brick-and-mortar, ecommerce or both. Direct-to-consumer (DTC) is also an option.
• Any senior roles in well-known national or regional retail businesses
• Sales or lead generation goals you’ve driven before
• Successful growth initiatives, like new store openings.

Set out your marketing strategy 

Here’s where you talk about your store’s image and branding strategy. Cover of some of the fundamentals of retail marketing, including your plans for the 4Ps of retail marketing. 

Here’s a quick reminder about what they are:  

• Product: What you’ll sell and your Unique Selling Proposition (USP). 
• Pricing: How much your products will cost and why you’ve chosen these price points. 
• Place: Where you’re going to sell your products (online, in-store or omnichannel).
• Promotion: How you’re going to promote both your store and the products you will sell.  

Consider briefly outlining your strategy for leveraging social media for marketing and customer engagement. Describe how platforms like Instagram, Facebook and Twitter will serve as tools for brand promotion, product launches, and direct customer interaction. 

This section doesn’t need to be overlong or complex. If you want to dive into the details—or provide a complete marketing plan —you can do this in an appendix at the end of the plan. 

Financial strategy and forecast

Nine times out of 10, this is what people reading your business plan will most want to see.

“At the end of the day, your company will be judged on its capacity to generate a profit,” said Will Cannon, CEO of Signaturely , an e-signature software company. “Investors will want to see some data related to your startup demands and revenue estimates, no matter how succinct and appealing your retail business plan is,” he said. 

Think about including your:

• Estimated capital requirements
• Profit and revenue model
• Estimated sales volume
• A break-even point calculation
• Balance sheet projections
• Cash flow projections.

Above all, ground these figures in reason.

Detail the management structure

Explain your management setup. Who are the founders? What will their job be? Will you have a CFO, a CPO, a head buyer, a head of marketing? A vice president? Define your titles and jobs. 

This will make things move much more easily throughout the early settling-in time. Everyone will understand where they stand and you will know how you plan to manage people on a daily basis. This strategy should include information such as the number of team members you’ll hire, their roles and how those roles fit into the wider plan. 

Outline your plan for technology and retail operations

In this part of your business plan, detail how you’ll harness retail technology to streamline operations, enhance customer experience and expand your market reach. List your options for POS systems, why you’re considering them, their opportunities for growth and their annual cost.  

Emphasize integrating ecommerce into your business model and exactly how—will you operate your own site, sell on Amazon or both? Discuss the specifics of your online storefront, including website design—will you pay for a custom-coded site?—payment processing systems and cybersecurity measures to protect customer information.

Talk about inventory sourcing and supplier management

Outline your criteria for selecting suppliers, including their sustainability practices, delivery timelines and ability to scale with your business. If you have any quotes from or connections with suppliers already, include those details here. 

Discuss your strategies for efficient inventory sourcing, such as leveraging technology for inventory management, adopting a just-in-time inventory system to reduce holding costs and diversifying your supplier base to mitigate risks. Explain how you plan to negotiate favorable terms and build a collaborative rapport with suppliers to secure better prices, quality improvements and exclusive products.

Include your approach to handling supply chain disruptions and ensuring product availability to meet customer demand without overstocking. 

Make a plan for compliance and legal considerations

This part of your retail business plan should detail any local zoning laws, health and safety standards and specific retail sector regulations you need to make a plan for. 

Mention the need for protecting your business with the right insurance policies. Outline the types of insurance you’ll secure, such as:

• Liability insurance
• Property insurance
• Workers’ compensation

Mention your sustainability and ethical practices

Describe initiatives you’ll invest in, such as using eco-friendly materials, reducing waste through efficient packaging and implementing energy-saving practices within operations, and briefly mention their importance to your potential customers. 

Also discuss the importance of ethical inventory sourcing, ensuring that products are obtained from suppliers who uphold high standards for labor practices and environmental responsibility.

Finish by detailing plans to monitor and adapt to market trends

Future-proof your retail business plan by laying the foundation for scaling and adapting. Outline your strategies for continuous market research, including customer feedback mechanisms, social media monitoring and industry reports, to identify emerging trends and shifts in consumer preferences.

Discuss how your business plan is designed to be flexible, allowing you to swiftly adapt to changing market conditions. This might include diversifying product lines, embracing new technologies or refining marketing strategies to meet evolving consumer demands. 

Avoid these common mistakes

A good business plan is as much about what you leave out as what you put in. 

Too much detail

You’re not here to write a novel. You’re here to get busy people on board with your business plan.

“Potential partners and investors will not waste time pouring over hundreds of pages of rambling nonsense,” said Nick Edwards, Director at Snow Finders , a ski holiday company in the UK.

Long blocks of text should be avoided. Use visuals and graphics to substitute prose, with any exceptionally heavy content being attached as appendices if necessary.

Poor financial planning 

Some landlords take a percentage of sales as part of the rent. And it’s common for rent to increase annually. Your retail business plan should account for growing expenses, taxes and wider market influences to prove you’ve got a handle on your financial planning.

Spelling and grammar

Remember the basics. Grammar and spelling errors show you haven’t put diligence into the planning process. And that can undermine how partners and potential investors view the plan.  

Once you’ve written your business plan, have a professional editor look it over to catch any errors and make sure you’re as clear as possible.

How to strengthen your business plan 

As you’ll have noticed by now, you need to keep a few different audiences in mind while writing your business plan. In most cases, there are three:

• Potential investors: People or businesses who want to back your business with capital, in return for future profits or part-ownership.
• Potential business partners: Suppliers, brands and business partners who may want to supply goods or services to your business, or even help you run the whole show. 
• Banks, lenders and insurers: Financial institutions that you may need for credit cards, overdrafts, loans or revolving credit facilities. 

“Be wary about exaggerating your numbers or laying out too difficult or impossible things,” said Stacey Kane, Business Development Lead at Easy Merchant . “You want the investor who finds flaws in your plan to be the exception, not the norm. With this perspective, you can strengthen your view of what can be done with research and transparent results. Finding ways to show how valuable your idea is will also help make them more likely to invest,” she said.  

Finishing your retail business plan 

Done well, business plans are much more than a helpful written guide to your business strategy. They’re a resource to attract future business partners, and even a foundation for securing outside funding. Don’t put writing your retail business plan on the backburner for too long—it could be one of the first stepping stones to your very own thriving retail business. 

Ready to write your retail business plan? Talk to a Lightspeed product expert to discover how the right POS technology can help you show investors and partners that you mean business. 

Frequently asked questions about business plans

How do i write a retail business plan.

Begin with a clear executive summary, followed by market analysis to understand your audience.

Detail your business description, including products and services. Include sections on organization and management, marketing and sales strategies, funding requests (if applicable), financial projections and an appendix for additional documents. 

Each section should be concise, backed by research, and reflect your vision for the business.

How do I start a successful retail business?

• Identify a market need and develop a business model that addresses that need uniquely. 
• Conduct thorough market research.
• Choose a strategic location.
• Curate a compelling product mix.
• Write a business plan detailing all this, plus financial planning, and get funding.

How do you structure a retail business?

Organize your operations into key areas: procurement, sales, marketing, inventory management, customer service and finance. Define clear roles and responsibilities for your team to ensure smooth operations and a positive customer experience.

What does a retail business plan look like?

A retail business plan includes an executive summary, market analysis, business description, organization and management structure, details of product or service offerings, marketing and sales strategy, financial projections and an appendix. It’s a structured document that outlines your business goals and your financial expectations.

How do you start a business plan from scratch?

Start by defining your business idea and objectives. Conduct market research to understand your competition and target audience. Outline your business structure, products or services, marketing and sales strategies and financial plans including projections. Write an executive summary last, which summarizes the key points of your plan. Use a clear, concise and realistic approach throughout the document.

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Luke O’Neill writes for growing businesses in fintech, legal SaaS, and education. He owns Genuine Communications , which helps CMOs, founders, and marketing teams to build brands and attract customers.

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How to create a retail store business plan

By Homebase Team

A successful retail business starts with a well-thought-out retail business plan. While you may think you have your business ideas all figured out in your head, putting them down on paper in the form of a business plan is crucial for several reasons. 

In this post, we’ll explore what a retail business plan is, why it’s different from other business plans, what to include in it, common mistakes to avoid, and how to make your plan stand out.

What Is a Retail store business plan and why do you need one?

A retail store business plan is a comprehensive document that outlines your business model, identifies your target customers, and lays out a roadmap for turning your retail store or online shop into a profitable business. 

It’s a planning and forecasting tool that provides clarity and direction for your business. With a good business plan, you’re more likely to achieve success. 

Here’s why having a retail store business plan is essential:

Planning and forecasting

A retail store business plan helps you plan and set clear goals for your business’s short-term and long-term success.

Planning helps you set goals, allocate resources wisely, and stay on track. It ensures that day-to-day operations run smoothly. Forecasting, on the other hand, helps businesses anticipate future trends and challenges, allowing them to make informed decisions and adapt to changing circumstances. 

Together, planning and forecasting help you avoid costly mistakes, reduce labor costs , seize opportunities, and achieve both short-term and long-term objectives. In essence, they’re like a GPS for your retail business, guiding it towards profitability and sustainability.

Securing investment

A retail store business plan helps secure investment by demonstrating a clear and well-thought-out strategy. It shows potential investors that you’ve done your homework, understand your market, and have a solid plan for success. 

The plan outlines your business goals, target market, competitive analysis, and financial projections, instilling confidence in investors that their money will be used wisely. It also highlights your commitment and professionalism, making you a more attractive investment opportunity. 

Essentially, a strong retail business plan reassures investors that your venture is a sound investment with a higher likelihood of delivering returns on their capital.

Guiding business operations

A retail store business plan serves as a roadmap for guiding business operations. It outlines your business’s goals, strategies, and tactics, providing a clear direction for daily activities. 

It helps you make informed decisions about product offerings, retail staff scheduling , pricing, local business marketing , online marketing and staffing. The plan also includes financial projections and budgeting, ensuring you manage resources effectively. 

Regularly reviewing the plan allows you to track progress, identify areas needing improvement, and adjust strategies accordingly. Overall, it keeps the business focused, organized, and aligned with its objectives, making day-to-day operations more efficient and effective in achieving long-term success.

Get your team in sync with our easy-to-use, all-in-one employee app.

How is a retail business plan different from other business plans?

Retail businesses are unique in many ways, and your business plan should reflect that. Unlike other businesses, retail operations involve factors such as inventory management , supply chains, order fulfillment, deliveries, and customer returns. 

Here’s how a retail store business plan differs:

Inventory management

Unlike other business plans, retail plans must handle challenges like seasonal sales variations and predicting what customers will buy. Inventory management in retail business plans is about keeping the right amount of products in stock to meet customer demand while avoiding excess or shortages. 

They also need to explain how they get products, where they store them, and how they restock when items run low. In contrast, many other businesses don’t deal with these inventory issues.

Retail store business plans focus more on handling and controlling inventory to make sure they always have what customers want and don’t waste money on too much stock.

Marketing strategy

Marketing strategy in retail store business plans, compared to other business plans, often emphasizes attracting customers to physical or online stores, creating appealing displays, and running promotions like sales or loyalty programs. 

Retail plans typically prioritize reaching a broad consumer base and enticing them with visually appealing products. In contrast, other business plans might focus on more specialized marketing, like B2B partnerships or online advertising. 

Retailers also consider factors like store location and layout, which are less significant for many other businesses. So, simply put, retail business plans concentrate on tactics to draw in shoppers and make their shopping experience enjoyable and memorable.

Growth strategy

Growth strategy in retail store business plans, unlike other business plans, often centers on expanding to new locations, introducing new product lines, or attracting more customers. Retailers aim to increase sales by opening additional stores, going online, or diversifying their offerings. 

In contrast, some businesses may focus on improving internal processes or targeting specific niche markets. 

Retailers typically rely on broadening their reach to fuel growth, making strategies like franchising, adding new store branches, or exploring e-commerce crucial components of their plans. So, in simpler terms, retail business plans tend to emphasize expanding the business footprint and customer base as a primary path to success.

What to do before you start writing your retail store business plan

Research your market.

T horough market research is essential. Investors look for evidence of a healthy market and an unmet need that your business can address.

You’ll want to gather data on who your customers are, what they want, and where they’re located. Analyze your competition to see what makes your business unique. This research helps investors see that there’s a demand for your products or services and that your business can thrive in the market. 

It’s about proving that your idea is well-informed and has the potential to succeed. So, in simple terms, thorough market research shows investors that your business plan is based on a strong foundation of knowledge and understanding.

Understand your competitors

 Know your competition inside out. Understanding what sets you apart is crucial.

You need to know who you’re up against and what makes them tick. Research your competitors thoroughly: their strengths, weaknesses, and strategies. Identify what sets your business apart – your unique selling points. 

Investors want to see that you’ve done your homework and can explain how your retail store will outshine the competition. Maybe it’s better prices, superior quality, or outstanding customer service. 

This knowledge not only helps you stand out but also shows investors that you’re ready to face the competition head-on, which can boost their confidence in your business’s potential success.

Have a growth strategy

Define a clear growth strategy to demonstrate how your business will expand once it’s up and running. It shows investors that you’re not just focused on starting your business but also on making it grow in the long run. 

You can outline different growth strategies like market penetration (selling more to existing customers), product development (creating new products for existing customers), market development (selling existing products to new markets), or diversification (introducing new products to new markets). 

This helps investors understand your vision and how you plan to increase your business’s value over time, making your retail venture a more attractive investment opportunity.

What to Include in your retail store business plan

Business overview.

Provide a high-level description of your retail business, including your company’s structure, location, and the products or services you’ll offer.

Business goals

Explain your business goals, whether they’re related to market share, product ranges, or online expansion.

It should give a clear, simple picture of your retail business. Explain whether your business will operate in a physical store, online, or both. 

Mention the legal name of your company, where it’s located, and briefly describe the products or services you plan to sell. Keep it straightforward and easy to understand, so anyone reading your plan can quickly grasp what your retail business is all about. 

This section sets the stage for the rest of your plan, helping readers get a sense of your business from the get-go.

Your industry experience

In the “Your industry experience” section of your retail store business plan, it’s your time to shine. Tell the readers about your background and expertise, especially if you’ve held important positions in recognized retail businesses. 

If you’ve previously led successful growth initiatives or managed to open new stores that flourished, this is the place to mention it. Basically, this section is all about showcasing your qualifications and experience in the retail world.

It helps build trust and confidence that you’re the right person to turn your retail business idea into a thriving reality. Keep it concise but impressive.

The “ Marketing strategy ” section of your retail store business plan is where you paint a picture of how you’ll present your store to the world. Explain your store’s image, the strategy for your brand, and how you plan to market your products or services. 

Don’t forget to dive into the 4Ps of retail marketing:

• Product : Describe what you’re selling and what makes it special.
• Pricing : Explain how you’ll price your products and why.
• Place : Tell where you’ll sell your products, be it online, in-store, or both.
• Promotion : Detail your strategies for promoting your store and products.

This section gives a clear roadmap for how you’ll attract customers and make your business a success. Keep it straightforward and compelling.

Financial strategy and forecast

The “Financial strategy and forecast” section of your retail store business plan is where you show the money side of your business. Investors want to see the numbers, so include things like:

• Estimated capital requirements : How much money do you need to get started and keep going?
• Profit and revenue models : Explain how you plan to make money and what your sales goals are.
• Sales volume projections : Predict how many products you expect to sell.
• Financial statements : Include balance sheets, cash flow projections, and any other financial documents.

These details help investors understand your business’s financial health and potential. Make sure your numbers are realistic and based on careful research and planning.

Management structure

In the “Management structure” section of your retail store business plan, you’ll provide details on how you intend to organize your team and manage your business effectively. This section involves explaining several key aspects:

Firstly, you’ll specify the number of team members you plan to hire. This is essential to understand the size and scope of your workforce.

Secondly, you’ll describe the roles and responsibilities of each team member. This clarification ensures that everyone knows their specific duties and contributes to the smooth operation of the business.

Lastly, you’ll illustrate how each team member fits into your overall business plan. This section helps investors and stakeholders comprehend how your team will collaborate and work together to achieve the business’s goals and objectives. 

A well-defined retail management structure assures potential investors that you have a competent team ready to execute your business plan effectively.

Homebase offers user-friendly employee management tools to streamline team communication , time tracking, and scheduling , helping you refine your management structure. 

Common mistakes to avoid when making your retail store business plan 

A successful business plan is as much about what you leave out as what you put in. Here are some common mistakes to avoid:

Too much detail

Avoid long, rambling text. Use visuals and graphics when possible and attach heavy content as appendices.

Poor financial planning

Account for growing expenses, taxes, and market influences in your financial projections.

Poor spelling and grammar

Basic errors can undermine how partners and investors view your plan.

Strengthening your business plan

To strengthen your business plan, consider your audience, which may include potential investors, business partners, and financial institutions. Be transparent, avoid exaggerations, and demonstrate the value of your idea.

Conclusion: Finishing your retail store business plan

A well-crafted retail store business plan is more than just a guide; it’s a tool to attract investors, secure funding, and set the foundation for a successful retail business. Leveraging tools like Homebase can help you stay competitive and efficient in the retail industry.

Don’t delay writing your plan—it could be the first step towards realizing your retail business dreams.

FAQs about writing a retail store business plan

What is a retail store business plan, and why is it important.

A retail store business plan is a comprehensive document outlining your retail store business’s model, goals, and strategies. It’s crucial as it provides clarity, attracts investors, and guides daily operations for success.

How does a retail store business plan differ from other business plans?

Retail store business plans are unique due to their focus on inventory management, marketing tactics to attract shoppers, and growth strategies centered on expanding customer reach.

What should I include in my retail store business plan’s business overview section?

In the business overview, provide a concise description of your retail business, including its structure, location, and the products or services you intend to offer.

How can a retail store business plan help secure investment?

A retail store business plan demonstrates a well-thought-out strategy, outlining business goals, target market, competitive analysis, and financial projections. It reassures investors, making your venture a more appealing investment opportunity.

What common mistakes should I avoid when creating a retail store  business plan?

Common mistakes include excessive detail, poor financial planning, and grammar/spelling errors. To avoid these, focus on clarity, accurate financial projections, and proofreading.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Retail Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their retail and online stores. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a retail business plan template step-by-step so you can create your plan today.

Download our Ultimate Retail Business Plan Template here >

What is a Retail Business Plan?

A business plan provides a snapshot of your retail business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes thorough market research to support your retail business plans.  

Why You Need a Business Plan for a Retail Store

If you’re looking to start a retail business or grow your existing retail business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your retail business in order to improve your chances of success. Your retail business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Retail Stores

With regards to funding, the main sources of funding for a retail store business are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a retail business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.  

Finish Your Business Plan Today!

How to write a business plan for a retail store.

A strong retail business plan should include 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of retail store you are operating and the status; for example, are you a startup, do you have a retail business that you would like to grow, or are you operating a chain of retail stores.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the retail industry. Discuss the type of retail store you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your retail marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of retail business you are operating.

For example, you might operate one of the following types:

• Specialty Store – a store with a tight focus (e.g., hip apparel for women)
• Off-Priced/Used Goods Store – sells massively discounted or used products
• Department Store – often located at a mall and offer tons of products (e.g., Macy’s)
• Supermarket – focuses primarily on food items
• Convenience Store – offers just the most popular items a supermarket offers in a much smaller location
• Drug Store/Pharmacy – primarily offer medicines and medical products
• Discount Store – offer large inventories at low prices (e.g., Walmart)
• Hypermarket – offer many food and non-food items often in large quantities at a discount (e.g., Costco)
• E-commerce – offers products for sale online (e.g., Amazon)

In addition to explaining the type of retail business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry analysis, you need to provide an overview of the retail industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards local retail businesses with online counterparts, it would be helpful to ensure your plan calls for a significant online presence.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the retail business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in your local market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your retail business. You can extrapolate such a figure by assessing the size of your niche’s market in the entire country and then applying that figure to your local population.

The customer analysis section of your retail store business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of retail business you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing strategies than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most retail businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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With Growthink’s Ultimate Retail Business Plan Template you can finish your plan in just 8 hours or less!

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other brick-and-mortar retail businesses. They are most likely local businesses who sell similar items to you.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. You most likely will have online competitors; companies that sell the same or similar items to you, but which operate online.

For each direct competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. Look at review websites to gain this information.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products or services?
• Will you provide products that your competitors don’t?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a retail business, your marketing plan should include the following:

Product : Here, you should reiterate the type of retail business that you documented in your Company Analysis. Then, detail the specific products you will be offering.

Price : Document the prices you will offer and how they compare to your competitors. In this sub-section, you are presenting the items you offer and their prices.

Place : Place refers to the location of your retail business. Document your location and mention how the location will impact your success. For example, is your retail business located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate kiosks, detail the locations where the kiosks will be placed.

Promotions : In this sub-section, you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your brick-and-mortar storefront extra appealing to attract customers
• Social media marketing
• Search engine optimization
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations
• Local radio advertising
• Banner ads at local venues

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your retail operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your retail business such as serving customers, inventory management, keeping the store clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 5,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new store location.

In this section of your retail store business plan, explain the management structure as this demonstrates your store’s ability to succeed as a business. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the retail business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in retail businesses and/or successfully running retail and small businesses.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, poor financial planning will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your retail business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow projections will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, you may need to purchase inventories now that you can’t sell (and get paid for) for several months. During those months, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a successful retail business:

• Location build-out including design fees, construction, etc.
• Cost of fixtures
• Cost of initial inventory
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Download Our Retail Business Plan PDF

You can download our retail business plan PDF to help you create your own business plan.  

Retail Business Plan Summary

Putting together a business plan for your retail store will improve your company’s chances of success. The process of developing your plan will help you better understand your target market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Retail Business Plan Template allows you to quickly and easily complete your retail store business plan.  

Additional Resources For Starting a Retail Store

• How To Start a Retail Business
• Brick and Mortar Business: From Idea to Grand Opening
• 6 Retail Store Layouts That Drive Sales

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business planning consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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RETAIL EDUCATION & TALENT SOLUTIONS

Retail Business Plan

A retail business plan is a document that gives you and your potential investors a roadmap on how your new retail business intends to get started and deliver its business goals over its initial few years (usually 5 years).

It is usually broken down into sections about the company, the industry it operates in, the competition it will face and a plan that covers marketing, financials and operations over the first few years in business.

Also check out this one-page Business Model Canvas for a retail business .

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Retail Business Plan Template

You can download this free retail business plan template from the link below. You will be able to edit the word file and export it into PDF format afterwards.

In the coming sections, we will explain the different components that go into the retail business plan, which you can then apply to your own plan when completing the template.

Check out more free downloads .

Executive Summary

We recommend writing the executive summary at the end of the process, after you have filled out all the other sections in the retail business plan template.

In the executive summary you will cover the following points briefly:

• Types of products sold at the store
• Customers served by the store
• Company mission & vision
• Market share to be captured

You will also mention the total amount you will need to start this business, backed by the financial plan you prepared as part of this business plan.

The total amount that you want to borrow or have invested in your business will be the sum of pre-opening costs (initial inventory, equipment, rent,..) and the maximum negative cash flow as per your cash flow plan.

If you are writing this retail business plan for a financial institution to get a loan, mention how you expect to repay the loan, and you should have already included the loan installments in your financial plan.

If you are writing this plan for investors, mention how much equity they will receive in return for this investment and the expected return on investment, and expected cash distributions (dividends) based on your financial plan.

For example

An investment of 100,000$ in the business will result in the investor receiving 20% equity. We plan to distribute 50% of the profits every year, and based on our financial projections this will be a xx,xxx$ in the first year, xx,xxx$ in the second year, and xx,xxx$ in the third year,..etc.

Company Overview

Here you will write about your business and give a brief overview about the type of store you will be starting.

You can cover the following points:

• Store category (e.g. beauty store, toy store)
• Store location and brief description of the area
• Product categories carried
• Company legal structure

Industry Overview

Write an overview about the industry (retail/ecommerce) as a whole and the most recent trends specific to this industry.

Cover areas such as:

• Total retail sales
• Contribution of your retail category to the total sales (size of the market)
• Online vs. Brick & Mortar trends
• Recent industry trends and shifts in terms of products you are selling

You can find the most recent insights about retail in our Retail Statistics page.

Read Also: What is Retail ?

Target Market

Write about your target customers that you know will be interested in your products. Mention demographic and psychographic details in this section. This will help afterwards in drafting your marketing plan.

You can cover the following details:

• Age bracket
• Income level
• Educational level
• The specific needs that your products will fill for them

FOUNDATIONS OF MARKETING

• Learn the fundamentals of marketing
• See how they apply to buying, merchandising & pricing
• Real-life case studies and examples

Competition

List the current competition in the market that are serving your target customers. Mention your top 3 competitors in your area.

You can also include indirect competition, such as online stores or marketplace sellers, if you think this might affect your business.

Cover information about:

• No. of stores
• Size of stores
• Product categories they sell
• Pricing level
• Sales per day estimates
• Strengths & Weaknesses

You can also create a summary table like the one below

Competitive Advantage

What will make customers leave the competition and come to you? Use the weaknesses areas that you mentioned about the competition in the previous section, and mention how you will improve on them.

This could be by:

• Superior quality
• Better prices
• Convenience
• More variety
• Better shopping experience

Marketing Plan

Describe your marketing strategy for your store and which channels you are going to use.

Cover the following areas:

• Brand Positioning
• Branding Strategy (Persona, tone, language,..)
• Product Strategy (Key products and product features that will attract your customers)
• Pricing Strategy
• Promotional Strategy
• Marketing Channels

Operations Plan

Write how you will operate your store and include details about your manpower plan.

This will include the management that you will hire for the store, visual merchandisers, sales staff and cashiers.

Cover the following:

• Management structure (store manager, supervisor,..)
• Staff plan (3 sales associates, 2 cashiers, etc.)
• Brief role descriptions
• Compensation structure

Read Also: Retail Scheduling

RETAIL OPERATIONS MANAGEMENT

• Managing Store Operations
• Areas of Responsibility
• Assessing & Managing Performance

Financial plan

List estimates for the capital you will need to start and financial projections for the following years.

Capital Needed

Start with how much capital you will need to start the business

This will include:

• Initial rent
• Initial product order (Inventory)
• Initial staff salary
• Store fixtures
• Store equipment

Read Also: How Much Capital You Will Need For a New Retail Store?

Financial Projections

Include a 5-year financial projection for the business based on your forecasted sales and costs.

• Monthly income statement (P&L) for the first year
• Yearly income statement for the following 4 years
• Monthly cash flow projection for the first year

Learn how to create a sales budget for a new store, and 3 years financial projections in our Retail Budgeting Course

RETAIL BUDGETING & PLANNING

• The step by step retail budgeting process
• Set monthly targets adjusted to seasonality
• Templates download & practice exercise

Break Even Point

Include a snapshot of the 5-year P&L plan here and mention the SPD (sales per day) you need to breakeven, based on your P&L numbers.

We have created a sample table with retail data in the business plan template, and you can fill it with your own numbers.

Key Assumptions

Mention the assumptions you used for creating your financial projections.

For example , you assumed that sales per day for the first year will be 1000$ and then will grow by 20% in the second year, 15% in the third year and 10% in the fourth year, etc.

Retail Business Plan Tips

Sales projections.

We recommend being very realistic about your initial sales per day projections, as your entire financial plan will be directly affected by it.

When you then forecast your growth for the coming years, you should also be realistic about how much you will grow year-on-year.

From our experience, retail stores typically see higher growth after the first year and then this starts to level off from the third year onwards.

Having said that, there might be other growth drivers that can affect your business and accelerate your growth in the following years. This could be for example that your new store is in an area that is still under development and will be fully developed by the third year.

What we want to say is, do your due diligence thoroughly and based on that set realistic expectations.

Inventory Projections

The biggest asset you will hold and the biggest part of the investment/loan you will need to start your retail business will go for inventory.

So it is important to calculate your inventory needs correctly.

This will be based on your sales forecasts and the inventory turnover rate you expect or the forward stock cover you intend to maintain.

For example, if your inventory turnover target is 2, this means you maintain a 6 months cover. If your inventory turnover is 3, you maintain 4 months stock cover,..and so on.

We recommend checking out the benchmarks we have listed for different retail categories for inventory turnover and reading our complete Open to Buy guide to get started with calculating exactly how much inventory you will need.

Good luck in your new venture!

THE PROFESSIONAL RETAIL ACADEMY (PRA) ™

One Membership = Access to All Resources

More resources.

Thank you for reading this article on Retail Business Plan. We recommend the below free resources as well:

• Retail Management
• Starting a Retail Business
• Buying a Retail Business

Join the academy and get all access to all our resources, which will help you manage your retail business more efficiently.

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CONNECT THE DOTS

Learn how to manage a retail business end-to-end.

We’ve put together a curriculum, specifically designed for retail owners or retail professionals who want to advance into senior management roles.

Learn how to connect the dots of the business and take the basic knowledge to the next level of application . 

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated July 29, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan

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How To Write a Business Plan in 9 Steps (2024)

Business plans aren’t just for entrepreneurs who need to secure funding—they can help you plan and evaluate new ideas or growth plans, too. Find out how to write a business plan and get the most out of the process in this comprehensive guide.

A great business plan can help you clarify your strategy, identify potential roadblocks, determine necessary resources, and evaluate the viability of your idea and growth plan before you start a business .

Not every successful business launches with a formal business plan, but many founders find value in taking time to step back, research their idea and the market they’re looking to enter, and understand the scope and the strategy behind their tactics. That’s where writing a business plan comes in.

Learn how to write a business plan with a step-by-step guide, get tips for getting the most of your plan, and see real business plan examples to inspire you.

What is a business plan?

A business plan is a strategic document that outlines a company's goals, strategies for achieving them, and the time frame for their achievement. It covers aspects like market analysis , financial projections, and organizational structure, serving as a roadmap for business growth and a tool to secure funding.

Often, financial institutions and investors need to see a business plan before funding any project. Even if you don’t plan to seek outside funding, a well-crafted plan becomes the guidance for your business as it scales.

How to write a business plan in 9 steps

• Draft an executive summary.
• Write a company description.
• Perform a market analysis.
• Outline the management and organization.
• List your products and services.
• Perform customer segmentation.
• Define a marketing plan.
• Provide a logistics and operations plan.
• Make a financial plan.

Few things are more intimidating than a blank page. Starting your business plan with a structured outline and key elements for what you’ll include in each section is the best first step you can take.

Since an outline is such an important step in the process of writing a business plan, we’ve put together a high-level overview to get you started (and avoid the terror of facing a blank page).

Once you have your business plan template in place, it’s time to fill it in. We’ve broken it down by section to help you build your plan step by step.

1. Draft an executive summary.

A good executive summary is one of the most crucial sections of your plan—it’s also the last section you should write.

The executive summary distills everything that follows and gives time-crunched reviewers (e.g., potential investors and lenders) a high-level overview of your business that persuades them to read further.

Again, it’s a summary, so highlight the key points you’ve uncovered while writing your plan. If you’re writing for your own planning purposes, you can skip the summary altogether—although you might want to give it a try anyway, just for practice.

An executive summary shouldn’t exceed one page. Admittedly, that space constraint can make squeezing in all of the salient information a bit stressful—but it’s not impossible. Your business plan’s executive summary should include:

• Business concept. What does your business do?
• Business goals and vision. What does your business want to do?
• Product description and differentiation. What do you sell, and why is it different?
• Target market. Who do you sell to?
• Marketing strategy. How do you plan on reaching your customers?
• Current financial state. What do you currently earn in revenue?
• Projected financial state. What do you foresee earning in revenue?
• The ask. How much money are you asking for?
• The team. Who’s involved in the business?

2. Write a company description.

This section of your business plan should answer two fundamental questions: who are you, and what do you plan to do? 

Answering these questions with a company description provides an introduction to why you’re in business, why you’re different, what you have going for you, and why you’re a good investment. 

For example, clean makeup brand Saie shares a letter from its founder on the company’s mission and why it exists.

Clarifying these details is still a useful exercise, even if you’re the only person who’s going to see them. It’s an opportunity to put to paper some of the more intangible facets of your business, like your principles, ideals, and cultural philosophies.

Here are some of the components you should include in your company description:

• Your business structure (Are you a sole proprietorship, general partnership, limited partnership, or incorporated company?)
• Your business model
• Your industry
• Your business’s vision, mission, and value proposition
• Background information on your business or its history
• Business objectives, both short and long term
• Your team, including key personnel and their salaries

Brand values and goals

To define your brand values , think about all the people your company is accountable to, including owners, employees, suppliers, customers, and investors. Now consider how you’d like to conduct business with each of them. As you make a list, your core values should start to emerge.

Your company description should also include both short- and long-term goals. Short-term goals, generally, should be achievable within the next year, while one to five years is a good window for long-term goals. Make sure your goal setting includes SMART goals : specific, measurable, attainable, realistic, and time-bound.

Vision and mission statements

Once you know your values, you can write a mission statement . Your statement should explain, in a convincing manner, why your business exists, and should be no longer than a single sentence.

Next, craft your vision statement : What impact do you envision your business having on the world once you’ve achieved your vision? Phrase this impact as an assertion—begin the statement with “We will” and you’ll be off to a great start. Your vision statement, unlike your mission statement, can be longer than a single sentence, but try to keep it to three at most. The best vision statements are concise.

3. Perform a market analysis.

No matter what type of business you start, it’s no exaggeration to say your market can make or break it. Choose the right market for your products—one with plenty of customers who understand and need your product—and you’ll have a head start on success. If you choose the wrong market, or the right market at the wrong time, you may find yourself struggling for each sale.

Market analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it.

This is why market research and analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it. It should include an overview of how big you estimate the market is for your products, an analysis of your business’s position in the market, and an overview of the competitive landscape. Thorough research supporting your conclusions is important both to persuade investors and to validate your own assumptions as you work through your plan.

Here is an example to illustrate how to approach this section:

How big is your potential market?

The potential market is an estimate of how many people need your product. While it’s exciting to imagine sky-high sales figures, you’ll want to use as much relevant independent data as possible to validate your estimated potential market.

Since this can be a daunting process, here are some general tips to help you begin your research:

• Understand your ideal customer profile. Look for government data about the size of your target market , learn where they live, what social channels they use, and their shopping habits.
• Research relevant industry trends and trajectory. Explore consumer trends and product trends in your industry by looking at Google Trends, trade publications, and influencers in the space.
• Make informed guesses. You’ll never have perfect, complete information about your total addressable market. Your goal is to base your estimates on as many verifiable data points as necessary.

Some sources to consult for market data include government statistics offices, industry associations, academic research, and respected news outlets covering your industry.

Read more: What is a Marketing Analysis? 3 Steps Every Business Should Follow

SWOT analysis

A SWOT analysis looks at your strengths, weaknesses, opportunities, and threats. What are the best things about your company? What are you not so good at? What market or industry shifts can you take advantage of and turn into opportunities? Are there external factors threatening your ability to succeed?

SWOT is often depicted in a grid or visual way. With this visual presentation, your reader can quickly see the factors that may impact your business and determine your competitive advantage in the market.

Competitive analysis

There are three overarching factors you can use to differentiate your business in the face of competition:

• Cost leadership. You have the capacity to maximize profits by offering lower prices than the majority of your competitors. Examples include companies like Mejuri and Endy .
• Differentiation. Your product or service offers something distinct from the current cost leaders in your industry and banks on standing out based on your uniqueness. Think of companies like Knix and QALO .
• Segmentation. You focus on a very specific, or niche, target market, and aim to build traction with a smaller audience before moving on to a broader market. Companies like TomboyX and Heyday Footwear are great examples of this strategy.

To understand which is the best fit, you’ll need to understand your business as well as the competitive landscape.

You’ll always have competition in the market, even with an innovative product, so it’s important to include a competitive overview in your business plan. If you’re entering an established market, include a list of a few companies you consider direct competitors and explain how you plan to differentiate your products and business from theirs.

For example, if you’re selling jewelry , your competitive differentiation could be that, unlike many high-end competitors, you donate a percentage of your profits to a notable charity or pass savings on to your customers.

If you’re entering a market where you can’t easily identify direct competitors, consider your indirect competitors—companies offering products that are substitutes for yours. For example, if you’re selling an innovative new piece of kitchen equipment, it’s too easy to say that because your product is new, you have no competition. Consider what your potential customers are doing to solve the same problems.

4. Outline the management and organization.

If you have a management team, use an organizational chart to show your company’s internal structure, including the roles, responsibilities, and relationships between people in your chart. Communicate how each person will contribute to the success of your startup.

5. List your products and services.

Your products or services will feature prominently in most areas of your business plan, but it’s important to provide a section that outlines key details about them for interested readers.

If you sell many items, you can include more general information on each of your product lines. If you only sell a few, provide additional information on each. For example, bag shop BAGGU sells a large selection of different types of bags, in addition to home goods and other accessories. Its business plan would list out those categories and key details about the products within each.

Describe new products you’ll launch in the near future and any intellectual property you own. Express how they’ll improve profitability. It’s also important to note where products are coming from—handmade crafts are sourced differently than trending products for a dropshipping business, for instance.

6. Perform customer segmentation.

To give a holistic overview of your ideal customer, describe a number of general and specific demographic characteristics. Customer segmentation often includes:

• Where they live.
• Their age range.
• Their level of education.
• Some common behavior patterns.
• How they spend their free time.
• Where they work.
• What technology they use.
• How much they earn.
• Where they’re commonly employed.
• Their values, beliefs, or opinions.

This information will vary based on what you’re selling, but you should be specific enough that it’s unquestionably clear who you’re trying to reach—and more importantly, why you’ve made the choices you have based on who your customers are and what they value.

For example, a college student has different interests, shopping habits, and pricing sensitivity than a 50-year-old executive at a Fortune 500 company. Your business plan and decisions would look very different based on which one was your ideal customer.

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7. Define a marketing plan.

If you’re planning to invest heavily in Instagram marketing or TikTok ads , for example, it might make sense to include whether Instagram and TikTok are a leading platform for your audience—if it’s not, that might be a sign to rethink your marketing plan.

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Most marketing plans include information on four key subjects. How much detail you present on each will depend on both your business and your plan’s audience.

• Price:  How much do your products cost, and why have you made that decision?
• Product:  What are you selling and how do you differentiate it in the market?
• Promotion:  How will you get your products in front of your ideal customer?
• Place:  Where will you sell your products? On what channels and in which markets?

Promotion may be the bulk of your plan since you can more readily dive into tactical details, but the other three areas should be covered at least briefly—each is an important strategic lever in your marketing mix.

Here is an example of a marketing plan for a new business:

8. Provide a logistics and operations plan.

Logistics and operations are the workflows you’ll implement to make your business idea a reality. If you’re writing a business plan for your own planning purposes, this is still an important section to consider, even though you might not need to include the same level of detail as if you were seeking investment.

Cover all parts of your planned operations, including:

• Suppliers . Where do you get the raw materials you need for production, or where are your products produced?
• Production . Will you make, manufacture, wholesale , or dropship your products? How long does it take to produce your products and get them shipped to you? How will you handle a busy season or an unexpected spike in demand?
• Facilities . Where will you and any team members work? Do you plan to have a physical retail space? If yes, where?
• Equipment . What tools and technology do you require to be up and running? This includes everything from computers to lightbulbs and everything in between.
• Shipping and fulfillment. Will you be handling all the fulfillment tasks in-house, or will you use a third-party fulfillment partner?
• Inventory . How much will you keep on hand, and where will it be stored? How will you ship it to partners if required, and how will you approach inventory management ?

This section should signal to your reader that you’ve got a solid understanding of your supply chain and strong contingency plans in place to cover potential uncertainty. If your reader is you, it should give you a basis to make other important decisions, like how to price your products to cover your estimated costs, and at what point you plan to break even on your initial spending.

9. Make a financial plan.

The level of detail required in your financial plan will depend on your audience and goals, but typically you’ll want to include three major views of your financials: an income statement, a balance sheet, and a cash-flow statement. It also may be appropriate to include financial data and projections.

Here’s a spreadsheet template that includes everything you’ll need to create an income statement, balance sheet, and cash-flow statement, including some sample numbers. You can edit it to reflect projections if needed.

Let’s review the types of financial statements you’ll need.

Income statements

Your income statement is designed to give readers a look at your revenue sources and expenses over a given time period. With those two pieces of information, they can see the all-important bottom line or the profit or loss your business experienced during that time. If you haven’t launched your business yet, you can project future milestones of the same information.

Balance sheets

Your balance sheet offers a look at how much equity you have in your business. On one side, you list all your business assets (what you own), and on the other side, all your liabilities (what you owe). This provides a snapshot of your business’s shareholder equity, which is calculated as:

Assets - Liabilities = Equity

Cash flow statements

Your cash flow statement is similar to your income statement, with one important difference: it takes into account when revenues are collected and when expenses are paid.

When the cash you have coming in is greater than the cash you have going out, your cash flow is positive. When the opposite scenario is true, your cash flow is negative. Ideally, your cash flow statement will help you see when cash is low, when you might have a surplus, and where you might need to have a contingency plan to access funding to keep your business solvent .

It can be especially helpful to forecast your cash-flow statement to identify gaps or negative cash flow and adjust operations as required.

📚 Read more: What Is Cash Flow Management: Template and Examples

Why write a business plan?

Investors rely on business plans to evaluate the feasibility of a business before funding it, which is why business plans are commonly associated with getting a loan. 

Business plans also help owners identify areas of weakness before launching, potentially avoiding costly mistakes down the road. “Laying out a business plan helped us identify the ‘unknowns’ and made it easier to spot the gaps where we’d need help or, at the very least, to skill up ourselves,” says Jordan Barnett, owner of Kapow Meggings .

There are several other compelling reasons to consider writing a business plan, including:

• Strategic planning. Writing out your plan is an invaluable exercise for clarifying your ideas and can help you understand the scope of your business, as well as the amount of time, money, and resources you’ll need to get started.
• Evaluating ideas. If you’ve got multiple ideas in mind, a rough business plan for each can help you focus your time and energy on the ones with the highest chance of success.
• Research. To write a business plan, you’ll need to research your ideal customer and your competitors—information that will help you make more strategic decisions.
• Recruiting. Your business plan is one of the easiest ways to communicate your vision to potential new hires and can help build their confidence in the venture, especially if you’re in the early stages of growth.
• Partnerships. If you plan to collaborate with other brands , having a clear overview of your vision, your audience, and your business strategy will make it much easier for them to identify if your business is a good fit for theirs.
• Competitions. There are many business plan competitions offering prizes such as mentorships, grants, or investment capital. 

If you’re looking for a structured way to lay out your thoughts and ideas, and to share those ideas with people who can have a big impact on your success, a business plan is an excellent starting point.

Business plan types

Business plan types can span from one page to multiple pages with detailed graphs and reports. There’s no one way to create a business plan. The goal is to convey the most important information about your company for readers.

Common business plans we see include, but are not limited to, the following types:

Traditional business plans

These are the most common business plans. Traditional business plans take longer to write and can be dozens of pages long. Venture capitalist firms and lenders ask for this plan. Traditional business plans may not be necessary if you don’t plan to seek outside funding. That’s where the next type comes in.

Lean business plans

A lean business plan is a shorter version of a traditional business plan. It follows the same format, but only includes the most important information. Businesses use lean business plans to onboard new hires or modify existing plans for a specific target market.

Nonprofit business plans

A nonprofit business plan is for any entity that operates for public or social benefit. It covers everything you’ll find in a traditional business plan, plus a section describing the impact the company plans to make. For example, a speaker and headphone brand that aims to help people with hearing disabilities. Donors often request this plan.

📚 Read more: The Road to Success: Business Plan Examples to Inspire Your Own .

7 tips for creating a small business plan

There are a few best practices when it comes to writing a business plan. While your plan will be unique to your business and goals, keep these tips in mind as you write.

1. Know your audience.

When you know who will be reading your plan—even if you’re just writing it for yourself to clarify your ideas—you can tailor the language and level of detail to them. This can also help you make sure you’re including the most relevant information and figure out when to omit sections that aren’t as impactful.

2. Have a clear goal.

When creating a business plan, you’ll need to put in more work and deliver a more thorough plan if your goal is to secure funding for your business versus working through a plan for yourself or even your team.

3. Invest time in research.

Sections of your business plan will primarily be informed by your ideas and vision, but some of the most crucial information you’ll need requires research from independent sources. This is where you can invest time in understanding who you’re selling to, whether there’s demand for your products, and who else is selling similar products or services.

4. Keep it short and to the point.

No matter who you’re writing for, your business plan should be short and readable—generally no longer than 15 to 20 pages. If you do have additional documents you think may be valuable to your audience and your goals, consider adding them as appendices.

5. Keep the tone, style, and voice consistent.

This is best managed by having a single person write the plan or by allowing time for the plan to be properly edited before distributing it.

6. Use a business plan template.

You can also use a free business plan template to provide a skeleton for writing a plan. These often guide you through each section from financial projects to market research to mission statement ensuring you don’t miss a step.

7. Try business plan software.

Writing a business plan isn’t the easiest task for business owners. But it’s important for anyone starting or expanding a business. Fortunately, there are tools to help with everything from planning, drafting, creating graphics, syncing financial data, and more. Business plan software also has business plan templates and tutorials to help you finish a comprehensive plan in hours, rather than days.

A few curated picks include:

• LivePlan : the most affordable option with samples and templates
• Bizplan : tailored for startups seeking investment
• Go Small Biz : budget-friendly option with industry-specific templates

📚 Read more: 6 Best Business Plan Software to Help Write Your Future

Common mistakes when writing a business plan

Other articles on business plans would never tell you what we’re about to tell you: Your business plan can fail. The last thing you want is for time and effort to go down the drain. Avoid these common mistakes:

• Bad business idea. Sometimes your idea may be too risky for potential investors, too expensive to run, or there’s no market. Aim for small business ideas that require low startup costs.
• No exit strategy. If you don’t show an exit strategy, or a plan for investors to leave the business with maximum profits, you’ll have little luck finding capital.
• Unbalanced teams. A great product is the cost of entry to starting a business. But an incredible team will take it to the top. Unfortunately, many business owners overlook a balanced team. They focus on potential profits, without worrying about how it will be done. 
• Missing financial projections. Don’t leave out your balance sheet, cash flow statements, P&L statements, and income statements. Include your break-even analysis and return-on-investment calculations in your financial projections to create a successful business plan.
• Spelling and grammar errors. All the best organizations have an editor review their documents. If someone spots typos while reading your business plan, how can they believe you’ll run a successful company?

Prepare your business plan today

Whether you’re working on starting a new online business idea , building a retail storefront, growing your established business, or purchasing an existing business , you now understand how to write a business plan that suits your business’s goals and needs.

Feature illustration by Rachel Tunstall

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Business plan FAQ

How do i write a business plan.

Learning how to write a business plan is simple if you use a business plan template or business plan software. Typically, a traditional business plan for every new business should have the following components :

• Executive summary
• Company description, including value proposition
• Market analysis and competitive analysis
• Management and organization
• Products and services
• Customer segmentation
• Marketing plan
• Logistics and operations
• Financial plan and financial projections

What is a good business plan?

A good business plan starts with a strong executive summary. It also adequately outlines idea feasibility, target market insights, and the competitive landscape. A business plan template can help businesses be sure to follow the typical format of traditional business plans which include financial projections, details about the management team, and other key elements that venture capital firms and potential investors want to see.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are: 

• To clarify your plans for growth
• To understand your financial needs
• To attract funding from investors or secure a business loan

What are the different types of business plans?

The types of business plans include startup, refocusing, internal, annual, strategic, feasibility, operations, growth, and scenario-based. Each type of business plan has a different purpose. Business plan formats include traditional, lean, and nonprofit. Find a business plan template for the type of plan you want to write.

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Retail Store Business Plan: The Definitive Guide for Entrepreneurs

A Retail Store Business Plan acts as a strategic blueprint for entrepreneurs to launch and grow their store. It outlines key elements like market research, inventory, and financial projections.

Crafting a retail store business plan is a crucial step for aspiring entrepreneurs aiming to establish a successful storefront. With rigorous competition in the retail sector, it’s essential to devise a structured, clear-cut strategy to stand out and attract customers.

The plan should encapsulate your business goals, target audience, and the unique selling proposition that differentiates your store from others. It serves as a roadmap, guiding every decision from location selection to marketing tactics and staff management. By setting a solid foundation with a well-researched business plan, entrepreneurs lay the groundwork for financial health, operational efficiency, and sustainable growth in the retail industry. This detailed guide will walk you through each critical aspect of creating a robust business plan, ensuring you’re prepared for the challenges of retail entrepreneurship.

Understanding The Retail Industry

Embarking on a retail business venture requires a clear understanding of the ever-evolving retail landscape. Discovering the nuances of this vibrant industry is pivotal to crafting a business plan that withstands the test of time and shifts in consumer behavior. Entrepreneurs must not only keep a finger on the pulse of the current market but also identify and adapt to emerging trends and address the sector’s inherent challenges to thrive.

Current state of the retail market

Current State Of The Retail Market

Trends and challenges in the retail sector

Trends And Challenges In The Retail Sector

Market Analysis For Retail Store Business Plan

Creating a retail store business plan involves a deep dive into market analysis, giving entrepreneurs the insights they need to position their store for success. By understanding the landscape, your store can stand out in a competitive market. Essential components of this analysis are target audience insights and competitor benchmarking, the foundations for establishing a strong market presence.

Target audience and customer demographics

Target Audience And Customer Demographics

Identifying your target audience is critical for the success of your retail business. A thorough demographic analysis provides the scaffolding for product selection, marketing strategies, and customer service models. It’s essential to hone in on the specific characteristics of your potential customers.

• Age: What age range does your product appeal to?
• Gender: Is there a particular gender that is more likely to shop at your store?
• Income Level: What is the average income of your target customers?
• Location: Where do they live, and how does the geography affect purchasing habits?
• Lifestyle: What are their interests, hobbies, and values?
• Shopping Behavior: How often do they purchase products similar to yours?

Competitor analysis and market positioning

Competitor Analysis And Market Positioning

Understanding competitive dynamics is indispensable for market positioning. It’s not enough to know who your competitors are; understanding their strategies, strengths, and weaknesses can reveal opportunities for differentiation.

Charting where your retail business stands among the competition involves being meticulous about details while being strategic. By carefully crafting your market positioning, you can create a value proposition that resonates with customers and propels you above the competition.

Crafting A Solid Retail Store Business Plan

Embark on your entrepreneurial journey with confidence using our comprehensive Retail Store Business Plan Guide. Tailored for go-getters eager to master the complexities of retail, this roadmap offers actionable insights to create a robust, profitable business strategy.

Identifying A Unique Selling Proposition

One of the first steps in creating a retail business plan is to identify what makes your store different. The unique selling proposition (USP) sets a business apart from competitors and attracts customers. A strong USP should be:

• Memorable : It needs to stick in the mind of the consumer.
• Appealing : It must resonate with the target audience’s desires or solve a specific problem.
• Sustainable : The USP should remain relevant as the business grows.

Strategies For Product Sourcing And Inventory Management

Financial Projections And Funding Strategy

Crafting a retail store business plan necessitates a thorough forecast of financial outcomes and a solid approach to securing investment. Entrepreneurs can optimize their venture’s viability by meticulously planning these critical components, setting a firm foundation for success.

Budgeting And Financial Forecasting For A Retail Store

The backbone of any retail store’s success lies in meticulous budgeting and accurate financial forecasting. A carefully laid out budget serves as a roadmap, guiding the strategic allocation of funds, and ensuring financial sustainability. To craft a comprehensive budgeting strategy:

• Determine Start-Up Costs: Compile all initial expenses ranging from real estate, inventory purchases, to equipment and marketing.
• Estimate Operating Expenses: Include monthly recurring costs such as rent, utilities, payroll, and marketing.
• Project Revenues: Based on market analysis, estimate conservatively your weekly, monthly, and yearly sales.
• Analyze Cash Flow: Ensure you have enough liquidity for smooth operations. Anticipate moments where expenses may exceed income and plan accordingly.
• Break-Even Analysis: Identify the point at which your store’s revenue will cover its expenses, signaling the start of profitability.

Financial forecasting extends beyond the opening phase, providing projections for growth and scalability. Utilizing tools such as spreadsheet software can aid in managing these numbers effectively, with the ability to adjust for market fluctuations.

Funding Options And Investment Considerations

Securing funding is a crucial step in realizing your retail store’s ambitions. When investigating funding options, it is important to weigh the benefits and implications of each source. To streamline the selection process:

• Self-Financing: Evaluate personal savings and assets. Self-funding offers full control but may carry personal financial risks.
• Loans: Banks and credit unions offer various loan products. Prepare a compelling business plan and maintain a strong credit score for eligibility.
• Angel Investors: These are individuals willing to invest in promising start-ups in exchange for equity. A solid pitch and growth potential are key.
• Venture Capital: If scaling rapidly is on the horizon, venture capitalists could provide significant funding, though often at the cost of influential shares in the business.
• Grants and Crowdfunding: Government grants or crowdfunding campaigns are alternative options that can offer access to funds without the need to repay or relinquish equity.

Analyze the implications of each funding route on your business’s financial future and control. Consulting with a financial advisor can provide critical insights into the risks and rewards associated with each option, ensuring that the chosen strategy aligns with the business’s long-term objectives.

Marketing And Branding Strategy

Crafting a retail store business plan demands a strategic approach to marketing and branding. Entrepreneurs must embrace innovative tactics to differentiate their storefronts in a competitive marketplace.

Creating An Effective Brand Identity

• Define your mission and values: Ensure your brand identity aligns with the core principles and message of your business.
• Design cohesive visual elements: Develop a consistent set of design elements, like logos, typefaces, and colors, that reflect your brand’s personality.
• Deliver a consistent brand message: Regularly communicate your brand’s key messages across all channels to create a memorable and dependable brand experience.

Implementing Omnichannel Marketing Tactics For Retail Stores

• Understanding your audience: Gather data on your target consumers’ shopping habits and preferences.
• Engaging shoppers across platforms: Utilize both digital and physical channels to interact with customers at various touchpoints.
• Personalizing the customer experience: Offer tailored recommendations and services based on individual consumer behaviors and histories.

Frequently Asked Questions For Retail Store Business Plan: The Definitive Guide For Entrepreneurs

How do i write a business plan for a small retail store.

Begin with an executive summary outlining your mission, vision, and core values. Detail your target market, merchandise, and supplier information. Include marketing, operational plans, and financial projections . Ensure your plan is clear, concise, and reflects your store’s unique selling proposition.

What Are The 7 Steps Of A Business Plan?

The seven steps of a business plan include: 1. Executive Summary 2. Company Description 3. Market Analysis 4. Organization and Management 5. Sales Strategies 6. Funding Requirements 7. Financial Projections

How Do I Run A Successful Retail Store?

To run a successful retail store, offer exceptional customer service and high-quality products. Maintain a clean, organized store layout. Use strategic pricing and hold regular promotions. Train staff effectively and embrace digital marketing to reach more customers. Monitor inventory and financials closely.

What Is Included In A Retail Business Plan?

A retail business plan typically includes an executive summary, market analysis, company description, organization and management structure, marketing and sales strategies, product line or services offered, funding requests, financial projections, and an appendix.

Crafting a robust retail store business plan is your blueprint to success. Equip yourself with this guide’s insights and outline every crucial detail. Remember, thorough planning sets the stage for your entrepreneurial triumphs. Embrace the journey ahead, stay adaptable, and watch your retail dreams take flight.

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•   BASIC  –  $109.95 Version 7.3
•   PDF Demo Versions  –  $0.00 Version 7.3

Private Equity Fund Model (Investor Cashflows)

Private Equity Financial Model to analyze fund cashflows and returns available to Limited Partners (Investors) and General Partner (Investment Manager... read more

•   PDF Demo version  –  $0.00 Version 1
•   American Waterfall  –  $155.00 Version 2
•   European Waterfall  –  $115.00 Version 2

Hotel Investment Financial Model

The Hotel Investment Financial Model provides a framework to forecast the expected cash flows for a hotel investment and calculates the relevant inves... read more

•   FULL Version (Excel)  –  $34.95
•   FREE Version (PDF)  –  $0.00

Coffee Shop Financial Model Excel Template

Download Coffee Shop Financial Model Template. Allows you to start planning with no fuss and maximum of help Highly versatile and user-fri... read more

•   Excel - Multi-User  –  $129.00 Version 1
•   Excel - Single-User  –  $99.00 Version 1
•   Free Demo  –  $0.00 Version 1

Pharma Biotech Valuation Model Template (Risk-Adjusted)

The Pharma Biotech Valuation Model Template calculates the risk-adjusted DCF Value of a Pharma or Biotech Startup Company with several products under ... read more

•   Full Excel Model - PREMIUM  –  $199.95 Version 2.2
•   Full Excel Model - BASIC  –  $149.95 Version 2.2
•   PDF Demo Previews  –  $0.00 Version 2.2

SaaS Business Financial Model

The SaaS Business financial model offers valuable assistance in preparing a budget and multi-year financial plan for a Software as a Service (SaaS) bu... read more

•   Premium Excel Model  –  $199.95 Version 8.1
•   Pro Excel Model  –  $149.95 Version 8.1
•   Basic Excel Model  –  $99.95 Version 8.1
•   PDF Demo  –  $0.00 Version 8.1

Discounted Cash Flow Valuation Model: Free Excel Template

This Discounted Cash Flow (DCF) valuation calculator template projects a three-statement model that allows users to value a company based on the net p... read more

•   Basic Version  –  $0.00 Version 4.4
•   Advance Version  –  $0.00 Version 4.4

Google Sheets Project Plan Template

This Project Plan Template in Google Sheet allows you to quickly develop a project plan and plot a Gantt chart. Enjoy all the benefits of Google Docs ... read more

Commercial Real Estate Valuation Model Template

A commercial real estate valuation model template assists in running a professional DCF Valuation for a commercial property such as an office building... read more

•   PDF Demo Versions  –  $0.00 Version 1
•   BASIC Excel Model Template  –  $59.00 Version 1
•   PRO Excel Model Template  –  $99.00 Version 1
•   PREMIUM Excel MODEL + Report Template  –  $199.00 Version 1

Private School Financial Model

This is a financial model template for a new private school startup business. The Excel model allows forecasting the cash flows over the next 10 years... read more

•   Excel Model  –  $44.95 Version 9.1
•   PDF Demo  –  $0.00 Version 9.0

Upstream Oil & Gas Project Analysis

The Upstream Oil & Gas Project Financial Model Template in Excel empowers you to project and dissect your impending Oil and Gas drilling ventures. Pre... read more

•   Pro - Full Excel Model  –  $159.95 Version 8.3
•   Basic - Full Excel Model  –  $119.95 Version 8.3
•   PDF Demo Versions  –  $0.00 Version 8.3

Manufacturing Company Financial Model

The Manufacturing Financial Model provides a framework to accurately forecast the financial statements of a manufacturing company over the next 10 yea... read more

•   Excel Model  –  $44.95 Version 4
•   PDF Demo  –  $0.00 Version 4

Hotel Financial Model Excel Template

Download Hotel Financial Model. Creates a financial summary formatted for your Pitch Deck. Ready to Raise Capital. The hotel excel financial... read more

Wind Energy Farm Financial Model

The Wind Energy Financial Model forecasts the expected financials for a Wind Park project and calculates the project's IRR and NPV.

•   PDF Demo - Basic  –  $0.00 Version 3
•   PDF Demo - Pro  –  $0.00 Version 3
•   Full Excel Model - Basic  –  $64.95 Version 3
•   Full Excel Model - Pro  –  $79.95 Version 3

Three Statement Model

The three statement model provides a simple template in Excel to forecast the three financial statements over the next 5 years: Income Statement, Bala... read more

Grocery Store Financial Model Excel Template

Try Grocery Store Financial Projection. Creates 5-year Pro-forma financial statements, and financial ratios in GAAP or IFRS formats on the f... read more

Waterfall Profit Distribution Model (up to 4 Tiers)

We are introducing our 4-Tier Waterfall Profit Distribution Model. The waterfall profit distribution model template aims to support a thorough analysi... read more

•   Full Excel Model  –  $79.95 Version 2.1
•   PDF Demo  –  $0.00 Version 2.1

Advanced Financial Model with DCF & Valuation

Dynamic Financial Planning & Analysis Model providing up to 10 Years of Financial Projections.

•   Excel Financial Model  –  $129.00 Version 1
•   PDF Free Demo  –  $0.00 Version 1

Gasoline and EV Charging Station Financial Model

Investors can assess the viability of setting up and investing in gasoline stations with a charging station by downloading a financial model for their... read more

•   Premium Excel Version  –  $129.95 Version 2.1
•   Basic Excel Version  –  $99.95 Version 2.1
•   PDF Versions  –  $0.00 Version 2.1

Airbnb Financial Model

Air BnB Financial Model Template presents the business case of the purchase of up to 5 properties with the intent of utilizing them as short term rent... read more

•   Excel Model  –  $119.00 Version 1
•   Free PDF  –  $0.00 Version 1

Simple Cap Table Template – Free Download

This is a simple capitalization (cap) table template which allows entrepreneurs to understand the dilution effect of capital raisings and a simple sto... read more

Fitness Center 10 Year Financial Model

Key logic designed to forecast cash flow up to 10 years for a fitness center that has recurring monthly fees. Fully integrated 3-statement model, cap ... read more

Lending Platform Financial Model (LaaS)

Includes all the assumptions you need to project the gross revenues and profits of a LaaS platform (Lending as a Service). 3-statement model and cap t... read more

•   Excel Model  –  $75.00 Version 3

Green Hydrogen (Simple Electrolysis Financial Model)

The Model Incorporates data provided by different available sources to Model an Electrolysis financial model. It includes Electrolyzer cost, Dispenser... read more

•   Excel Template  –  $150.00 Version 1
•   Free Version  –  $0.00 Version 1

Outpatient Clinic Financial Model Excel Template

Shop Outpatient Clinic Financial Model Template. Enhance your pitches and impress potential investors with the expected financial metrics. A sop... read more

•   Excel - Multi-User  –  $129.00
•   Excel - Single-User  –  $99.00
•   Free Demo  –  $0.00

Gold Mine Investment Model

The Gold Mine Investment Model is used to determine the financial feasibility of a proposed Gold Mine Investment. The Financial Model outputs IRR and ... read more

•   Excel Financial Model  –  $44.95 Version 6.2
•   PDF Demo  –  $0.00 Version 6.2

All My Financial Models, Spreadsheets, Templates, and Tools: 120+

Lifetime access to all future templates as well! Here is a set of spreadsheets that have some of the most valuable logic in the world. I have been thr... read more

•   All My Excel Tools  –  $999.00 Version 1

Beverage Manufacturing Start-up Financial Model

The beverage manufacturing industry is a dynamic and rapidly growing sector that caters to a diverse market ranging from soft drinks and juices to alc... read more

•   Excel Model  –  $199.95 Version 5.2
•   PDF Demo  –  $0.00 Version 5.2

Bakery Financial Model Excel Template

Shop Bakery Budget Template. Solid package of print-ready reports, including P&L and cash flow statements, and a complete set of financial r... read more

Cafe Financial Model Excel Template

Check Our Cafe Budget Template. Creates a financial summary formatted for your Pitch Deck. Ready to Raise Capital. Creates 5-year cafe financial model... read more

Authority Matrix Template

Authorities and Responsibilities Matrices are considered important to organizations due to their role in identifying and documenting decisions that ar... read more

•   Excel Version  –  $35.00
•   PPT Version  –  $0.00

Airport Operator Financial Model

Airport Operator Financial Model presents the business case of an already operating airport (with planned refurbishments) and an investment in a new t... read more

•   Excel Model  –  $119.00
•   Free PDF  –  $0.00

Biogas Financial Model

The Biogas Financial Model forecasts the expected financials for a Biogas plant project and calculates the IRR and NPV values for the project.

•   FREE PDF  –  $0.00 Version 1
•   Excel Model  –  $39.95 Version 2

Due Diligence P&L – Exhaustive Revenue and Costs Analysis Template

Model for in depth understanding of high level profit and loss and revenue analysis. Big-4 like checklist of due diligence analyses. This Financial Du... read more

Rental Property Financial Model

The rental property financial model calculates the homeowner's IRR and long it takes to repay a mortgage when the property is rented. The financial... read more

Online Clothing Store Financial Model Excel Template

Impress bankers and investors with a proven, solid Online Clothing Store Financial Projection Template. Five year online clothing store cash... read more

Poultry Farm Financial Model Excel Template

Shop Poultry Farm Budget Template. Excel template - robust and powerful. This is your solid foundation to plan your business model. Five-year ho... read more

Hair Salon Financial Plan | Beauty Salon Business Plan

Plan out the financial plan your hair or beauty salon. The beauty & hair salon business plan goes up to 10 years and has plenty of granularity.

Startup Company Financial Model – 5 Year Financial Forecast

Highly-sophisticated and user-friendly financial model for Startup Companies providing a 5-Year advanced financial forecast.

•   Financial Model - Light Version  –  $119.00 Version 1
•   Financial Model - Standard Version  –  $159.00 Version 1
•   Financial Model - Premium Version  –  $219.00 Version 1

Clothing Store Financial Model Excel Template

Get Your Clothing Store Budget Template. Creates 5-year Pro-forma financial statements, and financial ratios in GAAP or IFRS formats on the fly. Five-... read more

Financial model for FMCG

The FMCG Financial Model provides a framework to accurately forecast the financial statements of a FMCG company over the next 8 years. The model uses ... read more

•   PDF Demo Version  –  $0.00
•   Excel Model  –  $25.00

IRR Project Finance Analysis

The IRR Project Finance Analysis forecasts the expected financials for a greenfield project and calculates the levered and unlevered Internal Rate of ... read more

Hotel Valuation Financial Model

The Hotel Valuation Financial Model provides a simple way to forecast the expected cash flows for a hotel investment and calculates the relevant inves... read more

•   Excel Model  –  $44.95 Version 6.1
•   PDF Demo  –  $0.00 Version 6.1

Consolidated Financial Statements

The purpose of this model is to provide a simple way to see the financial statements for many companies in i file

•   Excel Version  –  $30.00 Version 2
•   Free Version  –  $0.00 Version 2

Start Up Car Park Excel Model and Valuation

This detailed, yet easy to use three statement financial model will allow you to calculate your business' profit and loss, build a balance sheet and c... read more

•   Paid Excel Model  –  $69.00

NPV, IRR, & Payback Calculator

The template allows the user to calculate the net present value (NPV), internal rate of return (IRR) and payback period from simple cash flow stream w... read more

•   5 Yr Excel Version  –  $0.00 Version 1
•   10 Yr Excel Version  –  $0.00 Version 1

Green Hydrogen (Electrolysis) Production Financial Model

This green hydrogen financial model template builds a multi-year financial plan to analyze the financial feasibility and profitability for the product... read more

•   Full Excel Version  –  $119.00 Version 1.7
•   PDF Version  –  $0.00 Version 1.7

Waste to Energy Financial Model

The purpose of this financial model is to evaluate the financial feasibility of a waste to energy project such as e.g. a landfill gas plant. The model... read more

•   Excel FULL Version  –  $35.00
•   PDF Version  –  $0.00

Dental Practice Financial Model Excel Template

Check Dental Practice Financial Model. Fortunately, you can solve Cash Flow shortfalls with a bit of effort. A sophisticated 5 year dental p... read more

Real Estate Developer Model

This financial model can be used to evaluate the financial feasibility of a real estate development project and present it in investor grade quality t... read more

•   Excel Model  –  $49.95 Version 1.1
•   PDF Demo Version  –  $0.00 Version 1.1

Hospital Financial Model

Simply open the file in Excel

•   Full Version  –  $34.95
•   Free Version  –  $0.00

Simple Fundraising Model

This is a simple fundraising financial model template in Excel. Enter your business plan, calculate the amount of funding required and allocate the eq... read more

10 Year P&L, Balance Sheet, Cash Flow, and Break-even Analysis

This excel template is great for those wanting a professional-looking forecast 10 years of financial statements, those starting out as an entrepreneur... read more

•   PDF Demo  –  $0.00
•   Excel Model  –  $20.00

Financial Dashboard Excel Template

Set your KPI objectives and your month to month financial results and Financial Dashboard Excel Template will take care of creating the beautiful Grap... read more

•   Full Excel  –  $29.00

Budget to Actual Comparison

This monthly budget-to-actual dashboard allows for at-a-glance performance analysis. In addition to analyzing YTD performance, it also provides a revi... read more

•   Excel Model  –  $115.00 Version 1

Residual Land Value Calculation

The Residual Land Value Calculation model allows you to determine the value of a piece of land from a developer's point of view by analyzing how much ... read more

•   Yearly Model PDF Demo  –  $0.00 Version 4.1
•   Monthly Model PDF Demo  –  $0.00 Version 4.1
•   Monthly Model Excel Version  –  $69.90 Version 4.1
•   Yearly Model Excel Version  –  $35.00 Version 4.1

Real Estate Financial Model Templates Package

This is a collection of ready-made Excel financial model templates for real estate businesses and its related sectors.

•   Real Estate Package  –  $282.30 Version 1

Mixed-Use Real Estate Model: Leverage / JV Options

A general real estate model to plan all assumptions for up to 7 'uses' for a given property. Includes development / acquisition, leverage if desired, ... read more

•   EURO Currency Version  –  $75.00 Version 1
•   Unit-based Version  –  $75.00 Version 4
•   Square Foot-based Version  –  $75.00 Version 4

Poultry Project Financial Feasibility Model

This poultry financial model template in Excel provides a framework to determine the financial feasibility of a new poultry project for producing bro... read more

•   Pro Excel Version  –  $99.95 Version 1
•   Basic Excel Version  –  $79.95 Version 1
•   PDF Demo Version  –  $0.00 Version 1

Spa Financial Model Excel Template

Download Spa Financial Projection Template. This well-tested, robust, and powerful template is your solid foundation to plan a success. Creates ... read more

Digital Marketing Agency Financial Model Excel Template

Check Our Digital Marketing Agency Financial Projection Template. Excel Template for your pitch deck to convince Investors. Digital Marketing Ag... read more

Start Up Solar Farm Excel Model and Valuation

Start Up Solar Farm Excel Model presents the business case of an investment in the construction of a solar farm and the sale of the energy generated f... read more

Construction / Development Financial Model

Development & Construction Model presents the case where a property with multiple residential units is constructed and subsequently rented for sev... read more

•   Full Excel Model  –  $119.00
•   Free Demo PDF  –  $0.00

Nail Salon Financial Model Excel Template

Check Nail Salon Financial Model Template. Excel - well-tested, robust and powerful. Get you solid foundation to plan your business model. Five-year f... read more

Boutique Hotel Financial Model Excel Template

Check Our Boutique Hotel Financial Projection. Excel - well-tested, robust, and powerful. Get you a solid foundation to plan your business m... read more

Budget vs. Actual (Logistic Company)

The Budget vs. Actual financial model is used to measure actual results against the budget projected for the financial period.

•   PDF File  –  $0.00
•   Full Version  –  $55.00

Fintech Financial Model Excel Template

Try Fintech Financial Projection Template. Enhance your pitch decks and impress potential investors with a proven, strategy template. Five ... read more

Professional Financial Modeling Services – Profit Vision

Professional Financial Modeling - Tailor Made Services and assistance for your business needs.

•   Hourly Rate  –  $100.00 Version 1  x 
•   Daily Rate  –  $800.00 Version 1  x 

Multiple Loan Repayment Planning with Extra Principal Applied

Optimize where an extra principal payment should go and see the total cash flow savings when you have multiple loans.

Custom Financial Modeling Services / Assistance

Offering you with Custom financial modeling services or assistance by an experienced financial modeling team called Big4WallStreet.

•   1 Hour  –  $90.00  x 
•   4 Hours  –  $360.00  x 
•   8 Hours  –  $720.00  x 

Profit and Loss Statement Actual vs Budget & Previous Year

This model is profit and loss statement for general trading including comparison for the current month, year to date and full year

•   Paid Excel Version  –  $25.00

Restaurant Financial Model Excel Template

Get Your Restaurant Financial Model Template. Spend less time on Cash Flow forecasting and more time on your products. Restaurant Financial ... read more

Insurance Agency Financial Model Excel Template

Shop Insurance Agency Financial Plan. Fortunately, you can solve Cash Flow shortfalls with a bit of effort. Generates 5-year insurance agency ex... read more

Travel Agency Financial Model Excel Template

Shop Travel Agency Financial Projection Template. This well-tested, robust, and powerful template is your solid foundation to plan a success. A ... read more

Real Estate Brokerage Firm Financial Model Template

Financial model template for a high-level real estate brokerage firm that facilitates the buying and selling of real estate properties between buyers ... read more

•   Real Estate Financial Model - Full Version  –  $44.95
•   Real Estate Financial Model - PDF Demo  –  $0.00

Commercial Bank Financial Model

Commercial Banking Financial Model presents the case of a commercial bank with regulatory thresholds based on Basel 3. The model generates the three f... read more

•   Excel Model  –  $220.00

Car Rental Financial Model Excel Template

Order Car Rental Pro-forma Template. Simple-to-use yet very sophisticated planning tool. Get reliable results with minimal experience. Five-year car ... read more

•   Excel - Multi-User  –  $129.00 Version 1.1
•   Excel - Single-User  –  $99.00 Version 1.1
•   Free Demo  –  $0.00 Version 1.0

DCF Valuation Model Restaurant

The DCF Valuation Model for Restaurants provides a business plan in the form of an Excel Template to value a restaurant based on the Discounted Cash F... read more

•   Full Version  –  $34.95 Version 3
•   Lite Version  –  $0.00 Version 3
•   PDF Demo  –  $0.00 Version 3

Equipment Rental Cash Flow Model

Highly dynamic financial model that is specific to renting equipment out. High attention paid to the cash flows and timeliness of them so the user has... read more

•   Version 2  –  $75.00
•   10-Year Model  –  $75.00

Infrastructure Private Equity Wind Energy Modeling Test Solution (Associate level)

A self-made Modeling Test with a solution for Onshore Wind Turbines plant. The case study is in Chile assuming a 376 MW Capacity. The download include... read more

•   Free Version PDF  –  $0.00
•   Free Version PPT  –  $0.00
•   Excel Model  –  $30.00

Open Pit Mine Financial Model

Allow a potential miner to see visually and numerically (annual basis) what their possible financial position would look like when starting up an open... read more

•   Excel Model  –  $45.00 Version 4

Beauty Salon Financial Model Excel Template

Get Your Beauty Salon Financial Model Template. Creates 5-year financial projection and financial ratios in GAAP or IFRS formats on the fly. Creates 5... read more

Payroll Budget Plan Excel Template

A professional template to budget payroll expenses

•   Excel Template + PDF Guide  –  $20.00

Inventory Dashboard Model Template

!! Kindly use the latest Microsoft Excel Version before purchasing the model, otherwise, the dynamic dashboard will NOT work.!! Inventory Dashboard Mo... read more

•   Free PDF Demo  –  $0.00

Medical Practice Financial Model Excel Template

Check Our Medical Practice Financial Projection. Simple-to-use yet very sophisticated planning tool. Get reliable results with minimal exper... read more

Mergers & Acquisitions (M&A) Model

The Mergers & Acquisition (M&A) Model provides a projection for a company looking to potentially merge or acquire another company. This model runs... read more

•   Full Excel Version  –  $75.00 Version 1

Pizzeria Financial Model Excel Template

Get Your Pizzeria Budget Template. Excel template - robust and powerful. This is your solid foundation to plan your business model. Five-year horizon ... read more

Coffee Farm Financial Feasibility Model Template

This coffee farm financial feasibility model template prepares a financial plan for your next coffee growing project! Figure out the expected incomes ... read more

•   Standard version  –  $89.00 Version 1.2
•   Pro version  –  $119.00 Version 1.2
•   Free Demo PDFs  –  $0.00 Version 1.2

Solar Panel Manufacturing Plant Business Plan Financial Model Excel Template

Get the Best Solar Panel Manufacturing Plant Financial Model. Spend less time on Cash Flow forecasting and more time on your products. The Solar Panel... read more

Generic Cost Benefit Analysis Excel Model

User-friendly Excel model intended for the preparation of a Cost-Benefit Analysis to determine the financial viability for a proposed project or inves... read more

•   PDF Copy  –  $0.00
•   Excel Model  –  $35.00

Budget vs Actual Excel Template

Create your very own budget vs actual analysis by trying out this Budget vs Actual Analysis Excel Template.

Resort Financial Model Excel Template

Order Resort Financial Model. Excel template - robust and powerful. This is your solid foundation to plan your business model. Five year res... read more

WACC Calculator | Discount Rate Estimation

Unlock the power of informed financial decision-making with our WACC Calculator! Dive into accurate discount rate estimations and empower your busines... read more

Airline Operator Financial Model

Airline Operator Financial Model presents the case of a company operating an airline business. The model generates the three financial statements, a s... read more

Golf Course Financial Model – Startup

A 5-year financial model tailored to starting a golf course and projecting financial performance for its business plan. Includes financial statements.

Generic Startup/Existing Business 5-year (Monthly) Financial Projection 3 Statement Excel Model

Highly versatile and user-friendly Excel model for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Stat... read more

•   Excel Model  –  $59.00 Version 1
•   PDF Model  –  $0.00 Version 1

Payable and Receivable Tracking (Google Sheets)

This is a Google Sheets version of the financial model template for tracking accounts payable and accounts receivable

•   Google Sheet Version  –  $45.00
•   Excel Version  –  $45.00

Cannabis Financial Model Excel Template

Download Cannabis Farming Financial Model. Creates 5-year financial projection and financial ratios in GAAP or IFRS formats on the fly. Cann... read more

Mergers and Acquisition (M&A) Financial Model

Merger and Acquisition Model template consists of an excel model which assists the user to assess the financial viability of the resulting proforma me... read more

Renewable Energy Financial Model Bundle

This is a collection of financial model templates for projects or ventures in the Renewable Energy Industry and its related sectors.

•   Template Bundle  –  $561.93 Version 2

Generic Startup Financial Projection 3 statement Excel Model

User-friendly Excel model intended for the preparation of a 3 statement (Income Statement, Balance Sheet and Cashflow Statement) financial projection ... read more

•   Full Excel Model  –  $45.00

Insurance Pricing Model

Ever wondered how much you need to charge in order to offer insurance on a given product or service? You will know how much after using this tool.

•   Full Model  –  $45.00 Version 1

Real Estate Financial Model Bundle

This is a collection of financial model templates that provides the financial projections and valuations for Real Estate businesses and its related se... read more

•   Template Bundle  –  $299.00 Version 1

IPO Valuation Model

This financial model can be used to value any Initial Public Offering (IPO) using Option Value, DCF and Relative Valuation.

Skin Care Financial Model Excel Template

Order Skin Care Pro-forma Template. Generate fully-integrated Pro-forma for 5 years. Automatic aggregation of annual summaries on outputs tabs. Create... read more

Bar Financial Model Excel Template

Try Bar Financial Plan. Requesting a loan without a financial model for paying it back is a common way to land in the rejection pile. Creates 5-... read more

Real Estate Portfolio Template – Excel Spreadsheet

The Real Estate Portfolio Template forecasts the financial performance when building a real estate portfolio. The model allows simulating various scen... read more

•   Full Excel Version  –  $199.95 Version 2.5
•   PDF Demo Version  –  $0.00 Version 2.5

Flower Shop Financial Model Excel Template

Discover Flower Shop Financial Model Template. Allows investors and business owners to make a complete financial projection in less than 90 mins... read more

Debt Securitization Model

The Debt Securitization is the process of packaging debt into a Securitization Vehicle sold to a Fiduciary where it is converted into bonds sold to in... read more

•   Free PDF Preview  –  $0.00
•   Full Excel Model  –  $65.00

Barber Shop Financial Model Excel Template

Check Barber Shop Financial Projection Template. Creates 5-year financial projection and financial ratios in GAAP or IFRS formats on the fly. Generate... read more

Shopping Mall Financial Model

Shopping Mall Financial Model presents the case of an investment into a shopping mall and its operation. The model generates the three financial state... read more

Manufacturing Startup Feasibility Model

Launching a manufacturing startup can be complex, and securing financing requires a solid financial plan. Our Manufacturing Startup Financial Feasibil... read more

•   PREMIUM Excel Version  –  $129.95 Version 2.41
•   BASIC Excel Version  –  $89.95 Version 2.41
•   PDF DEMO Versions  –  $0.00 Version 2.41

Mini Storage Business Plan Template

We understand that your storage needs are unique, so we've created a comprehensive mini-storage business plan that will help you chart your course to ... read more

•   Full Excel Version  –  $44.95 Version 9.2
•   PDF Demo Version  –  $0.00 Version 9.2

Full Service Hospital Financial Model

This financial model attempts to give the user a full scope of starting a 250 bed (adjustable) hospital. It will allow for all revenue and cost assump... read more

•   Full Model  –  $45.00 Version 1.2

Laundry Financial Model Excel Template

Purchase Laundry Pro Forma Projection. Impress bankers and investors with a proven, strategic business plan that impresses every time. Five-year finan... read more

Steel Industry Financial Model

Steel Industry Financial Model presents the business case of the operation of a steel plant using the mini mill technology. The model generates the th... read more

Price Volume Mix Charts and Analysis – On revenue and Gross Profit by Product

Best practice model for a complete Price Volume Mix (PVM) analysis on revenue and on gross profit by product.

Monte Carlo Simulation in Excel

The model presents an example of a Monte Carlo Simulation using excel to estimate the Net Present Value of an investment.

•   Monte Carlo in Excel  –  $0.00 Version 1

Clinic Financial Model Excel Template

Shop Clinic Financial Plan. Create fully-integrated financial projection for 5 years. With 3 way financial statements inside. Five year clin... read more

Food Truck Financial Model Excel Template

Purchase Food Truck Financial Projection Template. Excel Template for your pitch deck to convince Investors. The food truck budget financial model is ... read more

E-Commerce 3 Statement Financial Projection Model with Valuation

Highly versatile and user-friendly Excel model for the preparation of a rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) ... read more

•   Excel Model Populated  –  $59.00
•   Excel Model Not Populated  –  $59.00

Leveraged Buyout (LBO) Model

Leveraged Buy Out (LBO) Model presents the business case of the purchase of a company by using a high level of debt financing. The model generates the... read more

•   Paid Excel Model  –  $119.00

Top 16 Google Sheet Templates

This is a bundle of all the most useful and efficient google sheet templates I have built over the years. Includes everything from budgeting and crew ... read more

Jewelry Shop / Store 5 Year Startup Business Model

A bottom-up financial model that is designed specifically for a jewelry store, but could easily be used for any retail business startup. Includes 3-st... read more

Clinical Lab Financial Model Excel Template

Order Clinical Lab Financial Projection Template. This well-tested, robust, and powerful template is your solid foundation to plan a success... read more

Physiotherapy Financial Model Excel Template

Impress bankers and investors with a proven, solid Physiotherapy Financial Plan. Five-year physiotherapy budget financial model for startups and... read more

Accounting Financial Model Bundle

Simply open the files using MS Excel

•   Template Bundle  –  $249.00 Version 1

Poultry Farm Valuation Model

The Poultry Farm Valuation Model allows forecasting the financial statements for a poultry farm based on operational metrics such as the hatchery rati... read more

•   Free PDF Demo  –  $0.00 Version 4.1
•   Full Excel Model  –  $44.95 Version 4.1

E-com Simple Financial Model Excel Template

Get Your Simple E-Commerce Pro Forma Projection. There's power in Cash Flow Projections and the insight they can provide your business. Five-year simp... read more

Industry Based Financial Models (Variety Bundle)

There are currently 52 unique financial models included in this bundle. Nearly all of that include a fully integrated three statement model and all of... read more

Law Firm Financial Model Excel Template

Try Law Firm Financial Model Template. Allows you to start planning with no fuss and maximum of help Five-year financial model template for Exce... read more

Fish Farm Financial Model Excel Template

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How to Start a Retail Business: A Step-by-Step Guide

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If you’re thinking about starting a business in the retail industry, you’re in good company. Although local retailers don’t get the same level of attention as nationwide brands do, small retail businesses actually make up the vast majority of all U.S. retail businesses.

In fact, researchers found that small retailers (with 50 or fewer employees) made up 98.6% of all retail businesses in 2019. To break into this vibrant industry and open a store of your own, therefore, you first need to understand how to start a retail business.

To help you through the process, we’ll guide you through all the steps required to start a retail business, as well as offer additional resources to assist you on your startup journey.

How to start a retail business in 10 steps

These steps will have you running your retail business in no time. Let’s get started.

Step 1: Find your niche.

The first decision you'll need to make in order to learn how to start a retail business is figuring out your company's niche. You may already have an idea of the type of company you want to form, or you may still be grappling to figure out where to focus your retail company. To determine your niche market, we recommend:

Explore your interests and passions: Determine what you love doing or what you'll enjoy selling.

Brainstorm potential conflicts: No industry is perfect, but figuring out what obstacles or issues you could encounter in your niche will help you plan ahead and determine if an industry is a good fit for your business.

Consider profitability: At the end of the day, you want to make money from your retail business, so you'll need to find a niche that has the potential for profitability. Generally, if your niche has absolutely no competitors, it's usually a sign there's no demand, and therefore, your focus will not be profitable. Use our guide to learn more about the most profitable business ideas.

Research competitors: Once you've found a niche market using the above three steps, it's time to research your competition. Figure out how they're marketing and selling and determine what you can learn from them and how you can improve upon what they have to offer.

Retail business examples

Deciding on your niche can take a long time. It requires significant research and the passion to work within a particular market. To help you get started in identifying your niche market, here are a few retail business examples worth exploring:

Coffee shops

Apparel shops (eyewear, sports apparel, undergarments, outerwear)

Restaurants and bars (determine a theme, whether that's the cuisine, small plates, a canteen, etc.)

Game centers (board games, video games, etc.)

Monthly box subscriptions

Pet supply shop

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Write a business plan.

We don’t doubt that you have an amazing idea for a retail store, but an idea alone isn’t enough to turn a dream into a reality. By writing a business plan, you’re providing yourself (and, potentially, future lenders and other stakeholders) a physical roadmap detailing every step you’ll take to open and run your retail business.

Therefore, when you're crafting your business plan for opening a retail store, you can start by answering essential questions about your business model:

What kinds of products are you selling?

Will you open a brick-and-mortar location, an e-commerce website , or will you take an omnichannel selling approach?

Who is your target market, and how will you market to them?

How will you set your store apart from your competition?

You’ll also need to dig into details related to your processes, answering questions such as:

Who are your vendors? How will you store your inventory?

How much staff will you need?

What will your hiring process look like?

What will your startup costs be?

How much money will you need to launch?

How long will it take for you to break even?

How long will it take for you to make a profit?

Keep in mind, however, that your preliminary business plan is exactly that—preliminary. You can always return to your retail store business plan to make changes, updates, and additions as you gain experience with starting and running your business.

Create a business budget

Along the same lines, you should also create a business budget, to the best of your ability, well before you’ve opened your doors. At this stage, you should be paying especially close attention to your startup costs.

Unfortunately, if you're wondering how to start a retail business with no money, you're going to find it's extremely difficult. Although there a variety of ways to cut costs—selling online instead of opting for a physical location, for example—there will always be a handful of costs associated with starting and launching your retail store.

This being said, in addition to standard startup costs like equipment, business insurance, and payroll, if you’re opening a brick-and-mortar retail store, you’ll have to cover some specific costs, like a down payment, potential renovations, and monthly rent and utilities for your store. You’ll also be responsible for purchasing your merchandise, shipping and delivery costs, and storing excess inventory.

And don’t forget about the other tools and software you’ll need to run your business, including a POS system, retail accounting software , and a security system to monitor shoplifting and theft.

Step 3: Register your business.

With your business plan and budget in hand, you can now move onto the next step involved in learning how to start a retail business—making it official.

Come up with a business name

If you haven’t already, you’ll first need to come up with a business name. Choose a name that reflects your business’s purpose and brand identity, allows you room to grow, and, perhaps most importantly, is actually available for use.

Once you’ve landed on your dream business name, run your moniker through a Google search to make sure another entrepreneur isn’t already doing business under that name. Then, check for trademark filings in the U.S. Patent and Trademark Office, and conduct a Secretary of State business search to make sure there isn’t another business in your area with your potential name.

Once you’ve established that your name is free and clear, you'll want to buy your domain name and create social media accounts with your name. That way, you can build a business website and launch your marketing strategy ASAP.

Determine your legal structure and register your business

Next, in order to register your business, you’ll first need to decide on your business’s legal structure. Your business structure determines how you’re taxed, the degree of legal protection you’re afforded, your business’s ownership structure, and your ability to receive business funding (in addition to allowing you to register your business in the first place).

There are lots of business entities to choose from—all of which we overview in detail in our guide to types of business entities. Additionally, we’d highly recommend consulting a business attorney or accountant to guide you through this crucial step.

Once you’ve landed on a business entity type, you can go ahead and register your business through your state’s Secretary of State website. After that, head over to the IRS' website to apply for an EIN (employer identification number) online. Your EIN is a bit like your business’s social security number, and it’ll help the government identify you for tax purposes. You might also need an EIN to apply for a business loan down the line.

Step 4: Obtain licenses, permits, and business insurance.

Some states require a general business license, while others require licenses and permits at an industry level. You may also need to acquire local permits and licenses, so consult your county or city clerk’s website for their particular requirements, too. The SBA is an excellent resource for licensing and permitting information at both the federal and local levels.

For those learning how to start a retail business, you’ll likely need to obtain multiple retail licenses related to your field, including a resale certificate, seller’s permit, and a certificate of occupancy. We also recommend partnering with a trusted business attorney during this step.

Additionally, you won't want to forget about business insurance. As a retailer, you should consider general liability insurance, a business owner’s policy, and business crime insurance; and as an employer, you’re likely required by law to carry workers comp insurance, health insurance, and unemployment insurance for your staff.

Take a look at our guide to small business insurance for more information on the types of coverage you need.

Step 5: Find a physical location and build an online store.

If your retail business will include a physical store, finding the right location is arguably the most important aspect of this process. Your location can make or break the success of your business: If you’re located in a heavily trafficked area, then your marketing efforts are practically built-in. If it’s in a tough-to-find location, or if parking is limited, then your bottom line might suffer.

The right location for your business depends largely upon who your target market is and where they hang out. If you’re opening an upscale boutique, for example, you probably want to choose a neighborhood that skews less toward students and cash-strapped millennials, and more toward people with some discretionary income to burn.

Of course, you’ll also have to keep in mind how much space you need for display areas, a back-office and break room for your staff, dressing rooms, and an inventory storage area. Your location will also depend largely upon how much room you have in your budget for renovations, store design, remodels, updates, a down payment, and your monthly rent and utility bills. That may mean opting for your second or third choice location to protect your budget.

Build an e-commerce store

Even if you always dreamed of a brick-and-mortar store with in-person transactions, we also recommend opening an online store to give your retail business as much exposure as possible.

Luckily, building and managing an online store is incredibly easy with an e-commerce platform. Here are a few recommendations to get you started:

Shopify: This platform provides an infinitely customizable, standalone store that you build and manage entirely on your own.

Squarespace or Wix: These business website platforms are simple to use and offer e-commerce functionalities.

Etsy, Amazon, or eBay: These popular marketplaces will provide you with plenty of built-in traffic and handy seller tools. On the downside, you won’t have as much control over your branding, customer relationships, or fulfillment process as you would with your own e-commerce store.

The combination of e-commerce and in-person retail is sometimes referred to as "bricks and clicks." You can use our guide to learn more about the bricks and clicks business model.

» MORE: How to start an online boutique

Step 6: Establish relationships with vendors and suppliers.

This is the next step to learning how to start a retail business—and beyond your store’s location, arguably one of the most crucial aspects of your potential success—is finding trustworthy vendors and suppliers. Your vendors might become your most valuable partners and a great vendor can present you with new merchandise, determine which products will sell best, and cut costs for you.

There are a few considerations to keep in mind as you’re searching for vendors.

Budget: Your vendors need to work within the supplier budget you’ve established.

Quality: The quality of their merchandise is crucial.

Reputation: You want to work with a supplier who is guaranteed to deliver your agreed-upon items on time and in good condition—every time you place an order.

Customer service: Remember that you’ll be working closely with your vendors, so their service team must be reliable, personable, and easy to contact in case you run into any issues.

We recommend establishing relationships with several vendors. Even if your vendor of choice is stable, reliable, and cost-efficient, you need to have a contingency plan in place—without merchandise to sell, you won’t have a business to run.

Step 7: Hire staff.

If you’ve never hired an employee before, take a look at our guide on how to hire great employees who’ll stick with you for the long run. When hiring for a retail position, make sure to interview as much for their attitude as you are for their experience. While you can train your employees to use your POS system and manage your inventory, you can’t teach them to be kinder, friendlier, or more trustworthy than they innately are.

In advance of hiring your first team member, make sure you understand your state-regulated employer requirements. Your state might require that you buy certain types of insurance for your staff. Additionally, you’ll probably need to complete some other steps, like creating a state withholding account for payroll, reporting new hires, and verifying your potential new hire’s employment eligibility as well.

Step 8: Find the right POS system.

Your POS system just might become your retail business’s best friend. It’ll certainly become your employees’ best friend—assuming you choose an intuitive, easy-to-use model, of which there are tons on the market right now.

A point of sale system combines hardware and software that enables your business to accept and process all kinds of payments. Most POS software is loaded with valuable back-end capabilities, like inventory management, employee management, CRM tools, sales reports, and vendor tracking.

If you’re opening a brick-and-mortar location, you’ll need a POS system that can accept cash, checks, contactless payments, and both chip and swipe cards. In addition, you’ll need a barcode scanner, receipt printer, and cash drawer.

For more flexibility, you might want to look into a POS system that allows on-the-go payments, too. For example, Square (and most other POS systems) has mobile card readers that plug into your phone or tablet so you can accept payments from virtually anywhere, whether that’s at a pop-up shop, craft fair, or trunk show.

Similarly, Clover also has a fully equipped, handheld POS device so you or your staff can ring up your customers from anywhere in your store.

Ultimately, you have options—a lot of them. To help you navigate the selection process, consult our guide on the best retail POS systems.

Step 9: Organize your finances.

As we mentioned earlier, it's nearly impossible to figure out how to start a retail business with no money—so, whether you have a large amount of startup capital or are operating on a tight budget, it's extremely important to organize your finances.

First, you'll want to open a business checking account . If you’re happy with your current bank, you may want to open a business bank account there. It’s logistically easier for you to maintain all your finances with the same institution. In addition, many banks offer discounts and other incentives when consumer clients open business accounts. If you want to compare your options, we recommend looking into our best business bank accounts guide.

Next, you'll want to get a business credit card . Most credit card companies allow business customers to apply for a business credit card online—which makes this step even easier than opening a business bank account.

If your business is too new to have any financial data, you can provide your personal financial information on your application. If you’re approved, you’ll receive your card in the mail in about a week or two. Use it for your business’s smaller, daily expenses, and be mindful of only using it for business-related purchases to maintain personal and business financial separation.

Get funding

Most entrepreneurs need a little (or a lot of) financial help to get their businesses off the ground. That may be especially true of retailers and brick-and-mortar business owners, who have a few extra startup costs to contend with.

Although it can be difficult to get a business loan as a startup, there are a variety of alternative options you can consider, especially as you start to run your retail store and become more established.

Finally, don’t forget to sign up for a good business accounting software solution, which will streamline, automate, and organize your business’s finances.

» MORE: Best retail business loans

Step 10: Market your retail business.

At this point, you've learned the most important pieces of how to start a retail business, and now, you're ready to open your doors and get to work.

Of course, to get the word out about your business, you need to develop a small business marketing strategy, which provides you with an opportunity to get a little creative. The best marketing strategies, especially for brick-and-mortar stores, use a combination of SEO, social media, email marketing, paid online marketing strategies (if their budget allows for it), and analog marketing efforts.

At the very start of your venture, your time is best spent building a business website and creating social media accounts. Squarespace and Wix provide users with tons of customizable, professionally designed templates and built-in SEO tools. For social media, focus on creating diverse, high-quality content, posting regularly, and responding promptly to your followers’ comments and DMs—both the positive and the negative.

As a brick-and-mortar store owner, in-person marketing tactics are also important. We recommend:

Getting active in your local retailer community, networking with your fellow business owners, and participating in craft fairs and other events showcasing local businesses.

Partnering up with a local business whose target market is similar to yours and putting on an event together, or hosting pop-up shops or trunk shows in each other’s locations.

Using good sales incentives—like BOGO deals, giveaways, and free trial periods—to draw even more customers into your store.

To boost your marketing strategy, it's important to take some time to develop your brand identity. Establish your messaging, market positioning, and how your unique business can provide your customers with what they’re looking for—then create the materials to reflect those core values.

LLC Formation

The bottom line

As you navigate the business formation steps, be careful not to lose sight of why you’re opening your retail business in the first place. If you remember the passion that inspired you to launch your business, you might even enjoy the finer points involved in the process—who knew finding a POS system could be so fun?

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Stacey has more than 18 years of editorial, PR and social media experience and has worked across print and online for national newspapers, magazines, PR and marketing agencies.

Ecommerce may be booming but opening and running successful shops and retail companies of the bricks-and-mortar variety is still a life goal for many.

If you’re planning to make that dream a reality, writing a thorough business plan should be at the top of your to-do list — here’s why.

What is a business plan?

Your business plan is essentially your company’s strategic blueprint. It explains what your business idea is and sets out your goals and how you will achieve them, while considering the environment you’ll operate in.

Typically, it’s the first proper step of getting your retail business off the ground and can be used to get investors, grants, loans or other funding for your company before you open your shop doors.

Something that can also help your planning is a Business Model Canvas . It is a handy tool to help you build out your business plan.

Your one stop shop for starting a business

Thinking about starting a business or already putting your ideas into action? We’ve got the resources, expertise and software to help you achieve your goals.

Do independent shops really need a business plan?

The short answer is yes. Of course it’s possible to do well with a good idea and a bit of luck but you’re more likely to succeed with a solid business plan to help guide your decision-making. Researching your plan will also help you figure out if your products or services are financially viable and in demand before you launch. Here are three things to consider as part of your business planning process:

1. Location, location, location

For shops and retail companies, whether you’re opening a community greengrocer or an exclusive boutique, one of the most important aspects of your business model is your location. Pulling a plan together will encourage you to think about the most viable location for success, as well as the cost implications.

2. Customers

When creating your business plan, you’ll need to research your potential customers. Documenting who they are, how they behave and the circumstances in which they will shop with you will aid you in determining the stock you will carry and how to effectively promote your store to customers.

3. Pricing model

A big part of any business plan is the financial figures that are included. As part of the planning process, you should be doing detailed research on potential competitors and their prices as well as all the expenses that running your business will incur. This will help you determine the prices that you will charge for the products you sell.

What are the other benefits to having a business plan?

• It looks good to potential partners, investors, lenders and funding bodies, and if you want to apply for a business loan, you’ll most likely need a business plan.
• It will help you work out what your unique selling proposition is, identify threats and challenges, and come up with solutions and coping strategies.
• It will make you set short and long-term SMART goals, such as launching a new website within three months or opening a second shop in year three of trading.
• You can use it to benchmark your performance by comparing your company’s results and achievements with the goals set out in your plan.

If you want to increase the chances of your business being successful, it’s worth having a business plan

How to write a business plan for your shop

Your business plan doesn’t have to be a boring document. Given some investors make their decision to provide funding to start-ups and existing firms based on the people as much as the business itself, your business plan should showcase your passion and personality.

However, certain bodies or individuals who can provide funding will expect you to include specific information. Putting your plan together using the following sections can help you make a strong case for securing the required finance:

• Executive summary
• Business overview
• Audience and market
• Products and services

As we’ve discussed, your business plan will be critical to you running a profitable shop, which is all the more reason to ensure that you are thorough in your approach. Here are some top tips for writing your plan:

Be realistic

It’s unlikely that you will be profitable straight away and sales may show steady growth rather than a massive spike. If your plan includes figures that seem unrealistic, you should justify them.

Accuracy is key

As your business plan will help you make decisions, it’s important the information you base those decisions on is correct. Double check everything. We have some great advice on how to get more accurate figures for your business plan .

As your plan will be used to help you manage your retail business and potentially be shared with others, it’s important to avoid waffle. You can always make use of appendices for supplementary information.

Want help with business plan for shops and retail companies?

Your accountant may be able to give you tips and ideas, or ask your bank if they have a small business adviser you could talk to. If you’re ready to start your research and writing, why not use an online template?

To help you out, we’ve created a business plan template specifically for shops and retail companies with physical stores. It’s free to download and takes you through the process step by step with detailed guidance notes.

Don’t forget that your plan should evolve with your business, so you should revisit and update it regularly. Good luck!

Want to create a business plan for your shop or retail company but not sure how to do it? Download our free and easy-to-use business plan template and you can get started.

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Retail Store Business Plan

Retail store is a competitive business as competition is intense in this segment. Moreover, many big giants are investing more in e-commerce and digital marketing, making this business even tougher day by day.

Having a physical retail store that offers a shopping experience along with products is a dream for many. It is not only because of the size of a business but the potential and opportunities such a business offers.

And if you are an individual who likes to interact with people, constantly improve your way of doing business, and form communities that work towards something, then you might have thought of having your retail store business.

Now, a retail store has great potential for success, but it is also a very competitive business. You’ll need a retail store business plan to help you stand apart from your competition and have a thriving business.

Industry Overview

Research suggests total retail sales in the United States were projected to amount to 6.03 trillion U.S. dollars in 2022, up from around 5.4 trillion U.S. dollars in 2018, according to the National Retail Federation .

Retail businesses come in many forms such as grocery stores, restaurants, and bookstores. There are around 4 million retail businesses in the United States alone.

The domestic retail market in the United States is very competitive, with many companies recording strong retail sales. Walmart, a retail chain giving low prices and a wide selection of products, is the front-runner in the United States. Amazon, The Kroger Co., Costco, and Target are a selection of other notable U.S. retailers.

Now, to have any genuine hope of getting noticed in such a jammed industry, you need a solid business plan to get success.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

Things to Consider Before Writing Your Retail Store Business Plan

Build a brand image.

A brand image goes a long way for any business, especially for a retail store. It is crucial to pay attention to what people think about your store, what emotions they associate your brand with, and how they perceive your products in general. Above all, what qualities make you different from your competitors?

Pick the right location

A retail store’s location can make or break the deal. Hence, it is very important to pick a location that is both convenient and accessible for your customers. As people are always running short of time, they prefer a store that is on the way and takes less time to get to. It can also act as your USP over the bigger retail stores.

Plan a good store design

A good store design that follows the major principles of consumer psychology is essential for a retail store. The strategic placement of products influences a customer’s buying decisions. Hence, you need to pay attention to it and design your store in a way that maximizes your sales.

Build communities that promote your brand

Building communities that stand by and promote the idea of your brand can be extremely beneficial for your retail store. Hence, ensure that you work towards building one. These communities can be driven by anything from a common belief to a certain cause that your brand stands for.

How Business Plan Can Help?

Regardless if you’ve been operating for a long time already, by writing up a business plan for your retail store, you can get an overview of what you want to achieve with your business, and guidelines for how you’ll achieve your goals.

A retail business plan is a solid foundation for the success of your business, whether you seek funding or not. It helps you see clearly what your business looks like and how it’s positioned in your target market.

If you need to get funding, your retail business plan will work as proof that you and your business are good for investment. Studies suggest you can double your chances of securing a loan with a business plan and grow your business.

How to Write a Retail Store Business Plan?

Writing a retail store business plan requires a good amount of research, a thoroughly competitive and customer analysis, and a little bit of extra help.

You can get help for writing your plan either through a premade template on the internet or through an online business plan software which will help you write a customizable plan anywhere and at any time.

Before you start writing your business plan for your new Retail store business, spend as much time as you can reading through some examples of retail & e-commerce-related business plans .

We have created this sample business plan for you to get a good idea about how a perfect retail store business plan should look like and what details you will need to include in your stunning business plan.

Retail Store Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Company Profile Summary
• Market Research Summary
• Marketing Summary
• Finance Summary
• Business Overview
• Company History
• Legal Structure Vision & Mission
• Industry Profile & Market Size
• Local Market
• Target Market
• Competitor Analysis
• Keys to Success
• Customer Survey Summary
• SWOT Analysis
• Products and Services
• Pricing Strategy
• Marketing Strategy
• Primary Marketing Activities
• Positioning Statement
• The Sales Process
• Strategic Alliances
• Location(s)
• Legal Issues
• Insurance Issues
• Human Resources (Or Team)
• Process/Production
• Risk Assessment
• Startup Funding & Capital
• Start-Up Costs
• Sales Forecast
• Projected Profit & Loss

What to include in a Retail Store Business Plan?

A retail store business plan consists of several different aspects. The major ones are as follows:

1. Executive Summary

The executive summary gives an overview of what your business stands for the reader. It should be written in such a way that even an outsider could get an idea of what your business is all about.

This section mainly comprises your business summary, your vision and mission statement, and your financial summary.

2. Company Profile

The company summary or company profile section of your business plan would consist of everything about your company, ranging from its location to information about your team.

While the executive summary section consists of information about the functional aspects of your business, a company summary consists of information about the structural aspects of your business.

While writing a company summary, it is a good practice to take suggestions from your team, as this section represents you as a team of individuals more than representing you as a brick-and-mortar company.

3. Market Research

Conducting market research helps you understand what you are getting yourself into. It helps you understand your target market, your competitors, and the working of the industry in general.

You can conduct thorough market research by using tools like PESTEL analysis or SWOT analysis . These tools help you conduct research specific to your business and prevent you from wasting your time on vague data.

4. Marketing Plan

As a retail store, it is your primary job to let your customers know about your existence. And to retain them once they start coming to your store.

A good marketing plan would help you do just that.

Based on the information you have gathered about your target audience through market research you can design your marketing campaign and promotional offers that’ll appeal to your customer base.

5. Operations

As a retail store, a proper operations plan can prevent your business from turning into a chaotic mess. An operations plan consists of your business’s logistic and functional information. It helps an outsider see what a typical day at your business looks like.

It also consists of your long-term and short-term goals. As well as the milestones you’ll have to reach for achieving them.

As a retail store business, your operations plan would consist of your supply renewal cycles, your backup distributors, a plan for the working of your store, your daily sales targets, and your long-term expansion goals, etc.

6. Financial Plan

A financial plan ensures that your business sails smoothly through tough times and also generates maximum profits.

It would consist of your funding requirements, cash flow projections, and profit forecasts.

As a retail store financial plan would consist of the funding requirements for setting up your store, buying supplies, and hiring people. It would also consist of your projected profits and break-even analysis.

Download a sample retail store business plan

Need help writing your business plan from scratch? Here you go;  download our free retail store business plan pdf  to start.

It’s a modern business plan template specifically designed for your retail store business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Retail Store Business Plan Summary

In conclusion, a retail store business plan helps you organize and manage your store better. It takes care of everything that goes behind the scenes of running a retail store, so you can greet your customers with a smile.

From angry customers to poorly stocked supplies, a business plan can save you from all of it.

After getting started with Upmetrics , you can copy this retail store business plan template into your business plan and modify the required information and download your retail store business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Convenience Store Business Plan PDF Example

• May 13, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful convenience store. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your convenience store’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a convenience store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your convenience store concept into reality. Let’s dive in!

Our convenience store business plan is structured to encompass all key components necessary for a well-rounded strategic approach. It details the store’s operations, marketing strategies , market context, competitive landscape, management structure, and financial outlook.

• Executive Summary : Provides an encapsulated view of the convenience store’s business concept, market analysis , management framework, and financial strategy.
• Store & Locations: Describes the store’s layout, location advantages, and why it’s appealing to potential customers, emphasizing convenience and accessibility.
• Products & Operations: Lists the wide range of products offered, from snacks and beverages to household essentials, and details the operational aspects such as inventory management and customer service.
• Key Stats: Provides industry size , growth trends, and critical statistics for the convenience store market.
• Key Trends: Outlines recent trends impacting the convenience store sector, like the rise in health-conscious products and digital payments.
• Key Competitors : Analyzes the main competitors in the vicinity and distinguishes how the store differentiates itself from them.
• SWOT : A thorough analysis of strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Strategies for enhancing brand visibility, attracting, and retaining customers.
• Timeline : Significant milestones and objectives from the store’s setup through the first year of operation.
• Management: Information about the individuals leading the store and their roles, emphasizing their experience in retail management and customer service.
• Financial Plan: Projects the store’s financial performance over the next five years, including revenue, profits, and anticipated expenses, with a clear outline of funding strategies to support growth and operations.

Convenience Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your convenience store’s business plan, providing a succinct overview of your store and its offerings. It should detail your market positioning, the range of products and services you offer, including groceries, household items, and quick-service foods, its location, size, and an overview of daily operations. 

This section should also delve into how your convenience store will fit into the local market, including an analysis of the number of direct competitors in the area, identifying who they are, along with your store’s unique selling points that set it apart from these competitors. 

Moreover, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to offer a clear view of your store’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Convenience Store, the Business Overview section can be effectively organized into 2 main slides:

Store & Location

Briefly describe the store’s physical setup, focusing on its layout, ease of navigation, and the inviting atmosphere that welcomes customers. Mention the store’s location, emphasizing its accessibility and the convenience it offers to customers, such as proximity to residential areas or ease of parking. Explain why this location is beneficial in attracting your target customer base.

Products & Operations

Detail the range of products and services offered, from basic groceries and household essentials to quick-service food items and possibly even niche products tailored to local preferences. Outline your operational strategy, ensuring it reflects efficiency, quality of offerings, and matches the market you’re targeting. Highlight any special offerings, such as local produce, organic sections, loyalty programs, or promotional deals that provide added value to your customers, encouraging repeat visits and customer loyalty.

Make sure to cover here _ Store & Location _ Products & Operations

Market Overview

Industry size & growth.

Begin with an analysis of the retail convenience sector’s size and growth potential to understand market opportunities.

Key Market Trends

Highlight trends such as increased demand for quick access to essentials, healthy and organic products, and ready-to-eat meals. Note the rise in stores offering additional services like bill payments and parcel collection.

Key Competitors

Then, explore the competitive landscape, which encompasses a variety of stores from large chain convenience stores to small, independent shops, as well as online delivery services. For instance, underline what sets your store apart, whether it’s through superior customer service, a diverse product selection, or the provision of unique services that cater to community needs. This section will help articulate the demand for convenience store services, the competitive environment, and how your store is positioned to succeed within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, perform a SWOT analysis for the convenience store , identifying Strengths (like a strategic location and diverse product range), Weaknesses (such as limited floor space or high competition), Opportunities (for instance, the growing demand for quick and easy shopping options), and Threats (like economic shifts that may affect consumer spending on non-essential items).

Marketing Plan

Next, formulate a marketing plan detailing strategies to draw and keep customers through targeted advertising, in-store promotions, an active social media presence, and community engagement.

Lastly, set up a comprehensive timeline that marks key milestones for the convenience store’s launch, marketing initiatives, customer base development, and growth goals, ensuring the business progresses with clear goals and intent.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the convenience store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the convenience store towards its financial and operational goals.

For your convenience store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your convenience store’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your convenience store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Thrift Store

Back to All Business Ideas

How to Start a Thrift Store: Cost and Profit Potential

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 31, 2021 Updated on August 1, 2024

Investment range

$2,550 - $35,100

Revenue potential

$156,000 - $780,000 p.a.

Time to build

1 – 3 months

Profit potential

$125,000 - $234,000 p.a.

Industry trend

Important elements to think about when starting your thrift store:

• Choose a location — Select a high-traffic location with good visibility, such as near shopping centers, schools, or residential areas. Ensure the location has adequate parking and is easily accessible.
• Define your niche — Decide on the types of items you will sell, such as clothing, furniture, home goods, books, or specialty items like vintage or designer goods. 
• Sourcing inventory — Develop strategies for sourcing inventory, such as accepting donations, partnering with local organizations, attending estate sales, or purchasing bulk items from wholesalers.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Inventory management — Implement an inventory management system to track stock levels, monitor sales, and organize merchandise.
• Hire staff — Hire knowledgeable and friendly staff to assist customers, manage inventory, and handle sales transactions.

You May Also Wonder:

Can you make money having a thrift store?

Yes, you can make money from a thrift store. While some operate as nonprofits and take donations, others are for profit. With an online thrift store, you can earn a high profit margin, as much as 80%.

How can I get merchandise for my thrift store?

Many re-sale stores extend offers to buy people’s used items and then re-sell them for a profit. You can also go to garage sales or estate sales to find quality items to re-sell.

What strategies can I use to promote and market my thrift store?

Utilize social media platforms to showcase unique and desirable items, share styling tips, and engage with your audience. Offer special discounts or promotions for loyal customers or new visitors. Collaborate with local influencers, bloggers, or community organizations to generate buzz and attract new customers.

What steps should I take to ensure the cleanliness and quality of items in my thrift store?

To ensure cleanliness and quality of items in your thrift store, establish strict quality control procedures. Implement a thorough inspection process for all items before they are placed on the sales floor. Regularly clean and organize the store to provide a pleasant shopping experience.

How profitable is thrift?

The profitability of a thrift store can vary depending on factors such as location, pricing strategy, quality of items, and target market. With careful selection of items, effective marketing, and efficient operations, thrift stores can generate a profitable income. 

Where is thrifting most popular?

Thrifting is popular worldwide, but certain regions, cities, or neighborhoods may have a stronger thrift store culture. Thrifting is often popular in urban areas with a diverse population, strong community involvement, and a sustainability-focused mindset. 

How can I differentiate my thrift store from competitors in terms of selection or pricing?

Curate a unique and diverse selection of items, focusing on high-quality and sought-after brands. Regularly update your inventory to provide a fresh and exciting shopping experience. Offer competitive pricing by carefully pricing items based on their quality, brand, or demand. Implement sales or discount programs for specific items or designated shopping periods.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business, including a thrift store business, has pros and cons that you should consider before deciding if it’s the right path for you.

• Community Service – Save items from landfills and provide them at affordable prices
• Online Opportunity – You can start your thrift store as an online business
• Growing Market – Re-sale items are in high demand
• High Startup Costs – Costs to open a physical location are high
• Time-Consuming – You’ll have to find merchandise as well as sell it

Thrift store industry trends

Younger consumers are driving the growth of the market. Over 40% of resale apparel shoppers are Gen Zers and millennials.(( https://www.thredup.com/resale/#whos-thrifting-and-why )) 

Companies like Poshmark and ThredUp are booming, buying and reselling high-end fashion items . This presents a tremendous opportunity for a go-getter entrepreneur to start an online thrift marketplace without the startup costs and overhead expenses of a physical store.

Industry size and growth

• Industry size and past growth – Market analyst IBISWorld values the US thrift store industry at nearly $11 billion, after an average annual growth of 1% in the past five years.(( https://www.ibisworld.com/industry-statistics/market-size/thrift-stores-united-states/ ))  
• Growth forecast – The $35 billion resale industry is expected to grow more than double in the next 5 years to reach $82 billion, according to a report by ThredUp, a resale company.(( https://www.thredup.com/resale/#size-and-impact )) 
• Number of businesses – More than 26,000 thrift stores are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/thrift-stores-united-states/ ))
• Number of people employed – Thrift stores in the US employ around 140,000 people.(( https://www.ibisworld.com/industry-statistics/employment/thrift-stores-united-states/ ))

Trends and challenges

Trends shaping thrift stores are:

• Online thrifting, resale, and vintage shopping are becoming popular
• Employment of content creators and use of social media in promoting thrift stores
• Growing awareness of environment-friendly and sustainable fashion products

Challenges faced by thrift stores include:

• Overcoming the negative stigma associated with secondhand or recycled clothing
• Highly competitive landscape

What kind of people work in thrift stores?

• Gender – 72% of storekeepers in the US are male, while 28% are female.(( https://www.zippia.com/storekeeper-jobs/demographics/#gender-statistics ))
• Average level of education – 33% of storekeepers hold a bachelor’s degree and 31% have a high school diploma.(( https://www.zippia.com/storekeeper-jobs/demographics/#degree-level-types ))
• Average age – The average age of a storekeeper is 39 years old.(( https://www.zippia.com/storekeeper-jobs/demographics/#age-statistics ))

How much does it cost to start a thrift store business?

Startup costs for a thrift store range from $2,500 to $35,000. The low end represents opening an online store with the largest costs being inventory and a website setup. The high end reflects the cost of opening a physical store.

You’ll need a handful of items to successfully launch your thrift store business. Here’s a list to get you started:

• Shelving and counters
• Storage containers for items

How much can you earn from a thrift store business?

Typically, the markup on resale items is between 5 and 8 times the purchase price, but it can vary greatly. Use our markup calculator to calculate your sale price and how much revenue and profit you will earn with different markup percentages. If you start an online store from home, you can expect a profit margin of about 80%. 

In your first year or two, you could work from home and sell 200 items a week at $15 average per item, bringing in $156,000 in annual revenue. This would mean around $125,000 in profit, assuming that 80% margin. As your brand gains recognition, sales could climb to 1,000 items per week. At this stage, you might rent an office and hire staff, reducing your profit margin to around 30%. With expected annual revenue of $780,000, you would make about $234,000.

What barriers to entry are there?

There are a few barriers to entry for a thrift store. Your biggest challenges will be:

• You’ll have to find inventory to start with which will take some legwork
• Competition, particularly online, is high

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Step 2: hone your idea.

Now that you know what’s involved in starting a thrift store, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research other thrift stores to examine their products, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe the market is missing an online home goods thrift store. 

You might consider targeting a niche market by specializing in a certain aspect of your industry such as glassware.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products

You can decide to specialize in a certain type of product such as clothing , or you could offer a variety. If you decide to purchase items at garage sales to re-sell, you could find any number of things from clothing to glassware and home goods.

Source products for your thrift store

The key to success in a thrift store is not just about having a wide range of items, but also about having interesting, unique, or high-demand items that attract a variety of customers. Here’s how to source them:

• Community Donations : Encourage local residents to donate items they no longer need.
• Estate Sales and Garage Sales : These are great places to find unique and valuable items at a low cost.
• Auctions and Liquidation Sales : Check out local auctions, including online platforms.
• Collaborations with Local Businesses : Partner with local businesses looking to offload old stock or unwanted items.
• Online Marketplaces : Platforms like eBay, Craigslist, or Facebook Marketplace are excellent for finding items.
• Flea Markets : Flea markets can be treasure troves for unique thrift items.
• Storage Unit Sales : Sometimes storage units are auctioned off. These can contain a wide variety of items, often at a very low cost.
• Consignment and Buy-Outright : Consider setting up a consignment system where people can leave their items for you to sell, or offer to buy items outright from individuals.
• Wholesale Purchases : Look into wholesalers who specialize in used or surplus goods. While this might require a larger initial investment, it can be a reliable source of inventory.

How much should you charge for thrift store items?

Your prices are going to vary based on what you buy items for and how much people are willing to pay for items. Keep in mind that your customers are going to be looking for items that are significantly less than they would pay for new items. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the type of products you decide to offer. If you specialize in trendy or vintage clothing, your target market will likely be younger, so you can find them on sites like Instagram or TikTok.

Where? Choose your thrift store location

If you have an online store, in the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office.

Look for a spot with high visibility and easy accessibility for both foot and vehicle traffic, preferably in a commercial area or close to other complementary businesses. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Thrift Store Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “thrift” or “thrift store”, boosts SEO
• Choose a name that allows for expansion: “Affordable Finds Thrift” over “Furniture Finds Thrift”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Thrift Store Business Plan

Here are the key components of a business plan:

• Executive Summary: Provide a brief overview of your thrift store business, emphasizing its focus on selling affordable, quality second-hand goods and its unique position in the retail market.
• Business Overview: Describe your thrift store’s operation, which includes sourcing and selling a variety of used items such as clothing, furniture, and household goods.
• Product and Services: Detail the range of products offered, including second-hand apparel, home décor, books, and potentially upcycled items.
• Market Analysis: Assess the demand for thrift and second-hand goods, identifying key customer segments like budget-conscious shoppers, vintage enthusiasts, or eco-friendly consumers.
• Competitive Analysis: Compare your store to other local thrift shops and second-hand stores, highlighting your advantages in product variety, pricing, or store location.
• Sales and Marketing: Outline your strategy for attracting customers, such as through community engagement, social media marketing, or loyalty programs.
• Management Team: Highlight the experience and roles of your team, focusing on retail management, merchandising, and sustainable business practices.
• Operations Plan: Describe the day-to-day operations, including inventory sourcing, store layout, and customer service procedures.
• Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and revenue projections.
• Appendix: Include supplementary documents like supplier agreements, market research data, or community partnership details to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to thrift stores. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your thrift store will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
• Benefit Corporation – A B-Corporation is a business of any entity type that has a social mission but can still make a profit. By passing rigorous standards and “meeting the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose” they can get a B-Corp certification from B Lab, a non-profit organization. Not all states recognize the B-Corp status. The B-Corp is taxed based on what type of entity it is. For example, a corporation that has B-Corp certification is taxed as a regular corporation.
• Non-Profit Corporation – A corporation that does not generate profits and works toward a social mission. The owners are not personally liable for debts. Funding comes from donations or fund-raising activities. 

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.  
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Friends and family can help fund your company either for a stake in the company or as a loan. It’s a good idea to have legal advice when doing so because SEC regulations apply.      
• Crowdfunding : Websites like Kickstarter offer an increasingly popular low-risk option, in which donors fund an entrepreneur’s vision. Other crowdfunding sites like Fundable and WeFunder allow you to invite multiple investors to fund your business for a stake in the company       
• Personal : Self-fund your business via your savings, or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a thrift store. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Thrift Store Business Licenses and Permits

Starting a thrift store business requires obtaining a number of licenses and permits from local, state, and federal governments. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account . Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your thrift store business as a sole proprietorship. 

Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You can use industry-specific software, such as ConsignPro , AccuPOS , or MicroBiz , to manage inventory and sales.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Developing a website for your thrift store is a critical step in establishing your online presence and reaching a broader audience. Utilizing website builders like Shopify, Wix, or Squarespace is a convenient and cost-effective way to create a professional-looking site without needing extensive coding knowledge. These platforms offer customizable templates, which you can tailor to reflect your store’s unique personality and brand.

It’s important to optimize your website for both user experience and search engines (SEO), ensuring it loads quickly, is easy to navigate, and is mobile-friendly. Incorporating clear calls to action (CTAs) is essential; these could be prompts for visitors to sign up for newsletters, follow your social media, or check out your latest collection.

Opening a thrift store presents unique marketing opportunities to connect with your community and stand out. Here are some effective strategies:

• Social Media Engagement : Use platforms like Instagram, Facebook, and TikTok to showcase unique finds, store events, and promotions. Regular posts and engaging content can build a loyal following.
• Local SEO Optimization : Ensure your website and online content are optimized for local search engine results. This includes using local keywords, having a Google My Business listing, and ensuring your store’s name, address, and phone number (NAP) are consistent across the web.
• Community Involvement : Participate in local events, sponsor community activities, or collaborate with local artists and creators. This builds your brand’s presence and reputation within the community.
• Email Marketing : Collect email addresses at the point of sale or through your website. Send out newsletters with special deals, store updates, and featured items to keep your store top of mind.
• Customer Loyalty Programs : Implement a loyalty program to encourage repeat business. This could be a points system, discounts on future purchases, or special sales for returning customers.
• Local Directories and Online Listings : Get your thrift store listed in local business directories and online platforms like Yelp, TripAdvisor, or local chamber of commerce websites to increase visibility.
• Targeted Local Advertising : Consider using local advertising in community newspapers, radio, or local online forums and groups. Tailor your ads to the local audience to maximize impact.
• In-Store Events and Promotions : Host special events like vintage fashion shows, DIY upcycling workshops, or themed sale days to draw in customers and create a buzz.
• Collaborate with Influencers and Bloggers : Partner with local influencers or bloggers who align with your brand to reach a broader audience.
• Visual Merchandising : Make your store visually appealing and regularly change displays to keep the shopping experience fresh and engaging.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your thrift store meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your thrift store business could be: 

• Thrifty home goods that fit your budget
• Sustainable clothing that sustains your wallet
• Re-sale jewelry at rock bottom prices

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a thrift store, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in the resale market for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in thrift stores. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a thrift store business would include:

• Sorters – sort and price items
• Store clerks – make sales if you have a physical store
• Marketing lead – SEO strategies, social media, other marketing
• Buyers – find items for re-sale

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Thrift Store – Start Making Money!

Thrift stores are great for the community and the planet, and your own store can be good for your bank account. It’s a nearly $11 billion industry and growing, so why not make money while doing a service for others? It’s fairly easy to start an online store, and you can do it for very little money. You can also start from home.

You could grow your business to include physical locations later. Now that you’ve read all about it and have all the information you need, you’re now ready to start your entrepreneurial journey and open your own thrift store! 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Thrift Store Name
• Create a Thrift Store Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Thrift Store Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Thrift Store - Start Making Money!

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How To Write a Thrift Store Business Plan in 9 Steps

by ThriftCart | Aug 21, 2024

Have you ever wanted to run your own thrift store or secondhand shop? With the right approach, your thrift businesses can be successful and profitable. If you’re interested in becoming a thrift store owner, you’ll need a business plan that outlines your objectives and vision. 

Follow this step-by-step thrift store business plan template and turn your startup thrift shop into a successful venture your customers will enjoy visiting.

Step One: Create an Executive Summary

An executive summary is a brief look into what your business is all about. It summarizes everything from business objectives to the types of products you want to sell and the experiences you want to convey to your customers. You should include these elements in your thrift shop’s summary:

• Mission Statement: Explain what your thrift shop hopes to achieve and what makes it stand out. For instance, you might open a thrift store to offer your local community affordable, gently-used clothing, with the sales proceeds supporting a nearby humane society for pets.
• Business Goals: Outline what success will look like for your thrift shop, when you expect it to turn a profit, and if you plan to expand to additional locations.
• Business Focus: Detail what items your shop specializes in and the shopping experience you want to provide your customers.
• Financial Overview: You’ll need to outline the initial funding required to cover all startup costs for your thrift business. Then, provide an estimated revenue projection for the first year to demonstrate its expected profitability.

Potential stakeholders in your thrift store, such as partners looking to financially support your nonprofit organization and its mission, often read the executive summary first. Keep each point concise, clear, and compelling to maximize the chances of getting them on board. The summary must achieve two objectives: demonstrating the thrift shop can be run as a profitable business and explaining how it advances the nonprofit’s goals.

Step Two: Write a Business Overview

Think of your thrift store’s business overview as its business card, introducing its essential details at a glance. It should include:

• The business’ complete name
• Geographic location
• Business structure , such as 501(c)(3) organization, sole proprietorship, LLC, or corporation
• Short version of the mission statement
• Brief explanation of the shop’s purpose, core values, and future goals

Potential partners and investors use your business overview to understand your shop’s identity and what sets it apart from other thrift shops.

Step Three: Conduct Industry and Market Analysis

Starting a thrift store is a challenge. The thrift store industry is a competitive environment with a mix of different business types. Depending on your location and target market, your competitors may include independent mom-and-pop stores, online ventures, or large and established chains like Goodwill and Savers.

Research the current state of the thrift shop industry and check out what businesses local customers turn to when they want to go thrifting. Then, analyze the type and number of competitors. 

Are they primarily independent businesses, or are there bigger chain stores? How many are there in your region? These market research details can help you find a way to differentiate your thrift business and offer items, services, and experiences the competition doesn’t.

Step Four: Perform a Thrift Customer Analysis

All kinds of people love to go thrifting. Look into what type of customers like to visit secondhand shops and analyze their demographics , purchasing behaviors, and reasons for going thrifting.

Are local thrifters budget-conscious customers looking for a great deal, or are they visiting thrift shops to reduce waste and be eco-conscious shoppers? Do they look for vintage items and one-of-a-kind objects, or do they stick to wardrobe staples? The answers can help you understand what your customers are like and how best to answer their needs.

Step Five: Describe Products and Services

Decide whether to specialize in specific items, such as used clothing and accessories, or run your business like a secondhand general store offering a wide variety of goods.

Besides choosing what products to sell, consider providing additional services to your customers to encourage more sales, like donation drop-off points, repairs, and loyalty programs. Choose your approach based on the local community’s needs, giving your customers what they expect while standing out from competing businesses.

Step Six: Outline an Operations Plan

An operations plan is a guide detailing everything your store needs to run smoothly on any given business day. Most operational plans for thrift businesses include:

• Inventory management: Determine the tools and systems the store needs to sort, price, and categorize items. An all-in-one POS system built for thrift stores is ideal and often includes powerful tools to help you automate or streamline inventory management. For instance, they include donation processing tools designed to sort all the items your store will handle.
• Pricing and discounting strategies: Develop strategies to group items into bundles or categorize them by type, color, theming, or other descriptors. These strategies can help you create exclusive deals or seasonal discounts, attracting customers looking to score deals. Regular deals and discounts incite deal-hunting customers to return to your store more frequently, naturally building loyalty and creating anticipation for your store’s next discounts.
• Donation processing: Establish the store’s procedures to source, accept, and sort donated items.
• Staff and training: Define roles, responsibilities, and training standards for each staff member.
• Store layout: Organize your store’s space and determine how items are grouped and showcased to visitors as they navigate your thrift store.
• Customer service: Set guidelines for greeting customers, managing transactions, offering services and assistance, and contributing to a positive shopping experience.
• Finances and budgeting: Detail your store’s procedures for tracking sales and transactions, managing revenues and expenses, and ensuring long-term profitability.

Your shop’s operations plan is the framework for managing a typical business day. A well-designed plan encourages repeated business and keeps thrifters coming back so your store can turn a profit. 

Step Seven: Develop a Marketing Plan

Your thrift store’s marketing plan is similar to its operations plan, but specific to marketing and advertising efforts. It should include the strategies your shop will use to increase foot traffic, establish a loyal customer base, and make the store profitable long-term. 

Consider all of the following in your marketing plan:

• Branding and Identity: Design your store’s logo, signage, lettering, interior theming, and colors.
• Advertising: Choose how you will promote your store, what advertising channels and digital marketing tools you’ll use, and what messages and values to convey.
• Promotions: Offer loyalty programs to attract customers or entice new business with deals and promotion codes on specific items.

A solid marketing plan should present your secondhand shop in the best possible light. Besides attracting new customers, it contributes to your store’s brand identity, making it more visible and creating a positive reputation.

Step Eight: Identify Your Management Team

The success of your thrift store ultimately comes down to who is running the day-to-day operations. As part of your business plan, you need to identify the staff members who will manage your thrift store, including information on their education, managerial skill set, and industry experience.

Highlight your managers’ backgrounds, showcase how their talents will contribute to the store’s success, and outline their total compensation plan. A credible, trustworthy team will show your investors and partners that your thrift store business is in good hands — and ready to grow into a successful venture!

Step Nine: Build a Financial Plan

Develop a financial plan to get the approval of your investors and potential partners. Your plan should expand on the initial estimates and financial projections in your executive summary with more details. 

Outline your shop’s projected expenses and expected revenues so you can assess its profitability over time. Include initial startup purchases and operational spending, like salaries, utilities, and maintenance, in your expenses. 

The data will help you estimate how long your business will take to break even, generate financial returns, and become a successful thrift store.

Set Up Your Thrift Store for Success With ThriftCart

A good thrift store business plan is the right solution to turn an idea into a money-making venture. Everything that makes a successful business should be accounted for and planned, from the basic details to day-to-day operations, customer analysis, marketing, and team management. Once you’re confident in your business plan, it’s time to think about the technology that will support your operations. Every retail store needs a point of sale (POS) solution, and the best in the industry is ThriftCart. Our POS software was developed specifically for nonprofit thrift stores and can support your startup from day one. Book a demo today and discover a simpler, better way to manage your thrift shop’s inventory, operations, finances, and marketing!

How to Write an Ecommerce Business Plan [Examples & Template]

Published: April 03, 2024

If you have a promising idea for an online e-commerce business , it’s important to create an e-commerce business plan to ensure your vision has enough stock to be profitable.

Having a business plan for your online store will help you define your target market, establish your monthly and quarterly sales goals, and increase the likelihood of long-term e-commerce success.

In this post, we’ll go over an online store business plan and how you can create one for your e-commerce startup. Let’s get started.

What is an e-commerce business plan?

An e-commerce business plan is a document that outlines your business and its goals, analyzes your industry and competitors, and identifies the resources needed to execute your plan. It also lists the e-commerce retailers you’ll use to distribute your products and the marketing strategies you’ll use to drive sales.

Whether a company operates as a startup or has years of operations and growth under its belt, an e-commerce business plan is essential for evaluating a business and determining areas of improvement.

An e-commerce business plan is essential, with increasing numbers of shoppers conducting business online. It's estimated this number has reached over 2 billion . An e-commerce business plan keeps you organized and is useful when seeking investors who need to understand your company.

So, let’s dive into some examples of e-commerce business plans and what goes into writing one using our free template .

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HubSpot's template provides clear steps to structuring one for your ecommerce business. Throughout this section, I’ll use the example of a photography company specializing in online photo editing.

How to Write an Ecommerce Business Plan

• Give an executive summary.
• List and describe your business.
• Detail your products and services.
• Conduct a market analysis.
• Strategize your marketing plan.
• Create a sales plan.
• Outline legal notes and financial considerations.

1. Give an executive summary.

An executive summary is a one-to-two-page overview of your business. The purpose of an executive summary is to let stakeholders know what the business plan will contain. HubSpot‘s free template offers some tips on how to write one, as I’ve done below:

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Simple Business Plan Template (2024)

Updated: May 4, 2024, 4:37pm

Table of Contents

Why business plans are vital, get your free simple business plan template, how to write an effective business plan in 6 steps, frequently asked questions.

While taking many forms and serving many purposes, they all have one thing in common: business plans help you establish your goals and define the means for achieving them. Our simple business plan template covers everything you need to consider when launching a side gig, solo operation or small business. By following this step-by-step process, you might even uncover a few alternate routes to success.

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Whether you’re a first-time solopreneur or a seasoned business owner, the planning process challenges you to examine the costs and tasks involved in bringing a product or service to market. The process can also help you spot new income opportunities and hone in on the most profitable business models.

Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. However, if you’re seeking startup funding or partnership opportunities, you’ll need a write a business plan that details market research, operating costs and revenue forecasting. Whichever startup category you fall into, if you’re at square one, our simple business plan template will point you down the right path.

Copy our free simple business plan template so you can fill in the blanks as we explore each element of your business plan. Need help getting your ideas flowing? You’ll also find several startup scenario examples below.

Download free template as .docx

Whether you need a quick-launch overview or an in-depth plan for investors, any business plan should cover the six key elements outlined in our free template and explained below. The main difference in starting a small business versus an investor-funded business is the market research and operational and financial details needed to support the concept.

1. Your Mission or Vision

Start by declaring a “dream statement” for your business. You can call this your executive summary, vision statement or mission. Whatever the name, the first part of your business plan summarizes your idea by answering five questions. Keep it brief, such as an elevator pitch. You’ll expand these answers in the following sections of the simple business plan template.

• What does your business do? Are you selling products, services, information or a combination?
• Where does this happen? Will you conduct business online, in-store, via mobile means or in a specific location or environment?
• Who does your business benefit? Who is your target market and ideal customer for your concept?
• Why would potential customers care? What would make your ideal customers take notice of your business?
• How do your products and/or services outshine the competition? What would make your ideal customers choose you over a competitor?

These answers come easily if you have a solid concept for your business, but don’t worry if you get stuck. Use the rest of your plan template to brainstorm ideas and tactics. You’ll quickly find these answers and possibly new directions as you explore your ideas and options.

2. Offer and Value Proposition

This is where you detail your offer, such as selling products, providing services or both, and why anyone would care. That’s the value proposition. Specifically, you’ll expand on your answers to the first and fourth bullets from your mission/vision.

As you complete this section, you might find that exploring value propositions uncovers marketable business opportunities that you hadn’t yet considered. So spend some time brainstorming the possibilities in this section.

For example, a cottage baker startup specializing in gluten-free or keto-friendly products might be a value proposition that certain audiences care deeply about. Plus, you could expand on that value proposition by offering wedding and other special-occasion cakes that incorporate gluten-free, keto-friendly and traditional cake elements that all guests can enjoy.

3. Audience and Ideal Customer

Here is where you explore bullet point number three, who your business will benefit. Identifying your ideal customer and exploring a broader audience for your goods or services is essential in defining your sales and marketing strategies, plus it helps fine-tune what you offer.

There are many ways to research potential audiences, but a shortcut is to simply identify a problem that people have that your product or service can solve. If you start from the position of being a problem solver, it’s easy to define your audience and describe the wants and needs of your ideal customer for marketing efforts.

Using the cottage baker startup example, a problem people might have is finding fresh-baked gluten-free or keto-friendly sweets. Examining the wants and needs of these people might reveal a target audience that is health-conscious or possibly dealing with health issues and willing to spend more for hard-to-find items.

However, it’s essential to have a customer base that can support your business. You can be too specialized. For example, our baker startup can attract a broader audience and boost revenue by offering a wider selection of traditional baked goods alongside its gluten-free and keto-focused specialties.

4. Revenue Streams, Sales Channels and Marketing

Thanks to our internet-driven economy, startups have many revenue opportunities and can connect with target audiences through various channels. Revenue streams and sales channels also serve as marketing vehicles, so you can cover all three in this section.

Revenue Streams

Revenue streams are the many ways you can make money in your business. In your plan template, list how you’ll make money upon launch, plus include ideas for future expansion. The income possibilities just might surprise you.

For example, our cottage baker startup might consider these revenue streams:

• Product sales : Online, pop-up shops , wholesale and (future) in-store sales
• Affiliate income : Monetize blog and social media posts with affiliate links
• Advertising income : Reserve website space for advertising
• E-book sales : (future) Publish recipe e-books targeting gluten-free and keto-friendly dessert niches
• Video income : (future) Monetize a YouTube channel featuring how-to videos for the gluten-free and keto-friendly dessert niches
• Webinars and online classes : (future) Monetize coaching-style webinars and online classes covering specialty baking tips and techniques
• Members-only content : (future) Monetize a members-only section of the website for specialty content to complement webinars and online classes
• Franchise : (future) Monetize a specialty cottage bakery concept and sell to franchise entrepreneurs

Sales Channels

Sales channels put your revenue streams into action. This section also answers the “where will this happen” question in the second bullet of your vision.

The product sales channels for our cottage bakery example can include:

• Mobile point-of-sale (POS) : A mobile platform such as Shopify or Square POS for managing in-person sales at local farmers’ markets, fairs and festivals
• E-commerce platform : An online store such as Shopify, Square or WooCommerce for online retail sales and wholesale sales orders
• Social media channels : Facebook, Instagram and Pinterest shoppable posts and pins for online sales via social media channels
• Brick-and-mortar location : For in-store sales , once the business has grown to a point that it can support a physical location

Channels that support other income streams might include:

• Affiliate income : Blog section on the e-commerce website and affiliate partner accounts
• Advertising income : Reserved advertising spaces on the e-commerce website
• E-book sales : Amazon e-book sales via Amazon Kindle Direct Publishing
• Video income : YouTube channel with ad monetization
• Webinars and online classes : Online class and webinar platforms that support member accounts, recordings and playback
• Members-only content : Password-protected website content using membership apps such as MemberPress

Nowadays, the line between marketing and sales channels is blurred. Social media outlets, e-books, websites, blogs and videos serve as both marketing tools and income opportunities. Since most are free and those with advertising options are extremely economical, these are ideal marketing outlets for lean startups.

However, many businesses still find value in traditional advertising such as local radio, television, direct mail, newspapers and magazines. You can include these advertising costs in your simple business plan template to help build a marketing plan and budget.

5. Structure, Suppliers and Operations

This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and responsibilities, supplier logistics and day-to-day operations. Also, include any certifications or permits needed to launch your enterprise in this section.

Our cottage baker example might use a structure and startup plan such as this:

• Business structure : Sole proprietorship with a “doing business as” (DBA) .
• Permits and certifications : County-issued food handling permit and state cottage food certification for home-based food production. Option, check into certified commercial kitchen rentals.
• Roles and responsibilities : Solopreneur, all roles and responsibilities with the owner.
• Supply chain : Bulk ingredients and food packaging via Sam’s Club, Costco, Amazon Prime with annual membership costs. Uline for shipping supplies; no membership needed.
• Day-to-day operations : Source ingredients and bake three days per week to fulfill local and online orders. Reserve time for specialty sales, wholesale partner orders and market events as needed. Ship online orders on alternating days. Update website and create marketing and affiliate blog posts on non-shipping days.

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6. Financial Forecasts

Your final task is to list forecasted business startup and ongoing costs and profit projections in your simple business plan template. Thanks to free business tools such as Square and free marketing on social media, lean startups can launch with few upfront costs. In many cases, cost of goods, shipping and packaging, business permits and printing for business cards are your only out-of-pocket expenses.

Cost Forecast

Our cottage baker’s forecasted lean startup costs might include:

Gross Profit Projections

This helps you determine the retail prices and sales volume required to keep your business running and, hopefully, earn income for yourself. Use product research to spot target retail prices for your goods, then subtract your cost of goods, such as hourly rate, raw goods and supplier costs. The total amount is your gross profit per item or service.

Here are some examples of projected gross profits for our cottage baker:

Bottom Line

Putting careful thought and detail in a business plan is always beneficial, but don’t get so bogged down in planning that you never hit the start button to launch your business . Also, remember that business plans aren’t set in stone. Markets, audiences and technologies change, and so will your goals and means of achieving them. Think of your business plan as a living document and regularly revisit, expand and restructure it as market opportunities and business growth demand.

Is there a template for a business plan?

You can copy our free business plan template and fill in the blanks or customize it in Google Docs, Microsoft Word or another word processing app. This free business plan template includes the six key elements that any entrepreneur needs to consider when launching a new business.

What does a simple business plan include?

A simple business plan is a one- to two-page overview covering six key elements that any budding entrepreneur needs to consider when launching a startup. These include your vision or mission, product or service offering, target audience, revenue streams and sales channels, structure and operations, and financial forecasts.

How can I create a free business plan template?

Start with our free business plan template that covers the six essential elements of a startup. Once downloaded, you can edit this document in Google Docs or another word processing app and add new sections or subsections to your plan template to meet your specific business plan needs.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Krista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and logistics, website platforms, payment systems, side-gig and affiliate income, and multichannel marketing. Krista holds a bachelor's degree in English from The University of Texas at Austin and held senior positions at NASA, a Fortune 100 company, and several online startups.

Transforming Spaces: The Ultimate Guide to Launching a Successful Furniture Store Business

Related blogs.

• The Untold Secrets of a Profitable Furniture Store: Achieving Success in a Crowded Market
• The Lucrative Business of Furniture Stores: How to Start Your Own and Maximize Profits
• Maximizing Profits: The Top 7 KPI Metrics Every Furniture Store Owner Needs to Track

1. Define The Business Concept Idea

Before starting any business, you need to have a solid idea of what type of business you want to run. In this case, you have decided to open a furniture store. However, you need to be more specific with your concept. Your concept idea could be a store that sells vintage furniture, a store that sells custom-made furniture, or a store that sells furniture for small apartments. By defining your concept idea, you will have a better understanding of your target market, what type of products to offer, and how to market your business.

To define your business concept idea, you should:

• Research your competitors: Look at what other furniture stores are offering in your area and identify any gaps in the market that you can fill.
• Identify your target market: Who do you want to sell your furniture to? Are you targeting homeowners, renters, or both? What is their budget and style preferences?
• Consider your unique selling proposition (USP): What makes your furniture store different from others? Do you offer custom-made furniture, affordable prices, or high-quality materials? Use your USP to set yourself apart from your competitors.

Tips & Tricks:

• Think outside the box: Consider adding complementary products or services to your furniture store, such as interior design services or home decor items.
• Stay up to date with design trends: Pay attention to what type of furniture is currently popular and consider offering similar styles to attract customers.
• Test your concept idea: Consider conducting market research or starting with a small pop-up shop to test your business idea before investing too much money.

2. Develop A Business Plan

Developing a business plan is crucial for any business, especially when it comes to starting a furniture store. It lays out the roadmap for how your business will operate, what it will offer, and how it will make money. Here are the key chapters you should include in your furniture store business plan.

Chapter 1: Executive Summary

• Introduction to the business
• Mission statement
• Business goals
• Market analysis
• Financial summary and projections

The Executive Summary is the most important part of your business plan. It should be a brief and compelling overview of your business that captures the attention of potential investors.

Chapter 2: Market Analysis

• Target market
• Industry analysis
• Market research
• Competitor analysis
• Pricing strategy

Market analysis is crucial to understanding your target audience, what they want, and what your competition is doing. This chapter will help you create your marketing plan and differentiate your business from others in the market.

Chapter 3: Sales and Marketing Strategies

• Sales goals and strategies
• Marketing plan
• Online and offline advertising
• Social media plan
• Brand messaging and management

This chapter is all about how you will promote your furniture store to increase sales. You'll learn how to create effective advertising campaigns and leverage different marketing channels to grow your business.

Chapter 4: Management and Staff

• Leadership team
• Roles and responsibilities
• Training and development plan
• Staffing plan
• Compensation and benefits

Having the right team in place is essential for any business to run smoothly. In this chapter, you'll learn about how to select and develop a strong leadership team and build a skilled and motivated staff.

Chapter 5: Financial Projections

• Profit and loss statement
• Balance sheet
• Cash flow analysis
• Break-even analysis
• Capital requirements

The financial projections chapter is all about creating accurate and realistic financial models for your furniture store. You'll learn how to forecast revenue and expenses, identify capital requirements, and more.

Tips & Tricks

• Be realistic when projecting revenue and expenses.
• Seek the advice of an accountant or financial analyst when creating financial projections.
• Regularly review and revise your business plan to ensure it stays relevant to your business.

Developing a business plan is a critical step in starting a furniture store. It's a roadmap for building a successful business and is essential for securing funding from investors or financial institutions. By following these 10 steps, you'll be well on your way to launching your own profitable furniture store.

3. Determine The Funding Needs

One of the most important aspects of starting a furniture store is determining how much funding you will require to get it up and running. This can be a daunting task, but it is essential to have a clear idea of your financial needs to ensure long-term success.

• Calculate Your Startup Costs: This includes everything from rent and utilities to inventory and labor costs. Be sure to create a detailed list of all potential expenses to get an accurate estimate of your startup costs.
• Determine Your Operating Expenses: These are ongoing expenses that you will incur while running your furniture store, such as rent, utilities, advertising, and payroll. You should calculate these costs on a monthly basis and plan to have enough funds to cover them for at least six months.
• Explore Financing Options: You may need to consider borrowing money to cover your startup costs and ongoing expenses. Research financing options such as small business loans, lines of credit, and crowdfunding to determine the best fit for your needs.

Additional Tips and Tricks:

• Consider reaching out to industry peers or mentors to get a better understanding of typical funding needs for a furniture store business.
• Review financial projections and potential revenue streams to ensure that you are setting realistic financial goals for your business.
• Be prepared to adjust your funding needs as your business grows and evolves.

By taking the time to thoroughly research and evaluate your funding needs, you can set your furniture store up for long-term success. Remember to plan ahead and be realistic about your financial needs to ensure your business has the best chance of thriving in the competitive retail industry.

4. Seek Funding Sources

Opening a furniture store business requires a significant amount of investment upfront. There are various options available for funding your business, including:

• Personal savings: This is the most common method of funding a small business. It is essential to have a sizeable personal savings account to invest in your business.
• Bank loans: You can approach banks to secure a loan. You might need to provide collateral, such as property, to secure the loan.
• Investors: You can approach private investors, venture capitalists, or angel investors to invest in your business.
• Crowdfunding: This is a relatively new method of funding a small business. You can create a crowdfunding campaign and ask people to invest in your business.

You need to prepare a detailed business plan and financial projections to convince lenders or investors that your business is viable.

• Consider preparing a pitch deck to present to investors. Keep it short and concise.
• Approach non-traditional lenders, such as credit unions or community development financial institutions, if you have trouble securing a loan from a bank.
• Create an online presence through social media and your website. It can help attract potential investors and customers.

5. Research And Analyze The Market

Before opening your furniture store business, it is essential to conduct thorough market research and analysis. This step involves gathering data on your target market, industry trends, and competitors. Proper research and analysis will help you make informed decisions and develop a winning business strategy.

Identify Your Target Market

The first step in researching your market is to identify your target audience. This involves understanding the demographic, geographic, and psychographic characteristics of your potential customers. You can gather this information by conducting surveys, focus groups, or analyzing market data. Once you know your target audience, you can tailor your marketing efforts and product offerings to meet their specific needs and preferences.

Study Industry Trends

Studying industry trends is crucial to stay ahead of the competition. Follow news feeds, join industry associations, attend trade shows, and subscribe to industry publications to stay updated on the latest trends and developments. Knowing the current trends and consumer preferences will help you make better decisions on product offerings, pricing strategies, and marketing efforts.

Analyze Your Competitors

Learning about your competitors is a critical step in market analysis. Conduct a competitive analysis by identifying your top competitors, studying their products, pricing, promotions, and marketing strategies. Analyze their strengths and weaknesses and how your business can differentiate itself from them. You may also find areas of opportunity that your competitors have overlooked.

• Use online tools like Google Trends, SEMRush, and Moz to gather market data and analyze your competition.
• Use social media platforms to study consumer behavior and understand their preferences and needs.
• Join local business associations and networking events to stay connected to your industry and gather relevant data.

SWOT Analysis

A SWOT analysis is a useful tool for assessing your business's strengths, weaknesses, opportunities, and threats. It helps you identify your competitive advantages, potential challenges, and areas for improvement. Use the insights from your research and analysis to create a comprehensive SWOT analysis and use it as a roadmap for your business strategy.

Evaluate Your Market Entry Strategy

Based on your research and analysis, you should evaluate your market entry strategy, including your product offerings, pricing strategies, and marketing efforts. Determine how you can differentiate yourself from competitors and generate demand for your products.

• Determine your product assortment and pricing strategies based on market demand, competition, and your business's financial goals.
• Develop a marketing plan that effectively reaches your target audience and differentiates you from competitors. Your marketing plan should include digital and traditional advertising, public relations initiatives, and community outreach efforts.
• Identify your sales channels and distribution strategies. Determine whether you will sell through your own physical store, online, or wholesale to other retailers.

6. Establish Financing Structures

Starting a furniture store business requires significant investment and proper financing structures. Acquiring funding for your furniture store is an essential step in ensuring that your business not only survives but also thrives. Below are the financing options available.

• Personal Savings: If you have savings, you can invest in your furniture store business. This financing method attracts no interest, and you have full control over your business operations.
• Bank Loans: You can also apply for a bank loan to finance your furniture store business. Bank loans come with specific repayment terms and interest rates. To secure a loan, you need to provide comprehensive financial and business plans to the bank.
• Investors: You can attract investors to your business by selling shares in your company. Investors bring in capital and expertise, but they also want a stake in your business's operations and profits.

Expert Tips:

• Research and compare different financing options to get the best deal.
• Prepare your financial and business plans, including your projected cash flows, P&L statements, and balance sheets.
• Ensure you have a solid credit score and collateral to increase your chances of getting approved for a bank loan.

In addition to securing financing, you need to develop efficient financial management strategies to ensure your business runs smoothly. Here are some strategies to consider:

• Cost Control: Control your costs by managing your inventory, negotiating with suppliers, and minimizing unnecessary expenses.
• Cash Flow Management: Manage your cash flow by keeping track of your expenses and revenues, maintaining a lean inventory, and avoiding overstocking or understocking.
• Debt Management: Manage your debt by creating a debt-repayment plan and negotiating better interest rates and terms with creditors.

Expert Tip:

• Hire a competent bookkeeper or accountant to help you manage your finances effectively.

Establishing financing structures is a crucial step in starting a furniture store business. Proper financing not only provides the necessary capital to launch and sustain your business, but it also helps you manage your finances effectively. Take the time to research thoroughly and choose the right financing option for your business.

7. Identify Legal Requirements (Licenses And Permits)

Starting a furniture store business requires more than just a good business plan and a pile of funds. You need to identify and comply with legal requirements such as licenses and permits. Here are the steps you need to take:

• Research the laws and regulations in your state/country. Legal requirements for starting a business vary depending on the location. For instance, you may need a general business license, a sales tax permit, a zoning permit, and an environmental permit. Research these laws and regulations and ensure that you comply with them.
• Apply for employer identification number (EIN). An EIN is used by the IRS to identify your business for tax purposes. Apply for an EIN online or by mail. You will need this number for tax filings, opening a business bank account, and hiring employees.
• Register your business entity. You may operate as a sole proprietor, partnership, LLC, or corporation. Choose your entity and register it with your state/country. This will ensure that your business is legally recognized and has limited liability protection.
• Obtain necessary permits and licenses. Depending on the nature of your business, you may need additional permits and licenses such as a building permit, fire department permit, health department permit, and a liquor license (if you plan to sell alcohol).

Non-compliance with legal requirements can lead to fines, legal action, and even closure of your business. It's important to ensure that you have met all legal requirements before launching your business.

• Speak to an attorney or a consultant to help you navigate the legal requirements for your business.
• Check for any ongoing fees or renewals required for licenses and permits.
• Understand the process of how to obtain licenses and permits before starting your business.

8. Rent/Lease A Retail Space

One of the most important factors that will determine the success of your furniture store business is the location. The right location can bring in a lot of foot traffic, while the wrong one can lead to a lack of customers. Finding and leasing or renting the ideal retail space requires a lot of research and preparation.

• Step 1: Know Your Budget

Before you start scouting for a retail space, it's important to establish a budget. You need to know how much you are willing to spend on rent in order to determine what kind of retail space is feasible for your business. Consider your projected sales and expenses to determine a realistic budget.

• Step 2: Understand the Rental Market

Knowing the rental market will help you negotiate a fair lease agreement. Research the average rental rates for retail spaces in different locations. Find out about the landlord-tenant laws and regulations in your state. Look for properties that are currently available for rent or lease in your ideal location.

• Step 3: Identify Your Ideal Location

Identifying your ideal location will depend on your target market. You want to choose a location that is easily accessible to your potential customers. Look for retail spaces that are near residential areas or high-traffic commercial areas. Consider if the location has enough parking or if it's located near public transportation.

• Step 4: Work with a Real Estate Agent

A professional real estate agent can help you find and negotiate the best retail space for your furniture store business. They have access to the latest market data, know the best locations for your business, and can help with negotiations. Be sure to hire an agent who has experience working with retail spaces and can help you find the best deal.

• Try to negotiate for a shorter-term lease with the option to renew instead of signing a long-term lease initially.
• Consider leasing a property that previously had a furniture store. This can save you money on renovations and buildouts.
• Try to negotiate for a rent abatement or free rent period to help you get started.
• Step 5: Understand the Lease Agreement

Before signing a lease agreement, it's important to fully understand the terms and conditions. Be sure to read the fine print and ask questions about anything you don't understand. Some important details to pay attention to include the lease term, rent increases, utilities, maintenance costs, and parking fees.

• Step 6: Plan the Layout

Once you've secured a rental space, it's time to plan the layout. Consider the size, shape, and features of the space when deciding where to place your furniture displays and checkout counter. Make sure there is enough space for customers to move around comfortably and that your furniture is displayed in an appealing way.

• Step 7: Secure Necessary Permits and Licenses

Depending on where your retail space is located, you may need to obtain permits and licenses before you can open for business. Check with the local authorities to find out what is required. Some common permits and licenses include a business license, occupancy permit, and building permit.

• Step 8: Furnish and Decorate the Store

You need to create an appealing and comfortable environment for your customers. Furnish your store with the type of furniture you want to sell, and decorate it in a way that showcases your products. Display the furniture in an organized and appealing manner with effective use of lighting.

• Step 9: Launch a Marketing Campaign

Marketing is essential to the success of your furniture store business. Promote your store through a variety of marketing channels including social media, flyers, local newspapers, and community events. Consider partnering with local interior designers to showcase your products and services.

• Step 10: Hire Employees

As your business grows, you will need to hire employees. Hire staff who have a background in sales and customer service. Make sure they are knowledgeable about the furniture products you sell, Honest, and friendly to the customers.

9. Hire Professional Staff And Contractors

When starting a furniture store business, it's essential to have a team of professionals who can help you along the way. The right staff and contractors can make a significant impact on your business's success. Here are some chapters to follow to help you build your team:

Tips & Tricks: Hiring Staff

• Be clear about the roles and responsibilities of each position you are hiring for.
• Define what skills and qualifications you are looking for, and use that as a basis for your hiring decisions.
• Don't rush the hiring process, take your time to find the right people for your business.

1. Determine your staffing needs

Before you start the hiring process, you need to determine your staffing needs. This means thinking about what roles you need for your business to operate smoothly. You may need sales associates, customer service representatives, inventory specialists, or warehouse managers. Make a list of the different positions you need to fill and the qualifications each position requires.

2. Create job descriptions

With your list of positions and qualifications on hand, it's time to create job descriptions. Be clear about the roles and responsibilities of each position. Define what kind of skills and experience applicants should have, as this will become your basis for hiring decisions.

3. Advertise for open positions

With your job descriptions ready, it's time to advertise for open positions. Use online job boards, local newspapers, and social media to reach potential applicants. You can also consider working with a recruitment agency to help you find qualified candidates.

4. Conduct interviews

Once you receive applications, it's time to conduct interviews. Have a clear set of questions to ask each candidate to help you evaluate them properly. Make sure you ask about their relevant experience, skills, and qualifications.

5. Check references and backgrounds

Before hiring anyone, make sure you check their references and conduct background checks. This will help you verify the information provided by the candidate and ensure that they have a good track record.

Tips & Tricks: Hiring Contractors

• Research potential contractors to ensure they have experience in furniture store design and layout.
• Choose contractors who have a good reputation in the industry.
• Get detailed quotes and contracts in writing to avoid any misunderstandings in the future.

6. Determine your contracting needs

In addition to hiring staff, you may also need to hire contractors to help with your store's design and layout. Determine what kind of work you need done, whether it be contracting an architect or an interior designer, you need to find someone with experience in furniture store design.

7. Research potential contractors

Once you have determined your contracting needs, it's time to research potential contractors. Look for professionals with experience in designing furniture stores and check their track record. Read reviews and testimonials, and check their portfolio to ensure their style matches your vision.

8. Get detailed quotes and contracts

Before hiring any contractor, get detailed quotes and contracts in writing. Make sure everything is detailed, down to the materials and labor included. This helps avoid any misunderstandings in the future and ensures everyone is on the same page.

9. Communicate regularly with your team

Once you have a team of staff and contractors, make sure you communicate regularly. Hold meetings to ensure everyone is on the same page and discuss any issues that arise quickly. This helps ensure your store operates smoothly and efficiently.

10. Monitor your team's performance

Finally, it's essential to monitor your team's performance regularly. Keep track of sales, inventory, and customer feedback to evaluate your team's strengths and weaknesses. Use this information to make any necessary changes to ensure your business is successful.

10. Implement Marketing And Advertising Strategies

Marketing and advertising are critical components of any business, and your furniture store is no exception. In fact, effective marketing and advertising strategies can be the difference between success and failure in the highly competitive furniture industry.

• Identify Your Target Audience: Before you start any marketing or advertising campaigns, you need to know who your target audience is. Who are your ideal customers? What are their needs, wants, and desires? Once you have a clear understanding of your target audience, you can tailor your marketing and advertising efforts to reach them.
• Create a Strong Brand Identity: Your brand identity is what sets you apart from your competitors and helps customers identify and remember your business. Invest in creating a strong brand identity that includes a logo, website, social media presence, and consistent messaging.
• Utilize Social Media: Social media platforms like Facebook, Instagram, and Twitter are valuable tools for reaching and engaging with your target audience. Create a social media strategy that includes regular posting, engaging with followers, and running targeted ads.
• Offer Promotions and Discounts: Everyone loves a good deal, so offering promotions and discounts can help attract new customers. Consider offering a discount for first-time customers, running a seasonal promotion, or offering a loyalty program for repeat customers.
• Partner with Other Businesses: Collaborating with other businesses, such as interior designers or home builders, can help expand your reach and attract new customers. Consider offering exclusive discounts or promotions to customers referred by these partners.
• Attend Trade Shows and Events: Trade shows and events can be great opportunities to showcase your products and connect with potential customers. Research relevant trade shows and events in your area and consider participating as an exhibitor.
• Consider investing in professional photography to showcase your products.
• Engage with customers on social media by responding to comments and messages.
• Create a referral program to incentivize current customers to refer new business.

By implementing effective marketing and advertising strategies, you can maximize your furniture store's potential and attract more customers. Remember to continually evaluate and adjust your strategies to ensure they are reaching your target audience and delivering results.

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How to Start an Online Store (2024)

Last year, eCommerce generated over $1 trillion in sales. That’s nearly 4% of the U.S. economy. Have you ever wondered how to start an online store?

I Heart Dogs founder Marshall Morris has achieved remarkable success through community building. He’s making nearly $22 million in annual revenue with a 20% profit margin.

We’ll share his secrets to developing a following of more than 50 million online supporters. We’ll also explore the role feeding 30 million dogs and helping veterans has played in his success and how you can start an online store using his strategies.

Get ready to learn even more about how to start an online store.

How to Start an Online Store

Starting an online store can be an exciting venture, but it requires careful planning and execution. We’ll cover the following topics to help you understand how to start an eCommerce site and make a great living doing it.

Step #1. Choose a Product or Niche

Step #2. perform market research, step #3. create a business plan, step #4. choose a business model, step #5. select a platform, step #6. choose online store business names, step #7. build an online store, step #8. set up payment gateways, step #9. organize product listings, step #10. set up shipping and delivery, step #11. implement security measures, step #12. ensure legal and regulatory compliance.

• Step #13. Test Your ECommerce Store

Step #14. Launch Your Own Online Store

Step #15. market and promote your online store, step #16. analyze and optimize your online store.

Read from start to finish or click on any of the links above to jump to that section.

Decide what products you want to sell. It could be physical products, digital goods, or handmade items. Make sure to choose something you’re passionate about that also has market demand.

Let’s look at each of the product classes to help you understand what to sell online.

Physical Products

Whether you’re selling your own products on eCommerce platforms or using marketing tools to sell other brands in your online business, the most commonly searched product categories are:

• Beauty products
• Office supplies

You can store products in your home or business, or you can pay a fulfillment center to manage the shipping. Learn how to use Amazon Fulfillment .

Marshall told us:

We roll out 50 new products a year. We ask our community if they want this product to decide whether to make it.

He also commented on his troubles using a fulfillment center.

In the middle of selling, the third-party logistics company broke up with us.

Check out our interview with him below:

Next, let’s look at selling digital products in online stores.

Digital Products

Digital products have become increasingly popular due to their low overhead costs and the ability to reach a global audience instantly. Here are some good digital product ideas you can consider selling:

• Ebooks: Share your expertise on a particular topic by writing and selling ebooks. Nonfiction ebooks that provide valuable information, how-to guides, and self-help content tend to perform well.
• Online courses: Create and sell online courses on subjects you’re knowledgeable about. Platforms like Teachable, Udemy, and Coursera can help you reach a wider audience.
• Stock photos and graphics: If you are skilled in photography or graphic design, you can sell stock photos, illustrations, icons, or other digital visual assets on platforms like Shutterstock or Adobe Stock.
• Music and audio products: Compose and sell original music, sound effects, jingles, or audiobooks. Websites like iTunes or Bandcamp can be helpful for reaching your audience.
• Printables: Design printable planners, calendars, or worksheets. Many printables focus on productivity and organization, but you can use your creativity to design all types of charts or templates.
• Apps: If you have programming skills, you can create and sell software applications or mobile apps.
• Web templates and themes: Design and sell website templates and themes. Popular platforms include WordPress, Shopify, or Joomla.
• Digital artwork: Create and sell digital art, illustrations, or 3D models. Websites like Etsy or DeviantArt can be useful for selling digital artwork.
• Digital knitting and crochet patterns: If you’re into knitting or crochet, you can design and sell digital patterns for unique designs.
• Video content: Produce and sell video content such as stock footage, video effects, or templates for video-editing software.
• Virtual event tickets: Organize and sell tickets to virtual conferences, classes, and events.
• Language courses: If you are multilingual, create and sell language learning courses or resources.
• Resume and CV templates: Design and sell professional resume or CV templates for jobseekers.
• Fonts: Design and sell original fonts for use in graphic design and digital projects.
• Social media templates and content: Create and sell social media templates or content packs to help businesses with their online presence.

Digital products should be high quality. You should also provide customer support and how-to guides when selling digital products. In addition, you’ll want to focus on marketing and promoting your products effectively to reach a broader audience and increase sales.

Learn more about creating digital products in our interview with a course creator who’s making nearly $50K per year:

Homemade Items

Selling homemade items online can be a rewarding way to turn your hobbies and skills into a business. Here are some popular homemade items that often perform well in online stores:

• Handmade crafts: This category includes a wide range of items such as pottery, candles, soap, bath bombs, woodwork, and jewelry. If you knit or crochet, you might also decide to offer clothes, scarves, or plushies.
• Artwork: Sell original paintings, illustrations, or digital prints of your art.
• Personalized gifts: Offer custom-made items such as personalized mugs or engraved cutting boards.
• Baked goods: If you enjoy baking, consider selling homemade cookies, cakes, and desserts. Just be aware that selling food may require special licensing or permits.
• Homemade sauces: Create and sell homemade sauces, jams, pickles, or spice blends with unique flavors.
• DIY kits: Put together DIY crafting or cooking kits. These kits provide customers with the necessary materials and instructions to create a final product without having to assemble everything on their own.
• Natural skincare products: Offer homemade skincare products such as moisturizers or natural soaps that are made from organic ingredients.
• Pet accessories: Create and sell handmade pet collars, bandanas, toys, or pet-themed products.
• Home decor: Craft and sell home decor items like decorative pillows or wall hangings. Depending on the equipment you have available, you can also create custom wall decals.
• Herbal teas and infusions: If you have knowledge of herbs, create and sell herbal tea blends and infusions.
• Scented candles: Make scented candles with unique fragrances and designs.
• Embroidered or hand-painted items: Personalize clothing, home linens, or accessories with embroidery or hand-painted designs.
• Seasonal and holiday items: Design and sell handmade seasonal or holiday-themed decorations and gifts.

Pro Tip: Quality and customer service are essential to building a strong brand. Investing in professional photography can help your products stand out on social media and your online store.

Check out our interview with Jazmin Richards, who started Blk Sunflower and made $300K in the first 18 months:

Don’t start an online store before you conduct market research. You’ll want to understand your target audience, competitors, and the demand for your chosen products. Discovering more about your audience will help you analyze opportunities and potential roadblocks before starting your eCommerce business.

Keep reading to learn more about identifying a target audience.

Target Audience

Your target market consists of people who want to buy your products. It’s important to understand their demographics, interests, and how much they spend on product categories.

You should also research where your target customers hang out online. An eCommerce website that sells toys will probably want to market on sites like YouTube Kids and TikTok but probably not X or LinkedIn.

Meanwhile, the opposite will likely be true for a spreadsheet seller who wants to market their online tools.

Competitors

Before you start an online store, you’ll also want to understand the other companies in the market. This involves researching how they get customers, their sales channels, and what they charge.

Online businesses like yours will be competing against massive online marketplaces like Etsy and Amazon as well as local and global small businesses.

You’ll need people who want to buy your products to become a profitable online store. Find out the demand before spending a lot of time and money on a particular niche.

Pro Tip: Research the total addressable market (TAM), which is the total amount of money that a company makes if you corner 100% of the market. While it’s unlikely an online store will ever reach 100%, it’s still useful to know the market size.

It’s also helpful to know how much the average business in the industry makes in revenue and profit margin. Your online store may experience seasonal fluctuations, so make sure you understand the industry’s seasonality.

Learn more about conducting market research .

Next, you’ll want to write a business plan for your online store.

Outline your business strategy, financial projections, marketing plan, and operational details. A well-thought-out business plan will guide your online store’s growth and success.

Business Strategy

Online stores can adopt various business strategies to achieve their goals, attract customers, and increase revenue. Consider some of these common business strategies for online stores:

• Niche market: Focusing on a specific part of the market allows you to cater to a niche market of customers who need a limited set of products.
• Cost: Another strategy is to offer products at lower prices than competitors while maintaining an acceptable level of quality. This could involve sourcing products at a cheaper price or lowering your profit per item.
• Differentiation: Differentiate your online store by offering unique products or a superior shopping experience. Creating a strong brand identity and emphasizing how your store is unique can help you stand out from competitors.
• Customer relationships: Prioritize building strong relationships with your customers. Personalized marketing and loyalty programs can help you retain customers and encourage them to come back for future purchases.
• Social media marketing: Take advantage of social media to connect with your customers, drive traffic, and increase awareness of your company.
• Content marketing: Creating relevant content makes it easier to attract and retain customers. Content marketing can include blog posts, videos, or educational resources.
• Omni-channel experiences: Customers should have the same overall shopping experience regardless of whether they’re online, in store, or on social media.
• Upselling and cross-selling: Look for chances to upsell customers on more expensive products or convince them to add extra items to their cart. These techniques increase the overall value of your average order.
• Free shipping: Offering free shipping can encourage customers to complete their purchase without having to pay extra. This strategy is especially effective if your competitors charge for shipping.
• Flash sales and limited-time offers: Putting a time limit on discounts creates a sense of urgency. If customers are on the fence about buying from your eCommerce platform, they might be swayed by a special deal.
• Subscriptions: Offer subscription plans that provide customers with regular deliveries or access to special content. Subscriptions can build customer loyalty and create a recurring revenue source.

Remember that the effectiveness of these strategies may vary depending on your target market and what you sell. Keep an eye on how each strategy is working and make adjustments as needed.

Financial Projections

Creating financial projections for an online store is essential for understanding the potential profitability and growth of your business. Remember that financial projections are educated estimates and not precise predictions. They’re planning tools to guide your decision-making and help you set realistic goals for the future.

Before you start making projections, it’s important to have a good idea of your expenses, revenue, and overall profitability. Calculating your net profit or loss is a fairly simple process:

• Collect data: Collect information about how your online store is performing. If you just opened a new business, you can also use market research data about your industry to come up with an estimate.
• Identify your revenue: Figure out your main sources of revenue. Depending on your business model, this could include a mix of subscriptions, product sales, and other sources.
• Sales forecast: Estimate your monthly or annual sales based on what you’ve learned so far. Consider factors like seasonal demand and conversion rates.
• Cost of goods sold (COGS): Calculate the direct costs associated with producing or acquiring inventory. This includes the cost of materials, manufacturing, and shipping.
• Operating expenses: Come up with an estimate of your operating expenses. Some expenses will be fixed, while others will change from month to month. This category includes things like rent and web hosting.
• Gross profit: Subtract the COGS from your projected sales to calculate your gross profit. This is how much money you’ll have to cover operating expenses and turn a profit.
• Net profit or loss: Subtract your operating expenses from gross profit to determine your net profit or loss. If your expenses are more than your revenue, you’ll have a net loss.

Once you know more about your net profit or loss, you can calculate a break-even point. This is the minimum amount you need to make to cover your expenses and start making money.

Pay close attention to when you have cash coming in or going out. Analyzing cash flow will help you understand when you’ll have cash available to cover expenses.

A projected balance sheet will show your online store’s assets, liabilities, and equity at a specific point in the future. Your calculations should include cash, inventory, accounts payable, and any other financial transactions.

Over time, you can conduct a sensitivity analysis to see how variables such as expenses and pricing affect your projections. A sensitivity analysis can also make it easier to identify potential risks and opportunities.

It’s crucial to be conservative in your estimates and consider possible risks and uncertainties that may impact your business. If you’re unsure about financial forecasting, consider seeking assistance from a financial advisor or accountant.

Marketing Plan

Creating a comprehensive marketing plan is crucial for the success of your online store. A well-designed marketing plan will help you attract customers, drive sales, and improve brand awareness.

Your marketing plan should be based on the market research you’ve already conducted. Once you have a strong understanding of your target market, you can set specific marketing goals such as expanding your following on social media.

Pro Tip: Identify your store’s unique selling proposition (USP) and what sets you apart from the competition. Emphasize your USP in all marketing and customer communications.

Let’s review some additional steps you can take to highlight your USP and connect with your target audience:

• Search engine optimization (SEO): Use SEO best practices to improve your website’s organic search visibility. Focus on relevant keywords, quality content, meta tags, and backlinks to rank higher in search engine results.
• Content marketing: Create engaging content that resonates with your target audience. You can use a mix of blogs, videos, and infographics to teach your customers new things and establish yourself as an authority.
• Social media: Choose the appropriate social media platforms based on your target audience. In addition to posting your own content, social media allows you to communicate directly with customers.
• Email marketing: Building an email subscriber list lets you communicate with your customers on a regular basis. You can keep in touch by sending product updates, coupons, or other types of content.
• Paid advertising: Use paid advertising channels like Google Ads to drive targeted traffic to your online store. You’ll want to set a budget and monitor the performance of your campaigns.
• Partnerships: Partnering with other brands or businesses makes it easier to expand your reach and cross-promote. There may also be bloggers and influencers in your niche who are interested in working with your brand.
• Customer reviews: Encourage satisfied customers to leave reviews on your website and social media platforms. Positive reviews build trust and credibility.

Marketing takes time and persistence. You can use tools like Google Analytics and social media insights to measure website traffic and conversion rates. If a campaign isn’t working, you’ll probably need to revisit your marketing plan and how much you’re investing in that area.

Operations Plan

An operations plan outlines the specific processes and procedures you’ll need to follow to run your business. Basically, it provides a detailed road map for how your business will operate on a day-to-day basis.

Your operations plan should include the following elements:

• Business location: Describe the physical location of your business and any facilities you may need in the future.
• Production process (if applicable): Outline the steps involved in producing your products or delivering your services. This section should cover quality control and production capacity.
• Supply chain: Explain how you will handle your supply chains and source vendors.
• Inventory management: Detail how you will track and manage inventory levels to make sure you always have enough materials or products in stock.
• Order fulfillment and delivery: Explain how you’ll process orders and ship them to customers. This section should also include information about delivery and shipping.
• Risk management: Identify potential risks and describe the steps you’ll take to mitigate them. This could include contingency plans for emergencies and business continuity strategies.

After you’ve outlined these basic parts of your plan, it’s time to consider the internal support you’ll need to operate. Here are some of the key support functions that most businesses rely on:

• Customer service: Outline how you’ll respond to customers’ questions and concerns. Which channels will you have available for customer requests?
• Information technology: Think about the infrastructure required to support your operations. List any hardware, software, security measures, and data management solutions you anticipate using for your business. You could also add information about any potential upgrades or plans to automate in the future.
• Human resources: You may not need a formal human resources department depending on the size of your business. However, you should still describe the organizational structure and who’s taking responsibility for recruiting, performance, and employee development.
• Health and safety: Explain the health and safety protocols you’ll put in place to protect employees and customers.
• Legal: Address any legal and regulatory requirements related to your business operations. This could include licenses, permits, and environmental regulations.

Your operational plan should also set specific timelines and milestones for achieving operational goals. This will help you ensure that your business stays on track over time.

An operational plan should serve as a reference document for yourself and your team to ensure smooth day-to-day operations and predictable long-term growth.

Determine your business model, which could include options like dropshipping, an inventory-based model, or print on demand.

Dropshipping Products

Dropshipping products is a wonderful way to run an eCommerce store. You’ll be responsible for creating a website and marketing your eCommerce business. The dropshipping company handles all the fulfillment.

Here are the basic steps:

• Connect the API to your online store.
• Market the products.
• Customer places an order.
• You approve the order and pay the dropshipper.
• Dropshipping company packs and ships the order.
• You keep the profits.

The startup costs for an eCommerce site are less expensive this way since you don’t need to purchase inventory in advance for a dropshipping business. You only pay for products after a customer places an order, which reduces the risk of having unsold inventory.

When you dropship products, you can also offer a broader selection of products without the need to physically store them. Plus, you can run your business from anywhere without having to stay close to a physical facility or warehouse.

The downside is that you’ll likely pay more per product than if you buy inventory on your own in bulk. You’ll also have less control over things like shipping times and quality control. It can be challenging to provide a consistent customer experience when products are shipped from various suppliers.

Weighing these advantages and challenges will help you determine whether dropping is right for you. Learn more about dropshipping .

Carrying Inventory

Carrying inventory involves purchasing and storing products in a warehouse or physical location until they are sold to customers. With this model, you’ll have full control over product quality, inventory levels, and shipping times.

Buying in bulk allows you to negotiate lower unit costs and increase your profit margins. You’ll also have the freedom to customize packaging and add personalized touches to improve your brand identity.

At the same time, purchasing inventory requires a larger upfront investment. You’ll also need to manage your own inventory and make sure that you have everything in stock on time. There’s a risk of holding unsold inventory, which ties up capital and may lead to losses if your products become outdated.

Ultimately, the decision between dropshipping and carrying inventory depends on your financial capabilities, risk tolerance, and long-term vision for your online store. Some businesses may even choose to combine both approaches.

Print on Demand

A print-on-demand system works similarly to dropshipping. It’s commonly used when people start an online store.

The supplier will carry blank items like T-shirts or mugs, then add designs to it after a customer has ordered and paid. Once the item is printed, the printer will ship it to the customer directly.

This model is appealing for eCommerce sites since you won’t need to hold your own inventory. The downsides to this method are the lower profit margin and the time it takes products to reach customers.

Subscriptions

Business models using a subscription enable small business owners to get repeat sales with ease. Subscriptions are great for essentials like razors and other products that people replenish on a regular basis.

Pro Tip: Make sure to monitor your churn rate when you have subscriptions. Online shoppers will often cancel the subscriptions, especially if you offer the first month free. You’re still responsible for the card fees when an order is canceled.

Focusing on digital products when you start an online store can be highly profitable. Your eCommerce website will collect users’ information and online payments, then provide access to the digital content via email, onsite downloads, or entry to your platform.

As time goes on, this business model can approach up to 90% profit. Just ask Graham Cochrane, who started with $50 and is making $160K per month using the same system as when he first entered online sales.

Choose an eCommerce platform that suits your needs. Popular options include Shopify, WooCommerce (a WordPress plugin), and BigCommerce. Each platform has its strengths and limitations, so research them thoroughly to find the best fit for your store.

When you start an online store, you’ll likely consider two main options: Shopify or Wix.. Shopify is the preferred eCommerce platform for many small business owners because they:

• Have an easy-to-use interface
• Don’t require a developer (but you can hire certified ones)
• Support mobile shopping
• Offer lots of free and paid apps that are fully integrated into the system
• Manage security and compliance
• Have a massive community and resources section
• Offer numerous payment gateways
• Can be easily scaled with your business
• Support SEO
• Offer 24/7 customer support
• Provide marketing and analytics tools
• Connect to most online marketplaces

Overall, Shopify is an all-in-one solution that’s user friendly with ongoing support for entrepreneurs. This is an attractive option if you’re looking to start and grow your online store without getting bogged down by technical complexities.

You can begin selling online through Amazon without having your own eCommerce website, but they take a commission from each sale. You’ll also need to store your products in an Amazon warehouse to qualify for Amazon Prime.

Check out our interview with the owner of Shed Defender to learn how to start selling on Amazon:

WooCommerce

WordPress is the world’s most commonly used website builder. For an online store website, you’ll want to use the WooCommerce plugin. 

I personally find WooCommerce to be more complicated than Shopify, but most eCommerce website builders use it. We even use it at UpFlip.

BigCommerce

The eCommerce platform BigCommerce is similar to Shopify but uses coding that more people will be familiar with. Both eCommerce platforms offer similar pricing, but one of the big benefits of this company is the ability to have multiple storefronts for one price.

Next you’ll want to choose your store name.

An online store business name is used in various places to establish and promote the brand identity of the business. Here are some key areas where your business name will appear:

• Website domain
• Logo and branding
• Social media profiles
• Marketing materials
• Packaging and labels
• Email addresses
• Legal documentation
• Invoices and receipts
• Customer service

It’s essential to choose a unique and memorable business name that reflects the identity of your online store and aligns with your products or services.

Additionally, check to see that the online store name is not already in use by another business and that the domain name is available using our online store name generator . 

A well-chosen business name can assist in attracting customers and building brand recognition.

Build an online store that’s visually appealing and user friendly. Many eCommerce platforms offer predesigned templates that you can modify to match your brand.

You’ll want to include the following elements when you create an online store:

• Header and footer menu
• Product category pages
• Product pages
• Checkout page
• Thank you page

eCommerce websites will also need to:

• Include high-quality photos.
• Accept payments online.
• Include product descriptions.
• Use terminology that people type into search engines.
• Collect sales tax.
• Calculate shipping costs.

Check out the I Heart Dogs website to see how they designed their eCommerce store.

Enable secure and convenient payment options for your customers. Popular choices include credit/debit cards, PayPal, Apple Pay, and Google Pay.

You’ll want to consider the payment processor transaction fees and whether you’ll also need to accept payments in person. Most eCommerce stores offer multiple payment options.

I Heart Dogs offers credit card and Google Pay on their own site.

Online retail relies on technology to create a similar shopping experience to what you would have in store.

I Heart Dogs uses the following categories:

• Top sellers
• New arrivals
• Dog supplies

The site then breaks these larger sections into subcategories and individual product pages. Each product page shows how many shelter dogs a purchase will feed.

When you click to buy a product, it then shows an upsell page where you can buy products that are commonly bought with your selection.

From there, you can choose to continue online shopping or check out. This small online store also accepts online payments for charity in multiple locations.

Honestly, I love its mission, but the number of times it tries to get its target customers to donate money can be a little distracting. If you choose to use their strategy when you start online store operations, I’d recommend reducing the number of upsells to one or two offers.

One of the most challenging aspects of how to start an online business is choosing shipping tools. A benefit of creating an online store that uses dropshipping or a print-on-demand model is that the provider will normally specify the shipping costs.

Most eCommerce platforms also have arrangements with carriers to help you ship from your own store more successfully. Make sure to decide your shipping strategy in advance of opening, including shipping carriers, rates, and delivery regions.

Consider offering free shipping or promotions to attract customers. The free shipping isn’t really free, though. You include it in the cost of goods sold when you start an online business.

If you pay $5 for an item and shipping is $7, the cost of goods sold is $12. That means if you want to make 50% COGS, you need to sell the product for $24.

Ensure your online store is secure. Use SSL certificates and other security measures to protect customer data.

Research and comply with legal requirements regarding how to start a business online in your state. You’ll need a business structure, employer identification number, business license, and tax permit. Your online store will also need to follow data protection laws.

Check out our business hub for more in-depth information on each of these topics.

Step #13. Test Your eCommerce Store

Before the official launch, thoroughly test your online store to ensure that everything is functioning correctly, from browsing and shopping to the checkout process.

Once you’re confident that everything is in place, launch your online store. Then you’ll want to turn your attention to marketing.

Start promoting your online store through various marketing channels such as social media, email marketing, and paid advertising.

Marshall explained his basic marketing strategy:

• Build a community.
• Lead them in with a fundraiser or small things like a sticker or mug.
• Collect their contact information.
• Build the relationship.
• Sell more items.

Regularly analyze your store’s performance, sales data, and customer feedback. Use this information to improve and optimize your online store for better results.

Remember that building a successful online store takes time and effort. Being patient and staying dedicated will allow you to continuously adapt to changing market conditions and customer preferences.

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Money blog: One of country's top restaurants reverting to 1994 prices

Welcome to the Money blog, a hub for personal finance and consumer news and tips. Today's posts include Nationwide slashing mortgage rates and a Michelin restaurant reverting temporarily to 1994 prices. Listen to Ed Conway's analysis of UK borrowing and potential tax rises as you scroll.

Thursday 22 August 2024 19:09, UK

• Nationwide trumps rivals to offer new lowest mortgage rate
• One of country's top restaurants reverting to 1994 prices

Essential reads

• Savings account that could put your child on strong financial footing at 18
• 'I cook with air fryer in living room after kitchen win went wrong'
• Ed Conway : Are tax rises inevitable - or is chancellor considering another way?
• Listen to Conway on the Daily above and  tap here to follow wherever you enjoy podcasts

Tips and advice

• How to get money back when purchase over £100 goes wrong
• Cheap Eats : Top Yorkshire chef shares Yorkshire pudding secrets
• 'Should I top up my NI and could it really get me £6,000 extra?'

Nutella ice cream is making its UK debut.

The Ferrero Group is first selling the flavour in Morrisons, with a wider rollout planned for later this year.

You can expect £1.8m-worth of marketing on TV, social media and other avenues to support the launch.

Abolishing the two-child benefit cap is unaffordable due to an  unexpected increase in government borrowing, a Treasury minister has said.

Darren Jones conceded it was not a decision the government wanted to make "in our hearts".

Borrowing in July stood at £3.1bn - £2bn more than most economists expected.

Asked about the prospects of abolishing the two-child benefit cap in the autumn budget, Mr Jones told the BBC: "You have to just look at the economic statistics that we're talking about today to understand why we just can't afford to do that right now."

Britain's competition watchdog has dropped investigations into Apple and Google for alleged anticompetitive behaviour.

The two tech giants previously came under fire for imposing charges on app developers and for holding a monopoly over the distribution of apps in the UK.

In a market study published in 2022, the Competition and Markets Authority concluded that both companies had too much influence, restricting open and fair competition in the marketplace. 

The watchdog has now decided to drop its investigation pending new laws governing digital markets that may affect the outcome of any case.

The Digital Markets, Competition and Consumers Act is expected to come into force later this year. 

Apple has recently made changes to its app store policy to allow developers to communicate with potential customers and promote products outside the Apple store.

A Google spokesperson said it had made "a number of significant commitments to further broaden the billing options" available to developers.

Parents may struggle with the cost of school uniforms this year, figures suggest.

Half of UK parents say school uniforms and supplies are either very or too expensive, a Loqbox survey found.

Another survey conducted by Moneyboat found parents spend on average £122 on school uniform, rising to £150 in London.

Parenting coach Isobel Mary Champion has shared six tips to make them last longer...

1. Don't tumble dry uniform items or wash them with bulky items like towels - this will make your uniform bobbly and age more quickly. Line dry if possible.

2. Don't wash your child's uniform every day unless it's absolutely necessary - most items (especially in the cooler months) can be worn a couple of times at least before they need washing. This will also extend their lifespan.

3. Most schools have a "nearly new" sale a few times a year where parents can sell used uniform that is still in good condition. Think sustainably and save money by not always buying brand new.

4.  Yes, you can buy your branded items (those with the school logo) from the official retailer - but all other bits and bobs you can usually find cheaper elsewhere - shirts, shorts, trousers, skirts.

5. Mend small rips, fallen hems and loose buttons as soon as possible to prevent the damage from getting worse and rendering the item unwearable.

6. Get your child to change out of their uniform as soon as they get home - this will reduce damage from carpet wrestling, "floor is lava" furniture climbing, dinner spillages, garden play, and all kinds of extra curricular movement.

Asda has introduced a new range of wines from lesser-known regions - all costing £7 or less. 

The Wine Atlas range combines "impressive quality and great value", the supermarket said. 

The wines come from lesser-known grape varieties: Carricante in Sicily, Greece's Rhoditis, Feteasca Regala in Romania, Monastrell Rosado in Spain, Portugal's Jaen and France's Ile de Beaute Corsican Rose.

The supermarket said in a statement: "It's time to put a pause on pinot grigio and say see you soon to sauvignon blanc, because the new range is all about encouraging Brits to broaden their wine horizons by discovering new favourites from lesser-known regions."

The Money blog asked Tom Tryon, the founder of the wine club Vinetribe, for his view, and he said Asda's range was "a great way to showcase some lesser-known grape varieties that will really surprise you.

"We've all had enough sauvignon blanc to last a lifetime, so why not go for it and try something new? 

"Best of all, wines with less famous grapes have to really prove themselves to get on the shelf, so I generally think you get far more for your money," he added.

Economics and data editor Ed Conway   has warned there's going to be "a lot of bad news" in the autumn budget.

Tax rises will feature, but with the chancellor having ruled out raising income tax, national insurance and VAT, what could be set for a hike?

Inheritance tax

One of the taxes most likely to be hiked - the threshold could be lowered from £325,000 when someone dies, or people could pay more than 40% on some inheritances.

A leaked recording of Treasury minister Darren Jones, from before he was in government, suggested he favours such a change.

Council tax

There is speculation council tax is viewed as "out of date".

While Labour said before the election it would not change the banding of council tax, there may be other updates on the table.

Capital gains tax

This levy is imposed on the profit of a sale of assets.

The government could reduce the minimum limit, or raise the percentage of tax levied - with some calling for it to be set in line with income tax.

Business rates

This tax is what business pay instead of council tax on their properties.

The calculations for how much people pay could be updated to reflect a more current situation with property prices.

A tax paid on properties over £250,000, which increases for second homes.

Changing this could increase the volume of transactions and raise more money.

Political reporter Alix Culbertson  goes into more detail on the topic of taxes in the piece here...

One of London's most lauded Michelin star restaurants is turning the clock back on its prices by 30 years next month.

The nose-to-tail cooking specialists at St John, in Smithfield, will charge diners what they would have paid when the eatery first opened its doors in 1994.

Celebrating its 30th anniversary, St John will offer the same dishes it served up in the mid-90s for as little as £3.50 (Welsh rarebit, if you were wondering).

Roast bone marrow and parsley salad will set you back just £4.20, while pheasant and trotter pie comes in at a very reasonable £18 between 9 and 27 September.

The Michelin Guide describes the restaurant as creating a "joyful experience" with "very little ceremony".

"As one of the foremost proponents of nose-to-tail cooking, this is the place to try new things," it reads.

The restaurant puts seasonality "at its core", said the guide, which recommends ordering the warm madeleines for the journey home.

Nationwide today slashed mortgage rates across its range - with one of its deals now the cheapest on the UK-wide market.

A rate of 3.78% is now available to any new and existing customers looking to move home on a five-year fix. 

This is how that compares...

The building society says other cuts apply across buyer types.

Justin Moy, managing director at EHF Mortgages, told industry news agency Newspage: "These are significant headline-grabbing rates from Nationwide. These are rates we haven't seen for at least two years. 

"They will give borrowers plenty of confidence to get back into the property market."

Rates have been edging down in recent months as lenders price in forecast cuts in the base rate from the Bank of England.

Here's how average rates currently look - though it's worth saying that many buyers will be able to find deals lower than these averages...

McDonald's is to open more than 200 new restaurants across the UK and Ireland over the next four years.

It will be the fast-food chain's largest expansion programme for more than 20 years and will create 24,000 jobs.

New restaurant formats will be tested as part of the rollout, McDonald's said, including trials for smaller site formats and  "drive to" restaurant sites.

"We have come a long way since we first opened our doors in Woolwich 50 years ago," said Alistair Macrow, chief executive officer of McDonald's UK&I.

"I'm delighted that in this milestone year we are able to demonstrate our ongoing commitment to growth, and announce the creation of new jobs across the country."

The growth plan is driven by a £1bn investment by the chain and its franchisees.

McDonald's revealed a target of building 10,000 more restaurants globally by 2027.

It currently has 1,435 restaurants in the UK, with around four-fifths owned and operated by franchisees.

But this year it was overtaken by Greggs in the breakfast market - with the bakery chain now turning its focus to evening meal customers.

By James Sillars , business reporter

It's a positive start on the FTSE 100.

A 4% rise in JD Sports stock helped the index climb 0.2% to 8,300 points at the open.

Sports fashion retailer JD had earlier reported a 2.4% rise in underlying sales during its second quarter.

That uptick was not enough, however, to bolster the company's annual profit forecast.

Shares fell sharply in January when JD issued a profit warning, blaming higher costs and poor demand.

They remain about 20% down in the year to date.

Elsewhere, oil costs have continued their decline of the past week.

A barrel of Brent crude currently costs $76.

Fears of weak global demand have been largely responsible for the recent easing.

On the face of it, yesterday's public finance numbers provide a clear rationale for the course of action the chancellor has (according to those I talk to in Whitehall) already decided upon: more taxes and more spending cuts in this October's budget.

It will, I'm told, be pretty grim.

However, it's worth saying there is one other way for the chancellor to create extra headroom against her fiscal rules, which is to change the particular measure she's judging that headroom against.

A lot of economists believe the net debt statistic she inherited from the Conservatives is the wrong one to use in her fiscal rules - and that she should use the country's total national debt, not excluding any debt owned by the Bank of England.

Long story short, if she uses this other measure (and I'm told this is something she is considering) then she suddenly has a lot more headroom.

Even so, don't expect her to change the tune at the budget in October. There will be more bad news to come.

Read my full analysis here ...

The new government is considering whether to scrap health and safety regulations that are seeing homebuilders shrink the size of windows, or put bars on them, to stop people falling out, the Money blog can reveal.

The rules, introduced in December 2021 by the Conservative government, are in the first instance designed to guard against "unwanted solar gains" - or, to put it another way, homes becoming too hot as the climate warms.

This, critics say, is resulting in builders installing smaller windows on new builds.

But they also require builders to account for safety - and so upstairs windows in new-build homes must now be at least 1.1 metres (3.6ft) from the floor.

Former minister Michael Gove launched a review of the rules - with the consultation concluding before the Tories lost power in July.

The new government has yet to make a decision.

A spokesperson for the Ministry of Housing, Communities and Local Government told the Money blog: "We have closed a call for evidence on building regulations and are considering the responses before we make our decision."

Earlier this year, Nicholas Boys Smith, chairman of the Create Street thinktank on urban design, told the Telegraph the "foolish" regulations have "incentivised the building of extremely small windows".

"People are not able to look out of their windows if they are sitting down," he said.

"This means, in a normal-sized suburban house, first-floor rooms are darker and less pleasant. 

"It's making it nearly impossible to create houses that fit in with their 20th century, Edwardian, Georgian or Victorian predecessors. The majority of England's most beloved buildings would violate these regulations."

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Harris Plans to Ban Grocery ‘Price Gouging.’ What Does the Evidence Say?

Price increases when demand exceeds supply are textbook economics. The question is whether, and how much, the pandemic yielded an excess take.

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By Jim Tankersley and Jeanna Smialek

Reporting from Washington

Vice President Kamala Harris’s economic agenda for her presidential campaign features an argument that blames corporate price gouging for high grocery prices.

That message polls well with swing voters. It has been embraced by progressive groups , which regularly point to price gouging as a driver of rapid inflation, or at least something that contributes to rapid price increases. Those groups cheered the announcement late Wednesday that Ms. Harris would call for a federal ban on corporate price gouging on groceries in an economic policy speech on Friday.

But the economic argument over the issue is complicated.

Economists have cited a range of forces for pushing up prices in the recovery from the pandemic recession, including snarled supply chains, a sudden shift in consumer buying patterns , and the increased customer demand fueled by stimulus from the government and low rates from the Federal Reserve. Most economists say those forces are far more responsible than corporate behavior for the rise in prices in that period.

Biden administration economists have found that corporate behavior has played a role in pushing up grocery costs in recent years — but that other factors have played a much larger one.

The Harris campaign announcement on Wednesday cited meat industry consolidation as a driver of excessive grocery prices, but officials did not respond on Thursday to questions about the evidence Ms. Harris would cite or how her proposal would work.

There are examples of companies telling investors in recent years that they have been able to raise prices to increase profits. But even the term “price gouging” means different things to different people.

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