retail startup business plan

Retail Business Plan Template

Written by Dave Lavinsky

Retail Business Plan

You’ve come to the right place to create your 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.

Retail Business Plan Template & Sample

Below is a retail business plan template to help you create each section of your retail store 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 stores 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.

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 maintaining the inventory.
• 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, 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.

You can  easily complete your retail business plan using our Retail Business Plan Template here .

What are the Main Types of Retail Businesses?

There are a number of different kinds of retail businesses, some examples include: Specialty Store, Off-Priced/Used Goods Store, Department Store, Convenience Store, Drug Store/Pharmacy, Discount Store, Hypermarket, and E-commerce.

How Do You Get Funding for Your Retail Business Plan?

Retail businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A solid retail business plan with comprehensive financial statements will help show investors your are well-prepared to start your own business.  A retail business plan template will help you quickly and easily get started.

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 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 supporting 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 Legal 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 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.

Where Can I Get a Retail Business Plan PDF?

You can download our free retail business plan template PDF here . This is a sample retail business plan template you can use in PDF format.

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How to Write a Business Plan For a Retail Store: Complete Guide

• August 3, 2022
• Small Businesses

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your retail store, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your retail store business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a retail store?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your retail store business plan’s executive summary?

For any retail business, the following information must go into the executive summary:

• Business overview : include your business name and model (independent retail store or franchise model), the products you intend to sell (and whether you want to expand with additional product offerings), the legal structure of your business, etc.
• Market analysis : how many retail stores operate in your area and what do they sell? The estimated number of visitors your customers receive per week, target audience demography (the products you sell must fulfill their needs), purchasing power, etc. must also be included
• People : organizational setup and the management hierarchy along with retail store experience of the key people in the management
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? It is ideal to include a chart depicting your key financials such as revenue, gross profits, and net profit
• Financial ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

2. Business Overview

The business overview is essentially the company description. The second section of your business plan, it should cover the following for a retail store:

• The products you will sell in your store
• The price range of the products
• The company structure
• Target audience information

Let’s look at different subsections that you must include:

Give a brief explanation of why you want to open a retail store. It must display two things:

• Your passion & interest for this type of business
• Feasibility of the business

There may be other retail stores in your area, but they don’t fulfill certain needs of the potential customers. Your business may fill in that gap. 

For example, there may not be any retail store in your area addressing the needs of cyclists. Even if there are competing retail stores, are they offering everything like electric bikes, mountain bikes, touring bikes, BMX, folding bikes, etc.? Do they offer spare parts and customizations?

b) Business Model

This is where you will explain the following:

• Is your retail store independent?
• Are you buying an existing retail store?
• Are you settling for a franchise store of an established bike brand?

c) Products

Your retail store can sell various products. Lenders or investors must get a clear idea of the products you intend to sell. If you want to focus on one or two specific products, you must clarify that, too.

For instance, if you are opening a retail bicycle or bike store , do you intend to sell only assembled bikes or do you intend to sell spare parts, too? What about toolkits? Do you have plans to sell supporting products for cyclists such as helmets, pants, shorts, gloves, eyewear, etc.?

If you have plans to specialize in something (for example, mountain bikes with shock absorption, gears, disc brakes, etc.), mention that.

d) Pricing Strategy

It is important that you add a pricing list here. You don’t need to go into extreme details. Just an average range will be more than enough. 

For instance, mountain bikes can cost anywhere between $400 and $800 . Depending on the components used, the average price can increase or decrease.

A pricing chart for all major products you are offering can help the investors or lenders to tie your pricing strategy with your financial projections.

e) Target Audience

Knowing your customers is very important. That will give you an edge over your competitors. For example, if you are opening a retail bicycle store, you must know whether your potential customers will be enthusiasts, hobbyists, or professionals.

Another important aspect is to understand the type of cyclists you will focus on. The products you sell will depend on that.

Knowing your customers well help in two things:

• You can better retain your customers
• Lenders or investors will be more confident about your business strategy

f) Legal Structure

Finally, your business overview section should specify what type of business structure you opt for. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Market Analysis

The market analysis is the next most important aspect of your retail store business plan. You must demonstrate to the potential investors that you know your market. Investors must be confident that the retail store you are trying to open (or you are already operating) makes sense.

For example, if you want to open a retail store specializing in mountain bikes, it’d be better if you’re located in states like Utah, Arizona, Arkansas, Colorado, North Carolina, Michigan, etc., because these states have ideal mountain bike destinations. Similarly, Texas isn’t really popular for mountain biking.

Again, you will never want to sell high-end bikes in a middle class neighborhood because they will most likely not be able to afford those items.

a) Retail Market Trends

You must also focus on the market size and growth opportunities . For example, if the location of your retail store doesn’t have enough cyclists, your bicycle business will probably not make enough profits. Again, if there are way too many competitors, the growth opportunities may be stifled.

Find market data for your city / area

It is always a good idea to get city-level data to get a clearer picture of the market size in addition to any national-level data you are providing.

Getting city level data might not be an easy task. In fact, you may have to get out and collect the necessary data. You may have to do some math. For example, if there were 30 bicycle retailers in your city in 2019 and the number grew to 33 in 2020, the annual growth rate will be 10%. 

You may want to investigate the factors leading to such growth. For instance, median income may have increased, there may be an influx of population, growing environmental consciousness, increased health awareness, etc., can be some of the factors.

However, you may actually notice a drop. In such a case, you must investigate the reasons. There can be varied factors like drop in income (and hence, sales that led to closure of businesses), decrease in population (may be younger popular moved out of the location), etc.

If there is a drop, you must explain the rationale behind opening a business, the industry of which is showing a gradual decline. It may also happen that the market may rebound back after a temporary decline.

b) Competition

Your competitor analysis is very important. Here are a few questions that you must answer:

• How many retail stores are there?
• How many of those stores are your direct and indirect competitors?
• What type of products do your competitors sell?
• What is the price your competitors are charging for the same or similar product?
• How many employees do your competitors have on an average?
• How many customers do they receive per month?

Some of the answers will end in approximation of data. That’s totally fine. For example, you may not be able to get the exact number of customers your competitors receive.

Draw a strong conclusion for your competitive analysis

Your competitive analysis must bring out the reasons why you are trying to open a retail store. For example (related to the retail bicycle store example):

• There are no specialised mountain bike retailers in the area despite a high percentage of mountain bikers
• Existing bike retailers offer only bikes and spares. No retailer offers clothing and protective gear

c) Customers

You already spoke about the target audience in the Business Overview section. Here, you must provide hard data that establishes the existence of your potential customers in the area.

This section must answer the following questions (with reference to the bike store example):

• What is the age group of the cyclists in your area?
• What percentage of the cyclists are women vs. males?
• What type of bikes are they mostly interested in?
• Do the customers also look for related accessories?
• Do they prefer online shopping or offline shopping?
• What is the average household income per month (and also their average disposable income)?

Much of this hard data will come from your competitor analysis. Also, the data must support your decision to open a retail store. For example, if people have a tendency to buy online, you may be better off opening an online retail store instead of a physical store.

4. Sales & Marketing Strategy

The 4th section of your retail store business plan is where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your USP ?
• What marketing channels will you use (online or offline)?
• Do the marketing channels aptly grab the attention of your target audience? For instance, young adults will most likely not pay attention to TV ads. Instead, use social media
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

a) Marketing channels

A few marketing channels retail stores typically use are:

• Email marketing
• SMS marketing
• Social media
• Pay-per-click campaigns (e.g. Google Ads, Amazon Ads)
• Partnerships (e.g. with companies to offer employees coupons, discounts, etc.)

b) What is your unique selling proposition?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are (with reference to retail bike store example):

• Price : you may have cheaper prices than competitors
• Specialization : you may be specializing in some specific product
• Additional products : you sell additional accessories and safety gear that your competitors don’t
• Freebies : you may offer freebies like helmets or tail lights

Your USP will definitely depend on the products you are selling.

5. Management & Organizational Structure

You must address two things here:

• The management team and their experience / track record
• The organizational structure: what are the different teams and who reports to whom?

a) Management

Your store’s management will vary depending on the business type and size. For instance, if you are opening a franchise store, you may have to give a lot more details compared to an independent store.

You may have co-founders and/or senior managers. You must explain their roles, too. Apart from that, you must also explain their industry experience and why they are suitable for those positions.

b) Organizational structure

Note that even if you have not already hired senior managers and other team members, you must include the details. 

You must define their roles and the hierarchy of reporting. This will demonstrate to the potential lenders and investors the solid management plan you have in place to operate your business efficiently and successfully.

Create and attach an organizational chart for a visual understanding of your store’s staff and their reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any retail store business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your retail store is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to open a new retail store, renovate your store, etc.)
• The 5-year financial projections

Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a retail store, startup costs are all the expenses you incur before you open the space to your customers. These expenses typically are:

• The lease deposit for the space you rent
• The design and renovation of the existing facilities
• The equipment and furniture

The total startup costs depend on a number of factors, such as the size of your store, the quality of the building (whether there is a lot or remodeling to do or not), the quality of the furniture, etc.

Financial Projections

In addition to startup costs, you will now need to build a solid financial model over 5 years.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 5%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers, sales as a small change in these assumptions will have a big impact on your revenues.

7. Use of Funds

This is the last section of your retail store business plan. Now that we have explained what your retail store sells and to whom, the industry, management and your marketing strategy, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the inventory? Or will it cover mostly the cost for the lease deposit and the renovation of the building?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our retail store financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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.

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.

Start Your Dream Business

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.

On a similar note...

Retail | How To

How to Start a Retail Business in 13 Steps

Published September 15, 2022

Published Sep 15, 2022

REVIEWED BY: Meaghan Brophy

WRITTEN BY: Brigitte Korte

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This article is part of a larger series on Retail Management .

Starting A Business?

• Step 1: Create a Business Plan
• Step 2: Determine Your Niche

Step 3: Develop Your Brand

• Step 4: Choose a Legal Structure

Step 5: Organize Your Finances

Step 6: launch your online store.

• Step 7: Secure Funding
• Step 8: Choose a Storefront Location
• Step 9: Design Your Interior
• Step 10: Choose a Retail POS System
• Step 11: Hire & Train Retail Staff

Step 12: Build Your Marketing Plan

Step 13: ensure you’re compliant, bottom line.

To open a successful brick-and-mortar store, you need a business plan (including market research) and legal structure for your business, an ideal storefront location, startup funding, inventory, and a team of employees ready to start selling. Plus, in today’s market, you’ll also want to launch an accompanying online store and start marketing your business.

Learn how to start a retail business in 13 simple steps:

Step 1: Create a Retail Store Business Plan

A business plan is a written document containing the goals of a business, the methods for attaining those goals, and the time frame for the achievement of the goals. It is what you present to potential investors and a crucial first step for starting any business. Not only that, writing a business plan gives you a definitive path to follow, ensures you’ve done proper market research, and sets you up for success.

The Small Business Administration (SBA) outlines two types of business plans: traditional and lean startup.

• Traditional business plans are more thorough and ideal if you’re requesting funding from banks or other traditional loan sources.
• Lean startup business plans are more informal and designed for businesses that are more fluid and will change a lot as they grow.

You can also create a shorter, one-page business plan. Learn how with our one-page business plan guide .

When opening a retail store, we recommend following a traditional business plan as it’s more detailed—it can never hurt to be too prepared. Plus, it will provide a more concrete outline for you and your business partners or possible investors.

Elements of a Business Plan

The nine elements of a traditional business plan are:

• Executive summary: High-level paragraph outlining your company’s purpose, mission, and why it will be successful.
• Company description: Be specific about your company’s details, including what problem you are aiming to solve, how you will solve it, what consumers you plan to serve, and the talent on your team.
• Market analysis: Include industry outlook and trends, what successful competitors are doing, and what your strengths will be.
• Organization and management: Outline who will be running your business and the experience your team members have in retail or startup environments.
• Product line: Outline what kinds of products you will sell, why they are needed, and include any research and development on private labels or proprietary custom products.
• Marketing and sales: Describe the tactics you will use to obtain and retain customers.
• Funding requests: If you need outside funding, outline your needs and specify exactly how you will use the funds.
• Financial projections: Detail how your business will become stable and profitable, including a projected financial timeline of at least five years.
• Appendix: Use this space for any supplemental documents, such as product prototypes and pictures, credit histories, licenses, and permits.

This may seem like a lot of information, but it’s best to keep each section succinct so readers can easily get through the entire document and absorb all of the information.

Be sure you are answering the “why” behind the “how” of starting a retail business. Why are the strategies you selected for achieving your business plan the best? Why will they work?

Writing Your Business Plan

When it comes to actually writing and formatting your business plan, there are a few different options to choose from. Of course, you can type it out in traditional word processing software like Microsoft Word or Google Docs. You can also build your business plan as a slideshow in PowerPoint, which is a great option if you need to present your plan to an audience.

There are also business plan software tools available, such as LivePlan , that have industry-specific templates. You can also use this business plan template and checklist or enlist the help of business plan writing services .

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Step 2: determine your niche & select products.

A niche is the subset of the market to whom your business and products seek to appeal. This subset can be defined by its own unique needs, preferences, or identity that makes it different from the market at large. Your niche will define the products you sell, your price range, product quality, and marketing initiatives.

The narrower your niche market, the easier it is to become the go-to retail destination for that market. For example, there may be a dozen stores in town that sell pet products, but you may be the only retailer that specializes in dog costumes or organic food options.

Carving out a niche for your retail store helps differentiate your business from the competition. With retail giants like Amazon and Walmart, the competition is fiercer than ever. And truthfully, many large retailers, like department and box stores, carry very similar products. Aside from the feel-good nature of shopping small, having something unique to offer will help you beat out big box retailers.

You can find your niche market by:

• Listing your hobbies and interests

As a store owner, you will spend a lot of time engulfed in your chosen niche, so your own interests are a good place to start. Plus, choosing something you’re interested in will make your store more authentic.

• Researching the potential for each niche

Make sure you choose a topic that has good money-making potential by doing research on Google Trends and checking out competitors on social media.

The phrase “dog costumes” appear to be trending downward in search, indicating a different niche may present a more long-term opportunity.

• Evaluating potential profits

Determine how profitable each niche could be by looking at industry statistics and Amazon Best Seller lists to see what sales are like for your chosen categories. You can also research wholesale prices for products on sites like Alibaba and compare them to typical retail prices to get a sense of potential profit margins.

Amazon Best Sellers lists highlight popular products by category.

Sourcing Products From Suppliers

Once you’ve narrowed in on your niche products, it’s time to find a reliable supplier for those products. When figuring out how to source products for your retail business, you’ll first need to understand the different options.

• Manufacturer : You develop the product concept and outsource the creation. This option allows for the most control over the product but also takes comparatively long.
• Wholesaler : Wholesalers develop products and sell them in bulk to retailers for a discounted price. Retailers then resell those items for a profit. This is the quickest route for product sourcing, but it also allows for the least control over the product.
• Dropship : Dropshipping is when you sell products directly to customers and then outsource the manufacturing and fulfillment for each order. It is the most hands-off option, but also yields the lowest profit margins.

In the news:

As we know, inflation is a major consideration for both retailers and consumers in the post-pandemic era. However, the National Retail Federation has been putting pressure on the current administration to lower tariffs on everyday items to help lower inflation. In response, President Biden recently signed the Ocean Shipping Reform Act , which aims at improving maritime trade practices and lowering supply chain costs.

When choosing your supplier, research a few different options and order samples from two to five suppliers. Undergo quality assurance testing to narrow down which items you want to source. From there, nurture vendor relationships with effective communication and efficient payment—eventually, you can negotiate discounts, especially for high-volume orders.

The COVID-19 pandemic brought many challenges to supply chains all over the world, and many suppliers are still seeing its effects. As a retailer, you can plan for these issues by padding timelines, vetting suppliers, having multiple sources for your most popular products, and choosing local suppliers when possible.

Retail Market Research

Instead of starting with niche products and then researching to find their market, you can also start by doing primary market research. This is a type of market research where you go straight to your target consumers and ask them questions to figure out their interests. In other words, you are starting with your consumer and their needs rather than starting with a product and then finding the right audience.

When you’re opening a physical brick-and-mortar storefront, you can study your local audience directly to determine their needs. It’s possible, and likely, that there are some specific needs locals have that your store can fill.

Effective primary market research tactics include:

• Consumer Panels & Focus Groups

Surveys are an easy and effective way to gather a lot of useful data. Established businesses typically use their customer database to send out emails. But, because you don’t yet have a customer database, you can promote your survey through local Facebook groups and targeted Facebook ads.

Your first surveys can be very broad and simply ask local consumers why they like their current favorite stores and interests. As you get closer to choosing specific products, you can send out surveys to measure customer interest and reaction to specific items.

Surveys can provide more accurate data than a focus group or consumer panel, but these types of information-gathering sessions can provide nuanced details and deeper insights that might otherwise be missed in a survey.

Tips for how to conduct focus groups:

• Keep your group small: Around eight to 10 participants is ideal so everyone’s voice can be heard.
• Incentivize participants: In your advertisements, make it clear there is a cash or gift card compensation for their time.
• Choose participants wisely: Have participants RSVP to make sure they live or work near your store’s future location.
• Have participants fill out a contact form before you begin: Provide consent forms indicating their responses will be recorded.
• Start with general questions: Get the group started by asking general icebreaker questions. Then move into asking for feedback on products and shopping preferences.
• Make sure everyone gets equal talking time: Your goal is to get a variety of opinions, so do your best to prevent one or two participants from dominating the conversation.
• Stay neutral: Remember to stay open to feedback and don’t guide participants or try to persuade them. Focus groups are all about collecting feedback. There’s no need for consensus.

Your products are just one part of your retail business. Developing a brand or your business’ identity is also important because it attracts new customers and builds strong relationships with existing ones. Your brand identity is the essence of who you are as a store—it creates the feel that customers associate with your business and maintains cohesiveness between your products and aesthetic.

You only get seven seconds to make a first impression , but it takes up to seven impressions to create brand awareness. Read about this and more in our article on Branding Statistics Every Small Business Should Know .

When defining your brand, ask yourself what feelings you want your business to evoke. Tap into your market research—look at who your biggest competitors are and think about what their branding looks like and how you can differentiate your store from theirs. All of this information helps build the foundation of your brand.

Elements of your brand include:

• Visual branding such as logo , storefront, fonts, signage , and colors.
• Store name and slogan that are completely unique to you. Use this free business name generator to help come up with ideas.
• Mission statement and vision statement that outline how you want to serve your community and customers.
• Positioning in your niche, market, community—and what sets you apart from the competition.

Step 4: Choose a Legal Structure for Your Retail Business

Choosing a legal structure for your business is important because it determines how to collect and report taxes, how you’ll get paid from your business, and your level of personal liability. There are many types of legal structures, but the three most commonly found in retail are sole proprietorships, limited liability companies (LLCs), and corporations.

• Sole Proprietorship
• Limited Liability Company
• Corporation or C-corp

If you don’t set up a legal structure for your business, sole proprietorship is the default. It essentially means you’re doing business as an individual and therefore not separated from your business in any way.

Read more about the pros and cons of sole proprietorships .

Limited liability companies or LLCs are legal structures for small businesses that protect your personal assets, such as your house and car, in the case of lawsuits or business bankruptcy. This is the most popular legal structure for small retail businesses, and the one we recommend if you’re planning on maintaining a single storefront.

Read more about the pros and cons of LLCs .

Corporations or C-corps are the most structured legal form for your retail business. They have strict tax guidelines. When you create a corporation, it’s a completely new and separate entity in the eyes of the government and the Internal Revenue Service.

Read more about C-corps .

Regardless of which legal structure you choose, it’s critical to separate your business finances from your personal accounts right from the beginning. Having a dedicated business account will make it much easier to track expenses and income, which will help you stay on track financially. Plus, you’ll have an easier time filing your taxes. Not to mention, if your personal and business finances are combined, that could “pierce the corporate veil” of your LLC if things go wrong.

Choose a Retail Business Bank Account

When it comes to choosing a small business checking account , the options are virtually unlimited. Look for a bank that’s small business-friendly with few fees. Make sure there are branches close to your store or home. As a retailer, you’ll likely be making many cash deposits and making change, so getting to the bank should be convenient.

Consider other features that will make your life easier, such as mobile banking and online check deposit. Also, consider whether or not the bank has features that will help as your business grows, such as business credit accounts, loans, and overall branch location accessibility.

To get help choosing the best small business banking solutions for your business, check out the following guides:

• Best Banks for Small Businesses
• Best Bank Accounts for Self-employed Professionals
• Best Free Business Checking Accounts
• Best Online Business Banks
• Best Banks for Startups

Invest in Accounting Software for Retailers

In addition to a small business checking account, you’ll also want to have an accounting software program. There are a lot of expenses associated with running a retail store, such as products and shipping, employee wages, and advertising costs. Accurately tracking your income and expenses will help you see exactly how much revenue you’re making, understand where your expenses are high, determine your product purchasing budget, and make filing taxes a million times easier.

QuickBooks is one of our favorite accounting programs for small businesses because it is affordable, user-friendly, and integrates with many popular retail point-of-sale (POS) systems (we’ll cover POS systems below). It’s particularly good for retailers because it has retail-specific report bundles available—including reports like gross margin by inventory volume—and integrates with ecommerce solutions. QuickBooks plans start at just $10 per month, plus they offer a free 30-day trial.

While you might be opening a physical retail store, in today’s market, you will also want to launch an accompanying digital storefront. Your bottom line has a lot to gain from launching an online store—in tandem with your retail store, it can help you reach a larger audience, geographically speaking, and it also gives you another channel where you can nurture existing customer relationships.

Forecasters from eMarketer expect multichannel sales to make up close to 46% of all ecommerce sales by 2023, up from 40% in 2019. This 46% will amount to more than $585 billion in sales—and those are sales you don’t want to miss.

To start with the launch of your online store, you will first need to choose an ecommerce platform that integrates with your POS system and accounting software. Most modern ecommerce platforms have templates and tools to help you design your store, or you can hire a professional to help.

We recommend Shopify as the top, user-friendly, high-value ecommerce platform. Not only that, every Shopify ecommerce subscription comes with a Shopify POS system for seamless integration.

From there, you will want to get your order fulfillment and shipping figured out so that you can get customers their orders.

You should also consider offering click-and-collect services for your local customers. At the onset of the pandemic, buy online, pick up in-store (BOPIS) increased from 15% of orders to 25% , a 65% share increase, and this BOPIS momentum doesn’t look like it’s slowing down anytime soon.

Not sure where to start with your ecommerce site? We put together an entire guide to take you through how to start an online store . You can also check out these resources:

• Best Free Ecommerce Website Builders
• BigCommerce vs Shopify Comparison
• Shopify Review

Step 7: Secure Funding for Your Retail Store

Opening a retail store requires a lot of upfront investment. You need to sign a lease on a physical space, invest in renovating that space, purchase products, set up your POS system and payment processing hardware, advertise like crazy, invest in a grand opening, and pay staff. It sounds expensive because it is expensive. Altogether, opening a retail store can cost up to $100,000 .

To fund your retail store, ideally, you have a decent chunk of your upfront costs saved that you can invest personally. But, there are also plenty of small business funding options where you can secure capital from external sources.

Some of those options include:

• Small business loans : You find these loans from banks, credit unions, the SBA, and even your existing network of connections. This is where your formal business plan will come into play—it shows investors your path to success (and to getting a return on their investment).
• Credit cards: If you’re just starting out and have no business income history, or if you have a lower credit score, choosing a business credit card may be the better option. A credit card will also give you more flexibility to account for unexpected expenses. Visit our guide on the best small business credit cards to see which one may be right for you.
• Crowdfunding : Crowdfunding is a great way to build buzz for your store and get people financially and personally invested in it. Plus, you don’t need to pay this money back.

The biggest factors to consider when taking out a loan are the interest rates (AIRs), upfront fees, and application requirements. Typical AIRs vary based on your loan type but should look something like this:

An alternative option for funding your business is using your IRA or 401(k) retirement account. Your initial reaction to this idea may be, “Whoa, absolutely not.” But, using your retirement account to fund your business doesn’t necessarily mean you’re cashing out or borrowing against your account.

Instead, there’s an option called Rollover for Business Startups (ROBS) , which lets you invest retirement funds into your new business without paying taxes or early withdrawal penalties. This process can be complicated. So, if you’re interested in using your retirement account to fund your business, we recommend working with an experienced provider like Guidant .

Step 8: Choose a Storefront Location to Open Your Retail Store

Choosing a location for your business can seem overwhelming: Where do you start? How do you know if you’re choosing a profitable area? Will people even want to come to your location?

When choosing a location for your business, narrow down your options first based on practicality and convenience. Consider how far you’re realistically willing to commute every day for the foreseeable future. Choose areas that are easily accessible from your residence. Spend time in each area to become familiar with specific neighborhood demographics and preferences and to scope out other local businesses.

From there, you can start looking at listings in your desired area and finding a space that will work for you and your needs. Contacting listings directly can offer the best deal; however, working with a real estate agent will give you peace of mind in the contract negotiations and help you find the best space for your business.

Learn more in our guide on how to find and lease retail space , which includes different types of leases, terms to be aware of, and how to calculate your monthly rent budget.

Below are some ways that you can get to know a neighborhood and narrow down your perfect location:

Analyze Foot Traffic

For many retailers, foot traffic can account for most, if not all, of sales. This is especially true for convenience stores, for example, where almost all sales are walk-in impulse buys. But, if you’re operating a dog costume specialty shop, you might have more customers drive specifically to your store.

Our guide to determining foot traffic outlines how to calculate whether it’s worth splurging on a prime storefront location. It’s also important to consider the different types of foot traffic and what time of day it occurs. It may not always be what you expect.

For example, there’s a cafe and bakery in my hometown, both located in a central business district. It’s a few minutes out of the way for most commuters, so they do decent business during the morning rush hour. But, the cafe is only a block away from the town’s middle school. Its business is slammed on weekdays around 2 p.m. with all of the teenagers who walk over when school gets out.

This is one example of a foot traffic pattern you wouldn’t be able to predict if you weren’t familiar with the area, which is why it’s important to spend lots of time casing out prospective store locations.

Foot traffic is an important data point to continue using even after your store is up and running. It helps your staff more accurately identify missed sales opportunities. Solutions like Dor will track foot traffic data and integrate with many popular POS solutions.

Talk to Your New Neighbors

In addition to staking out your prospective storefront, inquire about the traffic, shopper demographic, and neighborhood. Ask your listing agent as many questions as you can while viewing the space. But, keep in mind their motive of getting a lease signed. Instead, visit neighboring businesses, introduce yourself, and ask business owners or managers if you can take them out for coffee to get some feedback on the location.

Important questions to ask about the property include:

• Who is the landlord and how is the property managed? Other businesses and employees in the space you are interested in will give you honest feedback about the landlord’s maintenance style and how they handle things like snow removal and general property upkeep.
• Why did the previous tenants leave? Look into tenant turnover in the complex, and talk to tenants who left, if possible, to discuss their experience in the space.
• What’s the busiest time of day and days of the week? Get other tenants’ opinions on traffic to the area.
• How long do tenants stay in the space? If you’re in an area surrounded by other storefronts, it’s best if they are established stores with regular customers that can help drive traffic to your new shop.

Consider Parking & Signage

In addition to foot traffic and tenant feedback, it’s also important to consider other storefront factors that can majorly impact your retail business. For example, does the space have a dedicated parking lot? If there isn’t a dedicated lot with ample spaces, and street parking is difficult, potential shoppers might not make the effort to visit your store.

Also, consider what signage and street-facing display options are available. To draw in all of that foot traffic you monitored, shoppers need to know your business is there. Ideally, your storefront will be facing a busy street. If the location is set further back, is there a large sign by the driveway where passersby can easily see what businesses are inside? Ask the listing agent and neighboring tenant about what signage options are available and who pays for them.

Additionally, make sure you’re aware of any town or city policies that could affect your storefront marketing. For example, some towns place restrictions on how big the sign on the front of your store can be. Other towns forbid temporary signage like A-frames.

Don’t Ignore Your Budget

As we mentioned earlier, splurging on a prime location can be a savvy move if you’re opening the type of retail store that relies heavily on impulse purchases, such as a corner convenience store or a souvenir shop in a tourist town. But, most boutiques need to stick within their budgets, which means spending less than 10% of your monthly gross sales on rent.

Learn more about how to create a budget and budgeting best practices with our article How To Budget a Retail Business (+ Free Templates) .

Step 9: Design Your Retail Store Interior

After securing a retail storefront, it’s time to start strategically planning the interior. Strategically planning your store layout is so important because it has a dramatic impact on in-store sales. A well-designed layout will welcome shoppers, make them feel comfortable, and direct them toward specific products.

Choose a Layout Structure

The first thing you need to decide is what type of floor plan you want. This will largely depend on the type of store you’re opening. Most retail stores fit into one of these basic layout categories:

Place Your Checkout

A well-positioned checkout will open up prime retail space for displaying products and encourage shoppers to move through more of your store. Instinct might tell you to place your checkout at the front of the store so that it’s most visible or on the right-hand side of your store where traffic tends to flow. But, the best place to position a retail checkout counter is often on the left side of a store.

Shoppers naturally veer toward the right side of a store when they walk inside. So, that’s where you want to display money-making products and new products. Some department stores and larger mall retailers place their checkout counters at the back of the store. However, for smaller retailers, placing your checkout toward the front makes it easier for staff to attend the register and keep an eye on the entrance.

This small-footprint retail store layout features a checkout counter on the left side of the store, with featured products displayed on the right side.

Learn more about how to set up your checkout to drive sales .

Outfit With Fixtures & Displays

Once you have the bones of your store layout and checkout counter placed, you’ll also need to invest in display fixtures, signage, and lighting. Start with parts of the store that will be mostly permanent: counters, lighting installations, dressing rooms, and any fixed shelving.

Because these pieces will be permanent, invest in high-quality items that will form a cohesive look and won’t fall out of trend. From there, you can outfit the rest of your store with more affordable, temporary merchandise displays and decorations that are easier to swap out with the seasons or trends.

Read our guides below for step-by-step instructions on setting different fixtures and displays:

• How to select and design retail lighting
• How to design the best storefront sign for your business
• Tips for great fitting room design
• Store design ideas for increasing sales

Position Your Products for Success

Exactly how you merchandise your products will depend on what type of store you have and the layout you choose. But there are a few simple tricks you can use to boost sales in any store environment.

• Eye level is buy level : Products placed at eye level instead of above or below are more likely to be seen and purchased.
• Place seasonal products and new arrivals front and center : Many retailers utilize a table display five to 15 feet inside the entrance that’s updated almost daily to show off new and limited products.
• Drive impulse sales at the point of purchase : Think candy at the grocery checkout; placing small, low-cost but useful or appealing items like phone chargers, Chapstick, and lottery tickets near the checkout counter is an effective way to drive add-on sales.
• Keep it comfortable : Shoppers who spend more time in your store also spend more money; encourage shoppers to stay awhile with Wi-Fi, product demos, and comfortable seating.

For more tips on how to merchandise your store, download our store layout e-book for step-by-step instructions.

Download Free Store Layout Checklist

Step 10: Choose & Install a Retail POS System

Another major piece of opening a retail store is selecting a point-of-sale (POS) system . Most basically, your POS system is the software that processes transactions and completes in-person sales. Modern POS systems, however, do much more than that, acting as the heart of all store management, including CRM, inventory, payment processing, ecommerce, reporting, vendor management, and more. Using a POS system will save you time, streamline all your management tools into one platform, and provide deeper insights into your business.

There are many factors to consider when selecting a POS. Before you start seriously considering different options, it’s important to write down a wish list of what features you want. Some of the criteria we use to evaluate the best retail POS systems include:

• Price: Most POS software programs charge a monthly fee, and some also charge extra for certain features like advanced inventory management.
• Setup and installation process: Some POS systems have a DIY installation process; others charge a hefty professional installation fee. You should also note the integration capabilities and process.
• Ease of use: Test out the POS to make sure the interface is comfortable to navigate; also, read user and expert reviews to be aware of any glitches or common problems.
• Inventory management: Make sure the retail inventory management solution you use has features to bulk upload orders, set stock alerts, and create purchase orders directly from the system to save you time.
• Customer management tools: Almost all POS systems have a customer directory feature, but otherwise, they vary greatly in what loyalty, marketing, and customer feedback features are included.
• Ecommerce functions: If you have plans to also sell online, make sure the POS you choose also has an online store feature so all of your inventory, customer, and order information syncs between online and offline sales.
• Payment processing: Some POS providers have built-in, in-house payment processors, and others let you integrate with third-party options for no fee.

For traditional brick-and-mortar stores, boutiques, and specialty shops, we often recommend Lightspeed . It’s a small business POS with big business functionality like custom report builders and advanced inventory management tools (such as built-in product ordering) and offers a sophisticated ecommerce platform.

Lightspeed Retail POS (Source: Lightspeed)

Choose a Credit Card & Payment Processor

Once you have a POS system selected, you need to choose a credit card processing company or merchant services provider. Some POS systems include their own in-house payment processing, while others require you to use a third party. The two most important things to consider when choosing a retail credit card processing company are price and compatibility with your POS.

When it comes to price, there are three main types of card processing fee structures:

• Flat rate: Processing companies charge a set percentage of the transaction; this is usually a good option for retailers such as convenience stores that have lower average sales (under $20).
• Interchange plus: Processing companies pass along the interchange fees from Visa, Mastercard, and similar payment processors and add a per-transaction fee on top; this is usually a good option for most established specialty shops.
• Tiered: Processors charge a different rate depending on the type of credit or debit card used in the transaction; we typically don’t recommend choosing a processor with this fee structure because it’s unpredictable and often more expensive.

Credit card processing fees can be notoriously murky and difficult to pin down. Our credit card processing fees guide defines common terms and breaks down different types of fees in detail.

Some card processing companies also charge monthly fees, and some have lengthier application processes than others. Many traditional merchant accounts also require contracts or have early termination fees. Be careful to read the fine print before signing with a card processing company.

The other thing to consider is whether or not the payment processor integrates with your POS system. Choosing a processor that integrates with your POS is ideal because as you ring up sales, they will automatically sync with your POS system’s sales data, inventory, and CRM. If you don’t have a payment processor that integrates with your POS, you have to input sales manually, and your data becomes susceptible to human error.

Read more about choosing the best retail credit card processors .

Step 11: Hire & Train Retail Staff

Last but certainly not least, you need to bring on a stellar group of employees to serve as the front lines of your business. If you haven’t hired an employee before, navigating the process can be really intimidating. Our new hire checklist outlines all of the gritty steps you need to take, such as obtaining an employer identification number (EIN), registering for state and local taxes, and so on.

As a small business retailer, it’s likely you won’t have a dedicated HR team member. And, hiring retail workers right now is especially challenging.

”We hear every day from our member companies—of every size and industry, across nearly every state—they’re facing unprecedented challenges trying to find enough workers to fill open jobs. Right now, the latest data shows that we have over 10 million job openings in the US—but only around 6 million unemployed workers”

– Stephanie Ferguson, Director at the Global Employment Policy & Special Initiatives, US Chamber of Commerce ​​

With this knowledge, it’s more important than ever to take your hiring seriously. Take a look at our tips below and read more with our guide to retail recruiting to learn how you can overcome hiring challenges for your retail business.

Write Attractive Job Posts

The first step in writing an accurate and compelling job post is to create the job description for the position you are hiring, whether store associate or shift manager. Then, consider what qualities would be a best fit for the position. Finally, add in at the beginning of the post what your company is and why your future employees will love working there – including an attractive pay and commission structure .

In addition to using an all-in-one HR management tool, also consider using an applicant tracking system (ATS) to manage your search for the perfect candidates. An ATS is a software program that streamlines the hiring process and tracks candidates from initial job posting to hire. Here are a couple resources to help you find the right ATS tool for your new business:

• Best Free Applicant Tracking Systems
• Best Recruiting Software

Start Training Before Your Grand Opening

Practice makes perfect with any skill, and customer service and store operations are no exception. You want your staff ready to deliver A+ service to your guests and shoppers from the minute your store opens, giving you peace of mind that they can handle store operations when you aren’t around. That’s where new hire training comes in.

You can also download our free opening and closing procedures checklists to provide to your staff. We recommend printing these lists and laminating them or keeping them in a clear sheet protector in a binder. Then associates can use expo markers to check things off each day and then erase the list at the end of the week for a fresh start.

Hold a paid training “boot camp” where you practice customer service skills, review store policies, outline expectations, and teach staff about the products in your store. Find ways to incorporate games and contests to keep the training engaging.

“Most of training is exposure; you tell them what to do, and they understand. But, until you commit to having a great sales process, in bite-sized lessons that you practice and role play, you won’t be able to hold employees accountable. Without accountability to execute that process every time, you’ll settle for whoever will work your shifts, you’ll cripple your ability to succeed, and invariably you’ll use the loser’s limp that Amazon was the reason you weren’t successful. Training isn’t something you did once—it’s something you do.”

– Bob Phibbs, CEO, The Retail Doctor retail consultancy

Now that your brand and store are ready, it’s time to build a retail marketing strategy . Your marketing strategy should outline everything from your pre-launch initiatives to your store’s grand opening and the first few weekends post-launch. This will ensure that people know about your store upon opening and that you are able to continue to attract a healthy mix of new and repeat customers.

Plan Your Grand Opening

You’ve put in months, if not years, of hard work conceptualizing your store and building it from the ground up—a grand opening is a perfect opportunity to introduce your business to the community with a bang.

Some ideas you can consider to boost your grand opening are:

• Hand out unique promotional gifts
• Provide product or service discounts
• Host games and live music
• Invite the local news and influencers
• Partner with a local group or charity

Market in Advance

Planning a party only to have no one show up is really disheartening and definitely not the tone you want to set for your new business. Make sure your event is well attended by recruiting friends and family, but also by starting your advertising efforts as soon as you have a date planned. Draft a press release to send to local media outlets and neighboring businesses. Create an event on Facebook. Take an ad out in the local paper. Go all out.

Need some inspiration for advertising your grand opening?

Learn how to write a grand opening press release .

Partner With Other Businesses

Working with similar but non-competitive businesses, such as spas, fitness centers, and other types of retailers, is a great way to tap into a pre-existing customer base. By involving other businesses, you’ll spread the word about your store to their customers, too. Tap into your local chamber of commerce, networking groups, schools, and even youth sports organizations. Invite members from those groups to attend your grand opening festivities.

Our final and possibly most important tip for starting a retail business is to ensure you’re fully compliant and legal. Be sure to comply with all local laws and regulations when opening a retail store, including but not limited to:

• Federal tax ID or EIN : Used to identify businesses for tax-paying purposes; this is a nine-digit number issued by the IRS that all employers need to apply for.
• Sales permit: Issued by the state and allows businesses to sell products and collect sales tax.
• Certificate of occupancy: Local government issues a certificate stating the building your business is inhabiting is up to code.
• Sign permits: Some local governments require permits for certain kinds of signage, like the one you may want to display on your storefront.
• Safety and health information bulletins: You may be required to display certain signage about employee rights or safety information; these are often provided to you, but it never hurts to check with your local government.
• Local COVID-19 mandates: Although these mandates are no longer as prevalent, you might be required to have a fully vaccinated team and put regular testing in place for those who are unvaccinated or enforce some type of mask-wearing rule.

If you’re unsure where to start or want to be sure you’re not missing any compliance aspects, check with your local town hall or municipal center and your local chamber of commerce.

Opening a retail store takes years of planning. But, putting in the time to make a detailed plan and execute accordingly will set you on a path to success once your business is operational.

You May Also Like…

• Our ultimate guide to managing a successful retail store
• Learn what retail metrics you should measure and how to interpret them to keep your store on track
• Ready to grow? Here’s how to know when it’s time to open a second retail store
• Launch an effective retail commission structure for your store and staff

About the Author

Find Brigitte On LinkedIn

Brigitte Korte

Brigitte is a retail specialist and staff writer with brick-and-mortar management experience. Before joining FSB, she managed a storefront for several years, working in everything from merchandising, to buying, to sales analysis. Brigitte also has a background in writing, research, and publishing, with an undergraduate degree in writing.

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Sample Retail Business Plan

Writing a business plan is a crucial step in starting a retail business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring retail business owners, having access to a sample retail business plan can be especially helpful in providing direction and gaining insight into how to draft their own retail business plan.

Download our Ultimate Retail Business Plan Template

Having a thorough business plan in place is critical for any successful retail venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A retail business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The retail business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your retail as Growthink’s Ultimate Retail Business Plan Template , but it can help you write a retail business plan of your own.

Retail Business Plan Example – MarketMosaic

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

MarketMosaic is a dynamic retail enterprise, poised to redefine the shopping experience by offering an extensive selection of retail items, from the latest tech gadgets to essential household products. Our commitment to competitive pricing, backed by efficient procurement and inventory management processes, ensures that our customers always receive the best value. Situated in the heart of Bakersfield, CA, our goal is to establish ourselves as the go-to shopping destination by being a one-stop-shop for diverse customer needs, thereby setting a new standard in the retail industry.

Our success hinges on our ability to offer a wide range of products at competitive prices and our dedication to exceptional customer service. By training our staff extensively and developing a user-friendly online platform, we enhance the shopping experience both in-store and online. These efforts, combined with our strategic location in Bakersfield, CA, and our focus on leveraging technology to meet customer needs, have positioned us as leaders in the retail sector. Our accomplishments to date include establishing a comprehensive inventory, securing a prime storefront, and building a robust supply chain, laying a strong foundation for future growth.

The retail industry is experiencing rapid transformation, driven by changing consumer preferences and technological advancements. Customers now seek convenience, variety, and value in their shopping experiences, trends that have been accelerated by the rise of e-commerce. This shift presents both challenges and opportunities for traditional and online retailers alike. By understanding these dynamics, MarketMosaic is well-positioned to capitalize on the growing demand for one-stop shopping solutions that blend physical and digital retail spaces. Our approach is designed to not only meet but exceed the evolving expectations of today’s consumers.

Our target customers are diverse, spanning various demographics yet unified by their desire for a convenient, one-stop shopping experience. They value variety, quality, and affordability in their purchases, ranging from tech aficionados looking for the latest gadgets to busy families in need of daily essentials. By recognizing and adapting to the unique preferences of our customer base, MarketMosaic aims to create a retail environment that caters to the needs of each shopper, ensuring satisfaction and fostering loyalty. Our commitment to understanding and meeting these needs is central to our customer acquisition and retention strategies.

Top competitors include established retail chains and e-commerce platforms. Despite the competition, MarketMosaic’s advantages lie in our wide product range, competitive pricing, and exceptional customer service. Our omnichannel approach, combining an intuitive online platform with a welcoming physical store, sets us apart, allowing us to offer convenience, efficiency, and a personalized shopping experience that surpasses that of our competitors.

At MarketMosaic, our product strategy encompasses a wide variety of high-quality items at competitive prices, ensuring we cater to the diverse needs of our customers. We are dedicated to maintaining a balance between offering the latest trends and stocking everyday essentials, thereby positioning ourselves as a comprehensive shopping destination. Our promotions plan is multifaceted, incorporating local advertising, social media campaigns, and community engagement events to build our brand presence both online and in the Bakersfield area. By leveraging these channels, we aim to attract a broad customer base and foster strong relationships within the community, driving traffic to both our physical store and online platform.

Key operational milestones for MarketMosaic include securing a prime location in Bakersfield, obtaining necessary permits, designing a welcoming retail space, developing efficient supply chain and inventory systems, and hiring a high-performing team. These steps are critical to launching our retail operations successfully and achieving our initial goal of reaching $15,000/month in revenue. Additionally, our focus on customer feedback will allow us to adapt our product offerings and store layout to better meet market demand, ensuring customer satisfaction and loyalty as we establish a strong community presence.

Our management team brings together seasoned professionals with extensive experience in retail, operations, and customer service. This diverse skill set is crucial to our mission of redefining the retail landscape by combining technology with a customer-centric approach. Each team member’s expertise in their respective fields ensures that MarketMosaic is not only equipped to navigate the challenges of the retail industry but also poised to capitalize on its opportunities, driving growth and innovation.

MarketMosaic is a new Retail serving customers in Bakersfield, CA. We are a local retail business, stepping into an arena where high-quality local retail options have been notably absent. Our mission is to fill this void by offering a diverse range of products that cater to the needs and preferences of our community. With our strategic location and a keen understanding of the local market, we are poised to become a staple for shoppers in Bakersfield.

Our product lineup is meticulously curated to meet the wide-ranging needs of our customers. At MarketMosaic, shoppers can find an extensive selection of Apparel and Fashion Accessories, ensuring that the latest trends are always within reach. For tech enthusiasts and those looking to upgrade their gadgets, our Electronics and Technology section offers the latest innovations. Home and Furniture is for customers aiming to add a touch of comfort and style to their living spaces, whereas our Beauty and Personal Care products cater to those who prioritize wellness and self-care. Last but certainly not least, our Groceries and Food Products aisle provides the essentials and specialties alike, making everyday shopping convenient and enjoyable.

Located in the heart of Bakersfield, CA, MarketMosaic serves the local community with pride and dedication. Our strategic location is not just about geographical convenience; it’s about being an integral part of the community we serve, understanding its needs, and evolving with its changing dynamics. This local presence strengthens our commitment to providing a shopping experience that is both enjoyable and rewarding.

MarketMosaic is uniquely qualified to succeed for several reasons. Firstly, our founder brings a wealth of experience from running a successful retail business in the past. This experience is invaluable in navigating the competitive landscape and ensuring that MarketMosaic stands out from the competition. Moreover, our diverse range of retail items is not only more extensive but also priced more competitively than what’s currently available in the market. This combination of experience, variety, and value positions us for success in Bakersfield’s retail sector.

Since our inception on January 5, 2024, as a Limited Liability Company, we’ve made significant strides in establishing our brand. Our accomplishments to date include the creation of our logo, which encapsulates our brand’s essence and values, the development of our company name that resonates with our target audience, and securing a prime location that offers accessibility and convenience to our customers. These milestones are just the beginning of our journey towards becoming the go-to retail destination in Bakersfield.

The Retail industry in the United States is a massive sector that plays a significant role in the country’s economy. As of now, the retail market in the US is valued at over $5 trillion, making it one of the largest industries in the country. With a large and diverse consumer base, the retail industry continues to thrive and show strong growth potential.

Market research indicates that the retail industry in the US is expected to continue growing in the coming years. Experts forecast a steady increase in market size, with an estimated annual growth rate of 3-4%. This growth is driven by factors such as consumer spending, e-commerce expansion, and technological advancements that enhance the shopping experience for customers.

Recent trends in the retail industry, such as the shift towards online shopping, personalized marketing strategies, and sustainability initiatives, are all positive indicators for MarketMosaic. As a new retail business serving customers in Bakersfield, CA, MarketMosaic can leverage these trends to attract and retain customers. By staying ahead of industry developments and embracing innovative practices, MarketMosaic has the potential to carve out a successful niche in the competitive retail market.

Below is a description of our target customers and their core needs.

Target Customers

MarketMosaic will target a diverse customer base, with a significant focus on local residents who are always on the lookout for unique retail experiences. This segment is composed of families, young professionals, and elderly residents who value convenience, quality, and a personalized shopping experience. MarketMosaic will tailor its offerings to meet the specific needs and preferences of these local customers, ensuring a loyal customer base.

The store will also attract customers who are eco-conscious and interested in sustainable living. This segment is growing rapidly, as more people are becoming aware of the environmental impact of their purchases. MarketMosaic will offer a range of eco-friendly products and will emphasize its commitment to sustainability in its marketing efforts, appealing to this environmentally aware customer segment.

In addition to local residents and eco-conscious consumers, MarketMosaic will target tourists visiting Bakersfield. The store will feature locally made products and souvenirs that reflect the culture and heritage of the area, serving as a unique shopping destination for visitors looking to take a piece of Bakersfield back home. This strategy will not only diversify MarketMosaic’s customer base but also contribute to the local economy by promoting regional artisans and producers.

Customer Needs

MarketMosaic aims to cater to the discerning customers in its area by providing high-quality retail items. These consumers expect nothing less than premium products that stand the test of time. By focusing on quality over quantity, MarketMosaic ensures that its customers have access to goods that reflect their desire for excellence and durability.

In addition to offering high-quality products, MarketMosaic understands the importance of a diverse product range. Customers can find a wide variety of items that not only meet their practical needs but also cater to their unique tastes and preferences. This diversity in product selection allows shoppers to enjoy a one-stop shopping experience that is both convenient and fulfilling.

Moreover, MarketMosaic places a strong emphasis on customer service. The staff is knowledgeable and ready to assist, ensuring that every customer’s shopping experience is seamless and enjoyable. This level of service, combined with the quality and variety of products offered, positions MarketMosaic as a retail destination that truly understands and fulfills the needs of its customers.

MarketMosaic’s competitors include the following companies:

Shop Spoiled Boutique offers a curated selection of women’s fashion, focusing on trendy and upscale clothing items. Their price points are moderately high, targeting consumers looking for unique and fashionable pieces that aren’t widely available. This boutique generates revenue primarily through its physical store in Bakersfield, CA, and an online platform that extends their reach to customers nationwide.

The customer segment for Shop Spoiled Boutique includes fashion-forward women, typically aged 18-35, who are seeking unique, stylish, and high-quality clothing. The key strength of Shop Spoiled Boutique lies in its unique selection of products and personalized customer service. However, its key weakness is the limited variety of sizes, which may not cater to all potential customers.

Macy’s , a nationwide department store chain, offers a wide range of products including clothing, accessories, home goods, and beauty products. Their price points vary widely to accommodate a broad spectrum of customers, from budget-friendly options to luxury brands. Macy’s generates substantial revenue from its extensive network of stores across the United States and a robust online sales platform.

Macy’s serves a diverse customer segment, from young adults to elderly customers, offering products for every age group and for both men and women. The key strengths of Macy’s include its wide variety of products, strong brand recognition, and nationwide presence. However, Macy’s faces weaknesses such as competition with online retailers and the challenge of maintaining a compelling in-store experience.

Action Sports specializes in sporting goods, athletic wear, and outdoor equipment, catering to sports enthusiasts and outdoor adventurers. Their products are priced to offer value for quality, appealing to those who prioritize durability and performance in their sporting and outdoor gear. Action Sports generates revenue through its brick-and-mortar location in Bakersfield, CA, and an online store that serves customers across the country.

The customer segment for Action Sports includes individuals leading an active lifestyle, ranging from amateur sports enthusiasts to professional athletes. The key strength of Action Sports is its focus on high-quality, durable products, and knowledgeable staff. However, its key weakness lies in its limited product range compared to larger, more diversified competitors.

Competitive Advantages

At MarketMosaic, we pride ourselves on offering a broader selection of retail items compared to our competitors, thereby catering to the diverse needs and preferences of our customers. By ensuring a wide variety of products, from the latest in tech gadgets to everyday household items, we make it our priority to be a one-stop-shop for our shoppers. This vast selection not only enhances customer convenience but also positions us as a market leader in providing a comprehensive shopping experience. Furthermore, our commitment to competitive pricing ensures that our customers receive the best value for their money. By leveraging efficient procurement and inventory management processes, we can offer high-quality products at prices that are hard to beat, thus providing a significant cost advantage to our customers.

In addition to our wide range and competitive pricing, another key competitive advantage lies in our customer-centric approach. We invest heavily in training our staff to provide exceptional customer service, ensuring that every customer leaves satisfied with their shopping experience. Our intuitive, user-friendly online platform complements our physical presence, enabling customers to shop with us from the comfort of their homes. This omnichannel approach not only expands our reach but also enhances accessibility for all our customers, making shopping convenient, efficient, and enjoyable. By integrating technology with personalized customer service, we set new standards in retail, distinguishing ourselves from the competition and cementing our position as a leader in the industry.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At MarketMosaic, customers can discover a wide range of products and services designed to cater to diverse needs and preferences. From stylish apparel to the latest in electronics, this retail destination is committed to providing quality items at competitive prices. The following is a detailed overview of the key products and services available at MarketMosaic, along with the average selling price for each category.

In the realm of Apparel and Fashion Accessories, MarketMosaic offers a variety of clothing items and accessories for men, women, and children. Shoppers can find everything from casual wear to more formal attire, ensuring a selection that suits any occasion. The average selling price for apparel items hovers around $35, while fashion accessories are typically priced at $20, making stylishness accessible without breaking the bank.

For those interested in Electronics and Technology, MarketMosaic is a treasure trove of the latest gadgets and devices. From smartphones and laptops to home entertainment systems, the store provides cutting-edge technology to enhance daily life and productivity. The average selling price in this category is approximately $250, offering customers high-quality electronics at reasonable prices.

When it comes to Home and Furniture, MarketMosaic presents an array of options to beautify living spaces. Whether customers are looking for contemporary furniture designs or cozy home decor items, the store caters to various tastes and budgets. On average, furniture items are priced at $150, while home accessories can be purchased for around $30, ensuring that every home can be a haven of style and comfort.

Beauty and Personal Care products at MarketMosaic cater to a wide range of grooming and wellness needs. From skincare and makeup to hair care products, the store offers an extensive selection for both men and women. Customers can expect to find their favorite beauty essentials at an average price of $15, making self-care both affordable and indulgent.

Lastly, the Groceries and Food Products section at MarketMosaic is stocked with a variety of food items, including fresh produce, packaged goods, and gourmet specialties. Whether planning a meal or looking for a quick snack, shoppers can find what they need at an average price of $5 per item, making mealtime both delicious and economical.

MarketMosaic is dedicated to providing a shopping experience that combines quality, variety, and affordability. With a wide range of products and services available, customers in Bakersfield, CA, can enjoy a one-stop shopping destination that meets all their needs.

Promotions Plan

MarketMosaic will utilize a comprehensive promotional strategy to attract and retain customers in the competitive retail landscape. At the core of these efforts is online marketing, a powerful tool that will enable MarketMosaic to reach a broad audience efficiently and effectively. Through the use of social media platforms, search engine optimization (SEO), and email marketing campaigns, MarketMosaic will engage with potential customers by showcasing their unique value proposition, special promotions, and the wide range of products available.

Beyond online marketing, MarketMosaic will also implement traditional advertising methods, including print media, billboards, and local radio spots. These tried-and-true approaches will complement the digital strategy by increasing brand visibility in the local community of Bakersfield, CA. Furthermore, MarketMosaic will leverage public relations activities, such as press releases and community events, to build a positive brand image and foster strong relationships with customers.

In-store promotions and loyalty programs will be another key component of MarketMosaic’s promotional efforts. Special discounts, loyalty points, and exclusive offers for returning customers will encourage repeat business and word-of-mouth referrals, which are invaluable in building a loyal customer base. Additionally, MarketMosaic will host in-store events and workshops to engage with the community and provide an interactive shopping experience.

Partnerships with local businesses and influencers will also play a significant role in MarketMosaic’s promotional strategy. By collaborating with complementary businesses and influential personalities in Bakersfield, MarketMosaic will tap into new customer segments and enhance its market presence through co-marketing efforts and cross-promotions.

To ensure the success of these promotional methods, MarketMosaic will consistently monitor and analyze the performance of each strategy, adjusting tactics as necessary to maximize return on investment. By implementing a dynamic and multi-faceted promotional approach, MarketMosaic expects to attract a wide range of customers and establish itself as a go-to retail destination in Bakersfield, CA.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of MarketMosaic, there are several key day-to-day operational processes that we will perform.

• Inventory Management: We will continuously monitor stock levels to ensure that popular items are always available, while also identifying slow-moving items for promotional sales or clearance.
• Supplier Relations: We will maintain strong relationships with suppliers to ensure timely delivery of goods, negotiate better prices, and stay informed about new or trending products.
• Customer Service: We will prioritize exceptional customer service by training staff to be knowledgeable about products, friendly, and helpful to create a positive shopping experience.
• Store Presentation: We will regularly update store layouts and displays to make shopping intuitive and engaging, and ensure the store is clean and well-maintained at all times.
• Marketing and Promotions: We will implement targeted marketing campaigns and in-store promotions to attract new customers and encourage repeat business.
• Sales Monitoring: We will use point-of-sale (POS) systems to track sales data, identify trends, and make informed decisions about inventory and marketing strategies.
• Staff Management: We will schedule staff efficiently to cover peak times while managing labor costs, and provide ongoing training to improve skills and knowledge.
• Financial Management: We will meticulously manage finances, including monitoring daily sales, expenses, and cash flow, to ensure profitability.
• Compliance: We will ensure all business operations comply with local, state, and federal regulations, including health and safety standards.
• Feedback and Improvement: We will actively seek feedback from customers and employees to identify areas for improvement and implement changes to enhance the shopping experience.

MarketMosaic expects to complete the following milestones in the coming months in order to ensure its success:

• Secure a Prime Location in Bakersfield, CA : Selecting and securing a lease for a storefront in a high-traffic area that aligns with MarketMosaic’s target demographic will be crucial for attracting initial customers and establishing brand presence.
• Obtain Necessary Permits and Licenses : Completing all legal requirements including business registration, sales tax permits, and any specific retail operation licenses ahead of the launch will ensure compliance and avoid any legal hurdles post-launch.
• Build Out and Design the Retail Space : Creating a welcoming and brand-aligned store environment that maximizes product visibility and enhances the shopping experience will be key to attracting and retaining customers.
• Develop Supply Chain and Inventory Management Systems : Establishing reliable relationships with suppliers and implementing inventory management systems will ensure that MarketMosaic can maintain stock levels efficiently, reducing the risk of stockouts or excess inventory.
• Hire and Train a High-Performing Team : Recruiting a capable team and providing them with the necessary training on customer service, product knowledge, and operational procedures will be essential for delivering a positive customer experience and driving sales.
• Launch Our Retail Business : Officially opening the doors to customers with a well-publicized grand opening event will mark the start of business operations, aiming to generate buzz and attract initial customer traffic.
• Implement Marketing and Customer Acquisition Strategies : Developing and executing a comprehensive marketing strategy that includes local advertising, social media engagement, and community events will help MarketMosaic build its brand and attract customers.
• Monitor and Adapt Product Offerings Based on Customer Feedback : Regularly collecting and analyzing customer feedback to adjust product offerings and store layout will help meet market demand and improve customer satisfaction.
• Reach $15,000/Month in Revenue : Achieving this financial milestone will indicate that MarketMosaic has successfully penetrated the market and is on a path toward sustainability and growth.
• Establish a Loyal Customer Base and Community Presence : Developing strong relationships with customers and becoming an active participant in the Bakersfield community will contribute to long-term success by building brand loyalty and encouraging word-of-mouth referrals.

MarketMosaic management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Aria Morales, President

Aria Morales brings a wealth of experience and a proven track record of success to her role as President of MarketMosaic. With a rich history in the retail industry, Morales has demonstrated her ability to not only run a business but to do so with notable success. Her hands-on experience in managing a retail business has endowed her with a deep understanding of the market dynamics, consumer behavior, and operational efficiency. These skills and insights are critical in steering MarketMosaic towards achieving its business objectives and ensuring its long-term success in a competitive landscape. Morales’s leadership is characterized by a strategic approach to business growth, innovation, and an unwavering commitment to excellence, making her an invaluable asset to the MarketMosaic team.

MarketMosaic requires significant funding to achieve our growth goals, including securing a prime retail location, building out and designing our store environment, developing our inventory and supply chain infrastructure, and implementing our marketing strategy. This investment will support our operations until we reach our initial revenue target of $15,000/month, setting the stage for long-term sustainability and expansion in the competitive retail market.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Retail Business Plan Example PDF

Download our Retail Business Plan PDF here. This is a free retail business plan example to help you get started on your own retail plan.  

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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 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.

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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

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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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About the Author

Upmetrics Team

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

Noah Parsons

24 min. read

Updated May 7, 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

Free business plan templates and examples

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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
• Templates and examples

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Startup Retail Business Plan Template

Whether you want to start your own retail business or expand an existing one, you need a business plan. the following startup retail business plan template lets you know what elements you need to include in a successful retail business plan., fill the form to download business plan templates.

To ensure your coffee shop business success in this highly competitive market, you need a properly structured business plan for your coffee shop. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their coffee shop businesses.If this is your first time writing a business plan , we’ll walk you through these sections and give you some key things to consider.

Things to Know Before Writing a Retail Business

Retail trade is the final step in the distribution of products, including brick-and-mortar stores and non-retailers operating through mail-order, door-to-door, kiosks, and the internet.

There are 12 subsectors within the US Retail Trade sector, from food and beverage stores to motor vehicles and parts dealers.

This industry’s main products and services are

• Automobile and auto parts dealers
• General merchandise stores
• Online retailers
• Building material and garden equipment and supplies dealers
• Retailers of food and beverages
• Retailers of health and personal caree
• Gas stations
• Retailers of other products

While some products sold by retailers are staples, others are more discretionary in nature. In the coming years, disposable income per capita is expected to increase, making it possible for consumers to spend more.

As stores reopen and consumers feel more comfortable, the Consumer Confidence Index is forecast to rise during the period, along with a decrease in the national unemployment rate.

Due to this, retail trade is expected to grow at an annualized rate of 3.2% over the 3 years to 2024, reaching $5.9 trillion. Additionally, profit is expected to increase a little during this period.

Key Success Factors for Retail Businesses

There are 6 factors that can help you boost profitability, efficiency, and ultimately success in the retail industry despite the challenges.

• Having a skilled workforce: Experienced employees can provide a pleasant experience for customers by providing excellent customer service and clear knowledge of products sold, either in-store or online.
• Establishing a clear market position: Having clear branding and marketing helps consumers identify stores carrying particular goods and brands.
• A loyal customer base: Building strong relationships with consumers can encourage repeat business.
• Keeping an eye on competitors: By monitoring the competition, operators can offer competitive prices as well as products that match the quality and range of those offered by their competitors.
• Inventory control: In order to prevent the build-up of excess stock, operators must ensure popular items are reordered.
• Scale economies: Being part of a chain, franchise, or co-op allows players to obtain buying and marketing power.

What is a Startup Retail Business Plan?

A startup retail business plan is a roadmap for starting and growing your retail business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.

Any bank or investor you approach will require a startup retail business plan, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a retail business or pitching to investors or venture capitalists.

Free: Business Plan Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

Why You Need a Startup Retail Business Plan

Retail business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A start business plan allows you to thoroughly analyze every aspect of your potential business.

A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a retail business idea, and may help you better understand your company’s finances and competition.

Retail business owners who have a business plan grow 32% faster than those who don’t, and 77% of fast-growing businesses have one.

A retail business plan is a living document that should be updated annually as your company grows and changes.

Funding Sources for Retail Business

No matter how large or how small your retail business is, you should think about your financing options. Below are four types of funding you should investigate:

Inventory loan

This is a traditional term loan in which you receive a lump sum and repay it over time with interest. This loan is best suited for a large purchase made once a year or every few years.

Government Incentives

When choosing a business location , you can consider different community incentives before making your final choice. Government incentives can help reduce operating costs and long-term overhead.

You can begin your business with the help of the U.S. Small Business Administration (SBA). You can find government resources about financing your business by using the website’s Loans and Grants Search Tool.

Many banks offer small business loans. See if a business loan is right for you by contacting your bank. Banks also offer business lines of credit and other resources to help you find the right option.

Consider finding an investor or group of investors to finance your company. Be sure to do your research and have the numbers and information to back up your business before you contact an investor. You will need to show progress to investors, and they will do research and investigation concerning your retail business plan. In return, investors often desire ownership of a part of your company.

Looking to Build Credit for Your Retail Business?

Build your business credit quickly with an easy approval net 30 account from Wise Business Plans. Or check out the top 10 net 30 vendors to find the best one for you to help build your business credit .

How to Write a Retail Business Plan

To write a retail business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a retail business plan, or you can just download our proven  sample business plans  to get a better idea.

Startup Retail Business Plan PDF and Word

Download our startup retail business plan template in PDF and Word here.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of retail business you have and what stage you’re in; for example, are you a startup, do you have a retail shop that you want to expand, or do you have a lot of retail businesses?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

• Provide a high-level overview of the retail industry
• The name, location, and mission of your retail company
• A description of your retail business, including management, advisors, and a brief history
• Discuss the type of retail business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
• Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
• And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your retail business plan.

Free: Executive Summary Examples

An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.

Company Analysis

The company analysis follows the executive summary as the second section of a retail business plan. Your company overview will be short and clear, similar to the executive summary.

Even if they just have a few minutes, your reader has to understand what your company does and who your customers are.

The following sections will be included in your business plan’s Company Analysis:

• Company summary: Your company analysis will describe the type of retail shop you are running and its future goals. The type of retail business you might be focused on (Department Stores, Supermarkets, Specialty Retailers, Convenience Stores, Supermarkets/hypermarkets, Discount Stores, E-Commerce Stores, Warehouse Stores, etc)
• Company history: When and why did you start your retail shop business?
• What milestones have you achieved so far? Your milestones could include served 100th customer, new fleet purchase, etc.
• Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
• Mission statement: An overview of your retail company’s guiding principles. Learn how to write a perfect mission statement .

Industry Analysis

The retail business plan’s research section will most likely be the most time-consuming. Here, you will elaborate on how you will fit into the existing retail market. Since your research findings should serve as a sound confirmation of the conclusions you have outlined thus far, they will demonstrate your understanding of the industry and market.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

• Give a quick overview of the retail industry. Define the retail business in terms of size (in dollars), historical background, service region, and products.
• Examine previous trends and growth patterns in the retail industry.
• Identify the market’s major competitors.
• Age, gender, and general lifestyle of the targeted market
• Determine the factors that have an impact on the retail industry. These might include government regulatory rules and other businesses’ competitive activities.
• Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
• Describe how your retail business intends to position itself in the industry. Concentrate on how your retail business can benefit from opportunities highlighted in the industry.

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Customer Analysis

The first condition for a retail business is to identify its target customers clearly. Customers can be categorized into the following segments: Teenagers, College students, Sports enthusiasts, Techies, Baby boomers, Couples, etc.

The customer analysis section is an important part of any retail business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the your retail items will meet those requirements.

Customer analysis may be divided into two parts: Psycho-social profiles (why your retail items suits a customer’s lifestyle) and Demographic profiles (descriptions of a customer’s demographic qualities).

With regards to demographics, include information about: When moving residential, the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.

Competitor Analysis

It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:

• Identify the strength and weakness of your retail business competitors.
• Search for opportunities to distinguish your retail business from competitors.

The first step is to determine who your direct and indirect competitors are.

The direct competitors consists of other retail businesses that offer essentially the same retail items to the same people as you do.

Your indirect competitors are other options that customers have to purchase from that aren’t direct competitors.

Businesses that sell the same or similar items as you but operate online.

Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your retail business— but keep an eye on the indirect competition as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

• Prices – Are they offer cheaper retail items or more costly than you and other competitors, what value do buyers get for that price?
• Quality – Are they offer premium retail items, the perceived worth in the eyes of the customers
• Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
• Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium retail items? Will you have specialty products? Will you offer better pricing or will you offer greater customer support?

Consider how you will outperform your competitors and include them in this portion of your retail business plan.

Free: SWOT Analysis Examples

Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.

Marketing Plan

Creating a marketing plan for a retail business involves identifying the target demographic and finding retail items that suit their preferences.

As part of your marketing plan for a retail business, you should include:

Pricing and Product Strategy

Your retail business must offer retail items that are different from those of your competitors. Research what your competitors offer and how they price their retail items. Unique retail items identifies your retail business as the place to go for unique retail store and differentiates it from others.

Placing and Promotions

The location of your retail business is referred to as place. Document your location and explain how it will affect your success. Is your retail establishment, for example, next to a densely populated society or in the mall? Discuss how your location could provide a consistent flow of customers.

Promoting your retail business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your retail items. A few marketing methods you could consider are:

• Pre-Opening Events
• Strategies for Online Retail Marketing
• Email marketing 
• Marketing through influencers
• Merchandising in-store
• Curbside displays
• Collaborations and partnerships
• Referral programs

You should also think about your retail company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other retail businesses. Ensure that your USP is reflected in your marketing.

Operations Plan

While the previous sections of your retail business plan described your goals, your operations plan discusses how you will achieve them.

An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operational plan should be able to answer the following questions:

• Who – Personnel in charge of completing specific tasks.
• What – A breakdown of the responsibilities of each personnel.
• Where – The location of everyday operations.
• When –The deadlines for completing tasks and goals.
• How much – The amount of money required for each department to perform their job.

Your operations plan should be divided into two individual parts, as seen below.

Your daily short-term processes include all the tasks involved in your retail store, maintaining your shop space, packing your retail items, completing sales transactions, choosing and dealing with vendors, and delivering the final products to your clients. etc.

Long-term goals are milestones you hope to reach. they might be growing your business, such as introducing new items or retail outlets, meeting particular sales milestones, and meeting other essential business-oriented goals like recruiting more staff, opening additional locations, and so on.

Management Team

When writing a startup retail business plan, the management section’ outlines your management team, staff, resources, and how your business ownership is structured.

This part may be easily organized by dividing it into the following points:

Ownership Structure

Internal Management Team

External Management Resources

Human Resources

This section outlines your retail business’s legal structure. If your company is a sole proprietorship , it may simply be one phrase. It might be longer if your company is a partnership or a corporation . You should make it a point to clarify who owns what part of the business.

This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your retail business. Ideally, you and/or your team members have direct expertise in the retail business. If this is the case, highlight your experience and skills.

Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with retail business.

An advisory board would consist of 3 to 7 people who would serve as mentors to your retail company. They would assist in answering queries and providing strategic direction.

If necessary, search for advisory board members with expertise running retail business.

Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches. 

The final topic to consider in the management area of your retail business plan is your human resource needs.

Financial Plan

As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.

Income Statement

A profit and loss statement is more commonly called an income statement . It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. Will you serve 50 customers per day or 200? Will sales grow by 2% or 8% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.

Free: Income Statement Template

Create a financial statement for your business by downloading our free income statement templates.

Balance Sheet

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.

The balance sheet shows your retail business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

• Assets: Tangible goods with the monetary worth that the company owns.
• Liabilities: Debt owing to a company’s creditor.
• Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your retail business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $500,000 to build out your retail shop will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your retail business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a retail business:

• Fees for registering a retail business
• Taxes and licenses costs
• Business insurance
• Payroll or salaries paid to staff
• Facility rent and security deposits
• Construction / remodeling
• Start-up Inventory

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Bonus Tip: Find out what to include in a business plan appendix when writing a retail business plan.  

Summary of the Retail Business Plan

A retail business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the retail business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your retail business.

Do you want to Finish Your Retail Business Plan in less the one day?

Wouldn’t it be nice if your business plan could be completed faster and easier?

With wise business plans Business Plan Template , you can finish your retail business plan in just 6 hours or less with a 30-Day Money-Back Guarantee!

OR, we can create your retail business plan for you

Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

Download Our Startup Retail Business Plan Template

We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.

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RETAIL EDUCATION & TRAINING SOLUTIONS

Starting a Retail Business

The definitive guide.

This is a complete guide on how to start a retail business (online or offline)

You will learn about:

• Staring a Retail Business
• Managing Your Business
• Growing the Business
• Monitoring Performance

STARTING A RETAIL BUSINESS CHECKLIST

Before we start; we’ve compiled the most important tasks involved in starting a retail business in a free checklist, to help keep you organized. 

Starting a Retail Business Checklist Sections

That tasks are categorized into the following sections:

In this guide, we are going to go through most of those tasks into more details, as well as the areas you will need to know to start and manage a retail business

Here we will talk about the process of starting a retail business

We will be covering in details :

• Choosing your product line
• Choosing brand name & logo
• Choosing site location & domain
• Finding suppliers
• Building Your Team

CHOOSING A PRODUCT LINE

The most important thing when starting a small retail business is defining exactly what you want your brand or business to stand for. This applies whether you will operate as a boutique or you want to go private label. 

Many times entrepreneurs start with a small product mix and then keep branching out and adding to the product assortment until they reach a point where they are almost selling everything to everyone. In fact, some big retailers even fall into this trap.

If you really want to survive & compete in today’s hyper-competitive retail landscape as a small business owner, you want to have a solid brand positioning that will attach a certain group of customers to your brand, and make them think about your products every time the need arises for the particular features you have positioned for.

The way to survive in the current retail landscape is by building brand loyalty, and for this you need a strong positioning

Product lines examples.

• Clothing & Accessories
• Electronics & Gadgets
• Toys & Baby Gear
• Home Furnishings
• Beauty & Cosmetics
• Lingerie & Loungewear
• Pet & Pet Supplies

CHOOSING A BRAND NAME & LOGO

Another thing to consider while starting a retail business is to choose a brand name that will resonate with your targeted customer demographic and reflect your product line.

It goes hand in hand with the positioning concept we discussed before. When you choose the right brand name you will make it easy for your customers to connect that name to certain products and to remember it when they need those products.

You will want to make sure your brand name is easy to read and spell and also easy to be included into a logo design. If your brand name is too long it might be difficult to make a nice logo design of that name. 

You also need to make your research to ensure your brand name doesn’t already exist and is not violating any trademarks (we included the link to the U.S database below). Furthermore; you don’t want to choose a brand name that might have negative connotations in other languages or cultures where your customers might belong to.

Things to Consider

• Name Length
• Domain Availability
• Trademarks Infringements (Click to Check)
• Negative Connocations

CHOOSING SITE LOCATION & DOMAIN FOR YOUR NEW RETAIL BUSINESS

You will find everyone in real estate saying “Location, location, location” and this is really for a reason. Your store’s location is one of the most important choices that you will make when starting a retail business. It could literally make or break your business.

The reason the location is so important is that you want to be “found” by potential customers. You can’t expect to get all your customer by referring them through your website or social media. You want a constant flow of traffic that brings you new customers everyday who haven’t heard about you before.

The biggest consideration here while choosing the location will be the rent price. The best locations will always have high rents. But the question is: Is this rent feasible? 

You will find many times that some landlords overcharge for the store because it is in a very good location. However; when you start doing your feasibility and budgeting you will find that at this rent you can never turn any profits.

On the other hand, we strongly advice against renting a location only because it has a cheap rent. You will always have fixed costs in your retail business, and if the location you get is not bringing enough revenue to cover those costs you will be losing money every month.

The other consideration when it comes to the rent is the lease terms. Make sure you consult your lawyer before you commit to a rent agreement and always have an exit clause that will allow you to end the lease after a certain lock in period, just in case your business didn’t perform as expected.

The final thing you want to consider, especially if you are starting an e-commerce business, is the domain availability of your brand name. It would be perfect if you can choose a brand name that has a .com domain available. It is not easy to find, but if your brand name is unique and creative enough (which you would want anyways) you will find it.

When it comes to store locations, you really get what you pay for

• Lease Terms
• Domain Name

FINDING SUPPLIERS

Now that you know exactly what products you want to sell, it is time to go out in the market and find suppliers and manufacturers.

Always keep in mind that your suppliers are long term business partners and will have the biggest effect on your success. When you have this in mind your approach in searching for suppliers will totally change. 

You will not be focusing solely on price or payment terms , but rather on the supplier’s capability to fulfill your business needs over time in a timely manner and with great consistency.

Your suppliers are your most important business partners

The task you have to perform here is careful due diligence . You will have to examine your suppliers’ business, their history in the market, their other customers and if possible even travel to see their manufacturing facility. 

The last thing you want is to launch a product and then face customer dissatisfaction due to quality issues. Or launch a nice product and build a customer base for it and start spending on marketing, just to find that you are not able to get replenishment from your supplier because their business cannot handle the volume.

Finding suppliers is not a cheap process. You might need to travel to attend trade shows (which we have found to be the best way to find credible suppliers) or, as mentioned before, travel to see the factories. Don’t expect to do the entire process online unless you are expecting to be extremely lucky!

If you choose to do everything online though, then we recommend taking your time and ordering samples first. Take these samples and use them and expose them to normal wear & tear conditions and see how they hold. You will find that in many times, after you use the product yourself, you will drop that supplier from your list, because the product didn’t hold well and you don’t want to associate your brand to this quality level.

BUILDING A TEAM

Once you have secured the location and found the suppliers that will make your products, you should start building your retail team during the time the store is being fit out for trading.

If you will be managing the store yourself, then you will probably only need to hire sales associates and maybe one supervisor to be there in your absence.

Read our article on being a store owner and  managing retail store operations , for an idea on your daily tasks as the store manager and what to expect.

When you are ready to expand or step out of the business, it will be time to think about hiring a store manager and adding more members to the team.

USEFUL DOWNLOADS FOR STARTING A RETAIL BUSINESSES

In addition to the checklist for new retail businesses we shared here, we also have a set of free downloads and templates for retail owners.

These include:

• Retail Business Plan Template
• 4-5-4 Retail Calendar
• Store Layout in Excel

RETAIL MANAGEMENT 101

• Foundations of Retail Management
• Key Retail Functions
• Keys to Success

Relevant Resources

• What is Retail?
• Brick & Mortar Retail vs. Online Retail
• Private Label
• How to Start a Clothing Line?
• Supplier Bargaining Power
• Branding & Positioning Course
• Retail Operations Management Course

In this chapter we will cover the process of running your retail or e-commerce business

We will be explaining in details :

• Buying & Merchandising
• Generating & Reading Reports
• Understanding Retail Kpis

BUYING & MERCHANDISING

Now that you are very close to starting a retail business and probably will start selling to customers soon, you need to place your first order of merchandise from the suppliers you have found earlier.

The process of buying starts with creating a buying budget, also know as Open-to-Buy budget . The OTB is closely connected with your sales budget or sales forecast for the first year. The whole idea is to buy enough product to be able to achieve your planned sales, so that at the end of the year you will get the planned profits.

This process is very critical to master in retail, because it will directly affect your sales as well as your cash flow. You ideally want to avoid ending up in an overstock or under-stock situation, where you either have to clear merchandise at steep discount and lose margins or not having enough products to sell and lose customers over time

After determining this budget you will start allocating those amounts to certain products and placing your orders with the suppliers. You don’t have to place all the orders at once, but rather based on their  order lead time .

You will start  pricing  your products to ensure you are getting enough  gross margin  out of your operation to pay all your other bills.

While setting your initial price take into consideration that you will be running different promotions and discounts throughout the year, and this will reduce your final margins.

Merchandising

The first thing to do while setting up your  merchandising  system is to create a  merchandise hierarchy . This is simply creating a map with all the product categories and classes that you plan to have in your store, so that when you start ordering and receiving those products you will assign each SKU to a certain hierarchy. This is your way to organize all the different kinds of products and also to help you in reading & understanding the reports in the future.

Now after you start receiving those products, you will start merchandising them in your store. Whether online or offline, merchandising is how you allocate these products to your stores and display them to ensure their availability to the customers at all times.

Read Also:  Inventory Allocation

You will start  visually displaying  those products in your shop and ensure they are replenished properly to avoid missed sales opportunities. This process can be automated on your system, so that you always be notified when some products are running low.

Read Also:  Replenishment Systems in Retail

Despite the automation it is also important to generate your merchandise reports periodically and review them to ensure no products are running low on stocks and you haven’t been notified. It is also important for the person doing the merchandising and allocation to visit the stores from time to time. This is because reports don’t tell the full story.

Every store is unique in its space, layout and customer profile. It is essential to link all those attributes to the merchandising strategy for this particular store, and this can not be done optimally without visiting the store.

Visual Merchandising

Another term related to merchandising is visual merchandising. It refers to the visual display of products in a way that maximizes their sales and creates a nice visual story in the store.

It usually starts with deciding about the store layout and fixtures, and then displaying the products as per a  planogram . 

Tip : Read our store layout article linked above for a simple and free way to create a layout in excel.

There are different store layout models, but the most popular are:

• Forced Path Store Layout
• Grid Store Layout
• Free Flow Store Layout

GENERATING & READING REPORTS

An essential part of managing a retail business is generating and reading the different business reports. 

These reports could be 

Sales Reports

Stock Reports

• Financial Reports.

You will generate these reports periodically, i.e weekly, monthly or quarterly, based on the type of report.

Your sales reports will show you your sales performance against your budget and through your KPIs reports you will get to know why you are above or below budget. Based on these indicators you will then start tweaking your sales strategy to catch up with your budget.

The Sales KPIs for a retail business include:

• ATV: Average Transaction Value
• IPC: Items per Customer

Your stock reports will show your stock levels, the age of this stock and the sell through of the different products or collections (Sell through means how much these products sold out of the initial ordered quantity). 

Stock KPIs will include:

• Stock Aging
• Stock Cover
• Stock Obsolescence 

When you read your stock reports you will then action a plan to clear certain stocks that have low sell through, order new stocks if products have sold quicker than expected or reconsidering future buying orders for products that are not selling as expected

Your stock levels are very dynamic and keep changing based on your sales patterns. It is very important to be on top of your stock situation at all times.

• Financial Reports

Your financial reports will show a bigger picture of the business. They show how the business is performing in terms of profitability, cash flow, working capital and assets & liabilities. 

RETAIL MATH FUNDAMENTALS

• Learn the key retail metrics
• Understand connections & applications
• Download the workbook & practice

Further Reading

• Retail Financials Benchmarks

In this chapter we explain how to grow your retail or e-commerce business.

• Marketing & Branding
• Digital Presence
• Connecting Online to Offline
• Retail Expansion

MARKETING & BRANDING

Marketing is an integral part of any business and retail is no different. In fact it is even more important in retail because retailing has a direct to customer approach.

We already discussed the importance of having a defined branding strategy before starting a retail business, so you can stand out & compete in the market. Here we want to link this strategy to other aspects of retailing.

You will want to make sure that your buying and product sourcing is reflecting your brand position and what you stand for. Typically retail brands are segregated into value brands, premium brands and luxury brands .

Value brands present a good value (in terms of price level) to the customers and generally attract people who search for bargains or the lowest price in the market.

Read Also : Everyday Low Price and Off Price Retailers

Premium brands present a different proposition. They offer products at a higher price and also a better quality. Their customers usually don’t focus much on the price they are paying or wait for the sale to buy the product. Their customers concentrate more on other aspects, such as newness, design, quality, convenience…etc.

Luxury brands target a different segment in the market and offer exclusivity. It goes without saying that the quality has to be good, but what is more important for the customers is the exclusivity aspect. They don’t want to see this brand being discounted in the market and made available to everyone at lower price after they had paid a premium for.

Read Also: What is Luxury Retail?

Depending on which market segment your brand is targeting you will then create your product offering to suit this segment. By product offering we mean the features of your products as well as the price level.

This is a very important step, because, as we mentioned before, you don’t want to be everything for everyone. Also to grow your business you need to start attracting more customers from the customer segment your brand is targeting. For this you need a clear branding strategy

• Market Segment
• Branding Strategy
• Product Offering

ESTABLISHING A DIGITAL PRESENCE

If you are starting a retail business you should create a digital presence from the start.

By digital presence we mean having at least a basic website that shows your store locations and social media profiles that showcase your product offerings. At later stages you might want to establish an e-commerce platform and fulfill directly from your stores, or have a click & collect ( BOPIS ) option.

When you think about social media it is important to identify the platforms where you think your target customers will be present. You will not be able to maintain a presence on all the social media platforms, so doing a research on that will save you a lot of time and efforts.

Some product categories are great for instagram and others are better suited for Linkedin. Some products shine on Pinterest and others have more following on Snapchat.

Decide on few platforms and start executing.

You will need a domain registrar to register your domain, a hosting provider to host your website and an image editor to create artwork. Check out our business tools page for recommendations and special offers from our partners.

To connect the digital world with the physical one if you are running a brick & mortar , consider listing your shop on Google My Business .

This will allow you to show up in Google Maps when people search for your business or for the products you sell. After you list it they will send you a verification code to your physical location and after that you will be able to manage that profile on Google and respond to customer reviews.

It is also a good practice to optimize your website for SEO for the products you sell in the area you are operating in. You can hire a freelancer to do it for you.

• Domain & Website
• Social Media Platforms
• Google My Business

EXPANDING YOUR RETAIL BUSINESS

If your first retail location starts showing signs of success and you have the resources, it might be time to think about retail expansion.

Retail businesses are very scalable, and usually more profitable when they expand.

 This is because, as you expand, you will build on your initial success and use all the established resources that you have created (brand identity, suppliers, customer base, team,..etc) and share them with the next locations.

You can check out our comprehensive course on retail growth and expansion on all the different ways to expand a retail business.

RETAIL GROWTH & EXPANSION

• The different strategies to grow a retail business
• Market & product assortment expansion
• Business model innovation
• From Brick & Mortar to Online
• Brick & Mortar Retail vs. Online: Cost Comparison
• Customer Lifetime Value in Retail & Ecommerce
• Strategic Management Course
• Retail Growth & Expansion Course

In this chapter we will discuss monitoring your retail business performance

We will cover in details :

• Budgeting & Forecasting

FINANCIAL REPORTS

Now that you have been in business for quite some time, it is important to know how you are doing financially.

After all, the ultimate goal of any business is to maximize shareholders’ value. In order to improve the financial performance of the business over time, you have to read and act on its financial reports.

These Financial Reports include:

• P&L Statement
• Balance Sheet
• Cash Flow Statement

The balance sheet statement will show the assets & liabilities and will give a better picture on the historical performance of the business.

The Cash flow statement will show the movement of cash in & out of the business.

The ultimate goal of any business is to maximize shareholders' value​

Budgeting & forecasting.

Now that your retail business is reaching its first year, you will need to start budgeting for the next year. Budgeting for your retail store will depend on how your store has been performing this year and how much you expect it to grow next year.

The retail budgeting process is very critical because you will plan your buying and your costs based on it.

The Steps include:

• Sales Budgeting
• Cost Budgeting
• P&L Budgeting

Based on the results you are getting this year you will start forming a plan for next year. You will see where your costs have shot up for example and try to rectify this in next year’s budget. You will also assess the trend of your business and might want to increase spending in some areas, such as marketing, if you can see a good potential & opportunity.

If you plan to expand the business next year, by opening a new store location and adding some related products, this is the time you start planning for that and allocating it in your CAPEX (Capital Expenditure) budget for next year.

RETAIL BUDGETING & PLANNING

• The step by step retail budgeting process
• Set monthly targets adjusted to seasonality
• Templates download & practice exercise
• Retail Budgeting Process
• Retail Financial Statements
• P&L Management
• What is Working Capital?
• The Balance sheet Explained
• Retail Cash Flow Management

STARTING A RETAIL BUSINESS IS A JOURNEY

Starting a retail business is an exciting learning journey for the retail owner.

You will find that you are learning about all the aspects of doing business, just by working on this project.  From setup, to marketing, operations, people management, supplier relationships, and even business financials. 

You will learn as you go, and perfect the process over time.

Check out our different in-depth  retail management courses  that will teach you all the foundations to become a retail business manager.

THE PROFESSIONAL RETAIL ACADEMY (PRA) ™

• In-depth retail management courses
• Learn the best practices of the industry
• Download ready-to-use professional templates
• Get certificates of completion for each course
• One membership = Access to all courses

Bottom Line

Starting a retail business is a very holistic process that will teach you a lot about different aspects of doing business.

To learn more about retail, feel free to browse Retail Dogma, read all the articles for more in depth knowledge about the different topics and use our free online tools.

Rasha has 14+ years of retail & ecommerce experience. She has started an ecommerce business in 2008, and later joined corporate retail and worked at H&M , Bath & Body Works,   Victoria’s Secret and Landmark Group in operational and end-to-end senior management roles . She’s lived in 4 different countries, speaks 3 different languages and holds a BSc. in Pharmaceutical Sciences and an MBA in Strategic Management & Marketing.

You can follow her on Linkedin

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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 . 

More From Forbes

Top 5 essentials for new entrepreneurs starting a business.

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Top 5 Essentials For New Entrepreneurs

Being an entrepreneur is one of the most exciting and rewarding endeavors you can undertake. It offers the freedom to innovate, the opportunity to pursue your passion, and the potential for significant personal and financial growth. Because the path to entrepreneurial success is filled with challenges, it's crucial for new entrepreneurs to set themselves up for success by establishing a solid foundation from the start.

Having the right skills is crucial for setting your business up for success. These skills enable you to navigate the complexities of entrepreneurship with confidence and precision. Effective communication, strategic thinking, financial literacy , and marketing acumen are just a few of the essential competencies that can help you make informed decisions, manage resources efficiently, and adapt to changing market conditions. By honing these skills, you can build a resilient business, attract and retain customers, and create a sustainable growth strategy.

In essence, the right skills empower you to transform challenges into opportunities, driving your business toward long-term success.

Here are the top five essentials every new entrepreneur needs when starting a business:

1. clear vision and mission.

Your vision and mission are the cornerstones of your business. They define what you want to achieve and how you plan to get there. A clear vision provides direction and purpose, while a mission statement outlines your business's core values and goals. These elements not only guide your decision-making but also inspire your team and attract customers who resonate with your purpose.

Tip: Spend time refining your vision and mission. Make sure they are specific, achievable, and aligned with your personal values.

2. Comprehensive Business Plan

Apple ios 17 5 major iphone software release should you upgrade, baby reindeer piers morgan seeks richard gadd for interview after real martha segment, if you feel out of place at work here are five strategies for success.

A well-thought-out business plan is essential for laying out your roadmap to success. It should include your business goals, target market analysis, competitive landscape, marketing strategy, operational plan, and financial projections. A robust business plan helps you stay focused, secure funding, and measure your progress.

Tip: Use business plan templates and resources available online to structure your plan. Regularly update it as your business evolves.

3. Strong Financial Management

Don’t underestimate the importance of financial management . Sound financial management skills are crucial to build a financially stable business. This involves budgeting, forecasting, managing cash flow, and keeping accurate financial records. Understanding your finances allows you to make informed decisions, avoid unnecessary debt, and ensure your business remains profitable.

Tip: Consider hiring a professional accountant or using accounting software to keep your finances in order. Review your financial statements at a minimum of monthly to stay current on your business’s financial health.

4. Solid Marketing Strategy

A strategic marketing plan is vital for attracting and retaining customers. This includes understanding your target audience, creating a strong brand identity, leveraging social media, and utilizing various marketing channels to reach potential customers. Consistent and effective marketing helps build brand awareness and drives sales.

Tip: Invest in digital marketing tools and techniques such as SEO, content marketing, and email marketing. Track your marketing efforts and adjust your strategies based on what works best.

5. Supportive Network and Resources

Building a supportive network of mentors, advisors, and peers can significantly impact your entrepreneurial journey. These connections provide valuable advice, support, and opportunities for collaboration. Additionally, access to resources such as industry events, workshops, and online communities can help you stay informed and motivated.

Tip: Join local business groups, attend industry conferences, and engage with online forums. Don’t hesitate to seek mentorship and build relationships with experienced entrepreneurs.

The bottom line is that embarking on the entrepreneurial journey is both thrilling and demanding. By focusing on these five essentials—clear vision and mission, comprehensive business plan, strong financial management, solid marketing strategy, and supportive network and resources—you can set a strong foundation for your business. Remember, success doesn’t happen overnight. Stay committed, keep learning, and adapt as needed. With determination and the right tools, you can turn your entrepreneurial dreams into reality.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and I also guide established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to

replace any professional or expert accounting and/or tax advice whatsoever.

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How to start a business: 10 essential steps

Content Type: Article

Increase the likelihood that your idea will stand the test of time by taking the following actions.

You have a brilliant idea for a business. Now you need a website, retail shop or an office—or maybe all three—so you can start generating revenue as soon as possible, right?

Not so fast, says Molly E. Schlobohm, managing partner of Sound Strategy Consulting in Seattle. Having started two businesses, Schlobohm serves as a mentor with SCORE, a national nonprofit that provides free and confidential business advice to entrepreneurs and is funded in part by the U.S. Small Business Administration (SBA). Before you throw a grand opening, Schlobohm recommends you write a business plan.

The purpose of the plan is not to perfectly predict the future. In fact, Schlobohm acknowledges things may not go as you expect. Writing a plan  forces you to think through critical aspects of your business—insurance, taxes, pricing and more—before you open your doors. That way you can spend your precious hours growing your business rather than fighting fires.

Failing to create a plan can have major consequences. Schlobohm has seen entrepreneurs come up with a great idea, product or service, but fail to sit down and think out what the next three-to-five years might look like. “A year or 18 months after they launch, they’re working seven days a week, and they burn out,” Schlobohm says. “And then the business closes.”

If you want to give your business idea the best chance to succeed, these steps will help you refine your business idea and craft your plan.

Examine your why

Start your plan with honest answers to three questions. Are you excited about offering a product or service? Does your offer fill a void in the market? (You can either solve a problem that others don’t or provide a solution that’s superior to what’s already available.) Or do you just want to avoid having a boss?

If you answered yes to the first two questions and no to the third, you have what Schlobohm calls the “entrepreneur’s spirit” and are starting from the right place. If your primary motivator is saying goodbye to your boss, entrepreneurship may not be the right path. “Being your own boss is actually not as great as it sounds,” Schlobohm says.

Seek professional advice

Hire an accountant sooner rather than later (and maybe a lawyer, too). When you’re just getting started, an online legal service may be enough for setting up the basics, including an LLC or a corporation, says Schlobohm. But an accountant is essential.

Figure out how much you really need to charge

The number might surprise you because you need to include so many items in your pricing strategy : the cost of goods sold, taxes, marketing expenses, what you want to earn and, if necessary, rent and employee pay.

To determine your billable hourly rate for a service business, dividing your salary by a 2,080-hour work year—or 40-hour work week—is just the start. “Tack on another 40% because you have to pay all your employment taxes plus your health insurance,” Schlobohm says. Don’t forget to factor in office equipment, software and other recurring costs.

If you’re going to sell a physical product, selling it online can keep costs down. “Once you open a retail space, the overhead becomes significant,” she says. Bear in mind that commercial leases, either for retail or office space, often run five or 10 years, and therefore require a bigger commitment than a typical one-year residential lease.

Don’t forget about insurance

In addition to your own health insurance, you may want coverage for liability, cyberattacks  and more. If you have employees, the federal government requires you to carry unemployment, workers’ compensation and disability insurance. Some states have additional requirements.

Leverage resources from SCORE and the SBA

Access planning templates , low- or no-cost workshops and mentors to help you with every step of starting a business , including structuring your business, getting a business license and securing funding.

Build a following

Use social media  and in-person networking to connect with potential customers. “That way, when you’re ready to launch, you already have people waiting to buy,” says Schlobohm.

Start documenting processes

Prepare to grow before making your first sale by documenting your processes.

Nothing fancy is required. A simple word processing document with step-by-step instructions is all you need. Having one could save you a tremendous amount of time and money in the future, especially once you start hiring employees who need training.

Do your homework

“I love the energy of aspiring entrepreneurs, but it’s important to be realistic,” says Schlobohm. “Sometimes, I have to say, ‘Five other people are already doing what you thought nobody was doing,’ so it’s time to do more research.’”

She recommends a SWOT analysis, which looks at your business’s strengths, weaknesses, opportunities and threats. Be sure to include research on your competitors  and the state of the industry you want to enter.

Testing your idea is another valuable research technique. Sell your service to a few clients at a discounted rate. Invite people to try a prototype of your product and answer a few questions. Low-cost, low-risk experiments help you better understand what prospective customers want. Then, you can adjust if you need to before you’ve built a website, rented an office or ordered thousands of dollars of inventory.

Don’t quit your day job yet

Include in your plan a clear picture of your finances. Schlobohm recommends remaining employed as long as you can  while building your business. Have enough money saved to pay all your personal expenses for at least six months.

Launch and refine

Once you do throw that grand opening party, be it online or in person, don’t forget to revisit and regularly update your business plan. “It’s a living, breathing document,” Schlobohm says.

Start today

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The $5 McDonald's meal is making a grand comeback in June — but only for a month

• McDonald's plans to launch a limited-time $5 meal.
• In first-quarter earnings, the company's leadership highlighted how inflation has affected customers.
• Other fast food chains are also worried about affordability.

McDonald's is looking to launch a $5 meal in the US in a move to bring back price-sensitive customers .

The meal includes four items, people familiar with the matter told Bloomberg and Restaurant Business . Customers would choose between two of the chain's signature burgers — a McChicken or a McDouble — and get four-piece McNuggets, fries , and a drink. The $5 promotion would last for a month, Bloomberg reported.

The deal will start on June 25, The Wall Street Journal and other outlets reported.

The discussions about the new deal come three weeks after the fast food giant's first-quarter earnings call, where leadership highlighted how customers are increasingly price-sensitive.

"I think affordability is clearly an area where consumer expectations are heightened," McDonald's chief financial officer Ian Borden said on the call. "Obviously, they're getting hit ," by inflation, he added.

The company previewed a value meal on the earnings call without any specifics. CEO Chris Kempczinski said McDonald's has local value meals around the US, but no standard national offering like competitors do.

Related stories

A $5 meal would be a stark drop from current prices, especially in higher-cost cities, according to a Business Insider analysis.

A meal consisting of the same four items — a McChicken, fries, a drink, and four-piece chicken nuggets — costs $18.26 in downtown New York City. In downtown San Francisco, the McChicken version costs $16.15, and the burger variant costs $17.75.

The new bundle would be priced lower than a Happy Meal, which starts at $6.39 in downtown Manhattan.

The company's stock has fallen about 7% year-to-date as investors worry about rising costs and intensifying fast-food competition.

Fast-food chains across the US are grappling with fewer orders from customers who no longer find their meals affordable. Wendy's, Shake Shack , Starbucks and Burger King parent Restaurant Brands International have all said in their latest earnings call that they will exercise caution on prices.

"We're going to stay careful on pricing," Gunther Plosch, Wendy's CFO, said in its earnings call earlier this month. "I don't think we're going to get too greedy."

Fast-food giants have also been hit by California's new minimum $20 hourly wage for limited-service restaurants. Franchisees that have raised prices are worried they may lose customers to sit-in dining chains like Chili's and Applebee's , which are not subject to the wage hike.

McDonald's did not respond to an immediate request for comment sent outside standard business hours.

Watch: US vs India McDonald's | Food Wars

• Main content

Mitsubishi Motors Announces Momentum 2030, North American Five-year Business Plan

• Electrification will advance with a blend of powertrains – hybrid, plug-in hybrid, battery electric
• One new or completely refreshed vehicle to debut each year between fiscal 2026 and fiscal 2030; new vehicles to be introduced across more segments
• Dealer-count to increase to cover more sales markets across the U.S.; new-design dealerships to be introduced
• Technology and innovation will be the hallmark of MMNA's sales, marketing, and customer satisfaction processes
• MMNA reconfirms commitment to its dealer partners and the dealership sales model

Mitsubishi Motors North America, Inc. (MMNA) today announced details of its forward-looking North American business plan, dubbed "Mitsubishi Motors Momentum 2030", outlining business and product plans that start immediately and run through fiscal-year 2030. The plan was first revealed to the company's dealer partners in a national dealer meeting in Nashville, Tenn., on May 14, and was met with considerable enthusiasm and excitement.

"Mitsubishi Motors is at a pivotal point in North America, charting a bold, clear and attainable plan for our future success in the United States," said Mark Chaffin, MMNA president and CEO, of the plan. "Back in 2018, we started to consider our path forward, and that plan brought us a new headquarters location in Tennessee; new vehicle launches that led to record Internet search results, sales records and brand successes; and outstanding dealer partners winning customer satisfaction awards. Momentum 2030 will build on that, setting the stage for new powertrains and vehicles being introduced, new dealerships being opened, and new technologies being developed to make the shopping and ownership experience faster, easier and more enjoyable."

The path to Momentum 2030 is defined by four key points:

• A path to electrification
• A path to a renewed and expanded product line-up that will strengthen Mitsubishi Motors in North America
• A path to a modernized retail sales model
• A path to network expansion and sales growth

In revealing Momentum 2030 to the company's dealer partners, Mark Chaffin discussed how MMNA will continue its move toward vehicle electrification between now and fiscal 2030, with a vehicle lineup powered by a selection of advanced-technology internal combustion engines, hybrids, plug-in hybrids and battery electrics.

Additionally, Chaffin announced the product highlights that will define the company's showroom lineup going forward: two all-new vehicles to debut into segments in which the company does not currently compete, as well as a new or completely refreshed vehicle to debut each year between fiscal 2026 and fiscal 2030. By fiscal 2030, MMNA's vehicle lineup in the U.S. will nearly double from today's four vehicles.

A further benefit of Momentum 2030 also will be the boost to Mitsubishi Motors' investment across North America in both people and production, as some vehicles will be produced locally utilizing Alliance assets.

MMNA will be a leader in industry change and evolution. The modernized sales and service model is highlighted by future developments that will see more technology introduced into the sales process, as the brand's new customers skew younger and more tech-savvy.

Looking to the future of the company's retail model, MMNA will expand into new markets around the U.S. in which it does not currently have a retail footprint, in order to make the company's vehicles more accessible to more customers. This is expected to bring an increase in the company's sales numbers between now and 2030. New retail concepts will define the future look and feel of these new facilities.

Chaffin closed the recent dealer meeting by saying, "The next 10 years will be great for this brand. MMC is making a significant investment to ensure our collective future. Momentum 2030 will drive more sales, more service, more Mitsubishi vehicles on the road and more Mitsubishi dealer partners around the country. Yes, this is our time, Team Mitsubishi."

ABOUT MITSUBISHI MOTORS NORTH AMERICA, INC. Through a network of approximately 330 dealer partners across the United States, Mitsubishi Motors North America, Inc. (MMNA) is responsible for the sales, marketing and customer service of Mitsubishi Motors vehicles in the U.S. In its recently announced Midterm Plan –  "Challenge 2025"  – MMNA's parent company Mitsubishi Motors Corporation (MMC) has committed to accelerating its efforts toward a sustainable carbon-neutral future, setting goals of 40 percent reduction in vehicle CO2 emissions and 50 percent reduction in operational CO2 emissions by 2030. Additionally, MMC has set targets for global sales of electrified vehicles at 50 percent by 2030 and 100 percent by 2035, leveraging a blend of plug-in hybrids (PHEV), hybrids (HEV), and pure electrics (BEV).

MMNA has its headquarters in Franklin, Tennessee, as well as corporate operations in California, Georgia, Michigan, New Jersey, and Florida. 

For more information on Mitsubishi vehicles, please visit  media.mitsubishicars.com .

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