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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.

Privacy Overview

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.

Other Helpful Business Plan Templates

Ecommerce Business Plan Template Clothing Store Business Plan Template Beauty Supply Store Business Plan Template T-Shirt Business Plan Template

How to write a business plan for a retail store?

Whether you are launching a new store or looking to grow an existing retail operation, having an effective and comprehensive business plan is essential. 

Luckily for you, this in-depth guide will provide all the information needed to write a successful business plan for any retail store.

We’ll cover why writing a business plan is important, what information should be included in your retail store business plan, how the document should look, and which tools can help you create one quickly and easily. 

So, let’s get started!

In this guide:

Why write a business plan for a retail store?

• Information needed to create a business plan for a retail store?

How do I build a financial forecast for a retail store?

The written part of a retail store business plan, what tool should i use to write my retail store business plan.

There are several reasons to write a retail store business plan. Below, we cover some of the most important ones!

To draw up a roadmap

Writing a business plan for a retail store is an essential part of running a successful business. 

It not only helps set objectives and goals for the next 3-5 years but also provides existing retail stores with an opportunity to evaluate their businesses’ current performance and develop strategies for future growth.

A comprehensive business plan can help pinpoint areas in need of improvement, identify potential opportunities, and create actionable steps towards achieving these objectives.

Writing a business plan forces you to think critically about your business’s direction, long-term goals and financial performance which are all necessary components of any successful enterprise.

To compare financials

A well-crafted business plan allows you to regularly compare actual performance against what was planned, enabling you to recalibrate your financial forecasts accordingly in order to maintain visibility on future cash flows. 

By taking this approach of constantly assessing progress and making adjustments along the way, you give yourself the best chance of anticipating any potential problems such as a shortfall in cash.

To secure financing

Whether you are starting from scratch or have an existing business, creating a comprehensive and well-thought out business plan is vital for gaining the financing you need from a bank. 

Banks will use your written document as evidence that you are capable of repaying the money they loan to your company. A detailed and thorough business plan can help convince potential lenders that investing in your venture would be a smart decision.

Similarly, equity investors will carefully examine whether or not their investment is likely to generate a worthwhile return.

They want evidence of healthy growth, profitability and cash generation potential in order to take the plunge. 

Now that we have discussed why it is important to create a business plan for a retail store, let's move on to the information needed to create one.

Create your retail business plan online!

Think your retail store could be profitable? Find out how with a business plan!

Information needed to create a business plan for a retail store

Writing a retail store business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your plan!

Carrying out market research for a retail store

Carrying out market research is an important step before writing a business plan for a retail store. Doing so allows you to accurately forecast revenues and gain valuable insights into their target markets, competitors, and the industry as a whole. 

It also helps you identify opportunities that can be capitalized on in order to maximize returns from your investments. 

By understanding the needs of customers and potential buyers, retailers are better equipped to develop effective marketing strategies that will help increase sales and profitability. 

Furthermore, researching trends in the retail sector gives businesses an edge over their rivals by helping them anticipate changes in customer preferences ahead of time. 

This should help you stay one step ahead of your competition while staying relevant in today's ever-evolving marketplace.

Developing the marketing plan for a retail store

Creating a marketing plan for a retail store involves setting aside dedicated funds for sales and marketing activity.

This budget must be carefully calculated in order to ensure that the right amount of resources are available to generate the desired level of sales.

Careful consideration should be taken when constructing this marketing budget, as it will need to cover everything from advertising and promotions to staff wages and other associated costs.

By incorporating this budget into the overall business plan, it will be possible to ensure that all of the necessary resources are available to deliver the expected growth.

The staffing and equipment needs of a retail store

It is important to consider the recruitment plan and investments that will be required to set up and expand the business as this will be needed when creating the financial forecast.

This includes costs associated with running a retail store, purchasing equipment such as cash tills, clothes rails and baskets, as well as establishing any necessary training programs.

Additionally, you should take into account any other overhead costs such as rent, insurance, travel expenses, and more.

Once you have the information needed to create the business plan for your retail store, it is time to start creating your financial forecast.

The financial forecast for a retail store is made up of four main parts: 

• The Profit and Loss Statement (P&L) shows how much income the retail store generates over time.
• The Balance Sheet shows the store's assets, liabilities, and equity at a specific point in time.
• The Cash Flow Statement tells you if more money is coming in or going out over a period of time. 
• The Sources and Uses Table explains where funds are coming from and where they are going to help fund the business venture.

The projected P&L statement

A projected P&L statement for a retail store shows how much money the store might make and how profitable it could be in the future. 

Investors will look at this before deciding on whether to invest money or not. They would like to see a reasonable return on their investment within a given period.

The projected balance sheet of your retail store

A retail store balance sheet is a financial statement that provides a snapshot of the store's assets, liabilities, and equity at any given point in time. 

Examples of common business assets include cash, inventory, equipment, and vehicles, whilst liabilities may include any outstanding debts or accounts payable. Equity is calculated by subtracting liabilities from assets.

For lenders and investors, the balance sheet provides insight into the store's financial health and ability to repay debts. It can also indicate whether or not it is a good investment opportunity. 

For business owners, the balance sheet helps them manage their cash flow, track profits and losses, and plan for future growth. 

Looking at a retail store's balance sheet can provide an overall view of the health of the business, helping to ensure that short- and long-term goals are on track. It is also useful for benchmarking against similar stores in the industry. 

The projected cash flow statement

A projected cash flow statement for a retail store shows how much cash the company will generate, and how much it will consume.

It helps store owners decide how much money they will have to spend on things like new products, advertising, and other expenses. 

This information helps anticipate potential shortfalls in cash, equipment renewals, and plan new store openings.

The initial financing plan

The initial financing plan (also called a sources and uses table) is an important tool when starting a retail store.

It shows where the money needed to set up the store will come from (sources) and how it will be allocated (uses).

Having this plan helps you understand what costs are involved in setting up the retail store, so you can make sure that everything is taken care of before launching.

Having a well-constructed financial forecast is important for any retail store business plan, but it's not enough. The reader of the plan needs to understand the context of why and how you made those predictions in order to judge if they are reliable. 

That's why it's also essential to include the written part of your business plan which provides more information about your retail store. Let’s take a look at what should be included in this section.

The written part of a retail store business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services section
• The market research analysis
• The strategy section
• The operations section
• The financial plan

Let’s take a look at each section in more detail!

1. The executive summary

Writing the executive summary section of a retail store business plan requires a great deal of thought and consideration. 

The executive summary should provide a comprehensive overview that highlights the key components of the business plan, including the goals and objectives. 

The executive summary should start with a business overview explaining what the business does, what it sales and to who, and where it is located. 

Next comes the market overview, which should provide an overview of industry trends, as well as an understanding of the target customer demographics.

Key financials, such as startup costs and projected profits and cash flows should also be included in the executive summary. You should also include key financial data such as projected revenues and profitability.

Finally, state how much financing you require from investors or lenders. 

Remember that an executive summary should be concise and to the point, aiming to encourage investors or lenders to continue reading the business plan further.

2. The presentation of the company

When crafting the company presentation of a retail store business plan, it is important to address structure and ownership. 

The organizational structure of the company should be detailed to demonstrate how the store's operations will run smoothly. Additionally, any ownership details such as investors or shareholders should be cited in the plan. 

Secondly, the location of the store should be highlighted as this can greatly influence customers and profits. Ensure to include information on the neighbourhood, demographic, foot traffic and nearby attractions that could benefit your business. 

Finally, your plan should highlight key management team members who will help to drive success for the store. Summarize each individual’s experience, qualifications and professional qualities in order to show the team's ability to lead the retail store.

3. The products and services section

This is an important part of your business plan, as it outlines exactly what type of goods and services the store intends to provide.

It’s essential for you to clearly communicate how your product line meets customer needs, as this will be an influential factor in whether or not investors decide to back your venture. 

Describe each category of items being sold at the store in detail, such as brands available. Also mention what services you offer: click and collect, 30 days return, etc. . 

The reader will want to understand what makes your products unique from other businesses in this competitive market.

4. The market analysis

When writing the market analysis section for your retail store business plan, you should include detailed information about demographics and segmentation, target markets, competition, barriers at entry, and regulation.

This is important because it provides investors or banks with an understanding of the current environment surrounding the company and its potential customers.

For starters, it is important to understand who makes up your customer base by looking into demographic data such as age range and income level. 

Additionally, analyzing consumer behavior can help identify different segments that exist within this customer base so that they can be better targeted with marketing efforts. 

It is also essential to look into competitors operating in the same space to understand what strategies have been successful or unsuccessful thus far. This might be direct competitors (other retail stores in the area) or indirect competitors (online businesses).

Moreover, understanding any regulatory requirements related to entering a particular market will help ensure that all legal guidelines are met before launching operations. 

All these elements combined provide investors or banks with more confidence when deciding whether or not to invest in a certain venture. 

5. The strategy section

When writing the strategy section of your retail store business plan, it is important to consider how the business will differentiate itself from competitors, create an attractive pricing model for customers and develop a marketing plan. 

When writing the competitive edge section, you should articulate why your store offers something different in comparison to existing stores (for example, product selection or customer service). 

Furthermore, you need to determine what pricing structure makes sense for both customers and profitability. You may choose to pursue a competitive pricing strategy, cost-plus pricing strategy or other ones.

Additionally, your marketing plan should outline which channels can best be used to reach potential buyers as well as what type of messaging will resonate with them most effectively. 

Additionally, setting milestones can help track progress while identifying any areas of improvement along the way. 

Lastly, potential risks associated with the retail store must be identified and addressed with effective mitigants in order to minimize negative impact on operations and profitability.

6. The operations section

The operations section of your retail store business plan is an important part of the overall document. 

It should provide details on how the store will be managed and operated, including staffing roles and responsibilities, opening hours, key assets and intellectual property, and suppliers.

When discussing staffing, outline the roles and responsibilities of each team member and how they will contribute to the success of the store. This section should also include a recruitment plan outlining how you intend to hire new staff members when needed.

The business plan should also include information about opening hours. This includes details about when your store will be open, any changes in operating hours based on seasonality, or holiday closures.

Details about key assets and intellectual property that the business needs to operate should also be included in the operations section. You could mention any key equipment that your business needs to purchase (for e.g. a payment processing machine).

Finally, talk about the suppliers that you chose to work with and why. You might have a strong relationship with them, having worked with them in the past or be attracted by their brand image (perhaps sustainability if you operate a t-shirt business).

By providing all of the necessary details about how your store will operate, you can give potential investors and lenders an accurate picture of what they’ll be getting into when they support your business. 

7. The presentation of the financial plan

This is where you will present the financial forecast that we talked about earlier in this guide.

Now that you have a better understanding of what should be included in the content of your retail store business plan, it’s time to look at the tools that can help you create one.

You could create a retail store business plan using applications such as Excel or Word, hire a consultant or accountant to write it for you, or use online business plan software.

Let's look at the benefits and drawbacks of each solution.

Create your retail store's business plan using Word or Excel

Excel and Word were very popular tools for creating a business plan in the 1990s.

The advantage of using Excel and Word to create a business plan for a retail store is that these tools don't cost much.

However, creating a full business plan with Excel and Word is a long and tedious process which makes the solution not quite cost-effective.

If you’re using Word, you must start with a blank page and spend hours formatting the document yourself once written - something that may be too time-consuming for a busy business owner. 

Furthermore, you need to have a solid background in accounting and finance in order to create an error-free financial forecast in Excel. And it is unlikely that a bank or investor will trust your numbers unless you have a degree in finance or accounting.

Ultimately, both Excel and Word have their pros and cons when it comes to creating a retail store business plan. Consider your needs carefully before deciding which one is best for your business.

Hire a consultant to write your retail store's business plan

When it comes to creating a business plan for a retail store, outsourcing the task to a consultant or accountant is a potential solution. 

Consultants are experienced in writing business plans and can create accurate financial forecasts without errors. Accountants also have the ability to identify potential issues that could arise down the road.

The main issue with that approach is the cost: hiring a consultant will be expensive: budget at least £1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders).

Use an online business plan software for your retail store's business plan

Another alternative is to use online business plan software .

There are several advantages to using specialized software:

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can be inspired by already written business plan templates
• You can easily make your financial forecast by letting the software take care of the financial calculations for you without errors
• You get a professional document, formatted and ready to be sent to your bank
• The software will enable you to easily track your actual financial performance against your forecast and update your forecast as time goes by

If you're interested in using this type of solution, you can try our software for free by signing up here .

We hope that this guide helped you better understand how to write the business plan for a retail store. Do not hesitate to contact us if you still have questions.

Also on The Business Plan Shop

• How to write the business plan for a t-shirt company
• How to write the business plan for a vending machine company
• What is the difference between a business plan and a pitch deck?
• 5 years business plan guide
• How to create a business plan cover page?

Know someone in the retail industry? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to create a retail store business plan

By Andrea Nazarian

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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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...

What is a retail business plan and how do you write one for a retail store?

• March 18, 2024 March 19, 2024
• by Aishwarya

3. Organization and management

In your retail business plan, clearly outline your organizational and management structure. Specify whether your business is a sole proprietorship, LLC, or corporation. Introduce key team members, providing details on their roles and relevant experience in the context of your retail store. Describe the organizational hierarchy, highlighting responsibilities to give a comprehensive view of the team's functions. When writing your retail business plan, ensure this section reflects an organized and capable team, emphasizing their expertise in driving the success of your retail business.

4. Products and services

The plan should clearly describe what products and services your store will offer. Point out the special features and benefits that make your offerings stand out. Explain how these distinctive aspects cater to customer needs and preferences, setting your retail business apart from others. Additionally, share your plans for expanding your product or service lineup in the future, giving insight into the exciting developments your customers can expect.

5. Marketing and sales strategy

In your comprehensive business plan for your retail store, precisely define effective strategies to engage your target audience. Elaborate on your pricing strategy, promotional activities, and chosen distribution channels. Detail the sales process, focusing on both customer acquisition and retention. This strategic approach is fundamental to a business plan for a retail business to showcase tailored methods for attracting and retaining customers.

6. Funding request

Clearly specify the amount of funding you are seeking within your retail shop business plan. Articulate the planned allocation of funds for startup costs, working capital, and other essential expenses. Offer a transparent breakdown of your current financial situation, providing potential investors with a clear understanding of your retail business's financial needs and the anticipated return on investment.

7. Financial projections

In your retail business plan, develop detailed income statements , balance sheets, and cash flow statements . Project the financial performance of your retail store for the next three to five years. Include clear key assumptions and the basis for your projections, offering a realistic and grounded overview of your business's expected financial trajectory. Additionally, provide a sensitivity analysis to demonstrate how changes in key variables might impact your financial outlook.

8. Operations plan

Outline day-to-day operations, covering aspects such as location, facilities, equipment, and technology. Discuss your suppliers, elaborate on inventory management practices, and detail logistics processes. Specify the technology systems you will employ to enhance operational efficiency, such as point-of-sale systems and inventory tracking tools .

9. Risk analysis

Identify potential risks and challenges in your retail business plan. Develop contingency plans for risk mitigation, addressing strategies for adapting to market or industry changes. Provide a risk matrix that evaluates the likelihood and impact of each identified risk. Additionally, incorporate insurance coverage and other risk management measures to showcase a comprehensive approach to risk mitigation.

10. Review and refinement

Regularly review and update your retail business plan as your business evolves. Seek feedback from mentors, advisors, or industry experts to ensure your plan remains relevant and effective. Establish a formal review schedule and document any changes made to your plan. Consider incorporating a scenario analysis to assess the impact of different market conditions on your business, enhancing the plan's adaptability to changing circumstances.

JD enjoys teaching people how to use ZoomShift to save time spent on scheduling. He’s curious, likes learning new things everyday and playing the guitar (although it’s a work in progress).

• Feb 11, 2024

How to Create a Winning Retail Business Plan

You’re about to learn how to create a winning retail business plan. You can use this plan to either start or grow your retail business . Importantly, rather than simply learning the key sections to include in your plan, you’ll see below the strategic questions that, upon answering, can help your business soar.

Your retail business plan must include 10 sections.

1. Executive Summary 2. Company Overview 3. Industry Analysis 4. Customer Analysis 5. Competitive Analysis 6. Marketing Plan 7. Operations Plan 8. Management Team 9. Financial Plan 10. Appendix

Each section is discussed below in showing you how to create a business plan for your retail business.

Elements of a Retail Business Plan

1. executive summary.

Your Executive Summary gives a recap of your entire business plan. In addition to providing an overview of your retail business, you’ll briefly describe your customers, competitors, marketing plan, operations plan, management team and financial projections.

Importantly, winning retail business plans answer two key questions both in their executive summaries and in the other sections of the plan. These 2 questions are as follows:

Why is my retail business uniquely qualified to succeed?

There are many reasons why you could be uniquely qualified to succeed; perhaps you have the perfect location, or the best product mix, or special relationship with vendors or suppliers. Maybe you have an extremely loyal customer base. Or a management team or employees who are highly skilled and motivated.

What do I hope my retail business will look like in 5 years?

If you don’t know where you’re going, unfortunately you’ll never get there. As such, a critical strategic exercise to complete in your business plan is to set goals for your retail business in 5-years’ time.

The first question you should answer is this: what would you like your revenues to be in five years? Then, think about how your business would look if you reached that goal. For example, how many employees would you have? Would your management team be the same, or would you have added or replaced current members? How many customers would you be serving each day? Would you be operating new locations? What marketing strategies would have helped you reach your revenue goals?

2. Company Overview

Your company overview section gives background information on your company. But it can and should have strategic value to your company. Here’s how. Include your key accomplishments to-date in this section of your business plan. For example, list dates and accomplishments you’ve achieved so far such as the dates when you reached a certain level of sales, or hired your Xth employee.

Not only will documenting these accomplishments motivate you and others that read the plan, but think through the strategies you employed that allowed you to accomplish these goals. And make sure you continue to use these strategies that have worked well for you in the past. Conversely, too many companies keep trying new strategies while those they’ve already used successfully go by the wayside.

3. Industry Analysis

In the Industry Analysis section of your plan, document the size of your current market and trends that are affecting it. Ideally you can access third party research on your industry that includes this data. Typically trade associations conduct and publish such research.

Importantly, make sure your growth strategies are in line with these trends. For example, if there’s a trend towards ordering online and picking up in-store, make sure you offer this option to customers.

While you want to enjoy near-term success, you also want to realize long-term growth and success. So look at your industry’s trends and forecasts to ensure both your industry and your company are moving in the same direction.

4. Customer Analysis

Your customer analysis identifies your target customers and their wants and needs. By better understanding your customers you can a) better target them with promotions, and b) make sure you offer them the right mix of products and services.

So make sure your proposed strategies are in line with your target customers, or think through ways to reach new customer segments.

5. Competitive Analysis

The competitive analysis section of your retail business plan identifies your key competitors and their strengths and weaknesses.

Think through your competitors’ strengths and see how you can combat them. LIkewise, assess their weaknesses and see how you can exploit them. The goal of this section is to figure out if you have and/or how you can build lasting competitive advantage.

6. Marketing Plan

The marketing plan includes the “4 P’s” as follows: Product, Price, Place, Promotions.

• Product : here’s where you describe your current product/service mix and what products/services you need to add to reach your desired long-term goals.
• Price : here you’ll document your pricing strategy.
• Place : Place refers to the location of your retail business. Any store expansion plans would be discussed here.
• Promotions : Your promotions section details how you will reach new customers. There are numerous ways to do this, from pay-per-click ads to print advertising to social media marketing and customer referral programs. Document the strategies that you’re currently using, those that have worked well in the past, and those you’ll employ in the future to allow you to realize your growth goals.

7. Operations Plan

In your operations plan, you must document and detail your long-term and short-term milestones.

Start by identifying and documenting your 5-year goals in terms of sales, number of employees, customers served, store openings and/or other relevant metrics.

Then you need to work backwards. Identify the key goals you need to reach in each of the next 5 years to reach your ultimate goal. Finally, you need to get even more granular for the first year. That is, document your goals for each quarter of the coming year.

For example, if you currently have a headcount of 50 and your goal is to get to 500 employees, your goals might be to add 10 employees in the first quarter, 15 employees in the second quarter, 20 employees in the third quarter, 25 employees in the fourth quarter, 80 employees in the second year, 90 employees in the third year, 100 employees in the fourth year, and 110 employees in the fifth year.

Likewise, document your plan for employee retention , as losing key employees will hinder your ability to achieve your growth objectives.

By using this process, you can truly identify and then attain your goals.

8. Management Team

In this section of your plan you’ll document your management team.

Importantly, you need to think through whether your current management team is capable of growing your business to the desired level. Think about which management team members can grow with you. Think through whether you should invest in them to improve their skill sets. Also, figure out if you need to add or replace current members. If so, write a job description of the team members you’ll need to add and the dates you’d like to bring them on.

9. Financial Plan

The financial plan section of your business plan includes an Income Statement, Balance Sheet and Cash Flow Statement. It also lists the key assumptions you’ve used in deriving these 5-year projections.

Among other things, your financial plan will identify how much money is needed to execute on your plan. Likewise it will alert you to potential cash crunches. For example, purchasing new equipment or software might help your business grow, but it may require an investment that your bank account doesn’t currently support.

If you’re looking for outside funding to grow your business, banks and equity lenders will review your financial plan to ensure they will be repaid or get an adequate return on their investment. But even if outside funding is not required, developing your financial plan is critical.

One key benefit of your financial plan and forecasts is that they allow you to assess new opportunities. For example, you should be able to tell the cash requirements and potential returns for different strategies you might pursue. Use your forecasts to select only the best ones.

Finally, your financial projections will give you goals. They serve as a financial scorecard against which you should judge actual performance. Each month and quarter, judge your actual financial performance against your forecasts. See where you’ve succeeded and where you’ve fallen short. And if you’ve fallen short, strategize regarding what you can do differently to improve your success going forward.

10. Appendix

The appendix of your plan includes any supporting information. For example management team resumes or vendor agreements could be included if they bolster arguments stated in your plan.

Creating a business plan for your retail business puts you on the path to creating competitive advantage and enjoying long-term success. It starts with simply dreaming about what you’d like the future to look like. Then, you strategize to put plans in place to ensure that vision becomes a reality.

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The Ultimate Guide to Writing a Retail Store Business Plan

When you’re starting a retail business , the first thing to do is make sure that your plan includes details about what type of store and how it will be marketed. You need all these things if you want your biz to succeed.

What is your business plan? Who are you trying to reach with this product or service? How will they afford it and what do you need for them to buy from us instead of the competition. All these questions can help answer how we should structure our sales strategy.

In this post, you’ll learn the ins and outs of creating a plan for your retail business. We’ll discuss how having one will help boost profits and walk through the steps needed to make it.

Starting a retail business is never easy, but this post can help you find the right plan. Whether you’re just starting or looking for an investment in your existing store, we’ve got some helpful tips.

All You Need to Know About a Retail business Plan

A business plan is a document that outlines the need-to-know information about how your company will operate. It’s like a roadmap for understanding what kind of growth you’re looking to see and where it might happen.

The business plan is just a guide, but it should give people an idea of the inner workings.

Have a Strategy and Goals for Your Retail Business

Many entrepreneurs indeed start their businesses without a written plan. But if you’re going to be successful, it is vital to have a well-thought-out strategy and clearly defined goals.

It’s tempting to dive right in and start working your butt off, but sometimes you need a plan. If you are opening up an establishment with lots of moving parts like retail stores , it can be challenging without serious capital.

Don’t just think about these things in your head. Write them down. It’s important to formalize the plan and put it on paper for yourself and stakeholders.

If you are looking to start a business, it is essential that you create an initial plan Click To Tweet

. There are many benefits of having one including:

To provide clarity, you need to move ahead

If you have a business plan, it can serve as your roadmap for taking your business off the ground. However, it is overwhelming to figure out which steps need more attention and implement them.

The best way to plan a business is by writing down the steps you need to take and having an idea of how you will do them. It’s much easier than constantly feeling lost or unprepared.

To explore your business idea to see if it works.

A business plan is a necessary step in the process of starting your own company Click To Tweet

. It’s often an opportunity to explore potential issues with the idea you’re hoping will succeed.

As an entrepreneur, you want to spot problems as early as possible so that if the picture doesn’t work out, then at least it doesn’t take up too much of your time. You don’t want to invest all this effort into a business idea only for it not to turn out.

To get investors for your business idea.

It’s imperative to have a formal business plan if you’re looking for funding. Creditors and investors will want the information about your idea in writing to understand it, which then helps them decide whether or not to give you money.

Writing a Retail Business Plan

Now that you know what a retail business plan is and why it’s important, let’s talk about creating one for your company. It starts with identifying the different components of an effective business plan; these include goals, marketing strategy, financial projections.

Let’s dive in.

1. Business Overview

The executive summary is a crucial part of any business plan. It gives readers an overview and helps them understand why you started the company, your goals, etc.

One of the more critical aspects of your business plan is motivating and compensating employees . It’s essential to be aware that there are many different ways in which this can happen, but here’s a list:

Business synopsis

The name of my business is _____. I’m starting a maternity apparel boutique devoted to providing stylish clothes for pregnant women and moms-to-be.

You can start your business description with something like, “You’re looking for a company that is dedicated to making sure you have the right equipment and space. We know how important it is to make sure all of our customers are satisfied.”

Luxe Maternity is a high-end maternity clothing store that caters to affluent mothers. Luxe will sell top-of-the-line, expensive clothes for wealthy pregnant women.

We are proud to announce that we will be opening the first luxury maternity boutique in Neptune, CA. We hope this store becomes a destination for wealthy moms-to-be and capture 75% of their market share.

Your purpose for the business

It’s essential to explain the purpose of your business and what you hope it will become Click To Tweet

With Luxe Maternity, for example, their mission is ‘to provide parents with innovative yet classic pieces that are chic in design while also being comfortable.'”

It can be hard to find clothes that make you feel good about yourself as a new mom. That’s why the True Motherhood line is designed for stylish moms-to-be who want clothing that makes them look and feel beautiful.

Company goals

Continue to provide high-quality products and services -Utilize various marketing strategies, such as print ads or social media posts.

• To create a store environment that makes mothers-to-be feel comfortable, beautiful, and stylish
• To capture 75% of market share by 2020
• To gain a 50% profit margin after year 1

2. Business structure

Once you’ve covered the basics, it’s time to get into more detail about your business. This section will cover:

What is your company structure and ownership? 

If you’re the owner of a company, this is where to talk about how it works.

It would help if you also mentioned your company’s legal and business structure. Are you a sole proprietor or an LLC? It doesn’t matter, but be sure to include it in your retail plan.

What is your general location? 

While you may not have set up shop yet, it’s essential to let your audience know where you plan on opening. Luxe Maternity could mention that they plan to open in an affluent part of town.

What products are you offering? 

One of the essential parts of any business is what you sell. If your store mainly sells products, make sure that it’s evident in this section and tell people why they should buy from you.

Do you plan to make them yourself, or will you buy from a supplier?

3. Market survey

Your marketing plan should identify the types of customers you want to target and who will be able to buy your products. This must include a description of their kind of people, such as their age group or gender.

When you’re on the hunt for a new position, make sure to include these details in your resume.

What is the size of the market?

Do some research on the market size. Luxe Maternity, for instance, could look into how many pregnant women there are in Neptune every year and then use that information to figure out what kind of market they’re looking at.

Who are your competitors? 

Finding other companies in the same industry is also essential. Who are they? Where do they operate? Understanding these factors will help you make your plan.

What are the trends and forecasts in the market?

It is crucial to forecast where the market will be in 5-10 years, and for this, you’ll need to research how much your current customers are worth. It would be best to look at any notable news or movements that may affect the industry.

What is the demographic information of your target audience?

To find out about the demographics of your customers, you should have a list ready that includes: -Age group -Income level -Gender.

• Annual income
• Education level
• Where they live and work

What is the psychographic information of your target audience?

When it comes to customer motivation, you need to ask yourself what motivates them. What will make customers come back? How can I help meet their needs? If you find the answers, they are great for your business plan and good strategic decisions.

4. Marketing strategy

Now let’s talk about how you’re going to get your customers. You need a marketing plan that includes:

What is your position in the market? 

Now that I’ve looked at my competition, it’s time to make a plan. So far, the competitors are all targeting small-to-medium size businesses with their products and service offerings.

Luxe Maternity is a company that specializes in high-end maternity clothing and accessories. They have created their own positioning model, which would look something like this:

What is your competitive edge?

Be clear about your store’s unique qualities and how you plan to take on competitors.

What is your branding strategy?

It’s crucial to have a clear branding strategy and style before you even start writing your content. What is the goal of this article? Who are we targeting with our message? How should they feel when reading it, listening to it, or watching it?”

What is your pricing strategy?

What are your pricing plans? Readers of the business plan want to know how much you’ll charge and what profit margin will be acceptable.

Pricing is a significant part of your strategy. What will you be selling items for? Will they all cost the same, or does it depend on what typesizeetc.? It’s not too late to talk about this.

What are your promotional tactics?

As you get ready to start your business, readers must know how they can find out about what you’re doing. So tell them where people will see and hear from you.

What are your sales process and retail experience?

You’ve heard about how we’ll get them to your store, and now it’s time for us to tell you the steps that will convert those customers. Please tell me what sort of retail experience and sales process you have in mind.

When people walk into your store, what will they see? What will you do to get them from browsing around and looking at everything with their hands firmly in their pockets?

5. Management strategy

You should also include some information about your business. Who will you hire? What is the management structure of your company going to look like?

You should discuss:

What is your organizational structure? 

This section should include a flowchart of your company’s hierarchy. You might also want to list out the organization chart, but I’m not sure how useful that would be.

A person at the top of a company is usually answerable to someone else.

Who is your management team? 

If you have a management team already in place, this section talks about the members and their backgrounds. If not, it’s for outlining roles that will be available.

What is your staffing plan? 

If you’re looking to hire managers and associates, your business must be growing. If you need a few people or more than ten hires in the next year, we can help with recruitment strategies.

It would help if you also told them about the benefits and policies you plan to offer, as well as how many people they’ll be working with.

6. Financial projections

The most important part of your retail business plan is how you’ll make money and what it will be over a specific period. It would be best if you had this outlined.

To have a successful business, you need these three things: 1. A marketable product or service that meets the needs of your target customers and generates revenue from sales 2. A comprehensive marketing plan for promoting your products and services in an appropriate way

What are your capital and startup needs? 

This section should detail how much money you need to get started and where that money will be spent.

When I need to plan what my company will do with its capital, I create an account and list out everything we will spend it on.

It’s not essential to be exact with your numbers, but they need to make sense. You should spend some time looking at complicated things like break-even analysis and forecasts.

What is your break-even analysis?

You should perform a break-even analysis to determine when your company will start making money. It’s easy; just take into account the costs and sales projections.

Try drawing a chart if you want to make the most of this article. For example:

What are your sales forecasts?

One of the most important things to do when running a business is to estimate your profits and losses over time. How much money will you make in year one? What about years two, three, four, or five?

What are your cash flow projections? 

Creating a cash flow forecast is essential for any business, so be sure to consider how much money you’ll have coming in and going out on an ongoing basis. Figure out your projected balance at the beginning of each month. Then, use that figure with your expected sales figures to calculate exactly what kind of financial situation you’re in.

There’s a lot of work that goes into starting up your own business. You’ll have to do tons of research make plenty of calculations and projections.

When you create a well-developed retail business plan, your whole company becomes more explicit, and people will be eager to invest in it.

So get to work, start mapping out your plan for success and stop being lazy.

Now that you know how to write a retail store business plan, what are you going to do?

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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.  

How to Finish Your Retail Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your retail business plan?

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

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RETAIL EDUCATION & TRAINING SOLUTIONS

Retail Business Plan

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

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

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

Retail Business Plan Template

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

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

Check out more free downloads .

Executive Summary

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

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

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

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

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

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

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

For example

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

Company Overview

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

You can cover the following points:

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

Industry Overview

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

Cover areas such as:

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

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

Read Also: What is Retail ?

Target Market

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

You can cover the following details:

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

FOUNDATIONS OF MARKETING

• Learn the fundamentals of marketing
• See how they apply to buying, merchandising & pricing
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Competition

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

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

Cover information about:

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

You can also create a summary table like the one below

Competitive Advantage

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

This could be by:

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

Marketing Plan

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

Cover the following areas:

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

Operations Plan

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

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

Cover the following:

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

Read Also: Retail Scheduling

RETAIL OPERATIONS MANAGEMENT

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

Financial plan

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

Capital Needed

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

This will include:

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

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

Financial Projections

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

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

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

RETAIL BUDGETING & PLANNING

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

Break Even Point

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

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

Key Assumptions

Mention the assumptions you used for creating your financial projections.

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

Retail Business Plan Tips

Sales projections.

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

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

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

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

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

Inventory Projections

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

So it is important to calculate your inventory needs correctly.

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

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

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

Good luck in your new venture!

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More Resources

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

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

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

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Retail Store Business Plan

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, your financial plan would consist of the funding requirements for setting up your store, buying supplies, and hiring people. It would also consist of your projected profits and break-even analysis.

Download a sample retail store business plan

Need help writing your business plan from scratch? Here you go;  download our free retail store business plan pdf  to start.

It’s a modern business plan template specifically designed for your retail store business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Retail Store Business Plan Summary

In conclusion, a retail store business plan helps you organize and manage your store better. It takes care of everything that goes behind the scenes of running a retail store, so you can greet your customers with a smile.

From angry customers to poorly stocked supplies, a business plan can save you from all of it.

After getting started with Upmetrics , you can copy this retail store business plan template into your business plan and modify the required information and download your retail store business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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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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Starting a Business | Templates

4 Free Retail & Online Store Business Plans

Published December 13, 2019

Published Dec 13, 2019

WRITTEN BY: Blake Stockton

This article is part of a larger series on Starting a Business .

A retail business plan can help entrepreneurs analyze their business concept and explain why it will be successful. Many banks and investors like to see companies’ strategic plans before agreeing to provide funding. All business plans for retail and online stores should showcase their products and services, financial projections, and marketing strategies.

Before starting your retail or online store, it’s important to register it as a legal entity with the state in which it’s doing business. A legal business entity would protect the business owner’s personal finances if a lawsuit were to ever occur against the business. Rocket Lawyer is an online legal service that assists small business owners with the paperwork needed for legal entity registration. Register your business with Rocket Lawyer for $99 plus state fees.

Visit Rocket Lawyer

Retail Business Plan Templates

We’ve included four retail business plan templates below and separated them into different types, including one for retail product-based storefronts, retail service-based storefronts, retail companies with a storefront and an online store, and retailers that run their business completely online. To understand each section of the business plan template better, we recommend you read our step-by-step business plan guide . All of the templates below include the necessary sections to obtaining funding from a bank or investor.

We’ve included template copies that are in both Microsoft Word and Google Docs. To save the Word document, click on your desired template’s link below. Once it downloads, click “File” within the document, then “Save As” to save the template to your computer.

To save the Google Doc, click your desired template’s link below. Copy all of the words in the document, open a new Google Doc on your account, and paste in the template. The new template will automatically save to your Google Doc account.

Product-based Retail Storefront

Word / Google Doc

Retailers with Storefront And Online Business

Service-based Retail Storefront

Online Only Retail Store

How Retail Business Plan Templates Work

These retail and online business plan templates walk you through how to create a plan for your business. They all come with questions in each section and subsection to spark creative thinking and provide direction.

It’s important to note that some businesses will have information that fits into all of the template categories. For example, a bakery can sell products in person and online in addition to providing a service with educational classes to aspiring chefs. If your business happens to have diverse revenue sources like this, choose the template that applies to how the majority of your revenue is earned. For example, if the online store will only earn 1% of overall sales, you should choose the storefront-based business plan template.

Product-based Retail Storefront Template

This template is for a retail business with a storefront that primarily sells products rather than services to customers. Typically, these types of businesses have a local marketing focus. Additionally, inventory and sales staff are important topics to discuss in the business plan. Examples that fall into this business category include clothing boutiques, food businesses, and jewelry companies―essentially, any store that buys and resells items in small quantities, not in bulk like wholesalers.

Download the product retail storefront business plan in Google Doc or Microsoft Word format. PDF isn’t available, because the Table of Contents’ page titles and numbers won’t update after you add new information to the template.

Service-based Retail Storefront Business Plan Template

The service-based retail storefront template is right for anyone who primarily provides a service to its customers. This type of business has a local marketing focus. Additionally, hiring and managing quality staff are discussed in this business plan. Examples of service-based retail storefronts include massage therapist companies, nail salons, product repair, shops, and rental-based businesses.

Download the service-based retail storefront business plan in Google Doc or Microsoft Word . PDF isn’t available because the Table of Contents’ page titles and numbers won’t update when you add new information to the template.

Business Plan for Brick-and-Mortar Retailers With Online Stores

This template is for any retail business that has a storefront and is selling a product online as well. The business plan discusses ecommerce and online marketing strategy in depth. Examples of brick-and-mortar retailers with online stores include memorabilia or comic book stores in addition to shops that sell clothing, outdoor goods, and spices.

Download the retail storefront and online business plan template in Google Doc or Microsoft Word . A PDF version isn’t available, because the page titles and numbers within the Table of Contents won’t update when you add new information to the template.

Online Retailer Business Template

The online store business plan template is for retailers that primarily sell products online. The template emphasizes ecommerce, online marketing, and shipping. It’s best for niche businesses that cannot fund a storefront, such as stores that sell artisan soaps or custom items. Dropshipping businesses will also find the template useful.

Download the online retail business plan in Google Doc or Microsoft Word . A PDF version isn’t available because the Table of Content page titles and numbers won’t update when you add new information to the template.

What All Retail Business Plans Should Include

If you’ve looked at the above templates, you may have noticed that several sections are similar on all four business plans. That’s because no matter your type of business, when writing your business plan , bankers are looking for certain sections, including the Executive Summary, Company Summary, Market & Industry Analysis, Marketing Strategy, Financial Projections, and Appendix.

Executive Summary

This section is an overview of the business plan and is typically one to two pages in length. We recommend completing the executive summary last so that you know which sections are most important to emphasize and expand upon.

It’s important to make the executive summary as persuasive and compelling as possible. Interested investors often request the executive summary first to determine if they should spend time reading the rest of the plan.

Company Summary

The company summary highlights the company’s successes if already in business or why it will be a success if you have a new business. In this section, include information about what you need to purchase to start your business and how much it will cost. Additionally, briefly discuss the company’s ownership structure and its competitive advantage, which is the one big feature that gives your business an edge over competitors.

Market & Industry Analysis

In the market and industry analysis section, make your case as to why your business will be a success. Market analysis is a deep dive into research that you can use to show that there are sufficient customers who need your business. You should research the need in your local area, especially if you’re not operating online, to help prove your business can be successful. Use software like ReferenceUSA to research for free at thousands of local libraries across the United States.

For industry analysis, you need to show evidence that the industry in which you’re starting a business is growing, not shrinking. You can use a paid service like IBIS World to pull industry data. IBIS World’s industry experts update industry forecasts and data around every four months.

The marketing section is where you outline the marketing strategy for your business. The information in this section will vary depending on the type of business you own. For example, some businesses may want to showcase the quality of their interior buildout while others expand into their online marketing strategy. You may even want to discuss the high-quality materials you’ll be creating to promote the business.

Regardless of the marketing strategies you mention, we recommend including as many visual examples as possible. You may want to include one or two visual marketing materials in this section. If you have more materials to showcase or large graphics―a menu or interior rendering―place them in the Appendix ( discussed below ).

Financial Projections

The financial projections are the most important part of any business plan. Unfortunately, they are also the most difficult for business owners to create. In the financial projection section, you should predict how much revenue and expenses will flow through the business during its first three years in operation.

Calculating financial projections can be time-consuming, especially if you have a physical location because you have to research specific costs such as construction, inventory, and utilities. Software can also be a big expense. For instance, payroll tools like Gusto , accounting software like Intuit QuickBooks , cloud-based point-of-sale (POS) systems like Vend , and so on.

Additionally, it can be difficult to predict how much each product or service line will sell month-by-month over the first three years in business. Use software like Biz Miner to obtain yearly startup financials for your industry.

To organize your financial projections, you can use a free Excel workbook from the Service Corps of Retired Executives (SCORE). In the workbook, you’ll find tabs for financial statements that need to be completed, such as the Income Statement, Balance Sheet, and Profit and Loss Statement.

The appendix is optional but recommended for a business plan. This is where you will put supporting documentation for your business. Include items like marketing materials, licenses, permits, leases, purchase agreements, and illustrations.

When to Use a Template Alternative

An alternative to the more traditional retail business plan templates above is a more modern business plan called the Business Model Canvas (BMC) . The BMC is a visual business plan that can be used in a team-building exercise and completed by upper management. Additionally, you should note that if you’re pressed for time, you can complete the BMC in under an hour. The downside of the BMC is that most banks and investors won’t accept it as a business plan.

Many business owners find that creating a business plan is a daunting task. Staring at a blank screen can be intimidating. If you need an alternative to using the templates above, consider using a business plan software to walk you step-by-step through the planning process. LivePlan is an affordable and easy-to-use business plan software that provides more than 500 business plan examples from which to learn. Get started with LivePlan for only $11.66 per month.

Visit LivePlan

Bottom Line

Every retail business owner needs to go through the exercise of creating a business plan. The process helps the owner understand the strengths and potential weaknesses of their business. Use our business plan templates along with the SCORE financial projections workbook to obtain necessary funding for your retail business. You may find yourself struggling with portions of the financial projections. If so, contact an accountant for assistance or use a business plan software.

If you’re on a tight budget and need legal advice about your business, you can contact an online legal service. Rocket Lawyer provides affordable expert legal advice to business owners. Get started with a 30-minute consultation from a Rocket Lawyer attorney for $59.99.

About the Author

Find Blake On LinkedIn Twitter

Blake Stockton

Blake Stockton is a staff writer at Fit Small Business focusing on how to start brick-and-mortar and online businesses. He is a frequent guest lecturer at several undergraduate business and MBA classes at University of North Florida . Prior to joining Fit Small Business, Blake consulted with over 700 small biz owners and assisted with starting and growing their businesses.

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Small Business Trends

How to open a retail store.

Retail Store Checklist: Ensuring Success in a Booming Market – Things look good for retailers this holiday season. Nearly 190 million U.S. consumers shopped from Thanksgiving Day through Cyber Monday this year, reflecting a significant increase of 14 percent over last year’s sales numbers, as reported by the National Retail Federation .

Importantly, most of these retailers are small businesses, indicating a promising future for those aiming to carve out their share of the retail pie. However, with the caveat that 20 percent of business startups don’t survive past their first year, it’s crucial to follow a well-planned retail store checklist to navigate this competitive landscape. Taking the proper steps will make the difference between success and failure in this thriving but challenging market.

How to Open a Retail Store Checklist

Have you always imagined owning your own store? Check out our how to open a retail store checklist.

Step 1. Do Your Homework

Got a great business idea? You can have the best idea on earth but if you don’t have a market to sell to, you’re definitely starting off on the wrong foot. Find out as much as you can about your target customers including age, location, shopping behavior patterns and more. The government is a great source of information. Explore the Census Bureau data page for key numbers and research websites like Pew Research for surveys and trends. Have a retail idea for specific city, check with the city’s business and economic development office for local demographics.

Step 2. Create a Business Plan

You’ve, of course, heard stories about successful entrepreneurs whose business plans were merely scribbles on a napkin, but those tales don’t really work for most entrepreneurs hoping to make a new retail idea take off. That’s why a business plan should be the next step on your how to open a retail store checklist. A business plan not only gives you clarity about understanding about how your business will be organized, it can help you make smarter financial and management decisions.

Plus, if you need investors or bank loans, the business plan will be the first thing they ask for. A business plan is a dynamic document that should be adapted and modified throughout your business life. It basically consists of an executive summary, market analysis, financial projections, employee needs and a thorough description of the products sold in your retail store.

Step 3. The Nuts & Bolts

It might not be as exciting as planning your grand opening, but having a solid foundation is what is going to make your retail business stick around when others are closing due to poor planning. It’s important to register your business name in the state you plan to do business, file papers for incorporation (if that’s the business entity you choose), get all the necessary licenses and permits for doing business in your city and get an Employer Identification Number (EIN, or Federal Tax Identification Number) from the IRS.

A resale license allows you to buy products for resale without having to pay sales tax. Next, it’s crucial to buy business insurance for your retail store. Shoplifting and employee theft are common issues retailers face, but there is also the risk of customers getting hurt in your store. Bottom line: Make sure you’re protected. Once you’ve crossed all the practicalities off your how to open a retail store checklist, you’re prepared to meet loan officers or investors to help secure your startup financing.

Step 4. Set Up a Location

Before we get too far into location options, you need to know owning any kind of business today requires also having a website. A website will help market your brand, build your reputation and enable customers to find you. As for a physical location, look for spaces near your target market — a commercial realtor can assist you to find something within your budget and that meets your needs. To make your retail store professional and functional, you’ll need an array of equipment and fixtures , such as signage, display cases, a point-of-sale system, security and more. If you’re unsure, work with a commercial interior designer experienced in retail layout to get the right feel — and flow in your retail store.

Step 5. Sales and Marketing

Luckily, today’s numerous sales and marketing tools make getting the word out about your new retail business easier than ever. Not that your work ends there. Actually getting shoppers to visit your store takes building a buzz before you even have a grand opening. Your marketing strategy should include a hefty emphasis on social media including Yelp, Instagram, Pinterest and Facebook.

Also, reach out to your city’s business development office. Find out about any local events you can attend to talk about your business. And get involved in your community by sponsoring a charity drive or volunteering at a city event. Plan a grand opening and give away free items or a portion of sales to a local cause. As a result, you make yourself known in your community. And more local consumers will want to do business with you and become loyal customers.

Ensuring Retail Success: Customer Service and Adaptability

While the holiday season and the retail industry present exciting opportunities for aspiring entrepreneurs, ensuring the success of your retail store requires more than just following the checklist. Two crucial factors that can make a significant difference in your business’s performance are exceptional customer service and adaptability to changing market trends.

Prioritize Customer Service

Customer service can make or break a retail business. Providing exceptional customer experiences will not only keep shoppers coming back but also attract new customers through positive word-of-mouth. Train your staff to be friendly, knowledgeable, and attentive to customers’ needs. Personalized interactions and going the extra mile to address customer inquiries and concerns can leave a lasting impression and foster loyalty. Consider implementing customer loyalty programs or reward systems to incentivize repeat business. Encourage customers to leave reviews and feedback, and use the insights gained to continually improve your service and offerings.

Embrace Adaptability

The retail landscape is ever-evolving, and successful retailers must stay ahead of the curve. Embracing adaptability and being open to change will be critical to your retail store’s long-term success. Monitor industry trends, keep an eye on your competitors, and be willing to make strategic adjustments to your product mix, marketing strategies, or even store layout based on customer feedback and market demands. Additionally, the rise of e-commerce and digital shopping has transformed consumer behavior, and having a strong online presence is essential. Continuously assess your online marketing efforts and ensure that your website is user-friendly and optimized for mobile devices. Explore e-commerce options to complement your brick-and-mortar store and reach a broader audience.

Leveraging Technology and Market Channels

In the current retail environment, leveraging technology and exploring new market channels are critical for growth. Integrating CRM (Customer Relationship Management) systems can significantly enhance customer service by providing insights into customer preferences and buying patterns, enabling more personalized and targeted interactions. This technology also assists in developing effective loyalty programs and targeted marketing campaigns. Furthermore, exploring new market channels such as social media platforms, online marketplaces, and emerging e-commerce trends offers opportunities to reach a broader audience and stay competitive. By keeping abreast of technological advancements and diversifying market channels, retailers can stay relevant and agile in a rapidly evolving market.

Stay Agile in Inventory Management

Effective inventory management is key to maintaining a profitable retail business. Invest in inventory management systems that track sales trends, identify popular items, and help you optimize your stock levels. Avoid overstocking products that may not sell well and capitalize on high-demand items to maximize revenue.

Regularly review and update your product offerings to align with seasonal trends and customer preferences. Consider running promotions or clearance sales to move slow-moving inventory and make room for new merchandise.

By prioritizing customer service, embracing adaptability, and staying agile in inventory management, your retail store can thrive even in a competitive market. With the right approach and a commitment to delivering value to your customers, your retail business can become a beloved and enduring presence in the industry.

Opening a Retail Store: The Takeaways

Promising outlook for retailers.

As the holiday season approaches, the outlook for retailers is promising, with a significant increase in consumer shopping compared to the previous year. This presents a golden opportunity for aspiring entrepreneurs to enter the retail industry and claim their share of the retail pie.

The Importance of Doing It Right

However, the key to success lies in doing it right. While 20 percent of business startups do not survive past the first year, following a well-structured checklist can make a crucial difference between success and failure.

Comprehensive Retail Store Checklist

The “How to Open a Retail Store Checklist” provides a comprehensive guide for those who have always dreamed of owning their own store. From conducting market research and creating a robust business plan to handling the nuts and bolts of registration, licenses, and insurance, this checklist serves as a valuable resource to ensure a solid foundation for the business.

Emphasizing Customer Service and Adaptability

In addition to the checklist, the importance of exceptional customer service and adaptability to changing market trends is emphasized. Prioritizing customer service creates a loyal customer base and fosters positive word-of-mouth, leading to sustained success.

Importance of Staying Ahead of Trends

Embracing adaptability, staying ahead of industry trends, and maintaining a strong online presence are crucial steps for retailers to thrive in today’s ever-evolving market.

Effective Inventory Management

Effective inventory management is another vital aspect that contributes to the profitability of a retail business. Continuously assessing product offerings, capitalizing on high-demand items, and efficiently managing inventory levels ensure a successful retail venture.

By combining these factors, aspiring entrepreneurs can position their retail stores for success, even in a competitive market. With dedication to customer satisfaction, agility in adapting to industry changes, and smart inventory management, retail businesses have the potential to become beloved and enduring establishments within their communities. The future holds promise for retailers, and by following the right steps and strategies, entrepreneurs can make their mark in the retail industry and achieve

Image: Depositphotos.com

The earlier that a retail business can master the 5 Step Profit Formula, the better chance they will have at having a long term profitable business. Retail owners need to understand Lead Generation, Lead Conversion, Increasing Transactions, Increasing Pricing (yes, you read that correctly), and Maximizing Profits. Most business owners have never been taught these 5 steps and the strategies and tactics to implement them into their operation.

Teri R. Moten

Doing your homework and having a solid business plan is critical. Especially before you’re on the hook for a 12-month lease (or longer), insurance, etc.

A yearn of interest has overshadowed me to become a store owner run my own store with a great location outlook of course ideas and a finalcial stamp that puts my new idea on the map. Yaj

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More From Forbes

How To Start Writing A Business Plan That Works

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For the entrepreneur, knowing how to start writing a business plan can be as exhilarating as it is overwhelming. The business plan is a foundational document and the blueprint of your business and is critical for securing funding, setting clear goals, and communicating your vision to the world.

Let’s explore the significance of a business plan, the essential elements it should include, and strategies to forge a plan that resonates with stakeholders and steers your business toward success.

Whether you are about to launch your first business or need to revitalize an existing business strategy, a business plan provides the foundation that supports your entrepreneurial journey.

Why a Business Plan Is Needed

A business plan is not solely for the benefit of a bank manager or an investor . The business plan is a document that helps bring clarity to your vision and can guide every decision and strategy within your company.

A well written business plan forces you to put your goals and ideas into concrete, manageable steps. It cuts through the noise, ensuring you stay focused on what truly matters for your business’s growth.

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For startups looking to secure that critical initial investment, a business plan is often the first point of reference for potential backers. It’s a chance to sell your vision, show your financial acumen, and demonstrate a roadmap to profit.

Identifying potential pitfalls early is a vital aspect of proactive business ownership. A good business plan helps you prepare for the unexpected and develop strategies to mitigate risk and safeguard the longevity of your business.

Setting clear, measurable goals in your business plan provides a framework for tracking your progress. This will give you the insight needed to pivot or double down on strategies as the market dictates.

Creating Your Story

Before you start drafting sections and compiling data, step back and consider the story of your business. Your plan should be like a good book, with a clear narrative arc that compels the reader from the first sentence to the last.

Any good story is rooted in an understanding of the world it inhabits. Your business's narrative begins with a comprehensive analysis of the industry in which you operate, as well as the consumers you aim to serve.

Think about how you define your unique selling proposition (USP) . What sets your business apart from competitors? All good stories have a unique twist, and your business plan should articulate what makes your venture different from, and better than, the competition.

Introduce your team into the story. Highlight their expertise, experience, and any relevant achievements that lend credibility to the business’s ability to execute on its vision.

Writing Your Business Plan Is Just the Beginning

A business plan can span from a quick roadmap sketched on the back of a napkin to a hefty document carefully crafted to align with industry standards. Regardless of size, it should contain certain fundamental elements .

The act of writing a business plan, while pivotal, is just the first step in an ongoing process of refinement and execution.

Here’s how to make sure your business plan is a living document:

1. Regular reviews and updates

Markets shift, consumer behavior changes, and your business will grow. Your plan must evolve with these factors, which makes regular reviews and updates a must-do.

2. Be realistic

It’s essential to be both ambitious and realistic in your plan. Don’t over-inflate projections or underestimate costs. An unrealistic plan is as unattractive to investors as a lack of vision and ambition.

3. Seek professional input

Don’t be afraid to ask for help. Experienced business advisors, accountants, and mentors can provide invaluable feedback and spot issues you may have missed.

4. Start small

Your first draft doesn’t have to be perfect. Write down your initial thoughts, outline your ideas, and refine them over time. Starting with a large plan can be intimidating but working on it gradually can be a more manageable and effective approach.

The bottom line is that writing a business plan can feel overwhelming, but with the right approach and attention to detail, you can create a document that not only articulates your vision but actively works to make that vision a reality. It’s a living, breathing narrative that outlines your business’s course of action, and should be treated with care and enthusiasm.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business . She is the founder of She Means Profit, which is a podcast and blog . As a Finance Strategist for small business owners, Melissa helps successful business owners increase their profit margins so that they keep more money in their pocket and increase their net worth.

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 Reduce Shrinkage: Loss Prevention for Small Businesses

Jasmine Glasheen

6 min. read

Updated April 9, 2024

Shrinkage—or loss of inventory due to employee theft, error, shoplifting, or fraud—is an issue no small business owner can afford to ignore.

In fact, a 2018 survey from The National Retail Federation found that shrinkage accounts for 1.33 percent of retail losses every year. It might not sound like much, but all together, it accounts for a whopping 46.8 billion dollar loss across the retail industry annually. 

These statistics aren’t meant to scare you, but to shed light on an issue that’s been plaguing small business owners for decades. Here are some simple steps you can take to prevent retail inventory shrinkage from putting a dent in your business’s bottom line.

• 1. Hire carefully

There’s no getting around it—the idea of retail work doesn’t shine with the same luster it did in its glory years. Once lauded as a highly sought-after profession, retail work has become dogged by tales of long hours, rude customers, and low wages. 

Yet  with 4.6 million Americans working in retail sales , the business is not as much of a bust as some would lead us to believe. But a job market that’s on the upswing also means job-seekers can afford to be choosier, which is one of the reasons why there is high employee turnover in the retail industry. 

This alone can make it tough to find trustworthy and capable staff . It can be hard to carve out the time to do background checks and make reference calls. But the peace of mind that comes with knowing you’re entrusting your life’s work to capable workers may very well save you money on training and lost customers over time. 

While you can’t insure your employees will never catch a customer having a bad day, you can make your small business one your employees are proud to be a part of. 

Forbes reports that 70 percent of retail employees are “actively disengaged,” which is a huge problem in an industry where your floor staff’s product knowledge and enthusiasm can make or break the customer experience. 

Invest in training and make sure your employees are as passionate about your small business as you are, so they will want to stick around for the long haul–– reducing the need for short-term or part-time employees who don’t have time to familiarize themselves with your inventory.

• 2. Crack down on theft

Even if you’re sure you’ve got the right people, you still need to be on the lookout for internal theft– especially with newer workers who haven’t been on your payroll very long. American businesses lose an estimated 5 percent of their annual revenue to employee theft each year, and Forbes contributor Ivy Walker says small businesses are most at-risk.

“Small business owners often have a false sense of security about their insider threat risk,” she says, mostly because they feel they know their employees well enough to give them their full trust.

Establishing a clear no-tolerance policy (and putting it in writing for all your workers) is a solid way to gently inform new staff that employee theft is constantly on your radar.

Shoplifting and organized retail crime are also a major culprit of retail shrink due to external theft, so place security cameras in high traffic areas—like the cash register, entrance and exit, and outside of fitting rooms. 

Make them clearly visible, and alert shoppers they are being monitored with easy-to-spot signage. Even something as simple as a mirror can help thwart a would-be customer theft. It’s easy to install and provides a fairly cheap and effective way to let customers know they’re being “watched”—making them less likely to steal. 

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• 3. Rethink your store layout

An aesthetically-pleasing store layout seems like small business 101, and it’s a well-known fact that an eye-catching window display and product layout can help drum up business and keep people coming back. What you may not know, however, is that the layout of your store can play a key role in loss prevention.

A free-flow layout is ideal for if you are aiming for an upscale feel with maximum visibility to prevent shrinkage. A free-flow layout can also create open sight lines throughout your shop—drawing customers’ eyes to specialty items and displays while allowing your workers to discreetly keep an eye on their surroundings.

The placement of your checkout is also critical in preventing retail theft. Smaller, less expensive items are easy to steal and can be a costly way to lose inventory. Placing those impulse items by the counter makes them tougher to swipe.

Even the position of the cash register can deter potential thieves. A checkout near your store’s entrance can reduce theft and provide a straight line-of-sight to the door for employees.

• 4. Be proactive about fraud prevention

For better or for worse, paying with cash is quickly becoming a thing of the past. A 2018 survey by payment processor TYS found that a mere 14 percent of consumers preferred making their purchases with cash, while debit cards are actually quickly becoming the preferred method of payment for the average convenience-seeking shopper.

With more payments being processed virtually, it’s becoming easier than ever for scammers to get away with millions a year in retail theft . The idea of monitoring your customers’ every virtual move may seem daunting—especially on top of all the other duties a small business owner shoulders daily. Thankfully, there are companies that exist solely to take that burden off of your shoulders.

Since there are multiple types of retail fraud to be aware of, you should train your staff to be vigilant about fraud-prevention practices. It’s also important to encourage and incentivize them to speak up if they see something out of the ordinary. Payment Depot  argues that “empowering (your associates) to use the correct practices and recognize potential fraud can prevent fraud from the beginning and put an owner’s mind at ease knowing the staff has been trained well.”

• 5. Avoid costly administrative errors

Let’s face it: Human error is pretty much unavoidable. Since the vast majority of retailers have transitioned from paper to digital record-keeping, something as simple as a typo or a misplaced decimal point can lead to a costly mistake.

Clerical and stock-keeping errors are a common culprit of retail shrinkage. Thankfully, it’s also one of the easiest to avoid. Pairing a solid personal inventory management system with a trusted point-of-sale system is a good way to combat shrink and stock-mismanagement by catching any inconsistencies before they wreak havoc on your business’s budget.

>No matter what type of business you’re in, integrating a POS system will help make life easier for you and for your employees by catching inventory errors and data inconsistencies that would have otherwise gone unnoticed until it was too late.

• Bringing it all together

No amount of shrinkage is a good goal, and in an ideal world, the loss prevention steps above would lead to a zero percent loss for all businesses across the board. The National Retail Federation found signs in its 2018 annual survey that shrinkage rates are slowly declining–– proving that retail loss prevention tactics like stricter employee screenings and better attention to detail in payment processing and returns are starting to show returns. 

While it’s true that criminals are becoming increasingly savvy and digital discrepancies can make you more susceptible to inconsistent data and fraud, a virtually shrink-free business could very well be in your future, provided that you hire carefully and use the right tools.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Jasmine Glasheen is recognized as a leading influencer, writer, editor, and brand representative providing both online and video content. She is a frequent contributor to many publications including prominent retail magazines and news sites, tech blogs, and numerous fashion and lifestyle trade shows. She is a contributing editor to RetailWire, content lead at Retail Minded, and is the author of numerous ebooks and whitepapers for private clients. Glasheen also provides fresh thought leadership in the form of live video content, webinars, and podcasts.

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UK pharma companies told to make fewer drugs in draft net zero guidelines

Suggestion among an array of green proposals British companies urged to consider

Pharmaceuticals companies were told to make fewer drugs for the sake of the environment, in new draft guidelines for businesses in the latest net zero drive .

The suggestion was among a vast array of proposals which Britain’s biggest businesses have been told to consider as they are ordered to publish lengthy reports every year to show how they plan to meet their net zero targets.

The Transition Plan Taskforce said that it had removed this recommendation before the guidelines were published, following questions from The Telegraph.

The draft guidance said pharma companies should “reduce the overall quantity of products manufactured and purchased” as part of efforts to explore “sustainable alternatives” to drugs with high emissions. 

Britain’s pharmaceutical industry employs 66,000 people, with a turnover of £40.8bn and exports of £26.1bn, according to the Association of the British Pharmaceutical Industry (ABPI).

Other recommendations in the report, which have not been redacted, include advice to clothing companies to reduce the amount of cotton used in t-shirts or replace traditional textiles with lab-grown fabrics.

The guidance was published by the Transition Plan Taskforce (TPT), which was established by HM Treasury and set up following the COP26 environmental conference in Glasgow.

The TPT’s aim is to provide investors with comparable reports on every company’s plans so they can decide where they want to put their money.

Ben Caldecott, co-head of the Transition Plan Taskforce’s secretariat, said: “In contrast with excluding companies from the capital markets just because they generate carbon pollution, it is the opposite - it is saying these are exactly the companies that need capital so they can become more sustainable and successful businesses.

“If we starve them of capital, that is not going to serve anyone’s objectives. It will just create a market opportunity for large polluting companies in China, and what is the point of that?”

He said pressure to divest from polluting companies will not be enough to cut emissions, when instead those businesses with high emissions need more cash to clean up their act.

Mr Caldecott added: “We need to provide the capital, the financial services, so they can change and adapt.

“Most of the change we need to see is going to come from those companies, not just from building lots of wind farms, which is very important but no number of wind farms will get us to net zero.”

Other suggestions by the TPT included recommending engineering companies to publish the number of fossil fuel projects on their order books compared with the number of renewable energy schemes they are working on.

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