Introduction and brief description of the venture
Introduction
This business plan delineates a propositioned venture to undertake the expansion of Buster’s from a one-store business operation to a two-store business operation.
Description of the business
Buster’s is a small retailing business situated in the lobby of a large office building that involves the selling of mixed bag items. The products offered by the business includes items necessitated by occupants of the large office building, comprising of snacks, greeting cards, pre-wrapped sandwiches, canned beverages, newspapers, paperback books in addition to small gift items. The store occupies 1,000 square feet of space and its operations run from Monday to Saturday specifically targeting all of the individual walking through the lobby of the office building. At the present moment, Buster’s are the sole retail store providing product items necessitated by individuals on an everyday basis during business hours.
Business Aspirations
The key aspiration of Buster’s is to expand its business operations and have two functioning stores. A new office building is expected to be opening approximately two blocks away from the building presently occupied by the business. Buster’s aspires to expand its business operations to that building. What is more, the long-term objective of the business is to establish a chain of similar retail stores in major buildings situated downtown.
Organization of the business and key Players
Owner
The business has been started and supervised by the owner of the company who has worked as a sole proprietor. The owner has hired two individuals who aid in the everyday undertaking of the business operation.
Company Structure
The capital structure delineates the manner in which a business finances its general operations as well as growth and expansion by utilizing different sources of funds. At the present moment, the business has been fully financed using the personal finances of the owner. In the expansion of the business, the approach taken for financing such growth will be by having funds from friends and family, who will eventually assume an equity role in the business as investors. In total, the friends are family will invest $175,000, which will be converted into 30 percent equity stake of Buster’s.
Management Team
Presently, Buster’s operations are managed by the owner, who supervises the undertakings of the two employees. However, the long-term objective of the business is to expand its business operations into several stores that become a franchise. Taking this into consideration, it is suggested that every retail store will have a store manager who will be liable for facilitating the day to day operations, setting financial projections for the store, obtaining competitive contracts with suppliers and guaranteeing continued profitability of the business.
Employees
Presently, the store has two employees, each of whom spends 30 hours on a weekly basis at the retail store. By expanding and opening a second retail store on the new office building, it is expected that there will be an additional two employees hired for the new store. However, based on the business aspirations of Buster’s and the business projections, it is expected that each store will hire an additional employee to deal with the significantly high demand from the consumers. This is especially during rush hours such as in the morning when several individuals want beverages and newspapers as well as lunch hours to satisfy the high demand of consumers that wish to grab pre-wrapped sandwiches, beverages and other snacks.
Contractors
Financials
Operating Costs
The following are the anticipated expenses of operating the business in a typical month, which amount to the anticipated operating costs of the new business.
Expense $
Payroll 6,000
Marketing / promotion 500
Depreciation 0
Rent 2,200
Utilities 1,000
Other expenses 50
Total monthly expenses 9,750
Investment requirements
The initial funding from investors will make it possible for Buster’s to expand its business operations to a second store and purchase initial inventory. With extensive marketing and outreach to consumers who work within the building and also the individuals that go through the building, we expect to surpass the break-even point at the outset of the second year of this business plan. Buster’s plans to maintain costs to a minimum in that three full-time employees will be charged with running the shop and overseeing the operations.
START-UP FUNDING
Start-up Expenses to Fund
$75,000
Start-up Assets to Fund
$100,000
TOTAL FUNDING REQUIRED
$175,000
Revenue
The key pointers of financial accomplishment are all positive in our plan: increasing revenue, increasing control over cost of sales, and increasing profit margins
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year Total
Revenue Beverages
14,000
14,500
15,600
17,900
62,000
References
Dogra, B. (2010). Rural marketing. Tata McGraw-Hill Education.
Fields, R. (2018). Legal Issues to Consider When Starting Your Business. All Law. Retrieved 9 September, 2018 from: http://www.alllaw.com/articles/legal/article15.asp
Kim, W. C., & Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press.
Kitanneh, F. (2016). 6 Growth Challenges Your Business Will Face (And How to Overcome Them). Inc. Retrieved 9 September, 2018 from: https://www.inc.com/firas-kittaneh/6-growth-challenges-your-business-will-face-and-how-to-overcome-them.html
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