Are you about starting a grocery store? If YES, here is a complete sample grocery store business plan template & feasibility study you can use for FREE. A grocery store is a retail outlet where different food and household products are sold on shelves and cabinets. People love to do their shopping in a grocery store because of the convenience it gives them to shop for everything they need in a grocery store without moving from one store to another.
Starting a grocery store is a very easy business and it is not so capital intensive. Getting the right products that people want to buy and good stock keeping records are the secrets of running a grocery store. A grocery store can be run offline in the conventional retail store or online on an online e-commerce retail site.
You can also venture into mini-grocery sales. When people are looking for specialty foods or ingredients that can’t be found at the corner store or neighborhood Supermarket, they typically head to small grocers, also called mini-grocery stores.
Such retail establishments sell food and items that are uncommon and not carried by bigger stores. Opening a mini-grocery can be a lucrative business venture, especially if you live in a city with little competition. There are several things you can do to help your mini-grocery store succeed.
The information contained in this article can be beneficial to those individuals currently in the grocery business, those who are considering starting or investing in a grocery, or a community wishing to attract or retain a grocery store.
A Sample Mini Grocery Store Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Grocery stores, including supermarkets, account for the largest share of food store sales in the US. In 2013, grocery stores accounted for 90% of the country’s food and beverage store sales, while supermarkets accounted for 95% of the total grocery store sales.
The food retail industry is a high-volume, low-margin business, with cutthroat competition from all quarters. It includes grocery stores and supermarkets, as well as convenience stores. The staples offered at these stores make the industry non-cyclical.
In addition, grocery stores and supermarkets offer an alternative to restaurants during tough economic times, as buying groceries for home cooking is one alternative. Buying prepared foods, which are new higher-margin offerings at grocery stores, is an additional alternative to restaurants.
However, offering new higher-margin items such as gourmet foods, prepared foods, and general merchandise is making this industry more cyclical than in the past, creating pressures on revenue during the recent economic downturn.
Small chains and independent grocers still dominate this industry, but national chains, such as Kroger, are increasingly growing in dominance. Mass merchants, such as Wal-Mart, are competing with grocery stores at their “supercenters” by offering lower prices through lower cost structures.
Wal-Mart is now the world’s No. 1 seller of groceries. Warehouse clubs, such as Costco and SAM’S CLUB (owned by Wal-Mart), can also compete on price by selling in large bulk. Supermarkets have responded to these threats by building larger “superstores.”
Conventional supermarkets are grocery stores with over $2 million in revenue, with average square feet of 15,000. Grocery stores that have less than $2 million in annual revenue sell almost entirely packaged and perishable goods, and are mostly independently owned. Superstores are supermarkets with about 30,000 square feet, averaging $12 million in revenue.
They often have an extended selection of food and nonfood items, with specialty departments such as florists, delis, bakeries, banking, pharmacy, and video rentals. Combination stores are hybrids of superstores and drugstores under one roof, with an average of 55,000 square feet.
The supermarket and grocery stores industry is a major sector of the economy of the united states which generates a whooping sum of well over 2 billion annually from more than 42,539 outlets scattered all around the United States of America.
The industry is responsible for the employment of well over 2,624,650people. Experts project the supermarket and grocery industry to grow at a 1.4 percent annual rate. The establishment in this industry that has a dominant market share in the United States are; Albertson, Kroger and Publix Super Markets Inc.
It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption of which the supermarket and grocery stores industry contributes greatly. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.
In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / grocery stores industry negatively which may result in the closure of some supermarket / grocery stores.
In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located.
It is interesting to note that more supermarket / grocery shops especially lager retail outlets have started to include self-serve checkout lanes in their stores. It creates shorter lines that appeal to consumers; the average customer would not want to stay longer on queue.
Over and above, the supermarket and grocery store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.
2. Executive Summary
Peak Lane Grocery Store, Inc. is a standard and registered grocery store business that will be located in one of the busiest streets in Orlando, Florida. We have been able to lease a facility that is big enough (a 15 thousand square foot facility) to fit into the design of the kind of grocery store that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Orlando, Florida.
Peak Lane Grocery Store, Inc. will retail a wide range of durable goods and non – durable goods at affordable prices from different brands. We will engage in retailing general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products et al.
We are aware that there are several large and small chains of supermarket / grocery store outlets all around Orlando, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, and our outlet is well secured with the various payment options.
Much more than selling the goods and products of top brands in the manufacturing and food industry, our customer care is second to none in the whole of Orlando, Florida. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our grocery store and also to become our loyal customers and ambassadors.
Peak Lane Grocery Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our grocery store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions.
We are aware of the trend in the retail / supermarket and grocery store industry and we are not only going to operate a system where our customers would have to come to our store to make purchase or whatever they want but we will also operate an online store and our customers can order grocery online and they will get it delivered to their houses or any location they want us to deliver the goods to within Orlando.
Peak Lane Grocery Store, Inc. is a family business that is owned by Bernie Vandross and Family. Bernie Vandross has a B.Sc. in Business Administration, with well over 15 years of experience in the retailing / supermarket and grocery store industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Orlando – Florida, but there is a plan to open other outlets all around Florida.
3. Our Products and Services
Peak Lane Grocery Store, Inc. is in the supermarket and grocery store industry and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.
We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. Our product offerings are listed below;
- Fruit and vegetables
- Fresh and frozen meat
- Dairy products
- Beverages (including alcohol)
- Frozen foods
- Other food items
- Other non-food items
- Drugs and health products
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the supermarket and grocery store industry in Florida and to establish a one stop grocery store in Orlando and in other cities in Florida.
- Our mission is to establish a grocery store business that will make available a wide range of goods and products from top manufacturing / production brands at affordable prices to the residents of Orlando, Florida and other cities in Florida where we intend opening of chains of grocery stores.
Peak Lane Grocery Store, Inc. do not intend to start a grocery store business like the usual mom and pop business around the street corner; our intention of starting a grocery store business is to build a standard and one stop grocery store outlet in Orlando, Florida.
Although our grocery store business might not be as big as Albertson, Kroger or Publix Super Markets Inc., but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Store Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
- Accountants / Cashiers
- Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
- Responsible for managing the daily activities in the store
- Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
- Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Controls goods distribution and supply inventory
- Supervises the workforce in the grocery sales floor.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure consistent quality of goods and products on our rack
- Responsible for the purchase of goods and products for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Manages the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
- Responsible for cleaning the store facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the store facility
- Handles any other duty as assigned by the store manager.
6. SWOT Analysis
Our intention of starting just one outlet of our grocery store in Orlando, Florida is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over Florida.
We are quite aware that there are several supermarket and grocery stores all over Orlando and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Peak Lane Grocery Store, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Peak Lane Grocery Store, Inc.;
Our location, the business model we will be operating on (physical store and online store), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for Peak Lane Grocery Store, Inc.
A major weakness that may count against us is the fact that we are a new grocery store outlet and we don’t have the financial capacity to compete with multi – billion dollars supermarket and grocery store outlets like Albertson, Kroger, Publix Super Markets Inc. and co when it comes to retailing at a rock bottom prices for all their goods.
The fact that we are going to be operating our grocery store in one of the busiest streets in Orlando, Florida provides us with unlimited opportunities to sell our groceries to a large number of people. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our grocery outlets; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new supermarket, grocery store or retail outlet in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
Supermarket and grocery store business has been in existence for as long as human started trading goods, but one thing is certain, the supermarket and grocery store industry is still evolving. The introduction of technology and subsequently online grocery cum retail store has indeed helped in reshaping the industry.
It is now a common phenomenon for supermarkets and grocery outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiency. No doubt data collected from customers goes a long way to help supermarkets and grocery stores serve them better.
Another common trend in the supermarket and grocery store industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for supermarket and grocery stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable in elsewhere.
For example, it is common to see items with prices in this format; $3.99, $99.99 and $199.99 et al as against $4, $100 and $200. Supermarkets and grocery stores also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.
8. Our Target Market
Perhaps the supermarket and grocery store industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a supermarket or grocery store. It is difficult to find people around who don’t patronize supermarket and grocery stores.
In view of that, we have positioned our grocery store to service the residence of Orlando, Florida and every other location our grocery stores will be located all over Florida. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of groceries to the following groups of people;
- Bachelors and Spinsters
- Corporate Executives
- Business People
- About to wed couples
- Expectant Mothers
- Sports Men and Women
A close study of the supermarket and grocery store industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading supermarkets and grocery stores in Orlando, Florida.
Peak Lane Grocery Store, Inc. is launching a standard grocery store that will indeed become the preferred choice of residence of Orlando, Florida. Our grocery store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Orlando, Florida. We have enough parking space that can accommodate well over 100 cars per time.
One thing is certain; we will ensure that we have a wide range of products available in our store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goals is to make Peak Lane Grocery Store, Inc. a one stop shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups supermarkets and grocery stores) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Peak Lane Grocery Store, Inc. is in business to retail a wide range of groceries to the residence of Orlando, Florida. We are in the supermarket and grocery industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be the retailing of a wide range of durable goods and non – durable goods at affordable prices. We will retail groceries such as;
- Fruit and vegetables
- Fresh and frozen meat
- Dairy products
- Beverages (including alcohol)
- Frozen foods
- Other food items
- Other non-food items
- Drugs and health products
10. Sales Forecast
One thing is certain when it comes to supermarkets and grocery stores, if your store is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Orlando, Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the supermarket and grocery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Orlando, Florida.
Below is the sales projection for Peak Lane Grocery Store, Inc., it is based on the location of our business and other factors as it relates to supermarkets and grocery stores start – ups in the United States;
- First Fiscal Year-: $50,000
- Second Fiscal Year-: $150,000
- Third Fiscal Year-: $450,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Peak Lane Grocery Store, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Orlando, Florida. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the supermarket and grocery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Orlando.
In other to continue to be in business and grow, we must continue to sell the groceries that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Peak Lane Grocery Store, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our grocery store in a grand style with a party for all.
- Introduce our grocery store by sending introductory letters alongside our brochure to organizations, households and key stake holders in Orlando, Florida
- Ensure that we have a wide range of groceries from different brand at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our grocery store
- Position our signage / flexi banners at strategic places around Orlando
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our bar.
11. Publicity and Advertising Strategy
Despite the fact that our grocery store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our grocery store. Peak Lane Grocery Store, Inc. has a long term plan of opening outlets in various locations all around Florida which is why we will deliberately build our brand to be well accepted in Orlando before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Peak Lane Grocery Store, Inc.;
- Place adverts on community based newspapers, radio stations and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Orlando, Florida
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Peak Lane Grocery Store, Inc. and the products we sell
- Advertise our grocery store business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Pricing is one of the key factors that gives leverage to supermarkets and grocery stores, it is normal for consumers to go to places (retail outlets) where they can groceries at cheaper price which is why big player in the supermarket and grocery industry like Albertson, Kroger and Publix Super Markets Inc. will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.
We know we don’t have the capacity to compete with Albertson, Kroger and Publix Super Markets Inc., but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst supermarkets and grocery stores within our level.
- Payment Options
At Peak Lane Grocery Store, Inc., Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
- Payment with check from loyal customers
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a grocery store business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital;
- The Total Fee for Registering the Business in Orlando, Florida – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software)
- Marketing promotion expenses for the grand opening of Peak Lane Grocery Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of Grocery Store Business Plan
- Cost for hiring Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600
- Cost for Shop remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for Start-up inventory (stocking with a wide range of groceries) – $100,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for serving area equipment (plates, glasses, flatware) – $3,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase and installation of CCTVs: $10,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The cost for our opening party: $7,000
- Miscellaneous: $10,000
We would need an estimate of $500,000 to successfully set up our grocery store in Orlando, Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funding / Startup Capital for Peak Lane Grocery Store, Inc.
Peak Lane Grocery Store, Inc. is a private business that is solely owned and financed by Bernie Vandross and family. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.
Peak Lane Grocery Store, Inc. will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more.
We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We have the plans of
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the shop: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Compilation of our list of products that will be available in our store: Completed
- Establishing business relationship with vendors – suppliers of groceries: In Progress
Frequently Asked Questions
What Are The Pros And Cons Of A Starting A Grocery Store?
The Pros of Starting a Grocery Store
- You will have control of your time
- You will earn additional income
- You will meet with different people
- You will not lack groceries in your home
The Cons of starting a Grocery Store
- You are subjected to suppliers of groceries
- You don’t have control of the quality of the groceries you retail
2. What Do You Need To Start A Supermarket Or Grocery Store?
- Retail and Supply Chain Software
- POS machines
- Shopping Baskets
- Delivery Vans
- Retail Seller Permit.
- Business Operation License.
- Doing Business as (DBA) License.
- Federal Employer Identification Number (EIN)
- Store facility
- Certificate of Occupancy.
3. What Are The Factors To Consider Before Starting A Grocery Store?
- The location of the grocery store
- The types and brands of groceries to retail
- The demographic composition of the location
- The types of licenses and permits needed to launch the business
- The types of insurance and tax you are expected to pay
- Access to grocery suppliers
- Accessibility to labor
- The type of store facility needed
4. What Are The Costs Involved In Opening A Grocery Store?
- The cost of renting or leasing a store facility
- The cost of securing licenses and permits
- The cost for the purchase of Retail and Supply Chain Software
- The cost for the purchase of POS machines
- The cost for the purchase of Shopping Baskets
- The cost for the purchase of Delivery Vans
- The cost for stocking your store with a wide range of groceries
- The cost for hiring and paying of your employees.
5. What Are Some Things To Consider Before Starting A Small Grocery Store?
- The profitability of the business
- How you can access wholesale and cheaper groceries
- The competitions you are likely going to face
- The accessibility of the store facility
- The amount needed to rent a small store facility
- The amount needed to secure the required licenses and permits
6. What Are The Ongoing Expenses For A Grocery Store?
- Utility bills
- Salaries of employees
- Tax and insurance
- Licenses and permits renewal fees
7. What Happens During A Typical Day At A Grocery Store?
- The store is swept and cleaned
- Stocks are taken and empty shelves are filled with groceries from the warehouse
- The POS machines and receipt issuing machines are properly positioned
- The store is opened to welcome customers
- After the day’s job the store is closed from attending to customers
- Stocks are taking for the day
- Accounts are balanced
- The workers close for the day
8. How Can You Start Your Grocery Business And Make It Big?
- Get the required training and experience
- Choose a name and register the business
- Draft a detailed Business Plan and market strategy
- Secure the needed licenses and permits
- Apply for an EIN (Employer Identification Number) / Federal Tax ID Number.
- Open a corporate bank account
- Lease, construct and equip a store facility
- Hire employees
- Promote and Market your business (offer regular discounts and freebies)
9. What Are Some Insider Tips For Jump Starting A Grocery Store?
- Position your grocery store along a busy route; a location with the right demography
- Stock your store with fast moving grocery brands
- Make sure your shelves are always filled up with groceries
- Distribute handbills and fliers in and around the location where you have your grocery store
10. How Profitable Is Owning And Operating A Grocery Store?
It is not as profitable as people think. As a matter of fact, grocery stores operate on slim profit margins. In 2017, the average net profit for grocery stores was 2.2 percent. That means for every dollar in sales, grocery stores made 2.2 cents in profit. (Profit margins for specialty grocers, like natural food stores, can be slightly higher.)
11. What Would Be A Best Place To Open A Grocery Shop Or Any Store Like A Supermarket?
- In a community with the right demographic composition (young and growing families)
- A location where there are people with the needed purchasing power
- A location that is prone to both human and vehicular traffic
- A location where you can easily access wholesale suppliers of groceries
- A location that is secure and with good road network
12. What Is The Typical Profit Margin Of A Grocery Store?
In 2017, the average net profit for grocery stores was 2.2 percent. That means for every dollar in sales, grocery stores made 2.2 cents in profit. (Profit margins for specialty grocers, like natural food stores, can be slightly higher.)
13. Things To Keep In Mind Before You Start An Online Grocery Store?
- Secured payment platforms
- Shipping (delivery) options
- Terms and conditions of shopping in your online store
- User’s friendly online store (ecommerce website)
- Locations of your warehouse and pick up points
- Reliable groceries supplier’s network
14. What Are The Features Of An Online Grocery Marketplace Website?
- Cart sharing
- Product return
- Multiple payment options
- Reviews and ratings
- Referrals and rewards
- Easy registration
- Delivery scheduler
- Quick reorder or repeat order.
15. What Are The Challenges In The Online Grocery Business?
- Low-Profit Margins
- Disorganized and Inefficient Delivery System
- Skyrocketing Storage Cost
- Impulsive Ordering Behavior of Customers.
16. How Much Can Your Business Earn Per Grocery Order Placed?
The amount earned per grocery order depends on the type of grocery sold but basically, most businesses charge a fee based on the total order size – It is typically 10% to 15%. So, for a grocery order of $150, it can be roughly $15-$20. If you are getting 100 orders a day, you can make $1500 to $2000 per day in revenue.
17. How Does An Online Grocery Marketplace Business Makes Money?
Online grocery stores make money from Commission on Each Transaction: Admin can charge a commission on every transaction from the seller. Vendor Subscription: A vendor has to pay a fixed amount of money to admin in order to list, access, and sell on grocery marketplace
18. How Do You Start A Small Online Grocery Store?
- Secure the needed license and permits
- Rent a store facility
- Build your shelves
- Source for groceries supplies
- Distribute fliers and handbills to inform the community about your new grocery store and also give direction to the store.
- Open your store for business
19. What Are Some Skills And Experiences That Will Help You Build A Successful Grocery Store?
- Good accounting and book keeping skills
- Good bargaining skill
- Good customer service skill
- Good marketing and sales skills
- Ability to pay attention to details
20. What Is The Profit Margin In A Grocery Store In India?
The profit margin for the grocery stores in India ranges from 2% to 20%. The grocery is a lucrative market in India, many foreign and local brands compete for the market.
21. How Do You Forecast If Your Convenience Store Will Be Successful?
- You should check the performance of convenience stores in the location you intend opening yours
- You should check the purchasing power of the people that reside in the location you intend opening your convenience store
- The demographic composition of the location you intend opening your convenience store
- All available statistics of businesses in the location you intend opening your convenience store
22. Why Starting A Grocery Shopping Business Can Bring Good Money In Your Pockets?
Because humans can’t do without eating, hence they would rather buy groceries than buy luxury goodies.
23. What Do You Need To Start A Floral Business At Home?
- Working and storage space
- Sharp and of good quality.
- A table. You have to have something to design on
- Wire cutters
- A knife
- A few buckets
- Water to fill buckets and vases
24. How Much Does It Cost To Start An Online Grocery Delivery Business?
It depends on your needs. Building a custom app with all the features you have in mind can cost anywhere from $20k to $40k. A ready-made app with built-in features and functionalities can cost around $10k.
25. How Much Does It Cost In Total To Open A Supermarket?
Opening a supermarket could demand an investment from anywhere between $5,000 to over a hundred thousand dollars and it is dependent on the size of the store. These funds will be needed for various actions that start with registration and spreads over a wide variety of needs including the hiring employees and store design.
26. How Do Grocery Stores Make Money And Turn Massive Profit?
Grocery stores typically have a very low profit margin (some as low as 1-2%). So they make their money in volume by selling large quantities. They also try to minimize shrink (theft and spoiled products) and keep labor costs as low as possible, often by hiring more part-time employees (who get fewer benefits).
27. How Do You Get Money From The Government To Start A Business?
- Trade Lines
- SBA Microloans
- 7(a) Loans
28. Can You Earn Via Monthly Subscriptions On A Grocery Delivery Marketplace?
Yes, you can earn monthly subscriptions on a grocery delivery marketplace.
29. Why Is A Customer Omnichannel Experience Important?
Omnichannel experience is important because Omnichannel gives your customers a fully integrated, unified buying and customer support experience across all channels and devices. The goals of omnichannels are: – To be everywhere your target audience is. – To capture as much customer data as possible and merge it into one central location.
The major benefit that comes from offering customers an omnichannel experience is the fact that it empowers users to personalize their own experience. The customer has the control to access the products, services, and support options on demand.
- Can a Parent Rent Hotel Room for Unaccompanied Minor in 2021? - May 22, 2021
- How Do Hotels Prevent Bed Bug Infestation? [10 Smart Tips] - May 22, 2021
- How Do Hotels Know You Smoked in the Room? - May 19, 2021