Business Plan for General Store

This Business Plan for a General Store allows entrepreneurs or business owners to create a comprehensive and professional business plan. This template form allows a business to outline the company's objectives and detail both current company information as well as any past performance. Companies should include a complete market analysis in their plan to help showcase why their business strategy will be effective in the market. Future company plans, including production targets, management strategy, and financial forecasting, should be used to demonstrate and confirm that the company's short-term and long-term objective can and will be met. This model plan can be customized to best fit the unique needs of any entrepreneur or owner that is seeking to create a strong business plan.

Table of Contents

1.0 Executive Summary ............................................................................................................................ 1 1.1 Objectives ........................................................................................................................................ 2 1.2 Mission .............................................................................................................................................. 2 1.3 Keys to Success ............................................................................................................................... 2

2.0 Company Summary ............................................................................................................................. 3 2.1 Company Ownership ....................................................................................................................... 3 2.2 Compa ............................... 3

Table: P ............................... 4 3.0 Products ............................... 5 4.0 Market A ............................... 5

4.1 Market ............................... 6 Table: M ............................... 7

4.2 Target ............................... 7 4.3 Indust ............................... 8

4.3.1 Co ............................... 9 5.0 Strategy ............................... 9

5.1 SWOT ............................... 9 5.1.1 St ............................. 10 5.1.2 W ............................. 10 5.1.3 Op ............................. 10 5.1.4 Th ............................. 10

5.2 Compe ............................. 10 5.3 Market ............................. 10 5.4 Sales S ............................. 11

5.4.1 Sa ............................. 11 Table ............................. 12

5.5 Milesto ............................. 13 Table: M ............................. 14

6.0 Managem ............................. 15 6.1 Person ............................. 15

Table: P ............................. 15 7.0 Financial ............................. 15

7.1 Import ............................. 15 7.2 Break- ............................. 16

Table: B ............................. 16 7.3 Project ............................. 16

Table: P ............................. 17 7.4 Project ............................. 19

Table: C ............................. 20 7.5 Project ............................. 21

Table: Balance Sheet ....................................................................................................................... 21 7.6 Business Ratios .............................................................................................................................. 22

Table: Ratios .................................................................................................................................... 22

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COMPANY NAME

Table: Past Performance

Past Performance 2007 2008 2009 Sales $1,056,056 $916,198 $846,464 Gross Margin $222,074 $144,824 $284,694 Gross Margin % 21.03% 15.81% 33.63% Operating Inventory

Balance S

Current A Cash Inventory Other Cur Total Cur

Long-term Long-term Accumula Total Lon

Total Ass

Current L Accounts Current B Other Cur (interest

Total Cur

Long-term Total Liab

Paid-in C Retained Earnings Total Cap

Total Cap Liabilities

Other Inp Payment

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COMPANY NAME

monthly count of 7,450 (89,400 annual count) with a peak monthly count during the summer months of 10,800. These counts are slightly below the peak statistics from 2005, and are expected to increase as the travel and tourism industry slowly improves and the valley population continues to increase. This market group is highly seasonal in nature with the peak tourist and travel season being the warmer months from April through October. Military personnel come to Antelope Valley three to four times per year to train at the US Mountain Warfare Training Center. The influx of military personnel to the Valley totals

4.1 Market S

Local Res in Antelope Valley. They rang nger. Their average household livelihoods consist mostly of owners. In general, they enjo are primarily fond of the relax segment visits the store re e Valley's primary thoroughf le products for their year roun

Visitors -

1. Touris to enjoy its majestic scene yment and outdoor activit ater activities on the many ore primarily during the w ually increase as the econo income since their reason

2. Trave from the Carson City/R ernardino/San Diego area t ature at destinations to the nomy becomes more robus ore for refueling and impul

3. Militar Valley three to four times emain consistent at about visiting the store most

The Mark

1. All 2. An uals one-third of the

total annual traffic count

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COMPANY NAME

residents. Ownership and management, which is stable and experienced, has identified the store's needs and is making every effort to improve the store's uniqueness by providing additional product offerings that will benefit both local shoppers and visitors.

5.1.1 Strengths

• Store location • Stable • Open • Profit • Progr etitors • Comm • Busin • Good y

5.1.2 Weakn

• Sales • Nothin • Store

5.1.3 Opport

• Growi • Trave • Desire • Comp erings

5.1.4 Threats

• Outra es • Prolon urism • Decisi winter hours • Difficu e zoning or signage

restric

5.2 Competit

• Favor mpetitors • Open • Progr ot offer • Owne f the store and the

comm • Strong

5.3 Marketing Strategy

Our marketing strategy will focus on three segments. Those three segments are described in the following subtopics.

• The marketing budget will be increased

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COMPANY NAME

• We will focus our marketing efforts on retaining our loyal local resident customer base and increasing our attraction to area visitors

• Marketing promotions will be consistent with the Mission Statement

5.4 Sales Strategy

The sales strategy for the store is:

Advertisin with new offerings before th s of expansion plans and/or m tely upon product availabilit e word about the expansion

Advertisin highway signs (as zoning pe mber of Commerce, and by re

Advertisin g baskets and carts, in-store d mples will alert both local resid als, product quality, and other

Employee ey found everything they wer counter staff to ask customer employees to make suggestio mplete their meal or shopping

5.4.1 Sales F

The sales

• With o slowly improve. There to be 5% over the previo

• Manag in the four existing sales s category remains equal t.

• The re • The b ete by December 1,

2010. • Three • The d eady for business on

Janua y , • Deli sales are projected to be $80,000 in 2011 and to increase by 5% in 2012. • Fresh produce counter sales are projected to be $50,000 in 2011 and to increase by 5% in

2012. • Ice cream shop sales are projected to be $80,000 in 2011 and increase by 5% in 2012. • The gross profit margin for the deli, produce counter, and ice cream shop are equal to the

gross profit margin for the groceries and miscellaneous sales category, and remain equal throughout the three year forecast.

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COMPANY NAME

Table: Sales Forecast

Sales Forecast Sales Gasoline Fuel

Beer, Win Cigarette

Lottery Groceries Miscellane

Ice Cream Deli Produce C Total Sale

Direct Co Gasoline Fuel

Beer, Win Cigarette

Lottery Groceries Miscellane

Ice Cream Deli Produce C Subtotal of Sales

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COMPANY NAME

• Depreciation will increase beginning in September 2010 as the building expansion progresses and equipment is purchased. Once the entire project is completed, straight-line depreciation using a 27.5-year building expansion and roof life and a 7-year equipment life will increase depreciation throughout the three-year forecast by $15,282 over the previous depreciation expense.

• Utilities will increase by 3% until December 2010, then will increase by 33% (due to the building expansion) from December 2010 through December 2011, then will increase 3% in 2012.

• Insura year projection. • All ot hout the three-year

projec

Table: Profit

Pro Forma Loss

Sales Direct Cos Other Cost Total Cost

Gross Mar Gross Mar

Expenses Payroll Marketing/ Depreciati Rent Utilities Insurance Payroll Tax Other

Total Oper Expenses

Profit Befo and Taxes

EBITDA Interest E Taxes Inc

Other Inco Other Inco

Total Othe

Other Expense Other Expense $0 $0 $0

$0 Total Other Expense $0 $0 $0

Net Other Income $0 $0 $0 Net Profit $37,073 $50,483 $61,425 Net Profit/Sales 4.19% 4.44% 5.14%

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COMPANY NAME

Table: Cash Flow Pro Forma Cash Flow 2010 2011 2012 Cash Received Cash from Operations Cash Sales $884,000 $1,138,200 $1,195,110 Subtotal Operation

Additiona Non Oper Income

Sales Tax Received

New Curr New Othe (interest-

New Long Sales of O Assets

Sales of L New Inve Subtotal

Expenditu

Expenditu Operation

Cash Spe Bill Paym Subtotal Operation

Additiona Non Oper Expense

Sales Tax Paid Out

Principal Current B

Other Lia Repayme

Long-term Principal

Purchase Assets

Purchase Long-term Assets $186,000 $0 $0 Dividends $60,000 $60,000 $60,000 Subtotal Cash Spent $1,098,206 $1,123,198 $1,172,708

Net Cash Flow $35,794 $15,002 $22,402 Cash Balance $27,944 $42,946 $65,348

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COMPANY NAME

Main Ratios Current 1.46 1.51 1.74 1.69 Quick 0.71 0.74 0.96 0.71 Total Debt to Total Assets 14.24% 17.26% 17.62% 62.88% Pre-tax Return on Net Worth 11.82% 16.44% 19.94% 12.96% Pre-tax Return on Assets 10.14% 13.61% 16.43% 4.81%

Additiona Net Profit a Return on a

Activity R Inventory a Accounts a Payment a Total Ass a

Debt Rati Debt to N a Current L a

Liquidity Net Work a Interest C a

Additiona Assets to a Current D a Acid Test a Sales/Net a Dividend a

Page 23

Appendix

Table: Personnel Personnel Plan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Owner and General Manager (2) $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 Cashiers (2) $2,544 $2,544 $2,544 $2,544 $2,544 $2,544 $2,544 $2,544 $2,544 $2,544 $2,544 $2,544 Additional Employees Required With Expansions (3) $0 $0 $0 $0 $4,333 Total People 4 4 4 4 7

Total Payroll $3,444 $3,444 $3,444 $3,444 $7,777

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Appendix

Table: Profit and Loss Pro Forma Profit and Loss Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales $64,000 $64,000 $69,500 $72,000 $77,500 $83,500 $83,500 $83,500 $77,500 $71,500 $67,000 $70,500 Direct Cost of Sales $43,351 $43,351 $46,968 $48,748 $52,473 $56,498 $56,498 $56,498 $52,473 $48,447 $45,246 $47,353 Other Costs of Sales $0 $0 $0 $0 $0 Total Cost of Sales $43,351 $43,351 $46,9 $48,447 $45,246 $47,353

Gross Margin $20,649 $20,649 $22,5 $23,053 $21,755 $23,148 Gross Margin % 32.26% 32 26% 32.42 32.24% 32.47% 32.83%

Expenses Payroll $3,444 $3,444 $3,4 $3,444 $3,444 $7,777 Marketing/Promotion $668 $668 $6 $668 $668 $2,671 Depreciation $542 $541 $5 $744 $845 $1,815 Rent $0 $0 $0 $0 $0 Utilities $839 $839 $8 $839 $1,118 $1,118 Insurance $1,565 $1,565 $1,5 $1,565 $1,565 $1,565 Payroll Taxes 15% $517 $517 $5 $517 $517 $1,167 Other $10,911 $10,911 $10,9 $10,911 $10,911 $10,911

Total Operating Expenses $18,486 $18,485 $18,4 $18,688 $19,068 $27,024

Profit Before Interest and Taxes $2,163 $2,164 $4,0 $4,365 $2,687 ($3,876) EBITDA $2,705 $2,705 $4,5 $5,109 $3,532 ($2,061) Interest Expense $236 $236 $2 $0 $0 $0 Taxes Incurred $578 $578 $1,1 $1,310 $806 ($1,163)

Other Income Other Income $0 $0 $0 $0 $0

Total Other Income $0 $0 $0 $0 $0

Other Expense Other Expense $0 $0 $0 $0 $0

Total Other Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Other Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Appendix

Net Profit $1,349 $1,350 $2,667 $3,172 $4,414 $5,797 $5,796 $5,797 $4,509 $3,056 $1,881 ($2,713) Net Profit/Sales 2.11% 2.11% 3.84% 4.41% 5.70% 6.94% 6.94% 6.94% 5.82% 4.27% 2.81% -3.85%

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Appendix

Table: Cash Flow Pro Forma Cash Flow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash Received Cash from Operations Cash Sales $64,000 $64,000 77,500 $71,500 $67,000 $70,500 Subtotal Cash from Operations $64,000 $64,000 77,500 $71,500 $67,000 $70,500

Additional Cash Received Non Operating (Other) Income $0 $0 $0 $0 $0 $0 Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 $0 Sales of Other Current Assets $0 $0 $0 $0 $0 $0 Sales of Long-term Assets $0 $0 $0 $0 $0 $0 New Investment Received $0 $0 50,000 $0 $0 $0 Subtotal Cash Received $64,000 $64,000 27,500 $71,500 $67,000 $70,500

Expenditures Jan Feb Sep Oct Nov Dec

Expenditures from Operations Cash Spending $3,444 $3,444 $3,444 $3,444 $3,444 $7,777 Bill Payments $33,216 $27,988 73,401 $64,040 $59,464 $57,384 Subtotal Spent on Operations $36,660 $31,432 76,845 $67,484 $62,908 $65,161

Additional Cash Spent Non Operating (Other) Expense $0 $0 $0 $0 $0 $0 Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 47,277 $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 Purchase Other Current Assets $0 $0 $0 $0 $0 $25,000 Purchase Long-term Assets $0 $0 33,334 $33,333 $39,333 $80,000 Dividends $5,000 $5,000 , , , , , , $5,000 $5,000 $5,000 $5,000 Subtotal Cash Spent $41,660 $36,432 $67,390 $75,517 $75,588 $82,067 $86,715 $82,162 $162,456 $105,817 $107,241 $175,161

Net Cash Flow $22,340 $27,568 $2,110 ($3,517) $1,912 $1,433 ($3,215) $1,338 $165,044 ($34,317) ($40,241) ($104,661) Cash Balance $14,490 $42,059 $44,169 $40,652 $42,564 $43,996 $40,781 $42,119 $207,163 $172,847 $132,605 $27,944

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Appendix

Table: Balance Sheet Pro Forma Balance Sheet Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Assets Starting Balances Current Assets Cash ($7,850) $14,490 $42,059 $207,163 $172,847 $132,605 $27,944 Inventory $82,456 $50,721 $50,721 $61,393 $56,683 $52,937 $55,402 Other Current Assets $21 $21 $21 $21 $21 $21 $25,021 Total Current Assets $74,627 $65,232 $92,800 $268,577 $229,551 $185,564 $108,367

Long-term Assets Long-term Assets $276,782 $276,782 $276,782 $310,116 $343,449 $382,782 $462,782 Accumulated Depreciation $40,250 $40,792 $41,333 $45,225 $45,969 $46,814 $48,629 Total Long-term Assets $236,532 $235,990 $235,449 $264,891 $297,480 $335,968 $414,153 Total Assets $311,159 $301,222 $328,249 $533,468 $527,031 $521,532 $522,520

Liabilities and Capital Jan Feb Sep Oct Nov Dec

Current Liabilities Accounts Payable $32,318 $26,032 $56,710 $62,055 $57,562 $55,182 $63,884 Current Borrowing $47,277 $47,277 $47,277 $0 $0 $0 $0 Other Current Liabilities $10,547 $10,547 $10,547 $10,547 $10,547 $10,547 $10,547 Subtotal Current Liabilities $90,142 $83,856 $114,534 $72,602 $68,109 $65,729 $74,431

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 Total Liabilities $90,142 $83,856 $114,534 $72,602 $68,109 $65,729 $74,431

Paid-in Capital $142,562 $142,562 $142,562 $392,562 $392,562 $392,562 $392,562 Retained Earnings ($3,164) $73,455 $68,455 $33,455 $28,455 $23,455 $18,455 Earnings $81,619 $1,349 $2,699 $34,850 $37,905 $39,786 $37,073 Total Capital $221,017 $217,366 $213,716 $460,867 $458,922 $455,803 $448,090 Total Liabilities and Capital $311,159 $301,222 $328,249 $533,468 $527,031 $521,532 $522,520

Net Worth $221,017 $217,366 $213,716 $460,867 $458,922 $455,803 $448,090

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Appendix

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