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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

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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.

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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 Write a Retail Business Plan That Succeeds

Running a solid business can be overwhelming. The initial thoughts of how you will succeed in a competitive world need advanced planning and feasible actions.

Commonly, the retail business owner is too busy to focus on the product, the pricing, and other essentials, the primary need to plan in advance is neglected.

This neglect results in poor management of the supply chain, misuse of the limited resources, and in the end, losing the profit margin of the business that was so hardly built. To avoid this undesirable outcome, we’ll take a look at the most practical and organized way to write your retail business plan. When you think about setting a retail business plan for your business, there are a few strong reasons why.

Let’s meet two retail professionals with different needs. We know that a suitable business plan format will develop by knowing their specific needs.

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Meet Ian and Julie before writing your business plan

His family has been running a retail store for more than 15 years. They know about their products and generate sales. However, by the year-end, they don't make enough profit. That’s why they need to replan their business structure for more profit.

Or, meet Julie. She is planning to open a brand new retail store, and she does not have any prior experience in retail. Thus, she wants to know the basic outline so she can cater to her business expectations.

No matter what triggers the interest, a well-prepared, and indeed, an executed business plan will change the course of your retail business. The business plan is essential in defining short-term and long-term business goals and how to succeed. It also gives you a perspective on your business besides the costs and effects of your decisions.

Now let’s try to imagine these two retail businesses. It’s important to treat your business plan as your business partner. Like every partnership, this one also depends on sincerity and open-mindedness. Think about how you’d tell your business to your partner, family, or potential customers.

You’d probably begin to ask some questions before writing your business plan.

Questions to ask before starting a retail business plan:

• Why did you start this retail business in the first place?
• What is the product or service you’re offering?
• Why does your retail business matter, and to whom?
• Who you’d want to see in your store as customers and why?
• How will you sell this product to your customers? (your main distribution channels, marketing strategies, or promotions etc)
• What is your pricing strategy, and your competitive advantage?
• What and who do you need to run this business? (Do you need to invest in new technology? Who will work at your store or who will manage your finances?)
• How much money you have, and how much you’d want to make if you sell your company at some point?

These essential questions will form the basis of your business plan. Now, get ready to take notes because you will prepare a business plan checklist by the end of this article to follow your progress.

What are the essentials of a retail business plan format?

A traditional business plan involves several headlines that fill the questions mentioned above. Here are some of them:

Executive summary

An executive summary tells your “audience” about the essence of your company and why it is/will be successful.

• Retailer 1, Ian , will tell how his company has the trust of its customers
• Retailer 2, Julie , will tell how she got into this business in the first place and what makes her product unique.

Thus, an executive summary should be a brief overview of your business plan .

A hint about the executive summary is, you may just leave it to the end . Fill out every other section in your plan, go through the details, finalize it, and then come back to the top and summarize it all. This way, you actually think about the specifics of your business and will build your way to the top, not the other way around.

Company description

The company description part is where you tell your audience about what you do, who you are, the problems you solve for your customers, the competitive advantage you’re bringing, and your expertise. The company description is about what you and your assets are good at. Make sure you include:

• Business structure (sole ownership, partnership, family, etc.)
• Business model (B2C, B2B or other)
• The industry you’re in
• Your mission and vision statements: This part is one of the most undermined sections of a business plan. Your audience will want to know about your value proposition as much as your numbers and your businesses. Putting a compelling mission and vision statement in action is also crucial for you to think about what you are selling and, most importantly, why.
• Some history of your company or yourself
• Company culture & principles

Do not forget to add some local and numerical information such as where your company/stores are located at, the year your retail business started, and the number of employees you have/or plan to have.

When writing about your company objectives, it’s important to follow S.M.A.R.T format; specific, measurable, attainable, realistic, and time-bound.

Here is a brief example of these two retailer’s company description:

Retailer 1: “Ian’s Business” is a family-owned business operating since 1995 with 12 employees and third-party suppliers. We are the first retailer in Colorado to sell organic produce from local farms to hustling white-collar professionals to be delivered to their door. We value locality, state-of-the-art produce, and punctuality. Our target is to reach a wider audience and increase our market share by 20% by 2023.

Retailer 2: Julie is a solopreneur who has a passion for outdoor gear for moms. “Julie’s Business” picks the best gear from stores all around the world and sells them at juliesmomgear.com. We value gender equality and believe that more moms should enjoy outdoor sports with their children without thinking about safety. Julie’s Retailer believes in disruption and aims to be the first brand in the United Kingdom to mom gears with a market share of 60% by 2028.

Market analysis and competition

You would like to tell your audience about the people interested in your products and other people who sell them. This part will give you a broader perspective on your target customers.

Market overview

The size of your reachable market is where you’d like to begin. Your market is where you want to sell those products, so for Ian, it might be the whole Colorado region, and for Julie, it's the United Kingdom as a country.

Try to work with a market research company to gather this information, and if this is not possible for you, do your own little market research of the people who belong to your target customer group. It will give you a better view of the size of the market, your competition, and how far you should go to sell your products.

Remember that every little decision you make affects a wider objective in your business plan.

Competition

We all want to have some leadership in our industry. However, there are and will be others who we compete with. In today’s digitalized world, your competition is not limited to your neighborhood, your country, or even your industry. Retailer Julie may think that she is in the outdoor gear industry, but a significant baby clothing outlet can have a mom line that serves both needs.

So to define your competition, don't just consider your direct competitors but also think broadly to determine what service offering your target customer would fall for.

If it's easier for a mom to shop for outdoor gear while she is at a baby store, then that baby store is also on your competition list.

SWOT Analysis

The secret abbreviation that sounds like a Hollywood movie clearly defines your situation among your own proposition and the outside factors that affect your business. No matter how this four squared diagram may look easy, this analysis will guide you in more ways you can imagine in terms of your product and your market.

It helps you to focus your attention on your strengths and weaknesses, as well as your competitors’ or your market’s opportunities and threats.

Products and services (also customers)

In this section, you need to clarify your products that are your main revenue generators, and the services you offer around them. Include your primary selling proposition and what makes your product or service stand out in the competition.

For Ian , this would be the local produce that he’s collecting from farmers that also impacts the local economy.

For Julie , this is the rare offering of a mom outdoor gear, which can be hard to find in a typical outdoor gear store.

Do not miss the chance to explain your services, too.

At-home delivery, 24 hrs availability, or subscription services might be good examples to include.

Marketing plan

Even though we all realize that a marketing plan is subject to change in business progress, it’s preferable to plan and get the basics on how you'd like to market your products.

Retailer 1, Ian , may choose to opt-in a local news outlet and inform all the white-collar workers around Colorado that he’s selling fast delivery local produce.

At the same time, Retailer 2, Julie may launch an extensive online advertising campaign targeting her potential customers through social media .

No matter which marketing strategy you execute, you use a few essentials in your business plan.

Related: Digital Marketing for Retailers: Every Tactic and Channel You Must Know

As Elon Musk said,” brand is just a perception, and perception will match reality over time.”

Your customers want to be perceived by a good brand image and receive the offering as well. So you’ll need to include how you’ll brand your product in your business plan so that the audience will have a better understanding of your place in the market.

Related: 15 Creative Retail Display Examples to Increase Foot Traffic and Sales

The pricing can also differ depending on seasonality. However, the choice and the freedom to place your product in a segment are up to you. You can choose to be a low-cost retailer with a lot of sales but low margin, and you can also choose to be a high-end retailer that relies on flash campaigns to generate more sales.

Retailer 1, Ian , is probably suffering from being a low-cost retailer because he can't make enough profit in the end. So, he needs to restate this when he’s writing his business plan.

On the other hand, Retailer 2, Julie can be more transparent and tell the audience why she’s pricing her products the way she does while emphasizing her target audience and wallet share.

Retail offering

Your retail offering is where do you plan to sell your products, how many stores you’ll have, and your expansion plans. The more assets you have in terms of real estate or customer database, the more you need strategies to make them work financially and strategically.

Keep in mind that, especially if you’re looking for an exit strategy or a capital investment, your expansion means that you’ll reach a wider customer base, so it’s more attractive.

The customer data that you have as a retailer is one of your most valuable assets. So if you’re going to have a referral program, subscription services, or similar, you need to include them in your business plan as well.

Management & People

Explain how and with whom you’ll run this business. Try to give the audience a better view of your people know-how, your employees' expertise, and your family's partners to run this business. You can also include your staffing requirements, their daily or weekly shift. Remember that this will also give an idea of the customer traffic you’re expecting from your store.

If you need additional staff such as an outsourced accounting team, work with a third party to deliver supplies to your store, and a 24/7 customer service experience, these should be in your plan. You have to make sure that this section is about you and how well you do or will run this business with the perfect people management skills .

Related: 12 Things to Consider Before Hiring A New Retail Employee

After you carefully listed all your assets and liabilities, you can now plan the money-making process. There are various retail math formulas and terms you need to familiarize yourself with to do the proper retail calculation . Your final plan typically includes an income statement, a balance sheet, and a cash-flow statement . It may be meaningful to have a break-even analysis or a 5-year profit and loss projection if your business suits this kind of projection.

It would be best to consider what you already have as a financial asset for your store. This is your capital investment. Especially if you are planning to include a 5-year financial plan, this asset is the core investment your business will depend on.

Retail: 15 Key Metrics (KPIs) to Measure Retail Store Performance

Income statement

The income statement is your revenue and expenses over some time. This is advised to be planned in yearly projection and be updated as frequent as necessary -typically month by month-. By doing this, you’ll be more aware of your profit and loss and increase your ability to take necessary actions before it's too late.

Balance sheet

The balance sheet is the balance between your equity and your liabilities. This is where your capital investment will sit, balanced out by the assets you own. A retail owner will always want to keep this equity weighing more on the assets side so that s/he can build a financially sustainable business.

The cash flow statement is sometimes disregarded as there are many other sheets to follow. Still, this statement is where you pay the rent, employee salaries, and supplies. It is tracked more frequently than the other two because it helps you keep track of your investment and payment timelines.

With a simple analysis, you’ll know when you’ll receive cash, so you won't feel helpless if you are cash negative for some time. You can quickly identify the gap in your flow and adjust your operations as required .

Finally, just a few notes on how you should approach your business plan:

• Make sure you have a checklist
• Just write down as you’re talking to a friend/partner and then work on the structure.
• Look at samples or download templates to guide you.
• Take your time. It should be well thought and worked on.
• Do not rush when it comes to business plans.

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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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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
• Real-life case studies and examples

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!

THE PROFESSIONAL RETAIL ACADEMY (PRA) ™

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

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.

CONNECT THE DOTS

Learn how to manage a retail business end-to-end.

We’ve put together a curriculum, specifically designed for retail owners or retail professionals who want to advance into senior management roles.

Learn how to connect the dots of the business and take the basic knowledge to the next level of application . 

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!

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

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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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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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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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• 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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Related articles.

Strategic Retail Planning Process: The Right Way To Do It

Get ready to chart a new course in the retail industry! The waters are rough, with economic uncertainty, consumer expectations shifting, and game-changing megatrends like e-commerce, sustainability, and digitalization shaking up established business models.

The traditional approach to strategic planning is no longer enough to steer you to success. But don’t get discouraged just yet! 

In this article, we'll explore why the usual approach is falling short and reveal a proven, highly effective 6-step retail strategic planning process. We’ll show you a real-world example of a strategic plan from one of the largest global retailers. 

We'll also arm you with a comprehensive retail strategic plan template to help you create and execute a winning strategy that will gain your organization a competitive advantage and unlock growth potential. 

Here’s what we’re going to cover:

Why the Traditional Approach to Strategic Planning in Retail Falls Short

• 6 Steps of Highly Effective Strategic Retail Planning  
• Retail Strategic Plan Example + Template 
• The Key to Retail Success in 2023: An Execution-Ready Strategic Plan

Today's retail market demands a different approach to strategic planning, as long-term planning cycles and spreadsheets are no longer effective. This traditional approach is disconnected from day-to-day operations and business leaders focus too much on planning and perfecting their strategies instead of executing them. As a result, their strategies are bound to fail before they even hit the ground.

Here’s why:

• Dynamic market conditions and global supply chain disruptions: The retail industry is constantly changing, making it hard to stick to a long-term plan.
• Digitalization and technology disruptions: Digital transformation requires quick action and rapid adaptation across all levels of the organization, but the traditional approach can’t break through organizational siloes and keep up with the pace of change. 
• Increased consumer expectations: With customers' expectations constantly shifting, relying on the slow and rigid approach to strategic planning can result in a market share loss. 

These factors highlight the need for a more flexible, adaptable approach to the strategic retail planning process and retail operating model. By adopting an execution-first mindset, data-driven, and flexible approach to retail strategy, retailers can accelerate their digital transformation , stay ahead of the competition and deliver profitable growth. 

📚 Recommended read: Strategy study: How Costco's Unique Business Model Resulted In Global Success

6 Steps of Highly Effective Strategic Retail Planning   

In the steps below, you’ll discover how to develop a retail strategy on a corporate level, connect the dots between strategy and day-to-day execution, and integrate fast adaptability into your retail operations. 

Let's unpack how you can get it right:

1. Start with a situational analysis

The first step of effective strategic retail planning is conducting a thorough situational analysis. This strategic analysis involves evaluating both internal and external factors that may impact your retail business.

One useful tool in this process is a SWOT analysis , which evaluates the strengths, weaknesses, opportunities, and threats of your retail business. 

The internal analysis should look closely at your company's strengths and weaknesses, while the external analysis should examine the opportunities and threats in the competitive landscape , economic conditions, industry trends, and broader market forces.

You can also take advantage of other analysis tools for a more in-depth analysis of the external environment, such as PESTLE analysis or Porter’s 5 Forces . 

💡Here's a pro tip: Even if you’re planning at a corporate level, you shouldn’t neglect your key stakeholders in this step. These people will be responsible for bringing your retail business strategy to life, so it's important to get their input. Here are some examples: 

• Your retail marketing team will tell you more about your competitors, market segmentation, and target market demographics. Plus, they should give you insight into which growth and marketing strategies are best for different target markets. 
• Your merchandise management team can give you insights into merchandise planning and pricing strategies that work best to maximize turnovers. 

On top of that, when they're a part of the process, they'll feel more invested in making your strategy a success.

📚 Recommended read: How To Effectively Co-create Strategy At Your Organization (Recap of the workshop led by Ilana Rosen, Director of Strategy at Old Navy)

2. Get insights from your consumers

Consumer-centric strategies are one of the key factors in securing a successful retail business. Did you know that companies can reduce operational costs by 10 to 25 percent as a result of improved customer experience and digital transformation? That's why it's important to get insights from your consumers.

Your goal needs to be to have a complete, 360 view of your consumer. You can start by looking at demographics. What’s your target audience? What are their backgrounds, habits, and motivations? What does their typical customer journey look like? 

By informing your retail strategy with consumer insights, you’ll be able to ground your strategy in data and set your business up for success. Let’s look at Nike , for example. They realized that a large portion of their customers were young athletes who wanted more from their gear to enhance their performance. This insight led to the creation of Nike's innovative "Dri-Fit" line, which has become a staple for athletes around the world.

By conducting a comprehensive consumer behavior analysis, you will gain a better understanding of consumer behavior and their needs. With these insights, you can then identify areas for improvement, innovation, and strategic opportunities for growth. 

📚 Recommended read: How Nike Runs The Sportswear Game

3. Develop an overarching retail strategy, set objectives, and build a roadmap

In the second step of effective strategic retail planning, you'll want to outline general business intent, formulate your overarching retail strategy and build a strategic roadmap. This includes defining your strategic priorities and key retail objectives, and determining the measures of success. 

To help you with this process, you may find it helpful to use a strategic plan template, such as this one → Retail Strategy Template by Cascade . 

To create a robust strategy and roadmap, there are several key elements that you should include:

🔎Focus areas: Outline the specific areas of the business that your strategy will focus on. For example, a focus area for a retail business might be boosting digital growth, improving customer experience in-store, expanding into new markets, elevating customer omnichannel experience, or enhancing inventory management. 

📌Key Retail Objectives: Define specific, measurable, time-bound, and achievable objectives for each strategic focus area. For example, increasing customer satisfaction by 10% in the next 12 months, or launching a new e-commerce platform within the next six months.

📈Measures of Success: This defines how the success of your strategies will be evaluated. For example, a KPI (Key Performance Indicator) for a retail business might be customer satisfaction scores, the number of active loyalty customers, market share, or online sales growth. 

📤Action Plan: Break the overall strategic plan down into smaller, short-term, and specific actions or projects you need to take to achieve your long-term objectives and prioritize the most critical initiatives. This might include launching a new mobile app, investing in a new CRM system, hiring additional staff, improving on-shelf availability, or training employees on customer service.

📅Timelines: Establish deadlines for key milestones and deliverables to ensure you stay on track and meet your objectives.

😎Owners: Identify who will be responsible for executing each aspect of the strategy. This could include anyone from your senior management or division managers. 

💰 Budget: Allocate financial resources that will be required to implement strategies and keep track of the budget spent. 

By including these key elements in your retail planning strategy and roadmap, you'll have a clear understanding of where you want to take your business and how you'll get there. The roadmap will serve as a guiding principle as you move forward with the rest of your strategic planning process and strategy execution.  

👉 Here’s how Cascade can help you in this step: 

With Cascade’s strategic planning feature , you'll have a clear, visual representation of your strategic plan and roadmap, making it easy to see how each aspect of your strategy fits together and how you're progressing toward your goals.

Say goodbye to confusing and complex spreadsheets - with Cascade, you'll have all the information you need in one place. And, the best part? It's not just a pretty picture - Cascade helps you track progress and measure success, ensuring that you're always on the right track to achieving your retail objectives.

4. Align retail operations with the overarching business strategy

Step three is all about getting your people on board! Sharing the company strategy with your teams is crucial. Not only does it give them a clear understanding of what the big picture looks like, but it also helps ensure their daily efforts are connected to corporate goals.

However, one of the key problems in the goal-setting process , especially in larger, complex, and multinational organizations, is that it can become "opaque — with clarity diminishing" as goals are passed down through the hierarchy, according to the report Reimagining Performance Management from AICPA & CIMA and the World Business Council for Sustainable Development.

With Cascade, it's easy to cascade corporate goals and make sure everyone's focused on the right strategic initiatives to keep the business moving forward and delivering on the corporate strategy. 

👉 Here’s how Cascade can help you: 

With Cascade, you can easily link strategic objectives to individual business unit plans or departmental plans, so you and your teams can see the direct connection between their initiatives and their impact on corporate goals.

Plus, it makes communication and cross-collaboration between teams a breeze, so everyone is always in sync. Say goodbye to misaligned efforts and hello to a seamless, aligned strategy execution with Cascade.

5. Time to execute your retail strategic plan!

The fifth step is all about putting your plan into action! It's time to stop just talking the talk, and start walking the walk. You've developed a fantastic retail strategy, now it's time to share it with the world (or at least, your organization). Make sure everyone understands your overarching retail business strategy and how it fits into the bigger picture. Here are some tips to help you communicate it effectively:

• Make it accessible: Don't hide your strategy in a dusty PowerPoint presentation; make sure it's available in one easily accessible place for everyone in the organization. This will help you to keep strategy relevant and alive throughout the execution phase. 
• Lead by example: As a leader, you should set the tone and lead by example. Encourage everyone to take ownership of the strategy and be proactive in its execution.
• Use different communication channels: Different people prefer different communication styles, so make sure to use a variety of channels. Ankur Gupta, Principal of the Strategic Planning Office at FedEx, suggests regular town halls and announcements from the senior leadership. Try intranet sites, regular meetings, and daily standups. Or personally visit the company’s retail stores. This will help you to build trust with store managers and frontline workers and get buy-in into what needs to be done to successfully execute your strategy.  

By following these tips, you'll be well on your way to executing your retail strategy and achieving your goals!

Cascade creates a centralized place for your strategy and is easily accessible to everyone who needs to be involved in strategy execution. Plus, you can manage your organization's strategy in a secure hub, allowing only those with permission to access sensitive information.

6. Monitor and adapt as you go

In this final step of the strategic retail planning process, it's crucial to have an effective performance management system in place to monitor progress, analyze performance, and make data-driven decisions. The goal is to make sure the retail business stays on track to achieve its objectives and to make quick adjustments along the way. 

Here’s what you should do in this step to ensure successful strategy execution: 

• Move beyond manual reporting: Many retailers rely on manual methods of compiling reports, which can be time-consuming and result in missed opportunities. To access sales performance, cost, and profitability information in real-time, it's essential to embrace automation and end-to-end visibility in the strategic retail planning process and its execution.
• Establish an effective performance management system: Regular quarterly reviews, scheduled progress reports, a rewarding system, and one-on-one syncs with key team leaders can help ensure the retail business stays on track to achieve its objectives. Cascade provides a single source of truth that reveals in real-time if goals have drifted, making it easier to make any necessary adjustments.
• Connected data sources: Connect multiple disconnected business tools in one place with Cascade’s integrations , reducing context switching and maximizing efficiency.
• Live dashboards: Get real-time visibility into your business's performance with Cascade's live dashboards . Stay ahead of the game by monitoring critical metrics regularly and making data-driven decisions with ease.

• Progress reports: Get regular updates on how your retail strategy is performing with Cascade's progress reports. Track progress, identify areas for improvement, and stay on track to achieve your objectives.

Tired of spending hours and hours putting together reports for the management board? Tedious! Let's face it, manual reporting can be a real drag.

But with Cascade, you can focus on what really matters - analyzing business performance and making data-driven decisions. So, you can impress the management board with spot-on, accurate strategy reports that show how their business is doing. 

Retail Strategic Plan Example + Template

Ready to start crafting your own execution-ready plan? To make your strategic planning process easier, we’ve created a real-world inspired strategic plan based on Costco’s, the world’s third-largest retailer, annual report. 

Here’s what Costco’s strategic plan would look like following the strategic planning model we outlined in step 2 above: 

Focus area: Efficiency 

Objective: Reduce our costs without sacrificing quality

Actions: Expanding the in-country sourcing options / Acquire and develop cloud-based software to manage logistics of big and bulky items / Decrease the Cost Of Goods Sold (COGS) by 18%

Measures: Net sales, COGS, delivery time  

Here’s a preview of Costco’s strategic plan template:

When you sign up, you'll get instant access to a template pre-filled with Costco's examples. Now, keep in mind that this template is meant to be an inspiration. We encourage you to customize the template, fill in the elements, and align it with your retail strategy.

👉 Click here to get instant access to the strategic plan template pre-filled with Costco’s examples.

The Key to Retail Success in 2023: An Execution-Ready Strategic Plan 🚀

In the fast-paced retail world, having a solid strategic plan is crucial, but it's just the first step. The real game-changer is executing that plan flawlessly. That's where Cascade comes in to revolutionize the traditional approach to strategic retail management and strategic planning. With Cascade, you can turn your vision into a tangible and actionable plan that's ready to be executed.

So what are you waiting for? Get ready to soar to new heights and connect the dots between planning and execution with Cascade.

Start today with a free forever plan or book a guided 1:1 tour with one of our Cascade in-house strategy execution experts.

Retail Strategic Planning FAQs

What is the retail mix .

The retail mix is a combination of elements that retailers use to create a unique shopping experience and meet the needs of their customers. It includes seven elements, also known as the 7 Ps of retail marketing: product, price, promotion, place, people, process, and physical evidence. By examining each of the 7 Ps and considering how they align with the overarching business strategy, retailers can create a cohesive plan for growth and successful retail positioning.

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

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

Here is the first retail business plan example. Fuel & Fire is a typical convenience store and gas station business.

Introduction

In today’s fast-paced world, the convenience store and gas station industry plays a pivotal role for daily commuters, weekend travelers, and community residents. “Fuel & Flee” is poised to redefine this sector by delivering top-notch vehicle fuels and a diverse array of essential items for on-the-go consumers. By harnessing Solink’s potent tools, we anticipate an enhanced security atmosphere and precise, actionable business insights.

• Name and nature: “Fuel & Flee” is designed to be a dual-function entity, melding a state-of-the-art gas station with a fully-stocked convenience store.
• Prime location: The business will reside at the intersection of Main Street and Highway 101, capturing both the local and highway traffic.
• Vision statement: Our aim is to emerge as the number one pit-stop choice for every traveler and local resident within a 10-mile radius.
• Holistic offerings: Apart from standard fuel services, a variety of convenience products such as fresh food, beverages, and daily essentials will be available.
• Legal backbone: Registered as a Limited Liability Company (LLC), ensuring protection and flexibility.
• Location details: A spacious location with 4 fuel pumps, 12 parking spots, and a 2,500 sqft store, all primed for quick and easy access.
• Industry insight: A 5% annual growth has been noted in the convenience store and gas station sector, especially in highway-adjacent areas.
• Target audience: Segment 1: Daily commuters (40%); Segment 2: Long-distance travelers (35%); Segment 3: Local families (25%).
• Competition analysis: Within a 15-mile radius, there are three major competitors—two national chains and one local establishment.
• Fuel varieties: Regular, mid-grade, premium, and diesel options for diverse vehicle needs.
• Store inventory: Over 1,000 unique items including snacks, drinks, automotive products, and a dedicated section for organic and local produce.
• Added amenities: A 24-hour ATM, a self-service air pump, and a mini cafe offering fresh coffee and pastries.
• Technological boost: The Solink system will provide unparalleled management insights, monitoring transaction data to understand optimal restocking times.
• Visual branding: Vibrant signboards and in-store displays to attract and retain customer attention.
• Promotional moves: Monthly deals such as “Fill & Feast” offering discounts on combined fuel and store purchases, aiming to increase average ticket size by 15%.
• Financial forecast: Anticipated revenue growth of 20% in the first year, scaling to 30% by the third year due to strategic promotions and customer loyalty initiatives.
• Supplier ties: Established contracts with top-tier fuel suppliers and local product distributors, ensuring consistent quality and timely deliveries.
• Inventory tactics: Bi-weekly stock checks and data-driven restocking decisions supported by Solink’s analytical prowess.
• Safety and surveillance: Continuous monitoring with Solink’s cloud-based video surveillance , ensuring a secure shopping environment and deterring potential thefts.
• Key staff: A seasoned store manager with 10 years in the retail and fuel sectors, supported by four cashiers, six fuel attendants, and three part-time staff members for restocking and cleaning.
• Employee growth: A commitment to staff development through quarterly training sessions focusing on safety protocols, customer service enhancements, and product knowledge.
• Startup costs: An initial outlay of $500,000 covering land lease, construction, and the first stock of inventory.
• Recurring expenditures: Estimated monthly expenses of $50,000 including salaries, utilities, and replenishing stock.
• Revenue breakdown: Anticipated monthly earnings from fuel sales ($120,000), convenience store sales ($80,000), and additional services ($10,000) totaling $210,000.
• Profit milestone: Predicted to hit the break-even point by the eighth month, with steady profit growth thereafter.

With its strategic offerings and location, “Fuel & Flee” stands on the precipice of becoming a dominant force in the convenience store and gas station domain. Tools like Solink can drastically amplify its operational capabilities and security levels, ensuring the venture is both profitable and remains a top pick for its diverse clientele.

Business plan example 2: "Buy Right", a grocery store

Here is the second business plan example. In this case, we are looking at opening a franchised grocery store. The overall size of the property is much higher, as are the startup costs.

In an era where consumer preferences lean towards vast selections and one-stop shopping experiences, grocery stores have an immense role. “Buy Right” seeks to harness this demand by inaugurating a large franchised grocery outlet, ensuring customers have access to a diverse range of products under one roof. 

Partnering with Solink, the store aims to guarantee safety, loss prevention, and deep business insights for continual improvement.

• Business essence: “Buy Right” will function as a large-scale franchised grocery store, offering everything from daily essentials to gourmet items.
• Strategic location: Situated in the bustling commercial hub of Maple Street, ensuring easy access for a large population.
• Mission: Delivering quality products at competitive prices while ensuring an unmatched shopping experience.
• Store blueprint: A sprawling 20,000 sqft store with dedicated sections for fresh produce, dairy, bakery, meats, international goods, and more.
• Legal design: Operating as a franchise under a well-renowned grocery chain ensures brand recognition and trust.
• Facility features: Equipped with 15 checkout counters (including 6 self-checkouts ), a deli, a bakery, and ample parking for over 100 vehicles.
• Industry dynamics: A consistent 4% annual growth in the large grocery store sector, particularly in urban areas.
• Target demographic: Segment 1: Families (50%); Segment 2: Young working professionals (30%); Segment 3: Seniors (20%).
• Competitive landscape: Three direct competitors within a 10-mile radius, including another franchised store and two local grocery chains.
• Comprehensive offerings: Over 15,000 unique SKUs from local, national, and international brands.
• Value-added services: A bakery producing fresh items daily, a deli offering cold cuts, and a pharmacy section.
• Tech enhancement: Implementation of Solink to monitor customer shopping patterns, ensuring inventory is aligned with demand and improving store layout based on customer heatmaps .
• Promotion: Weekly flyers highlighting discounts, in-store product sampling, and seasonal sales to boost footfall.
• Loyalty programs: “Buy More, Save More” program, aiming to increase average customer spending by 10% within the first year.
• Sales projections: Expected to serve over 500 customers daily, with an average spending of $50 per customer.
• Supply chain dynamics: Tie-ups with established distributors, ensuring regular stock replenishment and fresh produce every alternate day.
• Inventory management: Use of Solink to prevent POS employee theft , audit shelves for stock levels, and detect any irregular activities in real time.
• Security measures: Enhanced surveillance with Solink Video Alarms Monitoring Service .
• Management team: A store manager backed by a decade of retail experience, along with two assistant managers.
• Staff structure: A team of 40 which includes cashiers, stockers, bakery and deli staff, and customer service representatives.
• Training paradigm: Monthly training on product knowledge, customer service etiquette, and safety measures.
• Initial investment: Estimated at $1.5 million, covering franchising fees, store setup, and initial inventory.
• Ongoing expenses: Monthly costs projected at $200,000, which includes salaries, utilities, rent, and inventory purchases.
• Revenue estimates: Anticipated monthly revenue of $750,000, with the goal of achieving a break-even point by the seventh month.

“Buy Right” holds the potential to redefine grocery shopping in the Maple Street area by offering a comprehensive selection in a customer-friendly environment. The added advantage of Solink ensures security, streamlined operations , and valuable insights. With this robust plan, “Buy Right” is geared to flourish in the competitive grocery market.

Business plan example 3: "Green Groves", an eco-friendly store

This is the third retail business plan example. It is a unique concept store focusing on the green market. The business operates as an eco-friendly, zero waste store catering to environmentally conscious consumers.

In a world grappling with environmental issues, sustainable solutions are at the forefront of consumer choices. “Green Groves” aspires to be a game-changer in retail by offering an eco-friendly zero waste shopping experience. With the integration of Solink’s capabilities, security and insightful business analysis will be assured.

• Business ethos: “Green Groves” will pioneer a zero waste, packaging-free retail environment.
• Strategic spot: Positioned in the heart of EcoVille, a community known for its green initiatives.
• Objective: To nurture a sustainable shopping culture and diminish the carbon footprint of retail.
• Store design: A 5,000 sqft open-plan store, equipped with bulk bins, refill stations, and reusable container displays.
• Business form: Operates as a sole proprietorship, with strong ties to local organic farmers and ethical suppliers.
• Store features: Apart from bulk goods, there’s a section for sustainable living products like bamboo toothbrushes, metal straws, and cloth bags.
• Eco trend: A 7% yearly increase in consumers seeking sustainable shopping options.
• Target demographic: Segment 1: Eco-conscious families (45%); Segment 2: Millennials and Gen-Z (40%); Segment 3: Sustainable lifestyle adopters (15%).
• Rivals: Two health stores in the vicinity, but none offer a complete zero waste experience.
• Goods galore: A range of organic foods, personal care items, household cleaning products, all sold without packaging.
• Eco tools: Reusable containers for sale and rent, ensuring customers can shop even if they forget theirs.
• Tech integration: Solink will monitor the POS , preventing operational shrink, and will provide insights on consumer purchase patterns.
• Eco-campaigns: Monthly workshops on sustainable living, zero waste challenges, and rewards for consistent zero waste shoppers.
• Loyalty perks: “Sustain & Save” program, targeting a 12% hike in repeat customers within the initial year.
• Revenue forecast: Expecting an average daily footfall of 200 customers, with an average spend of $30.
• Supply chain: Direct collaborations with organic farmers and ethical product makers, ensuring fresh stock and product authenticity.
• Stock management: Remote video monitoring of the store and stockroom will help keep the right amount of inventory available for purchase.
• Safety and security: Enhanced by Solink’s surveillance capabilities, ensuring a safe and theft-free shopping environment.
• Lead team: Store manager with a passion for sustainable living, backed by a degree in environmental studies.
• Crew composition: A mix of 10 full-time and part-time staff members, including stockers, cashiers, and a dedicated person for customer education on zero waste.
• Kick-off capital: An estimated $250,000, which includes store setup, initial inventory, and marketing efforts.
• Recurring costs: Monthly operational expenses estimated at $30,000, covering salaries, rent, utilities, and stock replenishments.

“Green Groves” stands out as a beacon for sustainable shopping in EcoVille. With Solink in its arsenal, the store is not only set to offer a secure and streamlined shopping experience but also a data-driven approach to meet consumer demands effectively. This venture promises not just profitability but also a positive impact on the planet.

Add Solink to your retail business plan

In the evolving retail landscape, having a robust business plan is only the beginning. The real differentiator lies in harnessing cutting-edge tools that optimize operations, enhance security, and provide actionable insights. Solink stands out as a transformative solution in this realm. 

By integrating Solink into your retail strategy, businesses are not merely investing in surveillance but in a comprehensive tool that brings loss prevention, advanced security, and invaluable business insights to the fore. 

As demonstrated with “Green Groves”, a store with a vision, the marriage of sustainability and technology can create a retail environment that’s both profitable and in tune with modern needs. For any retailer crafting or refining their business plan, Solink isn’t just an option; it’s a forward-thinking imperative.

To see why Solink should be part of every retail business plan, sign up for a demo today.

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Retail Pharmacy Business Plan Template & Guidebook

Starting a pharmacy business can be a daunting task, but with the right plan and guidance, it can be a great opportunity to provide quality healthcare services to customers. The #1 Retail Pharmacy Business Plan Template & Guidebook provides a comprehensive template and step-by-step guide to help entrepreneurs create an effective business plan and accurately assess the financial viability of their pharmacy business. Learn how this invaluable document can help take your retail pharmacy business to the next level.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Retail Pharmacy Business [11 Steps]

How to Write a Retail Pharmacy Business Plan in 7 Steps:

1. describe the purpose of your retail pharmacy business..

The first step to writing your business plan is to describe the purpose of your retail pharmacy business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a retail pharmacy business:

Our mission is to provide our customers with an exceptional experience in the retail pharmacy, comprised of personalized and accessible care from knowledgeable and compassionate staff combined with a wide range of products and services tailored to a variety of needs.

2. Products & Services Offered by Your Retail Pharmacy Business.

The next step is to outline your products and services for your retail pharmacy business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your retail pharmacy business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your retail pharmacy business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your retail pharmacy business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a retail pharmacy business?

In order to run a retail pharmacy business, the following equipment, supplies and permits are needed:

• Medical Supplies and Equipment
• Computers and Point of Sale System
• Pharmacy Software
• Licensing and Permits from State & Federal Agencies
• Business Licensing
• Safety Supplies
• Adequate Insurance Coverage

5. Management & Organization of Your Retail Pharmacy Business.

The second part of your retail pharmacy business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your retail pharmacy business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Retail Pharmacy Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a retail pharmacy business varies based on many different variables, but below are a few different types of startup costs for a retail pharmacy business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your retail pharmacy business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your retail pharmacy business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your retail pharmacy business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Retail Pharmacy Business Plans:

Why do you need a business plan for a retail pharmacy business.

A business plan for a retail pharmacy business is essential for the success of the business. It outlines the goals and objectives of the business, provides a road map of how the pharmacy will operate, and helps to identify any potential risks associated with running a retail pharmacy. The plan also helps to identify key personnel, define financial requirements and develop sales and marketing strategies. Additionally, it helps to establish short-term and long-term objectives and provides clarity regarding how profits will be used to grow the business.

Who should you ask for help with your retail pharmacy business plan?

You should ask a business consultant, an accountant or financial advisor, or a business plan writer for help with your retail pharmacy business plan.

Can you write a retail pharmacy business plan yourself?

Writing a business plan requires research, development and the ability to write an effective business plan. It is recommended that those wishing to create a business plan for a retail pharmacy should seek professional help from experienced business plan writers, who are familiar with the pharmacy industry and can provide comprehensive and tailored guidance. Additionally, there are online resources and templates available to help guide you through the process of creating a business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

The Ultimate Guide to Product Marketing in 2023

Learn about the power of product marketing, how it can help your bottom line, and impact the success of your products.

THE ULTIMATE PRODUCT MARKETING GO-TO-MARKET KIT

Ensure that your whole team is aligned with four planning and internal enablement templates for your next product launch.

Updated: 02/02/23

Published: 02/02/23

Product marketing is essential, even if you only sell one or two products at your organization.

But what is product marketing ? How do you market a product, and how does that differ from conventional marketing strategies? Let’s find out.

What Is Product Marketing?

Why Is Product Marketing Important?

Product Marketing Duties

Product Marketing Strategy

Product marketing examples, what is product marketing.

Product marketing is the process of bringing a product to market, promoting it, and selling it to a customer. Product marketing involves understanding the product’s target audience and using strategic positioning and messaging to boost revenue and demand for the product.

What makes product marketing unique? How is it different from conventional marketing? Let's unpack the differences.

Product Marketing vs. Conventional Marketing

Product marketing is strategic whereas conventional marketing is all-encompassing.

Product marketing is considered a component of conventional marketing. In fact, if you look at the seven Ps of marketing , you’ll see product marketing is one of the most important aspects of a business’s marketing efforts.

Free Product Go-to-Market Kit

Free templates to ensure that your whole team is aligned for your next product launch.

• Product Launch Template
• Product Roadmap Template
• Sales Plan Template

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Click this link to access this resource at any time.

Product Marketing Go-to-Market Kit

Fill out this form to access your free kit..

Product marketing is about understanding a specific product’s audience deeply and developing that product’s positioning and messaging to appeal to that audience. It covers the launch and execution side of a product in addition to the marketing strategy for the product — which is why the work of a product marketer lies at the center of a business’s marketing, sales, and product teams.

Conventional marketing is focused on broader topics under the umbrella of marketing, such as lead generation, SEO, and anything related to acquiring and converting new leads and customers . It’s about promoting the company and brand as a whole, including the products sold. These marketers make sure there’s a consistent, on-brand message behind all of the company’s content.

To understand it better, let’s look at product marketing goals.

Product Marketing Goals

Product marketing is focused on driving demand for and adoption of a product among existing customers. It’s focused on the steps people take to purchase your product so product marketers can build campaigns to support this work.

Usually, product marketing is executed with several goals in mind:

1. Understand your customers better.

When you implement a product marketing strategy, your target audience can see the value of having that specific product in their lives. Understanding how many customers gravitate to your product lets you conduct customer research.

2. Target your buyer personas effectively.

Alongside understanding your customers, you can figure out the type of buyer persona to target in the future. Knowing the exact needs of your target can help you when innovating your product to better suit their needs. Creating a value proposition can help with this. 

3. Learn about your competitors (products and marketing tactics).

When you market your product, you can compare your strategy and results to your competitors. What features and benefits of their products make a statement within the market? What ideas haven’t they explored? What does their product offer that yours doesn’t? You can use this research to your advantage when crafting your product marketing strategy.

4. Ensure the marketing, product, and sales teams are all on the same page.

Making your product offering abundantly clear for buyers and employees is mutually beneficial. Every team working together in your business can better understand the product's purpose and better communicate that in their operations.

5. Position the product appropriately in the market.

In product marketing, you want your product, brand image, and tone consistent and evoke the right feelings intended for your audience. When you brainstorm your brand positioning , some questions to consider are:

Is this product suitable for today’s market?

How is this product different from our competitors'?

Can we further differentiate this product from our competitors' offerings?

Are there any products we’ve sold in the past that we wouldn’t market or sell again? If so, why not?

6. Boost revenue and improve sales.

There are also questions you, as a product marketer, will have to ask yourself and reflect on regarding your product. Asking yourself these questions will help you ensure your product is successful among customers.

Is this product appropriate for our customers today?

How is this product unique from similar products of our competitors?

Is there a way to further differentiate this product from our competitors? 

Are there any products we’ve sold in the past that we wouldn’t market or sell ever again now that we look back? If so, why not?

As you can see, product marketing requires you to look at your products strategically to ensure they’re successful among customers in your current market.

Why is product marketing essential?

Product marketing is a critical part of any business’s marketing strategy. Without it, your product won’t achieve its maximum potential among your target audience.

To illustrate its importance, let’s look at an example of successful product marketing. During the 1950s, Volkswagen sold a bus. Although now considered a classic vehicle, the bus remains an icon for the car company decades later.

The cool part? Volkswagen announced their new VW Bus — it’s electric and features sleek, modern styling. Volkswagen’s marketing for the vehicle is eye-catching, unique, and fun, and it complements the original “hippie” vibe the company was once known for.

Image Source

Volkswagen also released a TV commercial for the bus that’s clever, minimalist, and on-brand. It introduces the new vehicle with the song The Sound of Silence playing in the background (hint: electric cars are silent) and ends with a short message on the screen for viewers to read: “Introducing a new era of electric driving.”

This sentiment touches on the fact Volkswagen is contributing to society’s interest in electric, eco-friendly vehicles. It also relates to this being a new era for the bus.

This is why product marketing is important: Because it highlights not the company but the product itself, ensuring longevity in the market.

But who works on this type of marketing? Who helps create content that excites consumers about new and updated products, like the Volkswagen bus? Who encourages consumers to buy? Product marketers.

Now, let’s take a look at the specific responsibilities that product marketers (or product marketing managers) face in their typical day.

Product Marketing Responsibilities

• Identify the buyer personas and target audience for your product.
• Successfully create and carry out your product marketing strategy.
• Work with and enable sales to attract the right customers for your new product.
• Determine your product’s positioning in the market.
• Ensure the product meets the needs of your target audience.
• Keep your product relevant over time.

Your responsibilities as a product marketer may vary slightly based on industry, company, products, and company size and resources. If you’re working for a startup, you may be a product marketer who also helps create the content the broader marketing team produces due to limited resources and budget. As the business grows, you may move onto a team whose sole job is product marketing.

Let’s take a look at six common product marketing responsibilities.

1. Identify the buyer personas and target audience for your product.

You must identify the buyer personas and audience for your product so you can target customers in a convincing way that makes them want to purchase. This will allow you to tailor your product and its features to solve your audience's challenges.

Pro tip: Use templates to create buyer personas for your business. A tangible outline of whom you’re catering to can help align different teams in your business and better position your product in the marketplace.

2. Successfully create, manage and carry out your product marketing strategy.

A product marketing strategy (which we’ll review shortly) allows you to create, build, and execute content and campaigns — this supports the steps that will lead your buyer personas and customers to make a purchase.

3. Work with and enable sales to attract customers for your new product.

As a product marketer, you have to mamusta direct relationship with sales. You’ll work with sales to identify and attract the right customers for the product at hand and provide sales enablement materials to reps to ensure they understand the product inside and out, along with its features.

This way, you and your teams are on the same page in termregarding being shared with customers, allowing you to provide a consistent, on-brand experience for anyone who comes in contact with the product.

4. Determine your product’s positioning in the market.

One of the most important parts of your job is determining the product’s positioning in the market. Think about this process in terms of storytelling — your positioning requires you to create and tell the story of your product.

As a product marketer, you’ll work with the broader marketing team and the product team to tell this story by answering critical questions like:

Why was this product made?

Whom is this product made for?

What challenges does this product resolve?

What makes this product unique?

5. Ensure your product meets the needs of your target audience.

You must also make sure your product meets the needs of your customers and target audience. Through the research to determine your buyer persona and target audience, you should have uncovered the pain points and challenges you’re working to solve with your product.

If your product doesn’t meet your customers' needs, they’ll have no reason to make the purchase or choose your product over your competitor’s.

6. Keep your product relevant over time.

Your product needs to stay relevant over time. As needs, expectations, and challenges change and evolve, it’s your job to ensure your product marketing strategy and the products themselves remain relevant among customers.

This means you may have to manage slight changes in your product marketing strategy (which we’ll discuss next) or updates and modifications to the product itself (you’ll likely work with the product team, which creates the effect, to do this).

7. Guide marketing strategies for new products.

In product marketing, you'll need to pay close attention to what worked in your strategy and what didn't so you can better plan marketing strategies for new and future custom products . Pay attention to where your audience is and what they are looking for. What channels got the most traction and led to more converted leads?

All this information and more should be applied to marketing strategies for new products.

Your product marketing strategy serves to guide the positioning, pricing, and promotion of your new product. It helps you take your product from development to launch and informs what new audience(s) and markets to which to launch and market your product.

Now, let’s take a look at five steps that can help you optimize your product marketing strategy.

1. Define your product’s target audience and buyer personas.

As a product marketer, one of the main roles you have is to define a specific target audience and create buyer personas for the product being sold (different products will likely have different target audiences). This is the first step to marketing your product.

By understanding your customers and their needs, challenges, and pain points, you’ll be able to end that all aspects of your product marketing strategy (as in the rest of the steps we’ll define below) are tailored to that target customer and persona. This way, the product and the marketing content created for the product will resonate with your audience.

2. Determine the positioning and messaging to set your product apart.

After your customer research and learning about your audience, you’ll have identified their needs, challenges, and pain points. From here, you can think about how to highlight the ways your product resolves those challenges for your customers.

However, that doesn't necessarily mean you’ve differentiated yourself from your competitors. After all, they are your competitors because they solve your customers' needs in a similar way to your company.

The key to setting your product apart is positioning (which we touched on earlier ) and messaging . Positioning answers key questions your customers might have about your product and what makes it unique and then turns those answers into the main points behind your product’s marketing strategy.

It’s your job as the product marketer to ensure your customers and audience know the answers to these questions and don't have to dig around for (or make assumptions about) them.

Examples of questions you’ll need to answer to develop your product’s positioning and messaging include the following:

What specifically makes our product unique?

Why is our product better than our competitors’?

Why are our product’s features ideal for our target audience?

What will our customers get out of our product that they cannot get from our competitors’ products?

Why should our customers trust and invest in us and our product?

Once you’ve answered these questions, you can compile these responses into one impactful and shareable statement that captures your positioning and messaging. To do this, follow these steps:

Turn the answers to the positioning and messaging questions into an elevator pitch .

Use action words to excite your customers.

Ensure the tone of your statement captures the style of your brand.

Focus on the benefit of your product as a whole (not just one specific feature).

Pro Tip: As product marketers, you should ensure the sales, product, and (the broader) marketing teams are also aware of your positioning and messaging around the product so they, too, can communicate the same information to prospects and current customers.

This allows you to ensure the entire company is consistent in the content and information they share about your product. Additionally, you can provide this information to your support team if you think it’s necessary, as they may be fielding support calls and working with your customers who’ve already invested in the product.

3. Set goals for your product.

Next, you’ll want to set goals for your product. These will vary based on your specific product, the type of company you work for, your overall marketing goals, and more — your goals will be specific to your business and situation. However, let’s review some common goals product marketers aim to achieve:

Increase revenue

Engage with customers

Improve market share

Gain customers from competitors

Boost brand recognition

Pro Tip: Feel free to combine several goals or choose one to focus on — every company and product will have different plans. The key is ensuring you view and set these targets in the SMART goal format, meaning they’re specific, measurable, attainable, realistic, and time-bound.

Use a free template to help you create and achieve your SMART goals.

4. Price your product.

As a product marketer, you’ll also have to contribute to the discussion of the price of your product . Depending on your company, you might work with other teams on this part of the strategy, or it might be a job just for you and your fellow product marketers. Either way, you can consider competitive vs. value-based pricing.

Competitive vs. Value-Based Product Pricing

Competitive pricing means you’re basing your product’s price off similar products your competitors sell. It’s ideal for companies that have an effect similar to one that several other companies sell.

Suppose you believe your unique features warrant a significantly higher price e of your competitors’. In that case, you might price your product above the other similar products on the market. An excellent way to evaluate the fairness of the pricing of all of your competitors is by studying financial reports and industry trends.

Value-based pricing allows you to maximize your profit, although it’s a bit more time-consuming to establish in comparison to competitive pricing. It’s ideal for companies selling a product with very few competitors on the market or one with exceptionally new and unique features.

Value-based pricing quantifies your item’s value in a way your customer can relate to their profitability. It allows you to base your product’s price on its value for your customer rather than whatever the market, industry trends, and your competitors say.

5. Launch your product.

Now it’s time for the most impoessentialt of your role as a product marketer — not to mention, the most exciting: the launch of the product you’ve been marketing.

There are two main parts to the launch to focus on as a product marketer: the internal launch (what goes on within your company upon product launch) and the external launch (what goes on outside of your company, with customers and audience members, upon product launch).

Internal Aspects of a Product Launch

As previously stated, your job as a product marketer entails ensuring the entire organization is on the same page about your product. This way, your customers only receive consistent and accurate details about the product.

The marketing, product, and sales teams at your company should be aware of the following information:

The product’s benefits

Any available product demo information

Sales training opportunities on your product and details about how it’s used

What the positioning and messaging looks like

Who your buyer personas, and ideal customers are

What the goals for your product include

What your product’s features are

The pricing of your product

How your product is being launched to customers

Now, you might be wondering how to provide this information to marketing, product, and sales. Which channels are ideal for sharing these details with your fellow employees?

Here are a few examples of ways to do this:

Sales enablement kit (ideal for sales)

Presentation (ideal for the broader marketing department and product)

Knowledge base (ideal for support)

External Aspects of a Product Launch

Externally, there are many ways to market your product launch so your current base of customers, prospects, and target audience learn about whatever it is you’re selling.

First, determine where you’re going to focus your product marketing efforts. Here are some examples of channels and places to do this (you might choose several of these or just one to focus on depending on your needs, goals, and resources).

Social media

Product launch event

Website landing page

Exclusive product preview (prior to the official launch)

Promotional event/ campaign (in-person and/ or online)

On whatever channel you choose to focus your product launch marketing efforts, you should include relevant product information ( focused on your positioning and messaging ) so prospects and customers can learn all about your product and why they need it. This includes your product’s features, what makes it unique, pricing, demos for customers, training for customers, and any other materials you’ve created and want to share.

Congrats! You’ve just worked through the steps to marketing a product. Remember, this process is one that should be thought about and updated as your products change and evolve so they remain relevant among your customers. (This shouldn’t be an issue as long as you have a member of your team focused on product marketing, considering it’s one of their main responsibilities.)

Now that you know how to create a product marketing strategy, how do you market a product across your channels? Let’s take a look.

How to Market a Product

• Create a product marketing deck for other marketing teams.
• Publish product-focused content on your blog.
• Insert product mentions naturally in your existing marketing collateral.
• Try comarketing with a similar brand.
• Launch PPC ads and bid on your and competitors’ keywords.
• Focus on the benefits, not the features.

1. Create a product marketing deck for other marketing teams.

Non-product marketers — i.e, social media marketers and content marketers — won’t have the full know-how on your product, impeding them from marketing it properly on customer-facing channels. As a product marketer, your job isn’t necessarily to execute marketing campaigns or write content. Instead, your job is to enable specialized teams — such as your social media and content team — to market your company’s products effectively.

The first step is to provide a deck, presentation, or document that outlines your product marketing strategy to other marketers. That way, when it’s time to execute on a strategy, they know the positioning they are aiming for, the wording they are to use, and the personas they are targeting.

2. Publish product-focused content on your blog.

A blog is primarily a place to attract inbound leads. Rather than trying to hammer them with information about your product, you might write content that helps them solve an issue instead, and then offer them a free guide or ebook to help them further.

But did you know that your team can publish content that attracts inbound leads and encourages purchases and sign-ups? At HubSpot, we call this product-focused content. It’s just as helpful as our other content, but with a critical difference: It has a call-to-action to try one of HubSpot’s products.

For instance, our blog post, What is a CMS and Why Should You Care? , aims to inform readers about content management systems, but then includes a call-to-action to try CMS Hub .

While the blog post is still informative and not overtly promotional, it still promotes one of our products. In the same way, you or your content team can write helpful content for your readers, help them the inbound way, and still encourage customers to try your offerings.

3. Insert product mentions naturally in your existing marketing collateral.

If you’ve had a longstanding marketing strategy prior to beginning product marketing, we have good news: You can retroactively market your product in existing collateral. For instance, if you already have an expansive library of blog posts, you can update them with information about your products (so long as the mention is natural).

Recent social media posts can also be candidates for an update, and your website content should also change to show your brand new product. Internal links from related pages can help drive traffic to your new product pages.

In addition, if your marketing team has created marketing offers in the past, you can have them update the offer and add a call-to-action to try your newest product — like in this example from HubSpot’s Case Study Templates offer , where we prompt users to try CMS Hub.

4. Try comarketing with a similar brand.

Comarketing is an excellent way to market your product to a related audience. You can do something as simple as filming a video together, writing a collaborative blog post, posting on each other’s social channels, or running a webinar.

Your product should be an excellent match for the other company’s customers. Ideally, both of your products can be used in conjunction and not compete directly. For instance, Ankor Software and HubSpot partnered for a webinar, but Ankor Software doesn’t compete with HubSpot CRM — it complements it.

5. Launch PPC ads and bid on your and competitors’ keywords.

Pay-per-click (PPC) is an essential product marketing tactic. While content and social media marketing can help you attract inbound leads, you can get the attention of even more potential customers by posting PPC ads on search engines.

When setting up your PPC campaign, bid not only on general product keywords (such as “crm software” or “[insert category]”), but on your own branded terms and your competition’s as well. That way, customers who are considering purchasing the same product from a competitor will consider you as an alternative.

6. Focus on the benefits, not the features.

Regardless of the channel or platform you’re promoting your product on, highlight the benefits customers will experience, not the features of your product. Not only can features feel jargony (like “Customizable attribution models” or “Automated contact workflows”), but they shroud the benefits and alienate non-technical customers.

Try, instead, leading with the benefits, such as “Know where exactly your leads come from” or “Save time by automating tasks using contact workflows.” For instance, on the Marketing Hub page, the features snapshot reads:

“ Attract visitors through blogging, social media, ads, and more. Convert visitors into customers with landing pages, email, marketing automation, ABM, and more. Track ROI with revenue attribution reporting. All powered by the customer data in your CRM to enable personalization at scale .”

Using benefit-first language will engage customers and prompt them to try your products. The “how” of the benefit — such as features or functionalities — come after.

Let's review four real-life examples of stellar product marketing.

Apple is a household name for leading technology products and software. Not only are its products gorgeously well-designed; it’s also super useful. But Apple's product marketing doesn't focus on the many product features — it markets the user benefits.

Apple doesn't simply list the impressive features of their products; the brand uses those features to tell consumers who they could be and how they could work if they have those products. Apple tells a narrative using its products and encourages people to buy in the process.

Billie is a women's razor brand. In a highly competitive market, Billie has helped its products stand out. How? It established a sharp competitive edge (no pun intended) by doing what no razor brand had done before — show body hair in its advertising.

Not only did this advertising approach get Billie's audience talking about the brand, but they also appreciated the brand's accurate portrayal of women's bodies and body hair. These differentiators were more than enough to set Billie apart from other razor brands and products.

3. Pepsi Cola

As a brand, Pepsi has positioned itself as one with youthful energy and excitement, and this can be seen consistently through its product marketing campaigns.

Pepsi's customers are mainly aged between 13 and 35 years old with modern and active lifestyles, so it only makes sense to hire popular celebrities like Doja Cat for a commercial in a homecoming tailgate.

Through highly targeted positioning, repetitive advertising, and consistent branding, Pepsi has become a truly global household name and product.

4. MailChimp

There are dozens of email marketing tools on the market, but MailChimp hasn't been fazed by competition. In fact, the company has risen above its competition by positioning itself as more than an email marketing tool: it's an all-in-one marketing platform that helps businesses grow.

Like Apple, MailChimp primarily highlights its benefits for the end-user, not just its product features. A recent rebranding and site redesign further drives this narrative home.

Start Marketing Your Products

Product marketing is the process through which a company brings a product to market. Being a product marketer (or product marketing manager) means you’re at the center of your company’s marketing, sales, and product teams.

You’re an integral part to the success of your product, as you create and manage your product’s specific marketing strategy, but you also serve as a liaison between all three of these departments, ensuring everyone is on the same page with your product, it’s features, capabilities, and more. So, start developing your latest product’s marketing strategy to ensure it’s a success among your target audience and customers.

This post was originally published in February 2020 and has been updated for comprehensiveness.

Don't forget to share this post!

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How to Write a Great Retail Business Plan for Your Store

• Growth Strategies

Every successful business has a strong retail business plan. It’s one of the first things many investors and donors ask for when inquiring about your business. Why, you ask? That’s because a business plan details your business’ short- and long-term goals, and lists the steps and financial requirements necessary to achieve those goals.

To help you get started, we’ve outlined what you should include in your retail business plan. If you follow these tips, you’ll be well on your way to creating a strong foundation for a viable retail business.

A retail POS system that grows with your business.

We’re with you from Square one to whatever’s next.

Provide a company description

Your company description is one of the most important aspects of your retail business plan. This section should reflect how you want people to envision your business. It should include the logo, concept, ownership and business structure, design, and layout. Think of a retail shop that you enjoy. What is it about that business’s logo, concept, and design that stands out to you?

Include information from target market and industry analysis

A retail market analysis is a deep look at your industry, competition, and geography. All of these things need to be defined in your retail business plan in order for investors to have a full picture of what your particular brand is and how it fits into the overall retail puzzle.

Target market and customer analysis: You’ve probably heard business owners say they want to target anyone interested in their brand. However, defining your target market makes it much easier for you to see who your audience is and how to best market your company to that audience. When researching and analysing your target market and customer base, it’s important to figure out the characteristics of your ideal customer. From there, dig deeper to determine your ideal customer’s age, location, gender, income and education levels, marital status, and more.

Industry analysis and industry segment: An industry analysis is a qualitative and quantitative assessment of your retail market. It looks at upcoming trends in retail, what’s selling and what’s not, and more. Once you know the state of the overall industry, break it down a bit further. What trends are you seeing for specific products and categories? Whether it’s selling via social media or offering buy now pay later (BNPL) at checkout, show your investors how you intend to maximise profits.

Bring in more business with buy now, pay later.

Offering Clearpay as a BNPL (buy now, pay later) payment option can help boost your sales and attract valuable customers — at no risk to your business.

Competitor analysis: You need to take a deep look at how your competitors fit into the puzzle. When analysing your retail market and location, research which of your competitors has the biggest market share, how close competitor retailers are to your location, and what advantages your brand has over the competition.

SWOT analysis: The last thing to check out is your SWOT analysis , which looks at strengths, weaknesses, opportunities your brand can capitalise on, and threats from tough competition. When you add SWOT to your retail business plan, you can identify and focus on your strengths so you can minimise weakness and stand out from your competition.

Explain your products

This is where the fun begins. Everyone, especially investors, wants to know exactly what they can buy at your store. In your retail business plan, you want to be as detailed as possible about the items you’ll be selling.

If it’s clothes, include whether there will be tops, trousers, and/or shoes. Will customers be able to purchase accessories there? What sizes will you carry? What about plus sizes? Here is where you want to show your vision for your retail shop and feed the imagination with vivid descriptions of what your products will look and feel like.

Additionally, you should include information about your supplier and any contracts you need to have with suppliers to keep your shelves full. Will your items be made overseas or in the UK? How will you manage inventory? What will happen to the items you don’t sell? You should also detail your pricing strategy: how much will items cost? Will there be regular sales? How much will your sales be?

Address operational needs

Thinking about how to run your business is an important aspect when first starting out. Therefore, it’s important to assess various retail operations and determine a custom strategy for your business.

Supply chain : This is part of inventory management. Making sure that your supply chain runs smoothly is the best way to ensure profits. Include how you’ll control and oversee ordering inventory, store that inventory, and control the amount of product for sale. This helps to ensure you never run out of product or overpay for it.

Merchandising: You need a merchandising plan to show how you’ll plan, buy, and sell your products to maximise your return on investment while meeting market demands.

Technology: How will you complete transactions? One way to streamline everything from sales and inventory to orders and customer directory is through Square for Retail. Square for Retail allows you to keep track of every aspect of your business in a way that helps optimise business profitability.

Create an organisational structure

If you’re going to run a successful business, investors will want to know its legal structure. Will you operate as a sole trader , partnership or a limited company? Choosing a business entity determines how you declare your business taxes each year, which affects your earnings and profits.

Additionally, you need to include how many team members your retail shop employs. Who will serve on the management team? Who will work under the managers? How will this play into the overall structure of your company? When you’re thinking about your team, technology such as Square for Retail can help make life much easier. You can integrate your POS system to centralise payments and sync calendars. You’ll be able to consolidate customer information in one place, in the event you want to market promotions or sales directly to them via email.

Assess marketing

Here is where we start getting into the nitty gritty of your retail marketing strategy. You want to include a positioning statement, which explains how you want the outside world to perceive your brand. For your positioning statement, write a description of how your retail shop differs from others, how customers will enjoy your brand differently than that of competitors, the category in which your brand competes, and any compelling reasons why your target audience should have confidence in your claims.

Additionally, you want to include which channels you’ll use to open your business and which channels you’ll continue to use to promote your business. This can include digital channels such as a website , social media platforms , as well as rewards and loyalty programmes .

Provide a financial plan

Your financial plan helps investors understand how your business will make money to achieve its strategic goals and objectives. For your retail shop, you need to conduct a financial analysis and analyse your startup costs, funding options, break-even point, and projected profit and loss. Using these plus a cash flow analysis benefits your financial plan, as well.

When analysing your startup costs, you should look at everything it takes to run your business. That includes everything from the products you sell in your store to the technology you use to build and maintain your store’s website and point of sale. Investors need to know how much money your retail store will cost up front, and how long it will take for them to see a return on their investment.

Another important area to look at is your break-even analysis . Investors will want to see this breakdown. Essentially, the break-even analysis is a look at how much revenue you need to justify how much you’re spending.

Running a business is no easy feat, but Square is here to help. We have all the tools you need to start, run, and grow your business, whether you’re selling in person, online, or both. And we’ve made all our tools to work together as one system, saving you time and money — and making decisions easier. So you can get back to doing the work you love and focusing on whatever’s next. See how Square works .

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BAT: Zero tolerance for selling tobacco products and e-cigarettes to minors

BAT, in partnership with the National Authority for Consumer Protection (ANPC), is launching its annual “Choose Responsiblly a Clean Commercial Behaviour” Campaign this month. The initiative aims at informing and raising awareness about on the importance of complying with the legislation for preventing minors` access to tobacco and nicotine products. This year, the legislation has been significantly adjusted to prevent the risk of minors having access such products. This includes the extension of the ban on the selling of e-cigarettes to minors, regardless of whether they contain nicotine or not and the ban on the sale of tobacco and nicotine products through vending machines.

BAT`s initiative, which aims to promote the legislative updates and highlight the importance of zero tolerance towards the sale of nicotine products to minors, is developed at national scale in approximately 32,000 partner retail stores, as well as in outdoor public spaces in the centre of Bucharest.

Romania is one of the first countries in the European Union to implement a ban on the sale to minors of all forms of products containing tobacco and nicotine, including nicotine-free e-cigarettes.

“As Vice President of ANPC, I am glad to continue this campaign together in 2024, aiming to inform the public about the legal provisions regarding the sale of tobacco and nicotine products exclusively to adults. We are committed to monitoring legal compliance and encourage anyone who identifies law infrigements to report them to the ANPC telephone line,” said Sebastian Hotca, ANPC Vice President.  

Circularity in Action, the road Romania must take to become sustainable

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BAT DBS Romania Hub: A Vibrant New Office For An Employee-Centric Company

BAT Romania launches new invitation for partnership for sustainability

BAT achieves Global Top Employer certification, a distinction bestowed on only 15 companies...

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Dr. Max reports 20% revenue growth, continues EU market expansion

EIB Group at IMF/World Bank Spring Meetings: Fostering the EU’s role as strong and reliable global partner

CIRCULARIO packs its bags and goes international at the World Circular Economy Forum 2024

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Retailers close the loop on creating a circular retail economy

The future of retail is circular . A circular economy, according to the Ellen MacArthur Foundation , requires eliminating waste and pollution, regenerating nature, and keeping products and materials circulating through the economy at their highest and best use. It means reusing, repairing, repurposing and reselling products multiple times and recycling them into their component parts when they are no longer useful. It means redesigning products to be more durable and made from recycled and other environmentally preferable materials that are easily recycled or composted when they are no longer useful.

Like the early days of the internet and ecommerce, the early tools and business models that will power the circular economy are still being created. They are discussed in meetings like the invitation-only NRF Circularity Workshop for retail executives held during NRF 2024: Retail’s Big Show , at Reverse Logistics Association events, in a recent two-day Ikea “ One Home, One Planet ” meeting and in other ongoing conversations. Retailers are busy building their part of the circular economy.

The two aspects of the circular economy most familiar to U.S. consumers are resale (buying and selling used products) and recycling, described in greater detail below. Other circular retail practices include redesigning products to be more durable, selling more sustainable products , offering repair and refurbishing services, integrating refillable and reusable product packaging and renting products rather than selling them.

Everything that happens after a consumer buys a product is an aspect of reverse logistics. The reverse logistics industry manages how returned products are evaluated, repaired or refurbished, repackaged, resold, donated, reused or recycled. Members of the Reverse Logistics Association create financially viable ways to ensure products that are no longer wanted retain their useful value, either as products to be used by others or as materials that can be recycled and made into new products. NRF acquired the RLA in September 2023.

Product resale

Eileen Fisher launched its resale program in 2009, selling gently worn Eileen Fisher products on its website. Patagonia , which had been selling select used products in-store even earlier, launched its online Worn Wear resale program in 2017. There are now around 160 fashion brands selling slightly worn or “previously loved” products including brands like Neiman Marcus , Coach and Levi Strauss & Co. Three dozen brands launched resale programs in 2023, including American Eagle , H&M, J.Crew and Kate Spade .

Resale retail is now one of the fastest growing segments of the retail industry. ThredUp’s 2024 Resale Report shows secondhand apparel sales growing 15 times faster than the broader retail clothing sector. It estimates that secondhand apparel sales were $197 billion in 2023 and projects that they will hit $350 billion by 2028.

Resale is not limited to apparel. Some Ikea locations now buy back used Ikea furniture for resale at Ikea stores. Retailers like Staples , Walmart and Target offer gift cards or store credit in exchange for returning select electronics to the store or through online programs. Returned electronics are evaluated for potential refurbishment, repackaging and resale or proper recycling.

There are franchise retailers that specialize in buying and reselling gently used products, including Once Upon a Child , Plato’s Closet and Play It Again Sports . Half Price Books has been selling used books, music and collectibles since 1972. Nonprofit organizations like Goodwill have been selling donated products to create jobs, provide job training and make more affordable products available to those in need for more than 100 years.

The world’s largest retailers are currently scaling their resale programs. Both Walmart and Amazon sell a wide variety of used products online. At Walmart Restored , consumers can buy refurbished televisions, computers, phones and other restored electronics items and both large and small appliances including refrigerators, vacuum cleaners and outdoor equipment. Products come with a 90-day return option and at least a one-year warrantee. Walmart also has a dedicated portion of its website for pre-owned clothing and fashion accessories , including bags, jewelry and watches.

Amazon sells new, used and reconditioned products. Amazon Renewed sells products that have been professionally inspected, tested and cleaned by Amazon-qualified suppliers. The Amazon Devices Pre-Owned program refurbishes and sells Amazon devices like Kindles, Fire televisions and tablets, Ring video doorbells, Echo and Alexa products. Products sold through Amazon Renewed are tested for quality and graded for aesthetics as premium, excellent, good or acceptable. Products come with a 90-day guarantee and additional warrantees depending on the product.

A similar program, Amazon Warehouse , sells an even wider variety of products that were returned by consumers, including furniture, baby products, outdoor grills, automotive products, camping equipment, pet supplies, and grocery products. The products are inspected and graded and can be returned within 30 days. The company also sells “pre-loved” designer bags and accessories on the Amazon Shopbop site .

Product recycling

Staples makes it easy for consumers to recycle more than 50 categories of office equipment and office supplies for free at every Staples location. It built a sophisticated reverse logistics system with a variety of partners that allows it to recycle products like computers, ink cartridges, keyboards, batteries, coffeemakers, flash drives, old pens and more. Staples even recycles used crayons through a program with The Crayon Initiative that sorts them by color, melts them into new crayons and distributes them to art programs at children’s hospitals. Staples Easy Rewards members earn points for recycling that generate savings and other benefits. Amazon collaborated with Staples to help its customers recycle small consumer electronics for free.

Consumers at most Best Buy stores can recycle up to three items per household per day, including televisions, computers, video game consoles, appliances, vacuum cleaners, hair dryers and curling irons. Many products can be recycled for free in-store, although some products require a per-item fee. Best Buy will pick up bulky items for a small haul-away fee for consumers that purchase replacement products at Best Buy or for a higher fee without a purchase. The list of products it will recycle and state-specific recycling information is available on the Best Buy website .

Other retailers also offer recycling programs. H&M has been collecting clothes from any brand at its stores since 2013. Wearable clothes are marketed as secondhand clothing. Others are turned into new products or recycled so the fibers can be used to make new products.

Many retailers collect plastic bags for recycling. Trex, a company that makes outdoor products from recycled plastic, maintains a list of retailers where consumers can return plastic bags. Trex maintains the list because it needs the returned bags as raw materials for its products.

Sephora and Ulta Beauty encourage their consumers to clean and return beauty product containers to its stores so they can be recycled and turned into carpets, pallets, asphalt, new packaging or other uses. Nordstrom, Nordstrom Rack and Nordstrom Local offer a similar beauty product container take-back programs called BEAUTYCYCLE . Multiple Nordstrom and Nordstrom Rack stores also collect clothing for donations or consumers can donate clothing by mail through its Give Back Box program .

Final thoughts

Circularity will become as transformative to the retail industry as the invention of double-entry accounting, the cash register, the delivery truck, the internet and the phone app combined. None of those innovations changed the fundamental retail business model — earning a profit while making it easier for consumers to obtain the products and services they need — but each innovation created new opportunities.

While neither resale nor recycling addresses every aspect of retail circularity, they reflect significant investments to build the tools and business models that will power future circular solutions.

Check out NRF’s industry hub designed to support retailers’ efforts to generate economic value while creating net positive environmental, social and community benefits.

The modern internet was not created overnight. The retail executives who first embraced ecommerce did so before most consumers had computers in their homes and long before cell phones were connected to the internet. They saw opportunities while watching small groups of hackers get excited about communicating through computers and developing protocols to make it easier to do so.

It was the early pioneers solving one problem at a time that made ecommerce possible. The retail pioneers of today are busy building a circular future.

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The rise and fall of Allbirds: The sneaker company whose stock went from IPO darling to trading below $1

• Allbirds was founded in 2015 and soared to prominence with its iconic wool sneaker.
• The company went public in November 2021. Shares rose 90% on the opening day of trading.
• Sales have since slowed significantly. The company reported a 14.7% decline in revenue for 2023.

Allbirds' struggles continue to mount.

The shoemaker reported another quarter of disappointing earnings in March, wrapping up a dismal fiscal year that saw a net loss of $152.5 million.

Then, in April, the company received notice that its stock is at risk of delisting from the Nasdaq exchange for trading below $1 for 30 consecutive days.

Here's a history of Allbirds and how it went from a buzzy sustainable footwear brand worn by tech bros and VCs to a company on the brink.

Tim Brown and Joey Zwillinger cofounded Allbirds in 2015 as a sustainable-footwear company

According to its initial filing with the SEC , Allbirds' mission was to "make better things in a better way, through nature." 

Zwillinger previously worked as a vice president of industrial products at a biotechnology company

Brown's background included serving as the vice-captain of New Zealand's soccer team.

Allbirds roared to life in 2016 with a Kickstarter campaign that hit its $30,000 goal in five days.

The company ended up raising nearly $120,000 to make a wool running shoe designed to make a lighter environmental impact than traditional athletic shoes.

In 2016, Allbirds received B Corp certification, a designation given to companies that work to advance environmental and social causes, and shareholder concerns.

For Allbirds, the designation codified, "how we take into account the impact our actions have on all of our stakeholders, including the environment, our flock of employees, communities, consumers, and investors."

In only its second year in business, Allbirds gained the title of world's most comfortable shoe.

Time magazine said Allbirds' hero product, the Wool Runner, was the "World's Most Comfortable Shoes."

By 2017, Allbirds, Warby Parker, and Casper were considered among the "DTC pioneers" shaking up their respective industries — sneakers, eyeglasses, and mattresses.

By 2018, direct-to-consumer business plans proliferated. In 2018, Inc. reported that more than 400 startups were trying to "become the next Warby Parker."

Allbirds sneakers became synonymous with Silicon Valley dressing

In August 2017, Allbirds got another shot of national publicity when The New York Times described Wool Runners as part of the Silicon Valley uniform.

A month later, Allbirds opened its first store,

The 1,450-square-foot store is located in New York City's Soho neighborhood. In 2022, the company operated 58 stores.

By 2020, Allbirds' popularity had spread well beyond Silicon Valley. President Barack Obama was spotted wearing Wool Runners repeatedly.

But the shoe started to fall out of favor with the trendsetters and the press, with GQ even lamenting the sight of Obama wearing them . "Can't someone send him a pair of Jordans?" the magazine wrote.

Allbirds launched the Dasher in 2020.

With the success of Wool Runners waning, Allbirds launched its first performance-running shoe, called the Dasher, in May 2020. Gear Patrol called it "shockingly good."

Also in 2020, Allbirds partnered with Adidas to make a low-carbon shoe, another sign of the company's willingness to disrupt industry norms.

Large footwear brands are typically reluctant to partner with one another. The shoe, called the Adizero x Allbirds 2.94 kg CO2e, had the lowest carbon footprint of any Adidas or Allbirds sneaker.

In August 2021, ahead of a public offering, Allbirds disclosed growing annual sales, but also mounting losses.

Sales increased from $193.7 million in 2019 to $219.3 million in 2020, but losses also increased , growing from $14.5 million in 2019 to $25.9 million in 2020. 

Allbirds went public in 2021.

A little more than 2,100 days after it launched its Kickstarter campaign, Allbirds went public on November 3, 2021. Shares soared 90% on the opening day of trading, CNBC reported, a sign of Wall Street's bullish outlook for the company.

Allbirds dropped claims about being the first "sustainable" IPO.

After the Securities and Exchange Commission objected, Allbirds dropped claims about being the first "sustainable" IPO, the Financia l Times reported in November 2021.

Allbirds launched wholesale in 2022.

Although it was launched as a direct-to-consumer company, in May 2022, Allbirds announced its first wholesale partners , Zalando and Public Lands, then Nordstrom — a signal that DTC sales would not be enough to get the company to profitability.

As Allbirds started to add wholesale partners, the backlash started to build against DTC companies.

"It's the de-DTC era," said Simeon Siegel, the managing director for equity research at BMO Capital Markets. Analysts, such as Siegel, said the benefits of direct sales were often overstated.

As DTC companies started to fall out of favor, and investors started to pay more attention to profitability, Allbirds stock started to drop.

Allbirds shares, which hit $28.64 on the company's first day of trading, had fallen to under $5 fewer than eight months later . Stock pickers said the company needed to expand beyond Wool Runners.

In 2022, Allbirds officially lost its novelty in Silicon Valley wardrobes.

Roughly five years after The New York Times christened Wool Runners part of the Silicon Valley uniform, The Wall Street Journal in December 2022 said that "tech bros" had moved on.

In March 2023, Allbirds shares plummeted 47% after a disastrous earnings report that included a $101 million annual loss.

On a call with stock analysts, executives announced a sweeping four-part reorganization , including slowing the pace of store openings, adding more wholesale partners , and working to "reignite product and brand." Co-CEO Joey Zwillinger also said some of the company's marketing veered too far away from what Allbirds consumers want, including marketing for the Tree Flyers, above, which focused on its technical-performance attributes.

Allbirds began to rethink its big bet on DTC.

As part of the reorganization plan, Zwillinger said the company was considering adding more wholesale partners . By then, the company's wholesale partners included Nordstrom, REI, Scheels, and Dick's.

In 2022, while still based in San Francisco, Allbirds quietly opened an office in Portland, Oregon, to take advantage of the city's talented-footwear workforce. Nike is based in a Portland suburb, and Adidas has its North American headquarters in the city.

Allbirds hired several Nike and Adidas veterans to run the office, including Ashley Comeaux, who spent more than 10 years at Nike before becoming Allbirds' vice president of product design.

In early 2023, Allbirds released a string of products designed and developed by Comeaux and her team, including Risers, Pacers, and SuperLights, which lack a Strobel board, a manufacturing innovation designed to reduce carbon emissions and improve comfort.

Risers and Pacers have already gotten strong reviews from Insider.  Although the new products have been well-received, shares of the company remain well below the $15 IPO price, trading for $1.23.

In March, Allbirds announced disappointing earnings and Zwillinger told analysts that the company had lost focus on its core.

Since then, the company has focused on its best-sellers, the Wool Runner and Tree Dasher, while it discontinued underperforming products like much of its apparel, the Wall Street Journal reported. 

In June, the company released what it said was the world's first carbon-negative shoe , which it calls the M0.0NSHOT.

In May, Allbirds announced a leadership shakeup, as co-founder Tim Brown said in an analyst call he would no longer be co-CEO of the company.

Brown said he would be stepping into the role of chief innovation officer of the company, leaving fellow co-founder Joey Zwillinger as the sole CEO of the company.

The company also laid off 21 employees globally in May, it said in a filing with the US Securities and Exchange Commission.

The shoe company generally had a disappointing start to 2023. The company reported a 13% decline in year-over-year revenue in the first quarter.

'As we've tried to expand and grow the brand, we created products that haven't quite met the mark,' Brown told The Wall Street Journal.

In a July article, Brown and Zwillinger told the Wall Street Journal that their attempts to appeal to customers younger than its 30- to 40-year-old base didn't go over well. The Tree Flyer was one of those attempts that missed the mark. 

The company reported second-quarter earnings were above expectations. Sales fell 10% compared to a projected 18%.  

"We laid out a road map for our strategic transformation back in March, and now two quarters into our work, we have gained traction and are solidly on track to drive toward profitability expectations," Zwillinger said in an August earnings call. 

In November, Allbirds released an updated version of its first Wool Runner.

The Wool Runner 2 has been updated with a new version of its SweetFoam midsole and improved durability, Retail Dive reported. 

Full-year earnings for 2023 were dismal indeed, with sales down 14.7% and a net loss of $152.5 million for the year.

The company also promoted COO Joe Vernachio to CEO, with Zwillinger stepping down to serve as a special advisor and remaining on the board of directors.

In April 2024, the company received notice that its stock faces possible delisting on the Nasdaq exchange. It has 180 days to improve the share price.

In a statement , Allbirds said its stock must trade above $1 for at least 10 consecutive days in the next six months in order to stay in Nasdaq's good graces.

Matthew Kish, Ben Tobin, and Jennifer Ortakales-Dawkins contributed to earlier versions of this article.

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