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 .
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.
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.
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
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 ?
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
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
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
- More variety
- Better shopping experience
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
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
List estimates for the capital you will need to start and financial projections for the following years.
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?
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.
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
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.
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
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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 .
Retail Business Plan Template [Updated 2023]
Retail Business Plan Template
If you want to start a Retail business or expand your current Retail company, you need a business plan.
You can download our Retail business plan template (including a full, customizable financial model) to your computer here.
The following retail store business plan template gives you the key elements to include in a winning plan for your own retail business. It can be used to create a business plan for a clothing store, an electronics store, a shoe store, or any other type of retail business.
In addition to this template, conducting market research for your customer base will help you identify potential market trends and customer segments to better understand the viability of your retail company and your potential competitive advantage.
Sample Retail Business Plan
Below are links to the key sections of a successful retail business plan:
I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
Download our Retail business plan template (including a full, customizable financial model) to your computer here.
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Retail Business Plan Outline
Retail Business Plan Template – 14+ Word, Excel, PDF Format Download
Whether one is planning to have a restaurant or a cafe, or just venturing on any other retails and online store, it is necessary that you have a retail plan to make your job easier. It helps you analyze and review business commitments. The business action plan acts in providing a detailed account of one’s financial strategy, and offer makeshift plans involved in fulfilling these designed strategies. You May Also See Shop Business Plan Templates .
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Starting a Business | Templates
4 Free Retail & Online Store Business Plans
Published December 13, 2019
Published Dec 13, 2019
WRITTEN BY: Blake Stockton
This article is part of a larger series on Starting a Business .
A retail business plan can help entrepreneurs analyze their business concept and explain why it will be successful. Many banks and investors like to see companies’ strategic plans before agreeing to provide funding. All business plans for retail and online stores should showcase their products and services, financial projections, and marketing strategies.
Before starting your retail or online store, it’s important to register it as a legal entity with the state in which it’s doing business. A legal business entity would protect the business owner’s personal finances if a lawsuit were to ever occur against the business. Rocket Lawyer is an online legal service that assists small business owners with the paperwork needed for legal entity registration. Register your business with Rocket Lawyer for $99 plus state fees.
Visit Rocket Lawyer
Retail Business Plan Templates
We’ve included four retail business plan templates below and separated them into different types, including one for retail product-based storefronts, retail service-based storefronts, retail companies with a storefront and an online store, and retailers that run their business completely online. To understand each section of the business plan template better, we recommend you read our step-by-step business plan guide . All of the templates below include the necessary sections to obtaining funding from a bank or investor.
We’ve included template copies that are in both Microsoft Word and Google Docs. To save the Word document, click on your desired template’s link below. Once it downloads, click “File” within the document, then “Save As” to save the template to your computer.
To save the Google Doc, click your desired template’s link below. Copy all of the words in the document, open a new Google Doc on your account, and paste in the template. The new template will automatically save to your Google Doc account.
Product-based Retail Storefront
Word / Google Doc
Retailers with Storefront And Online Business
Service-based Retail Storefront
Online Only Retail Store
How Retail Business Plan Templates Work
These retail and online business plan templates walk you through how to create a plan for your business. They all come with questions in each section and subsection to spark creative thinking and provide direction.
It’s important to note that some businesses will have information that fits into all of the template categories. For example, a bakery can sell products in person and online in addition to providing a service with educational classes to aspiring chefs. If your business happens to have diverse revenue sources like this, choose the template that applies to how the majority of your revenue is earned. For example, if the online store will only earn 1% of overall sales, you should choose the storefront-based business plan template.
Product-based Retail Storefront Template
This template is for a retail business with a storefront that primarily sells products rather than services to customers. Typically, these types of businesses have a local marketing focus. Additionally, inventory and sales staff are important topics to discuss in the business plan. Examples that fall into this business category include clothing boutiques, food businesses, and jewelry companies―essentially, any store that buys and resells items in small quantities, not in bulk like wholesalers.
Download the product retail storefront business plan in Google Doc or Microsoft Word format. PDF isn’t available, because the Table of Contents’ page titles and numbers won’t update after you add new information to the template.
Service-based Retail Storefront Business Plan Template
The service-based retail storefront template is right for anyone who primarily provides a service to its customers. This type of business has a local marketing focus. Additionally, hiring and managing quality staff are discussed in this business plan. Examples of service-based retail storefronts include massage therapist companies, nail salons, product repair, shops, and rental-based businesses.
Download the service-based retail storefront business plan in Google Doc or Microsoft Word . PDF isn’t available because the Table of Contents’ page titles and numbers won’t update when you add new information to the template.
Business Plan for Brick-and-Mortar Retailers With Online Stores
This template is for any retail business that has a storefront and is selling a product online as well. The business plan discusses ecommerce and online marketing strategy in depth. Examples of brick-and-mortar retailers with online stores include memorabilia or comic book stores in addition to shops that sell clothing, outdoor goods, and spices.
Download the retail storefront and online business plan template in Google Doc or Microsoft Word . A PDF version isn’t available, because the page titles and numbers within the Table of Contents won’t update when you add new information to the template.
Online Retailer Business Template
The online store business plan template is for retailers that primarily sell products online. The template emphasizes ecommerce, online marketing, and shipping. It’s best for niche businesses that cannot fund a storefront, such as stores that sell artisan soaps or custom items. Dropshipping businesses will also find the template useful.
Download the online retail business plan in Google Doc or Microsoft Word . A PDF version isn’t available because the Table of Content page titles and numbers won’t update when you add new information to the template.
What All Retail Business Plans Should Include
If you’ve looked at the above templates, you may have noticed that several sections are similar on all four business plans. That’s because no matter your type of business, when writing your business plan , bankers are looking for certain sections, including the Executive Summary, Company Summary, Market & Industry Analysis, Marketing Strategy, Financial Projections, and Appendix.
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.
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 ).
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.
Every retail business owner needs to go through the exercise of creating a business plan. The process helps the owner understand the strengths and potential weaknesses of their business. Use our business plan templates along with the SCORE financial projections workbook to obtain necessary funding for your retail business. You may find yourself struggling with portions of the financial projections. If so, contact an accountant for assistance or use a business plan software.
If you’re on a tight budget and need legal advice about your business, you can contact an online legal service. Rocket Lawyer provides affordable expert legal advice to business owners. Get started with a 30-minute consultation from a Rocket Lawyer attorney for $59.99.
About the Author
Find Blake On LinkedIn Twitter
Blake Stockton 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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Do you have dreams of owning your own brick and mortar retail store? Or an eCommerce website you can run from the comfort of your own home? Whichever retail option you choose, you’ll need a business plan to get started and successfully manage it.
Check out our library of retail sample plans for inspiration and guidance as you build out your own physical retail or eCommerce business.
Or to develop a more modern online plan that updates with your retail needs, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance, sections you can update on the fly and automatic financials to help you easily manage your business.
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14+ SAMPLE Retail Business Plan in PDF | MS Word
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