Business Plan for Retail Store in the UK - Case Study Example

Business Plan for Retail Store in UK Executive Summary This retail store targets health conscious individuals whereit provides dietitians for guiding the customers in UK with the benefits and demerits of various kinds of foods for their bodies and the type of food suitable for their health (Applebaum, 1965, p. 13). This is a line of business filled with retail stores in UK which however do not offer significant dietetic counseling and guidance that is paramount in people’s life (Zimmerer, 2005, p. 112). It is evident that in the present day individuals get very busy with tight schedules like employment and even family constraints (Bisoux, 2002, p. 34). From this reason very few people can find time for workouts and many do not have time to analyze dietetically the right kind of foods to eat and even the right proportions take. The young, the old and even the sportsmen do not adore exercising. According to Jacksack (1998) this is a business plan that intends to invest on these old, young and sportsmen who cannot find the best stores that offer dietetic guidance above the food they take (p. 78). Business Details This is a retail store that seek to venture into selling food to the people just like other known retail; stores however, this one goes further to provide nutritional and dietetic counseling which is significant part of everyone’s life. This is not merely a simple retail store like Tesco, Waitrose or Sainsbury but a retail store for health aware people. There will be professional nutritionists readily available and guiding the customers on the advantages and disadvantages of the product for their body type or the body type they intend to attain. Key Personnel This retail store company has already picked a small team of professionals with extensive retail store management skills and experience. Above all, a team of nutritionists, computer experts, and sales team are part of the invaluable resource to the Retail Store business. As a matter of fact, every successful company needs combined professionals who have all it takes to take the company to the next level (Harmer & Peck, 1999, 2002-2004, p. 63). Vision The vision of this retail store is to ensure that people who desire to maintain their body weight dietetically will have a chance to do so by purchasing reliable food at the retail shop. This will be effective due to the fact that the customers targeted will be people who need to get valuable information about their health condition or eating proportions and patterns (Bishop, 1992, p. 46). Over and above any person suffering from diabetes, cancer, obesity, cancer and hear related ailments will find this retail store a must be for their food and nutritional advice. Business idea This business idea originated from the fact that in the present day, many people have busy schedules that involve dealing with a lot of life problems. Everybody is struggling to get money and finding easy ways to get money or even job opportunities. As this happens, very few people can find time to check on their weight, their feeding patterns thus leave only the desire to eat and fill their stomach or satisfying the taste. The idea that many old people including young people and even athletes find it hard to exercise or eat healthy, creates a need to satisfy them. Business goals This is a business idea that seeks to articulate the needs of health conscious people where dieticians will be present to guide the customers in the kind of food they eat (Blakney & Sekely, 1994, p. 67). This retail store business intends to create profit from selling high quality food to deserving people in UK. This business intends to change the way retail stores in UK and worldwide do business by adding a significant factor in retail store business. What the business does This retail store business entails selling food to customers in UK. Above all, the retail store business will entail providing nutritional guidance by nutritional and dietetic experts trained to offer guiding principles regarding healthy living, eating and even doing work outs for keeping fit (Trumbo, Yates, Schlicker, Poos, 2001, p 299). The business intends to sell all the necessary groceries and food that is helpful to the old, the young and the people living with lifestyle diseases like cancer, obesity, diabetes and heart related conditions (Trumbo, et al., 2001, p 298). The available dieticians will be trained adequately and help individuals living with diseases like diabetes, cancer and heart related conditions live a healthy life. Clients will have a chance to go through a dieting consultancy services with dieticians where charges will be different from the rest of the services offered (Trumbo, et al., 2001, p 298). Clients will have a chance to learn more about the lifestyle changes that they need to employ for successful outcomes. For instance clients who require gaining muscle weight, physique will receive valuable guidance on intake of various elements like proteins, carbohydrates and vitamins in the correct proportions (Trumbo, et al., 2001, p 298). Clients can purchase these items from the store in order that time is not wasted in searching for other places to find these products. Other patients will be required to take vitamins and diverse kinds of supplements that will as well be readily accessible right in the store. Over and above this retain store will have a membership/data cards with the intention of monitoring the progress of the clients. The store company will ascertain that the clients will attain their fitness objectives. Initially, there will be a series of trial sessions where customers can depend on the dieticians available. What makes the business different? Ideally, this business intends to sell similar product range that other retail stores sell in the present day in to a certain level. However, as indicated, this is a business that goes beyond a retail store that makes the business different. In this business, there would be dietitians who will provide valuable information regarding helping customers buy their groceries. This entails providing valuable information that helps in boosting health (Trumbo, et al., 2001, p 298). Above all, customers can have sessions with professional dietitians where they can get valuable information regarding their lifestyle. Legal Requirements This retail store is incorporated under the laws of the UK that every business is obliged to follow. The company has authorized certain percentage of shares among the shareholders and the remaining shares are left for distribution. The legal business structure puts to detail the framework of the business regarding the various management positions up to the subordinate staff. The structure will clearly indicate the retail business from selling of groceries and make it possible to attract the risk capital which will be needed when the business begins to expand. This business seeks to operate under the laws of UK that applies to all business under the UK government. These laws are applied via business license and registration of the business where the business owner agrees to purchase and operate under the legal policies stipulated in the license and business certification. A certified business means that it operates under the laws of UK. All employees will have to take part in PAYE TAX (pay as you earn) in accordance with the UK laws and requirements of starting a business. Since this business is offering a service to customers, there is need for the business owner to take the VAT (value added tax) on behalf of the government. Additionally, due to the fact that this is a non domestic business, the grocery owner will have to pay for business rates on a monthly basis as obligated by UK laws and requirements. Over and above, public liability insurance (PLI) will cover this business from financial losses in the occasion of disasters for instance body injuries or destruction of property. Finally, the business will need to adhere to the food standard agency in order to meet the requirements of The Food Safety Act 1990, fire safety, healthy and general safety of both the customers and the workers. Sales and Marketing Outstanding sales and marketing skills are significant in this kind of business. Therefore, every member of the retail store needs to be fully placed into increasing sales in this business. Additionally the dietetics will also market the services offered to customers as in the present day people value appropriate eating providers (Arnold, Handelman, & Tigert, 1996, p. 12). In addition to this, every day there will entail auditing of everyone’s activities and feedback regarding the extent which everyone brought in significant results will be put forward and strengths and weakness highlighted for future improved results as a business. This retail store business will be making use of contact management systems that will permit will help the managers check the effectiveness of diverse promotion and advertising strategies and of diverse sales and marketing communication. Above all, the key to our strategic advantage is possessing leading information on prospective clients (Kawasaki, January 21, 2006, p. 45). Market Research Our market research has indicated that a large number of people in UK are in dire need to learn about their lifestyle changes and how they need to manage their weight, live with lifestyle diseases like cancer, diabetes, heart problems and muscle problems (Sherman, Cody, Rogers, Solanchick, 2008, p. 122). Some of these problems require to be addressed by the retail stores that sell food and groceries to customers mentioned (Carpenter, & Nakamoto, 1989, p. 286). This can bring about different kind of clients for instance the old, young, sportsmen and people living with cancer, diabetes and heart related problems. It is evident that the current situation in UK regarding health and people’s lifestyles need this retail store. From desk and field market research conducted on over 100 clients, it is evident that there is substantial likelihood of profitable business in retail store in UK. This is bearing in mind that there is incorporation of dietetic and nutritional experts to provide valuable information about health and lifestyle management. Research also indicates that our retail store business finds it hard to obtain valuable information from competitors regarding advice on thriving in this business and about the activities involved. Research shows that the clients in this field will not likely buy food from a newly established store without proper information provided by the sales team. The business seek to accommodate these requirements and advance a well thought means to bring many customers while sustaining them even further as loyal customers. By putting emphasis on the experience of the retail staff and dieticians employed to provide high quality services, the business will provide advice and express our customers on the kind of food they need in order to lead a healthy lifestyle and to get the very best out of their life. Profiling customers The customers that are targeted in this business are precisely people who do not have much knowledge about what they need to know but they want to know what is correct for them to eat in a retail shop (Pinson & Linda. 2004, p. 20). Also, it will target common customers who purchase groceries and food in a retail shop. However, one important thing that is contrary to other retail shops is that these customers will end up receiving valuable information about their lifestyle changes amid food choices for health issues. Above all, people living with cancer or surgery, diabetes, heart related problems, and obesity are the target group in this retail shop as much as the general members of the public in UK are targeted. They will be provided with special diet plans to meet their lifestyle needs and provided with valuable information on the reason why they need to follow such diet and the right proportions, right amount of vitamins, nutrients and calories. In particular, the young people who have intentions of getting better skin quality or turning out to be attractive and natural looking will find this store an appropriate place. Lastly, athletes will get a chance to serve their bodies with appropriate nutrients thus enabling them perform at best in sports. Managing Market Risks The business intends to come up with significant ways to manage marketing risks that include: losing customers to other retail stores, losing touch with the clients, losing the quality of services offered and competition. Competition is one major factor that revolves around this business (Arnold, et al., 1996, p. 14). However the business will outshine the competition from other retail stores y putting focus on superior products, knowledge and understanding, customer service, retaining our status in business thus retaining customers and attracting new customers. Above all, the business will put a lot of emphasis on the nutritional value of a retail shop. Pricing This is a kind of business where other retailers sell products in bulk in order to obtain large discounts per unit price. This is where the retailers need to come up with techniques of selling products at lower prices than what other retailers offer. The table below outlines the financial figures for the company in the first 3 years which includes pricing, staffing, premises, and the finance. Retail Store 800ft2 Y1 Y2 Y3 Transaction numbers per day 175 200 225 Transaction numbers per day 54600 62400 70200 Average spend ?8.0 ?8.50 ?9.00 Sales 436775 533550 638185 Cost of Sales 327566 394827 465875 Gross profit 109189 138723 172310 GP% 25.0% 26.0% 27.0% ?/ft2 546 667 798 Other income 1200 2400 3000 TOTAL INCOME 110389 141123 175310 Salaries 76322 77848 87071 Other controllable costs 24894 24860 26464 Direct costs 32259 38343 44532 TOTAL ALL COSTS 133475 141052 158067 Net Profit -23086 71 17243 Table 1 Running the business This business will be managed and run by team of experts in the retail store management. This will entail shopkeepers account managers and the subordinate staff. In this regard, there will also be an added group of nutritionists that will help in running the business in every means above all providing valuable information regarding nutritional value and dietetic essence of healthy feeding and weight management (Trumbo, et al., 2001, p 298). There will be a use of a computer founded account running system where sales and marketing can be audited on a regular basis. This will help in analyzing the profits of the business and whether the business is working or running properly. Above all, this kind of account management process will help determine the competitive aspects amid other challenges that the business encounters on a daily basis (Arnold, et al., 1996, p. 14). In additional to this, this account management system will help determine the best staff and will provide a framework for awarding staff on the basis of creation of sales and profits. Premises The business retail store will be located in UK on a centralized and highly marketable location measuring 800ft2 where customers will find it conducive and further convenient to travel to. The premise is also chosen on the basis customer comfort and total satisfaction. Suppliers This business intends to obtain freshly picked vegetables and food to customers to ensure that high quality serving is evident. Additionally, only the well known and certified suppliers like grocery chains will be contacted on every business occasion for purposes of ascertaining first class services to the customers. Finance Retailers purchase their products in bulk. Therefore, this is the way they get huge discounts in unit price leading to profits. One way to raise finances is by coming up with business strategies that entail selling of products at lower prices of what other retailers are selling. The business will entail keeping the products or brand that the customers desire, trust and desire. The CEO of this retail store business plans to invest a given percentage of their money as start up costs for the duration of the early months of the first year’s operations. However, there is need to seek further support in the funding in order to raise capital. This will help in acting early in response to any business eventualities that may need extra money especially in the future. Another method of raising capital entails approaching a bank with regard to boosting a medium-term loan and a line of credit. Profit and Loss forecast The business is prepared consists of a 12 month profit and loss forecast which entails a 4 year profit and loss forecasting which is optional, a cash flow projection, a provided balance sheet and a break even calculation. Jointly, they comprise a reasonable approximation of your company’s financial prospect. Significantly, the process of working on the business plan will progress the vision of the company into the internal running of the retail store business. This business is working on a 12 month profit and loss forecast as the central factor of their plan (Arnold, et al., 1996, p. 14). This process helps in putting altogether the business profits and losses in figures and to obtain the idea of what will happen in order to make profit and make this retail business successful. The sales of this business will come from the forecasts of the sales, price of goods sold, expenditure and profit every month in a year. This profit forecast will help provide an estimation of the income and expenditure of the retail store business. Read More