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A Project Report On Retail Business Plan-Ritzs
A Project Report On Retail Business Plan-Ritzs
This is to certify that the project reported here has been carried out independently by Mr.Ritesh J.Parmar under the guidance of Mrs. Nisha Kurup as a project in certification course of Program in Business Skills related to Retail, and is his original and bonafide work.
Developed By: Ritesh J.Parmar. Submitted To: Mrs.Nisha Kurup. (PBS Trainer)
ACKNOWLEDGEMENT
Every piece of hard work requires the combined efforts and talents of many people. An Ambitious work of this kind, providing analytical review to the subject would have remained a concept rather than the finished product without co-operation of those who respondent to our request to contribute. I am very much graceful to our respected Director Mr. Manish Amin of NIS Academy. Who has enriched my knowledge and gave me a moral support to do this report. I am also highly thankful to Mrs.Nisha Kurup (PBS Trainer) for showing the right path and encouraging me for the preparation of this report. I extremely thankful for her involvement and interest and providing necessary guidance regarding concept clarity of the project and support during all the stages of this project. I am very much thankful to all those people who gave me their valuable time and related information about the project.
PREFACE
A man without practical knowledge is just like a rough diamond. To shine like a real diamond one must have practical exposure of what he has learnt. For the management students, theoretical knowledge is just like lock without key, so practical knowledge is of utmost importance. It is quite true that world outside: your cosy home is many times quite different from what you have perceived. Similarly it is possible that theoretical knowledge acquired in the classroom may differ from the practical knowledge As a Curriculum part of P.G.P.B.S Course, I had completed my Project Report on RETAIL BUSINESS PLAN. The main objective of this project is to give hands on experience of creating a detailed Business plan &what are the things include while making a business Plan. It is my pleasure to present this project work. This Project has
expanded my horizon of knowledge in practical as well as theoretical, which is vital for management level students. Only the basic understanding of the principles of management is not sufficient but their application is also equally important.
Index
NO. 1 2 3 4 5 6 PARTICULAR Executive Summary Company Analysis Industry Analysis Analysis Of Customers Analysis Of Competition Strategy Marketing Plan Operational Plan Staffing Plan Financial Plan 7 8 Conclusion Annexure PAGE NO. 6 8-11 12-19 20-23 24-29 30 31-34 35-36 37-39 40-45 46 47-48
Executive Summary:
The retail industry shows a constant positive demand especially for food and related products. Compared to other business activities this kind of business has low risks because of low required investments. New forms of cost cutting and store optimization will help to set up a successful business. The return on this retail business has a growth rate of about 3% to5% per year. A company that provides additional service activities for the customers can be sure to have a high demand and a strong competition advantage Yogeswar General Store is located in the Mariampura, located near C.J.M School, Petlad, in the Famous area of the City. This business plan is prepared to obtain Rs.4, 00,000 Sales turn over in next financial year & also for the expansion of the store. We are seeking joint financing from our local Economic Development Fund. India is the only one country having the highest shop density in the world, with 11 outlets per 1000 people (12 million retail shops for about 209 million households). Rather we can see the democratic scenario in Indian Retail (because of low level of centralization, low capital input and due to a good number of self organized retail). Indian retail is dominated by a large number of small retailers consisting of the local Kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called unorganized retail or traditional retail.
The last 3-4 years have witnessed the entry of a number of organized retailers opening stores in various modern formats in metros and other important cities. Still, the overall share of organized retailing in total retail business.
The operation of a General Store business that offers a range of food and beverage products is the core of this start-up. A strong focus of this business will be placed on the development of new and innovative strategies for the customers that deliver a significant value. One central goal of the proposed business strategy is the development of an own identity. Such identity will create customer loyalty and help gain a competitive advantage Therefore, Store is planned to provide new & interesting services to the customer.
The Yogeswar General Store concept, as shown in our plan, has an excellent profitability level and growth rate. Our competitive edge, along with new retail techniques and technology, puts our store in the forefront of the retailing of perishable and non-perishable consumer goods. We are living in an age where unique grocery store environments are in great demand. The store will differ from the traditional grocery store because of their added personal touch.
Objectives:
Yogeswar General Store is a neighbourhood Kirana store, which is located near C.J.M School in Petlad, this area is known as the centre of city, which is convenient for all the people. Obtain necessary funding. Become an established community destination with a
customer satisfaction rate of 90% by the end of the next financial year. Achieving Sales Turnover of Rs.4, 00,000Per month in next year. Hiring 5 five new employees for the Store. Repay debt from original financing by the end of the next three years. Utilizing the Marketing budget of Rs.50, 000 for the promotion of the Store.
Mission:
The most fundamental philosophy of The Yogeswar General Store is the concern for people. The Stores primary objective is to create a new and revolutionary distribution outlet that will significantly reduce prices for its customers and provide greater services with an equal level of quality. The Store seeks to be first to market with this daring new idea so as to capture market share and create greater than average profits. Stores philosophy of concern for people gives our General Store the drive to be a good corporate citizen. Store believe that they have a responsibility to be a good neighbour in maintaining their property in first-class condition and by making the appearance of their plant, facilities, equipment, and grounds as attractive as possible, making them an asset to the communities that support their store.
Company Analysis:
Company Summary:
Yogeshwar General Store is a premier regional grocery retailer based in Petlad City. It is doing business more than 15 years and Yogeshwar General Store do sales more than 130 private label and national brand products to more than 90 independently owned products.
Company History:
In 1995 Arvind bhai was build-up or forming a small store named Yogeshwar General Store .It is a neighbourhood store and in 2001 he was expanded his business & make big store. The store has is at convenient place. The store has more than 80 national and domestic brands. The sales revenue at the store is 2, 00,000 from last three years After getting this much of sales revenue now the owner is thinking to take the franchise of multinational brands .Owner is thinking to take franchise of Proctor &Gamble, Johnson& Johnson, etc.
Company Ownership:
The Yogeswar General Store is a Sole Proprietorship. Currently it will be owned and operated by Mr.Arvind Prajapati & His Father.
Location:
The store has located at the ideal store location for the operation. The store is located at the C.J.M School, Mariampura, and Petlad. The store is only selling the grocery products. The Store is fulfilled all the customer need and at Prime location & Ample parking.
Hours of Operation:
Store hours will be 7 days a week from 08:00 A.M. until 09:00 P.M. Checks &all the credit cards will be accepted. A food stamp policy along with other policies will be in place.
Start-up Summary:
Start-up costs will be financed through a combination of owner investment, short-term loans, and long-term borrowing. The start-up chart shows the distribution of financing.
Mathia flour, Dhokla flour, Kodri flour, Amchur powder, Black pepper powder, Black salt powder, Cardamom powder, Chilly crushed, Chilly powder gondal, Chilly powder kashmiri, Chilly powder reshampatti, Chilly white powder, Cinnamon powder, Cloves powder, Coriander powder, Coriander-cumin powder.
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Industry Analysis
Indian Retail: An Overview
Emerging markets such as India and China are the final frontier for retail taking the focus away from saturated Western markets. Since 2001, 49 global retailers entered 90 new markets, but at the same time, 17 retailers left markets in 2005.
The Indian retail industry in valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015. Only three percent of Indian retail is organised. Retailers of multiple brands can operate through a franchise or a cash-and-carry wholesale model.
Retail is Indias largest industry, accounting for over 10 percent of the countrys GDP and around eight percent of employment. Retail in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. That said, the heavy initial investments required make break even hard to achieve and many players have not tasted success to date. However, the future is promising; the market is growing, government policies are becoming more favourable and emerging technologies are facilitating operations.
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Retailing in India is gradually inching its way to becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behaviour, ushering in a revolution in shopping. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof.
The Indian retailing sector is at an inflexion point where the growth of organised retail and growth in the consumption by Indians is going to adopt a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organised retail sector.
Initially, this was about Indian corporate houses rolling out malls and supermarkets, but with Wal-Mart coming into the Indian market, the era of the superstore is dawning. Unlike the Kirana stores that served us for decades, this new breed of retail chains is heavily dependent on IT.
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Source: IT Retailing: Are You In The Loop?, July 16, 2006. The organized segment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and timely promotional campaigns. The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in
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huge savings for the farmers as well as for the nation. The government also stands to gain through more efficient collection of tax revenues. Along with the modern retail formats, the non-store retailing channels are also witnessing action with HLL initiating Sangam Direct, a direct to home service. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets. In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. At present, there are 50 hypermarkets operated by four to five large retailers spread across 67 cities catering to a population of half-amillion or more. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years Traditionally, the small store (Kirana) retailing has been one of the easiest ways to generate self-employment, as it requires minimum investments in terms of land, labour and capital. These stores are not affected by the modern retailing as it is still considered very convenient to shop. In order to keep pace with the modern formats, Kirana have now started providing more value-added services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, phone service, home delivery etc.
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The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health foods, which are generally not found in the local Kirana stores. Looking at the vast opportunity in this sector, big players like Reliance and K Rahejas has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities. Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because many small cities like Nagpur have a student population, lower real estate costs, fewer power cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros. In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India.
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The retail sector does not have 'industry' status yet making it difficult for retailers to raise finance from banks to fund their expansion plans. Government restrictions on the FDI are leading to an absence of foreign players resulting into limited exposure to best practices. Non- availability of government land and zonal restrictions has made it difficult to find a good real estate in terms of location and size. Also lack of clear ownership titles and high stamp duty has resulted in disorganized nature of transactions
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While many like Wal-Mart, JCPenney, and GAP have been procuring from India for a long time, those in the food business and apparel industry have also tried to work their way around by setting up franchises and license agreements with local players respectively. For retailers like WalMart setting up a wholesale outlet like Sam's Club is certainly the way out.
Segment analysis:
The structure of Indian retail is developing rapidly with shopping malls becoming increasingly common in the large cities and development plans being projected at 150 new shopping malls by 2008. However, the traditional formats like hawkers, grocers and tobacconist shops continue to co-exist with the modern formats of retailing. Modern retailing has helped the companies to increase the consumption of their products for example: Indian consumers would normally consume the rice sold at the nearby Kirana
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Analysis of Customers
In the past few years the whole concept of shopping has been altered in terms of format and consumer buying behaviour. With the increasing urbanization, the Indian consumer is emerging as more trend-conscious. There has also been a shift from price considerations to designs and quality as there is a greater focus on looking and feeling good (apparel as well as fitness). At the same time, the Indian consumer is not beguiled by retail products which are high on price but commensurately low on value or functionality. However, it can be said that the Indian consumer is a paradox, where the discount shopper loyalty takes a backseat over price discounts. Yogeswar General Store is proving all the products for all the people. They are not departing any segment .They have all the types of products for all the customers. All the products satisfy needs & wants of the customers. They personally take care of them. And they are also providing some suggestion about the products to the customers. Today customers want hundred percent returns of their hard earn money.yogeswar General Store is give best return to their money.
Yogeswar General Store Was Small store in a past. Now it becomes big general store with varieties of multinational brands. Yogeswar General Store is take care of their loyal customer & give them special discount .The Store will also give discounts to their new customer &build up relationship with them. And also create goo brand image in the mind of the customers.
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Consumer behaviours have changed over the years; this is shown by consumers today purchasing a more healthy variety of products, as information today is known about products that was not known many years ago. Factors such as these changes the way we perceive and value products, as we now are more knowledgeable as well as manufacturers having by law to print the ingredients and content of the products ingredients on the back of most food products, allowing consumers to become more educated. The typical consumer today watches what they eat; they are more aware and exposed to factors that have brought about Changes in Consumer Behaviour. Consumers today tend to purchase differently than they did 10 years ago. As we grow older with every new generation, our values and perceptions change, which is indicative of the way in which we purchase our goods and services. Consumers are concerned about what they buy, from household goods to genetically. Factors such as personal, psychological and social factors have a huge impact on consumer behaviour. From the family unit, to the lifestyles we now adopt, comes decisions influenced by our peers, experiences and knowledge. The ability to now have information right at our finger tips provokes people to know exactly what they are consuming and whether or not they are a health risk to them or their families. While we as consumers can all access information on most of the products we buy, we also have the government, manufacturers and consumer groups that promote the health risk associated with products we consume. For example, an advertisement campaign by the health department will promote the health risk associating with smoking and a consumer group such as the ACA will publish in their magazine the health hazard linked with gene modification.
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The roles of the government and consumer groups are all widely linked and aim to inform the public consumer about the safety of products.
Consumer Behaviour refers to the behaviour of consumers in deciding to buy or not to buy or not buy or to use or not to use or to dispose of or not to dispose of the products that satisfy their needs.
The study of consumers helps firms to improve their marketing strategies by understanding issues such as...
1. The psychology of how consumers think, feels, reason, and select between different alternatives
5. How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer.
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All marketing decisions are based on assumptions and knowledge of consumer behaviour," (Hawkins and Mothersbaugh, 2007). The Yogeswar General Store is giving return of the Customers Hard Earned money by providing them best Quality Products & Providing them best ambience &best environment for the shopping at the store. These are the services provided by the Store to the customers in the exchange of their money. These are the some of the key services provide by The Yogeswar general store.
Availability of all the goods at convenient place. Stocking of multiple brands which give different choices for the customers. Also sell in the small quantities to the small customers. Open long hours (giving buying experience before breakfast till after the post dinner.) Free home delivery-often of very small value orders too. Also taking orders on phone. Also sell products on credit. Selling products at good competitive price to the customers. Occasionally discounts to the loyal customers.
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Analysis of competition
Today we are living in the twentieth century, & this the age of competition. Today we find competition in each & every place. The business who wants to survive in this competition, it has to provide best services & give best solution of the customers problems. Today in every sector nobody has Monopoly.
Retail sector is one of the fast growing sectors of India. Retail is providing equal opportunities both for the customers & Marketers. Competition is needed & required in the Retail sector. Competition gives idea to the Store Owner that where he is? & where he wants to reach? Competition gives proper idea about the Current Market & its situation.
Retail is the booming sector of India in the present times. Retail is one of Indias largest industries, has presently emerged as one of the most dynamic and fast paced industries with several players entering the market. Accounting for over 10 per cent of the countrys GDP and around 8 per cent of the employment in the country. India is among 10 largest retail markets in the world. The retail sector in India is worth USD 394 billion and is growing at the rate of 30% annually.
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Today, Retail sector has a lots of opportunities & lots of ways of growing. But with these opportunities Retail sector also have tough
competition .To remain into the market ,marketers has to understand many things .And in this competitive era Marketers have only few choices .If they want to stay in the market .They have to understand customers needs, wants & demand & providing solution or services for them. If they are fail to do that they have to leave the market.
As a General Store Yogeswar General Store has to face many challenges & pressure of providing good services to the customers. Today many malls & high per markets open in the India .so; they are giving tough competition to the general store. If the Yogeswar General Store is failing to create good image in the mind of the customer .They have to leave the market. The high per markets provide best facilities & give best solution of customers query &requirements. If they have to do good business, they have to follow certain things, which give them proper idea about their current market position. To remain in the competition The Yogeswar General Store has to do their SWOT Analysis. And also do analysis of their Internal Environment & External Environment.
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These are the questions for the store owner for making good internal environment of store & for to remain in the competition. What resources do they have at hand? (i.e. The FIVE 'M's): MEN (Labour/Labour). MONEY (Finances). MACHINERY (Equipment). MINUTES (Time). MATERIALS (Factors of Production. How effective are they at Customer Relationship Management (CRM)? What is the state of their marketing planning process? Is our marketing planning information current and accurate? What is the current state of selling of new products? (Product) How profitable is their product portfolio? (Product) Are we pricing in the right way? (Price) How effective and efficient is distribution? (Place) Are they getting their marketing communications right?
(Promotion) Do they have the right people for facing their customers? (People) How effective are their customer facing processes? (Process) What is the state of their business's physical evidence? (Physical Evidence)
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These are the questions for the store owner for making good External environment of store & for to remain in the competition. As a market orientated organisation, the store must know these things.
What is the nature of their 'customer? What is the nature of competition in their target markets? What is the cultural nature of the environment(s)? What is the cultural nature of the environment(s)? What is the economic condition of their markets? Is the political and legal landscape changing in any way?
There are so many directly & indirectly competitors are in the retail business, for the Yogeswar General Store There so many small & big competitors. The competitors of The Yogeswar General Store are as follow:
Small Kirana Shops. Small & Big Retail Shops. Big Retail Chains like...Big Bazaar, Next, More etc... High per markets & Malls like... Central.
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SWOT Analysis
Strengths:
Demographic favour. Shopping convenience. Low labour cost of skilled ones. Capital requirement is low due to smaller scale of operations, resulting in low rents and overheads. Storekeepers provide credit for monthly purchases especially for users who wish to avoid credit cards. They may have good existing relations with the people residing around the area of their store. Long operating hours and home delivery/ phone/ quick delivery even on small items. Traditional stores are incumbents in prime residential areas and may already own the premises in high-cost locations.
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Weaknesses:
Numerous licence, permits and registration Requirement. Inadequate human resources. Taxation hurdle like VAT, OCTROI etc. lack of quality assurance especially for goods sold loose Lack of ambience.
Opportunities:
Potential for investment. Locational Advantage. Sectors with high growth potential. Fastest growing format. Rural retail.
Threats:
A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Inflation. Poor inventory turns and stock availability Measures.
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Strategy
Strategy is a very important part of the business plan. Building a new store or undergoing expansion can be a tremendous challenge for retailer. Strategy helps the Businessman in growth & development of their business. The strategy of Yogeswar General Store exploits their advantages over the competition (location, convenience, and high quality) with carefullytracked milestones for growth. In the start-up phase it is a central task of the marketing concept to establish a name Recognition and own trade mark. Later on the strategy will primarily be targeted to gain new Customers and create customer loyalty of repeat customers.
The Yogeshwar General Stores competitive edge will be the lower prices they will charge to their customers and the novel purchasing experience that will draw shoppers. The most critical element of The Yogeswar General Store success will be its marketing and advertising. In order to capture attention and sales The Yogeswar General Store will use prominent signs at the store locations, billboards, media bites on local news, and radio advertisements to capture customers. Many of the initial customers will be drawn to the unique nature of the store and will then have the opportunity to realize the cost savings of The Yogeshwar General Store. They expect an average 25%increase in sales from year to year. This may seem very high, but considering the level of initial sales and the growth possibilities, management actually considers this to be achievable.
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Marketing Plan:
Marketing plans are vital to marketing success. They help to focus the mind of companies and marketing teams on the process of marketing i.e. what is going to be achieved and how we intend to do it. There are many approaches to marketing plans. Marketing Teacher has focussed upon the key stages of the plan. It is contained under the popular acronym AOSTC. A Analysis (Situation Analysis & Marketing Audit ) O - Objectives(Set the Marketing Objectives ) S - Strategies(Describe your target Market ) T - Tactics (Marketings Tactics )& C - Controls(Marketings Controls)
Competitive Edge:
Yogeswar General Stores competitive edge will be the lower prices they will charge their customers and the novel purchasing experience that will draw shoppers. In the convenience store industry, low cost and availability are the two success criteria. They plan to create these advantages in a new, high-tech environment that will retain customers.
Marketing Strategy:
The most critical element of The Yogeswar General Stores success will be its marketing and advertising. Convenience stores serve the entire purchasing population of its geographical area but focuses on customers who need to purchase items outside of normal working hours such as swing shift employees and quick shoppers looking for snacks and related items.
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In order to capture attention and sales Yogeswar General Store will use prominent signs at the store locations, billboards, media bites on local news, and T.V advertisements to capture customers. Many of the initial customers will be drawn to the unique nature of the store and will then have the opportunity to realize the cost savings of Yogeswar General Store. Since automated shopping is still in its infancy, the firm expects to invest a great deal of its available cash and revenues in marketing efforts.
Sales Strategy:
The Yogeswar General Store will be a stand-alone, with good facility; they have an attractive storefront with their low prices and easy-to-use system. They believe that this in itself is its own seller. One critical procedure to ensure top customer service and reliability will be establishing a method for keeping enough inventories of all their products. They will be using industry data on inventory for other convenience store chains to assist people.
Sales Forecast:
The Yogeswar General Stores forecasted sales for years One&Two respectively are Rs.48 ,00,000;Rs.60,00,000, This gives us an average 25% increase from year to year. This may seem very high, but considering the level of initial sales and the growth possibilities, management actually considers this to be achievable. These sales figures are based on a current Sales Turn over and walk-by traffic with an average purchase amount conforming to industry averages. The target profit margin was defined as an average net profit of all merchandise.
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Sales Forecast of Yogeswar General Store Sales Drinks Snacks General Grocery Items Others Total Sales
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The Yogeswar General Stores current position is very good, with the sales turnover of Rs.2, 00,000 per month but with the expansion of the store, they want to achieve sales turnover of Rs.4, 00,000 per month.
The Yogeswar General Store is plans to offer a greater number of products and services in the future so as to create another dimension of competitive advantage. The Store will sell the same products as other convenience stores in the same packaging sizes, quality, and quantity as other stores. This includes soft drinks, fruit juices, sport drinks, hot and cold snacks, a limited number of grocery items, etc.
The Yogeswar general store is proving attractive storefront with their low prices and easy-to-use system. This way they are doing positioning & Get the desired image of their store. For the marketing store is having budget of Rs.50, 000.The store will doing promotion through giving discounts to both the new & old customers with that store use prominent signs at the store locations, billboards, media bites on local news, and T.V advertisements to capture customers.
The pricing strategy of Yogeswar General store rely on cost, demand, environmental factor .The store is providing low price & High quality products for their customers, which will help them to achieve their desired position & become popular among all the customers.
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The owner of the store personally taking care of the quality of the products &services provide by the store. If they will maintain their quality of the products &services, they will definitely achieve their milestones. The development of the store rely on the quality of the services provided by the Store.
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Personal plan:
The Yogeswar General ' store will operate virtually 12 hours a day 7 days a week. Although the stores opening hours will be officially 08:00 a.m. to 09:00 p.m. Assumptions regarding personnel have been made for year 1 & year 2 as follows: Ending of Financial Year 1 As a store owner Mr.Arvind Prajapati will get Salary of Rs.6, 00,000 per year. An Accountant will get the salary of Rs.1, 50,000.per year & the three sales persons will get the annual salary of Rs.2,88,000 & store cleaner will get the salary of Rs.36,000 per year. Ending of Financial Year -2 Salaries will be boosted by 10 percent. Additional staff will be hired if significant increases in sales.
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Staffing Plan:
Staffing Promoting, consists Appraising, of recruiting, Selecting, Placing, Orienting, the
Compensatating,
Training&
developing
individuals and the existing workers for accomplishing the task effectively &efficiently. Among all the great objectives, Yogeswar General Store has also one needed and Important Objective of hiring good Staff for the Store.
When it was a small Kirana Store there were only two persons to handle the customers, but in this general store the store owner hiring five people of staff. Yogeswar General Store is hiring three sales persons those are completed their graduation & having knowledge of computer. One Accountant from background of commerce completed his master degree & having knowledge of computer. One Store Cleaner for Maintaining the Cleanliness of the store.
The sales persons only have to handle the customers and help them to choose their products. They dont have to interfere in other department &operations. An Accountant has only work of maintaining the accounts & inventories of the store. These are the key result areas of the staff.
There is only one investor &Owner of the Yogeswar General Store that is Mr.Arvind Prajapati. There is no any professional advisor for the store. All the hiring, staffing, selection & decision making done by the owner itself of the Yogeswar General Store.
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Job Profile & Educational Background of Employees of the Yogeswar General Store
Name Employees
of
Job Profile
Salary Month
Per
Accountant Sales Person Sales Person Sales Person Store Cleaner/Delivery Boy
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STORE OWNER
ACCOUNTANT
SALES PERSON-1
SALES PERSON-2
SALES PERSON-3
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Financial Plan:
Financial Planning is a roadmap to realise and achieve financial goals in life. The process of financial planning involves identifying the financial goals in life, based on the persons financial position and risk profile charting out a feasible plan to a achieve those goals. Financial Planning includes identifying goals, making the plan, allocating resources and regular review. As their Sales Forecast made clear, profits will initially be low. They expect to sustain small losses in the few months for the first year, until their newly clientele is fully established. The sales increase more. They have planned for this seasonal variance, and the funding .They are requesting will help to maintain a positive cash balance throughout the first two years, until they become fully profitable.
The Yogeswar General Stores starts with their budgeting program that sets sales goals, establishes payroll budgets, and creates criteria for gross margin, shrink, expenses, and profit. Exception reporting directs operations in the right direction, saving time, and measuring results. They will manage and grow their store with a full range of financial services that include two years financial planning, Store valuations, estate planning, buying/selling of store, and financing assistance. It will save their valuable time and money plus the headaches and worry often associated with complex money matters. From the store .They will have a complete portfolio of financial, accounting, and payroll services, including comparative operating statements, bank reconciliations, sales tax returns, payroll tax returns, periodic and operational review, cash flows, break-even analyses, financial projections, wages, taxes, deductions, check printing,
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and deposit advice. It is these kinds of thorough information and accurate recordkeeping that allow The Yogeswar general store to make sound business decisions for the future.
Determine their financial goals. Determine their desires. Determine how much money is required to fund each goal and desire. Determine their current position. It includes determining your annual expenses, annual savings and available resources. Determine annual expenses. Determine annual savings. Determine available resources. Determine up to which extent their goals and desires can be achieved through available resources. If available resources are insufficient, then they have to adopt following strategies: Increase their financial resources through investment planning. Reduce their tax liabilities through Tax planning. Cut down their monthly expenditure. Make their goals and desires more realistic. Periodically monitor their financial plan.
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The financial planning is a last & final stage of the business planning of Yogeswar General Store. The financial planning will include. Capital Investment. Break Even Analysis. Profit & Loss Statement. Balance Sheet.
Capital Investment:
The Start up funding of Yogeswar General Store was of Rs. 45, 00,000 in which they have invested Rs. 20, 00,000 for the stock & other expences.And remaining was being in the bank. So, they have a cash on hand is Rs.25, 00,000.
They will use that cash in the future for the other major operation of the Store, as per the advice of the experts & as per the requirement of the store.
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Break Even Analysis (General Assumption not realistic) Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost
The Yogeshwar General Stores assumed breakeven point is Rs.3,00,000 means ,when store have a 3,00,000 Rs Sales turnover .That time store have no profit no loss situation. With the fixed cost of Rs .20, 000 &Variable cost of 25% per month. For this kind of situation store will have average foot falls of 150 to 200 customers a day.
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This is the expenses of The Yogeswar General Store (Assumed) Salary of sales men (three) Salary of Accountant Salary of Store Cleaner Light bill Telephone bill Transportation Stationary Miscellaneous 24,000 12,500 3000 1500 1000 2000 300 1000
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Balance Sheet.
The Balance Sheet has two main purposes; (1) Listing the assets of your company and (2) Listing the liabilities of your company. Some examples of assets that might appear in a balance sheet are cash on hand, accounts receivable (amounts owed to your firm), furniture, company vehicles, etc. Some examples of liabilities that might appear in a balance sheet are accounts payable (amounts your firm owes to others), loan amounts payable within a year, your equity investments made, etc. In a typical start-up firm, owners' investments may be temporarily shoring up the lack of sufficient accounts receivable.
Current Assets Fixed Assets Cash Inventory Current Liabilities Accounts Payable Bank Provisions
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Conclusion
Over the last few years, retail has become one of the fastest growing sectors in the Indian economy. The organized retail however is at a very nascent stage though attempts are being made to increase its proportion to 15-25%by the year 2011bringing in a huge opportunity for prospective players. The sector is the largest source of employment after agriculture, and has started to penetration into rural India generating more than 10% of Indias GDP.
Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still continue to score over modern formats primarily due to the convenience factor.
It is true that India is moving towards to become developed country. Retail sector play a very crucial role in it. With the help of the report we know about the retail sector in India & how to make a business plan for a firm& what are the planning & Strategies required for making their effective. It opens our horizon about business planning. This is a very good experience of my to making a report of YOGESWAR GENERAL STORE.
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ANNEXURE
WEBSITES: WWW.GOOGLE.COM WWW.SCRIBD.COM WWW.MARKETINGTEACHER.COM BOOKS: MARKETING MANAGEMENT-ANNAMALAI UNIVERSITY FINANCIAL MANAGEMENT- ANNAMALAI UNIVERSITY RETAIL BOOK-PG PBS MANAGING FINANCIAL SERVICES-PGPBS
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