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SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS

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Business plan for ABC Retail Limited

2005 - 2007

 Copyright Teneric Limited 2005 – all right reserved.

.......................................................................................................................................................6 Competition ............................................................................9 Objective 1: To develop retail business ....................................................................................8 Opportunities..............................................................................................................................................................................................................................................................................................................................................................................................SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) TABLE OF CONTENTS EXECUTIVE SUMMARY................................................................................9 MANAGEMENT TEAM/ HR.........................................................9 Objective 3: Launch...................................................................................................................................................................................................................................................................................................................8 Strengths....................................................................................................................................8 Weaknesses....................................................................................................................................3  Copyright Teneric Limited 2005 – all right reserved.................... ......................3 ...............................................................................................................4 EXTERNAL ANALYSIS.........................................................................................................9 Objective 4 : Marketing plan..........................................3 Year 1 balance sheet.......1 Year 1 – costs forecast and profit and loss account....................................................................................................................................5 Target Customers/ market dynamics...................8 OBJECTIVES......................................................................2 Year 1 cashflow.................................................................................................................................................................................................................................................................................11 Year 1 sales forecast.............................................4 COMPANY OWNERSHIP/ LOCATION.................................................................................................................................5 The economy & business environment..............................................................................................................................................................................................5 The local market place.............................................................................................................................................................................................................................................................................8 Threats..................11 FULL FINANCIAL STATEMENTS..............................................................................................................................9 Objective 2: Recruit and train staff.......................................................4 BUSINESS MISSION......................................................................................................................................................................................................................................................................................................................9 KEY ACTIONS PLANNED FOR THE NEXT 12 MONTHS..................................7 SWOT ANALYSIS.........................................................................................................................................................................................................................

Net profits are forecast to be 33% before the salaries of the directors and before tax and interest. . Management team ABC limited is a new company set up and run by Mrs Jones.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) EXECUTIVE SUMMARY Summary ABC Limited is a new company who are planning to open a new retail business in the centre of a local village selling fashion women’s clothes and accessories. tourists and within a radius of 10 miles. ABC Limited is founded by three entrepreneurs who have 18 years retail business experience between them. We will always have an excellent selection of fashionable accessories to entice our customers into our shop on a regular basis. Mrs Smith and Mr Brown who have 18 years experience in the retail business business.  Copyright Teneric Limited 2005 – all right reserved. ABC will concentrate on the latest fashions at reasonable prices.000 with this increasing by 8-9% for the subsequent two years. We wish to become a recognised regional name in the next year but this is our starting point. The retail shop unit is secured and will be leased for 15 years with a break at 7 if so desired. Core product offerings The retail business will be a women’s fashionable establishment offering three types of product: • • • Business fashion for the new business women Fashion for middle age women who want something different Accessories for all Revenues and profitability Revenues forecasting for the first year of operation are £343. The market and business The main market sectors ABC will penetrate are women between the ages of 25 to 55 in the local area. The directors will invest £70.000 into the business at the beginning and repay these loans by the end of the first year.

ABC Limited are based at their premises at : 12 anystreet anytown anyshire AB12 99XY UK Telephone 0134 445600  Copyright Teneric Limited 2005 – all right reserved. . Mrs Smith and Mr Brown and are trading as a limited company. COMPANY OWNERSHIP/ LOCATION ABC Limited started trading in 2004 and is jointly owned by Mrs Jones.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) BUSINESS MISSION ABC's mission is to become a leading well-known woman’s fashion retail business in the local area and be first choice for fashionable business attire.

000. boosted signature products and instore restaurants RSM . particularly those of lighter clothing. . This equates to 1 in 9 (11%) of the total UK workforce.1% in April for like-for-like sales in Central London. The three-month trend rates of growth decreased from 2.9% to 4. General retail sales continue to improve although recent interest rate rises are set to cool demand. but comparisons are distorted by the 2003 figures which showed London sales still depressed but a rebound in the UK. LONDON RETAIL SALES MONITOR CENTRAL LONDON RETAIL PERFORMANCE STILL AHEAD OF UK MAY 17. home accessories and flowers Source: BRC RETAIL KEY FACTS • • • • • • • There are some 188. UK retail sales were approximately £235. Cooler weather this April compared with last year's warm spring also hit sales. The three-month trend rate of growth edged down from 5.9% on a total basis. During the last decade. (Data for 2002 yet to be released) Over a third of consumer spending goes through shops. Easter boosted sales of perfumery. employment in retailing has grown by over 140. compared with a year earlier. 2004 Retail sales in Central London during April increased by 3.though less than in March 2003 . when sales were still affected . London sales were still slightly better than in the UK as a whole.3% in March to 5.RETAILERS REMAIN CAUTIOUS IN A CONTINUING COOL CLIMATE MAY 11. Year-on-year comparisons were still being artificially boosted by the weak April 2003.6 billion in 2003.by the Central Line closure and the Iraq war.7% in April for like-for-like sales.6% of Gross Value Added (GVA) in 2001. helped by an increase in tourist numbers. Improved footfall.6% in March to 1. The retail industry employed over 2. Source: Office for National Statistics The local market place  Copyright Teneric Limited 2005 – all right reserved.000 retail outlets.9% on a like-for-like basis. 2004 Retail sales in the UK during April increased by 1. as at the end of September 2003.8% for total sales. Over the last five years. sandals and gardening products.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) EXTERNAL ANALYSIS The economy & business environment The UK economy has steady growth and the outlook is for this to continue. and from 5. and showed growth of 4.7 million people.5% on a like-for-like basis compared with April 2003. Retail accounted for 5.700 VAT-registered retail businesses in the UK operating in more than 310. the price of shop goods rose by 20 percentage points less than the overall level of inflation. when trade was hit by the Iraq war – though to a lesser extent than in March.

SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) Research shows that there are 25. Target Customers/ market dynamics Customer group 1 End customer is • Business women End customer need • Stylish and practical business clothing • Excellent personal service and value for money Products targeted to this group • Business clothing • Accessories Customer group 2 End customer is • Women between the ages of 25 to 55 End customer need • Fashionable clothing • Excellent personal service and value for money Products targeted to this group • Fashionable clothing within the seasons • Accessories We will target customer group 1 with customer group 2’s product  Copyright Teneric Limited 2005 – all right reserved.000 women aged between 25-55 earning over £35.000 per year in the catchment area we are targeting.250 local businesses we have targeted for the marketing launch for business attire. . There are 1.

 Copyright Teneric Limited 2005 – all right reserved. In the immediate area there is no retail business that is catering for our target audience.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) Competition Competitor summary There are many retail businesses in existence today. In the next town there is an established outlet but there is a need for a new and exciting venture. . We aim to flourish on reputation.

. 2. To be the business women and fashion conscience clothing retail experience in the local area Threats 1. 4. No presence 2.000 in addition to the building Weaknesses 1.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) SWOT ANALYSIS Our strengths and weaknesses are shown relative to our competitors. 3. Weaknesses are weaker than the competitition. 3 retail business professionals with 18 years experience Excellent location for presence of building Excellent links with suppliers from current experience Start-up funds of £37. Strengths 1. No credibility with target audience Opportunities 1. More similar retail businesses open due to our success  Copyright Teneric Limited 2005 – all right reserved. Strengths are shown if they are better than the competitors.

Objective 4 : Marketing plan In addition to the opening night. We have allowed £4. Objective 3: Launch The launch event is all too important for every retail business.000 of stock (cost price) Operations: The retail business will be open from 9am to 18.30 Monday to Saturday and 11. We will invite local and national business women and prominent business men’s wives as well as local press. The launch event can make or break you.000 for the opening night and initial marketing plan Key actions planned for the next 12 months  Copyright Teneric Limited 2005 – all right reserved.00am to 17. We will have the launch event on September 15th in the evening. Objective 2: Recruit and train staff We will recruit two shop assistants as well as a shop manager. As our target audience is business women we need to be opened when they are not at work. To ensure our customers have a positive experience we will not be using part time labour. This will develop interest and communicate that we will be open for business: Local/ free press – Teaser adverts 4 weeks before opening moving to stronger advertising closer to launch Location – Large board advertising opening night Local businesses – Direct mail to directors of local companies and local business women Local magazines – There are three local glossy magazines we will take advertising and have the editor write a feature about the new retail business.000 as we will use contractors who we know and will charge much less and produce an excellent results. The total fitting is estimated to cost £13.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) OBJECTIVES Objective 1: To develop retail business The location is already signed up for the lease to begin in two months time and has been used as an existing retail business previously.00 on Sundays. We will recruit three weeks before opening so there is enough time for training everyone. We will therefore put into place a comprehensive marketing plan to commence 4 weeks before launch. we need to ensure we have good presence in the local market place to kick start our business. . We will purchase £20.

Year 3 .000 250.000 150.000 100.000 £20.000 50. £13. 3.000 £ 0 £ 4.000 200. 2.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Develop retail business Recruit/ train staff Marketing plan Launch night Strategies Cost Responsible Completion date 1.000 400.000 Mr Jones Mr Brown Mr Jones Mr Smith Aug Sep Sep Sep Develop retail business Purchase stock Recruit/ train staff Marketing plan/ launch night Sales by year 500.000 300. 4.000 350.000 450.000 0 Accessories Clothing Year 1 Year 2  Copyright Teneric Limited 2005 – all right reserved.

.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) Management Team/ HR Mr smith is CEO and PR spokesperson/ media developer Mr Brown is operations officer Mrs Jones is Marketing Officer Full financial statements  Copyright Teneric Limited 2005 – all right reserved.

900 16.600 28.600 28.800 Accessories Buying customers per day Average purchase price  Copyright Teneric Limited 2005 – all right reserved .SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) Year 1 sales forecast Month 0 month 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8 month 9 month 10 month 11 month 12 Total 26 26 26 26 26 26 26 26 26 26 26 26 10 65 10 65 10 65 10 65 10 65 10 65 10 65 10 65 10 65 10 65 10 65 10 65 16.900 16.700 11.900 16.900 16.600 28.600 28.900 16.600 343.600 28.700 11.600 28.600 28.900 16.200 Revenues Days open in month Clothing Buying customers per day Average purchase price Total clothing 202.700 11.900 16.900 16.900 16.700 11.900 16.600 28.700 11.700 11.600 28.700 11.700 11.700 11.600 28.700 11.700 140.700 11.900 16.600 28.400 Total revenues 28.900 18 25 18 25 18 25 18 25 18 25 18 25 18 25 18 25 18 25 18 25 18 25 18 25 Total accessories 11.

653 8.750 17.653 8.125 4.000 1.500 500 250 250 146 50 2.653 8.440 686 11.731 0 1.440 686 Staff (2 members + manager) 4.731 0 1.731 1.731 0 1.653 8.653 8.653 103.500 500 250 250 146 50 2.947 19.17.500 500 250 250 146 137.500 500 250 250 146 50 2.125 Misc Rent Rates/ elect etc Insurance Marketing Accountancy/ legal 50 2.947 19.500 500 250 250 146 50 2.947 19.440 686 11.947 239.440 686 11.500 500 250 250 146 50 2.000 8.440 686 11.440 686 11.731 0 1.440 686 11.367 .067 Costs incurred Direct cost Average cost of sale (40%) Credit card fees 3% on 80% Start-up costs Total costs Net profit 17.731 0 1.947 19.731 0 1.500 500 250 250 146 50 2.922 83.500 500 250 250 146 50 2.922 6.653 8.922 6.125 4.440 686 11.947 19.947 19.922 6.125 4.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) Year 1 – costs forecast and profit and loss account Month 0 month 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8 month 9 month 10 month 11 month 12 Total 11.440 686 11.653 8.731 0 1.947 19.922 6.653 8.947 19.500 500 250 250 146 50 2.922 6.653 8.922 6.17.125 4.947 19.000 6.731 1.922 6.237 49.000 3.125 4.125 4.440 686 11.731 1.440 686 11.833 1.500 500 250 250 146 50 2.000 Tax Dividends Net profit after tax .000 3.947 19.731 0 1.947 19.922 6.731 0 20.767 - 6.922 6.922 6.000 19.125 4.280 8.125 4.653 8.125 4.500 500 250 250 146 50 2.125 4.922 6.653 8.500 600 30.440 686 11.125 4.500 500 250 250 146 50 2.000  Copyright Teneric Limited 2005 – all right reserved .

19.10.000 5.000 22.947 - - 70.809 1.19.000 22.instant 40.000 3.000 22.947 .720 .773 4.20.256.198 1.000 22.720 - .947 .880 5.720 .073 .768 12.19.20.809 Year 1 balance sheet  Copyright Teneric Limited 2005 – all right reserved 1.947 .768 12.720 - 5.462 5.420 70.720 .198 1.157 2.947 month 7 month 8 month 9 month 10 month 11 month 12 Total 4.720 .720 22.19.947 .880 5.000 .000 .720 5.000 5.546 3.19.851 504 15.10.19.947 .19.next year Dividends instant Closing balance 3.947 .880 5.10.115 8.19.10.880 5.720 .720 .000 228.157 2.17.773 4.947 Cashflow Opening balance Directors loans Loan repayments Credit card income + 8 wks 80% cash receipts Stock purchase Costs .851 504 4.000 15.720 - 5.947 .SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) Year 1 cashflow Month 0 month 1 month 2 month 3 month 4 month 5 month 6 3.19.000 22.000 22.947 .800 68.367 Tax .000 22.720 .947 .000 5.880 5.000 .880 5.19.420 21.880 5.546 3.462 5.19.880 5.10.000 22.880 5.000 22.880 5.19.000 3.115 8.640 .073 21.

15.760 78.844 63.000 .000 .731 23.13.528 12.144 66.760 68.000 .000 Tax creditor Assets .000 .144 66.000 10.067 Shareholders funds P&L account -  Copyright Teneric Limited 2005 – all right reserved .767 60.114 .689 57.844 63.000 45.073 20.767 10.10.533 56.000 70.000 55.689 17.875 8.611 504 20.000 45.000 45.000 - 70.55.378 55.773 20.533 56.222 59.SAMPLE BUSINESS PLAN FOR ABC LIMITED 2005-7 (RETAIL BUSINESS) Month 0 month 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8 month 9 month 10 month 11 month 12 3.000 45.20.222 59.922 - 66.760 66.000 45.000 70.455 38.000 23.300 52.000 .760 70.378 45.461 - 5.000 20.000 60.575 .222 5.000 - 3.264 4.067 55.20.000 35.000 - 44.144 66.000 .30.000 .180 21.922 .000 22.653 .10.078 Directors loans repayments net loan 40.922 66.809 20.liabilities - 1.000 45.000 25.35.000 70.000 70.70.17.306 .000 44.000 .000 70.000 70.455 53.17.760 67.611 24.000 45.383 .611 59.653 4.611 59.768 20.70.767 60.569 1.000 .000 40.000 70.000 15.036 .760 74.917 2.760 86.533 31.844 .12.192 - 6.689 57.000 70.462 20.760 70.000 Total 23.306 3.000 40.000 70.546 20.000 45.000 50.958 1.851 20.067 3.760 68.000 .60.45.300 57.000 45.760 69.000 5.000 70.157 20.65.455 53.198 20.222 59.300 57.19.833 8.000 45.760 67.767 Balance sheet Cash Stock Debtors Current assets 3.156 3.378 55.115 20.420 20.000 45.000 .880 46.10.000 70.

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