BUYME SUPERMART

Entrepreneurship and Small Business

Business Plan

Presented by:
Essa Iqbal
Sooraj Khetpal
OUTLINE OF A BUSINESS PLAN

INTRODUCTION
Executice Summary
Industry Analysis
Description of Venture
Marketing Plan
Operational Plan
Organizational Plan
Assessment of Risk
Financial Plan
Debt financing:
Appendix
 
INTRODUCTION
 Name: Buy me Super Market
TAG lINE: …meets your daily needs
Address: Main sea view, Opposite Mcdonalds
Principals:
 
Essa Iqbal (GENERAL)
Suraj Khetpal (GENERAL)
 
Nature of Business:
 
The business is basically service oriented in the form of a retail store that aims to
provide a wide range of consumer goods.

Mission: “To deliver the best product and shopping experience to our customers and
to strive to build long term relationships.

Vision: To be the biggest super market retailer in Pakistan by 2020

 
INTRODUCTION
The start up capital for Buy Me Super market is estimated to be Rs. 10,000,000. The
amount of capital will be provided through personal funds. Other sources of finance will
be private investors aka business angels.
 
Statement of Confidentiality:
 
This report is confidential and is the property of co-owners listed above. It is intended
to be used by only those people whom this plan is presented and sold to. Any illegal use
by any person or organization other than licensed by or given permission by the owners
of the company would be liable for legal action resulting in financial penalty and/or
imprisonment.
INDUSTRY ANALYSIS

Future outlook and trends

 
The political instability of the country serves to be a major hindrance as far as
economic growth is concerned. However, the future outlook of the retail market
particularly supermarkets such as “Buy Me” supermarket looks promising.

B. Analysis of Competitors

The Core Competitors of our super market would include:

Naheed Super Market
Imtiaz Store
Chase
Aghas
Other Competitors would include:
EBCO Super Market
Time Medico
INDUSTRY ANALYSIS
C.Market Segmentation

When devising a marketing strategy for a venture such as a retail store, it is important
to keep in mind the target market that one plans to cater to. The decisive factors
would include :
Demographics
Socio-economic

D. Industry and Market Forecasts

The retail industry is one that would be least affected by changes in political stability
or changing economic patterns. This is primarily because a lot of items that would be
sold in the store would be inelastic goods and therefore, regardless of the changes in
price, the demand would not change significantly.
DESCRIPTION OF VENTURE
 
Our products will constitute of the following:
•FMCG
•Food and Beverages
•Groceries
•Fresh Vegetables and Fruits

Whereas our services would include

•In-store services
•Home Delivery

SIZE OF THE BUSINESS

Initially the size of the business would be kept small since it is a partnership and due to
lack of resources, mainly funds, we plan to start it at a very low cost. Another
advantage for keeping it small initially would be the convenience factor. Both the
partners will have a close watch on the operations inorder to run the business
smoothly.
Independence of owning a small business would help us make our own decisions, take
our own risks and reap reward for our efforts.
BUY ME STORE LAYOUT

We plan to hire 10 employees and divde them in two teams under 2 managers. Team 1
would be the sales team which would focus on the customers and team 2 would be the
operations team which would look after the stock.
There will be 2 cash counters to serve the customers, a warehouse, a separate area for
fresh produce and 2 entry and exit points
 MARKETING PLAN

 
Pricing
Since the venture would be new, in order to attract consumers, the pricing strategy
would have to be competitive. BuyMe Supermarket would have to offer prices that
are a little less than those of its core competitors in order to develop some form of
consumer loyalty for itself.
 
Distribution
 
The distribution network should be such so as to ensure that a wide variety of
products is available to the consumer to choose from. Also, the product should be
available when it is most required. The store would also provide free home delivery
services for those customers who prefer to shop from the convenience of their
homes.
 
MARKETING PLAN
Promotion
 
In order to introduce the store to the market, billboards can be put up at a few majors
points in the city where the flow of customer traffic would be at a maximum. Within
the store, products can be promoted using Kiosks, Standies and mobiles. Flyers could
be put advertising low prices or discounts. Moreover, a store catalogue could also be
made to list all the products available in the store, together with their prices and
availability and any possible promotional offers.
 
Product/Service Forecast
 
It is important to have a fair idea of which product will sell more according to seasonal
variation. Products cycles should be studied in great depth to help with analyzing and
predicting the market’s conditions. If a certain product’s sales are expected to increase
at a certain point in time, then it must be ensured that its supplies are available well in
time so that there are no shortages and customer satisfaction is guaranteed.
OPERATIONAL PLAN

A. Description of company’s operations.

Front end operations (In- store)
Back end operations (Warehouse)
 FIFO principle.
 Operational plan also include suppliers.

FRONT END

BACK END
OPERATIONAL PLAN

B. Flow of orders of Goods and Services

 strict control on the supply and demand
 Buffer stock
 Expired stock will be returned to suppliers
 Services would include timely delivery of products
 Clear correspondence and communication between
management and the staff

C. Technology Utilization
 state of the art technology
 Scanners
 CCTV cameras
ORGANIZATIONAL PLAN

A. Form of Ownership
 Partnership form (Genral Partners)
B. Identification of Partners
 Essa Iqbal – General Partner
 Suraj Khetpal –Genral Partner

C. Management Team Background

 Two teams; sales and operations
D. Roles and Responsibilities of the Management
 Supervise both teams
 managers would report to partners
 Managers also have to deal with the suppliers and their exclusive
customers.
 The members of the teams would be at the lowest level of the chain of
command
Organizational Chart

Top Level Partners

Sales Operations
Middle Level
Manager Manager

StaffBottom Staff Foreman

ASSESSMENT OF RISK

A. Evaluate Weakness of Business

 lack of resources include (lack of funds and lack of manpower)
 taxation hurdles and no credit to customers
 a lack of authority
 Employer turnover might be high
 Competition risk

B. New Technologies
 New technologies would serve to be a risk to the company
 Thus competitive edge over BUY ME
FINANCIAL PLAN

Investment by Proprietor

Sooraj Kumar & Essa Iqbal

2000,000.00+2,000,000.00= 4,000,000.00

Bank Borrowing 1000,000.00

Business Angels 5,000,000.00

Total Investment (Rs) 10,000,000.00

FINANCIAL PLAN

 BUY ME retail store will attain its finances through 10% debt and
90% equity finance.
 The partners will contribute up to Rs. 4 million
 Bank borrowings will be of Rs. 1 million
 Rest of capital would be covered from business angels (venture
capitalists) i.e. Rs. 5 million
 Total of investment would be Rs. 10 million
 Due to initial high set up cost, we expect the company to make a
loss of Rs. 566,000 in first year
 We expect the company to have Net Asset Value(NAV) of
3,434,000
FINANCIAL PLAN
 We estimate the business to pay off after first year at a
growth of 15% for next five years as per growth estimated by
economic survey of Pakistan.
 We expect the balance sheet size to grow by 7% after first
year.
 APPENDIX
PRIMARY RESEARCH

Survey:
 Sample Size 50

Target:
 Households
 Mothers and others

Outcome:
 Positive
 Convenient
 Delighted to know that buyme would offer home delivery

SECONDARY RESEARCH

 Trends and Data of Supermarkets in Pakistan

 Market Research
 Magazines: Articles and Analysis