101EVENTS

How to write an effective Business Plan to open a shop?

If you are thinking of opening a shop or starting a business, you need to write a Business Plan of your future business to answer these fundamental questions:

  • How long will it take me to recover the invested capital?
  • Will I be able to make a profit?
  • Will my business model be sustainable over time?

What is a Business Plan?

The business plan of a shop is a forecast document that describes business objectives and plans all aspects related to financial and human resources management, based on an in-depth analysis of the fixed and variable costs of business, market and competition. A Business Plan contains all technical details (in particular financial and economic) of investment feasibility and provides the basis for the business development.

The objective of a business plan is essentially to predict future costs and revenues for a period of at least 3 years, to understand how long our business will reach “break even point”, ie the moment in which revenues will totally cover costs and the moment from which you can really get profit from our business.

How to draw up a Business Plan in an effective way to understand if our project is sustainable?
To create an effective business plan to open a shop we must determine what costs and revenues of our business will be, in the most realistic way possible. Let’s see how:

How to predict a store’s revenues in a realistic way?
To determine revenues and therefore our shop turnover, we must first of all consider the position of our shop and the expected “flow of customers”, ie the number of customers that we expect to enter our shop.

This is possible through the use of sophisticated geo-marketing tools that allow you to know in advance the number of people who will gravitate to the store and is an essential step to make the choice of our store location in a conscious way.

In 101CAFFE’ we love to say that in order to be truly effective, a business plan must be” localized”.

But what does this mean?

It means that in order to have the most realistic forecasts possible, we base our analysis on real data that we get from actual revenues analysis of 101CAFFE’ stores with the same position and geographic location. 101CAFFE’ is a franchising network with about 120 stores and this allows us to have sales data of all our shops and analyze them constantly, with support of sophisticated tools, identifying the ideal location to start a new business.

By 101CAFFE’ the analysis of expected flows is essential to understand how much staff we will need and the relative costs, to avoid losing potential sales, due to lack of sales staff.

What costs should we consider in our store’s Business Plan?

In a business plan it is important to report the cost forecast of our future business in a realistic way. Here are the main ones:

  • rent
  • staff price
  • utilities (e.g. electricity, gas, internet subscription, etc.)
  • raw material / goods
  • transport costs
  • general costs (e.g. POS commissions, advertising and marketing costs, stationery material, etc.).
  • in Franchising, royalties due to headquarter (Franchisor)

Costs to be considered in a business plan also include financial costs incurred when starting your business for furnishings and the renovation of the shop. These costs are almost never predictable and often reserve surprises. Therefore pay attention to venue choice, checking municipal regulations and necessary requirements to avoid unpleasant surprises.

Why should you write a Business Plan to open a shop?

Business plan allows to evaluate our project financial needs and whether we have the initial capital, setting up our business in the right way, avoiding to close only after a short time from opening.
It will also be excellent to present our project in detail to potential financiers, as well as to identify banking partners who can support the financial needs emerged from the analysis.
If you wish to learn more about this topic, follow us on 101CAFFE’ social networks and on our website

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