Business Plan
Personal Background 1
Opportunity 2
Problem/Challenge 2
Solution 2
Management Team 3
Success Factors 3
Marketing Plan 4
The StreetCorner Brand 4
Promotions Strategy 4
Operations Plan 5
Functional Roles 5
Milestones 5
Financial Plan 6
Revenue and Cost Drivers 6
Capital Requirements and Use of Funds 7
Key Assumptions 7
1 st Year - 3 Year Annual Income Projections 9
Summary 9
Personal Background
Accomplished Human Resources professional with a robust
background in sales and customer service in the field of Hospitality,
Retail Sales. Offering exceptional interpersonal interaction and conflict
resolution skills. Highly organized and motivated, with a renowned
ability to motivate, inspire, and direct others in a supportive environment.
Familiarity with maintaining records and reports.
as well as complying with administrative standards including
extraordinary management skills to supervise more than 10 employees in
same time according to organizational culture.
Opportunity
Problem/Challenge
Grocery shopping has become commonplace, as simple and expected as
getting gas or needing to feed yourself and your family members. People want
to come in, grab things, and get out and move on with their day, but there are
no groceries stores within a 2 mile plus radius. The nearest grocery store is
2.6 miles and that is Albertson’s. Other grocery stores are:
1. Albertson’s : 2.6 miles
2. Walmart Supercenter : 2.7 miles
3. Winco : 3.5 miles
4. Aldi’s : 7.0 miles
Solution
Street Corner Urban Market is the convenience store of the 21st Century
future, fulfilling a need that will continue to exist into the future – the need for
flexibility, change as needed by the community. Street Corner Urban Market
will be the first store that works with the community and fulfills their daily
needs in an urban outfit.
Customer Focus
The Company will primarily serve the residents who live within the Historic
Downtown Carrollton development as well as commuters travelling through
the area. The demographics of these customers are: Historic Downtown
Carrollton, is mixed-use community encompassing 4 upscale and modern
apartments (Lux on Main, Union at Carrollton Square, LYV Broadway and
Switchyard) with 2000 residents also a strong surrounding residential density
within a mile (±5 minute walk), as well as the existing daytime population
(11,1000)., new businesses, restaurant, bars including high traffic 3 Nations
Brewery, Babe’s Chicken Dinner House and Downtown Carrollton Dart
Station.
Management Team
Vikram Dhillon
The Company is led by CEO, Vikram Dhillon provides attentive and honest
guidance to potential owners looking to open a Street Corner store. By
conducting sophisticated research to locate properties that are a good fit,
arranging meetings with landlords, and negotiating lease agreements on
behalf of the franchisee, he demonstrates a commitment to the best interests
of each potential store owner.
Currently, Vikram owns two stores in the Phoenix, AZ area and would like to
develop 12 to 19 additional locations in the next five years — with the end
goal being to change the industry with Street Corner’s fresh, innovative store
concepts.
Success Factors
The Company is uniquely qualified to succeed due to the following reasons:
● The Downtown Carrollton area is in massive need of a convenience
store.
● The location is in a high foot traffic with significant numbers of
passersby each day, residents, and business of the community.
● The management team has experience running convenience stores and
running startups in the IT industry.
● Convenience stores are highly successful in communities throughout
the United States.
Marketing Plan
The Street Corner Urban Market Brand
The Company brand will focus on the Company’s unique value proposition:
● Convenient location
● Significant personal attention
● Moderate price point
● Friendly, customer-focused environment
Promotions Strategy
The Company expects its target market to be individuals working and/or living
within a 5-mile radius of its location and transit commuters. Street Corner
Urban Market promotions strategy to reach these individuals includes:
Local Publications
The Company will announce it’s opening several weeks in advance through
publicity pieces in multiple local newspapers and publications. Regular
advertisements will be run to maintain exposure in relevant markets.
Community Events/Organizations
The Company will promote itself by social media (Facebook, Instagram and
Twitter) Yelp, Google Also by distributing direct marketing mailers to nearby
households, and participating in local community events, such as school fairs,
local festivals, and sporting events.
Commuter Advertising
Advertising on heavily traveled commute routes are an opportunity to alert
large numbers of working individuals and residents of the store’s opening.
Operations Plan
Functional Roles
The Company will be open 7 days a week. It intends to employ stocking
personnel, cashier, and supervisor to fulfil the daily customer needs.
In order to execute on The Company’s business model, it needs to perform
several functions:
Service and Administrative Functions
● Stock and inventory management
● General & administrative functions including bookkeeping
● Promotions and marketing
● Sourcing and storing products
● Hiring and training staff
● Cleanliness of the store
● Exceptional customer service
Milestones
The Company’s long-term goal is to become the go-to upscale convenience
store in the Historic Downtown Carrollton area. We seek to become the
standard by which other providers are judged.
The following are a series of steps that lead to the company’s vision of long-
term success. The Company expects to achieve the following milestones in
the following months:
● Finalize lease agreement
● Design and Build out the Store
● Hire and train initial staff
● Kickoff of promotional campaign
● Launch the opening of the store
● Reach break-even within 6 months or possibly earlier.
Financial Plan
Revenue and Cost Drivers
The Company’s revenues will come primarily from the items sold.
As with most businesses, cost of goods sold, and labor expenses are the key
cost drivers for convenience stores. Employees are paid through a
combination of salaries and bonuses, rewarding them for performance and
making them an active part in business retention and development.
The major cost drivers for the company’s operation will consist of:
● Cost of goods sold
● Wages
● Lease
Ongoing marketing expenditures are also notable cost drivers for The
Company.
Capital Requirements and Use of Funds
The Company is seeking a total funding of $426,000 to launch its convenience
store. The capital will be used for funding capital expenditures and location
build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
CATEGORIES TOTAL
Design Fee $10,000
Franchise Fee $30,000
Millwork $85,000
Equipment $140,000
General Construction $400,000
Permit Fees $8,000
Inventory $75,000
Architect and Engineering $13,000
Tenant Improvement ($255,000)
Total investment of $506,00 of which owners are investing $80,000 and
seeking a loan of $426,000.
Key Assumptions
The following table reflects the key revenue and cost assumptions made in
the financial model:
● Store inside Sales 70.81%
● Wine and Beer 15.34%
● Fresh Food 22.45%
1st Year - 3 Year Annual Income Projections
INSIDE (C-STORE) SALES YEAR 1 YEAR 2 YEAR 3
DAILY INSIDE SALES $3,009 $2,912. $3,733
MONTHLY SALES. $91,506 $88,552 $113,509
ANNUAL SALES. $1,098,078 $1,062,629 $1,362,103
DAILY FF SALES YEAR 1 YEAR 2 YEAR 3
DAILY FF SALES. $2,875 $3,291 $3,651
MONTHLY FF SALES. $87,415 $100,089 $111,012
ANNUAL FF SALES. $1,048,986 $1,201,068 $1,332,141
GROSS PROFIT MARGIN 60% 60% 60%
BARISTA
DAILY SALES $1,018 $1,191 $1,327
MONTHLY SALES. $30,952 $36,225 $40,364
ANNUAL SALES. $371,430 $434,700 $484,372
GROSS PROFIT MARGIN 75.00% 75.00% 75.00%
TOTAL SALES. YEAR 1 YEAR 2 YEAR 3
DAILY SALES. $5,884 $6,203 $7,383
MONTHLY SALES. $209,874 $224,866 $264,885
ANNUAL SALES. $2,518,493 $2,698,398 $3,178,616
% OF INSIDE SALE 70.81% 70.11% 69.26%
% OF BEER & WINE 15.34% 15.83% 16.44%
% OF FAST FOOD 22.45% 24.88% 26.01%
TOTAL % OF SALES 108.60% 110.82% 111.72%
VENDOR SERVICES YEAR 1 YEAR 2 YEAR 3
ANNUAL GROSS PROFIT $36,000 $48,000 $60,000
NOTE: VENDOR SERVICES include ATM & Lottery Commissions, Western
Union, DSI (direct sales items) like phone calling cards, etc.
SUMMARY
SFS Corporation assumes no responsibility or liability for the above
projections. However, out of the number of studies completed with an
operational history, our estimates have averaged a 3% variance between
projected and inside sales. SFS IS BASING THE ABOVE PROJECTIONS
ON ACCURATE DATA PROVIDED BY OWNER. SFS IS ASSUMING
COMPETENTMANAGEMENT, AGGRESSIVE MARKETING & PROMOTION
BY THEOWNERS.
SFS feels the main key to this site’s success will be in attracting the
surrounding residential density within a mile of the site and the surrounding
daytime population with a fully designed and staffed facility offering expanded
grocery, beer & wine and prepared food options.
Depending upon the amount of residential density and daytime population, the
average transaction, and the fast-food draw, SFS feels the enclosed Inside
Sales, Fast Food and beer/wine projections could be exceeded by up to 25%
or possibly more in all three years, especially with an all-inclusive loyalty
program. However, if the store is not fully designed, expanded grocery, fast
food and beer/wine not offered and an all-inclusive loyalty program.