Do you need help starting a supermarket? If YES, here is a sample supermarket Business Plan.
Buying and selling are what we all do every day directly or indirectly, we either sell a product or sell our service to others just like a day job.
For the purpose of this article, we would, be focusing on how to open a supermarket.
A lot of times, people encounter problems writing their business plans. Our supermarket business plan sample will guide through the process.
SUPERMARKET BUSINESS PLAN SAMPLE
According to Oxford dictionary, a supermarket is a large self-service store selling food and other goods. Definitely, it is products that are sold in supermarkets. If you have a passion for selling, i.e retailing other peoples product, then it is better you start up your own supermarket chain.
Supermarket business ideas are very lucrative business opportunities if it is sited in a good location and has the product people living around that locality wants.
Complete Model of the Supermarket Business
Factors to consider before setting up a supermarket:
- How much capital do I have?
- Where can I get goods to stock my supermarket?
- Where would I site my supermarket?
- How many staffs do I need?
- How much net profit do I expect daily?
- What commodities and products would I sell?
- How would I arrange my shelf?
- What machines do I need?
Answers to these questions on opening a big or small supermarket, which would be a prototype for this article is seen below:
How much capital do I need to have to open a supermarket?
The answer to this depends on your financial ability but it would be better you start up with something that can at least get the supermarket ready and get a little number of goods.
If the supermarket I setup remaining just goods, then you can go to large-scale wholesalers for goods on credit, just ensure you keep to the time frame you agreed on for the payment, he or she would be happy to give you more if you follow the agreement you both have.
Where can I get Goods to stock my Supermarket?
These have been answered above but you can also get a loan from a bank to start up a supermarket, but to do that, you must have a very good mini supermarket business plan you would show to the bank. But these days banks do not give loans without collateral, so if this option is what you are going for, you need to get one.
Where would I site my Supermarket?
This is a very critical question to the success of your supermarket business model. Things to have at the back of your mind before selecting a site;
Closeness to residential areas.
Because these people living in these areas are those that would buy from your supermarket.
Availability of another supermarket.
Because you don’t want to start with a supermarket and face the competition from an already existing supermarket.
If there is a supermarket stocking general household goods, you might decide to stock more of movies, and little of household good, except you are ready to give either N5 discount from the normal selling price to attract more customers.
Availability of road:
This is very important because if you want customers, your supermarket should be accessible.
How many Staffs do I need to manage a supermarket?
You need to determine the number of staff you need if it is a mini supermarket you might need just one staff for a start but if you want to run a large scale supermarket, you need at least five to ten staff members. Also, ensure you enlighten your staff on how to handle customers and how to keep account of sales and purchases.
How should do I expect daily as net profit?
This is very important, you set a business goal, for instance, in three months time, I would make a profit of N10,000 naira. You work towards it.
What commodities and products would I sell?
This has been talked about before, but in addition, you stock goods that of high demand, you make more sells and more sells implies more profit.
What machines do I need?
When starting a supermarket business in Nigeria, It is important you have an automated machine for your cashier. But if you have a low capital, you can get a sales book for a start. Also, CCTV cameras are important mostly for large-scale retail supermarkets. Because loss to thieves is the last thing you would want to experience.
Have you been thinking about starting a supermarket business but don’t know how to go about it? A common feature of an average street in any neighborhood has got to be the Supermarket.
Supermarkets play the important roles of being the supplier of last resort as well as fulfilling the need for convenience buying at short notice and even distance.
In times of economic boom or boon, you will discover that Supermarkets have always remained a stable form of investment, especially as it guarantees a steady flow of cash transactions.
Here is a sample business plan for starting a mini retail supermarket.
1. Secure an Accessible Location for the Store
Location is one factor that can determine the success or failure of your proposed supermarket business.
Supermarkets are viewed as notable landmarks in the communities that they are situated in. This is because they provide everyday items that people need. You cannot view it in a different light.
In starting your supermarket business, select a location that is easily seen and reached by not only residents in your vicinity but also by people who stay outside your neighborhood.
2. Cultivate a Good Work Relationship with Wholesalers
There is a thin line between succeeding and failing at running a supermarket business. And that line is how you are able to offer discounted products and items to your customers. To achieve this, you will have to be able to buy your wares at discounted prices yourself, in order to make them affordable to your customers.
Depending on the level of interaction, you could receive the goods in trust for payment at a later date or you could make some part payment. Either way, your supermarket business will flourish, once you are able to secure the supply end of the business.
3. Have an Efficient Cash and Stock Inventory System
To successfully run a supermarket business, you will have to institute a robust accounting system for both your inventory flow as well as your daily cash earnings. This is important because a supermarket is usually stocked with numerous items, so you will have to top on with record taking, especially when you have staff under your employ.
In modern times, there is inventory management software you can incorporate into your business. In addition, you can deploy POS machines to enable you to compute your daily cash inflows. An extra precaution that is gaining ground in the Supermarket business is the electronic tagging of your products, which is fed to a central database.
4. Engage Honest and Competent Staff
This point follows from the point 3 above. One of the major hurdles confronting the successful running of supermarkets is the activities of dishonest staff. A solution is to hire individuals that you can obtain recommendations is obtaining referees and guarantors, who will vouch for the integrity of the employee.
They may also be liable to foot any costs incurred by the misdemeanor of the said staff.
5. Sell Yourself
While is it true that a supermarket only stocks products and items for sale, it is also important that you cultivate relationships with your customers. Every so often, you and your staff should wear a smile, ask about the welfare of the customer and their family, accede sometimes to the odd request for a further discount and generally try to connect with everyone on a unique level.
Experience shows that people are much more drawn to the shopping experience more than the item itself. You will also be growing a list of life-long loyal customers.
6. Install Security Systems
As your supermarket business grows, it will be wise to invest in modern security systems and gadgets. Such equipment includes CCTV, smoke detectors, burglary systems amongst others. With CCTV placed around strategic areas like around the product shelves or the cash registry point.
While you want to run an open and friendly supermarket business, you must take into consideration the fact that the society still has rogue elements and you must ensure against that.
7. Insure your Business
To successfully run your supermarket business, you will need to plan for the unforeseen. Such could include a fire outbreak, burglary, destructive behavior during protests, natural disasters or even the death of you, the owner.
Planning for such unexpected events will entail procuring insurance coverage to mitigate such losses. Many insurance firms now offer a deluge of insurance services for traditional and more modern businesses.
A supermarket is an ideal venture to insure because of the daily turnover you generate and the total volume of transactions that are conducted in any given period.
Conclusively, it is important to register your supermarket business with the government before starting up but on the other hand, you might startup and register later, also, the backbone of every business is having a principle.
Principles such as opening your supermarket on time and if possible at the same time every day, it would make your customers know you are available at a particular time every day.
Also, it is important you set goals that improve supermarket business and work towards it, hard work pays. Also, remember to stock products that are needed by your customers.
MINI SUPERMARKET BUSINESS PLAN EXAMPLE
This sample contains the most important aspects of starting a business. While using this for guidance purposes, you are able to develop your sample business plan for supermarket that will help in the success and growth of your business. Let’s get straight to business!
- Executive Summary
Mabel Supermarkets Inc. are a chain of stores which will be located in the heart of the ever bustling Manhattan, New York. Our model of supermarkets will be spread around the city of Manhattan to take advantage of the population by taking care of their needs. These stores are licensed and will be well stocked at all times.
We have entered into an agreement with manufacturers and major suppliers that enables us stock goods with attractive profit margins. Stocked goods will consist of mainly of consumables with highly attractive prices well within the reach of all shoppers.
We consider our workforce and clients as our most prized assets. This is because a well motivated workforce will give their best to the provision of excellent services which in turn brings in more clients. We as a business are prepared to invest in making our system one of the most efficient in the retail industry.
- Our Products and Services
At Mabel Supermarkets Inc. we offer a variety of goods and services. These consumables are the most demanded in the marketplace. They consist of everyday stuff such as groceries, clothing, fruits and vegetables, dairy products, a cold store, beverages, beauty products, healthcare products and a pharmacy.
Only reputable manufacturers and suppliers will be used. Feasibility studies conducted by us have identified these partners. We have entered into talks with them a have secured supply approvals at highly competitive prices.
- Vision Statement
We understand that the retail industry is very competitive. We are not coming in to just make the numbers. We seek to establish a supermarket brand that will soon become a household name not only in Manhattan but the United States within a few years.
- Mission Statement
At Mabel Supermarkets Inc. we are establishing a model of retail business that caters for the needs of shoppers. “Needs” as used here refers to providing true value for money expended. As the “shopper’s friend,” we will be working with partners and manufacturers that offer both value and quality.
- Business Structure
Our business structure is centered on competence and experience. Therefore we will be recruiting qualified hands that fit these descriptions. The business will have the following positions to be filled; The Chief Executive Officer (CEO), Store Managers (for the different stores), Human Resource Managers, Cashiers and Accountants, Customer Care Executives, and Cleaners.
These personnel have a variety of roles to perform. In the course of the business, the need to structurally adjust and reshuffle may arise. This will be targeted at increased productivity. Also, there will be a need for increased manpower as the business grows.
- SWOT Analysis
To make real impact in the retail industry, we understand the need to test our business model with realities on ground. Therefore we have conducted a Strength, Weakness, Opportunities and Threats assessment. Our findings are as follows;
Our location, staff experience and professionalism and quality of services are some of our strong points. These also include other value added services such as the provision of excellent deals. These qualities make our business one of the most attractive and promising in the retail industry.
We have identified our weakness as a new business. This is in the area of financial capacity. There are retail giants who are much bigger and stronger financially. This poses a problem to our business as they can offer goods at much lower prices and still be profitable.
We are taking advantage of our location to maximize our profits. Our location offers a whole lot of opportunities in terms of potential client patronage. We are exploiting this to ensure that we convert this opportunity to real gains.
Threats are common in the life of a business. At Mabel Supermarkets Inc. we have identified economic recession as one of the main threats to our business. During such times, people are left with little or no disposable incomes which directly affect their shopping behavior.
- Market Trends
The retail industry has witnessed a huge revolution over the years. Technology has played a huge part in this. This is because people can now shop from the comfort of their homes once connected to the internet. Although this is the case, physical shopping is still preferred by a large percentage of shoppers. This means that there is a huge market to serve with our model of business.
However we are not resting on our oars as a business to key into the use of the internet. We plan to eventually introduce online shopping within 5 years from the commencement of business operations.
- Sales Projection
Feasibility studies conducted by our experts have revealed the huge profit potentials available to us. This forecasts spanned a 3-year period using available data within the industry. It reveals the following;
- First Financial Year $500,000.00
- Second Financial Year $1,100,000.00
- Third Financial Year $2,300,000.00
- Competitive Advantage
The retail industry is one that thrives on innovation geared towards customer satisfaction. To be relevant in the industry, we need to innovate.
Our greatest advantage lies in the experience of our workforce who have been participants in the industry for a significant amount of time. Their experiences and expertise is brought to bear on the efficient running of our supermarket.
To provide the best services, the workforce will need to be well motivated. We are providing a great working environment that encourages employee growth and development.
- Marketing Strategy
We will be adopting a wide range of marketing strategies to ensure that our business is very visible. This will include the use of virtual platforms made possible by the internet. They consist of a comprehensive website which is easy to navigate, social media channels, print and electronic media, word of mouth marketing as well as road shows to promote our business.
This supermarket business plan sample contains the most important parts that any business plan should have. You can easily develop your own by following the general sequence. It is important that you do not rush this process.
This is because a shabbily written supermarket plan will result in a poorly organized and run supermarket business.