Business Plan Report Sample

Business Plan Report

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Introduction 

Business Idea

The very idea of a “supermarket”is truly unique, in that it is a point at which wellness, value, and enjoyment all merge. Food, as well as other household goods, are sold in supermarkets (Terblanche, 2018). Often referred to as, grocery stores, supermarketsare the primary source of food for a household. Additionally, they sell essential cooking equipment, throwaway goods, cleaning supplies, sweets, alcoholic beverages, soft drinks, and self-care products. Grocery shops of today are excellent suppliers for a variety of items, making them critical local resources.

The business idea of this report will revolve around the planning of building asupermarket in Nepal which will be named as the “Pleathora”. It will achieve success as cooking and culinary arts are timeless in today’s world as well as essential in our day-to-day life.

Business Canvas

Key Partners	Key Activities	Value Proposition	Customer Relationships	Customers Segments	Channels
· Providers of IT services · Suppliers of materials.	· Management of operations · Provision of financial services. · Marketing. · Shelf arrangement in-store.	· Excellent service quality. · Comparably cheaper prices. · Great products supported by a strong marketing strategy · Excellent online sales services	· Effective customer service · Program of loyalty	· Shoppers from each class. · Shoppers that are health aware.	· Internet · Retail sales in-store
Cost Structure		Key Resources
· Value-driven and cost-cutting strategies · Innovative ideas · Through bonuses, loyalty programs, and other incentives, the firm invests in its employees.		· Financial resources (Mwambi, 2020) · Human resource · Technological resources

Objectives of the business

The objective of the business plan is generated from the thought of serving items that are fundamental to live to everyone at a moderate price so that people can easily afford to buy those (Doniecet al., 2020).

• Pleathora’s objective is to achieve a strong and large customer base by serving its customers with a good quality product at a comparably lower price range. In that way, they can achieve a loyal customer base.
• To attract the eyes of a large segment of customers through promotion, so that they can hold a strong position in Nepal’s marketplace.
• Their objective is also to serve all of their customers with a range of items so that they never miss out on any product, and even if they do, they will make sure that substitutes are always available.

Pleathora will this way retain its customers and can further captivate new customers as well. This will in turn flourish the business.

1.0 Nature of the Business

1.1 Offered Products

Pleathora as a grocery store and supermarket will primarily engage in the retailing of a broad range of food supplies, which may be fresh or packed (Hendriksen et al., 2021.). But it would typically contain a substantial quantity of non-food items, such as clothes and home goods. It will be a larger version of the conventional grocery store, and indeed will be a self-service establishment that offers a diverse selection of food and home items grouped by aisles. This will generally be divided into lanes for meat, fresh fruit, dairy, and baked goods, as well as shelf space for canned and packaged foods and a variety of non-food items such as housewares, household cleansers, pharmaceutical products, and pet supplies. These goods that will be available at Pleathora will be available at comparably lower prices than other superstores or grocery stores.

1.2 Prioritizing potential Customers

Pleathora will be a synthesis of socialistic views and business marketing, so it is needless to say that its vision and goals revolve around the very idea of serving each and everyone according to their taste, choice and range (Hatthakijphong and Ting, 2019). Their goal will converge with the initiative to build a strong and large customer base and for that, they will be serving each of their customers as per their requirements. The bill will not decide the help the customers will get from the employees but rather the very recognition of "customer" will.

They will attract the eyes of the customers through their schemes of “pricing cheaper and serving better”. A strong marketing advertisement will be done by the company to amplify their provisions so that customers of Nepal can know about them and take advantage of the products and services offered by them.

1.3 Business with a Difference

The unique selling pricing will help Pleathora to set apart to be vivid in front of the eyes of the customers in Nepal. It will also stress to the point of flaunting the culture of Nepal so beautifully at the store so that all the customers- local or international get to be mesmerized by its decor, its selection of items to be sold and a soothing ambience that will effectively impact the buyers to shop more. Pleathora will make use of the tactics of pricing cheaper, making the availability of good quality products, essentials from international markets, good services provided by its employees and rewards, discounts, lucky draw, contests etc.

It will be competing with many supermarkets of Nepal namely Saleways Department Store, Grihini supermarket, Namaste Supermarket etc (Joshi, 2019). because there are plenty of supermarkets offering more or less the same things but Pleathora will certainly stand out among those because no other supermarket will ever be able to offer the service, the range of quality products at a cheaper price and the ambience that Pleathora is planning to offer.

2.0 Market Analysis

2.1 Target Market

To streamline the company’s business activities, the customers will be identified with the help of “demographic segmentation” (Mahlangu and Makhitha, 2019). The target market of Pleathora will be generally females andthey will target customers between the ages of 24 and 35 mainly and also the age groups of 35 to 50 and also 18-24. They will make available all the necessary and luxury items that each has to ask for.

PEST analysis:

Factors	Effects
Political	· Pleathora will be heavily influenced by political factors in Nepal’s current setting. · Nepal’s unpredictable political situation, which results in bands, strikes, and, a variety of other issues, will affect the operations of Pleathora. · In the worst-case scenario, the supermarket would likewise have to close during those bands.
Economic	· In order to sustain its economics, Pleathora will need to sustain its price strategy following the country and the world’s economic cycles (Gurung, 2018).
Social	· The society of Nepal has not yet established the habit of supermarket shopping. People like to shop in nearby stores. · Plaethora’s introduction of its value and savings idea to its consumers and ambition to expand will be positive signs of the company’s growth. · If Pleathora could be capable of adapting to society and satisfy its consumers, it will be successful.
Technological	· Pleathora must make use of a variety of technology. Without technology, it would not be able to compete with established stores such as bhatbhateni (Rajbhandari and Intravisit, 2017). · The utilisation of computers, billing machines, and a variety of other technical equipment will enable it to function and serve consumers efficiently and accurately. · Thus, if it continues to invest in new technology, it may be able to keep up with the competition.

2.2 Marketing and Distribution Channels

For marketing Pleathora will constructively and efficiently use the provision of social media to amplify their offers, their rewards, bonuses, coupons, discounts, better items at a lesser price etc (Tama, 2021).

And as they are going to open a supermarket so they will be making use of the direct distributing strategy as it will better suit them.

2.3 Competitors

Strength	Weakness
· An attractive pricing strategy will help to stand out from other companies like Sideways Department Store, Grihini supermarket, Namaste Supermarket etc. · Advantages of services · Good ambience · Quality products	· Surrounded by many other supermarkets like Saleways Department Store, Grihinisupermarket, Namaste Supermarket etc. · The project is time-consuming.
Opportunities	Threats
· Opportunity to stand out among Saleways Department Store, Grihini supermarket, Namaste Supermarket etc because of the tactics outlined · Large customer base · Customers from different sections	· High competition from Saleways Department Store, Grihini supermarket, Namaste Supermarket etc (Sapkota et al., N.D.). · The threat of corona.

3.0 Supply Chain, Operations & Logistics

Pleathora will maintain good conduct with its local (and, international) suppliers and collect the goods that it planned to sell regularly so they never miss out on anything or run on fewer products. They will keep the products at warehouses known as inventory from where they can stock and restock to their departmental store and thus it can be distributed to the customers from there again (Lagorio and Pinto, 2021).

They will effectively make use of social media to attract customers.

Figure 2: Supply Chain Process in the business of Pleathora

4.0 Human Resource Planning

4.1 AboutBusiness Owners

The business owners of Pleathora are Mr X and Mr Y who are friends their college days and also did their MBA together from the Ulster University of London. They planned to open a supermarket that will contain in itself the advantages of low price, good quality, good service and a variety of products with many others supreme offers.

4.2 The Entrepreneurial Team’s Background

The entrepreneurial team will be the primary strategic decision-makers for the business, and the strategic decisions and behaviours of the business will be the result of Pleathora’s members’ cognition and interaction. Pleathora will typically be composed of members with varying levels of professional and work experience; the personal backgrounds of entrepreneurial teams will affect not only individual cognition but also how team members interact with one another, thereby affecting group cognition and collective interaction style (Rae, 2018).

Mr X and Mr Y will choose to supervise the store from the starting to the end of the day, they will need engaging, active workers to run the business. They will arrange walk-in interviews, online applications, media advertisements to find the right applicants and then choose as per the qualification.

4.3 Required Staffs

To perform the functions neatly, Pleathora will need its organisational structure; the majority include a store manager, an assistant manager, as well as department and management staff for each department (Mahardiana and Thahir, 2019).

Cashiers are the backbone of every retail enterprise, especially supermarkets. These employees are responsible for scanning items and processing payments. They accept coupons, change money, issue receipts, and do a variety of other related activities.Stockers replenish grocery shop shelves by relocating items from storerooms to their proper locations inside the store. These employees answer consumer inquiries about goods; rearrange things on shelves to make them more apparent and front-facing and price items. Products are loaded into supermarket bags by baggers. Additionally, they may transport bagged items to the parking and transfer them into clients’ vehicles. Customer service staff assist consumers with queries, sell items that are not present in the stores, and resolve customer concerns.

5.0 Legal and Regulatory Requirements

For this business trade license, property documents, Tax registration, Permanent Account Number (PAN) Registration, Value Added Tax (VAT) Registration are highly required (Pokharel, 2021). Along with this, they need to maintain their tax papers also.

But due to Covid-19 Pleathorawill face many problems as many govt institutions are partly open so they will face the problem of arranging all the documents at once, which will result in a severe time-consuming occasion.

6.0 Risks and Challenges

From the SWOT analysis, it can be assessed that it will have to face many threats as the corporate sector is always battling the harmful effects of coronavirus; Pleathora will be harmed as well. Employees are bearing the brunt of the shutdown; stores are being forced to shutter or remain partially open according to government directives. As a result, revenue will be lower than anticipated as well. The battle in Nepal’s grocery industry will also intensify as Pleathora as new businesses will enter the market. To recover from these incidents, the supermarket should implement a contingency plan that includes placing sanitization stations around the shop, providing masks, hand gloves, and shoe covers to each customer to identify them as safe, allowing the supermarket to operate effectively (Abid and Jie, 2021). To ensure their uniqueness in the market of Nepal, they have already considered numerous ideas to implement, such as providing a soothing experience through the presentation of a rich and vast cultural ambience, numerous rewards, gifts, coupons, and free items, but they can also offer free home delivery and arrange for 24x7 service.

7.0 Finance

7.1 Financial Needs for Pleathora

Starting a business venture to open a store or supermarket demands a considerable investment, based on the size of the store. The funding for the proposed business of Pleathora is required for different activities, which begins with registration and expands over a vast range of requirements that will include store designing, employee recruitment, business promotion taking a venue for the store on rent or lease, product purchase for stock and technological equipment like billing counter, CCTV surveillance and billing software.

Financial Forecast	Cost, Revenue and Profit for 2021 (NPR)
Registration	15,000
Renting or Leasing a Place	30,000
Store Design	40,000
Recruitment and Promotion	20,000
Product for Stock	55,000
Technological Equipment	5,000
Estimated Cost	1,65,000
Estimated Revenue	2,00,000
Estimated Profit	35,000

Profit and Loss Statement of 12 Months’ Period:

Pro Forma Profit and Loss (in NRP)	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 1
Sales	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	300,000
Direct Cost of Sales	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	150,000
Hidden Row	0	0	0	0	0	0	0		0	0	0	0	0
Total Cost of Sales	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	150,000
Gross Margin	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	150,000
Gross Margin %	50%	50%	50%	50%	50%	50%	50%	50%	50%	50%	50%	50%	50%
Expenses:
Payroll	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	60,000
Marketing/Postage/Other	250	250	250	250	250	250	250	250	250	250	250	250	3,000
Depreciation	100	100	100	100	100	100	100	100	100	100	100	100	1,200
Legal	75	75	75	75	75	75	75	75	75	75	75	75	900
Books/Accounting	66.66	66.66	66.66	66.66	66.66	66.66	66.66	66.66	66.66	66.66	66.66	66.66	800
Licenses/Permits/Memberships	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	1,000
Delivery/Transportation	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	2,000
Insurance	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	166.66	2,000
Rent	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	20,000
Utilities	833.33	833.33	833.33	833.33	833.33	833.33	833.33	833.33	833.33	833.33	833.33	833.33	10,000
Equipment/Supplies	250	250	250	250	250	250	250	250	250	250	250	250	3,000
Building/Equipment Maintenance	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	1,000
Payroll Taxes	0	0	0	0	0	0	0	0	0	0	0	0	0
Other	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	83.33	1,000
Total Operating Expenses	8,825	8,825	8,825	8,825	8,825	8,825	8,825	8,825	8,825	8,825	8,825	8,825	105,900
Profit Before Interest and Taxes	3,675	3,675	3,675	3,675	3,675	3,675	3,675	3,675	3,675	3,675	3,675	3,675	44,100
EBITDA	3775	3775	3775	3775	3775	3775	3775	3775	3775	3775	3775	3775	45,300
Interest Expense	250	250	250	250	250	250	250	250	250	250	250	250	3,000
Taxes Incurred	291.66	291.66	291.66	291.66	291.66	291.66	291.66	291.66	291.66	291.66	291.66	291.66	3,500
Net Profit	3,133.33	3,133.33	3,133.33	3,133.33	3,133.33	3,133.33	3,133.33	3,133.33	3,133.33	3,133.33	3,133.33	3,133.33	37,600

Balance Sheet of 12 Months’ Period:

Pro Forma Balance Sheet	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 1
Assets
Current Assets:
Cash	3548.08	3548.08	3548.08	3548.08	3548.08	3548.08	3548.08	3548.08	3548.08	3548.08	3548.08	3548.08	42,577
Inventory	1364	1364	1364	1364	1364	1364	1364	1364	1364	1364	1364	1364	16,368
Other Current Assets	416.66	416.66	416.66	416.66	416.66	416.66	416.66	416.66	416.66	416.66	416.66	416.66	5,000
Total Current Assets	5328.75	5328.75	5328.75	5328.75	5328.75	5328.75	5328.75	5328.75	5328.75	5328.75	5328.75	5328.75	63,945
Long-term Assets:
Long-term Assets	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	1666.66	20,000
Accumulated Depreciation	208.33	208.33	208.33	208.33	208.33	208.33	208.33	208.33	208.33	208.33	208.33	208.33	2,500
Total Long-term Assets	1458.33	1458.33	1458.33	1458.33	1458.33	1458.33	1458.33	1458.33	1458.33	1458.33	1458.33	1458.33	17,500
Total Assets	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	81,445
Liabilities and Capital
Current Liabilities:
Accounts Payable	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	18,845
Current Borrowing	0	0	0	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	0	0	0	0	0	0	0	0	0	0	0	0	0
Subtotal Current Liabilities	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	1570.41	18,845
Long-term Liabilities	7142.83	7142.83	7142.83	7142.83	7142.83	7142.83	7142.83	7142.83	7142.83	7142.83	7142.83	7142.83	85,714
Total Liabilities	8713.25	8713.25	8713.25	8713.25	8713.25	8713.25	8713.25	8713.25	8713.25	8713.25	8713.25	8713.25	104,559
Paid-in Capital	2000	2000	2000	2000	2000	2000	2000	2000	2000	2000	2000	2000	24,000
Retained Earnings	(5275)	(5275)	(5275)	(5275)	(5275)	(5275)	(5275)	(5275)	(5275)	(5275)	(5275)	(5275)	(63,300)
Earnings	1348.83	1348.83	1348.83	1348.83	1348.83	1348.83	1348.83	1348.83	1348.83	1348.83	1348.83	1348.83	16,186
Total Capital	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(23,114)
Total Liabilities and Capital	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	6787.08	81,445
Net Worth	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(1926.16)	(23,114)

7.2 Break-even Point

• Pleathora will begin with a total start-up cost of approximately 1,65,000 NPR including all the areas of investment mentioned above.
• The average selling price of all grocery and non-grocery products is 45 NPR
• The average variable cost for each product is 25 NPR
• Therefore, the overall profit from each product is 45-25 = 20 NPR
• To reach the breakeven point, Pleathora will target to sell 1,65,000/20=8,250 units of products
• If the company sells approx. 1000 products per month, it will need 8,250/1,000=(8.25)8 months approx.

7.3 Funding for the Business

Once the financial needs for the business start-up are recognised by Pleathora, and estimation is set for cost, revenue and profit, the business will need funding to source their finance for various requirements. There are several kinds of business-friendly funding, which assist to make the most of the financing, such as small business administration (SBA) loans, financing for equipment, alternative lenders, bank term loan etc (Wood, 2020). Depending on the need of the business, it will be suitable for Pleathora to obtain a business line of credit, an excellent tool to satisfy the company’s need for the supermarket store loan. Such loans are different from credit cardsin several aspects. A business line of credit can be offered by a lender, and rather than needing the business to accept the full payment upon the approval of the loan, Pleathora can tap into an entire or partial section of the total amount of the loan (Chakraborty and Hu, 2006). While the loan term is still valid, the business can even borrow from that cash often as per their choice. This loan facility offers favourable figures of interest and a higher limit of expenditure than credit cards.

8.0 Key Milestones

Objectives Time		Availing Good Quality Products at Lower Price	Attracting Consumers towards the Business through Promotion	Achieving and Large Consumer Base	Restocking with Substitute Products in Stock for Better and Continued Customer Service
October ‘21 – December ‘21	01.10.2021 – 31.10.2021
	01.11.2021 – 30.11.2021
	01.12.2021 – 30.12.2021
January ‘22 – March ‘22	02.01.2022 – 31.01.2022
	01.02.2022 – 28.02.2022
	01.03.2022 – 31.03.2022
April ‘22 – September ‘22	01.04.2022 – 30.04.2022
	01.05.2022 – 31.05.2022
	01.06.2022 – 30.06.2022
	01.07.2022 – 31.07.2022
	01.08.2022 – 31.08.2022
	01.09.2022 – 30.09.2022
Estimated Cost		40,000	8,000	-	10,000

Conclusion

The business plan has been prepared for a supermarket business to be established in Nepal, named Pleathora. The supermarket store is being set to provide quality grocery and non-grocery products at a lower price to gain a large and loyal consumer base. In this context, all the required market analysis, planning for the human resource, supply chain, operations, finance, legislation and regulations and assessment on risks and challenges have been done, along with setting key milestones for the objectives.

References

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Mahlangu, E.N. and Makhitha, K.M., 2019. The impact of demographic factors on supermarket shopping motivations in South Africa. Journal of Business and Retail Management Research, 13(3).

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Pokharel, P.R., 2021. Economic Freedom of Nepal and Private Capital Inflows: A Case of Nepal. Available at SSRN 3852805.

Rae, D., 2018. Developing entrepreneurial leadership for sustainable organisations. In Research Handbook on Entrepreneurship and Leadership. Edward Elgar Publishing.

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