When it comes to opening a convenience store, location is key. After all, the keyword is convenience. How easy is it for customers to get to you? As such, it’s important to keep location in mind when developing your convenience store business plan.
Below you’ll find a sample convenience store business plan. Feel free to modify it to suit the inspiration you have in mind for your new business.
Centaur Max Store
Convenience Store Business Plan
Layla Jackson, Thomas Robinson & James Patrick (Owners)
Executive Summary
Introduction:
Centaur Max store is a 24-hour convenience store located in Central Phoenix, Arizona. Phoenix is the closest city to one of the world most renowned scenic wonders, the Grand Canyon National Park. The beauty of the Grand Canyon National Park has drawn attention from all over the world, which has resulted in a massive influx of tourists from all over the world. The number of tourist visit in 2017 alone was approximately 6.25 million people. This demographic shows a huge market potential for the business.
Centaur Max is targeted at tourists and residents of Phoenix. For tourists, we will ensure that they get maximum satisfaction from our services during their visits. We offer a wide variety of products for travelers on the road, as well as souvenirs. spanning various cultures from all over the world.
Product:
Centaur Max will adopt cost-optimization strategies to deliver products to customers at competitive prices. We will sell quick meals, snacks, alcoholic and non-alcoholic beverages, tourist-themed magazines, health items, small electronics, gift cards, postcards, and souvenirs.
Though many souvenirs are imported, we also will reach out to local artists in order to provide products that are unique and more authentic to the Grand Canyon area.
A small section of the store will include a seating area for customers who would like to consume their purchases before continuing with their journey.
Future Projections:
Centaur Max is a goal-oriented business. One of our major goals is to extend our reach to as many people as possible, in the shortest time possible. Within the next 10 years, Centaur Max will open 3 additional branches in cities close to other popular tourist attractions in Arizona. Other exciting tourist attractions that can be found in Arizona include the Antelope Canyon, Monument Valley, Grand Canyon Skywalk, Horseshoe Bend (Page), and Havasu falls (Supai).
Our objectives for the next 5 years include the following:
- Break-even and achieve profitability by the middle of the second (2) year
- Hit $150,000 in sales revenue by the end of the third (3) year
- Start paying out dividends by the end of the fourth (4) year
Company Description
Mission:
The mission of Centaur Max Stores is to consistently provide a broad variety of culture-enriched products and services to customers seeking a more authentic experience. We will create a good shopping environment for our customers, rewarding business environment for our employees and ensure maximum returns to investors.
Principal Members:
Layla Jackson – Managing Director (Co-Founder)
Thomas Robinson – HR and Marketing Manager (Co-Founder)
James Patrick – Board Member, Co-Founder & Owner of Medium Enterprises
Legal Structure:
Centaur Max Store is a registered Corporation. Ownership is as follows: Layla Jackson (55%), James Patrick (25%), and Thomas Robinson (20%). Centaur max will be subject to state and franchise taxes as documented in the state codes.
The principal will select its board of directors with Mrs. Jackson, who is slated for the position of CEO. As controlling member with over 51% ownership, Mrs. Jackson has submitted an application and received approval for Centaur Max to be a Certified Woman-Owned Small Business (WOSB).
Market Research
Industry:
The Convenience store industry is an exciting prospect, as it is currently booming. The industry experienced a sales growth of approximately 8.5% in 2017, where retail sales grew by only 6.2% & grocery sales, 2.4%. This proves how powerful the industry is in the retail sector. Convenience stores makeup 34.1% of all retail outlets in the United States and have continued to grow steadily. It’s doubled in number over the past 3 decades with almost 160 million customers daily.
The target of the convenience industry includes the entire purchasing residents and tourists in a particular demographic. But the primary focus is on tourists and clients that need to make immediate purchases outside their working hours. Secondary markets include teenagers who need snacks and other related goods. Statistics show that the growth rate for these classes of customers is equal to the population increase in the area.
Detailed Description of Customers:
Located off the highway off-ramp in central Phoenix, Centaur Max is highly visible to customers (residents and tourists) passing through the Phoenix metropolitan area. Centaur Max Store will target tourists, workers, and residents living within a 5-mile radius of the store.
Phoenix is known for its multi-ethnicity, tourist attraction and culture. Hence, the focus on tourists. This means that the majority of our clientele will include tourists visiting the community and residents within a 5-mile radius.
We anticipate our projected customer base will grow immensely, as the result of consistent marketing campaigns.
Competitive Edge:
Centaur Max Store has a number of advantages over its competitors in the convenience retail industry. The main edge we have over our competition is loyalty, which is a proven customer retention strategy. Centaur Max Store’s unique and creative approach to adopting loyalty will drive positive customer relationships, strengthen the brand, and decrease marketing costs. We will implement customer relationship management (CRM) systems to develop and sustain healthy customers with our customers.
Our feedback systems will collect customer data such as contact information, demographics, shopping habits & store review. With this information, we can create personalized shopping experiences for our customers & also arrange the store based on customer purchasing patterns & lifestyle.
Regulations:
Centaur Max Store must meet all Federal and state regulations concerning Food and drink sales. Centaur Max is also required to pass health, food, and fire inspections, as well as obtain food permits for all food handlers.
Product Line
Product/Service:
Centaur Max Store is a convenience store in the Phoenix metropolitan area offering a wide variety of food and drink products for people on the go. For customers looking for a warm cup of coffee, freshly made bakery and pastry goods, snacks, or groceries, Centaur Max is the place to visit.
Below is a list of goods that will be available for sale at Centaur Max Store:
- Bakery and Pastry goods
- Alcoholic and Non-alcoholic Beverages
- Magazines, Books and other reading materials and accessories
- Ice Cream (different variety of flavors)
- Coffee and Espresso Products
- Household Goods
- Personal Goods
- Souvenirs and gifts
Marketing & Sales
Marketing Strategy
A good marketing campaign strategy will be the core of our success. In order to create awareness, we will put up signs and billboards at strategic locations where our targets are most likely to see them. We will advertise through radio and television stations, flyers, social media, and even direct marketing & referrals.
We would also use feedback data from our customers to send them customized messages, engage them and ask for ways in which we can improve their shopping experience.
Keys to Success
For Centaur-Max, the keys to success and growth include the following;
- Attaining a high level of visibility through physical and digital media, billboards and other media of advertisement,
- Adopt cost control procedures and strategies to prevent losses.
- Invest sufficiently in research and development, in order to increase awareness and improve customer satisfaction.
Funding Request
The startup costs for the Centaur Max Store is $800,000, which includes the $500,000 purchase price of an existing convenience store located strategically off the highway. The remaining $300,000 covers equipment, inventory, fees, licenses, and permits, other organizational expenses, and operating expenses for the first few months.
The project is funded as follows:
Layla Jackson – $110,000
Thomas Robinson – $50,000
James Patrick – $40,000
Traditional Bank Financing – $600,000
A final thought on the Convenience Store Business Plan
This particular convenience store business plan incorporates the idea of souvenirs and gifts. This is mainly because the location is near the Grand Canyon. It’s important to tailor your plans to meet the needs of the consumers in your area. Though most convenience stores do have at least a small gift or souvenir section, a store seeking to attract tourist will see a more robust selection.
One other unique feature this business plan has is the inclusion of certification. Businesses that include a minority owner with 51% or more control may qualify for certification. This certification can be a huge advantage to some businesses, including bidding preferences to large corporations and government entities.
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