Write a business plan for the two following ventures:
Option A. Expanding a one-store operation to a two-store operation
Assume you currently run a small retailing business in the lobby of a
large office building. Your store occupies 1000 square feet of space. You
spend fifty hours a week at the store and hire two employees, each of
whom spends thirty hours a week at the store. Your annual revenues are
between $150,000 $300,000 a year. The products you sell are a mixed
bag of items. Basically, you stock up with items that occupants of the
office building will want, including snacks, pre-wrapped sandwiches,
bottled/canned beverages, greeting cards, newspapers, paperback books,
and small gift items that the buildings tenants might find attractive.
A new office building will open two blocks away from the building you
now occupy. You would like to expand your business to that building. In
fact, you begin to dream that you can establish a chain of such stores in
large buildings downtown. You have even cooked up a name for the
potential chain, Busters (named after your pet Labrador retriever).
At this point, you are not sure how you want to fund the expansion. You
need to put together a business plan to develop a sense of the financial
requirements of the new operation. You may decide to fund it using your
savings and by taking out a second mortgage on your house. Three other
options are to borrow money from the bank, borrow money from friends
and family, or to have friends/family assume an equity role in your
business as investors. In any event, your business case would be used to
borrow the money or to attract investors.
Write a business plan that describes this proposed venture.