Convenience Store Business Proposal

A convenience store or shop is a place located in the vicinities of residential areas that stores and sells items and products which are used on a routine basis, including groceries, tobacco products, soft drinks, juices, etc. A convenience store proposal is a document, prepared by an individual or a company, which includes details of opening or expanding a convenience store. This proposal is prepared for a client company or a potential investor to seek venture capital for the business idea.

Usually, a convenience store is a small shop and does not require a large investment. Yet, a proper proposal, that can represent the business plan, is essential to woo the client or investor and realize the idea into an actual business. Therefore, the convenience store proposal:

  • Needs to be prepared with thorough research and analysis.
  • It should be comprehensive and formal.
  • Must include all the relevant details.
  • It should serve as a marketing tool to convince the client/investor.
  • Should clearly state and highlight the advantages of investing, especially the financial ones.
  • Needs to make the client understand the success chances as well as the growth potential of the store idea.

Generally, a convenience store proposal includes:

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  • Executive summary.
  • Introduction of company profile.
  • Details of the convenience store, including a list of items, market trends, target market, probability of success and growth, etc.
  • Financials, including required investment, expenses, projected sales, profits, etc.
  • Competitive edge.
  • Any add-on services, such as home delivery.
  • Convincing statements.
  • Benefits for the investor.
  • Terms and conditions.

Sample Template

To:      Alison Smith
ABC Investment Company

From:  Ritesh Desai
XYZ

25th September 2020

Dear Ms. Smith,

Thank you very much for the meeting yesterday. I am extremely excited to start my XYZ convenience store business on Cornel Road, Portland and looking forward to your company to invest in it. The XYZ Convenience Store will be providing Indian ingredients and products to the customers. I have prepared this proposal for you, with all the details. I would like your company to have a look at the entire investment opportunity and share your business assistance to support my business idea.

Let me know if you have any reservations or queries.

Regards,

Ritesh Desai

XYZ Convenience Store Business Proposal

Executive Summary

XYZ will be dedicated to all Indian ingredients and product store. The goal is to provide authentic and best Indian products with convenience, to reconnect with the Indian roots and heritage. We will work with the Indian farmers and food companies and import goods for the consumers with a wide variety of Indian products. Our food items will be simply Indian, so the consumers can get the taste of India without actually going there.

XYZ convenience store will be located on the Cornel Road, in block E. There is 6,000 square feet shop available for rent, right next to the Indian Restaurant “XYZ Restaurant”, which I think will be ideal for our store.

Products

The products will include Indian spices, Indian canned food, Indian snacks, and drinks. Also, newspapers, basic stationery, and different Indian magazine will be available. All products will be Indian branded and 100% authentic.

Business Summary

Hours of operation:

Monday -Saturday: 9am -11pm

Sunday: off

Location:

Cornel Road, Portland

Items sold:

Indian origin

Workers:

1 worker will be hired for services.

Problem Statement

The already existing Indian stores are selling products at very high prices. This is because of the fact that there are only a few stores of such nature and people are in need of Indian food items and ingredients because of the growing popularity of Indian cuisine. Moreover, most common products are usually out-of-stock because of the high demand.

Objective

Our main objective is to launch a maintainable and sustainable convenience store business that grows by retailing better and authentic Indian products to our customers.

  • Create such an outlet that provides our consumers with a wide variety of Indian items.
  • Provide all the specific ingredients required for preparing Indian meals.
  • Gain profitability within the first couple of years and start strategizing about expanding the business.
  • Open more branches by the end of the third year of business.

Target Market

Nowadays, people are becoming more open-minded about trying new flavors and different cuisines. Our target and potential customers will be the adventurous food explorers and people from Indian origin, living in Portland. One of the advantages is that this store will be the only store selling authentic Indian products within the area of 10 miles.

Market Analysis: Convenience stores have been in existence for quite a long time. Currently, there are almost 10,000 Indians residing in Portland and surely, they will be interested in buying authentic Indian products. According to market research, our main target would be Indians and Indian food lovers.

Competitive Analysis: The market has become quite competitive over the last couple of years. Currently, there are 5 Indian stores working in Portland. All these stores are far from Cornel Road so XYZ will be the only Indian continence store within the radius of 10 miles.

Marketing

I plan to advertise in all mediums, print, Internet, Social Media, and Radio. I will print advertisements in all community-based newspapers and magazines. Also, I will place ad banners on the internet to make people aware of our brand.

  1. Website: Create a website about the XYZ convenience store. Mention all the products that are being sold and all the running promotions.
  2. Social media pages: Create social media pages and advertise about the store.
  3. Newspaper: Print ads in all the local community newspapers of Portland.

Start-up Cost 

We would like ABC to initially invest $100,000, for the start-up cost and the running costs, for the first year. Estimated start-up expense details are provided below:

                      Names Cost
Legal paperwork $1,000
Marketing $2,000
Land rental (1-year advance) $5,000
Insurance $5,000
Grocery store facilities $20,000
Equipment $10,000
Inventory $40,000
Cash $5,000
Miscellaneous $1,000
Total $80,000

 

Legal paperwork includes getting approval from the concerned authorities, obtaining licenses, permits and opening a bank account. Equipment includes furniture, shelves, electronic devices, CCTV cameras, etc.

Running Cost

Expenses for each month will be the following:

 Names Cost/month Cost /year
Employee Salary $500 $6,000
Utility Bills $500 $6,000
Miscellaneous $500 $6,000
Total $1,500 $18,000

 

Sales Forecasts

This store will surely attract a large number of consumers because of its authenticity and specification. I am very optimistic and certain that we will break even within the first couple of years and start generating profit by the end of the third year. Below is the sales forecast for the first fiscal year, based on information collected on the field.

 

Items Forecast Sales
Food items $35,000
Indian Snacks $35,000
Drinks $25,000
Stationary $5,000
General items $10,000

 

First 6 months: $50,000

First fiscal year: $110,000

Second fiscal year: $280,000

Staff

We will be hiring a qualified and hardworking clerk for the convenience store. His job will be to provide assistance to the customers, operate the cash register and maintain the store. It will be his duty to keep the store shelves organized.

Future plan

  • I would like to open more branches of the XYZ convenience store all over Portland.
  • I want to make XYZ an online store so people would be able to order items online and get them delivered at their doorstep.

Approval

We would like to seek your approval to proceed with the necessary arrangements. After your approval, we will inform the relevant departments to initiate the process and work on the Terms and Conditions for the future.

Assurances

  • XYZ will ensure that all the factors mentioned in the proposal about running the business are reinforced.
  • Profit-sharing arrangements between the parties will be made after the proposal acceptance.
  • XYZ will be responsible for the formal training of the employee.
  • Insurance to the employee of the XYZ convenience store will be provided.

Contact Us

You can contact me with any of the following ways:

Phone: 333-2345511
E-mail: xyz@gmail.com

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Convenience Store Business Proposal

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