Grocery Store Business Proposal

Grocery store business proposal is a document prepared by an entrepreneur to present to potential investors and woo them for investing in his business. Many times, an entrepreneur has the right set of skills along with a great business idea, but the lack of finances often limits his business initiation or expansion. At the same time, there are many people who have finances and want to invest but are not willing to actively run a business. Therefore, investors are sought by the entrepreneurs for actualizing the business idea and generating profits.

Depending on the store size, required finances and investor requirements, the grocery store business proposal can be quite comprehensive or only of a few pages. It can be prepared from scratch or a template from the online sources or programs can be utilized and customized as per the information and requirements. The general details included are:

  • Executive summary/Introduction.
  • Testimonials, if any.
  • Company profile or entrepreneur profile.
  • Details of the grocery store idea, including scope, size, items, suppliers, pricing, any add-on services, such as home delivery, etc.
  • Financial information, including costing and profits.
  • Knowledge, capabilities, skills, expertise, experience (if any).
  • Why you should be the choice? Your competitive edge.
  • Benefits of investing in your grocery store for the investor.
  • Terms and conditions.

If the required investment is huge, it can be divided into parts and sought from different investors. However, sometimes, a big investor may be ready to invest in the complete money for the project.

Advertisement

Sample Template

To:      Michael Jordon
ABC Investment Company

From:  Emma Johns
XYZ

20th September 2020

Dear Mr. Jordon,

Thank you very much for the meeting yesterday. We are extremely excited to start our XYZ Grocery Store business on Alberta Street, Portland and looking forward to your company to invest in it. XYZ will be providing organic ingredients and products to the customers with the convenience of healthy shopping. We have prepared this proposal for you, with all the details. We would like your company to have a look at the entire investment opportunity and share your business assistance to support us. ABC has provided capital to a lot of companies and we would appreciate it if you would provide these services to XYZ to make it a success.

Let us know if you have any reservations or queries.

Regards,

Emma Johns

XYZ Grocery Store Business Proposal

Introduction

XYZ will be a dedicated organic grocery store. The goal is to provide organic products with convenience, for a better and healthy lifestyle. We will work with the local farmers and food companies and serve our consumers with a variety of healthy alternatives to the foodstuff available in conventional stores. Our food items will be simple, healthy and natural.

Services

All the edible products will be 100% organic in nature. This will include drinks, hot and cold refreshments, canned goods, bakery items, and organic cleaning products. Also, newspapers, basic stationery, and the different magazine will be available. All products will be locally branded.

Business Summary

Hours of operation:

Monday -Saturday: 9am -3pm, 6pm-10pm

Sunday: off

Location:

Alberta Street, Portland

Items sold:

Grocery and baked goods

Workers:

4 workers will be hired for serving.

Objective

Our objective is to launch a maintainable and sustainable grocery business that grows by providing a better lifestyle and healthy food to our customers.

  • Create such an outlet that provides our consumers with a wide variety of organic foods.
  • Gain profitability within the first year and start strategizing about expanding the business.
  • Start another store on Columbia Boulevard, Portland by the end of the third year of business.

Target Market

A grocery store always gets a lot of customers and an organic grocery store needs to target people willing to better themselves by consuming healthy products. This includes average working adults. We also need to target new and potential customers willing to change their lifestyle by eating healthy and natural food.

Market Analysis: Studies show that the organic food and beverage market is highly competitive in nature and is grown by a tremendous amount. This indicates that people are moving towards a healthy lifestyle and like consuming natural products without harmful chemicals.

Customer Analysis: Although organic food costs higher than conventional products, people are still willing to pay more for a better lifestyle. Consumers prefer organic fruits, vegetables, and drinks as they are healthier, tastier and good quality.

Competitive Analysis: We did our research and found out that there are currently no grocery stores selling wholly organic items within a radius of 5 km of Alberta Street. We saw this as an opportunity to start this store in this region.

Marketing

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

  1. Website: Create a website about XYZ grocery. 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 newspapers of Portland.

Start-up Cost 

We would like ABC to initially invest $179,000, which is 50% of the total start-up cost and the running cost. Estimated start-up expense details are provided below:

 

                      NamesCost
Legal paperwork$5,000
Marketing$5,000
Land rental (1-year advance)$10,000
Insurance$10,000
Grocery store facilities$50,000
Equipment$50,000
Inventory$100,000
Cash$10,000
Miscellaneous$10,000
Total$250,000

 

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:

                      NamesCost/monthCost /year
Salaries$7,000$84,000
Utility Bills$1,000$12,000
Miscellaneous$1,000$12,000
Total$9,000$108,000

 

 Ownership Arrangement

The company will be incorporated in the state of Oregon with all private shareholders. Emma Johns will own 50% of XYZ grocery and ABC will own the other 50% shares of the grocery business.

Sales Forecasts

We have prepared a sales forecast based on the customer and walk-by traffic, with a $5 purchase approximate sum meeting to industry averages, for the first year. This will help you make an informed decision.

 

ItemsForecastTotal Sales
Baked items$50,000$90,000
Snacks$100,000$120,000
Drinks$130,000$150,000
Stationary$50,000$90,000
General items$70,000$100,000

 

Break-even analysis

Our aim is to achieve the breakeven point within the first 6 months of the XYZ grocery store business.

Workforce

We will be hiring qualifies and hardworking staff members. There will be 4 employees with the following designations:

  • Store Manager
  • Cashier
  • Helper/salesperson
  • Cleaner

Payroll

Details of employee payroll are mentioned below:

Names Annual Salary
Store Manager$25,000
Cashier$20,000
Helper/salesperson$18,000
Cleaner$18,000

 

Future plan

  • We would like to open more branches of the XYZ grocery store all over Portland.
  • We want to make XYZ an online store so people can order food online and get it delivered at their homes or offices.

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 accessible to the management team.
  • XYZ will be responsible for the formal training of the workforce.
  • Insurance to all the employees of XYZ grocery will be provided.

Contact Us

You can contact us with any of the following ways:

Phone: 333-2332111
E-mail: xyz@gmail.com

 

Preview

Grocery Store Business Proposal Template

Format: MS Word (.docx) | File Size: 90 KB

Download