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:
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.
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
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.
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.
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.
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.
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.
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:
Names | Cost |
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.
Expenses for each month will be the following:
Names | Cost/month | Cost /year |
Salaries | $7,000 | $84,000 |
Utility Bills | $1,000 | $12,000 |
Miscellaneous | $1,000 | $12,000 |
Total | $9,000 | $108,000 |
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.
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.
Items | Forecast | Total 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 |
Our aim is to achieve the breakeven point within the first 6 months of the XYZ grocery store business.
We will be hiring qualifies and hardworking staff members. There will be 4 employees with the following designations:
Details of employee payroll are mentioned below:
Names | Annual Salary |
Store Manager | $25,000 |
Cashier | $20,000 |
Helper/salesperson | $18,000 |
Cleaner | $18,000 |
Proceedings depend on your proposal
Phone: 333-2332111
E-mail: [email protected]
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