A running store business plan should have all of the elements that a banker will be looking for when trying to decide whether the business should receive a loan. You of course need strong credit, experience, and most likely some working collateral. But beyond the basic requirements, the Small Business Administration's standards for the business plan include that you show a solid market opportunity, a sound growth strategy, and a good knowledge of what consumers are looking for in running gear and supplies. The business plan should fully describe everything you will sell – from clothing to accessories to energy gels – and give rough price points for each category. The plan also needs to answer these questions:
• What does the immediate market look like?
• If you have a location secured, how many people in your target audience live within 10 miles?
• What is the industry like? How were running sales last year?
• Where are your closest competitors?
• How many people will it take to run the store at any given time?
The plan should have a pro forma model that provides estimates on total sales, the break-even schedule, a cash flow table, your balance sheet, and the profit and loss for the business. The SBA will also want to look at your first year (“Year One”) as a series of monthly snapshots, usually included in the appendix. The business plan's other big requirements include a concise start-up summary, use of funds, and executive overview, along with standard plan sections like market need, competitive edge, and personnel plan. MasterPlans has written business plans for thousands of retail business in both start-up phase and well-established positions. Call us today to learn more. (877) 453-2011.
