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MasterPlans: The business plan experts. Custom business plans by professional business plan writers. Business plan consulting by professional business plan consultants.

Business Plan For Costco

The business plan for Costco isn't a public document, to the extent that the "corporate vision" for Costco over 3-5 years exists on paper at all, but if you were hoping to model your own business on its strategies you may still be in luck. There is a lot of information about the wholesaler business model whereby "membership clubs" are created to offer bulk discounts at retail locations to consumers and small businesses. This is a narrow margin, high volume business model that has enormous overhead and inventory costs. However, it can offer an appealing investment opportunity for outside capital partners if you have the management team to run it well. Answer these questions in your business plan:

• What are the products you will sell?
• What will be COGS be, by category?
• How many locations are there likely to be and what is the rollout timeline?
• What promotional initiatives can help gain customers?
• What will the varying membership levels be (rates, perks, etc.)?

The Costco business plan surely would include details on the executive hiring strategy and the breakdown of new hires over each year in the next five. This should be part of your own pro forma. Other important elements include the use of proceeds, revenue forecast, break-even analysis, profit and loss statement, cash flow, and a balance sheet for each year. In a pure start-up, the all-important first year should be displayed in a monthly detail that reveals how the operation will use its cash. If you need more guidance or want to hear how a business plan can be designed for your vision of a Costco-style business, call the expert planners at MasterPlans. We have written more than 11,000 business plans to date and we can help you create yours in as little as 2 weeks: 877-453-2011.

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