Do you need information on a resale shop business plan? Resale shops make their profit on a very simple principle: bring in items at low cost, and resell them to the public at a marked-up rate. The business model is successful whether the resale items are antiques, bicycles, or men's clothing, and it can be profitable in urban areas or in rural locations as well. In a way, resale shops are one of the most fungible concepts out there, and as the economy has faltered, they've made a not-so-surprising resurgence. But what does the business plan need to cover in the most detail? First off, if you're seeking a bank loan or modest line of credit, a simple plan and 3-year pro forma should suffice for a banker's review. But it's important that you adequately cover the major pressure points for a funding-ready retail business plan:
(1) Describe the items you anticipate reselling in as much detail as possible
(2) Look carefully at the market—if you know the location you'll occupy, uses Census data to show who lives nearby, and pinpoint their expenditures and demographic profile
(3) What do you compete with? This could be other resale shops or larger businesses like Target or Wal-Mart, so think outside to box to make sure your bases are covered.
(4) How will you promote the shop? What advertising, promotions, marketing initiatives would work best, and how do they fit in your budget?
(5) When can you break even and what does the net profit look like in Year 2 and Year 3?
There are other issues well worth addressing in full. The market need, for example, is an important topic to cover in the market analysis, and your financial forecast should have a personnel plan with as much detail as possible on hiring timelines and wages. Resale shop business plans can be a lot of fun, much like the business itself, but they can also be very time consuming and frustrating to put together if you get stuck on something like the industry analysis or cash flow table. If you need help, MasterPlans is your perfect resource for assistance in writing funding-ready plans. We have helped more than 8,000 clients get their concepts in front of bankers, investors, and VC firms and have a strong track record of professional , attentive business plan writing dating back to 2002. Call 877-453-2011 to speak with a consultant today!
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