Martin General Store will be a full–time Corner Store operating 7 days a week, from 7:00 a.m.–12:00 p.m. selling pop/chips; toys; taxable cigarettes; and food products.

The store will offer friendly and personalized service, reasonably priced merchandise, tax exemption for status customers and a convenient location.

Mission

Martin General Store will strive to provide superior customer service and the highest quality groceries at an affordable price, while operating as a profit and growth oriented business.

Operations

The store will be located in a building that will be renovated and equipped with the necessary furnishings, shelving and plumbing. The approximate square footage of the unit is 1,400 square feet. The unit will have 3 rooms, consisting of an office, washroom and the retail store area.

Martin General Store is prepared to purchase the equipment and inventory necessary to begin operations immediately, upon approval of funding. Tom Martin recognized a need for a store in the area after a neighboring store closed. Tom Martin conducted a resident’s survey asking about the need for a corner store and the community overwhelmingly supported the concept. There are no such stores within a 22–block radius, and the target market will include local residents.

The store will be situated in a 1,000 square foot building that is owned by the principal, it will be renovated with the appropriate shelving, refrigeration and cash counters required for operation. It is fully wired for electrical, security, and phones. The building will consist of 3 rooms–an office, a washroom and the main store area. The Principal, Tom Martin will, upon approval of funding, renovate the building, and purchase the necessary equipment and inventory. The Plymouth City Chief and Council have provided their full support and verbally agreed to support this venture.

Tom Martin seeks a $25,000.00 loan to establish a corner store. In addition Tom Martin will contribute $10,000.00 equity for a total project cost of $35,000.00, for which Tom Martin will renovate his building, install shelving, a cooler, air conditioner, cash counter, install signage and purchase inventory.

Production Process

Daily retail operations will consist of the following:

Business start up costs

1.	Renovations	$ 120,000.00
2.	Inventory	$ 15,000.00
3.	Shelving	$ 4,500.00
4.	Cooler lease deposit	$ 1,200.00
5.	Air conditioner	$ 4,000.00
6.	Signage	$ 6,000.00
7.	Cash counter	$ 1,500.00
8.	Operating capital	$ 500.00
	Total	$152,700.00

Description of facility requirements

Electronic equipment:
Existing equipment	Value	Required equipment	Budget cost
Computer	$ 900.00	Air Conditioner	$500
Printer	$ 400.00
Automobile	$2,000.00
Software	$5,000.00
Total:	$8,300.00	Total:	$8,800.00

Furniture/Fixtures:
Required furniture/fixtures	Budget cost
Shelving	$1,231.00
Signage	$ 500.00
Cash counter	$ 500.00
Total:	$2,231.00

Open store, disarm alarm.
Cash count, turn on necessary machinery, debit machine, etc.
Do books from previous day, check inventory, order more stock if necessary.
Handle sales.
Close out cash and balance.
Close store, arm alarm.

Business will commence operations based on the following work plan:

Secure building, gut/renovate building.
Installation of equipment necessary for business operations: Store shelving, cash counter, cash register, and debit machine.

Management Summary

Martin General Store will have 6 employees, one full–time and 5 part–time. Tom Martin will be the sole owner and primary operator for Martin General Store. Tom Martin has extensive retail experience in the retail grocery business as a supervisor for a local supermarket and has worked at a high volume hardware–store and also a government liquor store. He has identified four primary categories of product: pop/chips; toys; taxable cigarettes and food products.

Mrs. Smith will assist in daily operations of the store, and will handle bookkeeping and financial reporting. Within five years it is anticipated that the company would analyze the viability of hiring more part–time employees for 4 hours per day; however at this time there are no plans to hire any more employees within the first three years of business.

Management team background and experiences

Tom Martin has extensive retail experience that is crucial to the type of business he is opening. Mr. Martin’s experience includes work at a retail grocery store, a high volume hardware store (sundry) sales, and liquor store sales. He has worked in retail sales for 12 years and is experienced with all aspects of daily operations including ordering, receiving, budgeting, merchandising, and daily banking. Tom Martin is particularly skilled in public relations, is very organized, is able to work independently, and is reliable, dependable and hardworking.

The experience that Tom Martin brings to the endeavor is invaluable, he has product knowledge, is familiar with large chain pricing and techniques, and their sales strategies. While working for the local grocery store Tom Martin established valuable wholesale contacts he will utilize in the new business.

MARKET ANALYSIS

Industry Sector: Retail

Over the last century, corner stores have provided a thriving service to local neighborhoods. Typically, corner stores are defined as neighborhood retail shops with a limited selection of merchandise, such as milk, bread and other household necessities. Corner stores are largely a cash–based business conveniently located for quick in and out shopping, and can be operated by two clerks. The consumer usually requires the services and products that the corner store offers on a daily, weekly or bi–weekly basis. Corner stores provide quick checkout times, extended hours of business and convenient locations. Considered a mature industry, corner stores are a powerful retailing group in the USA.

Within the industry U.S. Economic trends are similar to USA trends. A leading expert, Teri Richman, stated “That the Corner Store industry grew in 2000 in spite of high interest rates, a stagnant stock market, and a sign of an economic slowdown is a testament to the overall strength of the industry,”. “It shows that the value that consumers place on the industry remains at an all–time high, and that the industry is delivering,” Richman added. “No matter what the size of the Corner Store—whether it is a one–store operation or a company of several thousand, there is one consistent element: A Corner Store is an anchor business to the neighbourhoods of America,” said Richman. “With approximately 120,000 Corner Store stores nationwide, people have convenient and immediate access to food products, beverages, cash, petroleum, and any necessity item. The Corner Store has become the gas station, quick–service restaurant, bank, and water cooler of a mobile, time–hungry society.”

Customers

The customers that the store will target are the local residents. The area has no other such corner store in a 22 block radius, local resident’s grocery needs being filled by Foods, Safeway, or PGA Food Market, all in the town of Plymouth. A small corner store, The Colonial Food Market, located six blocks away, did exist until six months ago, when it was forced to close due to the high rent/lease costs. This business had a proven market that Martin’s General Sore will capitalize upon.

Tom Martin conducted a small survey within Plymouth (250 households) and the results indicated that there was overwhelming support for a small concept of having a corner store. The question asked was “Would you be in favor and buy products from a store located in the community?” The response was extremely favorable. This community support is crucial when the primary target customers are Plymouth residents. A copy of the survey is attached in the appendices of this business plan.

The business’s secondary target client group is local residents within a 4 mile radius of Plymouth, or approximately 50,000 people.

Currently there are 35 households in this community, and an additional 250–300 households within a 12 block radius and approximately 40,000 households in the Plymouth District Municipality.

According to the Plymouth Community Profile 2001, Plymouth city residents spend $40.6 million dollars per year on grocery store and other food products. Based upon the number of households and the average spending, Plymouth city residents spend $8,000 per year on grocery store and other food products. Calculating the average spending based upon 300 homes in the local area at 7 percent of average spending, it is estimated that Martin General Store could conservatively gross $150,000.00 per year.

Martin’s General Store has a potential target market, as follows:

800 local residents within the 10–block radius
108 community residents
Plymouth Band Office, 15 employees, numerous visitors
250 students from Woodside Elementary School, parents & staff
430 students from Taylor Junior Secondary School, parents & staff
200 local Bingo players (Bingo games are held 4 times per week at the community hall next door)
30 Warehouse employees (1/2 block away)

Client demographics include local residents from all age groups and socioeconomic ranges, consisting primarily of families. A large secondary target group will be children and teens that regularly purchase candy, soft drinks and other fast–grab foods.

Success Factors

The business will succeed due to a variety of factors:

There in no competition in the targeted neighborhood.
Mr. Martin has a strong management work ethic; currently holds 2 jobs, and has excellent references from both.
Mr. Martin’s experience in retail grocery sales.
Mr. Martin’s wholesale contacts.
There is a proven market.
There is a local need.
There is proven community support.

GROWTH STRATEGY

Advertising

Martin General Store anticipates growth to be based upon two primary client groups: Plymouth city residents and local in a 22 block radius. Local business will be generated through an aggressive marketing campaign to local residents, the band office, and the local bingo hall, and local preschools.

It is anticipated that the market penetration will increase over the next five years from 5 percent of local residents spending to 10 percent, and the client market area will increase to a 15–block radius.

The average customer that the business will target will be from all age groups, with an average household income of approximately $45,514 (2001-Statistics USA). Many households have both parents in the work force, 45.6 percent of USA women with children younger than six worked outside the home (Statistics USA, 2000).

According to the Plymouth Community Profile 2001, residents spend $44 million dollars per year on grocery store and other food products. Based upon the number of households and the average spending per person, Plymouth residents spend $6,800.00 per year on grocery store and other food products. Calculating the average spending based upon 235 homes in the local area at 5 percent of average spending it is estimated that Martin General Store could conservatively gross $100,000 per year.

Martin General Store will attract local clients and foster loyalty with competitive pricing, convenient location, and friendly service. In addition, the store will offer monthly specials, drawings, and promotions.

Tom Martin may join an industry association such Retail Council of USA (for a nominal annual fee), who provides the business with cost–saving services (such as low merchant rates on credit cards) and practical advice through newsletters and workshops.

Flyers will be distributed in the local area on a monthly basis advertising specials, draws and promotions. Tom Martin will display 2 sandwich boards, one for either store end.

COMPETITION

The direct competition for Martin General Store consists of one company:

7-Eleven
Address	1234 14th Avenue, Salt Lake City, Utah
Years in business	10 years
Market share	10%
Price/strategy	Same
Product/service	Same product, lower levels of client service.
Advantages	Longer hours, greater purchasing power, variety of products, gas-bar, lottery license.
Disadvantages	Distance

Martin General Store’s indirect competition is 2 large grocery retailers, as listed below:

1.	USA Safeway
	Address	123 Street
	Years in business	22 years
	Market share	10%
	Price/strategy	Same
	Product/service	Greater buying power and variety of products
	Advantages	Longer hours, more products, large promotional sales and industry name.
	Disadvantage	Distance
2.	Kroger Foods
	Address	222 Street
	2H7
	Years in business	24 years
	Market share	12%
	Price/strategy	Same
	Product/service	Greater buying power and variety of products
	Advantages	Longer hours, more products, large promotional sales and industry name.
	Disadvantage	Distance

MARKETING & SALES

Pricing will be set at 30 percent–100 percent mark–up, dependant upon the following categories:

Pop/Chips: 50 percent mark up
Toys: 100 percent mark up
Cigarettes: 40 percent mark up
Food Products: 45 percent mark up

No credit will be offered to customers. Sales will be cash, debit card or credit card. Suppliers will be on a C.O.D. basis, until 30 net terms can be established.

Expected sales from the first three years of operations

Year 1	Year 2	Year 3
$150,000	$200,000	$290,000

BUSINESS FEASIBILITY

Strengths

The advantage that Martin General Store has is that there is no competition within a 22 block radius. The Colonial Food Market was located in the area until 6 months ago when it went out of business, due to high lease rates at that location. Tom Martin has the advantage of being a business based on community, where rent is not a factor in operations. In addition, Tom has a strong work ethic and an ability to deal with the public in a friendly and courteous manner.

Weaknesses

One weakness is the location. The business will be located on community; therefore suppliers may be hesitant to give terms.

Opportunities

There is the opportunity to expand the product line(s) that the store carries. Martin General Store anticipates that within the first two years of operation that it may qualify for a tax–exempt tobacco license and lottery goods. There is also the potential that the business may be able to employ local people part time.

Other services being considered are:

ATM (Automated Teller Machine)
Flower sales
Local crafts
Fresh coffee

Risk Factors

The major threat is the possibility that another corner store will open in the vicinity. Tom Martin will establish a loyal customer base to alleviate transfer of customers to another business.

Tom Martin will maintain one of his jobs to ensure financial obligations are met. He is considering giving terms to the band office and other organizations to ensure a positive cash flow.

BUSINESS STRATEGY

Martin General Store will succeed due to a variety of factors:

Local Need: The customers that the store will target are the local residents. The area has no other corner store in a 22 block radius, with local residents’ grocery needs being filled by Kroger Foods, Safeway, or 7-11.
Proven Market: A small corner store did exist in the neighbourhood until 6 months ago, when it was forced to close due to the high rent/lease costs. This business had a proven market that Martin General Store will capitalize upon.
Management Experience: The experience that Tom Martin brings to the endeavor is invaluable; he has product knowledge, is familiar with large chain pricing and techniques, and their sales strategies. While working for the local grocery and hardware store, Martin established valuable wholesale contacts that he will utilize in the new business. In addition, Tom Martin has an excellent work ethic, having held down two jobs that provide his excellent references. Finally, with regard to management experience, Tom Martin has an excellent relationship established with the necessary suppliers for this venture.
Community Support: Tom Martin conducted a survey within the community and the results indicated that a small corner store had overwhelming support. A copy of the survey is attached in the appendices of this business plan.

Long–range plans include the acquisition of a tax–exempt cigarette license for the community, and a lottery license (keno) from the provincial government. These are time–consuming processes, but these product lines will be applied for in the first quarter.

Location

Strategically located near the geographic center of Plymouth is the major educational, transportation, distribution, industrial and commercial center for northern and central Massachusetts.

Population

The population of Plymouth is culturally diverse, with almost 50 different ethnic origins represented. Over 65 percent of people in Plymouth over the age of 15 have attained a high school diploma or a higher level of education. Based on 2000 estimates, the population of Plymouth is just over 290,000 with a population within a 30 minute commute of 90,000. The average annual growth rate is 1.1 percent (last five years).

Age distribution

Age and gender–2000 Census

	Salt Lake City		% Distribution
	Male	Female	AG	Utah
All ages	37,980	37,170	100.0	100.0
0–14	9,295	8,735	24.0	19.7
15–24	5,965	5,850	15.7	13.0
25–44	12,970	13,095	34.7	32.7
45–64	7,655	7,035	19.5	21.8
65+	2,100	2,450	6.1	12.8

Level of education	Percentage of population
Some high school only	30
High school graduation only	15
Some college	40
Associate degrees	10
Bachelor degree or higher	5

Top ten employers

Employer	# of Employees
School district	240
USA forest products	2,400
Salt Lake City Regional Hospital	1,400
City of Salt Lake City	1,200
Ministry of State	1,200
College of Salt Lake City	700
Utah transportation	525
University of Northern Utah	400
Other	1,290
Private	230

Local Economy

The economy of Plymouth is in transition. The local economy has traditionally been supported primarily by forestry which is currently in decline. Because of the attraction of Massachusetts and the desire to stay in the area, people have taken lower level jobs those results in a high level of underemployment.

Labor Force

The total number in the labor force is 34,990. Labor force employed is 30,000 with a unemployed labor force of 4,990. The number of people not in the labor force is 18,900. The unemployment rate in Plymouth has averaged around 11 percent in the past year. Because of our excellent educational facilities, Plymouth has a highly skilled unemployed workforce.