If you are in the red, it is not necessarily a sign that the business is in bad shape but you may need to cut back or seek out a loan.
Here's some topics you may want to include in your business plan to help ensure that the time and capital devoted to your business will deliver a positive return on investment.
How to Write a Business Plan for a Retail Business: Your Research Starting a new business is exciting and it can be tempting to dive-in head first to get things up and running. There are numerous trade organizations and small business bureaus that can provide valuable information about your genre of the industry.
Both the National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA) are resources that offer market research, sales forecasts, supplier guides, recruitment and training tools plus information about regulatory and tax laws.
Sandy Kennedy, president of RILA says, because "our members are some of the most successful in the industry they are able to provide access to benchmark info that can help shape a plan." Several retailers like The Gap and Home Depot are RILA members and were originally single-store businesses.
You can identify the characteristics of potential customers by asking these questions:• Who will my product/service appeal to?
• Who can afford the price point of my product/service?
This can make a difference between getting approved for a loan versus being asked to provide collateral.
Smith added, "There was a time when a bank would look to see how much your company would be worth in five years." Valuing a business is not as reliable as it used to be so a retailer's total revenue is very important.
Copeland recommends contacting the local Department of Economic Development to get information on your city's programs.
Dig Deeper: 10 Ways to Mark Earth Day at Your Company How to Write a Business Plan for a Retail Business: Advertising Strategy Now that you've got supplies, it's time to create demand and move that inventory off the shelves.