Grocery Business Plan
Starting a Grocery store in Nigeria is a lucrative business to do in Nigeria considering its wide potentials and possibility of turning it into a chain Grocery shop business.
The Retail industry (of which Grocery store is part of) is a major sector of the economy of Nigeria which generates a whooping sum of well over N100 trillion annually from more than a million Grocery outlets scattered all around Nigeria. The industry is responsible for the employment of well over 10 million people which is about 12% of the workforce of Nigeria. It was published in the papers that in 2016 alone, the Retail industry on a global scale generated a revenue of well over N900 trillion; it goes to show that the industry is indeed a very large industry.
It is a fact that an estimated two-thirds of Nigeria’s gross domestic product (GDP) comes from Grocery consumption. This is why Nigeria’s economy is measured with the yardstick of how well the Retail business is fairing. We are said to be a consumption nation and not much of a manufacturing or producing nation. In essence, when there is an unstable economy, purchasing power drops and it impacts the Retail industry negatively which may result in the closure of some Grocery stores.
In recent time, the Grocery landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a Grocer to reach out to a larger market far beyond the areas where his physical store is located.
It is interesting to note that more Grocery shops; especially lager Grocery outlets have started to include self-serve checkout lanes in their stores. It creates shorter lines that appeal to consumers; the average customer would not want to stay longer on queue.
Over and above, the Grocery industry is a profitable industry and it is open to any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in a street corner like the average mom and pop business or you can choose to start on a large scale with several outlets in key cities.
Table of content
Confidentiality Agreement 2
Business Plan Introduction 3
Executive Summary 5
Business Description 10
Products and services 13
Market Analysis 14
Competitor Analysis 16
Sales and Marketing Plan 17
Operational Plan 22
Management Plan 24
Financial Plan and Projections 25
PATILAD Grocery Store is a Grocery shop that will be located in one of the busiest streets in Oregun Lagos. We have been able to lease a facility that is big enough to fit into the design of the Grocery shop that we intend launching and the facility is located directly opposite the largest residential estate in Oregun Lagos.
Our Grocery shop will sell a wide range of durable goods and non – durable goods at affordable prices from most trusted brands. We sell goods such as FMCGs, clothes, sports equipment, beauty products, jewellery, baby stuffs, children’s toys, home furnishings and home appliances et al.
PATILAD Grocery Store is a start-up Grocery store in Bendel Street, Opposite Victory Estate Oregun Lagos that provides interesting merchandise options at bargain prices. Financing will come from the private investments of Mr Dayo Adetiloye. He will supply all equity that will be cleared at the end of 36 months.
The PATILAD Grocery Store will be incorporated as a sole proprietorship company. It’s a sole proprietorship but will be run as a family business. PATILAD Grocery Store will contribute from his personal savings toward this business venture. With an aggressive marketing plan PATILAD expects to experience steady growth as it becomes more familiar to the general public.
With the financing in place PATILAD will be able to successfully open and maintain operations through year one. The large capital investments of the owners will provide the public with a unique and innovative store that will cater to the needs of those on fixed incomes such as low income families, the elderly, and the large student population in the Bend area. The successful operation of PATILAD will provide a customer base that will allow it to be self-sufficient.
Products and Services
The PATILAD Grocery Store sells a variety of quality discount merchandise. The merchandise is purchased from a variety of well-known manufacturers as well as a number of other generic branded companies. Shipments arrive on a daily basis. We will continue to find new product lines that can be added to our inventory. We are able to sell products at very low prices, because we will purchase items from discontinued lines, seconds over none, etc., that cannot be sold to a manufacturer’s usual Grocery customers.
We are aware that there are several large and small Grocery outlets all around Victory Estate Oregun Lagos, which is why we spent time and resources to conduct our feasibility studies and market survey, so as to offer much more than our competitors will be offering. We have sell service options for our customers, and our outlet is well secured with the various payment options.
Much more than selling the goods and products of top brands in the manufacturing industry, our customer care is second to none in the whole of Oregun. We know that our customers are the reason why we are in business, and that is why we will go the extra mile to get them satisfied when they visit our Grocery shop and also to become our loyal customers and ambassadors.
Competitors for PATILAD Grocery Shop are Alpha Store, Bolar Ventures, Citadel Stores, etc.
PATILAD Grocery Shop competitive edge includes lowest prices possible for bulk purchase products, excellent customer service, the expertise of its founders, etc.
PATILAD Grocery Shop seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.
Funding for the launch of the business is provided primarily by equity from the partners and investors.
The business will reach positive cash flow in its 10th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners. Revenue will top N35,325,000 and gross margin will reach about N31,195,000 in the 1st year of operation.