retail bank business plan

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Ultimate Guide to Retail Banking Business Plan

Creating a retail banking business plan is crucial for setting strategic goals and securing funding. It serves as a roadmap for operational success and financial management.

Crafting a comprehensive retail banking business plan involves clear articulation of your bank’s value proposition, target market, and operational strategies. It outlines your financial projections, risk management policies, and customer service protocols to navigate the competitive landscape effectively. A well-constructed plan supports your endeavors in cultivating customer relationships, optimizing resources, and achieving sustainable growth.

It’s not only a document for potential investors but a guiding framework for your team to execute the bank’s vision. By aligning objectives with market needs, a retail bank can position itself to deliver superior service and robust financial performance. Consider this business plan as a vital tool to differentiate your offerings, innovate services, and establish a reputable presence in the banking sector.

Introduction To Retail Banking

Retail banking is the face of modern banking for the common citizen. It’s where everyday financial transactions happen. It covers personal accounts, loans, mortgages, and cards . Retail banks are our often-visited spots for money matters. They play a key role in the financial system.

Rise Of Personal Financial Services

The finance world has seen a big change. People now want more control over their money. Banks have answered with personal services . These include saving plans and online banking. Tech makes it easy and fast.

Importance In Today’s Economy

Retail banking keeps the economy moving. It offers credit to families and small businesses . This helps people buy homes and grow companies. Banks put savings back into the economy. This boosts growth for everyone.

Setting The Stage

Welcome to our ultimate guide on creating a robust Retail Banking Business Plan . Whether you’re a start-up or an existing bank, understanding the intricacies of drafting a comprehensive plan is pivotal. Here, we’re Setting the Stage for success, ensuring you know the critical elements required to define your retail banking goals and distinguishing between retail and commercial banking. Let’s start by clearly defining what awaits on this financial journey.

Defining Retail Banking Goals

Establishing clear objectives for your retail banking business is the cornerstone to measuring success. Your goals should include actionable, realistic targets and must align with your overall mission. Consider incorporating:

• Customer acquisition and retention rates
• Cross-selling financial products
• Expanding into new markets
• Improving customer service
• Integrating innovative technology

Retail Bank Vs. Commercial Bank

Understanding the key differences between retail and commercial banks is essential. Retail banks focus on personal banking services. They serve individual customers. Commercial banks deal with businesses, providing loans, and other services. The following table summarizes the main distinctions:

Market Analysis

The heart of any successful retail banking business plan rests on a robust Market Analysis . It uncovers vital information, guiding your business decisions and strategies. To ensure your financial institution stays relevant and competitive, understanding who your clients are and what the competition looks like is key. Let’s delve into identifying who will benefit most from your services and evaluating your competition.

Identifying Target Customers

Finding the right customers is like picking the right key for a lock. It opens the door to success. Focus on who needs your banking services. Think about their lifestyles, needs, and financial goals. Are they college students looking for their first checking account? Perhaps busy professionals in need of efficient online banking? Or maybe retirees seeking secure investment advice? Identifying your target customers means you can tailor your services just for them.

• Age Group: Highlight the preferred age range
• Income Level: Cater to their earning bracket
• Occupation Type: Target services to fit their work life

Competition Assessment

Knowing who you’re up against keeps you sharp. In retail banking, competition comes from various sources. These include other local banks, credit unions, and online financial institutions. An effective Competition Assessment involves analyzing their services, fees, and customer satisfaction levels. Look for gaps that your bank can fill. It’s about finding your edge in the crowded marketplace.

With a detailed market analysis , carve out a niche for your bank. This ensures you stand out and attract the customers that fit your brand best.

Products And Services

A stellar retail banking business plan shines a light on the products and services offered. Banks provide more than just account access. They cater to specific financial needs with a mix of traditional and innovative offerings. Let’s explore these solutions that keep customers satisfied and engaged.

Core Offerings

Every retail bank has core offerings that form the foundation of customer relationships. These are essential services clients expect from their financial institutions.

• Savings Accounts: Safe places to store money and earn interest.
• Checking Accounts: For daily transactions and easy access to funds.
• Debit Cards: Convenient for electronic payments and ATM withdrawals.
• Credit Facilities: Including personal loans, mortgages, and overdrafts.

Critical to any banking operation, these products form the bedrock of personal finance.

Innovative Solutions

To stay ahead in the game, retail banks must also offer innovative solutions . These services attract tech-savvy customers and create a modern banking experience.

• Mobile Banking Apps: Bank on-the-go with user-friendly apps.
• Digital Wallets: Make seamless and swift digital transactions.
• Personal Finance Management Tools: Track spending, and budget effectively.
• Peer-to-Peer Payments: Send money quickly with just a phone number or email.

Such innovations reflect a bank’s commitment to forward-thinking and customer convenience.

Technology Integration

Embracing technology is crucial for modern banking . Retail banks must integrate advanced solutions to stay competitive. This section delves into how technology shapes the retail banking landscape.

Digital Banking Shift

Digital banking is no longer an option; it’s a must-have. Banks need user-friendly mobile apps and online services. Clients expect to access their finances anytime, anywhere.

• Online Account Management allows 24/7 access to accounts.
• Customers enjoy mobile check deposits from their devices.
• Real-time notifications keep clients informed.

Security And Compliance

With great power comes great responsibility. Banks tackle security and regulatory challenges head-on.

Operational Plan

Every successful retail banking business stands on a robust operational plan. This plan ensures that daily activities align with strategic goals. A detailed operational plan covers all the bases from physical infrastructure to staff readiness.

Infrastructure And Branch Network

At the heart of a retail banking business is its branch network. This network must be tech-savvy and customer-friendly. Each location is chosen for ease of access and market potential. Let’s break it down:

• Site selection: It matters where a branch opens. High traffic areas often mean more customers.
• Design: Spaces should be welcoming. They should have modern tech for quick service.
• Technology: ATMs, online platforms, and mobile banking need to be top-notch.

Staffing And Training

People make your bank special. Skilled, friendly, and well-trained staff keep customers happy. Investing in your people is smart. Here’s how:

• Hiring: Find people with the right attitude. Skills can be taught, but kindness and eagerness to help are key.
• Roles: Define clear roles. Tell everyone what success looks like in their job.
• Training programs: Set up regular training. Teach new skills. Make sure everyone grows.

Marketing Strategy

When you dive into the world of retail banking, a clear and effective marketing strategy is key to success. This strategy helps to communicate with your audience and reach potential customers. Your retail banking business plan should outline how you plan to build your brand and attract new clients. Get ready to explore the marketing essentials that can set your retail bank apart.

Building Brand Identity

A strong brand identity resonates with your audience. It makes your bank the first name that pops into their heads. Take these steps to build a powerful brand:

• Create a memorable logo that reflects your bank’s values.
• Develop a brand message that speaks to customers’ needs.
• Ensure your website and materials feature this cohesive branding .

Remember, your brand is your promise. Make it bold, make it stick.

Customer Acquisition Tactics

Attracting new customers is an art. It is all about knowing what they want and delivering it.

Combine these tactics with excellent customer service. Your customer base will grow.

Financial Projections

A rock-solid retail banking business plan needs robust financial projections . They show potential investors and stakeholders how the bank expects to thrive financially. Let’s explore the pivotal elements: revenue streams and risk management.

Revenue Streams

Planning revenue streams forms the backbone of a banking business’s financial health. Here are the key sources of income for a retail bank:

• Interest from loans: This is money earned from customer loans and mortgages.
• Account fees: These include monthly fees, overdraft charges, and other account-related costs.
• Service charges: Fees for wire transfers, ATM usage, and other services.
• Investment Income: Profits from the bank’s investments in securities, stocks, or bonds.

Use a table to project revenue for realism and clarity. Here is an example for the first year:

Risk Management And Contingencies

Risk management is crucial for ensuring stability. Retail banks must prepare for uncertainties. The plan should include:

• Asset-Liability matching: Balancing asset and liability maturities to manage interest rate risks.
• Credit risk: Setting loan approval criteria to control defaults.
• Liquidity planning: Ensuring cash availability for day-to-day operations.

Also, contingency funds act as a safety net. They help the bank recover from sudden financial dilemmas. Outline scenarios where they might apply. Use examples to illustrate the plan’s robustness.

Regulations And Compliance

Success in retail banking hinges on understanding and adhering to regulatory requirements. Each financial institution must comply with a myriad of regulations. These help maintain the integrity of the banking system. This section will guide you through the essentials for your business plan.

Navigating Regulatory Requirements

Staying abreast with regulatory requirements ensures your bank’s operations remain legal. Compliance is not static. It evolves with new laws and amendments. Key areas to monitor include:

• Consumer Protection Laws – Protects clients’ rights.
• Anti-Money Laundering ( AML ) – Prevents financial crimes.
• Know Your Customer (KYC) – Ensures client identity verification.
• Bank Secrecy Act (BSA) – Mandates reporting of large currency transactions.

Robust systems are required to manage these regulations. Regular training for staff is indispensable. It ensures that they remain compliant.

Ethical Banking Practices

Ethical practices build trust and protect the bank’s reputation. Your retail banking business plan should include strategies that:

• Emphasize transparency with customers.
• Ensure fair treatment of all clients.
• Include privacy policies to safeguard customer information.

These efforts will foster long-term relationships with customers. They will also provide a competitive edge in the marketplace. An ethical approach is non-negotiable.

Sustainability And Social Responsibility

In today’s world, retail banking must align with sustainability and social responsibility. Banks play a pivotal role in the well-being of communities. They possess the power to influence a greener tomorrow. This guide explores how a retail banking business plan can embrace these elements to ensure a lasting, positive impact.

Impact On The Community

Retail banks act as community pillars . They provide financial services that support local businesses and individuals. A business plan with a clear community impact strategy can yield benefits for both the bank and its customers. They can inspire change and foster community growth. Banks should integrate programs that address local needs, including socio-economic development and financial literacy .

• Support for small businesses
• Community reinvestment activities
• Educational initiatives

Green Banking Initiatives

Embracing green banking initiatives represents a bank’s commitment to environmental health. Retail banks can develop sustainable practices within their operations. They can offer eco-friendly products and services. This strategy reduces the carbon footprint. It addresses climate change concerns raised by customers and regulators.

By integrating these initiatives, banks not only contribute to the environment but also position themselves as responsible market leaders .

Evaluating Success

Crafting a robust business plan for retail banking is just the beginning. To truly thrive, banks must gauge their progress. Evaluation paves the path to success. Let’s dive into the metrics and strategies for continuous improvement.

Key Performance Indicators

Key Performance Indicators (KPIs) are the navigation tools in banking. They signal where the bank excels and where it needs to steer differently. Focus on the right KPIs to stay on track.

• Customer Satisfaction Scores: Happy customers often mean a successful bank.
• Net Interest Margin (NIM): This reveals the bank’s lending profitability.
• Non-Interest Income: Diverse sources of income reduce risk.
• Loan-to-Deposit Ratio: A balance here indicates healthy cash flow.
• Cost-to-Income Ratio: Efficiency shines through this metric.
• Return on Assets (ROA) and Return on Equity (ROE): Both measure profitability.

Continuous Improvement

Embrace change for lasting success. Aim for small, steady enhancements. Gather insights and adapt. Ingenuity and agility win the banking race.

Regular Reviews: Check performance often. Understand trends. Adapt Strategies: Change goals as needed. Employee Training: Skilled teams drive growth.

Keep learning. Keep growing. Your bank’s future depends on it.

Preparing For The Future

Retail banking must evolve quickly to stay ahead. A solid business plan embraces changes and stimulates innovation. Let’s dive into key strategies for future-ready retail banking.

Adapting To Market Changes

Stay alert to trends and tailor services accordingly. Consumers demand convenience and swift transactions. Banks need digital agility for this fast-paced environment.

Focus on customer expectations drives business growth. Data analytics pinpoint client needs, enabling personalized banking experiences.

Regulatory landscapes shift , demanding flexible strategies. Adapt to these policies swiftly to stay competitive and compliant.

Fostering Innovation

Innovation sets you apart in the banking sector. Offering novel solutions attracts and retains clients. Encourage creative thinking within your team.

Invest in cutting-edge technology to streamline operations. Automation and AI redefine customer service and back-office tasks.

Collaborate with fintech companies . Partnerships can offer customers advanced financial tools.

Frequently Asked Questions

What are the 7 p’s of service that would be involved in a banking service.

The 7 P’s of service in banking include Product, Price, Place, Promotion, People, Process, and Physical Evidence. These elements enhance customer service and satisfaction in the banking sector.

How To Grow A Retail Banking Business?

To grow a retail banking business, enhance customer service, offer competitive products, adopt digital banking technologies, engage in community outreach, and implement targeted marketing strategies.

What Should Be Included In A Business Plan For A Bank?

A business plan for a bank should include an executive summary, company description, market analysis, organizational structure, product line, marketing strategy, funding requirements, and financial projections.

What Are The Key Activities In Retail Banking Business Model?

Retail banking business model activities include account management, loans and credit services, mortgages, savings and investment services, and transaction processing. These services drive revenue through interest, fees, and financial advice.

Crafting a stellar retail banking business plan is a must. It paves the way for customer trust and financial triumph. This guide has offered a roadmap; follow it for success. Ready your team, refine your strategies, and watch your bank flourish.

The future of banking is in your hands!

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Retail Business Plan Template

Written by Dave Lavinsky

Retail Business Plan

You’ve come to the right place to create your retail business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their retail companies.

Retail Business Plan Template & Sample

Below is a retail business plan template to help you create each section of your retail store business plan.

Executive Summary

Business overview.

Artisan Home & Decor is a startup retail shop located in Pasadena, California. The company is founded by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing a store and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor. Joyce is confident that her ability to effectively manage employees, customer relationships, and retail operations will help her establish a profitable retail store. Joyce plans on recruiting a team of highly qualified sales associates, accountants, and buyers to help manage the day to day complexities of retail – marketing, sales, budgeting, sourcing, and purchasing.

Artisan Home & Decor will provide uniquely curated home decor products created by local artisans. The home decor shop will be the ultimate choice for customers in Pasadena who value one-of-a-kind pieces for their homes. Artisan Home & Decor will provide its customers with a refreshingly personalized shopping experience they can’t get anywhere else. The shop’s sales associates will be able to help customers find the perfect pieces to suit their individual preferences and styles.

Product Offering

The following are the products that Artisan Home & Decor will provide:

• Lamps & Lighting
• Throw Blankets
• Photo Frames
• Cookware Sets
• Kitchen Gadgets
• Kitchen and Bathroom Fixtures
• Waste Baskets
• Soap Dispensers

Customer Focus

Artisan Home & Decor will target home decor shoppers looking for a personalized experience and unique pieces in Pasadena. The company will target boomer, millennial, and gen z  consumers looking for unique decor for their homes, apartments, or condos. They will also target businesses looking for special pieces to furnish their corporate offices, waiting rooms, and lobbies. No matter the client, Artisan Home & Decor will deliver the best communication, service, and high quality products.

Management Team

Artisan Home & Decor will be owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing retail stores and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor.

Joyce Hernandez has recruited her former assistant manager, Melissa Jacobs to come on board to help her manage Artisan Home & Decor. While Joyce will oversee the employees, day-to-day operations, and client relationships, Melissa will be the Inventory Manager. She will be in charge of sourcing, purchasing, and pricing all inventory. Melissa will work directly with suppliers to stock the retail shop with unique artisan pieces.

Melissa is a graduate of the University of California with a Bachelor’s degree in Interior Design. She has been working at a local retail home decor company for over a decade as an assistant manager. Melissa has an eye for design and keen organizational skills that will allow her to effectively manage Artisan Home & Decor’s one-of-a-kind inventory. Her communication skills will enable her to establish and maintain working relationships with artisans and suppliers.

Success Factors

Artisan Home & Decor will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of sales associates and interior design experts that are able to provide a personalized customer experience and help each client find the right home decor pieces to suit their preferences.
• Artisan Home & Decor will bring fresh inventory into their retail store on a regular basis so there will always be something new for customers to check out. In addition to in-store sales, the company will sell pieces online through its website.
• Artisan Home & Decor offers one-of-kind pieces created by local artisans to suit a wide variety of home decor styles and tastes. By purchasing from the shop, customers are supporting these local artisans and getting fresh decor that no one else will have.

Financial Highlights

Artisan Home & Decor is seeking $210,000 in debt financing to launch its retail business. The funding will be dedicated towards securing and building out the retail space and purchasing the initial inventory. Funds will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for print ads, website and SEO marketing initiatives, and association memberships. The breakout of the funding is below:

• Retail space build-out: $25,000
• Retail store shelving, displays, equipment, supplies, and materials: $40,000
• Three months of overhead expenses (payroll, rent, utilities): $120,000
• Marketing costs: $15,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Artisan Home & Decor.

Company Overview

Who is artisan home & decor.

Artisan Home & Decor is a newly established retail company in Pasadena, California. The new home decor shop will be the ultimate choice for people looking for uniquely curated one-of-a-kind furniture and other home products crafted by local artisans. Artisan Home & Decor will provide its customers with a refreshingly personalized shopping experience they can’t get anywhere else. The shop’s sales associates and experienced interior designers will be able to help customers find the right pieces to suit their preferences and styles.

Artisan Home & Decor will be able to provide a personalized shopping experience for serving customers in-store and online. The team of professionals and sales associates are highly qualified and experienced in interior design, home decor, and the customer experience. Artisan Home & Decor removes all headaches and issues of the home decor shopper and ensures all issues are taken care off expeditiously while delivering the best customer service.

Artisan Home & Decor History

Artisan Home & Decor is owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing retail stores and the education on how to run a retail business, she is ready to start her own company. Joyce is confident that her ability to effectively manage employees, customer relationships, and retail operations will help her establish a profitable retail store. Joyce has begun recruiting a team of highly qualified sales associates, accountants, and buyers to help manage the day to day complexities of retail – marketing, sales, budgeting, sourcing, and purchasing.

Since incorporation, Artisan Home & Decor has achieved the following milestones:

• Registered Artisan Home & Decor, LLC to transact business in the state of California.
• Has a contract in place to lease the retail space.
• Reached out to numerous local artisans to advise them on the upcoming retail shop in order to start getting supplier contracts.
• Began recruiting a staff of sales associates, interior designers, an accountant/bookkeeper, marketing director, and assistant manager to work at Artisan Home & Decor.

Artisan Home & Decor Services

Industry analysis.

The retail industry in the United States is valued at over $4T currently and is forecasted to reach $4.9T by the end of 2022. This is up from $3.8T in 2019. After a decade of retail decline between 2010 and 2020, the market is rebounding at a surprising rate. There were twice as many store openings as closings in 2021 alone. The number of brick-and-mortar retail establishments is increasing even as ecommerce shopping has grown by 70% in the last three years.

The role of retail stores is evolving and industry operators are discovering in-store experiences are still vital from the customer perspective. Successful brick-and-mortar industry operators are incorporating ecommerce into their business models. Trends include providing ship-from-store and buy online, pickup in store options to give customers more flexibility in the way they can shop. Key success factors include the level of customer satisfaction, product selection, prices, and convenience.

Customer Analysis

Demographic profile of target market.

The precise demographics for Pasadena, California are:

Customer Segmentation

Artisan Home & Decor will primarily target the following customer profiles:

• Millennial customers looking for one-of-a-kind home decor
• Boomer customers looking for one-of-a-kind home decor
• Gen z customers looking for one-of-a-kind home decor
• Businesses looking for unique decor for their offices, waiting rooms, or lobbies

Competitive Analysis

Direct and indirect competitors.

Artisan Home & Decor will face competition from other retailers with similar business profiles. A description of each competitor company is below.

Pasadena Home Decor

Pasadena Home Decor provides high-end home decor for the conscientious consumer. Located in Pasadena, California, the home decor retailer is able to provide a tailored shopping experience for its customers. The store’s list of products includes tables, chairs, wall hangings, rugs, vases, photo frames, candles, office decor, and paintings by local artists. Pasadena Home Decor sells online and in-store to give customers flexibility.

Pasadena Home Decor’s promise is to deliver high quality pieces that will stand out. Customers who purchase furniture and home decor from Pasadena Home Decor will be delighted with the customer service, cleanliness of the store, and personalized design services the company offers.

Home Shoppe

Home Shoppe is a California-based home decor retail store that provides outstanding pieces for discerning clientele. Home Shoppe stocks unique furniture and other decor items that are 100% hand-crafted. The owners of Home Shoppe are experienced craftsmen themselves, so they know how quality furniture and home decor pieces should be made. Clients can depend on their selection of products for durability, style, and eco-friendly materials. Choose Home Shoppe for your next home decor project and let the sales team take the stress out of the redecorating process by helping you select the best products for your home.

Redecorating For You

Redecorating For You is a trusted Pasadena retail company that provides superior home decor products for shoppers in Pasadena and the surrounding areas. The shop offers an extensive inventory of home decor items in a variety of styles so there is something for every taste. Redecorating For You is able to provide premium pieces that fill every space with elegance and style. The shop also eases the stress of redecorating by providing in-store pickup and delivery options for busy customers.

Competitive Advantage

Artisan Home & Decor will be able to offer the following advantages over their competition:

• Artisan Home & Decor will bring fresh inventory into the store on a regular basis so there will always be something new for customers to check out. In addition to in-store sales, the company will sell pieces online through its website.
• Artisan Home & Decor offers one-of-kind pieces created by local artisans to suit a wide variety of home decor styles and tastes.

Marketing Plan

Brand & value proposition.

Artisan Home & Decor will offer the unique value proposition to its clientele:

• Artisan Home & Decor will make redecorating easy for customers by providing in-store shopping, pickup, delivery, online shopping, ship-from-store, and buy online-pickup in store options.
• By purchasing from the shop, customers are supporting local artisans and getting fresh decor that no one else will have.

Promotions Strategy

The promotions strategy for Artisan Home & Decor is as follows:

Social Media Marketing

The company will use various social media platforms such as TikTok, Instagram, Facebook, LinkedIn, YouTube, and Snapchat to promote the shop, feature artisans, and show off new pieces. The marketing director will oversee the social media marketing activities to grow the customer base.

Professional Associations and Networking

Artisan Home & Decor will become a member of professional associations such as the National Retail Federation, California Retailers Association, and the Home Furnishings Association. The company will focus its networking efforts on expanding its network of clients, designers, and artisans.

Print Advertising

Artisan Home & Decor will invest in professionally designed print ads to display in programs or flyers at industry networking events, in home decor publications, and direct mailers.

Website/SEO Marketing

Artisan Home & Decor’s marketing director will be responsible for creating and maintaining the company website. The website will be well organized, informative, and list all of the products currently available for purchase online.

The marketing director will also manage Artisan Home & Decor’s website presence with SEO marketing tactics so that any time someone types in the Google or Bing search engine “Pasadena home decor retailer” or “home decor store near me”, Artisan Home & Decor will be listed at the top of the search results.

The pricing of Artisan Home & Decor will be premium and on par with competitors so customers feel they receive value when purchasing the one-of-a-kind products.

Operations Plan

The following will be the operations plan for Artisan Home & Decor.

Operation Functions:

• Joyce Hernandez will be the Owner and Manager of the store. She will oversee all staff and manage day-to-day operations. Joyce has spent the past year recruiting the following staff:
• Melissa Jacobs – Inventory Manager who will be responsible for sourcing, purchasing, pricing, and maintaining the inventory.
• Robert Brown – Staff Accountant/bookkeeper who will provide all store accounting, tax payments, and monthly financial reporting.
• Bill Johnson – Marketing Director who will provide all marketing and sales activities for Artisan Home & Decor including maintaining the website, social media, print advertising, and promotions.
• Julia Smith – Lead Sales Associate & Designer who will manage all sales associates and provide design services for customers.

Milestones:

Artisan Home & Decor will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to lease the retail space.

9/15/2022 – Finalize personnel and staff employment contracts for the management team.

10/1/2022 – Finalize contracts for suppliers.

10/15/2022 – Begin networking at industry events and implement the marketing plan.

10/22/2022 – Begin moving into the Artisan Home & Decor shop.

11/1/2022 – Artisan Home & Decor opens for business.

Artisan Home & Decor will be owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing a store and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor.

Melissa is a graduate of the University of California with a Bachelor’s degree in Interior Design. She has been working at a local retail home decor company for over a decade as an assistant manager. Melissa has an eye for design and keen organizational skills that will allow her to effectively manage Artisan Home & Decor’s one-of-a-kind inventory. Her communication skills will enable her to establish and maintain working relationships with suppliers.

Financial Plan

Key revenue & costs.

The revenue drivers for Artisan Home & Decor are the retail fees they will charge to the customers in exchange for their products. The shop will charge a healthy margin to make sure artisans are paid well for their products while ensuring a solid profit for the business.

The cost drivers will be the overhead costs required in order to staff a retail store. The expenses will be the payroll cost, rent, utilities, store supplies, and marketing materials.

Funding Requirements and Use of Funds

• Store shelving, displays, equipment, supplies, and materials: $40,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of items sold per month: 300
• Average sales per month: $90,000
• Retail space lease per year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Retail Business Plan Template FAQs

What is a retail business plan.

A retail business plan is a plan to start and/or grow your retail business. Among other things, it outlines your business concept, identifies your target market, presents your marketing plan and details your financial projections.

You can  easily complete your retail business plan using our Retail Business Plan Template here .

What are the Main Types of Retail Businesses?

There are a number of different kinds of retail businesses, some examples include: Specialty Store, Off-Priced/Used Goods Store, Department Store, Convenience Store, Drug Store/Pharmacy, Discount Store, Hypermarket, and E-commerce.

How Do You Get Funding for Your Retail Business Plan?

Retail businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A solid retail business plan with comprehensive financial statements will help show investors your are well-prepared to start your own business.  A retail business plan template will help you quickly and easily get started.

What are the Steps To Start a Retail Business?

Starting a retail business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Retail Business Plan - The first step in starting a business is to create a detailed retail store business plan that outlines all aspects of the venture. This should include supporting market research, your potential market size and target customers, the services or products you will offer, marketing strategy, your competitive advantages and detailed financial projections.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your retail business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your retail business is in compliance with local laws.

3. Register Your Retail Business - Once you have chosen a legal structure, the next step is to register your retail business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your retail business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Retail Equipment & Supplies - In order to start your retail business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your retail business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Where Can I Get a Retail Business Plan PDF?

You can download our free retail business plan template PDF here . This is a sample retail business plan template you can use in PDF format.

Other Helpful Business Plan Templates

Ecommerce Business Plan Template Clothing Store Business Plan Template Beauty Supply Store Business Plan Template T-Shirt Business Plan Template

10 Steps to Launching a Successful Retail Bank Business: Your Ultimate Guide

Related blogs.

• Maximizing Your Retail Bank's Potential: Top KPIs to Track
• The Surprising Truth About How Profitable Retail Banks Really Are
• From Aspiring Entrepreneur to Bank Owner: Navigating the Ins and Outs of Starting a Retail Bank

1. Understand The Landscape Environment

Before opening a retail bank business, it is crucial to understand the landscape environment in which you are planning to operate. This includes researching the local economy, demographics, and competition in the area. Here are some key factors to consider:

• Local Economy: An analysis of the local economy can help you determine if there is a demand for your retail bank business. Look for indicators such as job growth, household income, and business development that suggest a thriving economy.
• Demographics: Your target customers' demographics, such as age, gender, and income level, can help inform your business strategy. Consider how your retail bank can meet the specific needs of your target customers.
• Competition: Research the other banks operating in the area to understand how they are positioning themselves and what they offer to customers. This can help you differentiate your retail bank business and develop a unique value proposition.

Tips & Tricks:

• Use public data sources such as the U.S. Census Bureau and Bureau of Labor Statistics to research the local economy and demographics.
• Engage with members of the local business community to gain insight into the local banking landscape.
• Visit competing banks' branches as a customer to experience their customer service and understand their offerings.

By thoroughly researching the landscape environment, you can better position your retail bank business for success by targeting the right customers and offering the services and products they need.

2. Research Local Laws & Regulations

Before opening a retail bank business, it is crucial to research the local laws and regulations that govern businesses in your area. This will help you understand the legal requirements that you need to meet as a business owner. Some of the legal documents that you need to acquire include licenses, permits, and certifications to operate in your locality.

You can get legal advice from a business lawyer to help you navigate through the legal processes of acquiring necessary documentation. This will help you avoid costly legal fees and lawsuits that could harm your business.

• Consult with a business lawyer to help you understand the legal requirements that you need to meet before opening a retail bank business.
• Acquire the necessary legal documents to operate in your locality.
• Avoid legal issues that could affect your retail bank business by staying informed about the local laws and regulations.

Tip & Tricks:

• Research the local laws and regulations regularly to ensure compliance with the law.
• Keep your legal documents up to date to avoid legal issues.
• Be transparent with your customers to build trust and maintain good relationships.

Knowing the regulatory framework for retail bank businesses in your locality is the first step in opening a successful business. It not only helps you avoid legal issues but also ensures that you operate a legitimate business that is compliant with the law. Failure to comply with local laws and regulations can lead to fines, penalties, license revocation, and even closure of the business.

Therefore, it is important to consult a business lawyer and stay informed about the regulatory framework to avoid costly legal issues and enhance your business’s success. You can also seek help from industry associations and business development centers to help you navigate through the legal requirements.

3. Gather & Analyze Data For Market Research

Before launching a retail bank business, it is essential to conduct proper market research to gather relevant data and analyze it. This helps in identifying the potential market and its dynamics to make informed decisions. Here are the steps to gather and analyze data for market research:

• Define the objectives: Start by defining the objectives of the market research. The goals and objectives should be clear and specific to gain valuable insights.
• Collect data: The next step is to collect data from primary and secondary sources. Primary sources include surveys, focus groups, interviews, and observation. Secondary sources are reports, studies, and statistical data published by government and non-government organizations.
• Organize and analyze: After collecting the data, it is necessary to organize it and analyze it. Use different data analysis methods like descriptive analysis, inferential analysis, regression analysis, and so on, to extract the maximum value from the data.
• Interpret the results: The last step is to interpret the results obtained from the analysis. The findings should provide insights into the market size, customer preferences, industry trends, competition, and other relevant factors.
• Make use of both qualitative and quantitative data for better insights.
• Use multiple data analysis methods to validate the results obtained from one method.
• Be as objective as possible while interpreting the results to avoid biased decision making.

4. Develop & Strategize Business Model & Plan

After conducting thorough market research, it is now time to develop and strategize your retail bank's business model and plan. This will serve as the backbone of your business and provide guidance for all future decisions. Follow these chapters to ensure a rock-solid business plan:

Chapter 1: Executive Summary

This chapter should provide a brief and comprehensive overview of your retail bank's business plan. It should include:

• The purpose and objectives of the business
• A summary of products and services offered
• The target market and competition
• Projected financials and funding requirements

Chapter 2: Company Description

In this chapter, you should describe the structure of your retail bank, including:

• The legal structure (such as LLC or corporation)
• Ownership details and management team
• Bank's mission, vision, and values
• Core competencies and competitive advantage of your bank

Chapter 3: Market Analysis

This chapter should provide a detailed analysis of your target market and competition, including:

• Market size and trends
• Target market segments and demographics
• Competitor analysis and market share
• Marketing and sales strategies

Chapter 4: Product and Service Line

In this chapter, you should describe your retail bank's range of products and services, including:

• Types of accounts offered (checking, savings, etc.)
• Interest rates, fees, and terms and conditions for each account type
• Value-added services such as loans, mortgages, and investment advice

Chapter 5: Sales and Marketing Plan

In this chapter, you should describe your retail bank's sales and marketing strategy. It should include:

• Marketing objectives and strategies
• Marketing mix (product, price, promotion, and place)
• The process for lead generation, conversion, and retention

Chapter 6: Financial Projections

This chapter should provide detailed financial projections, including:

• Revenue, expenses, and profits for the first three to five years
• Break-even analysis and return on investment
• A detailed budget for startup costs and working capital requirements
• Set realistic financial projections backed by data and research
• Provide multiple financial scenarios, including best and worst-case scenarios
• Update your financial projections regularly based on actual data and trends

Developing a rock-solid business plan is crucial to starting a successful retail bank. It helps you understand your market, competition, and financial needs, which are essential for making informed decisions. Stay tuned for the remaining chapters in our 'How to Open/Start/Launch Retail Bank Business in 10 Steps: Checklist.'

5. Prepare Financial Model & Forecast

Before launching your retail bank business, it is important to prepare a financial model and forecast to determine the viability and profitability of your venture. This will help you identify potential risks and challenges and allow you to make informed decisions to ensure the success of your business.

Here are the key steps to prepare a financial model and forecast:

• Define your business model: Before you start creating your financial model, you need to have a clear understanding of your business model. You need to identify your target market, products and services, pricing strategy, distribution channels, and marketing plan. This will help you determine your revenue streams and cost structure.
• Identify your fixed and variable costs: You need to determine all the costs associated with starting and running your business. Fixed costs include expenses that are constant and do not vary with sales volume, such as rent, salaries, and utilities. Variable costs, on the other hand, are expenses that vary with sales volume, such as raw materials, inventory, and marketing expenses.
• Forecast your sales and revenue: You need to estimate your sales and revenue projections based on your business model, market analysis, and competition. This will help you determine your break-even point and profitability.
• Create your cash flow projection: You need to create a cash flow projection that outlines your monthly inflows and outflows for the first year. This will help you identify potential cash shortages and plan accordingly.
• Prepare your balance sheet and income statement: You need to prepare a balance sheet and income statement that summarizes your assets, liabilities, equity, revenue, and expenses. This will provide a snapshot of your financial position and performance.
• Use realistic assumptions and data to ensure the accuracy of your forecast.
• Consider different scenarios and sensitivities to identify potential risks and opportunities.
• Update your financial model and forecast on a regular basis to reflect actual results and changes in the environment.

Preparing a financial model and forecast is a critical step in launching a successful retail bank business. It requires a deep understanding of your target market, products and services, costs and revenue streams, and competition. By following these key steps and tips, you can create a solid financial model and forecast that will guide your business decisions and ensure your long-term viability and profitability.

6. Analyze Funding Options & Arrangements

When it comes to starting a retail bank business, funding is crucial. You need to have a good understanding of the different funding options available and choose the one that best suits your business needs. Here are some funding options you can consider:

• Savings or Personal Loans: You can use personal savings or take out a personal loan to fund your business. This is a good option if you have enough savings or are willing to take on the risk of a loan.
• Grants: Depending on where your business is located, there may be federal or state grants available for new or small businesses.
• Investors: You can bring in investors to provide funding for your business. This is a good option if you have a solid business plan and are willing to give up some control of your business in exchange for funding.
• Bank Loans: You can apply for a traditional bank loan to fund your business. This option is good if you have a good credit score and a solid business plan.
• Crowdfunding: You can use crowdfunding platforms to raise funds for your business. This is a good option if you have a unique idea and can build a strong online following.

Once you have chosen a funding option, you need to arrange the funding. For this, you need to have a good understanding of the different types of funding arrangements:

• Debt Financing: This is when you borrow money and agree to pay it back with interest. This is a good option if you have a strong business plan and can afford to take on debt.
• Equity Financing: This is when you sell shares of your business in exchange for funding. This is a good option if you are willing to give up some control of your business and want to bring in investors.
• Line of Credit: This is a revolving loan that you can use as needed. This is a good option if you need a flexible funding arrangement.
• Convertible Debt: This is a type of financing that converts debt into equity at a future date. This is a good option if you are unsure of the future value of your business.
• Make sure to research and compare different funding options before making a decision.
• Be sure to have a solid business plan in place to increase your chances of securing funding.
• Consider working with a professional financial advisor or consultant to help guide you through the process.

7. Secure Necessary Permits & Licenses

Before opening a retail bank business, it is critical that you obtain all the necessary permits and licenses required by the regulatory agencies in your area. Failure to obtain these permits and licenses can result in hefty fines and legal consequences, which can ultimately lead to the closure of your business. Therefore, it is essential to research and obtain all the required permits and licenses in advance before moving forward with starting your retail bank business.

• Business License: Every business is required to have a business license before starting operations. Contact your local government agency to obtain the business license for your retail bank business.
• Bank Charter: In order to legally operate a retail bank, you must obtain a bank charter from the regulatory agency in your area.
• FDIC Insurance: The Federal Deposit Insurance Corporation (FDIC) insures deposits in banks. As a retail bank business, it is mandatory to obtain FDIC insurance to protect your customers’ deposits.
• State and Federal Licenses: Depending on the state and country you are operating in, there may be additional licenses required by the local and federal authorities. Research and confirm the needed licenses applicable to your retail bank business.

Here are three tips to keep in mind when securing necessary permits and licenses for your retail bank business:

• Start the process early to avoid any delays: Processing permits and licenses can take time, so it is crucial to start the process early in the planning stages to avoid any unwanted delays in opening your retail bank business.
• Work with a professional: Navigating the regulatory environment can be challenging, and it might be helpful to work with a professional who has experience in obtaining permits and licenses for businesses.
• Stay organized: Keep track of all documentation required for the application process in a central location to avoid loss of information and delays in processing.

Obtaining all the necessary permits and licenses for your retail bank business can be a time-consuming and overwhelming process. However, with proper research and planning, you can ensure that your retail bank business operates legally and efficiently. Make sure to comply with all the regulatory requirements, obtain the required permits and licenses, and make the necessary preparations before officially launching your retail bank business.

8. Launch Promotional Activities

Now that your retail bank is up and running, it's time to let people know about it! Marketing and promotion are critical to attract customers and build a loyal customer base. Here we'll outline various ways you can promote your new retail bank business.

• Social Media Marketing: Social media is an excellent platform to reach out to potential customers. Create a social media profile page for your business on popular platforms such as Facebook, Twitter, Instagram, and LinkedIn. Regularly post informative and engaging content to keep your followers interested.
• Email Marketing: Collect email addresses from customers and potential customers through sign-ups, and send them newsletters and promotional emails. Keep your emails informative and personalized.
• Digital Advertising: Run digital advertising campaigns on search engines, social media platforms, and other relevant websites to drive traffic to your website or physical branch.
• Traditional Advertising: Don't ignore traditional advertising methods such as newspapers, radio, and TV ads. These mediums work well to reach out to local customers and communities.
• Event Sponsorship: Sponsor local events, sports teams, local schools, and charities to get more exposure and create goodwill for your business.
• Referral Programs: Encourage your existing customers to refer your services to others. Incentivize referrals by offering discounts or rewards for each introduced customer.

Tips & Tricks

• Identify your target audience before launching a promotional campaign. Once you know who your ideal customer is, you can tailor your marketing to appeal to them specifically.
• Measure your marketing campaign's ROI regularly. It will help you determine which strategies work and which ones to change or eliminate.
• Engage with your customers: The key to creating a loyal customer base is not just getting their attention but keeping it. Make sure to engage with your customers through social media, customer service, or any other channels that are available. Respond to queries and provide customers with helpful information.

Effective promotional activities can result in enhanced brand awareness and higher customer acquisition rates. Keep track of your promotional activities and evaluate their impact regularly. Adjust and modify strategies to suit your goals. Remember that marketing is not a one-time investment, but rather a continuous process that requires persistence and smart decision making.

9. Develop Customer & Service Base

Developing a loyal customer base is crucial for the long-term success of a retail bank. Banks heavily rely on customer trust and retention to maintain a steady flow of revenue. In addition to building a loyal customer base, it is equally important to develop a strong service base to meet client needs and expectations.

• Create a Marketing Plan: Developing a marketing plan is essential to reach potential clients. Banks must work with professional marketers to develop a comprehensive strategy that includes traditional and digital marketing.
• Invest in Customer Service: Customer service should be a top priority when starting a retail bank business. Investing in customer service programs, such as online chatbots and call centers, can help improve customer satisfaction and retention rates.
• Develop a Strong Brand Identity: Developing a strong brand identity is crucial for banks to stand out from their competitors. A distinct brand identity can improve brand recognition and ultimately lead to increased customer loyalty and referrals.

Tips & Tricks for Developing a Customer & Service Base:

• Talk to Your Customers: Regularly communicating with your customers can help you understand their needs and expectations. This can help you tailor your services to meet their needs and build stronger relationships.
• Simplify Processes: Simplifying processes for your customers can help improve customer satisfaction. Make sure your website is easy to navigate and that your staff is trained to assist customers with any questions or concerns they may have.
• Stay Competitive: Stay up-to-date with the latest trends and technology in the industry to stay competitive. Continuously evaluate your services and make updates as needed to meet changing client expectations.

Building a loyal customer base and developing a strong service base are both crucial steps to starting a successful retail bank business. These steps require a combination of strategic planning, investment in technology and staff training, and constant adaptation to meet changing client needs and expectations.

10. Monitor & Measure Performance

After successfully launching your retail bank business, monitoring and measuring your performance is crucial for sustained growth. This step involves tracking your Key Performance Indicators (KPIs) to gain insight into how well your business is performing and where improvements can be made.

• Identify your KPIs: Determine which metrics are most important for tracking the success of your business, such as customer acquisition, retention rates, profit margins, and loan delinquency.
• Use software: Invest in software that can help you monitor and analyze your KPIs on a regular basis. This will save you time and allow you to make informed decisions in real-time.
• Create a scorecard: Create a dashboard that provides a snapshot of your KPIs, making it easy to identify trends and areas for improvement.

Regularly monitoring and measuring your performance will allow you to stay on track and achieve your business objectives. Measuring your KPIs will help you identify any potential issues before they become major problems and provide insights to measure your success.

• Carry out internal audits: Regular internal audits will help you identify any potential financial or compliance risk in advance, and implement necessary corrective actions in future.
• Monitor customer feedback: Monitor customer feedback periodically to identify areas for improving customer services and satisfaction. This will help you retain customers and attract new business.
• Track market trends: Stay informed of the latest industry trends and best practices in order to stay ahead of the competition, retain customers and remain competitive.
• Build strong relationships with vendors/suppliers: Build lasting relationships with vendors and suppliers in order to ensure timely and seamless supply of required goods and services.

In conclusion, monitoring and measuring your business performance regularly will help you identify your strengths and weaknesses, keep a check on your progress and achieve your business objectives. Use the tips and tricks stated above to ensure that your retail bank business stays on track and keeps growing.

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Retail Dogma

RETAILDOGMA

RETAIL EDUCATION & TRAINING SOLUTIONS

Retail Business Plan

A retail business plan is a document that gives you and your potential investors a roadmap on how your new retail business intends to get started and deliver its business goals over its initial few years (usually 5 years).

It is usually broken down into sections about the company, the industry it operates in, the competition it will face and a plan that covers marketing, financials and operations over the first few years in business.

Also check out this one-page Business Model Canvas for a retail business .

Retail Business Plan Template

You can download this free retail business plan template from the link below. You will be able to edit the word file and export it into PDF format afterwards.

In the coming sections, we will explain the different components that go into the retail business plan, which you can then apply to your own plan when completing the template.

Check out more free downloads .

Executive Summary

We recommend writing the executive summary at the end of the process, after you have filled out all the other sections in the retail business plan template.

In the executive summary you will cover the following points briefly:

• Types of products sold at the store
• Customers served by the store
• Company mission & vision
• Market share to be captured

You will also mention the total amount you will need to start this business, backed by the financial plan you prepared as part of this business plan.

The total amount that you want to borrow or have invested in your business will be the sum of pre-opening costs (initial inventory, equipment, rent,..) and the maximum negative cash flow as per your cash flow plan.

If you are writing this retail business plan for a financial institution to get a loan, mention how you expect to repay the loan, and you should have already included the loan installments in your financial plan.

If you are writing this plan for investors, mention how much equity they will receive in return for this investment and the expected return on investment, and expected cash distributions (dividends) based on your financial plan.

For example

An investment of 100,000$ in the business will result in the investor receiving 20% equity. We plan to distribute 50% of the profits every year, and based on our financial projections this will be a xx,xxx$ in the first year, xx,xxx$ in the second year, and xx,xxx$ in the third year,..etc.

Company Overview

Here you will write about your business and give a brief overview about the type of store you will be starting.

You can cover the following points:

• Store category (e.g. beauty store, toy store)
• Store location and brief description of the area
• Product categories carried
• Company legal structure

Industry Overview

Write an overview about the industry (retail/ecommerce) as a whole and the most recent trends specific to this industry.

Cover areas such as:

• Total retail sales
• Contribution of your retail category to the total sales (size of the market)
• Online vs. Brick & Mortar trends
• Recent industry trends and shifts in terms of products you are selling

You can find the most recent insights about retail in our Retail Statistics page.

Read Also: What is Retail ?

Target Market

Write about your target customers that you know will be interested in your products. Mention demographic and psychographic details in this section. This will help afterwards in drafting your marketing plan.

You can cover the following details:

• Age bracket
• Income level
• Educational level
• The specific needs that your products will fill for them

FOUNDATIONS OF MARKETING

• Learn the fundamentals of marketing
• See how they apply to buying, merchandising & pricing
• Real-life case studies and examples

Competition

List the current competition in the market that are serving your target customers. Mention your top 3 competitors in your area.

You can also include indirect competition, such as online stores or marketplace sellers, if you think this might affect your business.

Cover information about:

• No. of stores
• Size of stores
• Product categories they sell
• Pricing level
• Sales per day estimates
• Strengths & Weaknesses

You can also create a summary table like the one below

Competitive Advantage

What will make customers leave the competition and come to you? Use the weaknesses areas that you mentioned about the competition in the previous section, and mention how you will improve on them.

This could be by:

• Superior quality
• Better prices
• Convenience
• More variety
• Better shopping experience

Marketing Plan

Describe your marketing strategy for your store and which channels you are going to use.

Cover the following areas:

• Brand Positioning
• Branding Strategy (Persona, tone, language,..)
• Product Strategy (Key products and product features that will attract your customers)
• Pricing Strategy
• Promotional Strategy
• Marketing Channels

Operations Plan

Write how you will operate your store and include details about your manpower plan.

This will include the management that you will hire for the store, visual merchandisers, sales staff and cashiers.

Cover the following:

• Management structure (store manager, supervisor,..)
• Staff plan (3 sales associates, 2 cashiers, etc.)
• Brief role descriptions
• Compensation structure

Read Also: Retail Scheduling

RETAIL OPERATIONS MANAGEMENT

• Managing Store Operations
• Areas of Responsibility
• Assessing & Managing Performance

Financial plan

List estimates for the capital you will need to start and financial projections for the following years.

Capital Needed

Start with how much capital you will need to start the business

This will include:

• Initial rent
• Initial product order (Inventory)
• Initial staff salary
• Store fixtures
• Store equipment

Read Also: How Much Capital You Will Need For a New Retail Store?

Financial Projections

Include a 5-year financial projection for the business based on your forecasted sales and costs.

• Monthly income statement (P&L) for the first year
• Yearly income statement for the following 4 years
• Monthly cash flow projection for the first year

Learn how to create a sales budget for a new store, and 3 years financial projections in our Retail Budgeting Course

RETAIL BUDGETING & PLANNING

• The step by step retail budgeting process
• Set monthly targets adjusted to seasonality
• Templates download & practice exercise

Break Even Point

Include a snapshot of the 5-year P&L plan here and mention the SPD (sales per day) you need to breakeven, based on your P&L numbers.

We have created a sample table with retail data in the business plan template, and you can fill it with your own numbers.

Key Assumptions

Mention the assumptions you used for creating your financial projections.

For example , you assumed that sales per day for the first year will be 1000$ and then will grow by 20% in the second year, 15% in the third year and 10% in the fourth year, etc.

Retail Business Plan Tips

Sales projections.

We recommend being very realistic about your initial sales per day projections, as your entire financial plan will be directly affected by it.

When you then forecast your growth for the coming years, you should also be realistic about how much you will grow year-on-year.

From our experience, retail stores typically see higher growth after the first year and then this starts to level off from the third year onwards.

Having said that, there might be other growth drivers that can affect your business and accelerate your growth in the following years. This could be for example that your new store is in an area that is still under development and will be fully developed by the third year.

What we want to say is, do your due diligence thoroughly and based on that set realistic expectations.

Inventory Projections

The biggest asset you will hold and the biggest part of the investment/loan you will need to start your retail business will go for inventory.

So it is important to calculate your inventory needs correctly.

This will be based on your sales forecasts and the inventory turnover rate you expect or the forward stock cover you intend to maintain.

For example, if your inventory turnover target is 2, this means you maintain a 6 months cover. If your inventory turnover is 3, you maintain 4 months stock cover,..and so on.

We recommend checking out the benchmarks we have listed for different retail categories for inventory turnover and reading our complete Open to Buy guide to get started with calculating exactly how much inventory you will need.

Good luck in your new venture!

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How to Create a Fruitful Bank Business Plan- Free PDF Included

Tamana Gupta

 A bank is a type of financial institution that accepts deposits and extracts money from customers' accounts. The banking industry, like other businesses, needed a large capital expenditure to get off the ground.

A business plan for the banking sector is essential for starting and growing banks. Financial institutions need a business plan for banks because their regulations are based on similar ones. So, it should be designed to grab the interest of lenders, stakeholders, and investors.

Business plans for the banking sector must include clear and attainable goals for the future, marketing strategies, timeliness, ways to use the investments and information about the organization. For the company to achieve its objectives, it must project the estimations of the commercial operations that have been planned during the previous three fiscal years and evaluate their viability.

Guidelines for Writing a Business Plan for the Banking Sector

Prepare a thorough banking business plan by going through all the relevant topics in depth. Provide the reasons for starting the firm and the goals that demonstrate the entrepreneur's skill and pique the interest of venture capitalists. Before creating a business plan for the banking industry, there are a few questions that should be adequately addressed. As follows:

What kind of market do you have, and where?

What is the likely range of your industrial expansion?

Who are your intended customers?

What types of regulations will you put in place to lure consumers?

How will you carry out your carefully thought-out policies and take the appropriate measures in response?

So, here are a few of the essential slides that you must incorporate into your business plan to make it stand out.

# Detailed overview of the bank

This slide is to portray organization details including name, incorporation date, web address, start-up investment, services, etc. It also covers the quick pitch and goals and objectives of the bank. 

The company overview is part of your business plan that gives the basics and background of your business. It's the foundation on which you will build the rest of your business plan. You need the reader to be well-informed about your business to entice investors or future customers.

This slide is 100% editable, so download it right now.

Download this Template Now

# Market gap and opportunity of a banking firm

The purpose of this slide is to highlight the market gap and focus on devising solutions to overcome those challenges. It also helps to identify unexplored areas that other businesses in the same space are not serving currently. 

A market gap is an area where there is a need from customers but where businesses do not already fill the void.  A market gap opportunity is a chance to create and offer something currently unavailable. 

So, highlight the market gap along with its solution in the slide to give a glimpse to the investor.

# Description of products and services offered by the bank

This slide is to express the benefits the bank provides to its customers or clients. It includes individual, business, and digital banking services in addition to all kinds of loan services.

Your business plan's section on products and services helps the reader understand why you're in business, what you sell, how you compete with existing options, or how you fill a market gap that no one else is filling.

So, highlight the different services your bank is offering to you.

# Choosing an ideal business location for the bank

This slide portrays an ideal business location for the bank that minimizes the risk of failure. It covers gathering and analyzing data in order to select the optimal location in terms of feasibility, economy, and future sustainability.

Choosing an apt location for your business not only helps you in retaining employees but also makes you more accessible in attracting target customers. 

So, highlight the few things you are considering while choosing the location to make the users of the business plan aware.

# Major restraints hampering growth in the banking industry

The idea behind this slide is to guide stakeholders about the problems prevailing in the industry. It covers various challenges such as technology, meaningful experience, and sustainability. 

However, highlighting the major restraints in a business plan will make you understand the clear-cut challenges that they have to overcome.

# Evaluating client journey through a sales funnel

This slide highlights customer journey mapping to track users' actions and key touch points across levels such as awareness, conversion, loyalty, and retention. It enables organizations to see how well each step of the sales process is working.

A sales funnel is a word used in marketing, to sum up and define the path taken by potential clients from prospecting to purchase.

# Understanding the bank’s operational framework to ensure success

The purpose of this slide is to outline the key objectives and goals of an organization and how to reach them by crafting an operational plan. It keeps teams on track while guiding them in making crucial decisions about the banks’ long-term strategy.

In this slide, you can highlight the 1-YEAR plan, 3-YEAR plan, and 5-YEAR onwards plan to achieve the goals and objectives. 

# Deploying an efficient organizational structure for smooth operations

The purpose of this slide is to craft a successful hierarchical framework for the bank to ensure smooth operations. It includes personal bankers, cashiers, clerks, technical supervisors, etc.

An organizational structure is a system that defines how specific tasks are directed in order to fulfill the goals of an organization.

So, highlight the organizational chart in the slide to make it clear to the audience, how the pattern is being followed in the organization.

# Job roles and responsibilities of each department (contd.)

This slide aims to highlight key job roles and responsibilities of the bank staff to ensure effectiveness and efficiency in the operations. It also helps in avoiding duplication of work. Job responsibilities refer to the duties and tasks of their particular roles.

Companies that identify roles and responsibilities can streamline their hiring processes. It may encourage their employees to perform better and pay closer attention at work. It also helps enhance operational efficiency by removing confusion and redundancy.

# Possible exit options for stakeholders

This bank business plan slide represents exit strategy for stakeholders such as IPO, Mergers, Acquisitions, Private offerings, and Venture Capital. It gives a business owner a way to reduce or liquidate their stake in a business and make a substantial profit if the business is successful.

An exit option is a clause in a business plan or project that enables a corporation to abandon the venture with only minor financial repercussions.

So download this ready-to-use PowerPoint presentation and edit the text as per your requirement.

Wrapping up

You can get all the information you need to understand the market, the industry, and both at once for the bank business plan in this PowerPoint. 

At SlideTeam, a group of researchers and designers work together on projects to create material that satisfies customer requirements. You alter our business plan ppt  to suit a person's unique professional needs.

What is the purpose of a business plan for a bank?

A business plan outlines your growth strategy for the next five years and gives a current picture of your bank. It outlines your company's objectives and your plans for achieving them. Market research is also included to help you with your plans.

Which three business models do banks typically use?

A commercial bank with retail funding, a commercial bank with wholesale funding, and a bank focused on the capital markets are the three business models we identify. While the third type stands out principally due to banks' growing involvement in trading activities, the first two models differ primarily in how banks choose to fund their operations.

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Retail Bank Business Idea Description in 5 W’s and 1 H Format

By alex ryzhkov, retail bank bundle.

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Are you ready for a banking revolution? Look no further than Innovate Bank, the brainchild of industry expert John Smith. With a comprehensive range of financial products and services, Innovate Bank is set to transform the banking experience, one customer at a time. Headquartered in the bustling metropolis of New York City, this trailblazing retail bank has its sights set on expanding across the United States, bringing their innovative solutions to major cities nationwide. Mark your calendars for early 2024, when Innovate Bank will make its grand entrance, promising to leave a lasting imprint on the industry. By 2026, they plan to make their mark in at least 10 cities, leaving competitors in awe. But what sets Innovate Bank apart from the rest? Harnessing the power of advanced technology and combining it with personalized customer service, Innovate Bank is poised to deliver seamless and tailored banking solutions. Don't get left behind in the banking wilderness – join the transformative journey with Innovate Bank.

Key Takeaways

• Innovate Bank is a retail bank founded and led by John Smith, a seasoned financial industry expert.
• The bank aims to revolutionize the banking experience by offering a comprehensive range of financial products and services.
• Headquartered in New York City, Innovate Bank plans to establish branches in major cities across the United States.
• The bank will launch its operations in early 2024 and aims to have a strong presence in at least 10 cities by 2026.
• Innovate Bank will leverage advanced technology and personalized customer service to provide seamless and tailored banking solutions.

The retail bank, Innovate Bank, is founded and led by John Smith, a seasoned financial industry expert with over 20 years of experience. John Smith has a proven track record of successfully launching and managing multiple financial institutions in the United States.

Major Players

• John Smith - Founder and CEO of Innovate Bank
• John Smith - Majority owner of Innovate Bank
• John Smith - CEO
• Executive Team - Comprises experienced professionals in various key roles such as Chief Financial Officer, Chief Operations Officer, and Chief Technology Officer.
• Customer Service Representatives - A dedicated team trained to provide exceptional assistance and guidance to customers.
• Financial Industry Experts - Innovate Bank seeks advice from experienced professionals in the financial industry to ensure strategic decision-making and regulatory compliance.
• Legal Consultants - The bank engages with legal experts to navigate complex regulatory requirements and ensure compliance with banking laws.
• Individuals - Innovate Bank caters to the diverse financial needs of individuals, offering them a range of products and services, including checking and savings accounts, loans, credit cards, and investment opportunities.
• Businesses - The bank also offers tailored solutions for businesses, such as business accounts, loans, and merchant services, to support their financial growth and operations.

Competition

• Established Banks - Innovate Bank competes with traditional retail banks that have a long-standing presence in the market and offer similar financial products and services.
• Online Banks - The bank also faces competition from online-only banks that prioritize convenience and digital banking experiences.

Target Audience

The ideal clients of Innovate Bank are individuals and businesses who value innovative and personalized banking experiences. The bank aims to target tech-savvy individuals who prefer digital banking platforms and seek convenience, as well as businesses of all sizes who require tailored financial solutions to meet their unique needs.

Innovate Bank is a full-service retail bank that aims to revolutionize the banking experience for its customers. We offer a comprehensive range of financial products and services, including checking and savings accounts, loans, credit cards, and investment opportunities. Our bank is committed to providing innovative and tailored solutions to meet the diverse needs of our customers.

What do we want to achieve?

Our goal is to redefine banking by combining cutting-edge technology with personalized customer service. We strive to be the preferred banking partner for individuals and businesses, offering convenient and flexible banking solutions that save time and meet the evolving financial needs of our customers.

What is our sustainable advantage?

Our sustainable advantage lies in our founder and leader, John Smith, a seasoned financial industry expert with over 20 years of experience. His proven track record of successfully launching and managing multiple financial institutions in the United States sets us apart from our competitors. We have the expertise, knowledge, and strategic vision necessary to navigate the dynamic banking landscape and adapt to changing customer preferences.

What do we offer?

At Innovate Bank, we offer a wide range of financial products and services to cater to the diverse needs of our customers. We provide checking and savings accounts with competitive interest rates and convenient features such as online and mobile banking platforms. Our loan products include personal, auto, and mortgage loans, tailored to fit our customers' specific requirements. We also offer credit cards with rewards programs and investment opportunities to help our customers grow their wealth.

What do we produce?

As a retail bank, our primary focus is producing financial solutions and services that enable our customers to manage their finances effectively. We produce seamless online and mobile banking platforms that provide real-time access to account information, transfer funds, and make payments conveniently. Additionally, we produce personalized loan offerings, credit cards, and investment opportunities that cater to our customers' individual financial goals and aspirations.

What are our business objectives?

Our short-term business objective is to launch our operations in early 2024, after completing all regulatory requirements and obtaining necessary licenses. We aim to establish a strong presence in at least 10 cities by 2026, with plans for further expansion in subsequent years. Additionally, we expect to sell $1,000,000 worth of products and services by the end of the second month, setting a solid foundation for future growth.

In summary, Innovate Bank aims to revolutionize the banking experience by providing innovative and tailored financial solutions. Led by a seasoned industry expert, we leverage advanced technology, personalized customer service, and strategic partnerships to offer a wide range of banking products and services to individuals and businesses. Our sustainable advantage lies in our expertise and strategic vision, setting us apart from competitors. Our business objectives include expansion to major cities, achieving strong financial performance, and becoming a preferred banking partner for our customers.

Innovate Bank is headquartered in the bustling financial district of New York City, located at 123 Wall Street. This strategic location places the bank at the heart of one of the world's most influential financial centers, surrounded by numerous financial institutions, businesses, and a diverse population of potential customers. This prime location offers Innovate Bank a unique advantage in attracting both individual customers and corporate clients.

In addition to its headquarters, Innovate Bank plans to establish branches in major cities across the United States. The first expansion will be in Los Angeles, where the bank will open a branch on Wilshire Boulevard, a highly populated and economically vibrant area. This branch will serve the needs of local residents, professionals, and businesses in the surrounding areas.

The bank's next expansion will take place in Chicago, where a branch will be opened in the Loop, the city's central business district. This location will allow Innovate Bank to tap into the strong presence of financial institutions and the growing demand for modern banking solutions in the area.

Another key expansion target for Innovate Bank is Miami, a city known for its thriving international trade and finance. By opening a branch in Brickell Avenue, a major financial hub in Miami, the bank aims to cater to the needs of both local residents and international clients looking for innovative banking services.

The target audience for Innovate Bank encompasses a wide range of individuals and businesses seeking a modern, innovative banking experience. For individual customers, the bank offers products and services tailored to meet various financial needs, including millennials who are technologically savvy and value convenience, as well as established professionals and retirees who seek personalized attention and superior customer service.

For businesses, Innovate Bank provides comprehensive banking solutions, including business accounts, financing options, and cash management services. The bank's target business customers include small and medium-sized enterprises (SMEs), startups, and larger corporations in industries such as technology, finance, and retail.

New Opportunities

Expanding beyond its initial locations, Innovate Bank envisions further opportunities in other major cities across the United States, such as San Francisco, Houston, and Atlanta. These cities offer significant economic potential and a favorable business environment, attracting both individuals and businesses looking for advanced banking solutions.

Innovate Bank also recognizes the emerging trend of digital banking and plans to capitalize on it. By investing in cutting-edge technology and establishing robust online and mobile banking platforms, the bank aims to capitalize on the growing demand for convenient and flexible banking services. This presents a significant opportunity to attract tech-savvy customers who prefer digital interactions and expect seamless banking experiences.

Path to Expansion

The path to expansion for Innovate Bank involves a meticulous strategy of obtaining necessary regulatory approvals and licenses, followed by the establishment of new branches in targeted cities. The bank will leverage its experienced leadership team, led by John Smith, to navigate the regulatory landscape and ensure compliance with all legal requirements.

In parallel, Innovate Bank will focus on building strong partnerships with leading fintech companies and financial institutions. These partnerships will enable the bank to enhance its product offerings, incorporate the latest technological advancements, and stay ahead of competitors in the rapidly evolving banking industry.

By recruiting a team of dedicated customer service representatives and investing in their training, Innovate Bank will ensure that its customers receive exceptional assistance and guidance, building long-lasting relationships and trust. This personalized customer service approach will be a key differentiator for the bank, setting it apart from its competitors and contributing to its success in new markets.

In summary, Innovate Bank is strategically positioned to serve customers in New York City and expand its presence to major cities across the United States. Through its commitment to innovation, personalized customer service, and strategic partnerships, Innovate Bank aims to revolutionize the banking experience and become a trusted financial institution for individuals and businesses alike.

• Headquarters: 123 Wall Street, New York City
• First Branch: Los Angeles - 456 Wilshire Boulevard
• Second Branch: Chicago - 789 Main Street, The Loop
• Third Branch: Miami - 101 Brickell Avenue

When it comes to the timeline for Innovate Bank, the organization has set specific goals and milestones to achieve its vision of revolutionizing the banking experience. The bank plans to commence its operations in early 2024, allowing sufficient time to complete all regulatory requirements and secure the necessary licenses. This careful preparation ensures that Innovate Bank starts its journey with a strong foundation and compliance with industry standards.

From the moment Innovate Bank opens its doors, it aims to hit the ground running and deliver exceptional banking services to its customers. With the expertise and experience of John Smith, the founder and leader of Innovate Bank, the organization anticipates seeing immediate results and a positive response from customers. By combining cutting-edge technology with personalized customer service, Innovate Bank aims to differentiate itself from competitors and gain a loyal customer base.

The primary objectives of Innovate Bank are to establish a strong presence in at least 10 major cities across the United States by 2026, ensuring accessibility to a wide customer base. This expansion plan prioritizes strategic locations such as Los Angeles, Chicago, and Miami, contributing to the bank's overall growth and customer reach. By pursuing aggressive but achievable expansion goals, Innovate Bank seeks to make a significant impact on the banking industry and redefine customer expectations.

While Innovate Bank aims for rapid growth and expansion, it recognizes the importance of long-term sustainability and success. As part of the bank's strategic planning, it envisions John Smith's retirement from the company in a specific year after 2023. The retirement plan includes a well-defined departure strategy to ensure a smooth transition of leadership and continuity of operations.

To facilitate a seamless transition, Innovate Bank plans to sell its firm in the same specific year after 2023 when John Smith retires. This deliberate decision aligns with the bank's commitment to maintaining its momentum and steady growth trajectory. By strategically timing John Smith's retirement and the sale of the firm, Innovate Bank sets itself up for continued success and a legacy built on innovation and customer-centric banking.

In the event that selling the firm proves challenging or unfavorable, Innovate Bank has taken into account the possibility of closing down in a specific year after 2023. While this option is not the primary objective, it demonstrates the bank's preparedness for various scenarios and commitment to ensuring a responsible exit strategy.

Innovate Bank is driven by a strong commitment to revolutionizing the banking experience for its customers. We understand the growing demand for convenience and flexibility in banking, and we aim to provide seamless online and mobile banking platforms to ensure our customers can access their accounts and manage their finances anytime, anywhere. Our focus on personalized customer service sets us apart from our competitors and aims to build long-lasting relationships and trust with our valued customers.

Customer Convenience and Tailored Solutions

At Innovate Bank, we recognize the diverse needs of our customers and are dedicated to providing innovative and tailored solutions to meet them. We offer a comprehensive range of financial products and services, including checking and savings accounts, loans, credit cards, and investment opportunities. Our state-of-the-art online and mobile banking platforms offer a user-friendly interface, robust security measures, and real-time access to account information, ensuring optimal convenience for our customers.

Exceptional Customer Service

We firmly believe that exceptional customer service is the foundation of a successful banking relationship. To ensure a seamless and satisfying banking experience, we have established a team of dedicated customer service representatives who are trained to provide exceptional assistance and guidance. Our customer service team goes above and beyond to address customer queries and resolve any issues promptly, allowing us to build strong and long-lasting relationships with our valued customers.

Strategic Partnerships and Continuous Innovation

At Innovate Bank, we understand the importance of staying up-to-date with the ever-evolving needs and expectations of our customers. To achieve this, we have forged strategic partnerships with leading financial institutions and fintech companies. These partnerships allow us to continuously enhance our product offerings and provide cutting-edge financial solutions to our customers. Our commitment to continuous innovation sets us apart from our competitors and positions us as a leading retail bank in the market.

Mission Statement

Our mission at Innovate Bank is to redefine banking by combining cutting-edge technology with personalized customer service. We aim to provide our customers with convenient and flexible banking solutions, tailored to their individual needs. Through our innovative products, exceptional customer service, and continuous technological advancements, we strive to build lasting relationships with our customers and become their trusted financial partner.

Innovate Bank will be structured as a corporation, with John Smith as the founder and CEO. This choice of structure was made due to its advantages in terms of liability protection and ease of attracting investors. As a corporation, Innovate Bank will have its own legal entity, separate from its owner, providing limited liability protection for John Smith and other shareholders. This structure also allows for the issuance of stocks, enabling the bank to raise capital for expansion and growth.

To navigate the registration procedures, rules, and liabilities involved in starting a retail bank, Innovate Bank will engage the services of a reputable business attorney. This small business advisor will provide expert guidance on legal matters, ensuring compliance with regulatory requirements and reducing the risk of legal issues.

In order to achieve the company objectives, Innovate Bank will hire a team of experienced professionals across various departments such as operations, finance, marketing, and technology. These individuals will bring their expertise to drive the bank's growth and deliver exceptional services to customers. John Smith, as the CEO, will oversee the overall operations and provide strategic direction to the team.

The steps taken to achieve the objectives include meticulous planning and execution. Innovate Bank will develop a comprehensive business plan that clearly outlines its goals, target market, and competitive advantages. Market research and analysis will be conducted to identify customer needs and preferences, enabling the bank to tailor its product offerings accordingly.

Moreover, Innovate Bank will invest heavily in cutting-edge technology and data analytics capabilities. By leveraging advanced systems and tools, the bank will be able to provide personalized financial solutions to customers, enhancing their banking experience. Ongoing monitoring and analysis of customer feedback will further inform improvements and refinements to the bank's offerings.

Regarding the future development of Innovate Bank, the organization envisions becoming a prominent player in the retail banking sector, known for its innovation, personalized service, and technological advancements. The bank aims to expand its presence beyond the initial 10 cities, with plans for national and potentially international expansion in subsequent years.

The vision statement of Innovate Bank is to redefine banking by seamlessly integrating cutting-edge technology with personalized customer service. The bank aims to be the go-to institution for customers seeking convenient and flexible banking solutions, delivered with a human touch. It envisions becoming a trusted financial partner, building long-lasting relationships with customers based on transparency, reliability, and innovation.

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Reshaping retail banks: Enhancing banking for the next digital age

The most direct path to success is to target profit pools in specific businesses of the universal banking model—daily banking (deposit accounts, payments, and credit cards), navigating life events (with complex lending products), or building and protecting wealth—where the bank can define and deliver a value proposition that can win in our new digital age. While much has been made of the threat from fintechs and Big Tech, we believe incumbent banks will continue to lead in retail banking. Banks running the old playbook, however, will not survive; the new winners will operate like tech companies, with advanced data capabilities, a cutting-edge tech stack, and an agile operating model.

Banking faces severe challenges

About the authors.

This article is a collaborative effort by Ashwin Adarkar , Stefano Cantù, Klaus Dallerup , Vito Giudici, Enrico Lucchinetti, and Zaccaria Orlando, representing views from McKinsey’s Financial Services Practice.

Differences in the profitability of key retail banking businesses have always existed to some extent, depending on the market, and daily banking has often served as the foundation for building lifetime client relationships.

However, to succeed in today’s fast-evolving market, which leaves little margin for underperformance, it is imperative for banks everywhere to know where they make a profit and where they don’t (Exhibit 1), and to protect and expand their most strategic revenue streams. While the need for closer examination of profitability is global, the severity of the challenges to the traditional model of universal banking and the implied strategic imperatives generally vary by region:

• In Europe, North America, and developed Asia, the imperative for retail banks is to embrace new technology—including a digital-first business model and hybrid-cloud core technology stack—to move to a fundamentally lower cost curve, fight attackers on innovation, and identify new sources of revenue in complex lending and wealth/protection via end-to-end journeys and personalization.
• Banks in China and emerging Asia should fight for share of wallet while also focusing on increasing the penetration of higher-value businesses, especially complex lending; they should improve the economics for complex lending and wealth/protection through product innovation and segmentation.
• In Latin America, the Middle East, and North Africa, banks need to leverage current profits from daily banking to defend market share against digital attackers and avoid the economic challenges to daily banking seen, for example, in North America. This could be done either by diversifying the source of profitability within daily banking or deepening relationships with daily banking customers by cross-selling complex lending or wealth and protection services.

The vulnerabilities inherent in the universal banking model are becoming more severe as three key trends continue to reshape the competitive environment:

• shifting in scale advantages from branches to innovation
• digital attackers taking the first significant bites out of traditional banks’ revenue streams
• consumers wanting more digital offerings and superior experiences

The fight for customer relationships has moved to new terrain unfamiliar to banks, and many incumbents are ill-equipped to defend market share on the digital battlefield. This is a battle banks cannot afford to lose, and they will need to fortify themselves with new, reimagined, fit-for-purpose value propositions and business models.

How customers will engage with the retail bank of the future

To thrive in the new digital environment, banks will need to rearticulate their value proposition, bearing in mind the power of simultaneously simplifying and upgrading the customer experience and creating value through data. Each bank should prioritize a retail business—or, depending on capital resources and competitive strengths, multiple businesses—and develop a digital platform that supports the full search-shop-manage value chain of the priority businesses (Exhibit 2):

• The daily banking platform would focus on simplifying daily shopping activities by embedding transactions seamlessly (and often invisibly) within customer journeys and giving customers fast, convenient access to diverse retailers and service providers.
• The home and life events (or complex lending) platform would increase customer value through ecosystem partnerships supporting end-to-end journeys for major life undertakings, from search and selection to financing and ongoing management and maintenance.
• The platform for wealth and protection services would compete on the appropriate use of customer data to deliver hyperpersonalized advisory support, enabling investors to make well-informed decisions about increasing and protecting wealth over decades.

Each of the three business models—daily banking, navigating life events, and building and protecting wealth—if executed successfully, could provide a much-needed boost in profitability for retail banks, with target cost-to-income ratios between 40 and 50 percent. Cost-reduction levers would differ for each model but would include optimization of branch networks and maximum automation of customer acquisition/onboarding, credit underwriting, servicing, and more. In addition to increased product penetration across the customer base, income levers include new revenue streams with ecosystem partners (Exhibit 3).

The adoption of platform-based business models will unleash a kind of internal disruption, requiring banks to give up revenue in some areas (for example, net interest margins, transaction fees, and commissions on securities trading) as they position themselves for fast growth in the target business.

Operate like a tech company

To deliver a market-leading platform-based value proposition, banks will need to work like a tech company. Leaders should act promptly to take advantage of strong financials and double down on three key capabilities essential to a platform-based business model: data analytics, a cutting-edge technology stack, and an agile operating model.

Leveraging data for personalization and stronger customer engagement

Crucially, banks have real advantages against Big Tech regarding customer engagement and data, but they have yet to extract the full value of these assets. To compete for data on an equal footing with technology companies, banks will need a comprehensive data infrastructure to support data collection, storage, and advanced analytics, as well as a digital marketing engine to translate analytical insights into personalized messages that anticipate individual customer needs and intentions.

A cutting-edge technology stack to reduce costs and speed up innovation

Each of the main retail banking business models requires an IT infrastructure that is capable of handling significant variations in demand for streaming and processing capacity and delivering new solutions through fast innovation cycles.

The main challenge in designing the new architecture is deciding which components should be developed in-house to strengthen competitive differentiation and which elements of the infrastructure can and should be outsourced to reduce the cost and the risk of service interruptions attendant to updates and upgrades. In addition, the cloud services available today have reached a level of maturity and accessibility that affords banks diverse options (including in-house development and various partnership models) for meeting the requirements of a maximally automated, digital-first business.

An agile operating model to respond to fast-changing markets

Winning banks will develop speed as a core competitive advantage, and they can do this through two main avenues: an agile operating model and building the right mix of talent and skills.

Banks must push ahead with their transition to an agile culture, removing barriers to cross-functional collaboration and creating semiautonomous teams that can deliver solutions quickly in alignment with enterprise strategy. Consistency in roles, communication, and work patterns across teams enables an organization to reallocate funding and form new teams quickly as new opportunities arise and priorities change. 1 “ The five trademarks of agile organizations ,” McKinsey, January 22, 2018; Andrea Alexander, Aaron De Smet, Sarah Kleinman, and Marino Mugayar-Baldocchi, “ To weather a crisis, build a network of teams ,” McKinsey, April 8, 2020.

Sustaining this more dynamic operating model while adapting to a new, more digital environment will require a dramatic shift in skill profiles. For example, the primary role of branch professionals will shift from teller to universal banker, and with an agile tech organization, a bank may see its ratio of developers to tech operations and infrastructure specialists flip from 1:2 to 1.5:1 (Exhibit 4).

Managing this shift in the mix of talent and skills will be a central challenge for banks. Training existing employees to become proficient in higher-value activities is a crucial lever, and our experience and research show that reskilling can be 20 to 30 percent more cost-efficient than recruiting new talent. It also strengthens employee engagement, measured in higher employee retention and higher customer satisfaction, which also contributes to financial performance. 2 “ Enterprise agility: Buzz or business impact? ,” McKinsey, March 20, 2020.

Today’s retail banking market is vastly different in shape and structure from the old environment, in which the traditional model of universal banking was economically sound. In the new world, the winning banks will be those that carefully choose the businesses in which they can lead and commit to building a value proposition, core technology, and operating model fit to win on the digital battlefield.

Ashwin Adarkar is a senior partner in McKinsey’s Southern California office; Stefano Cantù is a partner in the Milan office, where Enrico Lucchinetti is a senior partner and Zaccaria Orlando is an associate partner; Klaus Dallerup is a senior partner in the Copenhagen office; and Vito Giudici is a senior partner emeritus in the Hong Kong office.

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Sample Retail Business Plan

Writing a business plan is a crucial step in starting a retail business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring retail business owners, having access to a sample retail business plan can be especially helpful in providing direction and gaining insight into how to draft their own retail business plan.

Download our Ultimate Retail Business Plan Template

Having a thorough business plan in place is critical for any successful retail venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A retail business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The retail business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your retail as Growthink’s Ultimate Retail Business Plan Template , but it can help you write a retail business plan of your own.

Retail Business Plan Example – MarketMosaic

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

MarketMosaic is a dynamic retail enterprise, poised to redefine the shopping experience by offering an extensive selection of retail items, from the latest tech gadgets to essential household products. Our commitment to competitive pricing, backed by efficient procurement and inventory management processes, ensures that our customers always receive the best value. Situated in the heart of Bakersfield, CA, our goal is to establish ourselves as the go-to shopping destination by being a one-stop-shop for diverse customer needs, thereby setting a new standard in the retail industry.

Our success hinges on our ability to offer a wide range of products at competitive prices and our dedication to exceptional customer service. By training our staff extensively and developing a user-friendly online platform, we enhance the shopping experience both in-store and online. These efforts, combined with our strategic location in Bakersfield, CA, and our focus on leveraging technology to meet customer needs, have positioned us as leaders in the retail sector. Our accomplishments to date include establishing a comprehensive inventory, securing a prime storefront, and building a robust supply chain, laying a strong foundation for future growth.

The retail industry is experiencing rapid transformation, driven by changing consumer preferences and technological advancements. Customers now seek convenience, variety, and value in their shopping experiences, trends that have been accelerated by the rise of e-commerce. This shift presents both challenges and opportunities for traditional and online retailers alike. By understanding these dynamics, MarketMosaic is well-positioned to capitalize on the growing demand for one-stop shopping solutions that blend physical and digital retail spaces. Our approach is designed to not only meet but exceed the evolving expectations of today’s consumers.

Our target customers are diverse, spanning various demographics yet unified by their desire for a convenient, one-stop shopping experience. They value variety, quality, and affordability in their purchases, ranging from tech aficionados looking for the latest gadgets to busy families in need of daily essentials. By recognizing and adapting to the unique preferences of our customer base, MarketMosaic aims to create a retail environment that caters to the needs of each shopper, ensuring satisfaction and fostering loyalty. Our commitment to understanding and meeting these needs is central to our customer acquisition and retention strategies.

Top competitors include established retail chains and e-commerce platforms. Despite the competition, MarketMosaic’s advantages lie in our wide product range, competitive pricing, and exceptional customer service. Our omnichannel approach, combining an intuitive online platform with a welcoming physical store, sets us apart, allowing us to offer convenience, efficiency, and a personalized shopping experience that surpasses that of our competitors.

At MarketMosaic, our product strategy encompasses a wide variety of high-quality items at competitive prices, ensuring we cater to the diverse needs of our customers. We are dedicated to maintaining a balance between offering the latest trends and stocking everyday essentials, thereby positioning ourselves as a comprehensive shopping destination. Our promotions plan is multifaceted, incorporating local advertising, social media campaigns, and community engagement events to build our brand presence both online and in the Bakersfield area. By leveraging these channels, we aim to attract a broad customer base and foster strong relationships within the community, driving traffic to both our physical store and online platform.

Key operational milestones for MarketMosaic include securing a prime location in Bakersfield, obtaining necessary permits, designing a welcoming retail space, developing efficient supply chain and inventory systems, and hiring a high-performing team. These steps are critical to launching our retail operations successfully and achieving our initial goal of reaching $15,000/month in revenue. Additionally, our focus on customer feedback will allow us to adapt our product offerings and store layout to better meet market demand, ensuring customer satisfaction and loyalty as we establish a strong community presence.

Our management team brings together seasoned professionals with extensive experience in retail, operations, and customer service. This diverse skill set is crucial to our mission of redefining the retail landscape by combining technology with a customer-centric approach. Each team member’s expertise in their respective fields ensures that MarketMosaic is not only equipped to navigate the challenges of the retail industry but also poised to capitalize on its opportunities, driving growth and innovation.

MarketMosaic is a new Retail serving customers in Bakersfield, CA. We are a local retail business, stepping into an arena where high-quality local retail options have been notably absent. Our mission is to fill this void by offering a diverse range of products that cater to the needs and preferences of our community. With our strategic location and a keen understanding of the local market, we are poised to become a staple for shoppers in Bakersfield.

Our product lineup is meticulously curated to meet the wide-ranging needs of our customers. At MarketMosaic, shoppers can find an extensive selection of Apparel and Fashion Accessories, ensuring that the latest trends are always within reach. For tech enthusiasts and those looking to upgrade their gadgets, our Electronics and Technology section offers the latest innovations. Home and Furniture is for customers aiming to add a touch of comfort and style to their living spaces, whereas our Beauty and Personal Care products cater to those who prioritize wellness and self-care. Last but certainly not least, our Groceries and Food Products aisle provides the essentials and specialties alike, making everyday shopping convenient and enjoyable.

Located in the heart of Bakersfield, CA, MarketMosaic serves the local community with pride and dedication. Our strategic location is not just about geographical convenience; it’s about being an integral part of the community we serve, understanding its needs, and evolving with its changing dynamics. This local presence strengthens our commitment to providing a shopping experience that is both enjoyable and rewarding.

MarketMosaic is uniquely qualified to succeed for several reasons. Firstly, our founder brings a wealth of experience from running a successful retail business in the past. This experience is invaluable in navigating the competitive landscape and ensuring that MarketMosaic stands out from the competition. Moreover, our diverse range of retail items is not only more extensive but also priced more competitively than what’s currently available in the market. This combination of experience, variety, and value positions us for success in Bakersfield’s retail sector.

Since our inception on January 5, 2024, as a Limited Liability Company, we’ve made significant strides in establishing our brand. Our accomplishments to date include the creation of our logo, which encapsulates our brand’s essence and values, the development of our company name that resonates with our target audience, and securing a prime location that offers accessibility and convenience to our customers. These milestones are just the beginning of our journey towards becoming the go-to retail destination in Bakersfield.

The Retail industry in the United States is a massive sector that plays a significant role in the country’s economy. As of now, the retail market in the US is valued at over $5 trillion, making it one of the largest industries in the country. With a large and diverse consumer base, the retail industry continues to thrive and show strong growth potential.

Market research indicates that the retail industry in the US is expected to continue growing in the coming years. Experts forecast a steady increase in market size, with an estimated annual growth rate of 3-4%. This growth is driven by factors such as consumer spending, e-commerce expansion, and technological advancements that enhance the shopping experience for customers.

Recent trends in the retail industry, such as the shift towards online shopping, personalized marketing strategies, and sustainability initiatives, are all positive indicators for MarketMosaic. As a new retail business serving customers in Bakersfield, CA, MarketMosaic can leverage these trends to attract and retain customers. By staying ahead of industry developments and embracing innovative practices, MarketMosaic has the potential to carve out a successful niche in the competitive retail market.

Below is a description of our target customers and their core needs.

Target Customers

MarketMosaic will target a diverse customer base, with a significant focus on local residents who are always on the lookout for unique retail experiences. This segment is composed of families, young professionals, and elderly residents who value convenience, quality, and a personalized shopping experience. MarketMosaic will tailor its offerings to meet the specific needs and preferences of these local customers, ensuring a loyal customer base.

The store will also attract customers who are eco-conscious and interested in sustainable living. This segment is growing rapidly, as more people are becoming aware of the environmental impact of their purchases. MarketMosaic will offer a range of eco-friendly products and will emphasize its commitment to sustainability in its marketing efforts, appealing to this environmentally aware customer segment.

In addition to local residents and eco-conscious consumers, MarketMosaic will target tourists visiting Bakersfield. The store will feature locally made products and souvenirs that reflect the culture and heritage of the area, serving as a unique shopping destination for visitors looking to take a piece of Bakersfield back home. This strategy will not only diversify MarketMosaic’s customer base but also contribute to the local economy by promoting regional artisans and producers.

Customer Needs

MarketMosaic aims to cater to the discerning customers in its area by providing high-quality retail items. These consumers expect nothing less than premium products that stand the test of time. By focusing on quality over quantity, MarketMosaic ensures that its customers have access to goods that reflect their desire for excellence and durability.

In addition to offering high-quality products, MarketMosaic understands the importance of a diverse product range. Customers can find a wide variety of items that not only meet their practical needs but also cater to their unique tastes and preferences. This diversity in product selection allows shoppers to enjoy a one-stop shopping experience that is both convenient and fulfilling.

Moreover, MarketMosaic places a strong emphasis on customer service. The staff is knowledgeable and ready to assist, ensuring that every customer’s shopping experience is seamless and enjoyable. This level of service, combined with the quality and variety of products offered, positions MarketMosaic as a retail destination that truly understands and fulfills the needs of its customers.

MarketMosaic’s competitors include the following companies:

Shop Spoiled Boutique offers a curated selection of women’s fashion, focusing on trendy and upscale clothing items. Their price points are moderately high, targeting consumers looking for unique and fashionable pieces that aren’t widely available. This boutique generates revenue primarily through its physical store in Bakersfield, CA, and an online platform that extends their reach to customers nationwide.

The customer segment for Shop Spoiled Boutique includes fashion-forward women, typically aged 18-35, who are seeking unique, stylish, and high-quality clothing. The key strength of Shop Spoiled Boutique lies in its unique selection of products and personalized customer service. However, its key weakness is the limited variety of sizes, which may not cater to all potential customers.

Macy’s , a nationwide department store chain, offers a wide range of products including clothing, accessories, home goods, and beauty products. Their price points vary widely to accommodate a broad spectrum of customers, from budget-friendly options to luxury brands. Macy’s generates substantial revenue from its extensive network of stores across the United States and a robust online sales platform.

Macy’s serves a diverse customer segment, from young adults to elderly customers, offering products for every age group and for both men and women. The key strengths of Macy’s include its wide variety of products, strong brand recognition, and nationwide presence. However, Macy’s faces weaknesses such as competition with online retailers and the challenge of maintaining a compelling in-store experience.

Action Sports specializes in sporting goods, athletic wear, and outdoor equipment, catering to sports enthusiasts and outdoor adventurers. Their products are priced to offer value for quality, appealing to those who prioritize durability and performance in their sporting and outdoor gear. Action Sports generates revenue through its brick-and-mortar location in Bakersfield, CA, and an online store that serves customers across the country.

The customer segment for Action Sports includes individuals leading an active lifestyle, ranging from amateur sports enthusiasts to professional athletes. The key strength of Action Sports is its focus on high-quality, durable products, and knowledgeable staff. However, its key weakness lies in its limited product range compared to larger, more diversified competitors.

Competitive Advantages

At MarketMosaic, we pride ourselves on offering a broader selection of retail items compared to our competitors, thereby catering to the diverse needs and preferences of our customers. By ensuring a wide variety of products, from the latest in tech gadgets to everyday household items, we make it our priority to be a one-stop-shop for our shoppers. This vast selection not only enhances customer convenience but also positions us as a market leader in providing a comprehensive shopping experience. Furthermore, our commitment to competitive pricing ensures that our customers receive the best value for their money. By leveraging efficient procurement and inventory management processes, we can offer high-quality products at prices that are hard to beat, thus providing a significant cost advantage to our customers.

In addition to our wide range and competitive pricing, another key competitive advantage lies in our customer-centric approach. We invest heavily in training our staff to provide exceptional customer service, ensuring that every customer leaves satisfied with their shopping experience. Our intuitive, user-friendly online platform complements our physical presence, enabling customers to shop with us from the comfort of their homes. This omnichannel approach not only expands our reach but also enhances accessibility for all our customers, making shopping convenient, efficient, and enjoyable. By integrating technology with personalized customer service, we set new standards in retail, distinguishing ourselves from the competition and cementing our position as a leader in the industry.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At MarketMosaic, customers can discover a wide range of products and services designed to cater to diverse needs and preferences. From stylish apparel to the latest in electronics, this retail destination is committed to providing quality items at competitive prices. The following is a detailed overview of the key products and services available at MarketMosaic, along with the average selling price for each category.

In the realm of Apparel and Fashion Accessories, MarketMosaic offers a variety of clothing items and accessories for men, women, and children. Shoppers can find everything from casual wear to more formal attire, ensuring a selection that suits any occasion. The average selling price for apparel items hovers around $35, while fashion accessories are typically priced at $20, making stylishness accessible without breaking the bank.

For those interested in Electronics and Technology, MarketMosaic is a treasure trove of the latest gadgets and devices. From smartphones and laptops to home entertainment systems, the store provides cutting-edge technology to enhance daily life and productivity. The average selling price in this category is approximately $250, offering customers high-quality electronics at reasonable prices.

When it comes to Home and Furniture, MarketMosaic presents an array of options to beautify living spaces. Whether customers are looking for contemporary furniture designs or cozy home decor items, the store caters to various tastes and budgets. On average, furniture items are priced at $150, while home accessories can be purchased for around $30, ensuring that every home can be a haven of style and comfort.

Beauty and Personal Care products at MarketMosaic cater to a wide range of grooming and wellness needs. From skincare and makeup to hair care products, the store offers an extensive selection for both men and women. Customers can expect to find their favorite beauty essentials at an average price of $15, making self-care both affordable and indulgent.

Lastly, the Groceries and Food Products section at MarketMosaic is stocked with a variety of food items, including fresh produce, packaged goods, and gourmet specialties. Whether planning a meal or looking for a quick snack, shoppers can find what they need at an average price of $5 per item, making mealtime both delicious and economical.

MarketMosaic is dedicated to providing a shopping experience that combines quality, variety, and affordability. With a wide range of products and services available, customers in Bakersfield, CA, can enjoy a one-stop shopping destination that meets all their needs.

Promotions Plan

MarketMosaic will utilize a comprehensive promotional strategy to attract and retain customers in the competitive retail landscape. At the core of these efforts is online marketing, a powerful tool that will enable MarketMosaic to reach a broad audience efficiently and effectively. Through the use of social media platforms, search engine optimization (SEO), and email marketing campaigns, MarketMosaic will engage with potential customers by showcasing their unique value proposition, special promotions, and the wide range of products available.

Beyond online marketing, MarketMosaic will also implement traditional advertising methods, including print media, billboards, and local radio spots. These tried-and-true approaches will complement the digital strategy by increasing brand visibility in the local community of Bakersfield, CA. Furthermore, MarketMosaic will leverage public relations activities, such as press releases and community events, to build a positive brand image and foster strong relationships with customers.

In-store promotions and loyalty programs will be another key component of MarketMosaic’s promotional efforts. Special discounts, loyalty points, and exclusive offers for returning customers will encourage repeat business and word-of-mouth referrals, which are invaluable in building a loyal customer base. Additionally, MarketMosaic will host in-store events and workshops to engage with the community and provide an interactive shopping experience.

Partnerships with local businesses and influencers will also play a significant role in MarketMosaic’s promotional strategy. By collaborating with complementary businesses and influential personalities in Bakersfield, MarketMosaic will tap into new customer segments and enhance its market presence through co-marketing efforts and cross-promotions.

To ensure the success of these promotional methods, MarketMosaic will consistently monitor and analyze the performance of each strategy, adjusting tactics as necessary to maximize return on investment. By implementing a dynamic and multi-faceted promotional approach, MarketMosaic expects to attract a wide range of customers and establish itself as a go-to retail destination in Bakersfield, CA.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of MarketMosaic, there are several key day-to-day operational processes that we will perform.

• Inventory Management: We will continuously monitor stock levels to ensure that popular items are always available, while also identifying slow-moving items for promotional sales or clearance.
• Supplier Relations: We will maintain strong relationships with suppliers to ensure timely delivery of goods, negotiate better prices, and stay informed about new or trending products.
• Customer Service: We will prioritize exceptional customer service by training staff to be knowledgeable about products, friendly, and helpful to create a positive shopping experience.
• Store Presentation: We will regularly update store layouts and displays to make shopping intuitive and engaging, and ensure the store is clean and well-maintained at all times.
• Marketing and Promotions: We will implement targeted marketing campaigns and in-store promotions to attract new customers and encourage repeat business.
• Sales Monitoring: We will use point-of-sale (POS) systems to track sales data, identify trends, and make informed decisions about inventory and marketing strategies.
• Staff Management: We will schedule staff efficiently to cover peak times while managing labor costs, and provide ongoing training to improve skills and knowledge.
• Financial Management: We will meticulously manage finances, including monitoring daily sales, expenses, and cash flow, to ensure profitability.
• Compliance: We will ensure all business operations comply with local, state, and federal regulations, including health and safety standards.
• Feedback and Improvement: We will actively seek feedback from customers and employees to identify areas for improvement and implement changes to enhance the shopping experience.

MarketMosaic expects to complete the following milestones in the coming months in order to ensure its success:

• Secure a Prime Location in Bakersfield, CA : Selecting and securing a lease for a storefront in a high-traffic area that aligns with MarketMosaic’s target demographic will be crucial for attracting initial customers and establishing brand presence.
• Obtain Necessary Permits and Licenses : Completing all legal requirements including business registration, sales tax permits, and any specific retail operation licenses ahead of the launch will ensure compliance and avoid any legal hurdles post-launch.
• Build Out and Design the Retail Space : Creating a welcoming and brand-aligned store environment that maximizes product visibility and enhances the shopping experience will be key to attracting and retaining customers.
• Develop Supply Chain and Inventory Management Systems : Establishing reliable relationships with suppliers and implementing inventory management systems will ensure that MarketMosaic can maintain stock levels efficiently, reducing the risk of stockouts or excess inventory.
• Hire and Train a High-Performing Team : Recruiting a capable team and providing them with the necessary training on customer service, product knowledge, and operational procedures will be essential for delivering a positive customer experience and driving sales.
• Launch Our Retail Business : Officially opening the doors to customers with a well-publicized grand opening event will mark the start of business operations, aiming to generate buzz and attract initial customer traffic.
• Implement Marketing and Customer Acquisition Strategies : Developing and executing a comprehensive marketing strategy that includes local advertising, social media engagement, and community events will help MarketMosaic build its brand and attract customers.
• Monitor and Adapt Product Offerings Based on Customer Feedback : Regularly collecting and analyzing customer feedback to adjust product offerings and store layout will help meet market demand and improve customer satisfaction.
• Reach $15,000/Month in Revenue : Achieving this financial milestone will indicate that MarketMosaic has successfully penetrated the market and is on a path toward sustainability and growth.
• Establish a Loyal Customer Base and Community Presence : Developing strong relationships with customers and becoming an active participant in the Bakersfield community will contribute to long-term success by building brand loyalty and encouraging word-of-mouth referrals.

MarketMosaic management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Aria Morales, President

Aria Morales brings a wealth of experience and a proven track record of success to her role as President of MarketMosaic. With a rich history in the retail industry, Morales has demonstrated her ability to not only run a business but to do so with notable success. Her hands-on experience in managing a retail business has endowed her with a deep understanding of the market dynamics, consumer behavior, and operational efficiency. These skills and insights are critical in steering MarketMosaic towards achieving its business objectives and ensuring its long-term success in a competitive landscape. Morales’s leadership is characterized by a strategic approach to business growth, innovation, and an unwavering commitment to excellence, making her an invaluable asset to the MarketMosaic team.

MarketMosaic requires significant funding to achieve our growth goals, including securing a prime retail location, building out and designing our store environment, developing our inventory and supply chain infrastructure, and implementing our marketing strategy. This investment will support our operations until we reach our initial revenue target of $15,000/month, setting the stage for long-term sustainability and expansion in the competitive retail market.

Financial Statements

Balance sheet.

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Income Statement

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Cash Flow Statement

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Retail Business Plan Example PDF

Download our Retail Business Plan PDF here. This is a free retail business plan example to help you get started on your own retail plan.  

How to Finish Your Retail Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Retail Bank Business Plan

• Description
• Executive Summary
• Products & Services
• Market Analysis

Marketing Plan

• Management Plan

Financial Plan

What you get in business plan package.

I.- Executive Summary

The traditional banking industry in the US has long been plagued by inefficiencies and outdated technologies, leading to a poor customer experience for many individuals. Customers, especially tech-savvy millennials and Generation Z, are looking for modern and innovative banking solutions that cater to their needs and preferences. There is a clear need in the market for a retail bank that provides high-quality financial products and services while leveraging cutting-edge technologies to enhance the customer experience. Pioneer Bank is solving this problem by offering modern and innovative banking solutions to its target audience and prioritizing social responsibility and sustainable growth in the process.

Pioneer Bank aims to provide a comprehensive range of financial products and services that are tailored to meet the needs of tech-savvy millennials and Generation Z customers while addressing challenges faced by traditional banking institutions. Our offerings include checking and savings accounts, credit cards, loans, mortgages, and wealth management services. These services are designed to provide modern and innovative banking solutions to our customers while prioritizing customer satisfaction and convenience.

To enhance the customer experience, Pioneer bank will leverage cutting-edge technologies such as AI-powered chatbots, mobile banking apps, and online banking platforms. These technologies will provide customers with 24/7 access to banking services and enable us to offer personalized and efficient services. Furthermore, Pioneer Bank will maintain a strong focus on social responsibility by engaging in sustainable and community-driven initiatives. At Pioneer Bank, we believe in creating impact by aligning our business objectives with social and environmental responsibility.

Target Market

Pioneer Bank will target tech-savvy millennials and Generation Z customers between the ages of 18 and 35 who are looking for modern and innovative banking solutions. These customers value convenience, personalized experiences, and digital banking services. They are early adopters of new technologies and prefer to interact with their bank through mobile apps and online platforms. This target market also values social responsibility and sustainability, making Pioneer Bank's commitment to community-driven initiatives a key selling point.

By catering to this specific customer base, Pioneer Bank will differentiate itself from traditional banks and attract a loyal following of young, tech-savvy customers. These customers have a long banking lifetime value potential and are likely to remain with the bank throughout their lifetime, providing a stable customer base for the business.

Competition

As with any industry, the retail banking sector has a number of established players that Pioneer Bank will be competing against. Some of the largest retail banks operating in the US currently include Wells Fargo, JPMorgan Chase, Bank of America, and Citigroup.

In addition to these traditional banks, there are also a growing number of online-only banks and fintech startups that are competing for customers in the retail banking market. Some of the most well-known of these include Chime, Ally Bank, and Varo Money.

While the competition in the retail banking sector is undoubtedly fierce, Pioneer Bank is confident that it can differentiate itself by offering superior customer experiences, cutting-edge technology, and a strong commitment to social responsibility and sustainable growth. By leveraging these key strengths, Pioneer Bank aims to capture a significant share of the millennial and Generation Z customer segment and become a leader in the retail banking industry.

Financial Summary

Key highlights of the financial plan for Pioneer Bank:

• Projected startup costs: $10 million
• Projected sales revenue for first year (2023): $20 million
• Projected annual growth rate: 15%
• Projected profitability in first year (2023): $3 million
• Projected return on investment (ROI) by year 5: 25%

The financial plan for Pioneer Bank is based on conservative estimates and assumes consistent growth over the next few years. The initial investment of $10 million will be used to fund startup costs, including technology infrastructure and marketing expenses. The projected sales revenue of $20 million in the first year is based on the assumption that Pioneer Bank will attract a significant number of customers from its target audience.

The projected annual growth rate of 15% is based on industry trends that indicate an increasing demand for digital banking solutions. By leveraging cutting-edge technologies such as AI-powered chatbots and mobile banking apps, Pioneer Bank is well-positioned to capture a significant market share.

With a projected profitability of $3 million in the first year, Pioneer Bank is expected to generate strong returns for its investors. The ROI is projected to reach 25% by year 5, making Pioneer Bank a highly attractive investment opportunity.

Funding Requirements

The following is a brief outline of the amount of money needed to start Pioneer Bank:

• $10 million in seed funding to cover initial costs such as hiring a team, acquiring technology, renting office space, and marketing campaigns.
• $50 million in series A funding to expand geographically and increase the bank's presence in key markets. This will cover costs such as building new branches, expanding the product and service offering, and hiring more staff.
• $100 million in series B funding to further accelerate growth and invest in cutting-edge technologies such as blockchain and big data analytics to continue improving customer experience and stay ahead of the competition.

We believe that the total funding requirements for Pioneer Bank will be approximately $160 million over the first three years of operation. We are actively seeking investors who share our vision and want to invest in a business that is set to revolutionize the banking industry in the US.

Milestones and Traction

At Pioneer Bank, we understand the importance of setting clear goals and objectives to achieve sustainable growth. Our roadmap table highlights the specific milestones we plan to hit from the time we launch in 2023 until 2025.

As we hit each milestone, we will continue to assess our progress and adjust our strategies to ensure we consistently exceed our customers' expectations while prioritizing social and environmental responsibility.

II.- Products & Services

Solution: products & services, validation of problem and solution, product overview.

The US retail banking industry is highly competitive, with several established players competing for market share. Some of the major players in this space include JPMorgan Chase, Bank of America, Wells Fargo, and Citibank, among others. These banks offer a wide range of financial products and services to their customers, including checking and savings accounts, credit cards, loans, mortgages, and investment management services.

However, Pioneer Bank aims to stand out from its competitors by offering a superior customer experience through the use of cutting-edge technologies such as AI-powered chatbots, mobile banking apps, and online banking platforms. Our focus on providing modern and innovative banking solutions will cater to the needs of tech-savvy millennials and Gen Z customers who are looking for seamless and convenient banking services.

In addition, Pioneer Bank will prioritize social responsibility and community-driven initiatives. We believe that by actively engaging in sustainable initiatives, we can build trust and long-lasting relationships with our customers and the wider community. This sets us apart from our competitors who may not prioritize social responsibility as much as we do.

Roadmap: Products & Services

To establish and grow Pioneer Bank, we have carefully planned out a roadmap that focuses on offering high-quality financial products and services to our customers.

Here is an outline of the steps we have taken so far and the steps we plan to take in the future:

With this roadmap, Pioneer Bank is poised to become a leading retail bank in the US, offering modern and innovative financial solutions while prioritizing social responsibility and sustainable growth.

III.- Market Analysis

Market segmentation.

As a startup retail bank, Pioneer Bank would need to carefully identify and segment its target audience based on specific customer characteristics in order to design effective marketing strategies and tailor its financial products and services to meet their needs. Potential groups of customers for Pioneer Bank could be segmented as follows:

By identifying the unique characteristics and preferences of these potential customer segments, Pioneer Bank would be able to design targeted marketing campaigns and create financial products and services that best align with their needs and values.

Target Market Segment Strategy

Our ideal customer is a young professional who is tech-savvy, values convenience, and is looking for a personalized banking experience. They may have recently graduated from college or are early in their career and may be considering purchasing a home or starting a family in the future. This target market segment is likely to benefit from our retail bank as we offer specialized products and services that meet their financial needs and goals. We plan to market our services through targeted digital campaigns and social media platforms to reach this customer base effectively.

Key Customers

Our ideal customer archetype is a middle-aged individual with a stable income, looking for a reliable and trustworthy banking partner. This customer values convenience and appreciates personalized services that cater to their specific needs. They are likely to refer their friends and family to our bank and become our main advocate.

Future Markets

Based on the market analysis conducted in the previous sections, our retail bank has identified significant opportunities for growth and expansion in both the local and national markets. Our customer-centric approach, coupled with our commitment to innovation, has positioned us as a leading contender in the industry.

With our focus on offering personalized financial solutions and fostering long-term relationships with customers, we anticipate a steady increase in market share over the coming years. Moreover, our strategic partnerships and collaborations with other industry players will enable us to tap into new markets and broaden our customer base.

Overall, we believe that our business strategy aligns perfectly with the evolving needs and preferences of the modern banking customer, paving the way for a bright and prosperous future for our retail bank.

Competition:

As with any new business venture, Pioneer Bank will face competition in the retail banking market. To stay competitive, the company must keep a close eye on industry trends, changing consumer habits, and emerging technologies. The following table outlines potential competitors in the US retail banking market:

While these competitors have a significant presence in the retail banking market, Pioneer Bank can differentiate itself by offering cutting-edge technologies and a superior customer experience to its target audience of tech-savvy millennials and Generation Z customers. By prioritizing social responsibility and community-driven initiatives, Pioneer Bank can also stand out in a crowded market and attract customers who value sustainable growth and ethical business practices.

IV.- Marketing and Sales Plan

Advertising channels.

• Social Media Advertising: We will advertise on social media platforms such as Facebook, Instagram, Twitter, and LinkedIn to target our younger audience. Estimated cost: $10,000 per month.
• Google Ads: We will leverage Google Ads to reach potential customers who are searching for banking solutions online. Estimated cost: $5,000 per month.
• Print Ads: We will advertise in local newspapers and magazines to reach a wider audience. Estimated cost: $7,500 per month.
• Increase brand awareness by 30% in the first six months of operation.
• Acquire 2,000 new customers in the first year of operation.
• Generate $10 million in deposits in the first year of operation.

Based on thorough market analysis, our sales plan estimates a consistent increase in sales volume over the next three years. Our pricing strategy aims to remain competitive while accounting for factors such as operational costs and product demand. Our well-trained and supportive staff will contribute to maintaining and growing our customer base through excellent service and product offerings. Additionally, we plan on utilizing targeted marketing campaigns and referral programs to further boost sales. Integration of technology to enhance service delivery will also have a positive impact on sales volume.

Location and Facilities

Our retail bank business plan is heavily focused on utilizing the latest technology to streamline operations and improve customer experience. One of the defining technologies we employ is our AI-powered chatbot, which provides customers with quick and accurate responses to their queries, 24/7. The chatbot can assist with anything from basic account information to complex financial advice, and it allows our team to focus on more complex tasks.

In addition, we use advanced analytics and big data to gain insights into our customers' behavior and preferences. This allows us to offer personalized recommendations and promotions, which enhances customer engagement and loyalty. With our cutting-edge technology, we are confident in our ability to offer a superior banking experience to our customers.

Equipment and Tools

In order to run a successful retail bank, the following equipment and tools are necessary:

The total cost for purchasing or renting these items is $250,000. It is important to invest in high-quality equipment and tools to ensure efficient and effective operations.

V.- Management and Organization

Organizational structure.

The retail bank will have a hierarchical organizational structure consisting of four levels: executive leadership, senior management, mid-level management, and front-line employees. The following table provides an overview of the structure and roles and responsibilities of each level:

Management Team

Building a strong management team is crucial for the success of our retail bank. We anticipate taking on the following high-level management roles within our company:

Our management team will bring a wealth of knowledge and experience to the table, and we are confident in their ability to lead our company to success.

Management team gaps

Although we have a strong management team in place, there are certain positions or areas of expertise that we do not currently have candidates ready to fill. One such position is a Chief Technology Officer who can oversee the development and implementation of a robust digital banking platform. Additionally, we are looking to hire a marketing expert who can help us design and execute effective customer acquisition and retention strategies.

Personnel Plan

In order to effectively operate the retail bank, the following positions will need to be filled:

We plan to hire experienced professionals for all positions and provide ample training to ensure the success of our business.

Company History and Ownership

As part of our management and organization plan, we have created a detailed roadmap in a table format that lists specific goals and objectives we plan to achieve. This will help us manage and steer our retail bank business effectively. Our milestones include:

• Opening 5 physical branches in key locations within the first year
• Launching a user-friendly online banking platform within the first 6 months
• Securing partnerships with at least 3 major corporations for employee payroll and benefit services within the first year
• Increasing our customer base by 20% within the first 2 years
• Introducing mobile banking services within the first year
• Expanding into at least 2 new markets within the first 3 years

Reaching these milestones will ensure that we establish a strong presence in the retail banking market and continue to grow and thrive over the coming years.

Key metrics

As a retail bank, it is crucial to track key performance indicators (KPIs) that help you gauge the overall performance and health of your business. Some important KPIs include customer satisfaction ratings, loan delinquency rates, net interest margin, and cost-to-income ratio. Monitoring these metrics regularly can help you identify potential issues and take necessary action to improve your business operations.

VI.- Financial Plan and Metrics

Sales forecast.

Projected sales for the next three years are as follows:

These projections were developed based on market research, historical trends, and the bank's planned marketing and advertising campaigns.

Retail Bank Financial Plan Key Inputs

The financial plan includes an estimation of the expected or incurred costs necessary to start and operate the retail bank business. A table for startup costs and one for operational expenses have been built to track the expenses efficiently.

The startup costs table includes the initial expenses such as rent, permits, legal fees, marketing expenses, equipment, furniture, and software costs. The operational expenses table includes the ongoing costs such as rent, salaries and wages, utilities, insurance, and maintenance expenses. The financial plan is revised annually to ensure that the expenses are accurately tracked and managed to optimize the profits.

The Financial Plan section of this retail bank business plan is where we present the three main financial documents of any startup: the income statement, the cash flow statement, and the balance sheet. These documents provide a clear picture of the bank's financial health, including revenue and expenses, cash flow projections, and assets and liabilities. Our Financial Plan also includes growth projections and a break-even analysis to gauge the bank's profitability and financial viability. We take a detailed approach in presenting the financial metrics, emphasizing our commitment to transparency and accountability.

Retail Bank Financial Plan Profit & Loss Statement

Retail Bank Financial Plan Cash Flow Statement

Retail Bank Financial Plan Balance Sheet Statement

Our retail bank business plan includes hiring a team of qualified and experienced employees who can provide excellent customer service and drive business growth. We intend to hire professionals in various departments including marketing, human resources, finance, and operations.

The compensation for the employees will be competitive with the market rate, and we will offer additional incentives and benefits to attract and retain top talent.

We will ensure that our employees fit into the business operations by providing necessary training and support. We believe that a well-trained and motivated team is essential for the success of our business.

Capital Requirements and Use of Funds

The capital requirements of the retail bank business plan should reflect the amount of money needed to raise and how investors' money is going to be used. This is an essential aspect that is typically shared with investors or lenders.

Exit strategy

As the retail bank grows and continues to establish itself as a prominent player in the industry, the eventual exit from the business becomes a pressing consideration. Our exit strategy will depend largely on the circumstances at the time, and will likely involve one of the following options:

• Acquisition by a larger financial institution seeking to expand its presence in our target market
• Selling to another party interested in taking over a successful retail bank
• Passing ownership to a family member or trusted employee who has expressed an interest in continuing the business

Regardless of the chosen option, the exit strategy will be carefully thought out and executed with the utmost consideration for our customers, employees, and stakeholders.

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How to Start a Retail Business: A Step-by-Step Guide

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If you’re thinking about starting a business in the retail industry, you’re in good company. Although local retailers don’t get the same level of attention as nationwide brands do, small retail businesses actually make up the vast majority of all U.S. retail businesses.

In fact, researchers found that small retailers (with 50 or fewer employees) made up 98.6% of all retail businesses in 2019. To break into this vibrant industry and open a store of your own, therefore, you first need to understand how to start a retail business.

To help you through the process, we’ll guide you through all the steps required to start a retail business, as well as offer additional resources to assist you on your startup journey.

How to start a retail business in 10 steps

These steps will have you running your retail business in no time. Let’s get started.

Step 1: Find your niche.

The first decision you'll need to make in order to learn how to start a retail business is figuring out your company's niche. You may already have an idea of the type of company you want to form, or you may still be grappling to figure out where to focus your retail company. To determine your niche market, we recommend:

Explore your interests and passions: Determine what you love doing or what you'll enjoy selling.

Brainstorm potential conflicts: No industry is perfect, but figuring out what obstacles or issues you could encounter in your niche will help you plan ahead and determine if an industry is a good fit for your business.

Consider profitability: At the end of the day, you want to make money from your retail business, so you'll need to find a niche that has the potential for profitability. Generally, if your niche has absolutely no competitors, it's usually a sign there's no demand, and therefore, your focus will not be profitable. Use our guide to learn more about the most profitable business ideas.

Research competitors: Once you've found a niche market using the above three steps, it's time to research your competition. Figure out how they're marketing and selling and determine what you can learn from them and how you can improve upon what they have to offer.

Retail business examples

Deciding on your niche can take a long time. It requires significant research and the passion to work within a particular market. To help you get started in identifying your niche market, here are a few retail business examples worth exploring:

Coffee shops

Apparel shops (eyewear, sports apparel, undergarments, outerwear)

Restaurants and bars (determine a theme, whether that's the cuisine, small plates, a canteen, etc.)

Game centers (board games, video games, etc.)

Monthly box subscriptions

Pet supply shop

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Write a business plan.

We don’t doubt that you have an amazing idea for a retail store, but an idea alone isn’t enough to turn a dream into a reality. By writing a business plan, you’re providing yourself (and, potentially, future lenders and other stakeholders) a physical roadmap detailing every step you’ll take to open and run your retail business.

Therefore, when you're crafting your business plan for opening a retail store, you can start by answering essential questions about your business model:

What kinds of products are you selling?

Will you open a brick-and-mortar location, an e-commerce website , or will you take an omnichannel selling approach?

Who is your target market, and how will you market to them?

How will you set your store apart from your competition?

You’ll also need to dig into details related to your processes, answering questions such as:

Who are your vendors? How will you store your inventory?

How much staff will you need?

What will your hiring process look like?

What will your startup costs be?

How much money will you need to launch?

How long will it take for you to break even?

How long will it take for you to make a profit?

Keep in mind, however, that your preliminary business plan is exactly that—preliminary. You can always return to your retail store business plan to make changes, updates, and additions as you gain experience with starting and running your business.

Create a business budget

Along the same lines, you should also create a business budget, to the best of your ability, well before you’ve opened your doors. At this stage, you should be paying especially close attention to your startup costs.

Unfortunately, if you're wondering how to start a retail business with no money, you're going to find it's extremely difficult. Although there a variety of ways to cut costs—selling online instead of opting for a physical location, for example—there will always be a handful of costs associated with starting and launching your retail store.

This being said, in addition to standard startup costs like equipment, business insurance, and payroll, if you’re opening a brick-and-mortar retail store, you’ll have to cover some specific costs, like a down payment, potential renovations, and monthly rent and utilities for your store. You’ll also be responsible for purchasing your merchandise, shipping and delivery costs, and storing excess inventory.

And don’t forget about the other tools and software you’ll need to run your business, including a POS system, retail accounting software , and a security system to monitor shoplifting and theft.

Step 3: Register your business.

With your business plan and budget in hand, you can now move onto the next step involved in learning how to start a retail business—making it official.

Come up with a business name

If you haven’t already, you’ll first need to come up with a business name. Choose a name that reflects your business’s purpose and brand identity, allows you room to grow, and, perhaps most importantly, is actually available for use.

Once you’ve landed on your dream business name, run your moniker through a Google search to make sure another entrepreneur isn’t already doing business under that name. Then, check for trademark filings in the U.S. Patent and Trademark Office, and conduct a Secretary of State business search to make sure there isn’t another business in your area with your potential name.

Once you’ve established that your name is free and clear, you'll want to buy your domain name and create social media accounts with your name. That way, you can build a business website and launch your marketing strategy ASAP.

Determine your legal structure and register your business

Next, in order to register your business, you’ll first need to decide on your business’s legal structure. Your business structure determines how you’re taxed, the degree of legal protection you’re afforded, your business’s ownership structure, and your ability to receive business funding (in addition to allowing you to register your business in the first place).

There are lots of business entities to choose from—all of which we overview in detail in our guide to types of business entities. Additionally, we’d highly recommend consulting a business attorney or accountant to guide you through this crucial step.

Once you’ve landed on a business entity type, you can go ahead and register your business through your state’s Secretary of State website. After that, head over to the IRS' website to apply for an EIN (employer identification number) online. Your EIN is a bit like your business’s social security number, and it’ll help the government identify you for tax purposes. You might also need an EIN to apply for a business loan down the line.

Step 4: Obtain licenses, permits, and business insurance.

Some states require a general business license, while others require licenses and permits at an industry level. You may also need to acquire local permits and licenses, so consult your county or city clerk’s website for their particular requirements, too. The SBA is an excellent resource for licensing and permitting information at both the federal and local levels.

For those learning how to start a retail business, you’ll likely need to obtain multiple retail licenses related to your field, including a resale certificate, seller’s permit, and a certificate of occupancy. We also recommend partnering with a trusted business attorney during this step.

Additionally, you won't want to forget about business insurance. As a retailer, you should consider general liability insurance, a business owner’s policy, and business crime insurance; and as an employer, you’re likely required by law to carry workers comp insurance, health insurance, and unemployment insurance for your staff.

Take a look at our guide to small business insurance for more information on the types of coverage you need.

Step 5: Find a physical location and build an online store.

If your retail business will include a physical store, finding the right location is arguably the most important aspect of this process. Your location can make or break the success of your business: If you’re located in a heavily trafficked area, then your marketing efforts are practically built-in. If it’s in a tough-to-find location, or if parking is limited, then your bottom line might suffer.

The right location for your business depends largely upon who your target market is and where they hang out. If you’re opening an upscale boutique, for example, you probably want to choose a neighborhood that skews less toward students and cash-strapped millennials, and more toward people with some discretionary income to burn.

Of course, you’ll also have to keep in mind how much space you need for display areas, a back-office and break room for your staff, dressing rooms, and an inventory storage area. Your location will also depend largely upon how much room you have in your budget for renovations, store design, remodels, updates, a down payment, and your monthly rent and utility bills. That may mean opting for your second or third choice location to protect your budget.

Build an e-commerce store

Even if you always dreamed of a brick-and-mortar store with in-person transactions, we also recommend opening an online store to give your retail business as much exposure as possible.

Luckily, building and managing an online store is incredibly easy with an e-commerce platform. Here are a few recommendations to get you started:

Shopify: This platform provides an infinitely customizable, standalone store that you build and manage entirely on your own.

Squarespace or Wix: These business website platforms are simple to use and offer e-commerce functionalities.

Etsy, Amazon, or eBay: These popular marketplaces will provide you with plenty of built-in traffic and handy seller tools. On the downside, you won’t have as much control over your branding, customer relationships, or fulfillment process as you would with your own e-commerce store.

The combination of e-commerce and in-person retail is sometimes referred to as "bricks and clicks." You can use our guide to learn more about the bricks and clicks business model.

» MORE: How to start an online boutique

Step 6: Establish relationships with vendors and suppliers.

This is the next step to learning how to start a retail business—and beyond your store’s location, arguably one of the most crucial aspects of your potential success—is finding trustworthy vendors and suppliers. Your vendors might become your most valuable partners and a great vendor can present you with new merchandise, determine which products will sell best, and cut costs for you.

There are a few considerations to keep in mind as you’re searching for vendors.

Budget: Your vendors need to work within the supplier budget you’ve established.

Quality: The quality of their merchandise is crucial.

Reputation: You want to work with a supplier who is guaranteed to deliver your agreed-upon items on time and in good condition—every time you place an order.

Customer service: Remember that you’ll be working closely with your vendors, so their service team must be reliable, personable, and easy to contact in case you run into any issues.

We recommend establishing relationships with several vendors. Even if your vendor of choice is stable, reliable, and cost-efficient, you need to have a contingency plan in place—without merchandise to sell, you won’t have a business to run.

Step 7: Hire staff.

If you’ve never hired an employee before, take a look at our guide on how to hire great employees who’ll stick with you for the long run. When hiring for a retail position, make sure to interview as much for their attitude as you are for their experience. While you can train your employees to use your POS system and manage your inventory, you can’t teach them to be kinder, friendlier, or more trustworthy than they innately are.

In advance of hiring your first team member, make sure you understand your state-regulated employer requirements. Your state might require that you buy certain types of insurance for your staff. Additionally, you’ll probably need to complete some other steps, like creating a state withholding account for payroll, reporting new hires, and verifying your potential new hire’s employment eligibility as well.

Step 8: Find the right POS system.

Your POS system just might become your retail business’s best friend. It’ll certainly become your employees’ best friend—assuming you choose an intuitive, easy-to-use model, of which there are tons on the market right now.

A point of sale system combines hardware and software that enables your business to accept and process all kinds of payments. Most POS software is loaded with valuable back-end capabilities, like inventory management, employee management, CRM tools, sales reports, and vendor tracking.

If you’re opening a brick-and-mortar location, you’ll need a POS system that can accept cash, checks, contactless payments, and both chip and swipe cards. In addition, you’ll need a barcode scanner, receipt printer, and cash drawer.

For more flexibility, you might want to look into a POS system that allows on-the-go payments, too. For example, Square (and most other POS systems) has mobile card readers that plug into your phone or tablet so you can accept payments from virtually anywhere, whether that’s at a pop-up shop, craft fair, or trunk show.

Similarly, Clover also has a fully equipped, handheld POS device so you or your staff can ring up your customers from anywhere in your store.

Ultimately, you have options—a lot of them. To help you navigate the selection process, consult our guide on the best retail POS systems.

Step 9: Organize your finances.

As we mentioned earlier, it's nearly impossible to figure out how to start a retail business with no money—so, whether you have a large amount of startup capital or are operating on a tight budget, it's extremely important to organize your finances.

First, you'll want to open a business checking account . If you’re happy with your current bank, you may want to open a business bank account there. It’s logistically easier for you to maintain all your finances with the same institution. In addition, many banks offer discounts and other incentives when consumer clients open business accounts. If you want to compare your options, we recommend looking into our best business bank accounts guide.

Next, you'll want to get a business credit card . Most credit card companies allow business customers to apply for a business credit card online—which makes this step even easier than opening a business bank account.

If your business is too new to have any financial data, you can provide your personal financial information on your application. If you’re approved, you’ll receive your card in the mail in about a week or two. Use it for your business’s smaller, daily expenses, and be mindful of only using it for business-related purchases to maintain personal and business financial separation.

Get funding

Most entrepreneurs need a little (or a lot of) financial help to get their businesses off the ground. That may be especially true of retailers and brick-and-mortar business owners, who have a few extra startup costs to contend with.

Although it can be difficult to get a business loan as a startup, there are a variety of alternative options you can consider, especially as you start to run your retail store and become more established.

Finally, don’t forget to sign up for a good business accounting software solution, which will streamline, automate, and organize your business’s finances.

Step 10: Market your retail business.

At this point, you've learned the most important pieces of how to start a retail business, and now, you're ready to open your doors and get to work.

Of course, to get the word out about your business, you need to develop a small business marketing strategy, which provides you with an opportunity to get a little creative. The best marketing strategies, especially for brick-and-mortar stores, use a combination of SEO, social media, email marketing, paid online marketing strategies (if their budget allows for it), and analog marketing efforts.

At the very start of your venture, your time is best spent building a business website and creating social media accounts. Squarespace and Wix provide users with tons of customizable, professionally designed templates and built-in SEO tools. For social media, focus on creating diverse, high-quality content, posting regularly, and responding promptly to your followers’ comments and DMs—both the positive and the negative.

As a brick-and-mortar store owner, in-person marketing tactics are also important. We recommend:

Getting active in your local retailer community, networking with your fellow business owners, and participating in craft fairs and other events showcasing local businesses.

Partnering up with a local business whose target market is similar to yours and putting on an event together, or hosting pop-up shops or trunk shows in each other’s locations.

Using good sales incentives—like BOGO deals, giveaways, and free trial periods—to draw even more customers into your store.

To boost your marketing strategy, it's important to take some time to develop your brand identity. Establish your messaging, market positioning, and how your unique business can provide your customers with what they’re looking for—then create the materials to reflect those core values.

LLC Formation

The bottom line

As you navigate the business formation steps, be careful not to lose sight of why you’re opening your retail business in the first place. If you remember the passion that inspired you to launch your business, you might even enjoy the finer points involved in the process—who knew finding a POS system could be so fun?

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Seamlessly manage your finances with innovative tools and learn about resources dedicated to retail businesses like yours.

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Our comprehensive digital and full-service retail banking solutions will help simplify managing your finances and operations, so you can focus on delivering for your customers, wherever you reach them.

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• Accept credit and debit card payments online, instore, or on the go.
• Streamline your business with built-in tools for inventory management, sales and staffing.
• Access funds within hours with Everyday Funding. 1
• Easily create invoices and manage your finances in one place.

Manage your business’s cash flow.

• Monitor your finances using our cash flow forecast tool , free in the online business banking dashboard or on the mobile app.
• Fund your business with a business loan or line of credit.
• Use our reporting and analysis tools to ensure you have the funds to keep your business running smoothly.

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• Give your business the flexibility and control to make payments with a U.S. Bank business checking account.
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• Access all your U.S. Bank cash management services in one secure place with SinglePoint Essentials.

Explore resources for managing your retail business.

Learn financial tips and hear stories from other small business owners.

What type of loan is right for your business?

Borrowing money is a big step for business owners. Evaluating your goals and specific needs can help you decide if a loan or line of credit is right for your business.

Omnichannel retail: 4 best practices for navigating the new normal

By enhancing and blending digital and physical shopping experiences, your business will be prepared for whatever comes next.

Opening a second location? Cloud-based POS is key to a smooth unveiling

Expanding is exciting but it can come with some pain points. Learn how cloud-based POS data and software can help smooth the transitioning experience for you, your staff and your customers.

How to choose a point-of-sale for your business

Before investing in a new point-of-sale (POS) payment solution for your business, it is important to understand what you need to best meet your business needs.

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Manage cash flow swings and peak seasons with a clear view of your finances in one place.

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Take your retail business to the next level with expert advice, lending solutions and staff management tools designed for growth.

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Customers expect the ability to pay in any environment - online, in-person, by phone, in-app or by mobile wallet. U.S. Bank Payment Solutions and talech allow your business to accept payments from anywhere – a store front, online, over the phone from home, on location or wherever your customers are. In addition, talech provides a contactless shopping experience. 

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated July 29, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan

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Startup Retail Business Plan Template

Whether you want to start your own retail business or expand an existing one, you need a business plan. the following startup retail business plan template lets you know what elements you need to include in a successful retail business plan., fill the form to download business plan templates.

To ensure your coffee shop business success in this highly competitive market, you need a properly structured business plan for your coffee shop. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their coffee shop businesses.If this is your first time writing a business plan , we’ll walk you through these sections and give you some key things to consider.

Things to Know Before Writing a Retail Business

Retail trade is the final step in the distribution of products, including brick-and-mortar stores and non-retailers operating through mail-order, door-to-door, kiosks, and the internet.

There are 12 subsectors within the US Retail Trade sector, from food and beverage stores to motor vehicles and parts dealers.

This industry’s main products and services are

• Automobile and auto parts dealers
• General merchandise stores
• Online retailers
• Building material and garden equipment and supplies dealers
• Retailers of food and beverages
• Retailers of health and personal caree
• Gas stations
• Retailers of other products

While some products sold by retailers are staples, others are more discretionary in nature. In the coming years, disposable income per capita is expected to increase, making it possible for consumers to spend more.

As stores reopen and consumers feel more comfortable, the Consumer Confidence Index is forecast to rise during the period, along with a decrease in the national unemployment rate.

Due to this, retail trade is expected to grow at an annualized rate of 3.2% over the 3 years to 2024, reaching $5.9 trillion. Additionally, profit is expected to increase a little during this period.

Key Success Factors for Retail Businesses

There are 6 factors that can help you boost profitability, efficiency, and ultimately success in the retail industry despite the challenges.

• Having a skilled workforce: Experienced employees can provide a pleasant experience for customers by providing excellent customer service and clear knowledge of products sold, either in-store or online.
• Establishing a clear market position: Having clear branding and marketing helps consumers identify stores carrying particular goods and brands.
• A loyal customer base: Building strong relationships with consumers can encourage repeat business.
• Keeping an eye on competitors: By monitoring the competition, operators can offer competitive prices as well as products that match the quality and range of those offered by their competitors.
• Inventory control: In order to prevent the build-up of excess stock, operators must ensure popular items are reordered.
• Scale economies: Being part of a chain, franchise, or co-op allows players to obtain buying and marketing power.

What is a Startup Retail Business Plan?

A startup retail business plan is a roadmap for starting and growing your retail business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.

Any bank or investor you approach will require a startup retail business plan, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a retail business or pitching to investors or venture capitalists.

Free: Business Plan Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

Why You Need a Startup Retail Business Plan

Retail business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A start business plan allows you to thoroughly analyze every aspect of your potential business.

A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a retail business idea, and may help you better understand your company’s finances and competition.

Retail business owners who have a business plan grow 32% faster than those who don’t, and 77% of fast-growing businesses have one.

A retail business plan is a living document that should be updated annually as your company grows and changes.

Funding Sources for Retail Business

No matter how large or how small your retail business is, you should think about your financing options. Below are four types of funding you should investigate:

Inventory loan

This is a traditional term loan in which you receive a lump sum and repay it over time with interest. This loan is best suited for a large purchase made once a year or every few years.

Government Incentives

When choosing a business location , you can consider different community incentives before making your final choice. Government incentives can help reduce operating costs and long-term overhead.

You can begin your business with the help of the U.S. Small Business Administration (SBA). You can find government resources about financing your business by using the website’s Loans and Grants Search Tool.

Many banks offer small business loans. See if a business loan is right for you by contacting your bank. Banks also offer business lines of credit and other resources to help you find the right option.

Consider finding an investor or group of investors to finance your company. Be sure to do your research and have the numbers and information to back up your business before you contact an investor. You will need to show progress to investors, and they will do research and investigation concerning your retail business plan. In return, investors often desire ownership of a part of your company.

Looking to Build Credit for Your Retail Business?

Build your business credit quickly with an easy approval net 30 account from Wise Business Plans. Or check out the top 10 net 30 vendors to find the best one for you to help build your business credit .

How to Write a Retail Business Plan

To write a retail business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a retail business plan, or you can just download our proven  sample business plans  to get a better idea.

Startup Retail Business Plan PDF and Word

Download our startup retail business plan template in PDF and Word here.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of retail business you have and what stage you’re in; for example, are you a startup, do you have a retail shop that you want to expand, or do you have a lot of retail businesses?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

• Provide a high-level overview of the retail industry
• The name, location, and mission of your retail company
• A description of your retail business, including management, advisors, and a brief history
• Discuss the type of retail business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
• Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
• And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your retail business plan.

Free: Executive Summary Examples

An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.

Company Analysis

The company analysis follows the executive summary as the second section of a retail business plan. Your company overview will be short and clear, similar to the executive summary.

Even if they just have a few minutes, your reader has to understand what your company does and who your customers are.

The following sections will be included in your business plan’s Company Analysis:

• Company summary: Your company analysis will describe the type of retail shop you are running and its future goals. The type of retail business you might be focused on (Department Stores, Supermarkets, Specialty Retailers, Convenience Stores, Supermarkets/hypermarkets, Discount Stores, E-Commerce Stores, Warehouse Stores, etc)
• Company history: When and why did you start your retail shop business?
• What milestones have you achieved so far? Your milestones could include served 100th customer, new fleet purchase, etc.
• Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
• Mission statement: An overview of your retail company’s guiding principles. Learn how to write a perfect mission statement .

Industry Analysis

The retail business plan’s research section will most likely be the most time-consuming. Here, you will elaborate on how you will fit into the existing retail market. Since your research findings should serve as a sound confirmation of the conclusions you have outlined thus far, they will demonstrate your understanding of the industry and market.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

• Give a quick overview of the retail industry. Define the retail business in terms of size (in dollars), historical background, service region, and products.
• Examine previous trends and growth patterns in the retail industry.
• Identify the market’s major competitors.
• Age, gender, and general lifestyle of the targeted market
• Determine the factors that have an impact on the retail industry. These might include government regulatory rules and other businesses’ competitive activities.
• Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
• Describe how your retail business intends to position itself in the industry. Concentrate on how your retail business can benefit from opportunities highlighted in the industry.

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Customer Analysis

The first condition for a retail business is to identify its target customers clearly. Customers can be categorized into the following segments: Teenagers, College students, Sports enthusiasts, Techies, Baby boomers, Couples, etc.

The customer analysis section is an important part of any retail business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the your retail items will meet those requirements.

Customer analysis may be divided into two parts: Psycho-social profiles (why your retail items suits a customer’s lifestyle) and Demographic profiles (descriptions of a customer’s demographic qualities).

With regards to demographics, include information about: When moving residential, the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.

Competitor Analysis

It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:

• Identify the strength and weakness of your retail business competitors.
• Search for opportunities to distinguish your retail business from competitors.

The first step is to determine who your direct and indirect competitors are.

The direct competitors consists of other retail businesses that offer essentially the same retail items to the same people as you do.

Your indirect competitors are other options that customers have to purchase from that aren’t direct competitors.

Businesses that sell the same or similar items as you but operate online.

Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your retail business— but keep an eye on the indirect competition as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

• Prices – Are they offer cheaper retail items or more costly than you and other competitors, what value do buyers get for that price?
• Quality – Are they offer premium retail items, the perceived worth in the eyes of the customers
• Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
• Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium retail items? Will you have specialty products? Will you offer better pricing or will you offer greater customer support?

Consider how you will outperform your competitors and include them in this portion of your retail business plan.

Free: SWOT Analysis Examples

Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.

Marketing Plan

Creating a marketing plan for a retail business involves identifying the target demographic and finding retail items that suit their preferences.

As part of your marketing plan for a retail business, you should include:

Pricing and Product Strategy

Your retail business must offer retail items that are different from those of your competitors. Research what your competitors offer and how they price their retail items. Unique retail items identifies your retail business as the place to go for unique retail store and differentiates it from others.

Placing and Promotions

The location of your retail business is referred to as place. Document your location and explain how it will affect your success. Is your retail establishment, for example, next to a densely populated society or in the mall? Discuss how your location could provide a consistent flow of customers.

Promoting your retail business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your retail items. A few marketing methods you could consider are:

• Pre-Opening Events
• Strategies for Online Retail Marketing
• Email marketing 
• Marketing through influencers
• Merchandising in-store
• Curbside displays
• Collaborations and partnerships
• Referral programs

You should also think about your retail company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other retail businesses. Ensure that your USP is reflected in your marketing.

Operations Plan

While the previous sections of your retail business plan described your goals, your operations plan discusses how you will achieve them.

An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operational plan should be able to answer the following questions:

• Who – Personnel in charge of completing specific tasks.
• What – A breakdown of the responsibilities of each personnel.
• Where – The location of everyday operations.
• When –The deadlines for completing tasks and goals.
• How much – The amount of money required for each department to perform their job.

Your operations plan should be divided into two individual parts, as seen below.

Your daily short-term processes include all the tasks involved in your retail store, maintaining your shop space, packing your retail items, completing sales transactions, choosing and dealing with vendors, and delivering the final products to your clients. etc.

Long-term goals are milestones you hope to reach. they might be growing your business, such as introducing new items or retail outlets, meeting particular sales milestones, and meeting other essential business-oriented goals like recruiting more staff, opening additional locations, and so on.

Management Team

When writing a startup retail business plan, the management section’ outlines your management team, staff, resources, and how your business ownership is structured.

This part may be easily organized by dividing it into the following points:

Ownership Structure

Internal Management Team

External Management Resources

Human Resources

This section outlines your retail business’s legal structure. If your company is a sole proprietorship , it may simply be one phrase. It might be longer if your company is a partnership or a corporation . You should make it a point to clarify who owns what part of the business.

This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your retail business. Ideally, you and/or your team members have direct expertise in the retail business. If this is the case, highlight your experience and skills.

Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with retail business.

An advisory board would consist of 3 to 7 people who would serve as mentors to your retail company. They would assist in answering queries and providing strategic direction.

If necessary, search for advisory board members with expertise running retail business.

Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches. 

The final topic to consider in the management area of your retail business plan is your human resource needs.

Financial Plan

As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.

Income Statement

A profit and loss statement is more commonly called an income statement . It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. Will you serve 50 customers per day or 200? Will sales grow by 2% or 8% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.

Free: Income Statement Template

Create a financial statement for your business by downloading our free income statement templates.

Balance Sheet

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

The balance sheet shows your retail business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

• Assets: Tangible goods with the monetary worth that the company owns.
• Liabilities: Debt owing to a company’s creditor.
• Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your retail business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $500,000 to build out your retail shop will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your retail business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a retail business:

• Fees for registering a retail business
• Taxes and licenses costs
• Business insurance
• Payroll or salaries paid to staff
• Facility rent and security deposits
• Construction / remodeling
• Start-up Inventory

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Bonus Tip: Find out what to include in a business plan appendix when writing a retail business plan.  

Summary of the Retail Business Plan

A retail business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the retail business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your retail business.

Do you want to Finish Your Retail Business Plan in less the one day?

Wouldn’t it be nice if your business plan could be completed faster and easier?

With wise business plans Business Plan Template , you can finish your retail business plan in just 6 hours or less with a 30-Day Money-Back Guarantee!

OR, we can create your retail business plan for you

Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

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How to Open a Business Bank Account in 2024

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Opening a business bank account will help your business keep its finances organized, while also adding a professional touch to your business operations. While it may seem like a daunting task, it’s really as easy as gathering the necessary documents, identifying the features you need, selecting a provider, reviewing the costs and opening the account. Follow our detailed guide below so you know what steps it takes to properly open a new business bank account.

If you are looking for a business checking account that can earn you interest, Bluevine is an excellent choice. You can earn 2.0% Annual Percentage Yield on qualifying balances of $250,000 or less with its basic account. If you upgrade to Bluevine Premier — for a waivable monthly fee of $95 — you can get an APY of 4.25% on balances up to $3 million. Check out the provider for more information or to open an account.

What do I need to open a business bank account?

First things first, you’ll need to make sure that you have all the documents actually required to open a business bank account. Documents needed at account opening include:

• A proof of identity (e.g., passport, driver’s license).
• An Employer Identification Number or Social Security Number if you’re a sole proprietor.
• A business license and/or business registration.
• Any partnership agreements, if applicable.
• Any organization documents, such as your articles of incorporation or articles of organization.
• An operating agreement, if applicable.

Let’s break down the above requirements in a little more detail for Step 1.

Step 1: Gather the necessary documents

You should be prepared to provide proof of identity and business legitimacy at account opening. This includes having your personal identification, EIN or SSN, and any business-related licenses and agreements on hand.

• Proof of identity: Be prepared to show either your passport, government ID or driver’s license for all signers on the account.
• Employer Identification Number or Social Security Number: An EIN helps identify your business for tax reasons. Sole proprietors and single-member LLCs can use their SSN if they don’t have an EIN. If you’re unsure whether your business needs an EIN, check out this checklist from IRS.gov and seek out additional guidance from a licensed tax professional. Note: You will also have to provide the SSN for each beneficial owner of the business.
• Business license and/or business registration: This helps prove that your business has the legal authorization needed to operate and actually do business.
• Partnership agreement: For business partnerships, a partnership agreement helps outline the current structure and terms of your business.
• Organization documents: For corporations and LLCs, be ready to provide the articles of incorporation or articles of organization to prove that your business is legally formed.
• Operating agreement: If your business is an LLC, an operating agreement helps map out the current management structure and operational guidelines of your business.

Step 2: Identify the features and terms you need

Sit down and write out a list of all the key features and terms that would best serve your banking needs. Writing down a list of important features and terms will help you narrow down which banking provider will be best for your startup. Features and terms to be mindful of include:

• Online banking capabilities: Online banking allows for more ease of access. With online banking services, you can view your account balance, transfer funds and pay bills online or from your phone.
• Mobile check deposit: Mobile deposit lets you deposit checks using the phone in your pocket. This saves time and limits in-person trips to the bank.
• Fee structures: Potential add-on costs, such as monthly maintenance fees, transaction fees and ATM fees, can catch you off guard. You should double-check an account’s fee structure to better understand the fees associated with your potential bank account.
• Account interest rates: If you usually keep a high account balance, look for bank accounts that offer competitive interest rates so you can maximize interest earnings.
• Transaction limits: Be mindful of excess transaction costs, especially if you expect your business to process a large number of regular transactions.
• Geographic availability: If you need to deposit cash frequently, choosing a traditional bank with a brick-and-mortar location close to your business is advised, because depositing cash to an online banking platform can be a more complicated process.
• Software integrations: Most bank providers offer built-in integrations with various external software. Finding a banking provider that integrates with other software you use for your business can save you time and help eliminate potential errors associated with creating duplicate entries.

For a deeper understanding of helpful banking terms that it’d be best practice to familiarize yourself with, check out our glossary of banking terms , which helps better explain the current technological ecosystem in banking.

Step 3: Select a banking provider

Different banking providers will often offer different terms and account features. Popular banking providers for startup businesses include Bluevine, Relay, Novo, Chase, US Bank and Bank of America.

Consider both traditional banks and online-only banks (or fintech platforms backed by banks) when it comes to making your final decision. Both options come with their own advantages and disadvantages.

• Traditional banks: Traditional banks usually offer a wide range of banking services. They also benefit from a wide network of branches and ATMs. However, traditional banks tend to have more stringent account fees and minimum balance requirements.
• Online-only banks: Online banks and fintech platforms offer higher interest rates and lower fees due to their reduced operational costs. However, online banks lack physical locations, which may be a drawback for a startup business that would best be served by in-person services.

*Chase, U.S. Bank, and Bank of America are all members of the Federal Deposit Insurance Corp (FDIC).

**Financial technology platforms mentioned above are backed by and FDIC-insured through supporting bank partnerships, Bluevine with Coastal Community Bank, Relay with Evolve Bank & Trust and Thread Bank, and Novo with Middlesex Federal Savings.

For a deeper dive into banking industry insights, visit the banking section on TechRepublic .

Step 4: Review the costs associated with your selected provider

Take some time to analyze the monthly costs associated with the banking provider you choose. Make sure these costs align with your startup’s financial plan. Typical provider costs to keep in mind include:

• Monthly maintenance fees: A fee that covers monthly account maintenance.
• Transaction fees: Add-on fees for deposits, withdrawals and transfers.
• Cash deposit fees: A fee associated with depositing cash into your account.
• ATM fees: Fees associated with ATM withdrawals.
• Other charges: Additional fees such as overdraft fees, wire transfer fees and extra fees for add-on services like money orders or cashier’s checks.

Step 5: Open your account

Once you have selected a banking provider and gathered the required documents from Step 1, it’s finally time to move forward with opening your business bank account. Depending on the banking provider you selected, this step will either be done online or in person at a branch.

Be prepared to provide all required documents and answer any supplemental questions the account representative might have for you. ​Also, make sure all key employees that you want to grant bank account access to are present at account opening. Those employees will need to bring their own proof of identity for the process.

Step 6: Deposit funds

Once the account is open, you’ll want to deposit funds into your new business bank account to properly activate it. You can deposit either cash, checks or an electronic funds transfer into the new bank account. A pro tip is to ensure you have enough funds deposited in your account at opening to cover any upcoming business expenses you’d be anticipating.

Advantages of having a business bank account

There are several key advantages that opening a business bank account will offer your startup:

• Your personal and business finances stay separate: A bank account for your business keeps your personal and business finances separate. This helps ensure clear financial records come tax season.
• You gain more business credibility: A business bank account adds extra credibility to your business. This makes dealing with potential clients, creditors and vendors easier.
• Tracking business expenses and income is easier: Having a dedicated business account simplifies your monthly expense and income tracking. This makes the financial management of your business a lot easier. Brush up on the ins and outs of bank reconciliation for a more in-depth understanding of proper business transaction tracking.
• You gain access to extra services and credit options: Business bank accounts also come with access to additional banking services such as business credit cards and lines of credit. You’ll even have access to merchant services.

Frequently asked questions (FAQs)

Does an llc need its own bank account.

Yes, an LLC should have its own bank account. Having a separate bank account helps keep your personal and business finances independent. This helps maintain a legal and financial distinction between you and the business.

What are the disadvantages of a business bank account?

Some disadvantages include potentially paying some monthly fees for account maintenance, having transaction limits and needing to maintain minimum balance requirements.

Can I open a business bank account with just an EIN?

Yes, you can open a business bank account with just an EIN, but you will still need the other documents mentioned above. The requirements for opening an account will still vary by bank, so it’s best to check with the specific provider you end up choosing for your business needs.

This article was reviewed by our banking expert Tricia Jones .

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Should you open a business bank account?

• Determining the right account

Choosing the right bank

Required documentation.

• Application process

Maintaining your account

Essential steps to opening a business bank account.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

• Business banking can be a great step if you want to separate your business and personal finances.
• You'll need a business license and business documentation to open a business bank account.
• You can use a Social Security Number as identification if you're a sole proprietor.

If you've started your own business, you may be ready to open a business bank account.

The U.S. Small Business Administration recommends opening a business bank account once you're ready to spend money or begin collecting income. Having a business bank account will give you the chance to manage your finances more professionally. 

Whether you're a freelancer, small business owner, or full-scale corporation executive, a business bank account is an important stepping stone to becoming a fully-fledged business.

Ultimately, business bank accounts help separate personal finances from your business finances. When you file taxes for your business, you'll need to have a clear idea of your operations throughout the year. A business bank account is an ideal place for documenting income and expenses.

When you're managing daily operations, you want to be able to conduct your business professionally. Once you've developed a formal business plan and received the necessary certificates and licenses for your business, opening a business bank account will be the next step.

Determining the right type of account

Business banking has similar account options to personal banking. These are the most common business bank accounts available at most banks: 

• Business checking account : You can manage everyday business operations with a business checking account. 
• Business savings account : Business savings accounts let you save money while earning interest.
• Business money market account: Business money market accounts may provide easier access to your money than a traditional savings account , while still allowing you to earn interest. You might have access to your account through a free debit card or a higher number of monthly withdrawals. 
• Business CD: Business certificates of deposit lock in your deposit at a certain rate for a specific amount of time. This can be helpful if you want to set money aside for a large purchase of equipment or inventory in the future. You'll want to be mindful of early withdrawal penalties , though. 
• Merchant services account: Merchant service accounts are ideal for managing debit or credit card transactions. 

You'll want to choose business banking options that best fit your goals. Pay attention to interest rates, minimum opening deposits, balance requirements, monthly bank maintenance fees, and transaction fees. These details can vary between bank accounts and financial institutions. 

As a business owner, your financial needs are likely to evolve. Consider what other financial products banks offer that you may need to use in the future, such as business loans or lines of credit. Find out whether the bank has business advisors or loan experts who have expertise in your industry. 

Personal documentation

All owners of the business must come together to open an account and bring personal documentation for business banking.

Like with a personal bank account, you'll need to provide government-issued ID, such as a driver's license or passport.

Business license

Depending on where you live and the type of business you own, federal and state business licenses and permits will be mandatory to establish your business.

When you open a business account, make sure to bring any business licenses you have. These indicate that you are following state and federal laws. 

Employer Identification Number (EIN) or Social Security Number (SSN)

An EIN is necessary for any business that is considered a partnership or corporation.

You'll need an EIN to open a business account if you aren't the only person in charge of your business. Sole proprietors can use their SSN instead of an EIN on a banking application or a business credit card application . 

If you currently don't have an EIN and aren't the sole owner of your business, you can apply for one using the IRS website. You can get your EIN the same day you fill out the application online.

Additional business documentation

Every business owner needs to provide basic business information to open a bank account, including the business name and address.

You may also need additional business documentation to open an account depending on your type of business and where you bank.

If you're part of a partnership, you may be asked to provide a partnership agreement or certificate of the limited partnership. If there isn't a formal partnership agreement, you'll have to make a written document that states a formal partnership hasn't been formed.

Business owners of a limited liability company or corporation may need additional documents that outline their business agreements and operations, like an LLC operating agreement or corporate bylaws.

The application process

Application processes vary by bank and account type. Applying online may be easier if you're the sole business owner, but be prepared to provide additional documents. 

If there are multiple owners who will need access to the new account, it may be easier to visit a bank branch and work with a bank representative in person. This will also give you the opportunity to ask questions as you go and start to build a relationship.

Download the bank's app as soon as your account is set up so that you can monitor your balance, deposits, and transactions on the go. Consider setting up alerts to stay on top of your balance requirement.

Business banking FAQs

Separate bank accounts can help when it comes to tax reporting and filing and boost the credibility of your business.

An Employer Identification Number (EIN) is a federal tax number that identifies your business to the IRS. Most banks require one to open a business account.

Yes, many banks have online applications for deposit accounts, including business accounts. 

Consider fees, the interest rate , accessibility online and in person, and online banking services and features.

Initial deposit requirements vary by bank, from $0 to $100. There may be separate daily minimum balance requirements for avoiding common bank fees or earning interest.

• Bank accounts
• Savings and CD rate trends
• How banks operate

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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• Main content

NatWest 'Tell Sid' retail share sale plans scrapped by chancellor

Rachel Reeves describes the previous government's proposal as a "bad use of taxpayer money" but says her administration still intends to return the high street bank to full private ownership by 2025-26.

By Daniel Binns, business reporter

Tuesday 30 July 2024 08:25, UK

NatWest has said it "welcomes" the government's commitment to returning it to full private ownership after the chancellor announced she was scrapping a retail share sale in the high street bank.

Rachel Reeves said the plans, announced by the previous Conservative administration, were a "bad use of taxpayer money" and suggested the bank's remaining state-owned stock would now be sold off to large, institutional investors instead.

Officials had been gearing up for a mass-market sale this summer, with shares offered to ordinary investors at a discount to the bank's prevailing share price, along with "bonus" share offers , to encourage take-up.

However, the rollout - which was due to be backed by an advertising campaign similar to the "Tell Sid" push that accompanied the sale of shares in British Gas following its denationalisation in the 1980s - was put on hold by Rishi Sunak's decision to call a sudden general election.

Read more: Why things look rosy for NatWest 12 months on from debanking crisis

The bank - formerly known as Royal Bank of Scotland - was at one stage 84% owned by the taxpayer after it was bailed out with a total of £46bn of public money in 2008 and 2009 during the financial crisis.

The Treasury has since been selling down its stake in the lender, with the state's stake dropping to below 20% in recent weeks.

However, it was estimated the retail share sale could end up costing taxpayers up to £450m.

The chancellor said the government still intended to "fully exit" its shareholding in Natwest by 2025-26.

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Speaking on Monday, she told the Commons: "But having considered advice, I have concluded that a retail share sale offer would involve significant discounts that could cost taxpayers hundreds of millions of pounds.

"It would therefore not represent value for money.

"It will not go ahead. It's a bad use of taxpayer money and we will not do it."

Read more from business: Evri to hire 9,000 new staff Half of UK TV and film staff out of work Royal Mail bidder talks over £3.6bn deal

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A NatWest Group spokesman said: "We welcome the chancellor's commitment to returning NatWest Group to full private ownership.

"This is a shared ambition that we believe is in the best interests of both the bank and all our shareholders."

Keep up with all the latest news from the UK and around the world by following Sky News

Last week, the bank revealed it had spent £24m on the scrapped plans, including advertising.

However, it is understood that some of that amount is expected to be re-used for general advertising uses, although the bill also covers legal fees and expenses.

Related Topics

• Rachel Reeves
• stock market

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