The issue of sustainability is becoming increasingly important. People are shopping more consciously and prefer products from organic farming, especially when it comes to food. In view of the increasing demand, opening an organic supermarket is a business idea that is both profitable and future-proof. To realize it successfully, the preparation of a business plan is essential.
What is a business plan?
A business idea is just that: an idea. In this state, it is still unsuitable as a planning aid for the foundation. This is where the business plan of your organic supermarket comes into play. It is a written elaboration in which you precisely structure your project according to a certain outline and support it with facts. The business plan not only outlines the basic idea and the start-up phase, but also forecasts the course of business over the next five years. It is, so to speak, the essence of your business.
A business plan serves these purposes
Many founders think that the preparation of a business plan is optional. In reality, it is the most important item in the pre-startup phase. Do not see the written elaboration of your business idea as a necessary evil, but as the first important step towards self-employment. The effort is worthwhile, because the business plan offers you the following advantages:
It serves as orientation
The broader your product range, the more detailed your planning must be. Thus, the preparation of a business plan for an organic supermarket is a great help to calculate the costs for the composition of the assortment and the store equipment in advance. However, once the doors of your supermarket are open, the plan does not lose its value. By continually checking the status quo against it, you can identify undesirable developments and get your business back on track in time.
It is an important document for investors
Sustainable business ideas don’t just make sense from an environmental perspective. Since they have promising market potential, they are extremely interesting for investors. Credit institutions are also open to these concepts. Perfect conditions to get financial support for your start-up. Nevertheless, both private investors and banks are primarily interested in the return on investment. The business plan of your organic supermarket provides information on how high this will be. It is therefore an indispensable document for getting potential investors interested in your idea.
It increases the chances of receiving the start-up grant
The store rent, the furnishings, the cash register system and, of course, the products – opening an organic supermarket is impossible without a considerable amount of start-up capital. If you are starting out from unemployment, the start-up grant from the Employment Agency is a helpful option. The business plan is an important document for the application and is crucial for the approval. It is therefore all the more important to prepare it with sufficient time, conscientiousness and commitment.
Writing a business plan for an organic supermarket – this is how it works!
The structure of any business plan follows a set pattern. There are five sections that focus on different aspects of your startup. In addition to your basic idea and goals, it is sound data and facts that go into the drafting. Below, you will learn more about the five pillars of the business plan and the questions that need to be answered in each section.
- Executive Summary
Although it is the first section, it is written at the end of the elaboration. The Executive Summary is a preface that summarizes your business idea in one to three pages. It is not unusual for it to determine whether the reader – for example, the investor or the administrator – will even look at the rest of the business plan.
Guiding questions in this section:
What should the organic supermarket’s product line look like?
What are the expected costs and profits?
Who is the person behind the idea?
What are the competitors?
- Market and competition analysis
For many consumers, the origin of products and their impact on the environment is now an important decision factor when making a purchase. Retailers have also recognized this. In addition to specialized stores, organic products now also grace the shelves of discounters and drugstores. The business plan for your organic supermarket should therefore include an extensive competitive analysis. In addition, you should identify your target group as well as potential sales volumes.
Guiding questions in this part:
How many competitors are there and how strong are their sales?
What market shares can be captured?
Should the entire organic market or a specific segment be served?
What is the composition of the target group and what is their purchasing power?
- Objectives and strategies
In this section, you first state the objectives you want to achieve in your business startup. Then you check them for feasibility and develop a strategy for implementation. The SWOT analysis, which originates from marketing, is a practical tool. Here you put the strengths, the weaknesses, the opportunities as well as the risks of each goal in relation to each other. This results in recommendations for action with which you can efficiently achieve your goals.
What are the weaknesses of the business idea?
How can the strengths compensate for the weaknesses?
Where do opportunities arise?
What is needed to minimize the risks?
- Personal introduction
At this point, the focus is on you as the founder. If your organic supermarket is not a stand-alone startup, this section should also include a brief introduction of your partners. Go into detail about your career to date and what retail expertise you bring to the table.
Guiding questions in this section:
What schooling or vocational training do you have?
Do you have any previous experience?
Why did you decide to start an organic supermarket?
In the case of a founding team: what strengths does each individual bring to the table?
- Financial plan
When creating a business plan for your organic supermarket, this last topic area is the centerpiece. This is especially the case if you rely on financial support from investors or credit institutions. The basis for the financial plan should be well-researched and realistic figures. Last but not least, the calculation should be accurate, mathematically correct and unadorned.
Guiding questions in this part:
How much capital is needed for the start-up?
What costs will be incurred?
What sales volumes can be achieved?
How high are the sales prices?
At what sales volume will a profit be generated?
Tips for avoiding possible sources of error
Writing a business plan is time-consuming. However, with the right approach, even inexperienced founders can easily prepare it. The following tips will help you put together a professional, meaningful and authentic business plan.
Apply the appropriate writing style
Sustainable consumption is not a trend, but a way of life. With your business idea, you are advocating a considerate approach to nature. These emotional aspects behind your vision should only come up briefly in your business plan as part of your personal introduction. Choose an approachable but factual writing style for the remaining sections.
Use solid data and facts
Vague formulations and inaccurate figures diminish the significance of your business plan. For this reason, you should conduct thorough research in advance. Accurate calculation of key figures is not only important for attracting investors. It also protects you as a founder from unpleasant surprises. Therefore, stay realistic and refrain from embellishing unfavorable data.
Use the business plan of your organic supermarket also after the start-up phase
Does the actual state correspond to the plan or are deviations recognizable? You can only get an answer to this question by regularly comparing reality with the business plan. If you clearly deviate from the path, you can initiate countermeasures in time through this continuous control.
For further questions on the topic of business plan creation, you can always contact avviarsi Consulting.