How to Write a Convenience Store Business Plan

Starting your own business is an opportunity to embrace the freedom of becoming your own boss. It’s one of the most popular dreams, with 45% of Brits wanting to start or grow a side hustle in 2024. But why grow a side hustle when you can make it your primary income?

Opening your own corner shop is one example of how you can get into entrepreneurship, but like all good ideas, you need a plan to add some structure to it. Writing a business plan is the critical first step to mapping out your vision and deciding how you’re going to turn your shop profitable.

Let’s explore what you must know about creating your business plan.

Do you need a business plan for a small convenience store?

There’s no legal requirement to produce a business plan. In fact, many small businesses never produce a formal plan. According to one study, around one in four SMEs don’t write a business plan when they start.

But just because you don’t have to create a business plan doesn’t mean you shouldn’t. These documents add a method to the madness and may be a requirement if you’re planning to secure financing to fund your convenience store.

Remember, these are living documents that help you to clarify your business idea, unearth potential problems, and set down your goals. All businesses, regardless of size, can benefit from having one of these documents.

Starting a convenience store business the right way

Launching any business venture is fraught with challenges – an estimated 20% of small businesses in the UK will collapse within their first year.

However, a business plan is a component that can reduce your risk because of what it does. Here are some of the reasons why creating a business plan just makes sense:

• Raise Money – Any lender will ask for a comprehensive business plan. Your plan outlines your financial needs now and in the future, enabling you to properly get your convenience store’s numbers in order.

• Make Better Decisions – Corner shop business plans provide the foundation for making better decisions by focusing your ideas and planning out all areas of your business.

• Identify Strengths and Weaknesses – Only by going through the planning process do you discover what’s good about your plan and where your weaknesses lie. If you identify any gaps in your plan, this document lets you plan how to overcome them rather than discovering them later after you’ve opened your doors.

• Stay on Track – It’s easy to go wildly off course when you’re already contending with the day-to-day of running your shop. Your business plan is the compass that keeps you on your correct course and reminds you of the goals you’re pursuing.

• Assess the Competition – Practically every few streets in the UK have a nearby corner shop. Business planning means not just looking at your business but also other businesses you’ll be competing with. This is what helps you decide whether you have a viable idea.

Plenty of business plan templates exist online, but it’s wise to run through your plan with a professional. Business consultants can analyse your plan and come up with guidance that you might not have discovered if you were handling it yourself.

Business plans can be as straightforward or as complicated as you want to make them. What matters is that you commit yourself to paper.

Convenience Store Business Plan Template

What does a business plan for a local shop actually look like?

You might be surprised to learn that convenience store business plans aren’t that different from any other business. That’s because the foundations of success for any business are always the same when you boil them down.

Here’s a template to illustrate what you must include as part of your own business plan:

1. Executive Summary – A recap of everything you’ve included in your plan. It should capture the essence of your corner shop idea and its goals. 
2. Business Description – Outline your goals, target audience and products/services. It’ll often overlap with your executive summary. 
3. Market Analysis & Strategy – Investigate your target market and mention some of the competitors in your area. It’s wise to carry out a Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis in this section. 
4. Marketing and Sales – How will you attract people to shop with you? Mention how you will spread brand awareness and build a customer base in your area. 
5. Competitive Analysis – This section focuses on the competition. It’s time to get to know the other convenience stores in your area and what their strengths and weaknesses are. Ideally, your business plan should outline why your corner shop will be better. 
6. Management and Organisation – Cover who will run your business and why they matter. In the case of your corner shop, this might be just you. 
7. Products and Services – Describe what products you’ll be selling and the services you’ll be providing. For example, you might be selling fresh produce, baked goods, or lottery tickets. 
8. Operating Plan – Your organisational structure and the logistics of running it. Most corner shops have relatively simple organisational structures. 
9. Financial Projection – This is where you’ll get into the numbers. How will you bring in your targeted revenues, and what are your target revenues? Try to be as realistic as possible. 
10. Appendices – The final section is where you’ll provide any extra relevant information. It’s also the section where you’ll attach supporting documentation, such as market reports and financial statements.

This is nothing more than a basic template. Some entrepreneurs may have novel-worthy business plans, whereas others may only have a few pages. What matters is that you find what works for you.

How Cogogo can help you to open a convenience store

Opening a convenience store is the start of your entrepreneurial journey, but how do you get started? At Cogogo, we’ve been helping the UK’s business community secure what they need to jump right in.

As business brokers, we’re there to help entrepreneurs buy and sell businesses. If you want to purchase an existing corner shop to hit the ground running, Cogogo provides the latest convenience store listings in your area, complete with all the information you need to decide if it’s right for you.

If you want to learn more about buying convenience store businesses with our team, contact us today.

How to get funding for a convenience store

Applying for a convenience store loan can be done entirely online these days. It’s usually a matter of:

1. Comparing lenders online.
2. Filling out an online application form, complete with required documentation.
3. Waiting for an answer from the lender.

Gone are the days of scheduling a meeting with your local banker and then waiting weeks to see if they’ll approve your loan. However, you still might run into issues. Incomplete applications and insufficient documentation are still the most common reasons your application might not go through.

Get prepared before you even apply with all the documentation you need. Your lender might want to see:

• Proof of identity.
• Proof of address.
• Your last three months of bank statements.
• Cashflow forecast.
• Your formal business plan.

Having these documents in your pocket immediately enables you to apply with ease and avoid seeing your application delayed. Depending on the lender, it’s entirely possible that some financing options could be available for you to use in your shop in a matter of days.

However, before applying for financing, you need the perfect convenience store for you. At Cogogo, we support UK entrepreneurs in sourcing ideal corner shops for their next business ventures. To learn more about buying a new business or selling an existing one, contact the team today.