Value Corner Variety and Discount Store

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Value Corner Variety and Discount Store is a neighborhood store in Alabama. We sell low-priced household and cleaning items, packaged snacks, drinks and grocery staples, and party, school and seasonal goods. Our shoppers are families and neighbors who want everyday items close to home at fair prices.

The problem is simple. In many neighborhoods the nearest place to buy dish soap, school supplies or a birthday card is a long drive or a pricey convenience store. We carry the things people need most, keep prices clear and low, and keep the shelves stocked and the store clean.

Here is what our numbers show. We expect sales of $552,300 in Year 1, growing to $818,550 by Year 5 as we build a base of regular shoppers. We expect a profit of about $10,800 in Year 1, growing to about $25,000 by Year 5.

We need $160,000 in total. That covers $111,500 in startup costs (shelving, a point-of-sale system, cameras, opening inventory, a small build-out, the lease deposit, insurance and a sign) and a cash cushion for the first months. I am putting in $30,000 of my own money, and I am asking for a $100,000 SBA loan plus $30,000 from an investor or partner.

I am Linda Ortiz, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Value Corner Variety and Discount Store will be a limited liability company (LLC) in Alabama, owned by Linda Ortiz. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Everyday items should be easy to find, fairly priced and safe. We check every product, and we pull anything that has been recalled.

What we offer:
- Household and cleaning items. Cleaning supplies, paper goods, kitchen basics, storage bins, light bulbs and small tools.
- Snacks, drinks and grocery items. Packaged, shelf-stable snacks, canned and boxed foods, bottled drinks and a few cold items.
- Party, school and seasonal items. Greeting cards, balloons, party supplies, school and office supplies and seasonal decorations.
- Later, as we grow: a small health and beauty aisle and a layaway program. The numbers in this plan do not include these.

What we do not sell. In this plan the store does not sell alcohol, tobacco, vaping products, lottery tickets or medicine, which carry extra licenses and rules.

The space. In Year 1 we will lease a storefront of about 3,500 square feet in a shopping center near homes and schools. We budget $48,000 a year ($4,000 a month) for rent and utilities, and the plan assumes this grows about 3% a year.

Licenses and insurance. We will register the LLC with the state, get a business license, an EIN (the business tax number from the IRS, free at irs.gov) and a sales tax permit. We will ask the city and fire department what the store needs for occupancy, signs and exits, and will make sure the store meets accessibility rules. We will carry general liability, property and product liability insurance, plus workers' compensation once we hire. If we later accept SNAP, we will apply only if we qualify and follow every rule.

Where things stand today. This plan is my starting point. Before I sign a lease or buy inventory, I will count how many people pass the location, visit at least 5 competing stores to compare prices, survey at least 30 nearby households about what they would buy, and get quotes from at least 3 wholesalers. If the numbers do not match this plan, I will change the plan before I spend money.

Problem & Opportunity

Everyday shopping can be hard in some neighborhoods.

1. Few nearby choices. The closest place for household basics may be a long drive away.
2. Convenience store prices. A small store near home may charge more for the same item.
3. Hard to stretch a budget. Families are looking for low prices on the things they use every week.
4. Last-minute needs. A school project, a birthday party or a holiday often means a quick trip for a few small items.
5. Product safety worries. Some low-priced products do not meet safety rules, and parents want to be sure that items for children are safe.

How we will find out if people want this before we spend money. I will count foot and car traffic, survey at least 30 nearby households about what they buy and where, and compare prices at the nearest competing stores. Our Year 1 plan needs about 173 household items a day, about 187 snacks and grocery items a day and about 63 seasonal items a day over about 300 days, so I will ask for feedback on a product list before choosing what to stock.

Products & Services

What we sell. We have three groups of products, each priced simply.

1. Household and cleaning items. The plan assumes an average price of about $4.80 per item in Year 1, rising to about $5.20 by Year 5. Buying the item costs us about $3 in Year 1, rising to about $3.20. We expect about 52,000 items sold in Year 1, growing to about 70,000 a year by Year 5.
2. Snacks, drinks and grocery items. The plan assumes about $3.20 per item in Year 1, rising to about $3.60, with about $2.15 per item in cost. We expect about 56,000 items in Year 1, growing to about 74,000.
3. Party, school and seasonal items. The plan assumes about $6.50 per item in Year 1, rising to about $7.10, with about $3.70 per item in cost. We expect about 19,000 items in Year 1, growing to about 26,500.

Our prices. Every shelf has a clear price tag, a few items each week are marked down, and bulk buys give a better price per item. We check competitors' prices every month and never claim a price is the lowest unless we have checked.

How it works for a shopper:
1. The shopper walks in, finds items by aisle and checks the price on the shelf.
2. The cashier scans each item, and the receipt shows the price of each one.
3. If an item is wrong or broken, the shopper can return it with the receipt under a posted return policy.
4. We ask shoppers what they wish we carried and add popular requests when we can buy them at a good price.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for the items we sell. Our plan shows about 37% in Year 1. That money pays the team, rent, theft and damage, insurance and other bills. Team pay is counted separately, under payroll. A discount store makes a small amount on each item, so we depend on steady sales and careful buying.

Market Analysis

Who will use us:
- Families within a short drive or walk who need everyday household items.
- Parents and teachers looking for school supplies and party goods.
- Seniors and neighbors who want a nearby store for small purchases.
- Small organizations, churches and schools that buy supplies in volume.

Where we will work. Shoppers within about 10 minutes of the store. Parking, visibility and the mix of nearby homes, schools and workplaces are the most important factors.

How we sized the plan. Our Year 1 plan needs about 173 household items, 187 snacks and grocery items and 63 party and school items a day. That is a modest number of items for a store of this size, and it works out to a moderate number of shoppers a day, depending on how many items each one buys. I will check the real numbers by counting traffic and talking to neighbors before spending money.

Season. Back to school, Halloween, the winter holidays, Easter and graduation season are busy. The numbers show a yearly average, and we plan ahead by ordering seasonal items early and marking down what is left.

We are careful on purpose. The plan assumes one store with a small team, and it keeps the first year close to break-even.

Competitive Landscape

Other choices shoppers have:
1. Large discount and dollar chains. Wide choice and low prices, but sometimes farther away or crowded.
2. Grocery stores and supercenters, which have many items but may require a longer trip.
3. Convenience stores and gas stations, which are close but usually more expensive.
4. Online shopping, which is convenient but does not help with last-minute needs.
5. Other small local discount and variety stores.

How we will win shoppers: a convenient location, clear prices, a clean and organized store, friendly service, items that fit the neighborhood and quick responses to requests. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How shoppers will find us.
- A visible sign and window display, with a weekly special on a board outside.
- A free Google business listing with photos, hours and reviews.
- A grand opening with giveaways and a first-week coupon, delivered to nearby homes and posted in neighborhood groups.
- Partnerships with schools, churches and community groups for school supply drives and party supplies.
- A simple loyalty program and a weekly flyer or text with new items and markdowns.

Marketing budget. About $4,800 a year in Year 1 (about $400 a month), growing about 6% a year. The sign, banners, website and grand opening are paid for from startup costs ($7,000).

Operations Plan

How the business runs day to day.

The space and layout. A front checkout with two registers, aisles for household items, snacks and grocery items, party and school supplies, a seasonal display, a stockroom, a small office and cameras covering the floor.

A normal day:
1. Open the store, count the register, check the shelves and fill gaps from the stockroom.
2. Receive deliveries, check them against the order, price them and shelve them.
3. Serve shoppers at the register and on the floor, answer questions and keep aisles clear and clean.
4. Close the store, count the register, make the deposit, review sales and order what is selling.

Buying. We buy from wholesalers, distributors and closeout suppliers, compare prices from at least three sources, and keep a small cushion of stock for the busiest weeks. We check every item for damage and expiration dates before putting it on the shelf, and we remove expired items.

Product safety. We check every product against recall lists and the rules for children's products, and we do not sell items that fail those checks. We buy from reputable suppliers and ask for documents for items sold for children. We do not sell products that make health claims we cannot support.

Theft and security. Cameras, a good floor layout, a greeter near the door, a locked cash drawer and regular inventory counts keep losses low. The plan includes an allowance for theft and damage.

Equipment. About $30,000 to start: shelving and displays, a point-of-sale system with scanners, cameras and an alarm, coolers, baskets and carts. We set aside about $4,000 a year after that to replace and add equipment as we grow.

Running costs in Year 1: rent and utilities about $48,000, point-of-sale, card fees and software about $8,400, marketing about $4,800, insurance about $4,800, a theft and damage allowance about $8,000, and accounting, licenses and legal about $4,200. That is $78,200 in all.

Payment. Almost all sales are paid at the register, so what is owed to us is small, mostly card payments not yet in the bank. Inventory is a large part of the money, so the plan keeps an amount of cash tied up in stock.

Management & Organization

Who runs the business. Linda Ortiz, owner and manager. As owner I will buy the products, manage the team and schedule, handle the money and talk to shoppers every day. I plan to pay myself $38,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Assistant manager: one starting in Year 4, at about $32,000 a year.
- Cashier and stock associate (full-time): one in Years 1 and 2 and two from Year 3, at about $27,000 a year each.
- Cashier and stock associate (part-time): two in Years 1 and 2, two in Year 3, three in Years 4 and 5, at about $15,000 a year each (about 20 hours a week).

We hire people who are friendly, honest and reliable, train everyone on cash handling, product safety and customer service, check ages and work rules for any young workers, and run background checks (with the person's permission and following the law) on anyone who handles money.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands retail, a business attorney for a one-time review of the lease and vendor terms, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (5 to 7 months ahead): count traffic and survey at least 30 households, visit at least 5 competing stores, get quotes from at least 3 wholesalers, register the LLC and get an EIN, open a business bank account, get insurance and equipment quotes, find a space, have an attorney review the lease, and hire and train the opening team. Sign the lease only after the traffic counts and the supplier quotes are in hand.
- Year 1: open with the owner, one full-time and two part-time team members, and about 173 household items a day, $552,300 in sales and a profit of about $10,800.
- Year 2: grow sales and keep costs steady, with about 58,000 household items a year, $630,700 in sales and a profit of about $32,300.
- Year 3: add a second full-time team member, with about 63,000 household items a year, $702,600 in sales and a profit of about $31,800.
- Year 4: add an assistant manager, with about 67,000 household items a year, $762,700 in sales and a profit of about $9,800.
- Year 5: grow to about 70,000 household items a year with a team of seven, $818,550 in sales and a profit of about $25,000.
Growth depends on winning regular shoppers, buying well and keeping losses from theft and expired goods low, so treat the later years as goals, not promises.

What we check every week: sales per day, number of shoppers, average basket, gross margin, theft and damage, stock turns, reviews and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $160,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $111,500, listed item by item in the Startup Costs section: $13,500 for shelving, gondolas and wall displays, $7,500 for point-of-sale, scanners, cameras and alarm, $9,000 for coolers, shopping baskets, carts and small equipment, $52,000 for opening inventory, $8,500 for paint, flooring, lighting and fitting room-free layout work, $8,000 for lease deposit and first month of rent, $1,200 for business license, sales tax permit and local permits, $2,300 for legal and accounting setup, $7,000 for sign, banners, website and grand opening, and $2,500 for first insurance payment.
- A cash cushion of about $43,300: about 3 months of running costs. Our cash stays above zero in every year of the plan, but lenders still want a cushion in the bank for slow weeks and surprises. They call this "working capital."
- Together that comes to about $154,800, rounded up to the nearest $500: $155,000.
We are raising $5,000 more than that, $160,000 in all, to leave extra room for loan payments in the first years and for stock ahead of back to school and the holidays.

Where the money comes from:
- My own money: $30,000.
- Amount requested as a loan: $100,000.
- From an investor or partner: $30,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a profit of about $10,800 in Year 1, growing to about $25,000 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $121,900, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $1,478 a month (about $17,741 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with a smaller store of about 1,500 square feet or a kiosk in a market or mall (check the local rules), carrying the 300 best-selling items. Startup can be roughly $25,000 to $40,000 for shelving, opening stock, a point-of-sale system, insurance and a sign. Get your own quotes.
- Phase 2: once you see which items sell best and have a steady stream of shoppers, move into a larger space and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your product list with wholesale and shelf prices.
- Supplier quotes and sample vendor terms.
- A letter or quote for the space, and the lease once you have it.
- Quotes for the shelving, point-of-sale and security equipment.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Household and Cleaning Items: about $4.80 per item in Year 1, rising to $5.20; about $3 per item in direct costs, rising to $3.20; about 52,000 items in Year 1, growing to 70,000.
- Snacks, Drinks and Grocery Items: about $3.20 per item in Year 1, rising to $3.60; about $2.15 per item in direct costs, rising to $2.35; about 56,000 items in Year 1, growing to 74,000.
- Party, School and Seasonal Items: about $6.50 per item in Year 1, rising to $7.10; about $3.70 per item in direct costs, rising to $4; about 19,000 items in Year 1, growing to 26,500.
- Pay: Owner / Manager $38,000 (1/1/1/1/1); Assistant Manager $32,000 (0/0/0/1/1); Cashier and Stock Associate (full-time) $27,000 (1/1/2/2/2); Cashier and Stock Associate (part-time) $15,000 (2/2/2/3/3). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: store rent & utilities $48,000, point-of-Sale, card fees & software $8,400, marketing $4,800, business insurance $4,800, theft and damage allowance $8,000, and accounting, licenses & legal $4,200. These grow between 3% and 10% a year as the business grows.
- Almost every sale is paid at the register. At the end of Year 1 about $5,523 (1% of Year 1 sales) is card payments still on the way to our bank.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs