Corner Market Grocery

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

Executive Summary

Corner Market Grocery is a small neighborhood grocery store in Mississippi. We plan a store of about 4,500 square feet with fresh produce, meat and dairy, a deli with hot lunches, pantry staples, household goods and a few local products. We accept SNAP and other benefit cards, offer a loyalty program and are open early and late. The store is a place where neighbors know the staff and can buy what they need without a long drive.

Many neighborhoods have lost their grocery store, and residents without a car must travel far for fresh food, or rely on gas stations and dollar stores. A well-run small grocery serves a real need and a business can work if it keeps costs low, stocks what the neighborhood wants and controls spoilage.

Here is what our numbers show. We expect about 60,000 grocery baskets (about 167 a day), 14,000 deli sales and 9,000 service transactions in Year 1, which brings in sales of $1,468,500, growing to $2,875,265 by Year 5. Grocery is a low-margin business: our gross margin is about 26% before pay, rent and other costs. We expect a loss of about $160,300 in Year 1 and a loss of about $38,800 in Year 2 while the store builds its shoppers, then a small profit from Year 3 ($8,200), growing to about $109,400 by Year 5. Spoilage and theft can eat a thin margin, so we plan carefully for inventory and cash.

We need $550,000 in total. Of that, $330,000 is startup costs (refrigeration and fixtures, the build-out, the opening inventory, the lease deposit and setup) and the rest is cash to cover the first months. I am putting in $150,000 of my own money, and I am asking for a $400,000 SBA loan.

I am Rosa Jenkins, the owner, a former grocery store manager with 14 years in retail grocery. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Corner Market Grocery is a small, independently owned grocery in Mississippi, planned as a limited liability company (LLC). We will lease about 4,500 square feet in a neighborhood with many households and no full-service grocery within about two miles.

Our mission. To give our neighbors a clean, friendly place to buy fresh, affordable food close to home.

What we believe. A grocery is part of a neighborhood's health. We stock what our customers ask for, keep prices fair, keep the store clean and the food fresh and hire from the neighborhood. We listen to customers and change the shelves.

What we offer:
- Fresh food. Produce, meat, dairy and bread, with local items when we can.
- Pantry and household goods. Staples, cleaning supplies, baby items and toiletries.
- A deli. Hot breakfasts, lunch plates and grab-and-go meals made daily.
- Benefits and services. We accept SNAP, and we offer money orders, bill pay and lottery as the state allows.
- Community. A bulletin board, local products and partnerships with churches and schools.

Who we serve. Households within about two miles, many without cars, and workers and students who stop for lunch.

What we do not do. We do not sell items we cannot sell lawfully, and we check age and identification where required. We do not give credit.

How we are run. I am the owner and manager and work in the store. An assistant manager, cashiers and stockers, and deli cooks work with me. A small advisory group of a church leader, a produce wholesaler and an accountant tells us what is working.

Where things stand today. We have a lease option, a letter of interest from a wholesaler, equipment quotes and about 200 signatures from neighbors who say they would shop here. Before we begin, our attorney will review the lease, and we will confirm the state's retail food and benefit program requirements.

Problem & Opportunity

Many neighborhoods and small towns have no full-service grocery store. Residents who do not have a car must pay for rides, take buses with heavy bags or shop at gas stations and dollar stores with little fresh food. Public health researchers describe areas like these as food deserts, and residents face higher rates of diet-related illness.

Why do grocery stores close or not open? Margins are thin, theft and spoilage are costly, and national chains choose larger sites. Small stores pay more for goods than large chains, so prices can be higher. Refrigeration uses a lot of electricity. A store needs to be well run and well stocked to compete.

For a new owner, startup costs are large: refrigeration, fixtures, the build-out and the opening inventory can exceed $300,000. Suppliers extend credit only after the store proves itself.

We want to be clear about what we know and do not know. A grocery serving a neighborhood with no competitor can do well, but it must control costs carefully. We will use the most recent census and store sales numbers for our trade area in our final plan and will not overstate them. We do not know how many neighbors will shop here regularly, so our plan assumes losses in the first two years and a small profit afterward.

Products & Services

Corner Market will stock fresh food and everyday goods at fair prices, control spoilage and make the store a neighborhood habit.

How it works, step by step:
1. Choosing products. We start with a customer survey and the signed list of neighbors, stock a core of staples and fresh food and adjust weekly using sales data.
2. Buying. We buy from a primary wholesaler for dry goods, local produce and bread vendors and a meat supplier, and negotiate delivery days.
3. Fresh handling. We rotate produce and dairy daily, mark down items before they spoil and sell near-date food in the deli.
4. The deli. Staff cook breakfast and lunch from fresh ingredients and use unsold produce and meat when safe.
5. Checkout. Cashiers use a point-of-sale system that tracks inventory, accepts SNAP and cards and offers a loyalty program.
6. Inventory control. We count weekly, track shrink by category and review the numbers every Monday.
7. Safety. The store has cameras, good lighting and staff trained in food safety and age-restricted sales.
8. Community. We host a monthly market day with local vendors and partner with churches and schools.

Why this approach is strong. A neighborhood grocery that is clean, fairly priced and well stocked becomes a habit, and a deli adds margin.

Market Analysis

Who we serve: households within about two miles and workers and students who stop for lunch.

Our primary group is households without a full-service grocery nearby. We will use the census and the state's food access data in our final plan. Our secondary group is workers and students near the store.

How we sized our plan. We plan about 60,000 grocery baskets in Year 1 (about 167 a day), averaging about $22; 14,000 deli sales averaging about $9; and 9,000 service transactions. We plan 100,000 baskets by Year 5 as shoppers build the habit. Prices rise about 3% a year.

Demand data. About 200 neighbors have signed that they would shop here, which is roughly 15% of the Year 1 baskets if each shops weekly. We do not count on any one shopper.

We do not stock everything. We carry what sells, take special orders and tell customers when something is not available.

Competitive Landscape

Other places neighbors shop, and what makes us different.

- Supermarkets and big-box stores. They have lower prices and wide selection and are far away. We are close and personal.
- Dollar stores. They have low prices and little fresh food. We offer produce, meat and dairy.
- Gas stations and convenience stores. They are open late and costly. We offer lower prices and fresh food.
- Delivery services. They are convenient and have fees. We are on foot and offer a deli.
- Farmers markets. They offer fresh produce seasonally. We are open every day.

What makes us different.
- A full-service grocery within walking distance.
- Fresh produce, a deli and benefits acceptance.
- Staff from the neighborhood.
- Fair prices and a loyalty program.

What we do not claim. We are new. Large stores have lower costs. We plan to earn trust one basket at a time.

Marketing & Sales Strategy

How we will reach customers.

Neighbors. We will share flyers with churches, schools and apartment managers, host a grand opening with tastings and discounts and ask the 200 neighbors who signed to bring a friend.

Benefits. We will promote SNAP acceptance and work with local nonprofits to reach families who use benefits.

Digital. A Google business listing with hours, a simple social media page and a text club with weekly specials.

Community. We will sponsor a youth team, host a monthly market day and offer a fundraising program for schools.

Pricing. We price staples competitively and publish a weekly flyer. Our average basket is about $22 in Year 1.

Operations Plan

How the business will run.

Setup (the 4 to 6 months before opening). We will form the LLC, sign the lease, build out the store, install refrigeration and fixtures, obtain the retail food license and benefits authorization, buy insurance, hire and train staff and stock inventory. We will not open until the inspections and licenses are complete.

The store. About 4,500 square feet with produce, dairy and meat cases, aisles of dry goods, a deli counter and a checkout area. Rent is $5,500 a month in the plan.

Inventory. The opening inventory is about $110,000. We turn most of the stock every two to three weeks, and we carry about 14 days of cost of goods on hand. We pay wholesalers on about 30-day terms.

Staffing. In Year 1: I serve as owner and manager. An assistant manager, five cashiers and stockers and two deli cooks work with us, and we add staff as sales grow. We pay at least the minimum wage and overtime as required.

Spoilage and shrink. The plan budgets $30,000 a year for spoilage and shrink on top of cost of goods. We track it weekly.

Payments. Customers pay at the register, and benefit and card payments arrive within days, so little is owed to us.

Insurance. We carry general liability, property, product liability, workers' compensation and business interruption insurance. Insurance is about $12,000 a year in Year 1.

Management & Organization

The people who will run Corner Market.

Rosa Jenkins, owner and manager. A former grocery store manager with 14 years in retail grocery, including six years running a store with $4 million in sales. She leads buying, hiring, customer service and finance and works in the store. (Replace this paragraph with your own background.)

Assistant manager. Runs shifts, ordering and inventory counts.

Cashiers and stockers. Run the registers and keep shelves full and clean.

Deli cooks. Cook, serve and keep the deli clean.

Outside advisors. An attorney, an accountant, an insurance broker and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner and manager $52,000, assistant manager $40,000, cashier and stocker $26,000 each and deli cook $30,000 each. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (4 to 6 months ahead): collect at least 200 signatures from neighbors, get a wholesaler agreement and lender quotes, confirm the retail food license and benefits authorization, form the LLC, get an EIN and open a business bank account. Sign the lease only after the lender's commitment is in hand.
- Year 1: about 60,000 baskets, 14,000 deli sales and benefits authorization in place; $1,468,500 in sales and a loss of about $160,300.
- Year 2: about 76,000 baskets; $1,956,700 in sales and a loss of about $38,800.
- Year 3: about 86,000 baskets and the first profit; $2,311,040 in sales and a profit of about $8,200.
- Year 4: about 94,000 baskets; $2,615,395 in sales and a profit of about $75,500.
- Year 5: about 100,000 baskets; $2,875,265 in sales and a profit of about $109,400.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: baskets per day, average basket, gross margin, shrink, inventory days, labor as a share of sales and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $550,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $330,000, listed item by item in the Startup Costs section: $78,000 for refrigeration: reach-in coolers, a walk-in cooler and freezers; $26,000 for shelving, display fixtures, carts and baskets; $14,000 for point of sale, scales, cameras and a security system; $60,000 for store build-out: flooring, lighting, deli counter and restrooms; $110,000 for opening grocery, produce and deli inventory; $11,000 for lease security deposit and first month of rent; $5,000 for retail food, EBT and business licenses and sign permit; $6,000 for attorney and accountant: lease review and setup; $12,000 for exterior sign, price signs and a website; $8,000 for hiring, training and the first insurance payments.
- The cash the business uses before it breaks even, about $52,186: because inventory and equipment are paid for before the first sale and the store takes time to build its shoppers.
- A cash cushion of about $121,900: three months of Year 1 operating costs.
- Together that comes to about $504,086, rounded up to the nearest $500: $504,500.
We are raising $45,500 more than that, $550,000 in all, to cover the loan payments and the extra cash the early years take. With this funding, the lowest year-end cash balance is about $87,600, at the end of Year 2.

Where the money comes from:
- My own money: $150,000.
- SBA 7(a) loan for inventory, build-out and working capital: $400,000.

Kind of funding we are looking for. An SBA 7(a) loan through a bank or community lender that lends to grocery stores, plus our own equity. Lenders look at the owner's experience, the lease, the wholesaler terms and the customer signatures.

How we will pay it back. We expect a loss of about $160,300 in Year 1 and a loss of about $38,800 in Year 2, then a profit of about $8,200 in Year 3, a profit of about $75,500 in Year 4 and a profit of about $109,400 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan. The loan is planned at sba 7(a) loan for inventory, build-out and working capital at 12.75% over 10 years, about $5,914 a month. That is about $5,914 a month in all, and it is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: a personal guarantee, a lien on the inventory and equipment and the signed lease.

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 and a focused product list, with produce, dairy and staples, which lowers the opening inventory.
- Phase 2: once you have steady shoppers, add the deli and more products 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 and a description of your grocery experience.
- 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).
- The lease or lease option and a floor plan.
- Your wholesaler agreement and product list.
- Equipment quotes.
- Insurance quotes or proof of insurance.
- Neighbor signatures and a map of nearby stores.
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):
- Grocery Sales (per basket): about $22.00 in Year 1, rising to $24.76; about $16.20 in direct costs, rising to $18.23; about 60,000 in Year 1, growing to 100,000.
- Deli and Prepared Foods (per sale): about $9.00 in Year 1, rising to $10.13; about $3.60 in direct costs, rising to $4.13; about 14,000 in Year 1, growing to 35,000.
- Services: Money Orders, Lottery Commissions and Bill Pay: about $2.50 in Year 1, rising to $2.71; about $0.20 in direct costs, rising to $0.22; about 9,000 in Year 1, growing to 16,500.
- Grocery baskets about $22 in Year 1 with about $16.20 in product cost (gross margin about 26%); deli sales about $9 with about $3.60; services about $2.50 in commission with about $0.20; prices rising about 2% to 3% a year. Spoilage and shrink of $30,000 a year are shown as a separate cost.
- Pay (a full year, per person): owner and manager $52,000; assistant manager $40,000; cashier and stocker $26,000; deli cook $30,000.
- Other yearly costs in Year 1: store lease $66,000, electricity for refrigeration and lighting $30,000, insurance $12,000, point of sale and inventory software $4,800, marketing and loyalty program $6,000, refrigeration and equipment repairs $10,000, accounting and legal $4,800, supplies, bags and cleaning $6,000, spoilage and inventory shrink $30,000, payroll taxes and benefits (staff) $36,000. These grow between 3% and 10% a year.
- Startup costs and equipment ($330,000 in Year 1, then $8,000, $8,000, $10,000, $10,000) are spread evenly over five years in the plan's books.
- Customers and payers pay about 7 days after service. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs