Bookstore Business Plan

Topics: Retailing, Cash flow, Revenue Pages: 39 (8747 words) Published: June 25, 2012
Brian's Book Barn
Sample Business Plan

Canada / British Columbia Business Services Society
601 West Cordova Street Vancouver BC V6B 1G1 Phone: 604-775-5525 In BC: 1- 800- 667-2272 Fax: 604-775-5520

Sample Plan Business Plan for the period Starting May 1998

Executive Summary
Business Description
Brian's Book Barn is a new retail business venture due to begin operations on June 1, 1997. The business is a book and magazine store intended to serve the community of Ladbrokes and the surrounding area. Our goal is to provide customers with a wide variety of choices and to promote reading in the community. Brian's Book Barn will offer a variety of books and magazines that appeal to residents of Northwestern B.C.; Ladbrokes currently does not have a retail outlet dedicated to books and magazines. Brian's Book Barn aims to fill this void.

Ownership and Management
Brian's Book Barn is a partnership that will soon become incorporated under the laws of British Columbia. The business is owned by Brian Paige and his wife of 32 years, Novella Reid. Brian Paige has had extensive experience in the bookselling industry in rural B.C. and Alberta, having served in management positions with Coles Bookstores in B.C. and Alberta and with Ed's Bookstore in Prince George. Novella Reid has worked in the retail trade in rural B.C. and Alberta for over 30 years, most recently as Price George area supervisor for the Mick's Quickstop convenience store chain. Ms. Reid has also held management positions with Sally's Clothing Company in Alberta and with Canadian Hardware in Kamloops. Ms. Reid holds a Certificate in Retail Management from Prairie Heights Vocational Institute.

Key Initiatives and Objectives
The primary objective of the company is to attain and maintain a position as the major source of books and magazines in the greater Ladbrokes area. In the first year, we hope to capture 20% of the local retail market for books and magazines, increasing to 30% by the third year of operations. The store is scheduled to be open for business on June 1, 1997. A term loan of $20,000 is needed to ensure that the store has adequate inventory on hand when the store opens. Operating loans totalling $1000 are required to ensure positive cash flows in the first year. Negotiations with MacMillan Distributors, the largest book and magazine distributor in Canada, have taken place and a tentative distribution contract is in place. Finalization of the distribution contract is contingent on the store receiving bank financing.

Marketing Opportunities
Industry studies and analyst projections indicate that the market for books has been growing for the past 10 years and will continue to grow is the next three years. Growth estimates for the next three years range from 20% to 30%. For magazines, growth is projected at 1% to 2% per year for the next three years. The magazine market is widely regarded as mature and stable.

With Statistics Canada and other data sources indicating that the Ladbrokes area market for books and magazines is approximately $800,000, the total size of the market will likely reach $1,000,000 by 1999. The key market segments for books in the greater Ladbrokes area are residents with a high school education or more and children who are currently in the school system. A 1994 study commissioned by the Magazine and Bookseller Journal indicate that over 80% of all magazine buyers are between the ages of 18 to 54 and make over $24,000 per year. Overall, 56% of retail magazine buyers aree female and 44% are male. In the greater Ladbrokes area, the largest market segment is the farming and ranching community. Another large market segment in the area are hunters, outdoorspeople and fishers.

Competitive Advantages
With no other retail outlet dedicated primarily to books and magazines for 100 kilometres in any direction, Brian's Book Barn in an excellent position to capture the majority of book...
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