A new office building will open two blocks away from my store. I am planning to expand my business by launching a second store at that location. Now I am going to make my one-store business to two-store operating business. I decided to call the chain store Buster’s. It will offer a variety choice of daily need, such as snacks, pre-wrapped sandwiches, bottled or canned beverages, greeting cards, newspapers, paperback books, and small gift items.
b) Company History
My store Buster’s are established since 2008, a small retailing business in the lobby of a large office building. It’s occupies 1000 square feet of space. I spend fifty hours a week at the store and hire two employees, each of whom spends thirty hours a week at the store. The annual revenues are between: $150,000 - $300,000. The store is solely owned and managed by Morgan Chan, who successfully run and keep the revenues stably growth at the pass few years. We provide the convenience and friendly service to our neighborhood then successfully build up the brand and reputation of Buster’s around the district. I am going to apply my experience with even more successful business strategy to expand my business, by operating my second store.
c) Locating the second store
The location is the essential of the business successes, the new building which erect two blocks away recently is my best choice. Not only for easy manage, but there is a new Grade A commercial building in town, it is critical for my store’s branding and image. Beside the Grade A building is providing a larger amount of potential customers then will bring higher consumption volume to us.
d) Business aspiration:
I will make my store to be the most professional convenience store in town. We will always providing the friendly service and care, wide variety of goods and services, excellent quality food products, reasonable price and attractive image. Ultimately, I hope to expand my business to 10 to 15 stores to suitable for downtown market. And proactively occupy more market share and stronger the branding.
2) Organizational Structure
a) Owners: The Company is formed by partnership, after Morgan Chan’s brother join the business. Morgan Chan’s elder brother --- the investor --- Mosses Chan will be the “Sleeping partner”. That mean, he will not involve the operation and management of the business, but he still can share a profit. b) Manager: Morgan Chan, Bachelor of Business and administration, University of Management and Technology (USA). Mr. Chan has 3 years convenient store operation experience. The store got break-even 10 month after its opening. c) Employee: The business has two employees initially. They are responsible to shop keeping, stock managing and general daily operation. They are Lucas and Yan. They are high school graduated, with at least one year shop keeping experience. So that they can handle the daily operation by their own. As my experience, 2 staffs are the minimum amount of shop keepers. If the second store got opened, I will promote both to shop supervisor, and employ more new shop assistant staff to fill the vacancy. Lucas and Yan will response to train the new staff and manage the stores, customer service, keep tract inventory or replenishment and report customers’ comments and complaints to the owner. And I will hire 4 new staff for the expanding. They will work on shift, because we will open for whole week.
3) Financing Mean
Anticipated start-up cost of the new store is US$260,000. The main cost of the start up of the second store is the decoration and the inventory. It is estimated that the decoration and fixture are cost a hundred thousand and the initial inventory will cost the other hundred thousand dollar. And the 60 thousand dollar is spare for operation of urgency use. The funding will come from my elder brother Mosses Chan’s assets. I will get the budget by him, to mortgaging his property; he...