Convenience Store: Executive Summary and Pro Forma

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TERM PROJECT
Executive Summary and Pro Forma

Jeyhun Taghiyev
Park University

Executive Summary
Brothers’ is a convenience store located in Basehor, Kansas. This family owned business is conveniently located and the cross section of two major highways (K-7 and I-70). This small company expects to capture market share by becoming the low cost leader in the convenience store market by pricing competitively, providing excellent service and products. The major products offered include: newspapers, magazines, soft drinks, fruit juices, sport drinks, hot and cold snacks, limited grocery items such as canned goods, microwaveable meals, bread, auto products such as fuel additives and cleaning supplies, pet supplies, paper products and toothpaste.

Management
Since its family business Brother’s management team will consist of Jim Storm, Jack Storm and other the Storm family members. Jim will be an owner and main operator of the business. He will run all aspects of operations. Jack will assist in daily operations of the store as needed and can assist with bookkeeping and financial reporting. Other family members - Tom and John will be responsible from sales, marketing and human resources relatively. But main weakness is they are fresh graduates and don’t have marketing experience. Second, disadvantage is family is not much familiar with this location. Additionally, company will have mid-level management, such as warehouse manager that will be responsible for inventory of all products and facilities manager to oversee the stocking of the products, maintenance and replacement of equipments. Because the company is a start-up, there will be formal structure at first. Additional personnel and departments will be added as soon as store will grow. For future company plans to attract employees for management positions as new locations will be opened. Strategic Plan

Mission
Mission of Brother’s is to create a new distribution outlet that will significantly reduce prices for its customers and provide greater services with an equal level of quality, where customers will find authentic, hard to find, grocery items from around the world. Goals

* Get needed funding to start up business
* Achieve profitability by August
* Achieve nearly $300,000 in sales by Year 2
* Start up second store by the end of year
* Achieve cash flow self-sufficiency by the end of the first year Situation Analysis (SWOT)
Strengths: Convenient location of store in the cross section of two major highways is Brother’s main strength. Main competitor Aldi stores went out of business, due to high lease rates at that location. Brother’s has the advantage of being a business based on reserve, where rent is not a factor in operations. Overall, the environment appears very positive. The forces driving market demand, mainly economic, are strong, with industry growth healthy and new residents moving into the area resulting in a greater demand for store products. Weaknesses: One weakness is the location of store that is too far from suppliers. Due to the store’s far location transport costs might influence product costs. Opportunities: There is need to launch additional stores due to population of town. Also there is the opportunity to expand the product line(s) that the store carries. There is also the potential that the business may be able to employ local people part time. Other services being considered to present are ATM (Automated teller machine), lower sales, local crafts, fresh coffee. Threats: The major threat is the possibility of the emergence of new competitors. But Jim will establish a loyal customer base to alleviate transfer of customers to another business. Market Serviced

Our target market for our test store encompasses eight mile radius in which the approximate population is 160,000 (based on census information). The majority of the...
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