BUSINESS PLAN
[Store Name]
[What the store sells, to whom] · [Founder Name(s)] · [Month YYYY]
All figures are example figures that reconcile with each other. Replace them with your own; totals are typed values and do not recalculate.
Summary
[Store Name] sells [products] online to [customer]. [One sentence on why customers buy from this store instead of alternatives.] The plan projects 8,000 orders in year 1 at an average order value of $57.44, and seeks $116,504 to fund opening inventory, launch marketing, and working capital.
Product range
CATEGORY | SKUS | AVG PRICE | LANDED COST | GROSS MARGIN | UNIT MIX |
|---|---|---|---|---|---|
[Category A: core product] | 12 | $48.00 | $16.00 | 66.7% | 40% |
[Category B: accessories] | 20 | $32.00 | $11.00 | 65.6% | 35% |
[Category C: refills and add-ons] | 8 | $22.00 | $7.00 | 68.2% | 25% |
Total / weighted | 40 | $35.90 | $12.00 | 66.6% | 100% |
Landed cost includes the product, inbound freight, and duties. Unit mix is the share of units sold.
Sourcing: [Manufacturer or supplier, country, minimum order quantities, and payment terms.]
Pricing: [How prices compare with alternatives; discount and free-shipping policy.]
Customers and acquisition
[Target customer in one or two sentences: who they are, what they buy today, and where they find products like this.]
CHANNEL | YEAR 1 SPEND | SHARE | APPROACH |
|---|---|---|---|
Paid social | $45,000 | 50% | [Prospecting and retargeting ads] |
Paid search and shopping | $27,000 | 30% | [Brand and product searches] |
Creators and affiliates | $12,000 | 13% | [Commission or flat fee per post] |
Email and SMS | $6,000 | 7% | [Platform fees; flows and campaigns] |
Total marketing | $90,000 | 100% |
Competition
ALTERNATIVE | PRICE RANGE | STRENGTH | GAP THIS STORE FILLS |
|---|---|---|---|
[Marketplace sellers] | $[Low]–$[High] | [Strength] | [Gap] |
[Established brand] | $[Low]–$[High] | [Strength] | [Gap] |
[Local or specialty retail] | $[Low]–$[High] | [Strength] | [Gap] |
Unit economics per order
| How to read this Each order contributes $22.85 (40% of order value) toward marketing and fixed costs. [Target customer acquisition cost and repeat purchase rate, and how they compare with the contribution per order.] |
Fulfillment
Model: [Self-fulfilled / third-party logistics (3PL) / dropship], from [location].
Carriers and delivery times: [Carriers, service levels, and promised delivery window.]
Returns: [Return window, who pays return shipping, and what happens to returned stock.]
Service levels: [Orders shipped within [N] business days; customer email response within [N] hours.]
Inventory plan
CATEGORY | WEEKLY UNITS | LEAD TIME (WKS) | SAFETY STOCK (WKS) | REORDER POINT | OPENING ORDER | OPENING VALUE |
|---|---|---|---|---|---|---|
[Category A: core product] | 98 | 8 | 3 | 1,078 | 1,862 | $29,792 |
[Category B: accessories] | 86 | 6 | 2 | 688 | 1,376 | $15,136 |
[Category C: refills and add-ons] | 62 | 4 | 2 | 372 | 868 | $6,076 |
Total opening inventory | $51,004 | |||||
Weekly units = 8,000 orders ÷ 52 × 1.6 units × unit mix. Reorder point = weekly units × (lead time + safety stock). Opening order adds 8 weeks of cover.
Store and systems
FUNCTION | TOOL OR PROVIDER | MONTHLY COST |
|---|---|---|
Storefront and checkout | [Platform] | $[Amount] |
Email and SMS | [Provider] | $[Amount] |
Inventory and shipping labels | [App or 3PL portal] | $[Amount] |
Customer service | [Help desk or shared inbox] | $[Amount] |
Bookkeeping | [Software or accountant] | $[Amount] |
Year 1 by quarter
USD | Q1 | Q2 | Q3 | Q4 | YEAR 1 |
|---|---|---|---|---|---|
Orders | 1,200 | 1,600 | 2,200 | 3,000 | 8,000 |
Revenue | 68,928 | 91,904 | 126,368 | 172,320 | 459,520 |
Contribution before marketing | 27,420 | 36,560 | 50,270 | 68,550 | 182,800 |
Marketing | 22,500 | 22,500 | 22,500 | 22,500 | 90,000 |
Fixed costs | 20,000 | 20,000 | 20,000 | 20,000 | 80,000 |
Operating profit | (15,080) | (5,940) | 7,770 | 26,050 | 12,800 |
Values in parentheses are losses, covered by the working capital reserve.
Three-year projection
USD | YEAR 1 | YEAR 2 | YEAR 3 |
|---|---|---|---|
Orders | 8,000 | 16,000 | 26,000 |
Revenue | 459,520 | 919,040 | 1,493,440 |
Product cost | 153,600 | 307,200 | 499,200 |
Shipping, packaging, and fulfillment | 93,600 | 187,200 | 304,200 |
Payment processing and returns | 29,520 | 59,040 | 95,940 |
Contribution before marketing | 182,800 | 365,600 | 594,100 |
Marketing | 90,000 | 150,000 | 210,000 |
Fixed costs (salaries, software, storage) | 80,000 | 120,000 | 170,000 |
Operating profit | 12,800 | 95,600 | 214,100 |
Per-order figures from the unit economics table are held constant. Year 1 is the sum of the quarters above.
Key metrics
METRIC | YEAR 1 TARGET | HOW IT IS TRACKED |
|---|---|---|
Average order value | $57.44 | [Store analytics] |
Contribution per order | $22.85 | [Monthly margin report] |
Site conversion rate | [N]% | [Store analytics] |
Blended customer acquisition cost | $[Amount] | [Marketing spend ÷ new customers] |
Repeat purchase rate (12 months) | [N]% | [Customer cohort report] |
Funding and use of funds
[Store Name] is seeking $116,504 from [owner savings / investors / a loan] to reach [milestone] by [Month YYYY].
USE | AMOUNT | SHARE |
|---|---|---|
Opening inventory | $51,004 | 43.8% |
Store build, photography, and branding | $18,000 | 15.4% |
Launch marketing (first 3 months) | $22,500 | 19.3% |
Working capital reserve | $25,000 | 21.5% |
Total | $116,504 | 100.0% |
Milestones
TARGET DATE | MILESTONE | MEASURE |
|---|---|---|
[Month YYYY] | [Store live with [N] SKUs] | [Launch date met] |
[Month YYYY] | [First reorder placed] | [Sell-through rate] |
[Month YYYY] | [1,000 orders] | [Cumulative orders] |
[Month YYYY] | [Marketing spend returns [N]x in contribution] | [Contribution ÷ marketing spend] |
Risks
RISK | MITIGATION |
|---|---|
[Acquisition costs higher than planned] | [Test channels with small budgets; shift spend monthly] |
[Supplier delay or stockout] | [Safety stock above; second supplier identified] |
[Returns above allowance] | [Sizing guidance; review return reasons monthly] |
Team
[Name], [Role]: [Relevant experience in one sentence.]
[Name], [Role]: [Relevant experience in one sentence.]
Contractors: [Photographer, developer, bookkeeper, or 3PL account manager, and what each covers.]