How to write the location section of your business plan?

location section of a business plan

By now, you must already be in the process of writing your business plan. Each subsection or section included in this document is important in its own way and serves a specific purpose.

The location subsection is one such and is likely to be of great interest to investors and other stakeholders. It helps them understand whether or not your business could be a success based on the characteristics of the area.

This subsection is part of the overall “company presentation” section and is usually grouped with the presentation of the structure and ownership of the business and the management team involved in operations.

But, how do you ensure that the location section is well-written and provides readers the detail they want to see?

Let’s take a look at this in more detail!

In this guide:

What is the objective of the location section of your business plan?

How long should the location section of your business plan be, what information do i include in the location section of my business plan, example of the location presentation in a business plan, what tools should i use to write my business plan.

The main reason why stakeholders might be interested in this information is to understand the serviceable areas that your business targets. In this section, our main emphasis will be on answering the “why here” question that may arise in the minds of the readers.

The area in which a business is located has a significant impact on both its profitability and long-term performance. Businesses are more likely to thrive in areas with easy access to higher-skilled labor and quality infrastructure (i.e. transportation). 

The location section of your business plan helps financiers understand the commercial potential and the risks of investing in your business.

Whilst digital transformation has allowed people to “come together” regardless of where they are located, some investors still prefer to consider the effects of agglomeration. 

Agglomeration refers to the geographical proximity between businesses and/or people and what effects it has on the operations and profitability of the business. 

Location is the key for any business. Let’s talk about how location matters for different types of businesses.

High street shops/businesses

Location is the primary driver of success for these types of businesses because they rely on the number of customers that walk in or are attracted by the storefront. If you operate a high street shop, explaining the attractiveness of the area is critical for your business plan.

For instance, your business might be located near a famous landmark (more so in country towns). Besides this, you should understand the risks associated with the location to the reader of the plan. These risks may include the ability to access the store, limited car parking, access to public transport, etc.

Industrial businesses

Following are some of the business types that may be categorized as industrial businesses. Needless to say that the location section of the business plan is essential for these types of businesses. 

Manufacturing facilities:

While writing a business plan for an industrial business, the location section should include details regarding the production capacity. How are raw materials obtained, how are finished goods manufactured and then shipped to the selling points.

Access to the workforce, energy, water, and environmental aspects should all be considered too. The environmental aspects include waste management, remediation in case of soil contamination, etc.

The logistics:

In the case of logistical businesses, the location section should cover the ease of access to the point of sales and the details regarding any warehouses or logistic hubs involved.

Hospitality businesses

If your business plan discusses food places, the location section should mention the cultures and preferences of locals. This will help the investor or lender determine whether or not your business model suits customer needs.

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When it comes to the location section of your business plan, you should aim to include as much information as possible, as long as it’s relevant. Put yourself in the shoes of the reader. You don’t want to be asking questions that could be easily answered by the document itself.

Be sure to answer:

  • Why is the business located here? 
  • How secure is the future of the location? Does the lease expire soon?
  • Is the workplace safe and secure for employees?
  • Is there an abundance of quality staff in the area?
  • Are the premises easily accessible (public transport, parking, etc.)?
  • How attractive is the catchment area? How much foot traffic is expected?

All these questions are crucial to the success of the business.

A general rule of thumb is that you must cover as much information as possible in 2-3 paragraphs per location.

The size will also depend on the structure of your business:

  • A single location business (hairdressing salon or off-licence for example) need to be quite exhaustive as the business is 100% reliant on that location
  • A chain with dozens or hundreds of implantations can afford to present locations at a higher level as there is some level of diversification in the overall premises portfolio
  • An integrated business with both manufacturing facilities and sale points will probably need to write a slightly longer presentation in order to cover all aspects

business owner writing the location section of their business plan on their laptop

To give you a better idea about the information to be added to the location section of your business plan, we’ve categorized it into four categories:

Business location

In this section, you need to state the full location and the exact address of the business. If possible, ensure that your business is listed on Google Maps so that readers can view the location easily. Mention all of the locations if you have more than one branch.

Also, if the business plan includes any plans for future expansion, the details of future location should also be mentioned here. 

In some cases, readers might be interested in the structure of the building in which the business is located. In that case, make sure to explain the general design of the building. This may include mentioning what’s on the first floor, second floor, etc.  

You might also want to provide a graphical representation i.e., a map that shows where your business is located and other brands or competitors in the area, a floor plan showing the layout of the premises.

Serviceable area

Another good practice is to include an explanation of your business’s serviceable area in your business plan. This is defined as the geographical region or territory where your business can effectively provide its products or services. 

You should also focus on why you chose that area in particular and what was the rationale behind it. Factors which may be discussed include convenience and easy access to suppliers.

One of the most attractive features of any location is vast parking availability and accessibility. You can use this opportunity to give a positive impression to the stakeholders regarding your venue.

You can also explain how customers, suppliers, and employees will access your business, including parking options. Writing about serviceable areas also helps readers form a picture of the type of customers who could benefit from your business (families on holidays, business executives, etc.).

Lease terms

The location section of the business plan should provide basic information about the terms of any lease you have signed for the property, such as length, rental rate, and any special clauses.

This is an essential piece of information that can have a significant influence in determining whether your business plan will be successful or not, financially.

Access to facilities

Another piece of information that you may add to the location section of your business plan is the ease of access to common facilities. 

Customers usually prefer to visit areas with significant facilities such as transportation, local infrastructure, and any other amenities that your business might offer customers.

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Below is an example of how the location section of your business plan might look like. As you can see, it coincides with the structure and ownership subsection and the management team.

There is a graphical representation of where the business is located, its exact address, information about what the venue includes internally and how close or far it is from infrastructure.

{{location presentation business plan template example: escape room}}

This example was taken from one of our business plan templates .

In this section, we will review three solutions for creating a business plan for your business: using Word and Excel, hiring a consultant to write the business plan, and utilizing an online business plan software.

Create your business plan using Word or Excel

This is the old-fashioned way of creating a business plan (1990s style) and using Word or Excel has both pros and cons.

On the one hand, using either of these two programs is cheap and they are widely available. 

However, creating an error-free financial forecast with Excel is only possible if you have expertise in accounting and financial modeling.

Because of that investors and lenders might not trust the accuracy of your forecast unless you have a degree in finance or accounting.

Also, writing a business plan using Word means starting from scratch and formatting the document yourself once written - a process that can be quite tedious - especially when the numbers change and you need to manually update all the tables and text.

Ultimately, it's up to the business owner to decide which program is right for them and whether they have the expertise or resources needed to make Excel work. 

Hire a consultant to write your business plan

Outsourcing your business plan to a consultant can be a viable option, but it also presents certain drawbacks. 

On the plus side, consultants are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring consultants is expensive: budget at least £1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the first meetings with lenders).

For these reasons, outsourcing the plan to a consultant or accountant should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their own business plan using an online software.

Use an online business plan software for your business plan

Another alternative is to use online business plan software .

There are several advantages to using specialized software:

  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can be inspired by already written business plan templates
  • You can easily make your financial forecast by letting the software take care of the financial calculations for you without errors
  • You get a professional document, formatted and ready to be sent to your bank
  • The software will enable you to easily track your actual financial performance against your forecast and update your forecast as time goes by

If you're interested in using this type of solution, you can try our software for free by signing up here .

The location section of a business plan is very important for both startups and established businesses alike. Giving an attractive outlook of your business’s location, can help you find a business partner or secure capital. 

This information mainly includes details about the location of the business, the structure of the building, and the facilities that are available for the workers and customers. This information can help readers decide whether they want to be a part of your business or not. 

Also on The Business Plan Shop

  • 7 tips for writing an effective business plan
  • How to do a market analysis for a business plan
  • How to write the structure and ownership section of your business plan
  • How to write the products and services section of your business plan
  • How to present the management team in your business plan

Know someone who needs to add the location to their business plan? Share this guide with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Step-by-Step Guide to Writing a Simple Business Plan

By Joe Weller | October 11, 2021

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A business plan is the cornerstone of any successful company, regardless of size or industry. This step-by-step guide provides information on writing a business plan for organizations at any stage, complete with free templates and expert advice. 

Included on this page, you’ll find a step-by-step guide to writing a business plan and a chart to identify which type of business plan you should write . Plus, find information on how a business plan can help grow a business and expert tips on writing one .

What Is a Business Plan?

A business plan is a document that communicates a company’s goals and ambitions, along with the timeline, finances, and methods needed to achieve them. Additionally, it may include a mission statement and details about the specific products or services offered.

A business plan can highlight varying time periods, depending on the stage of your company and its goals. That said, a typical business plan will include the following benchmarks:

  • Product goals and deadlines for each month
  • Monthly financials for the first two years
  • Profit and loss statements for the first three to five years
  • Balance sheet projections for the first three to five years

Startups, entrepreneurs, and small businesses all create business plans to use as a guide as their new company progresses. Larger organizations may also create (and update) a business plan to keep high-level goals, financials, and timelines in check.

While you certainly need to have a formalized outline of your business’s goals and finances, creating a business plan can also help you determine a company’s viability, its profitability (including when it will first turn a profit), and how much money you will need from investors. In turn, a business plan has functional value as well: Not only does outlining goals help keep you accountable on a timeline, it can also attract investors in and of itself and, therefore, act as an effective strategy for growth.

For more information, visit our comprehensive guide to writing a strategic plan or download free strategic plan templates . This page focuses on for-profit business plans, but you can read our article with nonprofit business plan templates .

Business Plan Steps

The specific information in your business plan will vary, depending on the needs and goals of your venture, but a typical plan includes the following ordered elements:

  • Executive summary
  • Description of business
  • Market analysis
  • Competitive analysis
  • Description of organizational management
  • Description of product or services
  • Marketing plan
  • Sales strategy
  • Funding details (or request for funding)
  • Financial projections

If your plan is particularly long or complicated, consider adding a table of contents or an appendix for reference. For an in-depth description of each step listed above, read “ How to Write a Business Plan Step by Step ” below.

Broadly speaking, your audience includes anyone with a vested interest in your organization. They can include potential and existing investors, as well as customers, internal team members, suppliers, and vendors.

Do I Need a Simple or Detailed Plan?

Your business’s stage and intended audience dictates the level of detail your plan needs. Corporations require a thorough business plan — up to 100 pages. Small businesses or startups should have a concise plan focusing on financials and strategy.

How to Choose the Right Plan for Your Business

In order to identify which type of business plan you need to create, ask: “What do we want the plan to do?” Identify function first, and form will follow.

Use the chart below as a guide for what type of business plan to create:

Is the Order of Your Business Plan Important?

There is no set order for a business plan, with the exception of the executive summary, which should always come first. Beyond that, simply ensure that you organize the plan in a way that makes sense and flows naturally.

The Difference Between Traditional and Lean Business Plans

A traditional business plan follows the standard structure — because these plans encourage detail, they tend to require more work upfront and can run dozens of pages. A Lean business plan is less common and focuses on summarizing critical points for each section. These plans take much less work and typically run one page in length.

In general, you should use a traditional model for a legacy company, a large company, or any business that does not adhere to Lean (or another Agile method ). Use Lean if you expect the company to pivot quickly or if you already employ a Lean strategy with other business operations. Additionally, a Lean business plan can suffice if the document is for internal use only. Stick to a traditional version for investors, as they may be more sensitive to sudden changes or a high degree of built-in flexibility in the plan.

How to Write a Business Plan Step by Step

Writing a strong business plan requires research and attention to detail for each section. Below, you’ll find a 10-step guide to researching and defining each element in the plan.

Step 1: Executive Summary

The executive summary will always be the first section of your business plan. The goal is to answer the following questions:

  • What is the vision and mission of the company?
  • What are the company’s short- and long-term goals?

See our  roundup of executive summary examples and templates for samples. Read our executive summary guide to learn more about writing one.

Step 2: Description of Business

The goal of this section is to define the realm, scope, and intent of your venture. To do so, answer the following questions as clearly and concisely as possible:

  • What business are we in?
  • What does our business do?

Step 3: Market Analysis

In this section, provide evidence that you have surveyed and understand the current marketplace, and that your product or service satisfies a niche in the market. To do so, answer these questions:

  • Who is our customer? 
  • What does that customer value?

Step 4: Competitive Analysis

In many cases, a business plan proposes not a brand-new (or even market-disrupting) venture, but a more competitive version — whether via features, pricing, integrations, etc. — than what is currently available. In this section, answer the following questions to show that your product or service stands to outpace competitors:

  • Who is the competition? 
  • What do they do best? 
  • What is our unique value proposition?

Step 5: Description of Organizational Management

In this section, write an overview of the team members and other key personnel who are integral to success. List roles and responsibilities, and if possible, note the hierarchy or team structure.

Step 6: Description of Products or Services

In this section, clearly define your product or service, as well as all the effort and resources that go into producing it. The strength of your product largely defines the success of your business, so it’s imperative that you take time to test and refine the product before launching into marketing, sales, or funding details.

Questions to answer in this section are as follows:

  • What is the product or service?
  • How do we produce it, and what resources are necessary for production?

Step 7: Marketing Plan

In this section, define the marketing strategy for your product or service. This doesn’t need to be as fleshed out as a full marketing plan , but it should answer basic questions, such as the following:

  • Who is the target market (if different from existing customer base)?
  • What channels will you use to reach your target market?
  • What resources does your marketing strategy require, and do you have access to them?
  • If possible, do you have a rough estimate of timeline and budget?
  • How will you measure success?

Step 8: Sales Plan

Write an overview of the sales strategy, including the priorities of each cycle, steps to achieve these goals, and metrics for success. For the purposes of a business plan, this section does not need to be a comprehensive, in-depth sales plan , but can simply outline the high-level objectives and strategies of your sales efforts. 

Start by answering the following questions:

  • What is the sales strategy?
  • What are the tools and tactics you will use to achieve your goals?
  • What are the potential obstacles, and how will you overcome them?
  • What is the timeline for sales and turning a profit?
  • What are the metrics of success?

Step 9: Funding Details (or Request for Funding)

This section is one of the most critical parts of your business plan, particularly if you are sharing it with investors. You do not need to provide a full financial plan, but you should be able to answer the following questions:

  • How much capital do you currently have? How much capital do you need?
  • How will you grow the team (onboarding, team structure, training and development)?
  • What are your physical needs and constraints (space, equipment, etc.)?

Step 10: Financial Projections

Apart from the fundraising analysis, investors like to see thought-out financial projections for the future. As discussed earlier, depending on the scope and stage of your business, this could be anywhere from one to five years. 

While these projections won’t be exact — and will need to be somewhat flexible — you should be able to gauge the following:

  • How and when will the company first generate a profit?
  • How will the company maintain profit thereafter?

Business Plan Template

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

This basic business plan template has space for all the traditional elements: an executive summary, product or service details, target audience, marketing and sales strategies, etc. In the finances sections, input your baseline numbers, and the template will automatically calculate projections for sales forecasting, financial statements, and more.

For templates tailored to more specific needs, visit this business plan template roundup or download a fill-in-the-blank business plan template to make things easy. 

If you are looking for a particular template by file type, visit our pages dedicated exclusively to Microsoft Excel , Microsoft Word , and Adobe PDF business plan templates.

How to Write a Simple Business Plan

A simple business plan is a streamlined, lightweight version of the large, traditional model. As opposed to a one-page business plan , which communicates high-level information for quick overviews (such as a stakeholder presentation), a simple business plan can exceed one page.

Below are the steps for creating a generic simple business plan, which are reflected in the template below .

  • Write the Executive Summary This section is the same as in the traditional business plan — simply offer an overview of what’s in the business plan, the prospect or core offering, and the short- and long-term goals of the company. 
  • Add a Company Overview Document the larger company mission and vision. 
  • Provide the Problem and Solution In straightforward terms, define the problem you are attempting to solve with your product or service and how your company will attempt to do it. Think of this section as the gap in the market you are attempting to close.
  • Identify the Target Market Who is your company (and its products or services) attempting to reach? If possible, briefly define your buyer personas .
  • Write About the Competition In this section, demonstrate your knowledge of the market by listing the current competitors and outlining your competitive advantage.
  • Describe Your Product or Service Offerings Get down to brass tacks and define your product or service. What exactly are you selling?
  • Outline Your Marketing Tactics Without getting into too much detail, describe your planned marketing initiatives.
  • Add a Timeline and the Metrics You Will Use to Measure Success Offer a rough timeline, including milestones and key performance indicators (KPIs) that you will use to measure your progress.
  • Include Your Financial Forecasts Write an overview of your financial plan that demonstrates you have done your research and adequate modeling. You can also list key assumptions that go into this forecasting. 
  • Identify Your Financing Needs This section is where you will make your funding request. Based on everything in the business plan, list your proposed sources of funding, as well as how you will use it.

Simple Business Plan Template

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

Use this simple business plan template to outline each aspect of your organization, including information about financing and opportunities to seek out further funding. This template is completely customizable to fit the needs of any business, whether it’s a startup or large company.

Read our article offering free simple business plan templates or free 30-60-90-day business plan templates to find more tailored options. You can also explore our collection of one page business templates . 

How to Write a Business Plan for a Lean Startup

A Lean startup business plan is a more Agile approach to a traditional version. The plan focuses more on activities, processes, and relationships (and maintains flexibility in all aspects), rather than on concrete deliverables and timelines.

While there is some overlap between a traditional and a Lean business plan, you can write a Lean plan by following the steps below:

  • Add Your Value Proposition Take a streamlined approach to describing your product or service. What is the unique value your startup aims to deliver to customers? Make sure the team is aligned on the core offering and that you can state it in clear, simple language.
  • List Your Key Partners List any other businesses you will work with to realize your vision, including external vendors, suppliers, and partners. This section demonstrates that you have thoughtfully considered the resources you can provide internally, identified areas for external assistance, and conducted research to find alternatives.
  • Note the Key Activities Describe the key activities of your business, including sourcing, production, marketing, distribution channels, and customer relationships.
  • Include Your Key Resources List the critical resources — including personnel, equipment, space, and intellectual property — that will enable you to deliver your unique value.
  • Identify Your Customer Relationships and Channels In this section, document how you will reach and build relationships with customers. Provide a high-level map of the customer experience from start to finish, including the spaces in which you will interact with the customer (online, retail, etc.). 
  • Detail Your Marketing Channels Describe the marketing methods and communication platforms you will use to identify and nurture your relationships with customers. These could be email, advertising, social media, etc.
  • Explain the Cost Structure This section is especially necessary in the early stages of a business. Will you prioritize maximizing value or keeping costs low? List the foundational startup costs and how you will move toward profit over time.
  • Share Your Revenue Streams Over time, how will the company make money? Include both the direct product or service purchase, as well as secondary sources of revenue, such as subscriptions, selling advertising space, fundraising, etc.

Lean Business Plan Template for Startups

Lean Business Plan Templates for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

Startup leaders can use this Lean business plan template to relay the most critical information from a traditional plan. You’ll find all the sections listed above, including spaces for industry and product overviews, cost structure and sources of revenue, and key metrics, and a timeline. The template is completely customizable, so you can edit it to suit the objectives of your Lean startups.

See our wide variety of  startup business plan templates for more options.

How to Write a Business Plan for a Loan

A business plan for a loan, often called a loan proposal , includes many of the same aspects of a traditional business plan, as well as additional financial documents, such as a credit history, a loan request, and a loan repayment plan.

In addition, you may be asked to include personal and business financial statements, a form of collateral, and equity investment information.

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

Outside of including all the key details in your business plan, you have several options to elevate the document for the highest chance of winning funding and other resources. Follow these tips from experts:.

  • Keep It Simple: Avner Brodsky , the Co-Founder and CEO of Lezgo Limited, an online marketing company, uses the acronym KISS (keep it short and simple) as a variation on this idea. “The business plan is not a college thesis,” he says. “Just focus on providing the essential information.”
  • Do Adequate Research: Michael Dean, the Co-Founder of Pool Research , encourages business leaders to “invest time in research, both internal and external (market, finance, legal etc.). Avoid being overly ambitious or presumptive. Instead, keep everything objective, balanced, and accurate.” Your plan needs to stand on its own, and you must have the data to back up any claims or forecasting you make. As Brodsky explains, “Your business needs to be grounded on the realities of the market in your chosen location. Get the most recent data from authoritative sources so that the figures are vetted by experts and are reliable.”
  • Set Clear Goals: Make sure your plan includes clear, time-based goals. “Short-term goals are key to momentum growth and are especially important to identify for new businesses,” advises Dean.
  • Know (and Address) Your Weaknesses: “This awareness sets you up to overcome your weak points much quicker than waiting for them to arise,” shares Dean. Brodsky recommends performing a full SWOT analysis to identify your weaknesses, too. “Your business will fare better with self-knowledge, which will help you better define the mission of your business, as well as the strategies you will choose to achieve your objectives,” he adds.
  • Seek Peer or Mentor Review: “Ask for feedback on your drafts and for areas to improve,” advises Brodsky. “When your mind is filled with dreams for your business, sometimes it is an outsider who can tell you what you’re missing and will save your business from being a product of whimsy.”

Outside of these more practical tips, the language you use is also important and may make or break your business plan.

Shaun Heng, VP of Operations at Coin Market Cap , gives the following advice on the writing, “Your business plan is your sales pitch to an investor. And as with any sales pitch, you need to strike the right tone and hit a few emotional chords. This is a little tricky in a business plan, because you also need to be formal and matter-of-fact. But you can still impress by weaving in descriptive language and saying things in a more elegant way.

“A great way to do this is by expanding your vocabulary, avoiding word repetition, and using business language. Instead of saying that something ‘will bring in as many customers as possible,’ try saying ‘will garner the largest possible market segment.’ Elevate your writing with precise descriptive words and you'll impress even the busiest investor.”

Additionally, Dean recommends that you “stay consistent and concise by keeping your tone and style steady throughout, and your language clear and precise. Include only what is 100 percent necessary.”

Resources for Writing a Business Plan

While a template provides a great outline of what to include in a business plan, a live document or more robust program can provide additional functionality, visibility, and real-time updates. The U.S. Small Business Association also curates resources for writing a business plan.

Additionally, you can use business plan software to house data, attach documentation, and share information with stakeholders. Popular options include LivePlan, Enloop, BizPlanner, PlanGuru, and iPlanner.

How a Business Plan Helps to Grow Your Business

A business plan — both the exercise of creating one and the document — can grow your business by helping you to refine your product, target audience, sales plan, identify opportunities, secure funding, and build new partnerships. 

Outside of these immediate returns, writing a business plan is a useful exercise in that it forces you to research the market, which prompts you to forge your unique value proposition and identify ways to beat the competition. Doing so will also help you build (and keep you accountable to) attainable financial and product milestones. And down the line, it will serve as a welcome guide as hurdles inevitably arise.

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The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

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How to Choose the Right Business Location 10 Factors You Should Know

Business Startup Checklist

Free Business Startup Checklist

Ayush Jalan

  • December 12, 2023

How to Choose the Right Business Location 10 Factors You Should Know

Choosing a business location is one of the key decisions you’ll have to make as an entrepreneur. Doing so shouldn’t be based on a personal whim but rather on a detailed understanding of your needs and limits. To do this, you need to understand how you can choose the right location.

In this article, we’ll see how to pick the right location for your business, and the factors that influence your decision.

Why is it important to choose the right business location?

You’ll need to make a strategic decision regarding the state, city, and neighborhood where your business will be located in order to select the right taxes, zoning laws, and regulations. It also affects the factors that influence your operations, profitability, scalability, expenses, etc.

A well-planned location can help you increase your market share , reduce labor and raw material costs, minimize risk, and take advantage of local laws and policies.

“The precept that location is key to the success of a business applies to art, and even to life itself: we thrive or wither depending on how nourishing our environment is.” – Yann Martel

How to pick the right location for your business

Picking the right business location depends greatly on what you want that location to do for you.

How to pick right location

Asking the following question can be a great start to conducting your location analysis:

  • What is the size of your future shop or office?
  • What are your infrastructure requirements? Are you looking for a place to set up shop or to build your own office?
  • What’s your budget to set up the new location?
  • Do you need to be closer to a particular supplier for raw materials?

Depending on your business, your requirements will vary. Once you’ve identified your company needs, look at the factors that affect your business location to get a better idea of your options.

Factors influencing business location

Several factors determine how your business functions and sustains itself. These are some of them you should consider before picking your business location:

1. Proximity to target customers

Find where you target audience is

In most cases, it pays to be in a location where there’s a high demand for your product. However, depending on your business type, you can decide whether you need to be near your target customers.

For instance, if you’re planning to start a restaurant , it might be more profitable to be in an urban locality where people eat out frequently. Conversely, if you plan on starting a manufacturing business , being close to your target customers might not be a priority.

Regardless of your business type, your proximity to your customers becomes more significant if:

  • Your product life cycle is short
  • Your transportation cost is high
  • Your products are fragile
  • Your products require after-sales services

2. Competitors’ location

Picking a location closer to a competitor can impact your business in many ways. Done wisely, it can even turn out to be a good strategy.

If your products have a competitive advantage , setting up a shop near your competitors can work in your favor. Not only can you capture their market share, but also provide your customers with a sense of choice.

Here are the benefits of setting up your business near a competitor:

  • Healthy competition will fuel innovation.
  • You can leverage your competitors’ marketing strategies for your benefit. Since they have already pulled in customers to the area, you don’t have to spend a lot on advertising yourself.
  • Being close to your competitors allows you to strategize better and understand what works and what doesn’t in the market.
  • If you happen to build a good relationship with your competitor, you can even collaborate with them.

If you’re afraid that your competitors’ offerings may outperform yours, you may choose other locations that will place you in the center of the market.

3. Talent acquisition

Find a right Talent

It’s not just customers and suppliers you need to worry about when picking a location; you also need to consider your recruitment needs.

If you plan to build a team, you need to check the following:

  • Are there enough talented workers in the area you can hire?
  • Does the location have good transportation and other facilities?
  • Will the location help boost your staff’s productivity?
  • How far is the location from the nearest residential area?
  • Will you be reimbursing your staff’s travel expenses?

4. Operating and other costs

The location of your business will greatly influence the expenses you will have to incur.

Some of those expenses to look out for are:

  • Transportation of raw materials
  • Product delivery
  • Inventory costs
  • Parking fees
  • Labor costs
  • Electricity costs
  • Water costs

Try cutting your taxes

There are a variety of taxes you would have to pay once you’ve set up your business. These vary depending on state and location. Moreover, some areas favor particular industries, creating favorable tax conditions. So, it’s essential to consider the same before deciding on the location of your business.

A few of the commonly levied taxes on businesses are:

  • Property tax
  • Corporate tax

6. Government incentives

Find a Government Incentive program

Most young entrepreneurs are constantly on the lookout for funding and support. The good news is that some local and state governments do offer help. This can be in the form of financial incentives, business grants , low-interest loans, tax relaxations, and other benefits.

Make sure to research these before you lock your decision.

Some websites where you can find relevant info are:

  • U.S. Chamber of Commerce
  • U.S. Small Business Administration
  • USA Government

7. Government laws and policies

Converse to the last point, there could be several government laws and policies that may restrict or negatively impact your business activities. Make sure to consider these before finalizing your business location.

Some of the aspects you should look into are:

  • Licenses and permits
  • Labor and employment laws
  • Trade barriers
  • Building codes
  • Environmental regulations
  • Advertising regulations

8. Local zoning ordinances

Local authorities have fixed rules and regulations regarding land usage—these laws are called zoning ordinances. Check if your plans of using and modifying the property comply with local laws to avoid running into problems later down the line.

Some locations have laws that deny permits for specific industries or restrict certain business activities. So, verify with the local municipal corporations or similar authorities to ensure you’re allowed to do business in that location.

9. Local community

Local community

While opening your business, it’s crucial to consider the impact of the local community on your business.

Asking the below questions might help you to choose the right business location:

  • Is the community welcoming of small businesses?
  • Does your business benefit the community in any way?
  • Are the local values compatible with your company’s values?
  • Will you be able to foster long-term relationships with the community ?

10. Safety and security

Feeling safe and conducting your business without any disturbances is critical.

Inquire about the following while looking for a location:

  • Is the crime rate in the area high?
  • How well is the policing system enforced?
  • Is there a danger of theft or burglary? Will your inventory be secure?
  • Is it a safe place for you and your employees?
  • Will you need to upgrade the property to safeguard your business?

Choose the right location for your business

Choose the right location for your business

Going through a myriad of business location ideas can often cause decision fatigue due to the irreversibility of the action. However, you can increase your chances of success by evaluating your options via extensive research.

Examine the above factors to analyze your compatibility with your desired location and identify potential fits to check if it’s viable. Make sure to take your time to avoid making the wrong investment. You can even consider hiring an advisor to choose the right business location.

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  • Business Intelligence

4 Factors to Consider During Business Location Analysis

  • On Jan 25, 2021

Site Selection

A business’ location can have a massive impact on its success. There are a number of different factors involved when determining the optimal placement of an organization, and it can be overwhelming for many entrepreneurs.

This is why proper business location analysis is so important. When done right, this process takes the guesswork out the equation and allows you to make an informed decision.

In this post, we’ll cover what exactly location analysis is and the four main factors you’ll need to consider when selecting a site for your business.

Map Location Data

What is Business Location Analysis?

Business location analysis is the process of gathering and analyzing data in order to assess the suitability of a site, or multiple sites, for a particular business. This is also known as site selection.

Every business is different. The formula will change depending on whether your business is a retail store or an office, operates in the private sector or public sector, etc.

You’ll need to assess your unique needs, as well as the needs of your customers, to find the most ideal location.

The 4 Most Important Factors During Business Location Analysis

While the needs of each business differ, there are several factors that every organization will need to consider when performing site selection analysis:

Demographic Boundary Map

Demographic Map using Geographic Boundaries

1. Demographic Analysis

Perhaps the most important part of analyzing a proposed site is establishing what type of population surrounds it. This is especially true for businesses that depend on foot traffic, as well as service-based businesses.

When assessing a location you’ll want to know the following demographic information:

  • Population: How many people live nearby? More people close to your business usually means a larger customer base to draw upon.
  • Income: What’s the average income of the area? If you sell higher-priced goods and services you’ll want to choose an area with a population that can afford them.
  • Age: What’s the average age of people living in the area? If your business is geared towards younger or older people this is a major consideration.
  • Education Levels: What’s the average level of education in the area? Depending on your ideal customer you may prefer somewhere that has higher or lower levels of education.

Interactive mapping software, like Maptive, allows you to plot demographic data on a map, making it easy to analyze the demographics of an area. Decide what type of customers you’re looking to target and then find an area with a higher percentage of those types of people.

Excel Heat Maps

Heat Mapping of Customer or Competitor Data

2. Competitive Analysis

An area might feature the right kinds of demographics, but if it’s filled with competing businesses then it’s likely not the best choice. 

If you move to an area with too many competitors you’ll end up fighting over the same customers. Instead, you want to find underserved markets. That way there will be more demand for your products and services.

The easiest way to do this is to plot the locations of your competitors on a map and use radii to identify their service areas. Are there any locations not served by your competitors? Are there any sites that provide you with a competitive advantage? Take a closer look at those areas to see if any of them meet your other criteria.

3. Growth Analysis

Where do you see your organization in five years? Make sure to factor this in when analyzing a location. A site might seem great now, but will it still be suitable when your business expands?

Analyze your business data and come up with some predictions for your organization going forward. This includes things like staff, logistics, and resources. Based on this, decide what your needs are now as well as in the future.

You don’t want to be paying for space you don’t need, but you also don’t want to run out of room in a year and have to move again. Try to find a site that will be able to accommodate your growing needs for at least three to five years.

Mapping with Multiple Radii

Radius Maps for Logistical Planning

4. Site Economics & Logistics

When you’re looking for a potential location you need to have a budget in place. A site might seem perfect for your business, but if the economics don’t make sense you’ll never be profitable.

Here are some questions you need to ask yourself:

  • Are you looking to buy or rent?
  • What’s the maximum rent/mortgage payment you can afford per month?
  • Does the location require any renovations or modifications before you use it?
  • What type of lease is being offered? Will you be responsible for maintenance and repairs?
  • What are the local taxes?
  • Are there enough people/potential customers in the area to support your business?
  • How far is the location from distribution centers or suppliers?

There are a number of costs and expenses that are easy to overlook, so make sure to do a full financial analysis on a site before making a decision. 

Business location analysis may seem complicated, but if you know what to look for the process becomes much easier.  And if you’re looking for an effective location analysis tool, Maptive’s interactive mapping software provides a wide range of features that will help you identify the best sites for your organization.

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How to Write a Business Plan: Target Market Analysis

The Business Plan and the Importance of Defining Your Target Market

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

location in business plan sample

Conducting a Market Analysis

Polling your target market, writing the market analysis, online tools for market research, u.s. online market research sources, canadian online market research, local sources of market research, doing your own market research.

 Creative Commons CC0

The market analysis is basically the target market section of your business plan . It is a thorough examination of the ideal people to whom you intend to sell your products or services.  

Even if you intend on selling a product or service only in your community, you won't be selling that service to everyone who lives there. Knowing exactly what type(s) of people might be interested in buying your product or service and how many of them reside in your projected area or region is fundamental in creating your market analysis.

Once target market data has been established, you'll also work on sales projections within specific time frames, as well as how prospective sales might be affected by trends and policies.

Research is key and cornerstone of any solid  business plan .

Don't Skip This Step!

Don't skip market research; otherwise, you could end up starting a business that doesn't have a paying market.

Use these general terms as linchpins in research data for the market analysis section of your business plan, and to identify your target market:

But don't stop here. To succinctly define your target market, poll or survey members of your prospective clients or customers to ask specific questions directly related to your products or services. For instance, if you plan to sell computer-related services, ask questions relating to the number of computing devices your prospective customers own and how often they require servicing. If you plan on selling garden furniture and accessories, ask what kinds of garden furniture or accessories your potential customers have bought in the past, how often, and what they expect to buy within the next one, three, and five years.

Answers to these and other questions related to your market are to help you understand your market potential.

The goal of the information you collect is to help you project how much of your product or service you'll be able to sell. Review these important questions you need to try to answer using the data you collect:

  • What proportion of your target market has used a product similar to yours before?
  • How much of your product or service might your target market buy? (Estimate this in gross sales and/or in units of product/service sold.)
  • What proportion of your target market might be repeat customers?
  • How might your target market be affected by demographic shifts?
  • How might your target market be affected by economic events (e.g. a local mill closing or a big-box retailer opening locally)?
  • How might your target market be affected by larger socio-economic trends?
  • How might your target market be affected by government policies (e.g. new bylaws or changes in taxes)?

One purpose of the market analysis is to ensure you have a viable business idea.

Find Your Buying Market

Use your market research to make sure people don't just like your business idea, but they're also willing to pay for it.

If you have information suggesting that you have a large enough market to sustain your business goals, write the market analysis in the form of several short paragraphs using appropriate headings for each. If you have several target markets, you may want to number each. 

Sections of your market analysis should include:

  • Industry Description and Outlook
  • Target Market
  • Market Research Results
  • Competitive Analysis

Remember to properly cite your sources of information within the body of your market analysis as you write it. You and other readers of your business plan, such as potential investors, will need to know the sources of the statistics or opinions that you've gathered.

There are several online resources to learn if your business idea is something worth pursing, including:

  • Keyword searches can give you an overall sense of potential demand for your product or service based on the number of searches.
  • Google Trends analysis can tell you how the number of searches has changed over time.
  • Social media campaigns can give you an indication of the potential customer interest in your business idea.

The U.S. Small Business Administration (SBA) has information on doing your market research and analysis , as well as a list of free small business data and trends resources you can use to conduct your research. Consider these sources for data collection:

  • SBA  Business Data and Statistics  
  • The U.S. Census Bureau maintains a huge database of demographic information that is searchable by state, county, city/town, or zip code using its census data tool . Community, housing, economic, and population surveys are also available.
  • The U.S. Department of Commerce Bureau of Economic Analysis (BEA) has extensive statistics on the economy including consumer income/spending/consumption, business activity, GDP, and more, all of which are searchable by location.

The Government of Canada offers a guide on doing market research and tips for understanding the data you collect. Canadian data resources include:

  • Statistics Canada  offers demographic and economic data.
  • The  Business Development Bank of Canada (BDC)  offers market research and consulting with industry experts.
  • The Canada Business Network provides business information to entrepreneurs by province/territory, including market research data.

There are also a great many local resources for building target market information to explore, including:

  • Local library
  • Local Chamber of Commerce
  • Board of Trade
  • Economic Development Centre
  • Local government agent's office
  • Provincial business ministry
  • Local phone book

All of these will have information helpful in defining your target market and providing insights into trends.

The above resources are secondary sources of information, in which others have collected and compiled the data. To get specific information about your business, consider conducting your own market research . For instance, you might want to design a questionnaire and survey your target market to learn more about their habits and preferences relating to your product or service.

Market research is time-consuming but is an important step in affording your business plan validity. If you don't have the time or the research skills to thoroughly define your target market yourself, hiring a person or firm to do the research for you can be a wise investment.​

Small Business Administration. " Market Research and Competitive Analysis. " Accessed Jan. 13, 2020.

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“In business, wrong location leads to suffocation.” - Mokokoma Mokhonoana

For businesses, whether big or small, location is crucially important. Business location not only affects a company's costs and revenue as well as its ability to serve the customer. Getting the wrong location can have serious consequences for the business. In this article, you will learn what makes a good business location and how to set up a location strategy to ensure success.

Definition of business location

First, let's find out what a business location is and why it is important for a business.

Business location is defined as a place or structure occupied by a firm to run its operations. This includes any structure or establishment used in conducting a business.

Starbucks places its coffee houses in high-street, high-visibility locations in various settings, including downtown and suburban areas. You can also find Starbucks in office buildings, university campuses, and off-street highway locations. 1

A good business location aims to provide an advantage to your business by creating a balance among:

Operational costs (the daily costs incurred to run your business),

Potential revenue

Target customers.

Some examples of good business locations include the M4 corridor for tech companies, tourist attractions for hotel businesses, and the city centre for coffee shops.

Business location factors

Factors influencing the choice of a business location can be split into:

Supply factors

Demand factors

Business location, Factors that influence business location choices, StudySmarter

1. Supply factors

Supply factors examine the cost of running your business operations in a location. Some of these supply factors include:

Labour - The cost of employing labour to carry out the same task differs according to location. An excessive presence of labour in a particular location can increase the cost of employment, as opposed to a location with little available labour.

Land c ost - Due to rentals or outright purchases, land cost varies among different locations. The facilities provided after rentals/purchase or development can also affect land costs.

Non-financial factors - Non-financial factors like political stability, language, social amenities, and governmental support can influence the choice and cost of hiring a business location.

Energy c ost - The cost of energy varies among countries, types of business production and the number of employees hired. For example, the energy costs in the UK are different from those in Germany.

Transportation c ost - This includes the cost of transporting raw materials, stocks, finished products, and other necessary business input from/to a business location. It is necessary that a business location be close to its raw materials or services supply to reduce transportation costs. An example of this is the food processing industry, where business locations are usually close to the farm.

2. Demand factors

Demand factors affect services provided to your customers and your business revenue. These include:

Skilled labour - Businesses prefer locations where the right expertise can be found. An example is an M4 corridor in the UK which houses the majority of the UK technology sector.

Location suitability - Some businesses perform better in a certain environment. For example, in the hospitality sector, hotels are usually found in popular tourist attractions.

Customer ease - A business has to be located where its customers will have ease of access to its products or services. For example, a coffee shop creates ease through its location in the city centre.

Future expansion - A location that doesn’t provide the flexibility for future expansion might not provide a good business location. An example is a manufacturing business that has a lot of potential for growth and expansion. Choosing a larger venue in the beginning will give the business more flexibility to expand its facility later.

Importance of business location

Choosing the right business location is vital to business operations and success. Here are some key benefits of a good business location:

Attract and retain workers with the required skills and talent.

Provide a balance between business costs and business revenues.

Offer the necessary infrastructure for your business growth . These infrastructures include a good transport system, gas pipes, and road networks.

Position your business to fully benefit from government policies, grants, or loans.

Ensure the smooth running of your business operations.

Provide an ideal location to get enough traffic for your business or to keep your business confidential.

Business location strategy

A business location strategy is a plan used to find the best location for your business to reach its goals and objectives. A good business location strategy usually involves location analysis.

Business location analysis is a process wherein a business compares different locations' characteristics in order to select the most suitable location. Here is what is included in such an analysis:

1. Demographic analysis

This considers the population of a location. It takes into account the population's average age, age composition, income, skill level, education level, and occupation, as well as regional governance.

2. Location area analysis

This type of analysis considers the potential areas that will provide the most customers to your business. It also analyses the ease with which these customers can reach your business location.

3. Competition analysis

This examines the presence of competitors in the chosen business locations, especially in terms of strengths and weaknesses.

4. Traffic analysis

This analysis compares the number of people passing your different business locations during working hours. These include both automobile and foot traffic. The goal is to find a location that will provide your business with the greatest exposure.

5. Economics of location analysis

The analysis aims to reduce the cost of operations and investment for your business. Operational costs are those involved in the daily running of your business.

In conclusion, a good location is essential for the growth and success of your business. The ideal business location should provide the least risk, low operational costs, a big market presence, and less competition. It should also provide your business with advantages to help achieve your business goals.

Business location - Key takeaways

  • A business location is defined as a place or structure occupied by a firm to run its operations. This includes any structure or establishment used in conducting a business.
  • Business operational cost - the daily costs incurred to run your business

Target customers

Business location factors that influence the choice of a business location can be broadly grouped into:

A business location strategy is a plan used to find the best location for your business to reach its goals and objectives.

Business location analysis is a process wherein businesses compare different location characteristics in order to select the location best suited to your business.

1. Nithin Geereddy, Strategic Analysis Of Starbucks Corporation, Scholar Harvard Education, 2013.

2. Staff, 10 Reasons Why Location is Important in Business, rovva.com , 2022.

3. Staff, Factors to Consider When Choosing a Business Location , businesstown.com , 2022.

4. Matt D'Angelo, Tips on Choosing The Right Location for Your Business, businessnewsdaily.com , 2021.

5. Alex Saez, The Key Features of an E-Business, smallbusiness.chron.com , 2022.

Frequently Asked Questions about Business Location

--> what is a business location.

A business location is defined as a place or structure occupied by a firm to run its operations. This includes any structure or establishment used in conducting a business.  

--> Why is location important for a business?

Choosing the right business location is vital to business operations and success.  A good location helps to :

Attract and retain workers with the required skills and talent. 

Provide a balance between business costs and business revenues. 

Offer the necessary infrastructure for your business growth. These infrastructures include a good transport system, gas pipes, and road networks.  

Position your business to fully benefit from government policies, grants, or loans. 

Ensure the smooth running of your business operations. 

Provide an ideal location to get enough traffic for your business or to keep your business confidential. 

--> What is a good location for a business? 

A good business location aims to provide an advantage to your business by creating a balance of the following: 

--> What are factors to consider when locating a business? 

Business location factors that influence the choice of a business location can be broadly grouped into: 

Supply factors 

Demand factors 

The supply factors include labour, land cost, non-financial factors, energy cost, and transportation cost.

The demand factors include skilled labour, location sustainability, customer ease, and future expansion.

--> What are examples of good business location?

Starbucks places its coffee houses in high-street, high-visibility locations in various settings, including downtown and suburban areas. You can also find Starbucks in office buildings, university campuses, and off-street highway locations. 

Test your knowledge with multiple choice flashcards

Which of these is/are correct 

Skilled labour, _______, customer ease, and future expansion are examples of demand factors influencing business location choices. 

In the hospitality sector, hotels are usually found in popular tourist attractions. This is an example of which factor influences business location choices?

Your score:

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Define business location

Business location is defined as a place or structure occupied by a firm to run its operations. This includes any structure or establishment used in conducting a business. 

Market advantage provided by a good business location to businesses includes

Market advantages provided by good business location good business locations include - 

Reducing a business operational cost 

Boosting potential revenue that can be generated,

Bringing customers the business operations are targeting. 

Give three examples of good business locations 

Examples of good business locations include the M4 corridor for Technology business, a tourist attracting location for hospitality business, and a city centre for a coffee shop. 

What are the factors that influence choice of business location?

The factors include labour, future expansion, location sustainability, transportation cost, land cost, customer ease and energy cost. 

What do the demand factors examine?

Demand factors examine factors that affect services provided to your customers, and your business revenues.

Factors examined by the supply factor are?

Labour cost, energy cost, land cost, transportation cost, non-financial factors 

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Business Location Analysis: Definition, Objectives, Factors

Business Location Analysis: Definition, Objectives, Factors

Location refers to the choice of region and the selection of a particular site for setting up a business or factory.

But the choice is made only after considering the cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken.

If at all changed only at considerable loss, the location should be selected as per its requirements and circumstances. Each plant is a case in itself.

A business person should try to attempt at the optimum or ideal location. An ideal location is one where the cost of the product is kept to a minimum, with a large market share, the least risk, and the maximum social gain.

It is the place of maximum net advantage or which gives the lowest unit cost of production and distribution, for achieving this objective, this purpose.

What is Business Location Analysis?

Location analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites to select the best site for a given enterprise.

It consists of the following:

Business Location Analysis

Demographic Analysis

It involves the study of population in the area in terms of total population (in no.), age composition, per capita income, educational level, occupational structure, etc.

Trade Area Analysis

It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites.

Competitive Analysis

It helps to judge the nature, location, size, and quality of competition in a given trade area.

Traffic Analysis

To have a rough idea about the number of potential customers passing by the proposed site during the working hours of the shop, the traffic analysis aims at judging the alternative sites in terms of pedestrian and vehicular traffic passing a site.

Site Economics

Alternative sites are evaluated in terms of establishment costs and operational costs under this.

Costs of the establishment are the cost incurred for permanent physical facilities. Still, operational costs are incurred for running a business on day to day basis, they are also called as running costs.

Objectives of Business Location Analysis

Objectives Of Business Location

The location of a business must be decided to keep in mind the following objectives:

To hold minimum investment and operational cost

The foremost objective in selecting an ideal location is to ensure minimum investment and lower operational costs.

This could be achieved if the business is located in a place where raw materials, labor, transport, and power are easily, regularly, and sufficiently available.

To ensure the smooth operation of the business.

Another objective of the ideal location is to ensure the smooth operation of the business.

This could be achieved if the business is located in a place where the services of banking , communication , transport, repairs, and maintenance are available easily and regularly.

To promote employee welfare.

If the business is located where the educational recreational, medical, and religious needs of employees are met, they will certainly feel attached to the enterprise. They would develop loyalty and commitment to it.

To co-ordinate with Government Policies.

The entrepreneur , while selecting a location, must ensure that his decision does not conflict with the government policy of balanced regional development.

Factors To Be Considered In Selecting A Business Location

Factors to be Considered in Selecting a Business Location

Selecting the ideal business location is guided by four main factors, namely:

Nature and Type of Business

The nature and type of your business is the single greatest determinant of where the business should be located. Businesses that rely on walk-in customers from the public are the most affected, the main ones being in the service industry .

If your business relies heavily on walk-in clients as opposed to businesses that prospect, then location is everything. Getting your location wrong can spell doom for your business.

In the restaurant business, for example, there are three “main” rules when setting up. These are “LOCATION, LOCATION, and LOCATION.”

This example underscores the importance of a great location for restaurants.

A study of McDonald’s reveals this to be true. Senior management at MacDonald’s will tell you that they are burger salespeople, but their business is real estate.

Therefore, businesses such as restaurants, supermarkets, liquor stores, Ice cream parlors, and the like must be located in easily accessible areas with high levels of human traffic.

In contrast, businesses such as law firms, accountants, software firms, and so forth, which do not rely on high levels of human traffic, can be located in posh offices within office blocks.

The amount of money you can afford to obtain premises must, of course, come into play. Most first time entrepreneurs will be renting due to budget constraints.

Always try and secure premises that provide the best value for your money, considering the nature of business.

Space required

Certain types of businesses require very large amounts of space.

For example, car dealerships and car rentals require a large space to park their vehicles. This may mean looking for an out of cheap town location.

Special facilities needed

Certain types of businesses require special facilities to carry out their business effectively. For example, IT companies have some very special mechanical, electrical, plumbing, and fire suppression requirements.

Server rooms and computer areas need dedicated cooling units. These must be taken into consideration before settling on a business location.

At one point, we may want to determine the size of the business . This helps in knowing whether it’s growing or not.

Also, you ascertain it to plan its various requirements. If you know the size of your firm , then you’re able to determine its efficiency. Any enterprise is the ether; small , medium or large size .

As you now covered business location analysis; check out explore complete guideline on entrepreneur and entrepreneurship studies and business studies .

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Business Location Example in a Business Plan

BizMove business management guides

Sample Business Plan Template; Business Plan Location Sample

by Meir Liraz

Here is an abbreviated example of a serious sample business plan examples templateproposal.

It is provided to give you a feeling for the style of writing that is used in a business plan, and is not intended to be a comprehensive guide of what should be covered in a good plan.

The humorous content of this business plan example is supplied only for the readers interest. For optimum effectiveness, care should be taken to minimize the humorous content in an actual proposal.

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Free Sample Business Plan Examples Table Of Contents

  • Statement of Funding Proceeds
  • Executive Summary
  • Description Of The Business

Marketing Strategy

  • Business Location

Licenses/Permits/Registrations

  • Insurance/Bonding/Employee Benefits

Financial Data

Statement Of Funding Proceeds

Children's World has developed a line of toys that are superior to all other products that exist on the market today. In order to service our identified target markets with these superior toys, significant capital infusion is required.

Specifically, the required $15,000,000 will be allocated appropriately to:

Marketing and Advertising $ 1,500,000

Salaries -0-

Facilities 50,000

Capital Equipment 450,000

Research and Development 1,000,000

Operational Expenses 2,000,000

Inventory 10,000,000

Total $15,000,000

Children's World is the major player in the global gift giving industry. Originally founded as a sole proprietorship in 1930, the marketing tactics employed by Children's World had grown to the level of being a family legend by 1940. Annual toy production of Children's World exceeded 86,000,000 units at this time, and major expansion plans were developed. However, due to a slight downturn in the global economy, these plans have been shelved as projected profit levels have fallen to a near break even point in 1993.

To revitalize the company, a rigorous program of research and development was undertaken in the early 1950's. The first major breakthrough of which is ready for production. To be able to make maximum use of our proprietary breakthrough technology, Children's World needs to upgrade its existing facilities, as well as reevaluate the company's sleigh delivery system It is anticipated that a late model Cessna Citation could be modified to meet the operating requirements of Children's World. In addition, several used cargo planes will need to be acquired to facilitate the development of large stockpiles of toys at strategic global locations. A central hub system is being considered.

Additional manufacturing upgrades are planned to facilitate the projected increases in manufacturing output. Some of the upgrades include the replacement of manual lathes with automated CNC machines, the installation of spray booths using the latest in electrostatic technology, computerized conveyor and sorting systems, and an upgrade in the Statistical Process Control (SPC) area of the Quality Assurance Department.

As can be seen, Children's World is now at a point where they need to seek outside funding to refurbish/renovate their production facilities, upgrade their global navigational equipment, establish a more visible image, and to establish an extensive line of credit to cover seasonal inventory expenses.

This loan will be backed by the full assets and inventory of the Children's World company. As the attached Balance Sheet indicates, these assets have a current valuation of $5,000,000. In addition, of the $15,000,000 requested, $10,450,000 will be spent on inventory and capital equipment which will also be used as collateral for the note. As the attached cash flows indicate, Children's World should be able to service the debt incurred by this loan application. It is anticipated that the Return On Investment (ROI) thrown off from this loan will be 200% adjusted on a yearly basis. Timing of the loan and the market entry of the product will be critical, however, with the maximum value occurring from a November entry. Business location example in a business plan

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Description Of The business

Our Mission at Children's World is: "To provide toys and games of exceptional quality, in a timely manner, priced at or below our competition, to enhance the profits of our company."

Children's World is a sole proprietorship that was founded in 1930. It is wholly owned by Mr. and Mrs. Sanford Theodore Clause. For the past 50 years, Children's World has experienced an increase in the public awareness of our year end close-out (where we give away surplus inventory). Because of this practice, the public has begun to think of us on a seasonal basis as a philanthropic organization.

To alleviate this problem, we have just completed the development phase of a novel and proprietary product line that will once again place Children's World in the minds of the public on a daily basis. By 1940, our operation had produced 86,000,000 toys, and has operated profitably ever since. However, revenue projections for fiscal year xxxx, without external funding for the introduction of this new product line, is expected to be down to a break even level ($1,100). With the funding for the renovations, advertising, and new product line our profits are expected to reach $30,000,000. Annual growth is projected to be 21% per year through the year 2100.

The "state of the art" of the industry today dictates that toys are produced without ever being touched by human hands. Our new revolutionary product line capitalizes on the fact that our toys have traditionally been hand built by our local elf community. Although our production methods are slow in comparison to other manufacturers, our quality levels are high while our costs are kept very modest.

This new product line incorporates a rare, refined essence (known only to our advanced Research And Development Dept.) that causes a strong attraction to be formed between the toy and the customer who first sees the toy. This essence is well known in the animal community. For instance, it is the reason why ducklings bond to the first animal they see after emerging from their shell (commonly called "imprinting"). These ducklings will not physically allow themselves to be separated, to any significant distance, from the "parent" animal for approximately six months.

After lengthy collaboration with the local duck community, and extensive field testing (test population will not be disclosed), our top notch R&D staff has been able to identify and synthesize the essence and increase its strength. When incorporated into our line of toys, this essence will create a bond between the recipient and the toy that will last for one full year! During this time, like the ducklings, the recipient who first sees the toy will not want to be separated from the toy to any significant distance (typically less than fifteen feet).

This instant "imprinting" at the time of viewing the toy had initially placed our R&D staff in a considerable quandary. To be effective and "imprint" on only the intended recipient, the entire channel of distribution must not be able to see the product. This enigma was eventually resolved by the decision to place the product in an opaque wrapper, bag, etc. that could be given to the intended recipient to be "opened". To prevent the early opening of the wrapper/bag, we have developed several colorful prints that can be placed on the opaque wrapper thereby lending it an attractive external appearance.

Compared to competitors products, the use of the "essence" will dramatically increase the recipients enjoyment of, and involvement with, our product line. Other significant refinements that our R&D staff has been able to develop are:

1. Gender Specific Essences. Using this innovation, a toy incorporating a female gender essence will bond most strongly with female recipients, and vice versa. This will help reduce the demand for pink and lavender trucks, baseball mitts, etc., and will dramatically reduce our internal manufacturing problems and inventory requirements.

2. Variable Time Factor Essences. This innovation will allow us to produce toys that have a "short" imprint time (30 - 90 days) for use when we need to spur sales, or a longer imprint time (up to 365 days) for a moderated sales level. We have found through extensive research that 330 days is optimal in that it allows for approximately one month of "de-imprinting" and subsequent anticipation build up among the recipients. Naturally, this will cause some friction among the family sub-units, but that can not be avoided if we are to develop a maximum market penetration.

Business plan example - The Market

The Children's World target market includes the pre-adolescent to young adult groups on a global scale. Using data supplied by the Bureau of the Census the total population of the world is estimated at 5,700,000,000. Of this basis group, we have conservatively placed our estimate of our total target market at slightly over 300 million customers. At the present time our sales are hovering at the 250,000,000 unit mark (up from 86,000,000 in 1940) giving us an 83.3% market share. We believe that the requested funding will allow us to increase this market share to roughly 95% over the next two years. This would increase our sales by an additional 35,000,000 units per year (see Appendix A for source information and calculations).

Our primary focus (and most of our extensive field testing) is on the 1-5 year old individual. Our products are gender specific, with male vs. female sales forecasts mirroring the population demographics. As our products gain acceptance within this market, we will move to expand into the teenage markets as this time frame is known for its friction between family sub-units. This will mask the effects of the "de-imprinting" irritations, and will aid us in minimizing any public disclosure (and competitor espionage) during the early phase of our market introduction.

All Children's World products are protected by the trademark and copyright laws, however we will not seek patent protection for the "essence" lines. Instead, we will keep these lines as a trade secret, thus preventing public disclosure and the subsequent possibility of legal entanglements from disgruntled parents, consumer activists, etc.

Initial responses from our market test customers indicate that our new lines are enjoying an excellent reaction. Inquiries from prospective customers suggest that there is considerable demand for these toys. Relationships with leading retailers, major accounts, and distributors substantiate the fitness of Children's World for considerable growth and accomplishment.

Competition

Although Children's World is a broad based manufacturing and transportation company, competitive threats today come primarily from other toy manufacturers. However, with 83.3% of the overall market, the competition does not play a significant role on company pricing/credit policies.

The major competitors that are facing Children's World are as follows:

Mattel, Inc. (Hawthorne, CA) Primarily a game manufacturer/marketer with sales of over $50,000,000/year.

Roadmaster Corp. (Olney, IL) Manufacturer of juvenile riding toys with sales of over $100,000,000/year.

Parker Brothers (Beverly, MA) Primarily a game manufacturer/marketer with sales of over $250,000,000/year.

Flexible Flyer Co. (West Point, MS) Manufacturer of juvenile riding toys with sales of over $50,000,000/year.

Tyco Toys, Inc. (Mount Laurel, NJ) Manufacturer of trucks/cars with sales of over $100,000,000/year.

Hasbro, Inc. (Pawtucket, RI) Primarily a game manufacturer/marketer with sales of over $50,000,000/year.

In spite of the competition in the toy industry, Children's World has continued to deliver a high quality, low cost product that is unique to this industry. In addition, our research indicates that our performance is superior to any other company on the market today.

The gift market is heavily seasonal, with the preponderance of sales coming late in the year. As stated in the "Background" section of the Business Description above, Children's World has experienced an increase in the public awareness of our year end close-out (where we give away surplus inventory). Because of this practice, the public has begun to think of us on a seasonal basis as a philanthropic organization.

It is our belief that we will be able to turn this mistaken perception around with the funds that we are seeking via this proposal. After all, in all comparisons Children's World's products provide more features and have superior performance than competitive products. In most cases, the difference in the number of features is substantial. A complete technical comparison is available upon request.

The "state of the art" of the industry today dictates that toys are produced without ever being touched by human hands. Our new revolutionary product line capitalizes on the fact that our toys have traditionally been hand built by our local elf community. Although our production methods are slow in comparison to other manufacturers, our quality levels are high while our costs are kept very modest. In addition, the exciting new breakthroughs that we have achieved in our R&D department (see the Description of the Business section above) will further increase the sales and usage of our products.

To get the most out of our marketing dollars, we have developed the following strategy for promoting our products:

Pricing and Profitability. Our pricing is tied to our philosophy of operating at a break even basis. However, because of both the past losses incurred in the toy giveaways, and to pay for the capital improvements outlined in this plan, we will increase our pricing in order to retire the newly incurred debt. We are projecting a first year net profit of $30,000,000 as the result of this project.

Selling Tactics. Consistent with previous years, preseason publicity outlining new merchandising concepts is utilized extensively to generate paid advertising participation from retailers and shopping centers world wide. This has worked well, and we have no plans to alter this strategy.

Distribution. Central pre-distribution hubs have now been established in each country. This concept permits faster delivery, without the need to return to the North Pole each time the sleigh needs restocking. This is the most cost effective procedure implemented by Children's World in the last 50 years.

Advertising and Promotion. Cooperative advertising funds are available to all participating retailers which leverages our national advertising exposure 400%. Proof of advertising activity from the participating merchant in the form of a paid invoice from the merchant and a tear sheet from the print media is required for final payment.

Public Relations . This activity has outgrown our in-house capabilities. Therefore, we have retained the services of an international public relations firm, Good, Better and Best, Inc., to coordinate those activities. The firm provides us their services at cost, as they benefit measurably through their visibility and association with Children's World .

Business Relationships. Children's World participates heavily in trade shows during the Summer months. This activity permits us to maximize our efforts and focus on the major retailers and buyers. Promotional activity by retailers may need to be reviewed in the near future, as seasonal promotion once targeted exclusively for December, has been pushed backward to Thanksgiving, and on occasion is now occurring as early as Halloween. This is a concern we are reviewing with our public relations firm.

Credit Terms. Standard credit terms will be offered to wholesalers/retailers (2% 10 net 30), while cash and checks will be accepted on the retail level.

Business Plan Examples - Business Location

The Children's World production facilities wholly owned and are located at 101 North Pole Lane, Arctic Circle, Earth. Due to the nature of the toy industry, and its propensity for industrial espionage, Children's World decided at an early stage that steps must be taken to isolate and camouflage their facilities. To date, their efforts have been largely successful, although a few close calls have been noted.

The facilities are debt free and are kept in good repair by the local elf community. To accommodate the planned product line expansion, only minor renovations (approximately $50,000) will be necessary as stated in the "Statement of Funding Proceeds" section above.

To safeguard both their new and existing product lines, Children's World respectfully declines to provide detailed information on this subject heading.

All licenses, and permits required for the continued operation of the company have been either secured, or renewed. Due to our location, our company is not affected by zoning regulations.

All Children's World products are already protected by the appropriate trademark and copyright filings. Children's World will not seek patent protection for the "essence" lines, however. Instead, we will keep these lines as a trade secret, thus preventing public disclosure and the subsequent possibility of legal entanglements from disgruntled parents, consumer activists, etc.

FAA certification and flight tests of all pilots and craft are both current and comprehensive, and are on file with the proper authorities.

Insurance/Employee Benefits

Due to the unique nature of their work force and the isolation of the environment, Children's World does not have to provide insurance for their employees. However, Children's World does have full property insurance as well as a general liability insurance policy for $1,000,000 per the requirements of most retailers.

Employee benefits include unlimited supplies of aspirin, nasal decongestants, as well as other cold related medicines. Regarding vacation leave, Children's World provides two weeks of paid vacation each year. The company also their employees with equipment, lift passes, etc. free of charge for skiing, snowmobiling, snowshoeing, etc. However, no vacations are permitted during the months of October through December due to production demands.

How we started

Children's World was founded in 1930 by Sanford Theodore Clause who recognized the entrepreneurial opportunities presented by the establishment of a charitable society. Through his efforts gift giving became more fashionable, particularly around the time of the Christian celebration of Christmas.

Management team

Our key management team consists of Mr. and Mrs. Clause whose backgrounds consist of almost 60 years of manufacturing and marketing experience. Our manufacturing team consists of over 300 well trained elf volunteers, each with at least 200 years of manufacturing, engineering and design experience.

A listing of our corporate organization is as follows:

Sanford T. Clause, President

Elizabeth M. Clause, Vice President, Henry J. Ticklebone, Director of Finance, Abagail B. Greenleaf, Director of Marketing Princely J. Rockafellow, Director of Sales, James A. Bronson, Director of Engineering, Jillaney P. Quackenmeyer, Director Research & Development' Jeremy C. McDougal, Director of Operations, Thistle P. Stickler, Corporate Attorney.

As stated above, the strength of Children's World management team stems from the combined expertise in both management and technical areas. This has produced outstanding results over the past 60 years.

The time honored leadership characteristics of Children's World's management team have resulted in broad and flexible goal setting -to meet the ever changing demands of the quickly moving marketplace requiring our products. This is evident when the team responds to situations requiring new and innovative capabilities.

The following are the summary job descriptions for the key officers of the Children's World organization:

Abagail B. Greenleaf, Director of Marketing ($100,000/year salary) Manage market planning, advertising, public relations, sales promotion, merchandising and facilitate staff services. Identifying new markets and corporate scope and market research. Identify foreign markets.

Princely J. Rockafellow, Director of Sales ($100,000/year salary) Manage field sales organization, territories and quotas. Manage sales office activities including customer/product support/service.

Henry J. Ticklebone, Director of Finance ($150,000/year salary) Management of working capital including receivables, inventory cash and marketable securities. Financial forecasting, including capital budget, cash budget, proforma financial statements, external financing requirements, financial condition requirements.

James A. Bronson, Director of Engineering ($85,000/year salary) Oversees product development including quality control, physical distribution, product and packaging design, new product development improvement, and improvements on existing products. Research and development.

Jeremy C. McDougal, Director of Operations ($175,000/year salary) Service, manufacturing, raw materials management and allocation.

Outside support

An outside Board of Advisors, including highly qualified business and industry professionals/experts from the elfin community, will assist our management team to make appropriate decisions and take the most effective action; however, they will not be responsible for management decisions.

At this time we do not forecast any need for extensive restructuring, and/or large scale hiring campaigns. Our expansion campaign will be able to be handled by our current staff of highly skilled employees.

Please see the attached financial projections including five years of historical financials, as well as a three year cash flow and income statement projection.

Other Topics in the 'Staring a Business' Section

  • Business Idea Feasibility Study
  • Starting a Business Checklist
  • Starting a Business Basics
  • What Business to Start
  • Starting the Business
  • Buying a Going Business
  • Buying a Franchise
  • Managing Your Business
  • Special Requirements
  • Making the Decision
  • Business Plan
  • Developing a Business Plan
  • Sample Business Plan
  • Planning a Business
  • Planning a Service Business
  • Planning a Home Business
  • Planning a Retail Business
  • Planning a Construction Business
  • Planning a Manufacturing Company
  • Starting a Small Business FAQ
  • The Legal Structure
  • Finding New Products
  • How to Borrow Money
  • Basics of Patents
  • Raising Venture Capital Money
  • Making Money With a New Idea
  • Entering Into a Partnership
  • Basics of Retailing
  • Shopping Center Location
  • Deciding on a Store Location
  • Franchise Business Checklist
  • Selecting a Franchise Business

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Time to Expand? Tips for Opening Another Location

location in business plan sample

Table of Contents

If you run a successful brick-and-mortar business, you may be considering expanding to a second location. Opening a new store can be exciting, but it does come with significant risks. Another outpost brings additional costs, and there’s no guarantee your new location will be as successful as the first. However, if you go about it the right way, expanding your business can help you find new customers and achieve more profitable growth .

Whether or not you expand to a new location, doing certain things now will make or break your business for the year.

Tips for opening another business location

Opening and operating a second location takes as much work and consideration as your initial one. The following tips can set you up for success.

1. Create a business plan.

A business launch and expansion should always include a detailed plan. Business plans can be written in two formats: a lean startup plan or a traditional plan. Both outline your goals and objectives as a way to attract the attention of investors.

Some people these days believe it’s fashionable to skip creating a business plan , but doing so may be reckless.

2. Consider the online alternative.

Creating an online store is less expensive than opening a new brick-and-mortar location. An e-commerce store doesn’t come with any rent or utility payments while still allowing you to reach a new market of customers. And unlike a physical location, you can keep an e-commerce site open and accessible 24/7.

3. Evaluate the market.

Even if you have a gut feeling about opening a location, follow it up with research. Do you have competitors in the area you’re targeting? How are they faring? Is there room for your business, or should you choose a different neighborhood? Does the site attract your target customer? Open a second location only in a market where you’re confident your business could thrive. Anything less could lead to more expenses than profits.

>>Read next: In Pursuit of Profit: Applications and Uses of Break-Even Analysis

4. Find your new location.

Finding the perfect place within your ideal market is as critical for your new location as it was for your original business. While property rent or purchase price is a vital factor to weigh, also consider safety, local ordinances, average foot or drive-by traffic, ease of access, and demographics. Be sure you are in an area that has ample demand for your product or service, with at most modest competition from similar businesses.

Also, it’s not just what’s outside your second location that matters. The building itself is just as important. Can you reasonably fit your operations there? Can you modify the space to resemble your first location and develop a unified brand? Does the landlord seem trustworthy and responsive? Make sure to answer these questions before committing to your second property.

5. Estimate inventory needs.

Inventory needs change with expansion since every location will require its own stock. If a customer visits your new site and you’re out of a certain item, you usually can’t get it quickly enough to serve that customer. Use current analytics to make projections about the inventory required at a new location. Along with stock, review current and future supply chain and warehouse needs. [Read related article: How to Cash In on Your Excess Inventory ]

6. Secure your cash flow.

When opening a second business location, it’s best to have the money on hand before you begin the process of expanding. If you don’t have ample cash flow , you can look for angel investors , Small Business Administration (SBA) loans or peer funding. Just be sure you can financially handle worst-case scenarios, like slow months while the new location gets established.

7. Evaluate the competition.

Your competition matters, and opening a second location may introduce you to competitors you don’t have at your primary site. Look at what other businesses are currently operating in the new area, and determine which ones could be competitors. From there, you can analyze their successes and setbacks and determine how these companies present different challenges at your second location when it comes to keeping your business competitive .

8. Record your processes.

A second location should operate the same as your initial location. To account for this, create training manuals for everything from how to use the point-of-sale (POS) system to how to follow up with customers. Have someone else review these to be sure they are easy to understand even when you’re not around to explain. [See which high-quality POS systems we recommend.]

9. Find a good staff.

To staff this new location, you’ll need to recruit reliable employees and leaders invested in your company’s mission and way of doing business. If you’re opening in an unfamiliar area, finding a local who knows the people there can give you a leg up when establishing connections and adapting to the local culture. Start this networking process by contacting the area’s business association and attending some events.

10. Establish your training program.

Your new employees may need more training than those in your first location, mostly because you won’t be on hand all the time to catch and correct issues. You should also have evaluation standards in place so you can catch issues before they become problems. Schedule regular check-ins with the location’s manager to assess how the employees there are performing.

11. Prepare your marketing campaigns.

Just like when you opened your first business, you’ll want some pre-opening promotion for your second location as well as a memorable grand-opening event. After that, you should plan on a year of consistent promotion to get your second location solidly established. One advantage unique to opening a second location is that you have customers at your first location who can help spread the word and may live closer to your new store. You may also be able to promote your company to other businesses in your new market.

12. Open the right way.

While a grand opening is a crucial part of marketing your new location, you can also introduce your new spot with a soft opening. This smaller start is perfect for opening a second business location since it implies an incomplete opening. From there, you can gradually move resources and employees from one location to the other. Plus, a soft opening is a great trial run for full operations, as you might notice some gaps you need to fill.

13. Alert the local media.

Even if your company offers highly specific products or services, there’s no harm in reaching out to local journalists, who can help spread the word about your business to a particular or general audience. Some local writers may report on new businesses with a focus on the company and founder’s story, so don’t be afraid to inject some personality and background into your pitches. Just be sure to avoid the PR mistakes that could kill your business .

14. Commit yourself.

You probably know from opening your first location that launching a company requires you to devote most of your time to the process. It’s no different with a second location. Keep your schedule free to tend to any needs that may arise. A second launch can move fast, and you should be prepared.

The success of a first location doesn’t guarantee the success of a second. The different demographics in each of your markets can make all the difference. However, with careful research and planning to ensure your business has the funding, procedures and staff to carry on your mission, you increase your chance of success in your new locale and those that follow.

Opening a new location could be a way to get your customers to shell out more cash.

How to know when to expand your business to a new location

Opening a new location is a big decision, and you want to make sure it’s the right step for your business. If you don’t have a solid plan in place, operating multiple locations can do more harm than good.

Here are some signs that it may be time to expand your business to a new location:

  • You can’t meet customer demand. If your business is so successful that you’re unable to meet the full demand at your current location, it may be time to grow your footprint. When you constantly find yourself turning away new customers, then a second location could be the solution.
  • You have a documented process. Can you duplicate your current business processes at your new location? Documented procedures will allow you to mirror your operations and train your staff at the new store on what works. If you don’t have these, you’re not ready to expand.
  • You’ve identified a new opportunity. If you’ve identified a new market opportunity, time could be of the essence. While you never want to rush such a major decision, a chance to attract a new customer base and grow your business may warrant expansion.
  • You have a well-developed staff. Setting up a second location is going to take a lot of your time and energy, so you want to make sure your staff can handle the logistics at your primary site. If your current team has operations down pat, you’ll have the time to focus on expansion efforts. On the flip side, staffing and operational issues at your existing spot are a sign that it’s not the right time to add another location to mix.
  • You’re running out of space. Do you constantly find yourself short on space at your current location? Is your business constantly crowded with customers? If so, a second location may be an outright necessity.

Jamie Johnson contributed to the writing and reporting in this article. 

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Pie Restaurant Business Plan

Start your own pie restaurant business plan

UPer Crust Pies

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

UPer Crust Pies will specialize in meat, vegetable and fruit pies made using old-country traditional family recipes from the UP – Michigan’s Upper Peninsula. Our pies will be baked fresh everyday and sold hot directly to customers through our retail stores. We will also sell frozen pies in lunch and family sizes that can be cooked at home in an oven or microwave. Our products are low fat and free of genetically modified ingredients and will be complemented by an assortment of fresh premium salads and desserts.

By importing our products directly from a private label bakery in the UP we avoid high labor costs, expensive investment in manufacturing and production equipment, and additional warehousing and production facility costs. Our major costs will be limited to product purchasing, shipping and cold storage.

We have plans to expand the company through further retail outlets and are focused on developing a business model that is favorable to franchise possibilities. With an exclusive import license that could be used to sell frozen product through supermarkets and bulk wholesale food chains, UPer Crust Pies could quickly and clearly establish itself as the market leader.

We have identified four main keys to our success. The first is to secure stores in highly visible locations. The second will be our unique value-for-money product line. The third will be a focus on superior customer service and education, and the fourth key will be employee retention through training and internal promotion.

The proposed business location for the first UPer Crust Pies store will be in downtown Yubetchatown. At this stage five possible sites are being considered in three areas. UPer Crust Pies will target three market segments within the core metro district. Our largest target market is young adults and business people (42%). Our next largest market, and the one with the greatest growth potential, is families with children (36%), and our final target market will be 15-24 year olds which includes students (22%).

Our marketing strategy will be to attract new customers, educate those customers and then create a loyal customer base. UPer Crust Pies will attract consumers through highly visible signage, print media advertising, flyers, entertainment book coupons, word-of-mouth advertising and strategic alliances.

Our sales strategy includes hiring employees who genuinely enjoy their jobs. We will continually assess all aspects of the business and interact with our customers personally, evaluating food choices for popularity and keeping favorites on the menu as we rotate weekly and seasonal specials.

UPer Crust Pies is a Limited Liability Company. All membership shares are currently owned by Lina and Olie Mackinac-Gogebic, with the intent of using a portion of shares to raise capital. UPer Crust Pies is currently seeking a bank loan with an additional private investment contribution from outside investors. The majority of these funds will be used for corporate design, remodeling and lease payments three months prior to opening.

Start-up costs include initial inventory for the first store including shipping and cold storage fees associated with the product. Equipment assets such as a commercial oven, pie warmers, ambient display cases, refrigerators, freezers and miscellaneous one-time furnishings must be purchased. In addition, UPer Crust Pies anticipates the need for liquid cash for operating expenses, unforseen expenses and to help cover wages for the first three months of business.

UPer Crust Pies has forecasted a modest growth rate for the first year of business. In the second year, the company will add two more stores and in the third year, an additional two stores. The addition of these stores will increase the gross revenue in the second and third years. Compared to industry standards we have forecasted a very conservative growth rate for the first three years of operations.

Pie restaurant business plan, executive summary chart image

1.1 Objectives

  • Achieve first year sales above $120,000.
  • Maintain a healthy average gross margin.
  • Develop a business model that is favorable to expansion.
  • Establish five store locations by the end of the third year.

1.2 Mission

Customer satisfaction and education are our paramount missions. We will endeavor to meet the highest standards of excellence through superb customer service and consistent product delivery in a friendly and comforting environment.

We seek fair and responsible profit, enough to keep the company financially healthy and ensure continued growth and development.  Responsible profit will fairly compensate owners and investors for their risk and reward employees for their hard work, loyalty and commitment.

Employee welfare, participation, and training are equally important to our success. Every employee will be treated fairly, with dignity and the utmost respect. It is our responsibility to provide employees with a friendly, comfortable and challenging work environment with opportunities for growth and development.

1.3 Keys to Success

  • Locations: visibility, high traffic patterns, convenient access.
  • Store design: visually attractive, relaxed atmosphere, fast and efficient operations.
  • Unique products: differentiation, competitive pricing, no direct competition.
  • Quality controls: genetically modified free policy, consistency, clean presentation.
  • Service: cheerful, professional, articulate and informative.
  • Marketing: positive image, educational, word-of-mouth advertising.
  • Employee retention: training, ongoing education, recognition programs.

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

UPer Crust Pies is a specialty meat and fruit pie retailer importing its products from Michigan’s Upper Peninsula. At present there are only two small competitors servicing the entire U.S.A. UPer Crust Pies will offer hot ready-to-go meat and fruit pies and frozen take-home options as well as an assortment of fresh salads and cold beverages.

We are considering five possible locations for its first store in downtown Yubetchatown. The company has plans to expand with an additional four stores in the local megalopolis over the next three years. Implementing a sound business model into our first store will aid expansion plans and open up the possibility of franchising.

UPer Crust Pies is currently seeking a bank loan and an additional private investment contribution from outside investors and family members.

Major costs include initial inventory purchases, equipment purchases, shop rental, personnel wages, site remodeling, marketing and various other operating expenses. Projected gross sales for the first year of business are expected to be over $120,000.

2.1 Company Ownership

UPer Crust Pies is a Limited Liability Company. All membership shares are currently owned by Lina and Olie Mackinac-Gogebic, with the intent of using a portion of these shares to raise private investment through outside investors and family members.

If all funds are raised, based on the investment requirements established in the financial section of this plan, Lina and Olie Mackinac-Gogebic will maintain ownership of no less than 51% of the company.

Reinvestment of earnings will be the backbone of this business after start-up and will ensure future growth and achievement of the company’s goals. A second and possibly third round of private investment may be considered to aid the company’s expansion plans in years two and three of operations.

2.2 Start-up Summary

Start-up expenses and assets are shown below, and the majority of these funds will be used for corporate design, re-modeling and to pay rent for three months prior to opening.

No legal costs will be incurred as the owners have agreed to trade a stock option with the company’s legal counsel in return for on-going legal services.

Start-up assets include initial inventory for the first store including purchasing, packaging, shipping and cold storage fees associated with buying the product inventory. Purchases of equipment assets such as a commercial oven, pie warmers, ambient display cases, refrigerators and freezers and miscellaneous one-time furnishings are necessary. The company anticipates the need for liquid cash for operating expenses, unforseen company expenses and to help cover wages for the first three months of business.

Pie restaurant business plan, company summary chart image

UPer Crust Pies will specialize in quality pies and pastries, imported frozen from the Upper Peninsula of Michigan and baked fresh every day. The premium taste, presentation and quality of our pies will not only be unique in Yubetchatown and the greater megalopolis area, but in the entire United States.

UPer Crust Pies are low in fat, free of genetically modified ingredients and made with premium ingredients. After oven baking, pies are put into warmers and held at a steady temperature to ensure rapid service and high customer satisfaction.

The company will also sell frozen pies that can be taken home and cooked in an oven or microwave. New technology in manufacturing has enabled New Zealand producers to develop a pie that can be heated by microwave in less than three minutes with the pastry remaining flaky as if it had been cooked in a convection oven for thirty minutes.

Our pies experience will be complemented by an assortment of premium salads and desserts as well as cold beverages. Savory samples will also be offered to first-time visitors.

What is a Pie?

The meat pie is a traditional old-country food consisting of savory fillings in a pastry shell. Traditional fillings include beef and cheese, steak, bacon and egg, and chicken and vegetable to name a few.

Usually eaten hot from a paper bag, with flaky golden pastry and savory fillings, the pie is unpretentious comfort food. UPer Crust Pies will bring the Upper Peninsula pie experience to the U.S. and endeavor to establish the humble meat pie as gourmet fare for Americans while bringing a taste of home to “UPers” living throughout America.

The Menu

The Classic Pie Selection (6.25 oz)

  • Beef : Lean savory ground beef in a smooth sauce with fresh herbs and spices in a low-fat pastry.
  • Steak : Prime lean steak in rich hearty gravy wrapped in a low-fat flaky pastry.
  • Chicken & Vegetable : Chicken breast with garden vegetables in creamy white sauce and wrapped in a low-fat flaky pastry.
  • Bacon & Egg : One egg cracked on top of a lean slice of shoulder bacon wrapped in a low-fat flaky pastry.
  • Potato Top : A traditional Shepherds pie with lean ground minced beef and a creamy mashed potato topping.
  • Steak & Mushroom : Chunky steak prepared in a smooth dark sauce with fresh sliced mushrooms in a low-fat flaky pastry.
  • Steak & Cheese : Chunky steak in a dark gravy mixed with pizza blended cheese and wrapped in a low-fat flaky pastry.
  • Beef & Cheese : Ground beef in rich gravy mixed with pizza blended cheese and wrapped in a low-fat flaky pastry.

The Gourmet Pie Selection (9.5 oz)

  • Thai Chicken : Succulent chicken breast in a creamy oriental sauce wrapped in a light low-fat flaky pastry.
  • Bacon & Egg : Two whole eggs cracked on top of lean shoulder bacon, wrapped in a low-fat flaky pastry.
  • Beef, Cheese & Tomato : Ground beef in dark gravy with low fat cheese, garden tomatoes and wrapped in a low-fat flaky pastry.
  • Chicken & Vegetable : Succulent chicken breast and garden vegetables in a creamy white sauce wrapped in low-fat flaky pastry.
  • Butter Chicken : Chicken breast in a smooth, creamy Indian delight prepared in a low-fat flaky pastry.
  • Cracked Pepper : Prime strips of beef in rich creamy sauce complimented with spicy cracked pepper corns.
  • Beef, Bacon & Double Cheese : Lean beef in a rich gravy, creamy cheese sauce and slices of bacon wrapped in a low-fat flaky pastry.
  • Steak & Cheese : Chunky steak in a rich hearty gravy with fresh herbs and spices, wrapped in a low-fat flaky pastry.
  • Vegetarian : Garden vegetables prepared in a smooth creamy sauce and wrapped in a true light vegetable pastry.

Rolls & Savories: Sausage rolls, beef rolls, garlic and cheese rolls and small savories all wrapped in a low-fat flaky pastry.

Desserts & Fruit Pies: Low-fat lattice-top dessert pies in cherry, apple, apricot, custard, apple and a selection of cheese cakes.

Salads: Caesar Salad, Greek Salad, French Salad, Potato Salad, Fruit Salad.

Cold Beverages: Coke, Sprite, 7-Up, Carrot, Apple and Orange Juice, spring water, energy drinks.

Market Analysis Summary how to do a market analysis for your business plan.">

The market we will engage in first is the downtown Yubetchatown district. Yubetchatown is centrally located in the Bigriver Valley, home to approximately 3.5 million people. It is an integral part of greater Megalopolis.

Yubetchatown is the seventh largest city in the state with a population of 84,560 and a geographic area of 29 square miles. With a growth rate of 8.5% Yubetchatown’s population is projected to grow well over 100,000 by 2008. It is anticipated that Yubetchatown will become the largest city in south Bigriver Valley.

Yubetchatown’s trade area consists of approximately 160,000 residents and is home to a diverse economic base including corporate offices, retail, industrial and manufacturing companies and one of the largest warehouse and distribution centers in North America.

The median household income in the Yubetchatown area is around $91,000 and the median age is 34 years old. Of the south Bigriver Valley population 13% are under 14, 14.5% are 15-24, 21.5 % are 25-34, 36% are 35-59 and 15% are over 60 years of age.

Demographically the UPer Crust Pie customer will come from all age and income levels of the market. Within this population we will focus on three separate groups with different needs: 15-24 year olds (including students), young adults and business people (25-34) and families with children under 14.

4.1 Market Segmentation

UPer Crust Pies intends to market to a wide customer base. However, we have defined the following groups as targeted segments that contribute to our growth projections:

  • Families with Children

The largest target market is young adults and businesspeople. Our next largest market and the one with the greatest growth potential is families with children followed by the 15-24 year-old segment.

Pie restaurant business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

15-24 year olds go out for fast food more than any other age group. They have disposable incomes which they tend to spend on immediate gratification items, especially food products they perceive to be unique, cosmopolitan or have an individuality value. Because these individuals are the most open to trying new foods they are vitally important in building an effective word-of-mouth marketing strategy.

Young adults and businesspeople have the potential of providing large volume sales to the company during the peak hours of 11 a.m. to 2 p.m. The lunch business is driven by individuals. Many go out to lunch to get out of the office setting or have business meetings at lunch either in or out of the office. We will endeavor to accommodate surrounding businesses placing phone-in orders for business meetings. Satisfaction of this group will provide a vital long-term revenue stream.

Families with children are a growing population, both numerically and in their choice for convenient foods. Two-income families have less time to prepare meals so they are an easy group to market to because their lifestyle is very specific. We will aggressively target single and working mothers who tend to turn to fast and convenient food choices to accommodate family demands. By targeting this group, we not only generate a large volume of immediate business, but also create long-term customers in their children.

Our downtown location and increasing customer base will probably draw in customers outside of our targeted groups to include visitors and downtown shoppers. We believe these customers will be glad to pay a reasonable price for our products in exchange for high quality, great taste and the uniqueness they receive.

4.3 Service Business Analysis

The United States Fast Food Industry

The U.S. has 277,208 fast-food outlets from coast to coast, that’s one for every 1,000 people. According to the U.S. department of Agriculture, consumption of food away from home accounted for 47% of total food expenditures in 2001, up from 45% in 1990 and 26% in 1960. The National Restaurant Association estimates that by 2010, total sales in the fast food industry will exceed $577 billion. At that time, consumers will spend 53% of every food dollar on meals, snacks and beverages away from home.

The strong demand for takeout food, prepared and packaged for busy customers to eat at home, should continue to grow solidly over the next few years, especially with a significant decline in the cost difference between dining out and cooking at home. The NPD Group, Inc.’s 2003 Consumer Spending Survey indicated the recent drop in the economy has encouraged more people to eat ‘on-the-go’ fast foods. Food on the run has now become the food of choice from executives to blue collar workers. According to Technomic Inc., a Chicago based research firm, take out sales accounted for 67% of total sales at the top 25 limited service chains.

The NPD 2003 Consumer Spending Survey also found that 18 to 34 year olds are turning towards new dining venues that are more likely to serve specialty foods like, sandwiches, Mexican wraps and home meal replacements instead of fried foods. NPD found that consumers frequenting these types of outlets are interested in higher quality food preparation and taste, better physical eating conditions and superior customer service, and are willing to pay a higher price.

Increases in income, especially when coupled with exposure to new and different foods, will stimulate Americans’ continuing quest for increased variety in their diets. Technomic Inc. suggests the most successful food companies in 2020 are likely to be those that tap most effectively into Americans’ appreciation for diversity in their lives, especially the insatiable desire for new and different food choices.

The United States Pie Industry

The U.S. Retailer’s Bakery Association stated in 2001 that bakeries will become the new springboard for successful retail meal programs. The Association believes there are unlimited opportunities for fresh pizza, quiche, pot pies, vegetable pies, soup, pasta and sandwiches.

According to the Bakery Production & Marketing Red Book, total U.S. fresh pie sales for 2003 were $204,567,600 compared to fresh pie sales in 2000 which totaled $182,602,096. Total U.S. frozen pie sales were $339,121,696 in 2003, a substantial increase when compared to 2000 sales of $141,488,000.

An estimated 70% of total pie sales in the U.S., including both frozen and fresh pies, are sweet pies. Although statistics complied by the American Institute of Baking stated that frozen pot pies contributed $68,705,000 to the total figure of $141,488,000 frozen pie sales in 2000.

An increase in consumer demand for the convenience of pot pies corresponds with U.S. consumer’s passion for meat and poultry. In 2002 total meat consumption (red meat, poultry and fish) reached 195 pounds per person, 57 pounds more than the average annual consumption in the 1950s. Each American consumed an average of 7 pounds more red meat than in the 1950s, 46 pounds more poultry and 4 pounds more fish and shellfish.

The Upper Peninsula Pie Industry

The pie is considered the national food of Michigan’s Upper Peninsula and the pie making business is a serious endeavor. Pie sales contributed substantially to the UP’s economy according to a statistics report in 2002.

UP brand Chequamegon is the present market leader in fresh pies with a 54.7% market share, well ahead of their closest competitor on 15% share. Chequamegon offers fresh single and multi-pack pies in as well as a range of sausage rolls and savories. Chequamegon also produces frozen family pies, single pies, frozen single sausage rolls and unbaked sausage rolls.

According to Rosemary Ontonagon, marketing manager for Chequamegon, frozen family pies and multi-pack pies are being used as convenient value-for-money family meal solutions. Single pies are purchased with snacking in mind, being a handy product for households to have on hand for hungry family members. Sausage rolls and savories are being used for more social occasions.

4.3.1 Competition and Buying Patterns

Within the restaurant and fast food industry there are several different segments:

  • Fast food: McDonald’s, Burger King
  • Pizza: delivery and dine in
  • Buffets: all you can eat
  • Lounges: combining food and alcohol
  • Fine dining: typically restaurants at the highest price point
  • Fast-casual: combination of fast service and sit down dining

Local Competitors

The Tintagel Pasty Company

The Tintagel Pasty Company has been operating since 1998. The company recently opened its second store, a small retail outlet on Bass Street in the heart of downtown which is supplied by their original store. The company is owned and operated by Anne Thracite, a Cornish woman with no previous baking or relevant industry experience.

Limited planning and organization have affected the company and there are no procedures or sufficient systems in place to deal with rapid expansion or substantial increases in production. The company is presently struggling to fulfill the demands of having a second retail outlet, regularly running out of product or unable to fulfill customer requests during peak times of the year. The quality of the company’s products can vary from week to week. Product is sometimes overcooked or very dry and equipment is not reliable. Product is sometimes baked twice and then sold frozen to customers in order to fulfill demands.

Business hours at the home store are 9:00 am to 5:30 pm Tuesday to Saturday and at Bass Street 10:00 am to 6:00 pm Monday to Sunday. Although the atmosphere is relaxed and inviting at both stores, a lack of seating has affected customer choice at the Bass Street location. Punch cards (buy nine get one free) have been adopted in the last two years and have aided in sales and repeat business. Customers include a variety of curious first timers and local business people. There is a strong expatriate base and loyal customer following at both stores. Of the customers that have entered both stores, one in 20 has enquired as to whether the company offers franchise opportunities.

The company’s products include six varieties of beef pie, three varieties of Chicken pie and one vegetable pie. Pies come in Lunch size (5 inch, $3.25 to $3.75), Family size (9 inch, $10.75) and Party size (2 inch, $10.00 per dozen). There are also spinach and sausage rolls ($2.50 each) and rotational weekly specials that include, Thai Curry Chicken, Indian Butter Chicken, plain Chicken, Ham and Brie, and Beef Stroganoff. Of the customers that have entered both stores, one in five has asked for sweet pies and desserts.

All product ingredients are presently bought by the owner and purchased at locally. Beverages are out-sourced and delivered weekly by Fizzy Beverage also locally based. Cornish dry foods sold through the store are imported by the owner through her brother in Falmouth, Cornwall, U.K.

The estimated gross profit for the company after the cost of goods in 2000 was $70,185, in 2001 $69,531, 2002 $82,029, in 2003 $100,729 and in 2004 around $132,353. Shipping of frozen product accounts for around 30% of the gross profit for each year. These figures show a healthy growth rate of over 20% in the last 3 years of business. Based on income and expenses over the last five years, wages have averaged between 25-30%, cost of goods around 20% and rent around 20%.

These figures do not take into account the gross profit of the new Bass Street store which started operations in late October 2004. Gross profit after three months of business at this store was $22,730. Based on the present growth rate and an influx of tourists during the summer months the annual gross profit of the Pike Street store alone is estimated to be between $90,000 and $100,000 gross.

The Quern Flour Bakery (Tidalborestad)

The Quern Flour Bakery is based in Tidalborestad, on the East Coast and has been operating since December 2003. Maltese owner and operator Siggiewi Gozo is a former corporate recruiter with an Masters Degree in Psychology who originally came to Tidalborestad for a job with a national sportswear company. He has no previous baking or relevant industry experience.

A one man shoe-string operation, Siggiewi works 15 hour days to make between 700 and 900 pies per week. In early 2004 Gozo was making and selling about 400 pies per month. In January of 2005 he sold 4,000 in bars and Irish pubs alone. Business is now good enough for him to take on extra staff and to scout a bigger location for the bakery. Currently he operates out of a rented nightclub kitchen after hours.

Quern Flour produces seven varieties for the Tidalborestad market, including steak and mushroom, beef and cheese and a shepherd’s pie. He also makes a breakfast egg and bacon pie and a sausage roll. He sells his pies to several midtown pubs, caters events around town and delivers by the dozen directly to customers’ homes by bicycle or subway. Quern Flour Bakery now offers overnight shipping via FedEx anywhere in the country.

The majority of his clientele hail from British Mediterranean areas. There are around 2,300 Maltese and Gibraltarian customers in Tidalborestad that make up the company’s customer base. Quern Flour supplies around six restaurants and pubs with frozen and hot pies within the Tidalborestad area. Gozo also caters for holiday parties and his pies were served at  some consulates during morning tea in 2004.

All the ingredients considered carefully. The flagship ‘chunky steak’ pie is made from sirloin steak and all cuts of meat are inspected to make sure there is no gristle. To develop the perfect pie crust, Quern Flour Bakery sources special margarine directly from Malta.

Quern Flour Bakery pies retail for up to $5.00, and last year the company turned over $90,000 gross. Based on the current market Siggiewi Gozo expects the company to quadruple turnovers by 2005.

Buying Patterns

The most difficult function in predicting customer buying patterns is following the fine line of baking too much product or not having enough product left to serve customers late in the day. Despite implementing sophisticated POS systems that track hourly sales figures, there is no predictable pattern of daily activity. One Tuesday could be a sellout and the next Tuesday there could be pie warmers left full of product.

Despite customer unpredictability, buying patterns typically revolve around several different factors:

  • Quality . The menu items must meet minimum levels of quality for people to be willing to spend money on the food, particularly when there are so many different options available.
  • Location . Proximity to home or work is very important; so is convenient parking for the end-of-workday traffic stopping to pick up hot food to go or frozen meal solutions.
  • Price . Low price or lowest price is not essential. Many customers associate low price with lower quality.
  • Convenience . People tend to eat out because it’s quicker than preparing a meal themselves.
  • Uniqueness . As consumers seek variety and new experiences, the challenge is to stand out from competitors, not only as an alternative fast food option, but as one that offers consistently high-quality food and a distinctive atmosphere.

The proposed business location for the first UPer Crust store will be in downtown Yubetchatown. Five possible sites are being considered in three areas: the new Yubetchatown Station presently under construction, central downtown Yubetchatown, and the area of Chambers Street and 18th Avenue.

Each will need approximately 500-700 square feet. This area will include freezer space for on-site storage of frozen product. The operating space will consist of an oven, counter and serving area, pie warmers and ambient display cases, cold beverage display, an eating area and a restroom.

The stores will be located on high traffic commuter routes and close to shopping facilities in order to catch customers going to or from work, while they are out for lunch, or on a shopping expedition. The business will operate from Monday through Sunday. Hours of operation will depend entirely on the area and final location of each store.

5.1 Facilities and Equipment

Pie warmers are custom designed and manufactured display cases. Chilled and ambient display cases that house salads, desserts and cold beverages, uniform in design, will also be purchased. Commercial ovens, cash registers and point of sale (POS) accounting systems will be necessary capital asset acquisitions.

5.2 Suppliers and Alliances

UPer Crust Pies is in negotiations with two Michigan Upper Peninsula pie manufacturers to supply frozen pies, rolls and a small selection of dessert pies. It will establish a relationship with a reputable shipping company and a freight agent to aid in the smooth transition of product from the UP to our distribution center.

The company is also currently seeking reputable organizations to supply its stores with fresh salads and desserts on a daily basis, and will also establish contracts with a beverage company to provide popular product brands. Credit and delivery policies will be established; to avoid fluctuating costs the company will endeavor to build a fixed product rate into the contracts.

UPer Crust Pies wishes to establish long-term loyal relationships with its suppliers. Factors such as history, reliability, reputation, delivery system, service, product guarantees and liability issues will be crucial in the final decision. Due to the company’s expansion plans in years two and three, it is important that our suppliers have regional and possibly national coverage.

5.3 Inventory

Our imported products will be stored locally with a company that specializes in cold storage. Lead time for ordering, production, shipping and receiving is expected to be two months, although this will depend on sales volumes and product demand during the first year of business. This lead time will be reviewed constantly and altered in accordance with company expansion and seasonal demands.

Frozen and chilled pastries will be distributed to stores on a weekly basis, dependant on turnover, and will be kept frozen on site. Perishables such as salads and some desserts will be delivered fresh directly to our stores on a daily or two- to three-day schedule. Cold beverages will also be delivered directly to stores according to demand. A small back-up supply of products will also be kept on site.

5.4 Legal Environment

A submission of application for a food license to the State Department of Health will include prepared plans and specifications for review and approval before the construction or remodeling of the initial establishment. The application fee is $300.00.

The State Department of Health will conduct one or more pre-operational inspections to verify that the establishment is constructed and equipped in accordance with the approved plans and in compliance with the Food Code.

The State Department of Health  also requires that each employee possess a Food Handlers Permit. This permit is $10.00 and is obtained after a simple exam.

The company will adhere to the State Department of Health and U.S. Food and Drug Administration Food Code standards. An appropriate insurance policy will also be taken out in accordance with State Department of Health regulations.

5.5 Policies and Procedures

Establishing company policies and procedures will be important the company’s growth and employee development. The following policies and procedures will be adopted:

  • Development of an employee policy handbook
  • Development of a company procedures and systems handbook
  • Clearly defined employee job descriptions, training, reviews and monthly meetings
  • An open-door policy for employee suggestions and concerns

The company’s credit policy will be to accept only cash, Visa or MasterCard credit cards.

Strategy and Implementation Summary

UPer Crust Pies will penetrate the commuter and captive consumer markets by setting up stores in highly visible and accessible locations. With the proliferation of coffee and fast-food chains across America, customers expect product consistency. Although our unique products will initially captivate a curious market and compete on a consistency level, it will be our fast and cheerful customer service that will differentiate us from competitors and keep our customers returning.

UPer Crust Pies has identified its market as busy, mobile people whose time is already at a premium. This market desires exciting, new-tasting products with familiar ingredients for lunch time or while commuting to or from work or school.

Strategic Assumptions:

  • Every resident in the greater Yubetchatown area is a potential customer.
  • Each location gives us an opportunity to increase customer awareness.
  • Marketing to our target segments will expose us to additional new customers.

6.1 Competitive Edge

UPer Crust Pies’ unique products and focus on the customers experience will give it a significant market edge and differentiate the company from its competitors.

The company has several distinct advantages over its two leading competitors; its authentic products, modern baking and presentation equipment, and the latest operating systems and technology.

A fast and unique food alternative: We offer our customers a completely new experience through our pies, pastries, salads and desserts. The look, feel and taste of our products when compared to the competition will initially establish a sense of curiosity, followed by a value for money reputation and eventually a loyal following of pie lovers and connoisseurs.

Products are made from the finest quality ingredients and are low in fat and free of genetically modified foods. Many products, such as the authentic Upper Peninsula pies, will not be available anywhere else.

Our products will be served fast and ready to consume and will be an alternative to the usual fast-food options available in today’s market.

The importance of the experience: With so many fast food restaurants and prepared foods being offered at grocery markets, the customer experience becomes extremely important as an effective way of distinguishing offerings. It is this experience that remains in the customer’s mind well after they have consumed their food. This memory is what is communicated to their friends and colleagues.

We realize that our business is a lot more than just pies. It’s our pies, our people and the experience the customers have in our stores. The store environment will play a major role in a positive customer experience. The cleanliness, smoke-free environment, color scheme and nostalgic Upper Peninsula/Great Lakes images will create a completely new experience.

6.2 Marketing Strategy

The focus of our marketing strategy will be to attract new customers, educate those customers and create a loyal base. Our goal is to be known as a unique food experience with superior customer service.

The following marketing strategies will be employed in the first year of business:

Signage: Highly visible, eye catching and recognizable signs and logos at each store.

Print media advertising: Weekly and monthly food and dining out guides will be used for print advertising.

Flyers:  Distributed to local businesses to create customer awareness, accompanied with buy-one get one-free coupons during our Grand Opening.

Entertainment book coupons: Create initial customer awareness and economic incentive to try our products. The effectiveness of these books diminishes after approximately eight months and UPer Crust Pies will turn to more cost effective marketing.

Word of mouth: Unsurpassed customer service and our unique products will help develop strong word-of-mouth advertising and in turn help extend the company brand.

Alliances: Although the company is primarily in the fast-food industry, it’s unique products and cultural origins could be used as a tourism vehicle to promote the Upper Peninsula through a strategic alliance with Michigan Tourism.

6.3 Sales Strategy

We intend to succeed by giving our customers a combination of delicious food in an appealing environment with outstanding customer service. Once a customer enters our store, it is our job to make sure their experience with us is enjoyable. To establish a loyal customer base, it is vitally important we develop repeat business.

Our pies will be cooked throughout the day, ensuring they can be served with confidence while guaranteeing our customers supreme freshness and taste. We will also offer fresh baked samples free of charge to those who enter our store for the first time.

We need to offer fast service at peak times. To speed up customer service, at least two employees will be servicing customers. One employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on our computerized POS system will be analyzed for marketing purposes.

We will offer punch cards, meal deals and weekly menu specials and keep accurate track of what types of pies and associated foods sell well through a customer feedback program. With this information we will be able to streamline our food line to match local tastes and encourage more people to eat at the pie shop.

We need to sell the company as well as the product. All employees will go through a comprehensive training process on how to offer customers the finest experience. Employees will be empowered to resolve issues and are encouraged to seek assistance from managers for any conflicts they are unable to resolve.

Part of our mission is to educate our customers about pies. However, this must be done in a respectful fashion. Our knowledge is a resource, and must never be used to make a customer feel uncomfortable or ignorant.

In the first year of business we will implement a Point-of-Sale (POS) computerized cash register system that will make tracking and managing receipts and charitable contributions more robust. We will seek a professional who has experience in how to tie in POS systems to the Internet and inventory controls. This individual’s knowledge will also help establish technology guidelines for the company.

Our sales strategy requires consistently high quality food and fast service in a relaxed atmosphere. We can accomplish this by:

  • Hiring employees who appreciate our unique products.
  • Continually assessing the quality of all aspects of the business and immediately addressing any issues.
  • Interacting with our customers personally, so they know that their feedback goes directly to the owners.
  • Evaluating food choices and keeping favorites on the menu as we rotate weekly and seasonal specials.

6.3.1 Sales Forecast

Our sales forecast shows modest estimates for the first year of operations beginning in July 2005. Cost control is a critical focus for UPer Crust Pies. Because we are importing our product from Michigan, we will negotiate a flat purchase price for the first three years of business to compensate for fluctuating economic conditions. We have projected a 60% gross mark up over the first three years of business. Keeping costs low while increasing sales will be vital to the company’s profitability in subsequent years.

UPer Crust Pies envisions the first three months of sales to be fairly slow due to limited product awareness, the competitive nature of the market and existing customer loyalty. We have therefore forecasted a 5% growth rate over the first year. In the second year, UPer Crust Pies will add two more stores and in the third year, an additional two stores. The addition of these stores will nearly triple the gross revenue in the second year and increase half again as much in the third year. Compared to industry standards we have taken a very conservative 10% growth rate over the first three years of operations.

Not projected in this sales forecast is the possibility of additional revenue generated from shipping via an e-commerce facility to be added to our website in year two. Based on current market research, shipping could be a significant profit center. We would sell frozen products that could be shipped overnight via DHL or FedEx to customers throughout the U.S. Shipping would also become an integral part of the company’s marketing plan to help develop brand recognition and build product awareness.

We understand product sales will also vary according to the season. Dessert and salad sales in the summer months are expected to be slightly higher since more people will be having barbecues and picnics requiring ad-on products. Pie and pastry sales should be higher in winter because of food oriented holidays and pies tend to be viewed as a comfort food. It is anticipated that sales of sodas during the summer months should be substantially higher.

Please note that the sales forecast for the first year reflects store number one at a 5% growth rate. In the second year, the forecast reflects the combined sales of three stores at a 10% growth rate, and in the third year,  the combined sales of five stores at a 10% growth rate.

Pie restaurant business plan, strategy and implementation summary chart image

Web Plan Summary

In the first year of operation UPer Crust Pies will establish a basic Internet presence. The website will be a virtual business card and portfolio for the company with a simple yet contemporary design to keep up with the latest trends in user interface. The site will have general information about the company, its products, prices, store locations, hours of operation and contact information.

In year two, the company will launch an e-commerce facility for customer ordering and shipping of frozen products throughout the U.S.

7.1 Website Marketing Strategy

Marketing efforts will start with our existing brick-and-mortar store customer base, informing them of our Internet presence and encouraging their word-of-mouth recommendations. Further awareness will be heightened by utilizing search engine submissions, URL links and e-mail marketing.

The company website and email address will be referenced on all printed material and correspondence including menus, business cards and advertising media.

The launching of our e-commerce facility for shipping in year two will also be marketed in our stores through word of mouth and on all printed media. Expansion into outside sales will help us to create greater community awareness.

7.2 Development Requirements

Development Costs

  • Site design: $1000 – $2,000.
  • Website name registration for www.UPerCrustPies.com is $149.00 for 10 years.
  • Site implementation: UPer Crust Pies will utilize the programming services of a friend with 12 years of experience in software development, including custom programming, data management and Web development.

Ongoing Costs

  • Site hosting: $19.95 per month. Includes 250 MB Disk Space, 10 GB Data transfer and 20 POP e-mailboxes. (Year 1)
  • Fully integrated e-commerce site hosting: $99.95 per month. Includes 5,000 MB Disk Space, 200 GB Data transfer and 200 POP e-mailboxes, storefront and shopping cart, secure online credit card processing and payment options. (Year 2)
  • Search engine submission: $44.95 per month. Guaranteed placement in Google and Yahoo! (Year 2)
  • Site design changes: Free of charge; however, material for changes such as photography, new logos or designs may incur a fee but will be considered part of  the marketing budget.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The strength of our management team positions us for success. We have assembled a team that embraces different disciplines with expertise in all areas of the business. Overhead for management will be kept to a minimum and initially all managers will be hands-on workers. There is no intention of having a top-heavy organization that drains profits and complicates decisions.

UPer Crust Pies’ management style will encourage all employees to learn as much as possible about all aspects of the business and be involved in decision making where appropriate. The company respects its community of co-workers, and will treat all workers well. It is important to us that they enjoy their jobs, feel part of the company and are well rewarded for their work.

In addition to the day-to-day operations, the management team, as principals within the company, will oversee product development, purchasing, positioning, pricing, inventory control and approval of all financial obligations of the company. They will plan, develop, and establish customer service policies and objectives, write employee job descriptions and draft an employee manual for all employee-related policies. They will:

  • Manage working capital, including receivables, inventory and cash.
  • Perform financial forecasting, budgeting, cash flow analysis and external financing requirements.
  • Prepare financial analyses for guiding management, including  income and expense reports.
  • Prepare budgets and financial forecasts and arrange for audits of the company’s accounts.

8.1 Management Team

Lina Mackinac-Gogebic, CEO – Accounting, Marketing, Legal, Human Resources

Confidential and proprietary information removed from this sample plan.

Olie Mackinac-Gogebic, COO – Operations, Marketing, Financial, Business Development

Misty Glade – Vendor Relationships, Sales, Recruitment, Training

Full Time Employee – Operations, Inventory, Store Development

Advisory Board

8.2 Personnel Plan

UPer Crust Pies will be slow to hire people in the first year of operation, but very loyal to those who are hired. Initially all employees will be part time as the majority of work will be done by the owner. As the company grows, we intend to hire employees with relevant skills and reward them accordingly. From that point, we intend to increase the responsibilities of each employee as opposed to hiring more people.

Retail and restaurant businesses live or die on customer service, yet their employees have among the lowest pay and worst benefits of any industry. We know we have great products, but it’s the way those products are delivered that will determine our success. We realize that our employees are our biggest asset and that the image of our company is built by the people who work for us.

Compensation for employees will include direct monetary payments and as the business progresses, performance bonuses will be paid to full-time employees. Because this is a small business, employees will be paid a comfortable wage that is fair to both the employees and the business.

Our opening employment goal is one full-time and one part-time employee with an additional two full-time and three part-time employees by the end of the second year. All employees with be trained in food handling and store procedures and will be required to hold a food handlers permit.

Our employee policies will include:

  • Weekly management meetings
  • Monthly employee meetings
  • On-going training
  • Performance reviews every six months
  • Performance incentives
  • Encouragement of creativity

Financial Plan investor-ready personnel plan .">

A bank relationship will be established as soon as possible. Sales could very well increase at a much sharper rate than assumed in these conservative projections. Sharper sales will result in a greater need for funds in support of inventory and store growth and a line of credit will need to be established.

We will set a budget for marketing and advertising and will continue to reinvest residual profits into company expansion and personnel.

Sales growth will be aggressive during the first 18 months as we sharpen our product line and inventory to better meet our customer’s requirements. Although we anticipate substantial growth in years two and three we are forecasting a very conservative 10% growth rate.

  • Salaries and rent are two major expenses. Depreciation will also increase as the company develops.
  • The owners will not take any profits out of the business and will be paid as an employees.
  • Payoff of private investment is expected within four to five years.

9.1 Start-up Funding

Total startup funding amounts are shown in the table below. This includes initial start-up expenses, liquid cash for operating expenses, unforseen expenses, to help cover wages, and also includes start-up inventory. This inventory will include the purchase and storage costs of frozen products, purchasing of cold beverages and daily delivery of fresh salads and various other desserts.

The purchase of long-term assets that will include an oven, two pie warmers, an ambient display case, freezers and refrigerators, a dishwasher and microwave, a three-compartment sink, decor and furnishings, utensils, a cash register and Point-Of-Sale software and accessories.

A long-term loan has been secured for the purchase of the long-term assets.

A first round of private investment from outside investors and family members will begin in April 2005. A second round will commence at the end of April 2006 for the purchase of further inventory and long-term assets to service the next two stores.

Profits will be reinvested and the owners will be employees collecting a very modest wage. This will ensure that any operating debts incurred are paid for within the shortest possible time period.

9.2 Important Assumptions

Payroll burden is calculated at an estimated 12.65% made up of 7.65% for social security and medicare, 2% for unemployment, and 3% for worker’s compensation.

The tax rate has been left at 0% in the first year plan due to accumulated losses carried forward and that as an LLC the the owners will be taxed personally.

Our long-term interest rate is 6%.

Our State Sales tax is 4%. This does not affect our total profitability, but monthly payments to the State does impact our cash flow and cash balance.

Our financial plan depends on important assumptions. Our key underlying assumptions are:

  • A slow-growth economy without major recession.
  • Access to sufficient capital to sustain the company’s projected growth plan.

9.3 Break-even Analysis

Our break-even analysis is summarized by the following chart and table.

Pie restaurant business plan, financial plan chart image

9.4 Projected Profit and Loss

The following table and charts indicate projected profit and loss.

Pie restaurant business plan, financial plan chart image

9.5 Projected Cash Flow

Our projected cash flow is outlined in the following chart and table.

Pie restaurant business plan, financial plan chart image

9.6 Projected Balance Sheet

The following table explains the projected balance sheet.

9.7 Business Ratios

Projected business ratios are provided in the table below. The final column, Industry Profile, shows ratios for the Fast-Food Restaurant, Independent industry, as determined by the Standard Industry Classification (SIC) Index code 7999.

Risk Management

New restaurants and fast-food outlets often make one of two mistakes: they are either unprepared or under prepared for opening. Initial poor service or product quality discourages customers from returning. Many first businesses spend all of their efforts at opening and are unable to maintain the quality customers expect on return visits, decreasing word-of-mouth advertising and leading to poor revenues.

UPer Crust Pies will be as prepared as it can possibly be with back–up equipment, alternative suppliers and at least three month’s inventory of frozen product.

Initial costs will be planned accordingly and kept to a minimum. The company recognizes the importance of its image, first-time impressions and customer service and it will not sacrifice this in order to satisfy the bottom line.

It is anticipated that marketing costs will be significantly higher in the first three months of business. Marketing activities will be closely monitored and constantly analyzed to decide what marketing activities are successful and what are not. A marketing budget will be set for the first store and for each subsequent store.

UPer Crust Pies will establish a loyal and long-term relationship with our suppliers and always pay on time. We wish to establish fixed-product rates with our suppliers as a buffer to avoid fluctuating economic conditions that may affect our purchasing capabilities.

Changes in importation policies and health regulations will always affect UPer Crust Pies. We need to establish a strong working relationship with the relevant authorities to ensure all procedures are followed correctly and ensure that we have a steady supply of product.

Because our products are unknown to the general consumer, marketing activities are vitally important. We plan on implementing several marketing strategies as outlined in the marketing section of this business plan. To establish product and brand awareness, we will give-away small samples to encourage first timers to try our products. Although we have quality products, building a loyal customer base will take time. We realize that training and empowerment of our employees will be reflected in their customer service and that word-of-mouth advertising will be paramount to our success.

Garrett's Bike Shop

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How To Set Business Goals (+ Examples for Inspiration)

Saphia Lanier

Updated: March 11, 2024

Published: October 24, 2023

You’re a business owner — the captain of your own ship. But how do you ensure you’re steering your company in the right direction? 

Business goals: a man looks into a telescope

Without clear-cut goals and a plan to reach them, you risk setting your sails on the course of dangerous icebergs. 

The best way to steer clear of wreckage is to map out exactly where you want your business to go. This is what makes setting business goals so important. If you’re not already using them to guide your ship, then now’s a great time to start.

Table of contents:

  • What are business goals?

Why business goals are important

How to set business goals, tips to achieve business goals, business goals examples, what are business goals .

Business goals are the desired outcomes that an organization aims to achieve within a specific time frame. These goals help define the purpose and direction of the company, guiding decision-making and resource allocation. They can be short-term or long-term objectives , aligned with the company’s mission and vision.

Operating a business using your gut and feelings will only get you so far. If you’re looking to build a sustainable company, then you need to set goals in advance and follow through with them. 

Here’s what goal setting can do to make your business a success:

  • Give your business direction. Business goals align everyone toward a common purpose and ensure all efforts and resources are directed toward achieving specific outcomes.
  • Keep everyone motivated to keep pushing forward. Goals provide employees with a sense of purpose and motivation. According to research from BiWorldwide, goal setting makes employees 14.2x more inspired at work and 3.6x more likely to be committed to the organization.
  • Create benchmarks to work toward (and above). Goals provide a basis for measuring and evaluating the performance of the organization. They serve as benchmarks to assess progress, identify areas of improvement, and make informed decisions about resource allocation and strategy adjustments .
  • Prioritize activities and allocate resources effectively. Goals help you identify the most important initiatives, ensuring that time, money, and effort are invested in activities that align with the overall objectives.
  • Make continuous organizational improvements. Goals drive continuous improvement by setting targets for growth and progress. They encourage businesses to constantly evaluate their performance, identify areas for refinement, and implement strategies to enhance efficiency and effectiveness.

Nothing creates solidarity among teams and departments like shared goals. So be sure to get everyone involved to boost camaraderie. 

Setting business goals requires careful consideration and planning. By defining specific and measurable targets, you can track progress and make necessary adjustments along the way.

Here are the steps to effectively set business goals.

Step 1: Identify key areas to improve in your business

Start by assessing the current state of your organization. Identify areas that require improvement or growth. This could include increasing revenue, expanding your customer base, improving employee satisfaction, or enhancing product offerings.

Step 2: Choose specific and measurable goals 

Setting clear and specific goals is essential. Use the SMART goal framework to ensure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of setting a vague goal like “increase revenue,” set a specific goal like “increase revenue by 15% in the next quarter.”

Step 3: Prioritize which goals to tackle first

Not all goals are equally important or urgent. Evaluate the impact and feasibility of each goal and prioritize them accordingly. By ranking your goals, you can focus your efforts and resources on the most critical objectives.

Step 4: Break down your goals into smaller milestones

Breaking down each goal into smaller, manageable tasks makes them more attainable. Assign responsibilities and set deadlines for each step. This approach helps track progress and ensures accountability.

Step 5: Decide what your Key Performance Indicators (KPIs) will be

Key Performance Indicators (KPIs) are metrics used to measure progress toward your goals. Set realistic and relevant KPIs that align with your objectives. For example, if your goal is to increase customer acquisition, a relevant KPI could be the number of new customers acquired per month.

Now that you have set your business goals, it’s time to take action and work toward achieving them. Here are some tips to help you stay on track:

1. Write down your action plan 

Develop a detailed plan of action for each goal. Identify the necessary resources, strategies, and milestones to achieve them. A well-defined action plan provides a road map for success.

2. Foster a culture that’s goal-oriented

Encourage your employees to embrace and contribute to your goals. Foster a culture that values goal setting and achievement. Recognize and reward individuals or teams that make significant progress toward the goals.

3. Regularly track and evaluate progress

Monitor the progress toward each goal and make adjustments as needed. Use project management tools or software to track and visualize progress. Regularly review and evaluate your performance to ensure you’re on the right track.

4. Seek feedback and adapt

Gather feedback from employees, customers, and stakeholders. Their insights can provide valuable perspectives and help you refine your goals and strategies. Adapt your approach based on feedback to increase your chances of success.

5. Stay focused and motivated (even when you fail)

Staying motivated to achieve goals is difficult, especially when you come up short or fail. But don’t let this set you back. Continue pushing forward with your goals or readjust the direction as needed. Then do whatever you can to avoid distractions so you stay committed to your action plan.

Also, remember to celebrate small wins and milestones along the way to keep your team motivated and engaged.

To provide inspiration, here are some examples of common business goals:

1. Revenue growth

Revenue growth is a business goal that focuses on increasing the overall income generated by the company. Setting a specific target percentage increase in revenue can create a measurable goal to work toward.

Strategies for achieving revenue growth may include:

  • Expanding the customer base through targeted marketing campaigns
  • Improving customer retention and loyalty
  • Upselling or cross-selling to existing customers
  • Increasing the average order value by offering premium products or services

Example: A retail company sets a goal to increase its revenue by 10% in the next fiscal year. To achieve this, it implements several strategies, including launching a digital marketing campaign to attract new customers, offering personalized discounts and promotions to encourage repeat purchases, and introducing a premium product line to increase the average order value.

2. Customer acquisition

Customer acquisition focuses on expanding the customer base by attracting new customers to the business. Setting a specific goal for the number of new customers helps businesses track their progress and measure the effectiveness of their marketing efforts.

Strategies for customer acquisition may include:

  • Running targeted advertising campaigns
  • Implementing referral programs to incentivize existing customers to refer new ones
  • Forming strategic partnerships with complementary businesses to reach a wider audience

Example: A software-as-a-service (SaaS) company aims to acquire 1k new customers in the next quarter. To achieve this, it launches a social media marketing campaign targeting its ideal customer profile, offers a referral program where existing customers receive a discount for referring new customers, and forms partnerships with industry influencers to promote its product.

3. Employee development

Employee development goals focus on enhancing the skills and knowledge of employees to improve their performance and contribute to the organization’s growth. By setting goals for employee training and skill development, businesses can create a culture of continuous learning and provide opportunities for career advancement.

Strategies for employee development may include:

  • Offering training programs
  • Providing mentorship opportunities
  • Sponsoring professional certifications
  • Creating a career development plan for each employee

Example: A technology company aims to have 80% of its employees complete at least one professional certification within the next year. To achieve this, it offers financial support and study materials for employees interested in obtaining certifications, provides dedicated study time during working hours, and celebrates employees’ achievements upon certification completion.

4. Product development

Product development goals focus on creating and improving products or services to meet customer needs and stay competitive in the market. Setting goals for product development can prioritize your efforts and so you can allocate resources effectively.

Strategies for product development may include:

  • Conducting market research to identify customer preferences and trends
  • Gathering customer feedback through surveys or focus groups
  • Investing in research and development to create new products or enhance existing ones
  • Collaborating with customers or industry experts to co-create innovative solutions

Example: An electronics company sets a goal to launch three new product lines within the next year. To achieve this, it conducts market research to identify emerging trends and customer demands, gathers feedback from its target audience through surveys and usability testing, allocates resources to research and development teams for product innovation, and collaborates with external design agencies to create visually appealing and user-friendly products.

5. Social responsibility

Social responsibility goals focus on making a positive impact on society or the environment. These goals go beyond financial success and emphasize the importance of ethical and sustainable business practices. Setting goals for social responsibility allows businesses to align their values with their actions and contribute to causes that resonate with their stakeholders.

Strategies for social responsibility may include: 

  • Implementing sustainable practices to reduce environmental impact
  • Donating a percentage of profits to charitable organizations
  • Supporting local communities through volunteer programs
  • Promoting diversity and inclusion within the organization

Example: A clothing retailer aims to reduce its carbon footprint by 20% in the next two years. To achieve this, it implements sustainable practices, such as using eco-friendly materials, optimizing packaging to minimize waste, and partnering with ethical manufacturers. It also donates a percentage of its profits to an environmental conservation organization.

Setting and achieving goals is what it takes to be successful in business. By following the steps outlined in this article and incorporating the tips provided, you can effectively set and work toward your goals. Remember to regularly evaluate progress, adapt as necessary, and celebrate milestones along the way.

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  1. How to write the location section of your business plan?

    Business location. In this section, you need to state the full location and the exact address of the business. If possible, ensure that your business is listed on Google Maps so that readers can view the location easily. Mention all of the locations if you have more than one branch.

  2. Business Location Analysis Example

    Business Plan Location Analysis. There is a saying that the three most important considerations in business are location, location, location. If you're starting a new business that operates primarily offline, location is critical. ... Some of this material may overlap with your marketing plan (download a free sample marketing plan).

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    A business location strategy is your plan to find the optimal location for an organization. This requires an analysis of company goals and objectives and finding a location that meets them. Your company's location strategy should align with any overriding corporate structure or strategy. Some businesses require foot traffic, such as retail ...

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  5. How to Write a Company Overview + Examples

    1. Cover the basics. Start by listing and grouping your business information into the appropriate sections. Depending on what you intend to do with your plan, this may be all you need for now. This is a high-level overview of your business; the most important thing is having all the necessary information in one place.

  6. 550+ Sample Business Plan Examples to Inspire Your Own

    The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea. The structure ditches a linear format in favor of a cell-based template.

  7. Business Plan

    A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan: 1. Title Page. The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date ...

  8. How To Write the Operations Plan Section of the Business Plan

    The operations plan is the section of your business plan that gives an overview of your workflow, supply chains, and similar aspects of your business. Any key details of how your business physically produces goods or services will be included in this section. You need an operations plan to help others understand how you'll deliver on your ...

  9. How to Write a Simple Business Plan

    Write the Executive Summary. This section is the same as in the traditional business plan — simply offer an overview of what's in the business plan, the prospect or core offering, and the short- and long-term goals of the company. Add a Company Overview. Document the larger company mission and vision.

  10. How to Choose the Right Business Location 10 Factors to Know

    These are some of them you should consider before picking your business location: 1. Proximity to target customers. In most cases, it pays to be in a location where there's a high demand for your product. However, depending on your business type, you can decide whether you need to be near your target customers.

  11. Examples of Company Overviews in a Business Plan

    What To Include in Your Company Summary. The company summary section of a business plan should include: Business name. Location. Legal structure (i.e., sole proprietorship , LLC , S Corporation, or partnership) Management team. Mission statement. Company history (when it started and important milestones)

  12. 4 Factors to Consider During Business Location Analysis

    While the needs of each business differ, there are several factors that every organization will need to consider when performing site selection analysis: Demographic Map using Geographic Boundaries. 1. Demographic Analysis. Perhaps the most important part of analyzing a proposed site is establishing what type of population surrounds it.

  13. How to Write a Business Plan: Target Market Analysis

    Sections of your market analysis should include: Industry Description and Outlook. Target Market. Market Research Results. Competitive Analysis. Remember to properly cite your sources of information within the body of your market analysis as you write it. You and other readers of your business plan, such as potential investors, will need to ...

  14. Business Location: Meaning, Examples & Strategies

    A business location strategy is a plan used to find the best location for your business to reach its goals and objectives. A good business location strategy usually involves location analysis. Business location analysis is a process wherein a business compares different locations' characteristics in order to select the most suitable location ...

  15. 24 of My Favorite Sample Business Plans & Examples For Your Inspiration

    8. Panda Doc's Free Business Plan Template. PandaDoc's free business plan template is one of the more detailed and fleshed-out sample business plans on this list. It describes what you should include in each section, so you don't have to come up with everything from scratch.

  16. 7 Steps to Choose the Perfect Business Location

    It's essential to conduct market research to understand the preferences and expectations of your target market. Consider factors such as: Remember, your location is an extension of your brand. Choosing a location that aligns with your customer's expectations will help you attract and retain them. 4.

  17. Simple Business Plan Template (2024)

    Our simple business plan template covers everything you need to consider when launching a side gig, solo operation or small busi. ... Brick-and-mortar location: For in-store sales, ...

  18. Business Location Analysis: Definition, Objectives, Factors

    To hold minimum investment and operational cost. The foremost objective in selecting an ideal location is to ensure minimum investment and lower operational costs. This could be achieved if the business is located in a place where raw materials, labor, transport, and power are easily, regularly, and sufficiently available.

  19. Business Location Example in a Business Plan

    Sample Business Plan Template; Business Plan Location Sample. by Meir Liraz. Here is an abbreviated example of a serious sample business plan examples templateproposal. It is provided to give you a feeling for the style of writing that is used in a business plan, and is not intended to be a comprehensive guide of what should be covered in a ...

  20. Business plan LOCATION AND MARKETING PLAN .docx

    5. LOCATION OF BUSINESS 5.1 Physical location of the project Address for location: Lot 1118 Kampung Sungai Lang, Jalan Turi 42700 Bamting, Selangor 5.2 Advantages of location: Our business is located at Lot 1118 Kampung Sungai Lang, Jalan Turi, Banting, Selangor. We choose this location because it is one of the main attraction location in Selangor especially for career people and also the ...

  21. Tips for Opening Another Business Location

    Opening and operating a second location takes as much work and consideration as your initial one. The following tips can set you up for success. 1. Create a business plan. A business launch and expansion should always include a detailed plan. Business plans can be written in two formats: a lean startup plan or a traditional plan.

  22. Pie Restaurant Business Plan Example

    Pies come in Lunch size (5 inch, $3.25 to $3.75), Family size (9 inch, $10.75) and Party size (2 inch, $10.00 per dozen). There are also spinach and sausage rolls ($2.50 each) and rotational weekly specials that include, Thai Curry Chicken, Indian Butter Chicken, plain Chicken, Ham and Brie, and Beef Stroganoff.

  23. How To Set Business Goals (+ Examples for Inspiration)

    Tips to achieve business goals. Now that you have set your business goals, it's time to take action and work toward achieving them. Here are some tips to help you stay on track: 1. Write down your action plan . Develop a detailed plan of action for each goal. Identify the necessary resources, strategies, and milestones to achieve them.