BUSINESS PLAN

Bargain House (Discount Store)

Business Summary
Bargain House is a start-up retail store in Dewsbury, West Yorkshire that will provide
household merchandise options at bargain prices. Bargain House will sell household
products and will provide good customer service to its customers.
We will invest from our personal savings toward this business venture, with any additional
credit and overdraft facilities reuired. With an aggressive marketing plan, Bargain House
e!pects to e!perience steady growth as it becomes more familiar to the general public.
With the financing in place, Bargain House will be able to successfully open and maintain
operations through year one. "apital investment in the business will provide customers
with a store that will cater to the needs of those on fi!ed incomes such as low income
families, the elderly, and the large student population in the Dewsbury area.
#he property will be leased and located in the heart of Dewsbury #own "entre. Dewsbury
is located on the $%&', ( miles south west of )eeds, * miles south of Bradford, + miles
west of ,unction -* of the .%- and ' miles east of ,unction +/ of .0. Huddersfield is (
miles to the south west, and Wakefield some % miles east.
Objectives
1ur aim will be to2
0. #o provide a wide range of merchandise at reasonable prices.
-. #o achieve a healthy profit margin within the first year.
'. #o achieve a modest net profit by year two.

ission
Bargain House will provide a variety of merchandise options at bargain prices.
Start!u" Summary
#he building will be leased with a down payment for the initial rent. 3tart-up costs will be
financed mainly through our own private investment.
$ll of the main e!penses have been taken into account, including2
.arketing4advertising
)egal fees
5etail merchandising4designing fees for store layout and store renovations
Start!u" #e$uirements
Start!u" %osts&
)egal 6 0 ///
3tationery 6 -//
.arketing 6 0 ///
3hop 7itting 60& ///
3hop-front 6 & ///
3ignage 6 0 &//
8uipment 6 0 &//
3helving 6 & ///
3tock 6'/ ///
'ota( Start!u" E)"enses *+, -,,
Start!u" #evenue&
1wn "apital 6 &/ ///
9nterest-free "redit 6 0/ ///
Bank 1verdraft 6 & ///
'ota( Assets * +. ,,,
Pricing an/ %osting
ont0(y 1orecast
E)"ecte/ Sa(e * 2+ ,,,
)ess2 :urchasing 6 '/ ///
Estimate/ 3ross Pro4it * 5+ ,,,
5unning "osts2
5ent and 5ates 6 - &//
8lectricity 6 -&/
Wages and ;9 6 ' &&/
9nsurance 6 0//
.otor 8!penses 6 -//
:rint, 3tationery and :ackaging 6 -&/
:rofessional 7ess 6 0&/
5epair and 5enewal 6 0//
#elephone 6 &/
$dvertising 6 0//
1ther 6 -&/
Drawings 6 ' ///
'ota( E)"enses * 5, ..,
Estimate/ Net Pro4it * . 2.,
Pro/uct an/ erc0an/ise
Bargain House will sell a variety of uality discount merchandise. #he types of
merchandise we will carry will include items such as dish-ware, household goods, toys,
cosmetics, confectionery, greeting cards, and a list of items are too e!haustive to list.
#he merchandise that is purchased will consist of some well-known manufacturers such as
:rocter < =amble, Walkers, "adbury>s as well as a number of other generic branded
companies. Deliveries will arrive at least once a week and we will continue to find new
product lines that can be added to our inventory.
We will be able to sell products at very low prices, because we will purchase items from
discontinued lines, seconds, over runs, etc., that cannot be sold to a manufacturer>s usual
retail customers.
ar6et Ana(ysis Summary
We e!pect sales to increase steadily as consumers find that they can purchase a variety of
uality items at bargain prices. We intend to tap into the retail market with pricing that will
encourage uantity buying, and our pricing will attract consumers on fi!ed budgets.
1ur target market is the lower income portion of the Dewsbury community. #his includes
working class individuals, the elderly, and students, many of whom are price conscious
and looking to find a value for their money.
ar6et Segmentation
Bargain House intends to provide affordable shopping alternatives to working class
families with incomes under 6-&,///, for elderly people on fi!ed incomes, and also a large
student population that tend to be on strict budgets. #his market constitutes the general
public who are looking for affordable merchandise at bargain prices.
'arget ar6et Segment Strategy
We focus on the price conscious consumer who are looking for value as well as uality. 9f
we can attract and keep these consumers, the word will continue to spread about what our
store has to offer.
%om"etition an/ Buying Patterns
9n an ever changing economy, keeping up with the consumer is ever so important, so
providing a large selection of bargain-priced items is our intended goal.
"onsumers demand good customer service, with fair pricing, and a convenient location.
#he selection of merchandise in the store will be very important.
Strategy an/ Im"(ementation Summary
Bargain House uses a strategy of total market service. 1ur promise is in our location and
the products we sell and the people we attract..
We will present a store that is easy to shop in with a large variety of merchandise to
choose from.
Strategic Assum"tions&
0. 8very person with income limitations or on fi!ed incomes is a potential customer.
-. .arketing to these segments of the population will lead to an e!pansion in overall
market growth.
%om"etitive E/ge
1ur location is a very important competitive edge. We are located in the middle of the
precinct, which is in the heart of Dewsbury town centre and has a high appeal to many
different kinds of consumers. #here is a good mi! of high and low end shops. With easy
access from bus and train station.
$nother competitive edge we will have over our competition is the large variety of
merchandise we will carry. We will try to carry as many name brand items at a discount
price as possible.
Sa(es 1orecast
We e!pect to e!perience a steady growth throughout our first year even though we are a
new business enterprise. $s we become more familiar to the public, we e!pect to gain
more market share and would like to see progressive growth as we head into the following
year.