BUSINESS PLAN

Unit Standard 9685

Student Name: Jatinder Singh Student ID: 4463 NIS Level 6 Submitted To: Terry Keillor

BUSINESS PLAN

Business Name: Gill Liquor Store Address: 45, Lake Road, Rotorua, New Zealand Phone No: 078456178 Fax: 1-515-965-1426 Mobile: 00642102616130 Email: jatin.gill@yahoo.com Website: www. gillliquorstore.com

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Executive Summary
Gill liquor store will be located in 45, Lake Road, Rotorua, New Zealand. I choose this area because it is residential and very busy area. Objective of my business will be To achieve minimum 5% market shares in liquor market. To increase sales 50% in next 2 years. To introduce our products in new market. Expand sales to existing customers. Lower the cost than competitors. Wider the profit margins. Give superior customer service.

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CONTENTS
The Enterprise.5-6
Location Facilities Vision Products Competitive Advantage

Market.6-9
The Industry SWOT Analysis Market size and Growth rate Target Market Competition Pricing Policy Promotion and advertising

The Organization..9-11
Staff Supporting Professionals

Key Risks and Time Line11

Key Risks Time Line

Prospective Financials..12-13
Set up costs Operational Cost

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The Enterprise
I am going to start a liquor store in Rotorua (New Zealand) in 2012. Now I am working in liquor store as a customer service represtative so I have a lot of knowledge about liquor stuff. Now I am pursing diploma of business to get the knowledge about skills that are required to start a business. I always like to do work according to my choice so I think if I will start my own business then I will be able to work according to my choice. I choose this business because I think it is most profitable business and I have experience in this field. So, next year when my study will finish then I will start this business. Name of my liquor store will be Gill Liquor Store. In my liquor store there will be large range of liquor stuff like wines, beers, whiskeys, rums etc. I will hire experienced management team that will help it to be on top in next 2-3 years.

Location
Davis Corner Market Busy Residential Area Good Space For Parking

Facilities
350 m2 Two checkout Window display Trolleys available for customer Big store room Staff room Toilets ( Male, Female and Disable) Big Cool room (chiller) Shelves for products Eftops, cash and credit card Cabinet

Vision

To be premier liquor store in 2016. To increase revenue 50% in next 2015. To increase product range in next two years. To offer best customer service as compared to other.

Products
Beers Page 5

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Whiskeys Vodka R.T.Ds Bourbon Rum Brandy Liquor Wines Sherry Ports Soft Drinks Smokes Calling Cards Ice Bags Recharge Bouchers Chew gums

Competitive Advantages
I will offer best customer service to satisfy to the customers. I will try to match the price of most products with other liquor stores. Moreover I will put some products on special every weekend to attract the customers. I will give special discounts to my regular customers and I will inform the regular customers about specials in store by sending them e-mails. I will also advertise super specials in newspaper once or twice a month.

The Market
The Industry
Liquor industry is one of the biggest and rapidly growing industries. Most of the New Zealand people are crazy about liquor stuff. More than 80% people in New Zealand drink alcohol stuff (specifically Maori and Kiwi people). Most of the liquor products are made in New Zealand. Products like beers, RTD, some vodka, bourbon, whiskey etc. are specifically made in Auckland (Independent Liquor, DB breweries, NZ breweries and Lion Nathan are main suppliers). New Zealand is very famous in whole world for its wines. Hawks Bay, Marlborough is the main regions where the wines are made.

SWOT Analysis
I will also do the SWOT analysis to know about the strengths, weaknesses, threats and opportunities for my business.

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Strengths
Location (near Residential Area ) Experience working in liquor store for 18 months (stock management, retail sales, cash handling, good knowledge of suppliers) Trends of liquor market(increase in demand of liquor stuff)

Weaknesses
Lack of finance Do Not have Knowledge of Forklift operations Lack of establish good will in the market

Opportunities
Locate store in Rotorua (not much competition in area) Government Policies (decrease taxes, give subsidies ) To be number one liquor store (with help of experienced staff)

Threats
Theft Natural Disaster (earthquake, flood etc.) Competitors Price Policy Government policies (increase in taxes) Customers behaviors (change in drinking habits)

Market size and growth rate

Market size is total numbers of sales in market. Liquor market is very large in New Zealand and it is growing day by day. If we talk about Rotorua approximately 35.4% (according to census of 1996) Maori people lives in Rotorua district and these people drinks the more alcohol as compared to other ethnic group. So there is lot of opportunities for my business to grow.

Target Market
I will target market according to geographic, demographic and psychographic segmentation. 1. Geographic segmentation: As I already told I am going to open liquor store in Rotorua, there are large numbers of Maori people over there. I will target particular area where the most of Maori people live because they people drinks more as compared to other ethnic people. Page 7

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2. Demographic Segmentation: I will target young people (18-35) because they drink more than other age groups. The young people drink more because they have good stamina. 3. Psychographic Segmentation: If we talk about Maori life style even they do not have good living standard but even than they prefer to spend lot of money on alcohol stuff because it has become main part of their life.

The Competition
As we compare Rotorua with other cities like Hamilton and Auckland, there are not much liquor stores. As I aware there are only 4 or 5 liquor store in Rotorua. But some liquor store like Liquor Land and The Mill are well established So I will use Porter, competitor analysis to use the best competitive strategy

Cost Leadership

Differentiation

Cost Focus

Differentiation Focus

Cost Leadership: I will use cost leadership strategy to be best among my competitors. I will lower the prices of my products than my competitors that will help me to attract more customers. Differentiation: I can also use differentiation method to attract more customers. I will offer the different products and services then my competitors. Cost focus: According to this method I will select a segment or group of segments in the industry and will tailor my cost strategy to serving them to the exclusion of others. I will choose the Maori people and will make my pricing policies according to them.

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Differentiation Focus: In this method we can select a segment of people that will use differentiation strategy to serve that segment. I will use the cost leadership strategy and Cost focus strategy to attract the more customers because I will offer low price at bulk sales that will help to increase the sales of my products.

Pricing Policy
As I have been working in liquor store from last 18 months so I aware about the fact that Maori people are very price conscious. So I will keep the price of my products low to target them because my liquor store will be on that place where most of Maori people live.

Promotion and Advertising

I will use different methods of advertisement like Newspaper Pamphlet Radio Internet

I will spend more on advertisement in local newspaper because I think this is the best way to tell people about your products.

The Organization
Staff
To start my business I will need experienced staff that can manage will with help of their experience and will be help for the growth of my business.

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Position
Manager

Units
1

Roles Responsibilities

and

Hiring the staff, ordering and receiving the products, listening and solving customers complaints, changing the price of products, maintaining coordination between staff Train the staff, evaluate the performance of staff, assign the work to staff Serving the customers, follow the instructions given by manager and supervisor Protect the products and staff

Supervisor

Customer represtative

Security Guard

Supporting Professionals
Position
Lawyer

Roles and Responsibilities

Tell about liquor law of country, state or city and help to get permission to open liquor store by doing all legal proceeding that needed. Manage all financial information like preparing profit and loss statement etc.

Accountant

Core values
There will be some core values that will be followed by staff members. 1. Excellent customer services: My business will provide excellent customer services and we will satisfy our customers needs and we will honor the suggestions of our customers. Page 10

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2. Teamwork: All our staff will work as a team and we will support each other, care each other and help each other. 3. Balance: We will create balance between healthy work and social responsibilities of our staff members. 4. Integrity: We will work with honesty and integrity and we will not compromise truth. 5. Community work: We will help to improve the community where we will work and live. 6. Passion for results: We will show pride, dedication, and enthusiasm in everything that we will do. We will be committed to selling high quality products.

Risk and Timeline

Risk
Risk Death / Sickness of Manager Mitigation Regular Medical checkups Health Insurance Train backup manager Use experienced staff Full training to new staff Use security cameras Security Alarms Insurance cover Insurance, Fire Cylinder and fire hose Life Jackets Insurance

Inadequate Performance

Theft

Natural disaster like Earthquake, fire, flood Financial collapse Share market

Timeline
Milestone
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Business Plan Arrange Finance Locate Building/Land Purchase Equipment Hire Staff Setup Business install equipment - furnishings Train Staff Advertising Opening Month Review Operations (week 1)

Date
April 2012 April 2012 July 2012 Sept 2012 Sept 2012 Oct 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Page 11

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11. Review Operations (month 1) Feb 2013

Prospective Financial
Set Up Costs
Total (In dollars) Leased property Computer, printer etc Furnishings Chairs Tables Shelves Cabinet Counter Lighting Air conditioner Heater Refrigerators Tills 320 200 600 500 650 1,000 700 400 1,100 500 20,000 3,000

Staff salary Products Electricity charges Telephone charges Internet charges Taxes Insurance charges Advertisement charges First Aid Box Music System Fire Cylinder Security Alarms and Cameras

5,000 90,000 1,000 400 200 500 300 600 50 1,000 100 2,000

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Transport charges 10,000

Total Cost

1, 34,150

Cash Flow Statement

Operational Jan Feb Costs Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Electricity Rent Phone Internet Salaries Advertising

500

500

500 500

500

500

500

500

500 500 500

500

6,000 24,000 1,200 1,800 60,000 2,400 6,000 1,200 1,200 268k

2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 100 100 150 100 100 100 150 150 100 150 100 100 100 100 100 150 100

150 150

150 150 150 150 150

5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 200 200 200 200 500 100 100 16k 200 200 500 500 100 100 20k 200 200 500 500 200 200 200 200 500 500 500 500

Vehicle costs 500 500 500 Banking Insurance Products

Totals

100 100 100 100

100 100

100 100 100 100 100 100

100 100 100 100 100 100 100 100 30k 32k 38k

10k 10k 15k

20k 22k 24k 30k

18650 18650 23650 24650 28650 28650 30650 32650 38650 38650 40650 46650 322150

Income Hot Stuff Cool Room Stuff Specials Others Totals

Jan Feb Mar Apr May Jun July Aug

2000 2500 5800 3700 4200 4400 5000 5500 5800

Sep
6000

Oct Nov Dec

6500 7800

Total

8100 61500

6200 9000 9700 9900 11000 12000 12800 13500 14000 17000 19000 139900

7000 7500 11000 12500 19000 22000 23000 24200 26000 28000 31500 400 600 1000 1150 1200 1300 1500 1550 1600 1650 1800

33000 244700 1900 15650

15200 16800 24700 26550 34500 39300 42000 43350 47100 50150 58050 62000 337500

Net Cash flow

-3450 - 1850 1050

1900

5850 10650 11350 10700 8450

11500 17400 15350

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Overdraft

-3450 -5300 -4250 -2150 3700 14350 25700 22050 30500 42000 59400 74750

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