Business Plan: Convenience Store in United Hills Village, Paranaque

1. Executive Summary:
Our convenience store aims to cater to the needs of the 20,000 residents in the subdivision by
providing a wide range of consumer goods and common items typically found in convenience
stores. With a starting capital of 800,000 pesos, we plan to establish a convenient and
accessible store that meets the daily needs of the community. The cost allocation of the
capitalization is as follows: (in Philippine peso)

i. commercial space rental cost (for six months) -- 120,000.00

ii. renovation, installation of signage, lighting, display racks – 80,000.00
iii. refrigeration, airconditioning and other equipment -- 150,000.00
iv. inventory -- 400,000.00
v. Salaries (3 months) -- 50,000.00

2. Market Analysis:
- The subdivision's population of 20,000 residents provides a significant customer base for our
convenience store.
- The demand for consumer goods and common items is consistent and essential for daily living.
- Competitor analysis shows limited competition in the immediate area, providing us with an
opportunity to capture a significant market share.

2.2: Competitor Analysis:

Competitor A:
Competitor A is operated by octogenarian owners, leading to slow service due to their age.
Additionally, customers are not allowed entry to the actual store, resulting in limited choices
and a lack of browsing opportunities. This restriction may deter customers looking for a wide
range of products and a seamless shopping experience.

Competitor B:
Competitor B offers a limited inventory focused primarily on junk foods such as chips and soda,
lacking other essential necessities. This narrow product range may not cater to customers
seeking a variety of items, including everyday essentials. The lack of diverse options could
potentially drive customers to seek alternative convenience stores that offer a more
comprehensive selection of products.

2.3 Competitor Operations:

Competitor A and Competitor B are convenience stores that operate from 7 am to 8 pm, leaving
subdivision residents without viable options outside of those hours. This limited operating
window creates a gap in service availability for customers who may require convenience store
services beyond the specified hours. As a result, residents may face inconvenience and
potential dissatisfaction due to the lack of access to essential goods and services during late-
night or early morning hours.

Competitor A and Competitor B's similar operating hours suggest a lack of differentiation in
terms of convenience and accessibility for customers. Both competitors may be missing out on
a significant market segment that requires services outside of the standard operating hours.
This presents an opportunity for a new entrant or an existing competitor to capitalize on this
gap in the market by offering extended operating hours to cater to the needs of subdivision
residents who require access to essential goods and services beyond the typical convenience
store hours.

3. Products and Services:

- Our convenience store will offer a variety of consumer goods, including groceries, snacks,
beverages, personal care items, household essentials, basic electrical and hardware items, and
other common convenience store items. We will also sell packed meals and ready to cook
items.
- We will focus on providing quality products at competitive prices to attract and retain
customers.

4. Marketing Strategy:
- Implement targeted marketing campaigns within the subdivision to create awareness and
attract customers.
- Utilize social media platforms, local advertising, and promotions to engage with the
community.
- Offer free delivery to the buyer’s residence for purchases above Php 500.00 while all other
items regardless of quantity and amount shall have a 20% surcharge for delivery. For ex., a liter
of soda would cost Php 70.00 in-store but would be Php 84.00 when ordered for delivery. This
20% buffer is to be considered as service charge to be allocated to our staff in charge of
delivery.

5. Operations Plan:
- Secure a strategic location within the subdivision with high foot traffic and visibility.
- Implement efficient inventory management systems to ensure adequate stock levels and
minimize wastage.
- Hire a team of trained staff to provide excellent customer service and maintain store
cleanliness.

6. Financial Projections:
- Initial Investment: 800,000 pesos
- Projected Monthly Revenue: 300,000 pesos
- Projected Monthly Expenses: 80,000 pesos
- Break-even Point: 4 months
- Profit Margin: 20%
7. Growth Strategy:
- Expand product offerings based on customer feedback and demand.
- Consider opening additional convenience store locations in neighboring subdivisions to
increase market reach.
- Establish partnerships with local suppliers to ensure a steady supply of products.

8. Conclusion:
Our convenience store aims to become a trusted and convenient shopping destination for the
residents of the subdivision. With a focus on customer satisfaction, quality products, and
efficient operations, we are confident in the success and growth of our business.

This business plan outlines our strategy for establishing and operating a successful convenience
store catering to the needs of the community.