Executive summary
The context is based on starting up a retail business. There are many management strategies and capital raising strategies which include any kind of business plan. There are some stages for the development of the retail business plan.
Start-up costs are the basic stage for a start-up business. Registration costs are important for legal authorization for the retail start-up business. The “e-commerce platform” found that 23% of the business wave was surprisingly associated with the cost of start-up. The federal level of registration is helpful for the administrative rules associated with the business.
Adequate insurance and insurance plan, loans should be there in the case of accidents or any kinds of liabilities. The crowdfunding platforms help to raise money via the internet by different platforms.
Venture capital is another important part of raising the capital market. Enterprises sometimes fail to understand that a huge amount of money is not a solution for every problem regarding the business. The neglect of other business operations might create effects for future distortion in the business.
Project management for business is important. The retail business needs a project management part which contains many benefits. The business plans, analysis, tracking of business-related programs, processes, data analysis, and team management are part of it. This can create a “good fit” for the validation of ideas. A good leader can lead the business team for better future management. When the “retail projects” are delivered, the benefits come from the retail transformation. Running of “high profile tests” has become frequent nowadays. The location and market management plans are very crucial for obtaining the retail business. For the market research segment. The description of a business plan is very important which leads to the correct sections in the market. The market size implies how huge the research market is. Start-up retail businesses should know their competitors and act accordingly for market growth. Statistical forecasts and market trends are important for research and these help to know the market better. Demographic information includes the age, annual income, gender, and surroundings of the customers. On the other hand, the marketing plan has 4 segments which include the modern, high-end, traditional, and low-end. The pricing strategy is essential for this plan. This helps owners to limit their investment and also helps to understand the cost and production of the market for the retail start-up. The promotional tactics are included in the plan which helps to advertise the brand and attract customers and investors. The sales process intends to describe the process related to the sales perspective where the analysis of the sales can be done. The management plan is there which has a crucial role for the start-up business. The angel investors play a pivotal role for the start-up as well. The organizational structure has to be correct and adequate for the owner; otherwise, it can lead to the loss of the business. The management team should be skilled, and experienced and should have good knowledge about the market structure and market strategies. Technological knowledge and software development are crucial for retail business.
| Stages of development | Amount of money needed at this stage | Potential source | What is the money for | % ownership willing to give up in round | Founder’s percent ownership |
| Business plan | $500 | Owners, owners’ contacts, credit cards, loans | Understanding the plan of the business, balance sheet of the investments, market information, development of websites | 10% | 100% |
| Management plan | $2000 | Grants, incubators, accelerators, skilled and knowledgeable, and experienced leaders for the management, management process | Retailing business ownership, management segments for the business, development of the management funding and working process, data analysis, project management, “sales per employee”, KPI indicators, “stock keeping units (SKU) per purchase” | 20% | 80% |
| Seed | $15000 | Venture capital | Investment for the business, to accelerate the company’s growth, industrial knowledge, industrial connections with various retail industries, expanding business, monitoring the pre-sales, | 20% | 80% |
| Seed | $20000 | Angel investment | To get multiple investors, develop the retail business capital, high motivation for the future, create “small business development centers”, and access to “Angel Capital Association (ACA)” | 10% | 90% |
| Seed | $3500 | Business capital and analysis | To describe the retail business’s nature, “easy to read”, technical knowledge, various business perspectives, creativity, gathering more information about the future market structure, the analysis of trend values for the business, and getting options for more investments. | 30% | 70% |
| Expansion | $50000 | Angel investors | To bring “equity ownership interest”, finding annual earnings, obtaining future needs, taking big risks for the angel investors, and small risks for the company, angel investors’ knowledge can be helpful for the future of the retail business, ample amount of resources, opportunities for now investors. | 15% | 85% |
