Business Plan: Millennium Mart Start-up Retail Store

This report presents a detailed business plan for Millennium Mart, a start-up retail store to be launched in Quebec, Canada. The plan outlines the business's financial structure, including funding from private investors and dividend payouts. It includes a market overview that analyzes the retail landscape, considering factors like sales trends and the impact of e-commerce. The report also details the nature of the business, covering its name, location, vision, mission, legal structure, and business model, and incorporates competitor analysis using Porter's Five Forces. Furthermore, it addresses marketing and financial strategies, incorporating break-even, cash flow, and profit and loss projections. The business plan aims to provide a comprehensive framework for the successful launch and operation of the Millennium Mart retail store, focusing on offering a variety of merchandise at competitive prices and providing excellent customer service.

Running head: MARKETING
Business Plan of Start-up Retail Store: Millennium Mart
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The aim of the report is to provide a business plan for a start-up retail store, Millennium Store, to
be opened in Quebec, Canada which puts across amazing merchandize options at negotiable
prices. The finance for starting of the retail store would come from two private investments. The
private investors are believed to donate certain amount of equity that will be clarified by end of
the 36 months. Dividends will be paid in quarterly manner on the remaining amount of equity.
The business report will provide an overview of the market which will help in understanding
how the business will perform. The report will also describe the nature of the business by
focusing on the name and location, vision and mission, business model and the kind of business
ownership. The report will also undertake a competitor analysis through Porter’s Five Forces and
identifying the direct and the indirect competition. The report will further take an analysis of the
marketing and the finance strategy.

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Table of Contents
1. Introduction:................................................................................................................................3
2. Market Overview:........................................................................................................................4
3. Nature of the Business.................................................................................................................5
a. Name and Location..................................................................................................................5
(i). Start-up Summary...............................................................................................................5
(ii). Start –up Funding:.............................................................................................................6
Assets of the Company:............................................................................................................6
Liabilities:.................................................................................................................................6
b. Vision and Mission..................................................................................................................8
c. Legal Form of Business Ownership.........................................................................................9
d. Business Model........................................................................................................................9
4. Competitor/Industry Analysis:...................................................................................................12
a. Porter’s Five Forces:..............................................................................................................12
b. Direct Competition:................................................................................................................13
5. Marketing Strategy:...................................................................................................................15
6. Financial Strategy......................................................................................................................18
(i) Break-even Analysis.............................................................................................................20
(ii) Cash Flow Projection...........................................................................................................21
(iii) Profit and Loss Projection...................................................................................................21

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References:....................................................................................................................................23

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1. Introduction:
The report is a business plan with regard to a start-up retail store Millennium Store in
Quebec, Canada. One of the vital points while starting off a retail business depends on right
location. Getting on the ideal business location acts as the sustainable advantage since the
competitor would not be able to steal or copy the spot. Besides, the location also needs to be
closer to the target market. Lack of enough customers can lead to the failure of the business
model. Quebec however has a rich and diversified economy with average potential for the
growth (Bouchard, 2013). The economy is mostly dominated by the manufacturing and service
sectors. But to make enough profit and revenue it is necessary to pull the customers from wider
geographic location. A start –up retail firm is also affected by competitive factors. The ideal
scenario lies in starting distinct business within a market place with little or no such competition.
As far as the financial capital is concerned a retail business can be started in two different
manners. Building it from the scratch or making investments in purchasing an existing model.
Millennial Store has all its investments made by two private investors. In addition to this, it is
also important to understand the legal and the regulatory factors that influence the industry.
Depending on the location, there are certain industries that are hugely regulated while the others
have minimum governmental regulations. It has been found that looser regulations make things
easier for a start up business. In this regard, Quebec has moderate levels of regulations imposed
on the business.
. The business plan in this particular report focuses on market overview, nature of
business, industry or competitor analysis, marketing and finance strategy.

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2. Market Overview:
The overall retail sales of United States grew by 6.3 percent whereas the grocery sales
grew by 2.4 percent (Willer, Lernoud & Kemper, 2018). Retail stores in Canada have been found
to maintain a healthier growth rate with signs of slowdown during the 2018 (Minaker et al.,
2016). Nevertheless, the real GDP was expected to rise by 2 percent in spite of the uncertainties
resulting from the Free Trade Agreement of North America. The bricks and mortar strategy
remained an important aspect of retailing (Pauwels & Neslin, 2015). In spite of some of the
retailers closing down the physical stores, the concept of bricks-and- mortar has been considered
important as part of the overall strategy for retail. Many retailers have launched experience shops
in order to connect with the consumers in newer ways and have provided immersive and
engaging customer experience in the stores. Private label have been found to gain power in most
of the categories and also won the trust of consumers in Canada (Schermel et al., 2013). Initially
considered as lower priced products with average quality, the producers have focused more on
the betterment of the materials or ingredients for attracting the value conscious consumers.
It has been found that internet retailing have been set for capturing increasing level of
share (Brynjolfsson, Hu and Rahman 2013). The share of the internet retailing have been rising
at a faster pace in Canada with e-commerce remaining the sole focus of Canadian retailers in
driving growth with competitive retail ambience. Challenges from bigger retailers have forced
the retail stores in Canada in building omni-channel strategies thereby offering fully integrated
experience of shopping for the customers (Cho, 2015). In spite of overall retail overseeing a
present growth value in forecast period, mid market retailers of Canada needs to compete in

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tougher retailing environment where most of the consumers are either trading up or trading
down. The affluent customers will continue to contribute towards the growth of luxury brands
but lower prices would act as a key competitive advantage within a competitive market with
variety of discounters, stores and fast fashion firms (Atwal & Bryson, 2014).
Experts with the industry have predicted that 2019 could be quite challenging for some of
the retailers of Canada although there have been opportunities for incomparable brands in
different markets. International retailers entering the country experienced slower growth in the
past year since leasing of retail space has been quite challenging (Brydges, 2018). Besides,
Canada have also experienced bankruptcies and store closures although there have been success
opportunities provided the retailers addresses the newer reality.
3. Nature of the Business
a. Name and Location
The Millennium Store represents a start-up retail business in Quebec, Canada that puts
across interesting options for merchandize at reduced value. The finance is provided by two
independent investors. As far as ownership is concerned, the first investor has 60 percent
ownership while the second investor has 40 percent ownership.
(i). Start-up Summary: The building will be taken for a lease of four years for a down
payment of about $3500. The cost for starting the business would involve the combination of the
owner investment and borrowing on short term basis. The start-up table will show the finance
distribution.

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Additional miscellaneous expenses would include:
 Advertising/marketing consultancy fees for providing assistance in designing the opening
brochures and advertisements
 Fees for legal filings of the start-up retail firm
 Retail designing/ merchandizing fees for minimum renovations and layout.
(ii). Funding for Start –up
Initial expenses for funding $13,000
Initial assets for funding $ 73,500
Overall Necessary Funding $ 86, 500
Assets of the Company:
No Cash Assets from Start-up $31,000
Cash Requirements of Start-up $ 42,500
Additional Cash acquired $0
Cash Balance on starting day $42,500
Total Assets $73,500

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Liabilities:
Present Borrowing $0
Future Liabilities $ 0
Outstanding bills to be paid $6000
Interest free liabilities $500
Total Liabilities $ 6500
Capital (Planned Investment):
First Investor $ 40,000
Second Investor $ 30,000
Others $ 10,000
Additional Requirement for Investment $0

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Overall Planned Investment $80,000
Loss at Start-up Expenses: $13,000
Total Capital: $ 67,000
Figure 1: Diagrammatic Representation of Startup Summary
Source: Created by Author
b. Vision and Mission
The vision of the retail store lies in:

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 Providing wide ranges of merchandize at discounted prices
 Achieving an healthier profit within first year
 Achieving modest level of net profit by the second year
 To remain a vocal and active member within the community and ensure continuous
reinvestment through participation in financial contributions and community activities.
As far as the mission of the firm is concerned, the Millennium Store puts across various
attractive options at negotiable prices. The retail store remains dedicated to the customer service
and provides the patrons with prompt and respectful service. The store will also treat its
employees professionally and also them an appropriate work ambience and fair compensation
levels. The store aims at making each customer feel with the best experience at a negotiable
price.
c. Legal Form of Business Ownership
The Millennium Store will remain incorporated as a corporation in Canada. This will help
in shielding its owners from personal liability or company obligations or debts (Hiller, 2013).
This type of business ownership helps in raising capital from the investors or the financial
institutions. This is form of business ownership is most suitable when doing the business with the
governments and the other business (Bjuggren, Daunfeldt & Johansson, 2013). In this type of
ownership business ownership is mostly paid in form of dividends or salary which allows the
owners in optimizing the tax situation. This kind of business ownership is quite expensive to not
only maintain and set up but whose establishment requires lot of paperwork.
d. Business Model
In order to succeed in business the start up retailer should:

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 Sell broader categories of product
 Ensure an overall satisfaction of 100 percent for the consumers
 Remain an active member of community
 Encourage inputs from the customers.