Business Plan: ShopNow.com - Online Grocery App in Canberra, Australia

This business plan outlines the strategy for ShopNow.com, an online grocery application based in Canberra, Australia. It details the business overview, including the company's name, logo, mission, vision, goals, location, and operating schedule. The plan also covers the legal structure (sole proprietorship), staffing requirements, and establishment requirements. Furthermore, it includes a comprehensive marketing plan with market research, SWOT analysis, competitor analysis, target market identification, and strategies for product, price, place, and promotion. A detailed financial plan is presented, encompassing financial objectives, fixed and variable costs, break-even analysis, and cash flow budget. The plan aims to establish ShopNow.com as a convenient and reliable grocery service in Canberra, connecting local grocers with customers through a user-friendly application and website.

Running head: BUSINESS PLAN
BUSINESS PLAN
Name of the Student
Name of the University
Author Note

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Executive Summary
The report is based on the business idea of a venture named the ShopNow.com application
which can be understood to be a business based in Australia in the capital city of Canberra.
The report follows a systematic format with respect to which, it begins with a brief
description of the different operations of the firm which has then been followed by the details
on the operations, finances and other domains of the business.

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1. Table of Contents
1. Business Overview........................................................................................................................4
1.1 Business name.......................................................................................................................4
1.2 Business Logo and Slogans...................................................................................................4
1.3 Prime Function......................................................................................................................4
1.4 Legal structure.......................................................................................................................5
1.5 Mission Statement.................................................................................................................5
1.6 Vision Statement...................................................................................................................6
1.7 Goals and Objectives............................................................................................................6
1.8 Location................................................................................................................................6
1.9 Operating Schedules.............................................................................................................7
1.10 Staffing requirements............................................................................................................9
1.11 Establishment Requirements.................................................................................................9
1.12 Legal Requirements............................................................................................................11
2. Marketing Plan.............................................................................................................................13
2.1 Market Research.................................................................................................................13
2.2 SWOT analysis...................................................................................................................13
2.3 Competitior Analysis..........................................................................................................13
2.4 Target Market......................................................................................................................14
2.5 Product................................................................................................................................14
2.6 Price....................................................................................................................................15
2.7 Place....................................................................................................................................15
2.8 Promotion............................................................................................................................15
3. Financial Plan..............................................................................................................................17
3.1 Financial Objectives............................................................................................................17

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3.2 Fixed costs and Establishment costs...................................................................................17
3.3 Varaiable costs....................................................................................................................19
3.4 Break even Analysis............................................................................................................20
3.5 Cash flow budget................................................................................................................21
4. Future developments....................................................................................................................23
5. Appendices...................................................................................................................................24
5.1 Logo design.........................................................................................................................24
5.2 Map of business location.....................................................................................................24
5.3 Survey results......................................................................................................................25
5.4 Other financials...................................................................................................................26

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1. Business Overview
1.1 Business name
The name of the business on which the particular business plan is based on is
ShopNow.com. The business is an online grocery application which will be connecting the
different grocers to the customers and allow them to exchange the goods in return of money.
The application will be available on the Android, iOS and windows platform along with a
website which can be accessed through a laptop or a computer.
1.2 Business Logo and Slogans
Figure 1: The logo and slogan
(As created by the author)
1.3 Prime Function

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The primary function of the business can be stated to be to provide cheap and good
quality grocery items to the different customers at the convenience of their doorsteps. The
company aims to ensure that they are able to resolve the troubles of the customers who are
required to spend their valuable time shopping and waiting at long queues. Through the
application and the website, the firm will be able to successfully provide the goods ordered
by the customers at their doorsteps and ensure good quality as well. Moreover, these
applications and websites can be used as a selling point for the various grocers as well, who
will be charged a nominal fees in return for the products which they will enlist on the
application.
1.4 Legal structure
The legal structure forms a crucial part of the business and with respect to this, it
becomes very important for the firm to ensure that the business will be successfully able to
run itself. Hence, in order to make the management considerably convenient, the legal
structure which has been chosen for the business is Sole proprietorship. The firm will be
divided into different divisions and each division will be responsible for managing their
operations. In addition to this, it also becomes important that each of the departmental heads
report to the hired CEO.
1.5 Mission Statement
The main mission of the organization can be stated to be as follows:
 To provide timely service to the customers
 To provide good quality products to the customers
 To get into a long term relation with the suppliers
 To build upon the image of the firm.

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 To ensure a growth rate of 20% every year
 To ensure that the firm becomes the most popular company as present in Canberra.
1.6 Vision Statement
The vision statement of the firm is as follows:
We at Shop Now.com aim to ensure that the firm is able to build a sustainable
future and get into a long term relationship with the different suppliers as well as the
customers.
1.7 Goals and Objectives
The primary goals as well as the objectives of the business can be stated to be as follows:
 The firm aims to build a network of 100 suppliers in their first 6 months of its
operations
 The firm aims to serve a minimum of 80 customer daily in the first 6 months of the
operations
 The firms aims to initiate a sales of $100000 every month
 The firm aims to grow at a percentage of 20 in the first 2 years
1.8 Location
The location which has been chosen for the purpose of the business can be
understood to be the Canberra region. The Canberra region can be understood to be the
capital city of Australia. As the capital city, the city has considerable importance in the
country and hence, is often considered as a prime location for the different operations
which generally take place at the work and hence, in line of this, it can be rightfully

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understood that, if the Shop Now undertakes its operations in the city, it will be beneficial
for the firm to gain popularity in a short period of time.
1.9 Operating Schedules
The business model:
The Shop now aims to act as a common platform for all suppliers, wholesalers,
retailers as well as the customer alike. In this way, the business will be able to serve a larger
range of the different customers and in a manner similar to this, the consumers would be able
to gain the right products at the right price and at the right time (Anantadjaya 2013).
Categories of Business:
The different categories of the business which the firm aims to undertake, can be
understood to be as follows:
Business to consumers: The consumers who are working as professionals and other
such domains and often do not get the time to shop will be able to fulfil their overall needs by
providing them with adequate convenience. In addition to this, the different customers can
also undergo the analysis of the different catalogues and order any quantity of goods they
prefer.
The business process
The business process which will be followed by the firm can be understood to be the
simple buying and selling procedure. It can be essentially described as follows:
 Registration: The customer would be required to register on the website and enable to
continue selecting the items which are required to be purchased.

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 Browse: The customers can undergo the analysis of various categories of products
which they intend to purchase and then add them to the cart accordingly.
 Payment: The payment would be required to be made either on the delivery or before
the purchase is made (Kotler 2013).
The selling process
The selling aspect will be allowing the different businesses to register on the
company`s website by paying them a fixed annual rate. In line of this, it can be understood
that, the organization would then be able to display the different products which the
interested customers can buy for themselves (Best 2013).
The Revenue Model
The Shop now will be following a simple revenue generation structure. The main
income of the firm will come from the registration fees paid by the manufacturers and the
lasting fees along with the service charge as well. This will help them to earn a fixed amount
of money for themselves. Moreover the firm also aims to earn an annual fee from the
different product manufacturers.
Operations Model
The operational model on which Shop Now will function on can be understood to be
as follows:
Stock it yourself
The different suppliers will be required to manage the integrated warehouse system
and will be required to manage the orders for the firm.
Outsourcing warehouse model

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In this system, the company would be required to outsource the warehousing functions as
available and hence, in line of this, the peak season can be managed easily (Baden-Fuller and
Haefliger 2013).
Inventory Management
As the Shop Now is a relatively new organization, it has to be understood that, it aims
to save the costs associated and fulfil the organization objectives as well. Hence, to avoid any
shortage the firm will make use of the LIFO method which will help them to remain right
stocked at all times.
Transportation Costs
The different transportation costs which shall be incurred by the firm can be
understood to be the delivery costs and the costs of moving the goods from a single supplier
to the other.
1.10 Staffing requirements
The staffing requirements of the firm can be understood to be as follows:
 The manager
 The Supervisors at the warehouse
 Delivery experts and subordinates
 Office staff and crew (Beardwell and Thompson 2014).
 A Grocery Inventory specialist
 Technical staff for the application and website management.
Recruitment and schedule

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In order to be able to carry out the overall recruitment and related agency work
successfully, the firm will be involved in contacting a placement agency, which would then
assist the firm to achieve its overall goals as well as the objectives at large.
Performance reviews and rewards
The continuous evaluation of the performances will help in ensuring that the
employees are allowed to work to the best of their abilities and motivated continuously.
1.11 Establishment Requirements
Startup Expenses
Buildings / Real Estate
Purchase
$
30,000
Construction 12,000
Remodeling 4,000
Other 1,000
Total Buildings and R / E
$
47,000
Leasehold Improvements
Item 1
$
20,000
Item 2 2,000
Item 3 -
Item 4 -
Total L / H Improvements
$
22,000
Capital Equipment List
Furniture
$
10,000
Equipment 20,000
Fixtures 20,000
Machinery 40,000

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Other 1,200
Total Capital Equipment
$
91,200
Location and Admin Expenses
Rental
$
25,000
Utility Deposits 2,000
Legal and Accounting Fees 12,000
Prepaid Insurance 3,000
Pre-opening Salaries 3,000
Other 2,000
Total Location and Admin Expenses
$
47,000
Opening Inventory
Category 1
Category 2 1,000
Category 3 20,000
Category 4 -
Category 5 -
Total Inventory
$
21,000
Advertising and Promotional
Expenses
Advertising
$
20,000
Signage 23,000
Printing
Travel & Entertainment 20,000
Other / Additional categories
Total Adv and Promo expenses
$
63,000
Payroll and payroll taxes
Expense 1 $