Cell Phone Store Business Plan
Executive Summary
Today, we are going to discuss
the development of a business plan for a cell phone store that is specifically
looking for SBA loan financing. Cell phone stores typically fare well in most
economic climates due to the fact that the usage of a cell phone has now become
a necessity in modern life. As such, these businesses are able to generate
ongoing streams of revenue from ongoing phone upgrades, activation of service
plans, the new service plans, as well as Bill paying operations. The high gross
margin generated by these businesses allow them to generally remained profitable
and cash flow positive.
As with all business plans, we
always first start with discussing the executive summary. As it pertains to your
cell phone store executive summary, you're going to want to heavily focus on how
you intend to offer the services we discussed above to the general public
through your retail store. Here, again, you should focus on very high margin
that are generated from these services to the general public. If you are able to
do this effectively, you will be able to showcase to your SBA loan banker that
you are a qualified candidate for a SBA loan.
Next, you want to discuss your
experience in a cell phone store industry, your experience of bringing retail
facility, your educational background, and how you intend to bring the
profitability of your cell phone store up very quickly during the first five
years of operation.
Next, you're going to want to
discuss the SBA loan and how you intend to use it to watch her cell phone store
operations. Foremost, you want to discuss the anticipated yearly interest rate,
the anticipated monthly repayment rate of both principal and interest, and the
terminal level. Additionally, you need to make mention of how much money you
intend to contribute to the venture so that you can show that you are providing
a substantial amount of equity as it relates to the down payment for your SBA
loan. Here, you should also discuss how you intend to use the funds in the
overview basis. This is a much further discussed in the second section of the
business but.
Next, you're going to want to
develop a small chart or graph that showcases the first five years of profit and
loss is Andy cash flow analysis of the business so that a SBA loan banker can
immediately see whether or not your cell phone store is a viable candidate for a
SBA loan. To do this effectively, the banker that is reading your business plan
will immediately community, then you would have them see that you are a
profitable enterprise that prepares loan.
Finally, within your cell phone
store executive summary, you don't want to discuss how you intend to eventually
expand the number of stores that you owned in the first five years of operation.
This is primarily the best way to extend a cell phone store business as more
likely than not you're also going to want to affiliate yourself with the major
networks carrier in order to further increase the visibility of your cell phone
store. This would further discussed in the section of the business plan as it
relates to cell phone store marketing.
SBA Loans for Cell Phone Stores
In the second section of the
business plan, you're going to provide a full breakdown of the SBA loan funds
either be using in conjunction with launching your cell phone store operations.
This includes providing estimations were guarding the costs related to acquiring
a retail facility, completing a retail facility build out, inventories of cell
phones, computer costs, working capital costs, and marketing capital costs.
Again, you are going to want to street that you will also be making a
substantial equity contribution to the business. Here, you may also want to
focus significantly on the 28 head of personal assets or business collateral
that you can use in order to further secure your SBA loan.
Also very common in this
section, it's a discussion as to whether or not you use funds from a third party
for your down payment, managing equity, investor equity, he maintained the Board
of Directors, and how you intend to sell the business over a period of time. As
it relates to the sale of your cell phone store, you may want to focus
substantially on how you intend to hire a qualified business broker that can
actively working to have to sell the business for the highest possible price to
earnings multiple. No cell phone retail locations, typically generates a price
earnings multiple of 2 to 3 times the previous year's earnings.
Cell Phone Store Products and Services
In the third section of the
business plan, you're going to want to thoroughly discuss the products and
services that are offered for your cell phone store. Again, this includes
upgrades of loans, new activations, accepting payments from people I walked into
cell phone store, sales of cell phone accessories, and related products that
relate to usage of cell phones.
Here, you may want to discuss
any specific operations that you will need to maintain longer sell any specific
network carrier as it relates to yourself in store. This is very important,
especially if you're applying for SBA loan, due to the fact that you have a much
greater amount of market visibility by associating yourself with a major
brand-name. Again, further discuss this later in the business but.
Cell Phone Store Industry Analysis
In the section of the business
plan, you're going to want to focus heavily on cell phone store industry
analysis. First, you're going to want to discuss the economy and how to impact
the way your business could generate revenues. As we discussed in the executive
summary, cell phone stores are relatively uneven from negative changes in the
economy or economic recessions due to the fact that cell phones have become a
part of everyday life and people will continue to pay their bills for the
service on an ongoing basis. Additionally, many carriers provide for free cell
phone upgrades every so often and as such people continue to make sales and
purchases of these products through your retail cell phone store.
Next, you're going to want to
focus on the cell phone store industry analysis as a relates to the number of
cell phone stores of the United States, but in the revenues generated by cell
phone stores, the number of people employed by the industry, in the payrolls
that are paid to these employees, market trends, and any pending legislation
that may affect the way that you business.
At the time of this writing,
there is no pending legislation that impacts the way that cell phone stores do
business. However, recently there has been legislation is passed that ensures
that individual cell phone is appropriately registered individual user. There
are a number of provisions in the Patriot Act and related pieces of legislation
that directly impact the way that a cell phone store needs to obtain information
from its customers in order to provide them with a specific service.
Additionally, work on the market trends within this industry to have rapidly
changing technology. As such, in order to become a successful retail cell phone
store, you need to be over continually cratered inventories with major carriers.
Next, you're going to want to
focus on the demographic analysis as it relates to your cell phone store. This
includes completing a full analysis of the total population your area, annual
household income, and will median family income, the anticipated number of
people will come to your cell phone store on a regular basis, with money to
spend at your cell phone store, and other important trends as it relates to the
local population. In this section you should outline what you anticipate the
total market is weak and more retail cell phone store.
Finally in this section, we
come to the competitive analysis. Here, you deserve a line the number of other
companies that are within your area that operate on a retail basis for the sale
of cell phones. This is extremely important because it will provide keyword is
the lone banker with a clear understanding that you will be will to maintain a
significant competitive vantage of there are not many other retail cell phone
stores in your area. Additionally, aligning it with a major network carrier you
should really focus on this as it relates to competition and the economic
viability of getting a SBA loan.
Cell Phone Store Marketing Plan
Next, in the section of the
business plan, we come to discuss the cell phone store marketing plan. Here,
you're going to want to focus heavily on the fact that you intend to obtain a
highly visible retail location that will effectively allow you to generate a
substantial amount of walk-in traffic as it relates to business operations.
Additionally, and as we have led up to cover up his business plan, you may also
want to discuss how you intend to work with a specific major carrier that you
can use their signage in your store. This is of extreme importance when you are
applying for a SBA loan as working with a nationally recognized company allow
your business to generate an immediate amount of traffic.
In the marketing section of
your business plan you may also want to discuss the preliminary pricing and
gross margins will be associated with the cell phone products and services that
you sell.
Cell Phone Store Financial Plan
Finally, we come to the cell
phone store financial plan. Here, you're going to want to thoroughly focus on
profit and loss statement, cash flow analysis, balance sheet, breakeven
analysis, business ratios, and the general assumptions that we used as it
relates to your cell phone store operations. Here, you may also want how long
the appropriate amount of collateral that you intend to pledge as a personal
guarantee for your SBA loan. As always, if you are unfamiliar with how to
appropriately develop a financial plan specifically cell phone store then you
should hire a certified accountant that can put together all of the necessary
documentation, loan amortization schedules, collateral documents, and other
pieces of important information that need to be seen by your small business
administration lending bank.