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Free Liquor Store Business Plan for Loans

Obtaining Business Financing

When obtaining a business loan for a liquor store business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Liquor Store, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will wage you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.

Executive Summary

Introduction

When obtaining a business loan for a Liquor Store, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:

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Introduction

This article was prepared to explain the importance of companies having strategic objectives. A company that pursues and achieves strategic outcomes that boost its competitiveness and strength in the marketplace is in much superior position to improve its future financial performance.

The Idea in a Nutshell

Strategic objectives relate to target outcomes that indicate a company is strengthening its market standing, competitive vitality, and future business prospects. Various business analysis techniques can be used in defining strategic objectives, including:

SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats),

PEST analysis (Political, Economic, Social, and Technological),

STEER analysis (Socio-cultural, Technological, Economic, Ecological, and Regulatory factors), and

EPISTEL (Environment, Political, Informatics, Social, Technological, Economic and Legal). 

In essence, strategic planning is the formal consideration of an organization’s future course.

The Top Ten Things You Need to Know About Strategic Objectives

1.            Market Standing: desired share of the present and new markets. Market standing has to be measured against the market potential and against the performance of suppliers of competing products or services – whether competition is direct or indirect

2.            Innovation: development of new goods and services and of skills and methods required to supply them. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy.

3.            Human resources: selectionand development of employees. As companies reorganize to acquire competitive edge, human resources plays a key role in helping companies deal with a fast-changing competitive environment and the greater demand for calibre employees.

4.            Financial resources: finding of the sources of capital and their use. a strategy that requires significant investment in new products, distribution channels, production capacity and working capital will place great strain on the business finances. Such a strategy needs to be very carefully managed from a finance point-of-view.

5.            Physical resources: equipment and facilities and their use. The category of physical resources covers wide range of operational resources concerned with the physical ability to deliver a strategy

6.            Productivity: efficient use of the resources relative to the output. In economics, a measure of productive efficiency calculated as the ratio of what is produced to what is required to produce it.

7.            Social responsibility: awareness and responsiveness to the effects on the wider community of the stakeholders. This responsibility can be negative, meaning there is exemption from blame or liability, or it can be positive, meaning there is a responsibility to act beneficently (proactive stance).

8.            Profit requirements: accomplishment of measurable financial well being and growth. A business must acquire adequate profit to maintain access to the capital markets for the investment it needs to grow and prosper.  This profit can be difficult to determine but it can't be less than the business’ cost of capital.

9.            Action Planning: carefully laying out how the strategic goals will be accomplished. Action planning often includes specifying objectives, or specific results, with apiece strategic goal. Therefore, reaching a strategic goal typically involves accomplishing a set of objectives along the way

10.            Strategic planning is the formal consideration of an organization’s future course. All strategic planning deals with at least one of three key questions:

            A.) What do we do?

            B.) For whom do we do it?

            C.) How do we excel?

The Video Lounge

This video gives an insight into driving strategic objectives and the consequences of a demand of planning.

http://www.youtube.com/watch?v=HGVV4vgCBok

My Take

There are many factors that influence the success of a business. By setting objectives, companies can boost their competitiveness and strength in the marketplace. Many business owners feel that if they are making profit then their business is in good shape, however, if the business owner does not set objectives and ignores the faulty use of their resources then the business can take a turn at any time and be shut down. Objectives are one the most important survival tools a business should adopt.

References

Birnbaum, Bill. (2009). Developing Your Strategic Objectives. Retrieved from:  http://www.birnbaumassociates.com/developing-objectives.htm

Gamble, John E., Strickland, A. J. III, Thompson, Arthur A. Jr. (2010). Crafting and Executing Strategy: The Quest for Competitive Advantage. McGraw-Hill.

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Contact Info: To contact the author of “Top Ten Management on Strategic Objectives,” please email Blake Phillips at Blake.Phillips@selu.eduor Blakep06@yahoo.com.

BIOGRAPHY

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                

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INTRODUCTION

There are many reasons for a franchise company to expand internationally, but it is most important for success that the company is truly ready. To be ready means the franchisor needs to have a well established and successful operation in their home market. If the franchisor has a well established home market, they are healthy to achieve superior economies of scale once they expand internationally. The operation at home needs to be healthy to generate enough cash flow to support the international expansion as there might be a delay in the returns from international markets. 

THE IDEA IN A NUTSHELL

A company might select to expand outside its domestic market for the chance to acquire access to new customers, achieve lower costs and enhance the firm’s competitiveness, capitalize on its core competencies, and/or to spread its business risk crossways a wider market base.

THE TOP TEN THINGS YOU NEED TO KNOW ABOUT EXPANDING INTO FOREIGN MARKETS

Expanding into foreign markets is a good intent when domestic growth is at a standstill and foreign markets are booming. However, expanding in other countries involves precise planning and error-proof execution. Even with strategic planning, problems can still occur as unforeseen developments surface. So be sure to comprehend frequent mistakes that companies make when expanding into foreign markets.

If you want your business to succeed in foreign markets, the guidelines are the same as succeeding domestically. Make sure your product or service is needed in that country and at the right price that the customers would find value in and create demand for.

Expanding into a foreign market requires vigilant concern. You have to think about many issues such as the timing of the expansion, the culture of the desired foreign country and its economic climate, and most significantly, the cash flow of your business. Even well established and highly experienced businessmen expand into foreign markets at inappropriate times which finally results in losses.

Expansion can acquire access to new customers. It presents possibilities for increased revenues, profits and long-term growth, and becomes an even more appealing option when a company’s domestic markets are already well established.

Expansion can lower costs and boost the firm’s competitiveness. Companies want to sell their products in more than one country to help them achieve manufacturing economies of scale which would significantly improve the company’s cost competitiveness.

It helps not having all your eggs in one basket. Spreading the business risk by operating in a number of diverse foreign markets gives the company a chance to survive through buoyant income in one country if the firm isn’t doing well in its domestic operations.

Due Diligence pays off. “Doing business in a foreign market is not to be taken lightly, but with much thought and consideration to apiece step and opportunity for the investment. It is important to appropriately refer and research all areas of business before entering a market. The more thoroughly you do your homework on the front end, the less stress and greater rewards you should reap on the back end.” – Gary M. Lawrence

Companies wishing to expand can get the most out of its core competencies. A company might be healthy to influence its competencies and capabilities into a point of competitive advantage in foreign markets just as well as domestic markets.

Build strong relationships with your foreign contacts. In the beginning you might need to travel there a lot to meet up with them. Also make sure you have a regional office at that location because due to conflicting time zones something as easy as a telephone call can become quite difficult.

Be careful with each aspect of setting up your business, especially when it comes to your money! In some international arenas, where legal and economic systems are not as developed as they are in the United States, there is always that risk of not being paid for your goods or services.

THE VIDEO LOUNGE

http://www.youtube.com/watch?v=LNmyNW1jfnk

MY TAKE

Expanding your business into foreign markets is a smart way to take that next step once you have fatigued all of your opportunities as a business owner domestically. It provides great potential for advancements in many areas as long as you have strategically researched each single aspect of what it is going to entail and that you are financially capable of doing so. Prepare for the worst but anticipate the ideal outcome of your business venture.

REFERENCES

Franchise Direct. Expansion Into Foreign Markets. www.franchisedirect.com/top100globalfranchises/expansionintoforeignmarkets/1581/886/

Gamble, John E. Strickland 111, A.J. Thompson, Arthur A. Jr. Crafting and Executing Strategy. Why Companies Expand Into Foreign Markets. p. 208.

How To Enter an Emerging Foreign Market.                                                                                               www.va-interactive.com/inbusiness/editorial/bizdev/ibt/expand_g.html

Nelson, Summer. Business Xpansion Journal. Six Tips To Break Into Foreign Markets. www.bxjonline.com/bxj/article.asp?magarticle_id=1652

Sekirin, Eliah. eHow. Mistakes To Avoid When Expanding Into Foreign Markets. 2010 July 12. www.ehow.com/list_6721976_mistakes-avoid-expanding-foreign-markets.html

Lawrence, Gary M. Deciding To Go International.    www.themanager.org/strategy/deciding_to_go_international.pdf

CONTACT INFORMATION

To contact the author of “Top Ten Management on Expanding Into Foreign Markets,” please email Jessica L. Erceg at Jessica.erceg@selu.edu.

Biography

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                

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Introduction

Many businesses are healthy to have a domestic sustainable competitive advantage, but many of them are missing out on the opportunities they would have if they would go global. With today’s technology, it gets easier and easier to coordinate strategic actions worldwide, therefore companies should try to expand more. Even though building competitive advantage in a foreign market does not seem very easy, many companies were healthy to do so.

The Idea in a Nutshell

The term “competitive advantage” was first widely used by Michael Porter in his book Competitive Advantage(1985). The term has been used earlier, but rather than before, Porter gave a superior definition of it. QuickMBA says that “when a firm sustains profits that exceed the average for its industry, the firm is stated to posses a competitive advantage over its rivals”. A company could take its domestic competitive advantage and expand into foreign markets. Before doing so, a business needs to take into consideration many factors that could have an impact on the company.

The Top Ten Things You Need to Know About Competitive Advantage in Foreign Markets

1.            First thing companies need to think about before going global is where to locate their business. What countries are suitable for their product or services, and whether they should establish in many countries or just a few.

2.            Businesses should concentrate their activities in only a few countries when “costs of manufacturing and other value chain activities are significantly lower in certain locations than in others”(Flint, 200, p.). The superior locations to select would be ones with superior resources and enhanced coordination of related activities.

3.            Another bourgeois in concentrating activities in only a few locations would be the potential for economies of scale. According to the QuickMBA website, industries in which costs drop by at least 20% for apiece doubling volume tend to be good candidates for globalization.            

4.            If there is a steep learning curve associated with performing an activity in a single location, then companies need to establish one or two huge plants at those certain points. To take advantage of the learning curve is to increase accumulated volume as fast as possible.           

5.            Dispersing activities throughout many locations would be key if business needs to be close to consumer. Also, transportation costs, scale diseconomies and trade barriers make it hard or impossible for companies to work from only one location.

6.            A strong developed competitive advantage attribute would be dominating depth in a competitively valuable capability, resource or value chain activity over other domestic or international competitors. Transfer of information through online systems between borders is another way of building on superior competencies and capabilities.

7.            Companies need to take advantage of cost and trade conditions; therefore production could be moved from one location to the other. One other advantage of this would be to use equipment or organisation that are underutilized.

8.            Businesses with an already well built brand study find it easier to launch new products because of their current reputation they have in the marketplace. Therefore, they have credibility with customers and they save huge on costs because they do not have to spend a lot of money for advertising to make their brand well known anymore.

9.            Having a sustainable competitive advantage domestically, a company should try to be a first mover and expand especially into developing countries. The company will acquire an advantage over new entrants because it would be the first one to take advantage of resources and build on their brand name.

10.            Being healthy to have locations in developed and developing countries, companies are healthy to actually extend the product life cycle. Products that reached maturity levels could be sold in developing countries.

The Video Lounge

The video speaks more about competitive advantage, but I believe that it could easily apply to achieving competitive advantage in foreign markets as well. Peter Sheahan gives an example about McDonalds and how it went global and had to differentiate itself in foreign markets by including on its menu in some countries green chicken curry, and in Australia they had to include healthier products, like salad, to meet consumers’ actual needs.

http://www.youtube.com/watch?v=gdcf5Idr0eU&feature=PlayList&p=214C869E0EAC9021&index=0&playnext=1

My Take

Competitive advantage is a relatively new concept and I believe that it is very helpful to businesses today. Going global and trying to build competitive advantage requires a lot of research and financing but many industries seem to benefit from taking on this opportunity. Obviously, it would not be beneficial for all companies to integrate in foreign markets. However, for the ones that do that, now it is easier than ever because of the fallen barriers of international trade and the quietness of communication crossways borders with the help of technology.

References

Competitive advantage. (n.d.). Retrieved October 10, 2010, from QuickMBA website:               http://www.quickmba.com/strategy/competitive-advantage/

Flint, G. D. (2000, Jan 1). What is the meaning of competitive advantage? Retrieved October 10, 2010, from Advances in competitiveness research website: http://www.allbusiness.com/management/  benchmarking-strategic planning/718445-1.html

Global strategic management. (n.d.). Retrieved October 10, 2010, from QuickMBA website:   http://www.quickmba.com/strategy/global/

Thompson Jr., A. A., Strickland III, A.J., & Gamble, J.E. (2010). Crafting and executingstrategy: The quest for competitive advantage. New York, NY: The McGraw-Hill Companies, Inc.

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Contact Info: To contact the author of “Top Ten Management on Competitive Advantage in Foreign Markets,” please email Mihaela at mihaela.hagiu@selu.eduor mihatenis@yahoo.com.

Biography

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                

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Introduction

            Focused (or Market Niche) Strategies differ from other generic market strategies in that it concentrates most if not all of its attention on a narrow piece of the total market.  The niche can be defined by geographic uniqueness, by specialized stipulations in using the product, or by special product attributes that appeal only to niche members.  The key to this strategy is to remain focused on your target niche and not grant yourself to attempt appealing to everyone.  A company can lower its costs tremendously by limiting its consumer base to a very specific target market.  This strategy is extremely useful to small or medium sized companies that demand the capital to take on multi-national corporations.  The costs of starting a business with a clearly defined and specific target market are far less than those one would have when launching a global product or service.

The Idea in a Nutshell

            To state that one mortal came up with the market niche strategy would be a stretch.  The truth is this strategy has been utilized since the beginning of civilization, whether it was known by those utilizing it or not.  In ancient times, the largest segment of the population was poor laborers.  This is not the market one sets his sites on when attempting to sell luxurious silk gowns, rare jewels, or the latest invention, trinket, or toy.  The small well-defined segment of nobles was the target niche of ancient times.  One might think that a lot has changed since then, but the truth of the matter is companies such as Godiva Chocolates, Chanel, Gucci, Rolls-Royce, and Haagen-Dazs successfully utilize differentiation-based focused strategies targeted toward particular segments wanting top-of-the-line products and services who are willing to spend more to get the best.  The target market does not have to be wealthy; this is just one example. 

A focused or niche market strategy is one that provides products or services that uniquely appeal to customers in a narrow segment of the market, rather than attempting to appeal to that particular market as a whole.  Community Coffee, of Louisiana, holds a mere 1.1% share of the U.S. coffee market, but it has reported income in excess of 0 million by appealing to a narrow well-defined market.  In addition, Community Coffee holds a 50% share of the coffee market in the Gulf-Coast region where it is distributed.  The world wide web is quite possibly the perfect medium for launching a market niche strategy.  Businesses such as Google, E-Bay, and Match.com went from being ambiguous companies to household obloquy in a matter of years. 

The Top Ten Things You Need to Know About Focused (or Market Niche) Strategies

1.            When employing a focused market strategy, keep your consumer-base down to a well-defined and specific segment of the market, avoiding the temptation of trying to appeal to broad interests.

2.            When utilizing a focused market strategy, watch of competitors trying to match your firm’s abilities in serving the target market.  They will attempt to find effective ways of appealing to your buyers with imitation products or services.

3.            A focused market strategy is saint employed when the specific target consumer-base is massive enough to be profitable and offers good growth potential.

4.            Your firm stands a greater chance at being profitable if you offer different products and services to a specific group or segment of consumers that have unmet preferences.  These customers will be loyal to your business for catering to their one-of-a-kind needs, and they will think of your company first when others ask them where they got such a specific product or service. 

5.            Ferrari markets its 1,500 vehicles sold in North USA each year to a clientele of only 20,000 highly lucrative automobile admirers.  Only those in the highest tier of this exclusive group were contacted by Ferrari for a chance to place their obloquy on the inactivity list for one of the 20 .1 million FXX models.

6.            A swift a decisive strategy should be employed when targeting a narrow segment of any market before consumer preferences tend to drift.

7.            A hyper-focused strategy is saint maintained in those industries in which the leaders do not see having a presence in the niche is critical for their own success.  This reduces the risk of smaller businesses having to effort it out against some of the industry’s strongest competitors for a share of the market.

8.            Over-looked or undervalued market segments are prime territories for employing a laser-focused strategy.  Because these consumers are undervalued by other competitors in the industry, the chances of your consumer-base remaining loyal for the long-term are greater.

9.            Use caution when entering markets where segments might become so alluring it is soon flooded with competitors, augmenting conflict and disintegrating segment profits.

10.            A laser-focused strategy can be actualized if there are social and cultural differences within one community that might call for changes to be implemented in a product or service. This invariably produces a niche market.

The Video Lounge

http://www.youtube.com/watch?v=PHhfDkLrOpA

Guy Kawasaki discusses the key success factors that differentiate a strong niche marketing strategy from a poor or run-of-the-mill one.  The two main areas he stresses to be strong in are the capability to wage a one-of-a-kind product or service to the customer and for that product or service to wage value to the customer.

My Take

I think focused or (market niche) strategies are extremely valuable today.  This would be the saint strategy to implement for any fresh college graduates looking to begin an entrepreneurship.  In addition, the world wide web offers an abundance of channels to get a small firm up-and-running without much start capital.  This demand of start capital is another reason why utilizing this strategy is favorable when entering a market or industry with massive corporations.  Some of the main points I got out of this were to keep your target market down to a specific and narrow market segment,  market segments that are overlooked or undervalued are the prime meat for employing a market niche strategy, and that this strategy is saint maintained in those industries in which the leaders do not see having a presence in the niche is critical for their own success.

References

Jaquier, B. (2003). Focus and niche strategies. Retrieved from http://www.ecofine.com/strategy/Focus and Niche stategies.htm

Marketing niche strategy. (n.d.). Retrieved from http://www.smallbusiness-marketing-plans.com/marketing-niche-strategy.html

Mendoza, M. (n.d.). Focus on your niche. Retrieved from http://www.powerhomebiz.com/vol62/niche.htm

Niche strategy advantages. (n.d.). Retrieved from http://www.marketingtitan.com/niche_strategy_advantages

Thompson, A, Strickland, A, & Gamble, J. (2010). Crafting and executing strategy: the quest for competitive advantage. New York, NY: McGraw-Hill/Irwin, 156-160.

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Contact Info: To contact the author of “Top Ten Management on Focused (or Market Niche) Strategies,” please email archangel B. Ordoyne at w0449274@selu.edu.

Biography

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                

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