Convenience Store: Executive Summary and Pro Forma

2560 Words Aug 25th, 2011 11 Pages
TERM PROJECT
Executive Summary and Pro Forma

Jeyhun Taghiyev
Park University

Executive Summary Brothers’ is a convenience store located in Basehor, Kansas. This family owned business is conveniently located and the cross section of two major highways (K-7 and I-70). This small company expects to capture market share by becoming the low cost leader in the convenience store market by pricing competitively, providing excellent service and products. The major products offered include: newspapers, magazines, soft drinks, fruit juices, sport drinks, hot and cold snacks, limited grocery items such as canned goods, microwaveable meals, bread, auto products such as fuel additives and cleaning supplies, pet supplies, paper products and
…show more content…
The majority of household incomes range from $20,000 - $30,000 (50.3%), yet there are also affluent household incomes ranging from $50,000 - $100,000 (15.4%). The median income in this area is $47,096, compared to the whole Kansas area which is $33,248. The typical "head of household" age is 25 - 34 (22.4%) or age 34 - 44 (23.1%) with a median age of 44.4 years old and an average age of 32 years old. Convenience stores serve the entire purchasing population of its geographical area but focuses on customers who need to purchase items outside of normal working hours such as hourly employees and quick shoppers looking for snacks and related items. Relying on statistics residents spend $30.6 million dollars per year on grocery store and other food products. Based upon the number of households and the average spending residents spend $16,872.00 per year on grocery store and other food products. Calculating the average spending it is estimated that Brother’s Convenience Store could conservatively gross $100,000. It is anticipated that the market penetration will increase over the next five years from 5% of local residents spending to 10%, and the client market area will increase to a 15-block radius. Financing Capital The amount and uses of capital required in this business is very little. Brother’s is a small, local and entrepreneur business and it will not require major assets and liabilities to operate. In order for the business to

More about Convenience Store: Executive Summary and Pro Forma

Open Document