A network of food stores.(Chain of food stores.)

Project description

A brief investment Memorandum.
Business plan Grocery store we see the launch of outlets for the sale of food and alcoholic products of different types and brands, with the goal of creating a network of Supermarkets all over Russia.
The main competitive environment presented to dealer and retail networks "Pyaterochka", "Dixy", "Magnit", etc.
Competitive strategy of the project is based on the following components:
1) Different providers
2) Competitive price
3) Errors and cons of competitors
4) the Presence of a small "food court" with European and Asian kitchen
5) Qualified staff, with extensive experience in retail, and existing base of reliable suppliers. This will allow you to pick the perfect product range for shops at the best price.
To run the outlets you need to rent commercial space of 100 — 500 m2. The pavilion can be located in a residential neighborhood, and in the areas where most of the business centers. The main condition when choosing a room is the level of traffic, the absence of competitors. With a larger number of investment area can reach up to 2000 sq. m.
Calculation of average indicators:
Take for example the room is 100 sq. m.
The 1st store will be different according to the net profit from all subsequent, as it takes care of all basic costs.
Payback period— 12-13месяцев
Initial investment— 12 950 000 rubles.
Average monthly revenue 3600000 rubles
Average monthly income— 600,000 rubles
Average daily revenue – 120,000 rubles.
Investments in all the following shops:
Payback period— 7-8месяцев
Initial investment— 7 970 000 rubles.
Average monthly revenue 3600000 rubles
Average monthly earnings— 1 280000 rubles
Average daily revenue – 120,000 rubles.

* The given amount of initial investment invested costs for 6 months.( Z. P. employees, rental of premises, Purchase of goods)

Internal rate of return (IRR) = 50%
Net present value (NPV) = 5 384 153 R.
Forecast of net profit for 5 years:
Period (year). The sum of the Number of stores (S= 100 sq. m.)
1 — 22 560 000 R. 2
2 — 53 280 000 R. 4
3 — 84 000 000 R. 6
4 — 114 000 720 R. 8
5 — 145 000 000 R. 10

The necessary investments over a period of 2 years:

1st 6 months. — 12 950 000 RUB 1st shop

2nd 6 months. — 7 970 000 rubles the 2nd store.

3 and 6 months. — 7 970 000 RUB 3rd store.

4 6 months. — 7 970 000 RUB 4th store.

* Investments may be made in phases, as each month and year.

With the increase of the quadrature of the shop will increase profit.
Explanation.
These calculations are averages, since income and expense is affected by the size of premises and location of the store.
It should be noted that the most reliable, and from the point of view of profit and from the point of view of the first launch of the project, to begin to engage the opening of the Store is since the beginning of summer, so as to enter into Contracts with the suppliers will take about 3 months. Next, we open in the autumn, when people begin to come from vacations, and gradually gaining momentum we enter the PEAK sales is December. Thus we can quickly increase the turnover of funds and, at the opening of the Store.
Also at the moment there are:

1) some ready-made options for the logo and store name.
2) a list of trustworthy suppliers and agreed prices and contract.

3)the Selected office and found several options of areas to shop.

4) experienced employees with experience more than 15 years.
On request I can send more detailed information ( full financial model and presentation with photo).