How to Launch a Successful Candy Store
Selling candy may appear a simple business at the outset, but in a highly competitive candy retail market it requires a top professional approach to succeed in this business as a new entrant. Preparing a business plan is a critical first step before launching a candy store. The following are the important elements that must be included when writing a business plan for a candy store.
Choosing the Store Location
In a niche retail business, store location becomes crucial because the product primarily caters to younger age groups. So the location must be such where there is a regular traffic of youngsters and kids. As far as possible, the other stores in the vicinity should include several kids merchandise stores, video game parlors, fast food restaurants and amusement attractions catering to a younger population.
Finalizing the Product Offerings
A candy retail store may typically include a wide range of candies, nuts, chocolates and chewing gum. Some stores may also offer readymade candy gift packs and candy bouquet baskets. Beverages, mineral water and soda fountains are also popular and complement candies, so these options may be considered as a part of the candy store business plans.
Capital Investment and Budgeting
A candy store can be a substantially capital intensive business if the chosen location is prime and expensive. Investments for store decor and display, and initial candy inventories will depend on the planned capital investment and budgetary outlay for the business. These figures should be included in the business plan. Accordingly, the size of the store and the scale of initial capital expenditures can be estimated.
The business plan must short-list the feasible sources of finance to support planned capital investment in the candy store. Funds must be raised at competitive interest rates in order to create a sustainable business model in a very competitive candy retail market. As far as possible, internal accruals must also be deployed to reduce the interest burden.
Managerial and Sales Staff
The candy store may either be self-managed by the entrepreneur or a professional store manager may have to be hired, along with additional sales staff. Staff numbers will depend on the planned size of the store and the scale of operations. An outline of the proposed staff organization should be a part of the business plan, and a few probable sources for hiring should also be listed in the plan.
Marketing, Advertising and Pricing Strategy
There are thousands of retail stores in the United States that specialize in selling candy and nuts, especially chocolate. It requires an innovative marketing and advertising strategy to catch the attention of the target customers. Pricing is another crucial issue which should be decided in accordance with the competitors’ pricing behavior as well as the average customer profile in the area where the store will be located.
Once all these issues are sufficiently addressed, the business is all set for being launched in close adherence to the approach outlined in the business plan.