10 mistakes to avoid in developing a business plan

The Wine & Spirits industry is a capital intensive business with an average store set up investment between $450,000 to over a million dollars. A small variance compared to your plan/budget can lead to tremendous costs overruns from $10,000 to $100,000 or delays in the opening date due to operational or financial factors including possible delays in securing financing.


Exhibit 1.0 – There Performance Group’s 10 mistakes to avoid when operating a wine & spirits store

Mistakes:

1. Poor site selection

Result: Lack of store traffic or high marketing expense to compensate

Cost indice: $ $ $ $ $ $

2. Lack of market research

Result: over/under estimating your financial projections

Cost indice: $ $ $ $ $

3. Poor product mix (wine/liquor/beer)

Result: Lack of momentum on store traffic, sales and margins

Cost indice: $ $

4. Poor inventory management

Result: Stock outs or over spending and increase in bad inventory

Cost indice: $ $

5. Lack of strategy to increase Gross Profit Margin (GPM)

Result: Loss of precious profit points required to increase marketing and training expenses

Cost indice: $ $ $ $

6. Lack of merchandising solutions to push in store products with highest GPM

Result: Lower store profitability

Cost indice: $ $

7. Lack of management tools and process (inventory, sales, marketing, product selection)

Result: Lower sales and margins and higher operating expenses

Cost indice: $ $ $ $

8. No Branding strategy – lack of a Unique Selling Proposition

Result: Lack of defined market positioning and brand awareness

Cost indice: $ $ $ $ $

9. No Marketing strategy in place to increase store traffic

Result: Lack of consistent growth momentum

Cost indice: $ $ $ $

10. No regular data tracking and analysis

Result: Lack of clarity in problem definition and SMART goals

Cost indice: $ $ $ $ $

#10mistakestoavoid #businessplan #Industryanalysis #Thereperformancegroup #LiquorStores #Arkansas

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