Business Plan For Chain Of Stores

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Question :

Prepare a Business Plan for a Chain of stores dealing in ready-to-eat food items and other daily need products.

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Answer :

Business Plan

Executive Summary

The following report is a type of a business plan of a store. Owner of the store is, Marsha Jones, currently she is running a store in quite a prime location which is an office building in a Metro city. Her store is not any sort of a general store but is quite a good venture having all those possible things which one can need in office hours. From packet food items to pre-packed snacks sandwiches, mixed bags of food items, juice jars, canned or bottled beverages even the daily newspapers and magazines as well. The store also contains gift items and greeting cards as well. The store is earning quite good getting annual revenue of $150,000 to $30,000 yearly. To manage the store properly, Jones hired two employees who work for 30 hours per week (each). Now further, Jones is planning to open one more store in a new office building which is just two building blocks away from the current store. And now she is so confident in this business that further, she's planning to have the chain of her own stores in the city.

Introduction and a brief description of venture

a) Introduction of the venture

Buster’s is quite a small retailing business in an office building’s lobby. It sells all those products which are generally needed by the occupants of that office building, including packets of snacks, variety of pre-wrapped sandwiches, canned drinks or bottled beverages, variety of greeting cards, daily newspapers and magazines, some small and regular gift items and hampers as well. Basically, it contains all those things and articles which anyone needs in daily routine. This store has been open for more than three years and with increasing revenue. 

As the business is growing with quite good revenue and also now the reputation of Buster's is also quite good in the area, therefore Buster's is now thinking of expanding its one-store operation to a different level, i.e. two-store operation (McKeever, 2016). Now Buster's is planning to target a new store, which is at another building, which is totally now and is just two blocks away from the building in which the current store is. For doing this, there is a need of a proper business plan, and in order to make this business plan work, there is a detailed description of the existing business in this business plan and also a proper plan, explaining how the second store will also work efficiently. Further, there is also some analysis on the plans on how to further expand this brand name Buster's by making the chain of such stores (Zokaei, et. al, 2016).

b) Description of the business

Currently, Buster's is operating in one of the busiest as well as the largest and famously known business center and is in the main and metro area. According to the record, more than hundreds of companies are currently operating in the city and further many are under process, so there are like thousands of people in this city of every kind from worker to manager, sweepers as well as clerks, executives etc. And the building in which the current store is also quite a busy one, so there is no issue of customers in this building. The current store occupies quite a good space of 1000 square feet. The store opens for 6 days a week, i.e. from Monday to Saturday and targets each and every people walking in the corridor of the business building. Also, Buster's is the only store which has all the product which is needed by a person in the working hours and also which people needs to fulfill their day to day needs (Museum Store Association (Ed.),2016).

Mainly in the lunch timings, the store always is full as there are very few restaurants in this commercial area, but still, everyone wants to have something which is quick to grab as no one wants to spare their lunch hours and wants to have rest. In this situation, Butler's is the best available option for everyone, as the store keeps a variety of pre-packed sandwiches, beverages, packet food et cetera. While the lunch hours, it is not just a store, but it serves as a café to the customers where they can have their lunch and such sort of food and drinks.

Not only this store is full in the lunchtime only, but also in the hours when all the people are leaving the office and the building, in those hours also, the store remains full because before going home, people buy their stuff which is needed at home from there only (Alliance, 2016). Like some people prefer very light lunch, so they usually pick that from Buster's in order to save their time. Meanwhile in the morning times also, the store remains with the crowd as the store always keeps daily newspapers as well as magazines. Also, there are gift items as well in the store, so in case if there is someone's special day in office, people usually buy that from Buster's only, as in the store along with the gifts and all sort of hampers, even all sort of greeting cards are also available (Armstrong, et al. 2015)

Currently, the store is dealt with by three members, in which two are staff members. These three members manage the store very well, as the employees work for 30 hours weekly (Both of them individually) and the owner, Marsha Jones herself spends 50 hours weekly at the store. Along with this entire busy schedule, the store has its main sales on Fridays and Saturdays. As on these days, people buy all the stuff which will be needed on the weekends (Asiedu, 2016). 

c) Business aspirations

As with the current store, Buster’s is earning quite good revenue between $150,000 to $300,000 yearly which is really good. Now the store is working on full profit part within 1000 sq. feet of area. According to the news, there is an opening of a new office building which is just two blocks away from the current building, so now the owner of the Buster’s is thinking to expand its store business. Jones wants that there must also be one branch in that new office building as well. Because according to the current situation, Jones can clearly see that this is the best business one could have in this city and with this perfect location she can rock (Dalton, et. al, 2018). So, he's planning to open a branch of Buster's in that building also, and not only in that building, he is planning further something big. He's is dreaming of establishing a proper chain of these stores in such large office buildings in the downtown. And because he's already running one store with such a good revenue, so she knows that this dream of her is not that big that no to be achieved. It can easily be achieved with proper planning and its implementation (Verbos, et. al, 2017). But currently, her focus is to aim that new office building which is just two blocks away from the current store. Also, it will be easy for her as well to manage both the stores because the distance between the stores is not that much (Burns, 2016).

In her further planning of having a chain of such stores, he is planning for around 10 to 15 stores in different locations. As there is no such thrill which is in running a great and successful business, therefore Jones is now very much interested in expanding her business. But on the other hand, it is a fact that no failure is more painful than failing at business expansion plans. And in order to not to go through any sort of failure, Joness has thoroughly studied everything from the study on current business to the research of the market and its need (Burns, & Dewhurst, 2016).

Organization of the business and key players

The store is basically run by Ms. Marsha Jones, who is the owner as well as the principal manager of the store. According to the needs and requirements of the store which is based on the average number of customers, she is employing two individuals. As it is not possible for her to manage everything alone, so she decided to keep two employers who work for 30 hours weekly, and she herself gives 50 hours weekly to the store. The time of the employees is bound with heavy hours. Like their working hours is only when the store is always full like if one comes in lunchtime, on the other hand, another one comes at the evening timings. On Sundays, store is always off for the maintenance and stock refilling and all (Farmer, 2017). Both of them spend an exact 5 hours daily at the store, one comes and serves at the lunch timings, and the other one's duty is at the evening timings. And Jones herself spends almost 8 hours daily in the store. And rest of the time she's always busy in stock checking, maintenance, refilling, bill payments, system check and updates and all (Pisano, et. al, 2015). 

a) Owner – Jones plays quite an important role in establishing the Buster's. With all her efforts and qualification, she established such a store and that too in a very prime location. The store of hers is filled with every article that a person can need in daily life. And the plus point of the store is that the location of the store is a big office building (Burns & Dewhurst, 2016). In that building, there are like numerous offices, so there are like hundreds of people working in that office and that two of every kind. From the executive manager of the companies to the clerks and all the other types of employees daily walk through the lobby, where the store is. Therefore, Jones dedicated herself to the work for like 8 hours in the store and spends the rest of her time for the betterment and maintenance of the store.  

b) Company Legal Structure –There are various types of structures of business like Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Partnership (LLP), Corporation, Non-profit Corporation, Limited Liability Company (LLC), Massachusetts Trust, Trust, Joint Venture, Tenants in Common, Municipality, Association, S-corporation, C-corporation et cetera. All these types of businesses are designed according to the needs of every individual (Wierzbicka&NikliƄska, 2016).

Sole Proprietorship is quite a common sort of a business structure as in the type of business structure the business is run by a single person or a married couple alone because this type of business is quite common and simple to operate and form as well. Also, in such type, there is quite a good sort of flexibility, no such mental pressure by the higher authorities, because there are no such higher authorities. Also, there are very less legal controls as well as taxes. But yes, if there is any sort of loss or debts on the company, then that single individual has to face it alone because it will all be because of that person only (Zhang, 2017).

In General Partnership, there are usually 2 or more than two partners involved in the business (a married couple will not be considered, in a business scenario, a couple is considered as a single entity). The partners contribute money and the required skills as well as labor to the company or the business. Whatever the profit or loss the company suffers, all the partners have to deal with it equally. Also, everyone is equally responsible for the management of the business and each and every partner is equally as well as personally liable for whatever the debts of the company occur. And all the formalities of the legal documentation are done on a written partnership agreement. Whereas, in Limited Partnership, there is one or more than one general partner and one or more limited partners. The partners who generally have to manage the business and have a right on the share in profits and losses fully. And on the other hand, the limited partners have all the rights on the profits, but they do not share the loss equally, their losses are totally limited to the amount of their investment (Cihelková, et. al, 2017).

All types of investments are totally different. The type of business which Buster's is running is a Sole Proprietorship, as Jones is the only owner of the firm and the only principal manager as well. Although she has kept two employees as well, there is no role of those employees in the investment and profit or loss sharing of the firm.

c) Management Team –As Buster’s is a type of firm which is handled by a single person, so there is no such management team. Jones herself manages the management part and therefore she just gives 8 hours per day to the store, and rest she do all the management as well as maintenance work. There is no such qualification with her for the management purpose, but because this is her own store, so she knows what is best for her store and what not. So, she single handily manages all the management part very well (Steinbach, et. al, 2017).

d) Employees – Jones has two employees in her current firm and both of them spend5 hours daily, but both of their timing slots are totally different. Out of both of them, one is still pursuing his studies and therefore works as part-time in the evening slot. The other one is a lady, who wants to support her family, and cannot work for full time anywhere, therefore works in afternoon slot as a part-time. In such jobs, qualification does not matter that much, but the only few things that matters are that the employee must not be lazy, he/she must be humble with customers, he/she must not be an arrogant type of person. And most importantly who understands their role and duty properly. As the role of the employee is to give their best in the job and be attentive (Robson, et. al, 2016).

e) Contractors/vendors – The role of contractors or vendors is quite important for the store. As for the store fulfillment and requirement, there must be a proper well-known contractor. But in this case, Jones herself is dealing with all the things, she did not  


This part shows the financial amount required for setting up business in the market. However, it would be accompanied by fixed and variable investment throughout time.

Anticipated operating costs of the new business 

The anticipated operating cost of the newly set up store would be as follows.

Operating Cost of setting up new store of Buster 
 Municipalities expenses  January  February  March  April  May  June  July  August  September  October  November  December 
 Monthly Utility cost  $ 15,000.00  $ 15,150.00  $ 15,301.50  $ 15,454.52  $ 15,609.06  $ 15,765.15  $ 15,922.80  $ 16,082.03  $ 16,242.85  $ 16,405.28  $ 16,569.33  $ 16,735.03 
 Maintained cost  $   7,500.00  $   7,575.00  $   7,650.75  $   7,727.26  $   7,804.53  $   7,882.58  $   7,961.40  $   8,041.02  $   8,121.43  $   8,202.64  $   8,284.67  $   8,367.51 
 Licensing fees  $ 10,500.00  $ 10,605.00  $ 10,711.05  $ 10,818.16  $ 10,926.34  $ 11,035.61  $ 11,145.96  $ 11,257.42  $ 11,370.00  $ 11,483.70  $ 11,598.53  $ 11,714.52 
 Renovation cost   $   4,500.00  $   4,545.00  $   4,590.45  $   4,636.35  $   4,682.72  $   4,729.55  $   4,776.84  $   4,824.61  $   4,872.86  $   4,921.58  $   4,970.80  $   5,020.51 
 System monthly charges  $   7,500.00  $   7,575.00  $   7,650.75  $   7,727.26  $   7,804.53  $   7,882.58  $   7,961.40  $   8,041.02  $   8,121.43  $   8,202.64  $   8,284.67  $   8,367.51 
 Total operating expenses  $ 45,000.00  $ 45,450.00  $ 45,904.50  $ 46,363.55  $ 46,827.18  $ 47,295.45  $ 47,768.41  $ 48,246.09  $ 48,728.55  $ 49,215.84  $ 49,708.00  $ 50,205.08 

Source: - Please check the excel file attached

The salary to staff members and employees would not be given as there would be no staff members hired by her and she would be independently handling the store. 

Anticipated investment requirements to launch the new venture

This will the part of the financial management plan in which sources of raising funds would be used to arrange the finance for the newly set up store (Ehiedu, 2014).

Anticipated investment requirements to launch the new venture 
 Furnishing facilities,   $       50,000.00  $   51,000.00  $   52,020.00  $   53,060.40  $   54,121.61  $   55,204.04  $   56,308.12 
 Inventory purchases,   $     100,000.00  $ 102,000.00  $ 104,040.00  $ 106,120.80  $ 108,243.22  $ 110,408.08  $ 112,616.24 
 Meeting payroll  $       10,000.00  $   10,200.00  $   10,404.00  $   10,612.08  $   10,824.32  $   11,040.81  $   11,261.62 
 Rent Charges  $     100,000.00  $ 102,000.00  $ 104,040.00  $ 106,120.80  $ 108,243.22  $ 110,408.08  $ 112,616.24 
 Legal compliance charges  $       50,000.00  $   51,000.00  $   52,020.00  $   53,060.40  $   54,121.61  $   55,204.04  $   56,308.12 
 Total investment requirement to launch new venture  $     310,000.00  $ 316,200.00  $ 322,524.00  $ 328,974.48  $ 335,553.97  $ 342,265.05  $ 349,110.35 

The above-given investment requirement to launch a new venture is for the six months only (Feigin, 2016)

Anticipated revenue 

This would be the amount of earning from different sources for setting up a new store.

Anticipated investment requirements to launch the new venture 
Pre-Wrapped food $  40,000.00  $  40,800.00  $  41,616.00  $  42,448.32  $  43,297.29  $  44,163.23  $  45,046.50  $  45,947.43  $  46,866.38  $  47,803.70  $  48,759.78  $   49,734.97 
Beverages sells $    2,000.00  $    2,040.00  $    2,080.80  $    2,122.42  $    2,164.86  $    2,208.16  $    2,252.32  $    2,297.37  $    2,343.32  $    2,390.19  $    2,437.99  $     2,486.75 
Mix bag of snacks $    5,000.00  $    5,100.00  $    5,202.00  $    5,306.04  $    5,412.16  $    5,520.40  $    5,630.81  $    5,743.43  $    5,858.30  $    5,975.46  $    6,094.97  $     6,216.87 
Magazines books sales $    4,000.00  $    4,080.00  $    4,161.60  $    4,244.83  $    4,329.73  $    4,416.32  $    4,504.65  $    4,594.74  $    4,686.64  $    4,780.37  $    4,875.98  $     4,973.50 
Gift items and greeting card sales $    2,000.00  $    2,040.00  $    2,080.80  $    2,122.42  $    2,164.86  $    2,208.16  $    2,252.32  $    2,297.37  $    2,343.32  $    2,390.19  $    2,437.99  $     2,486.75 
Total sales $  53,000.00  $  54,060.00  $  55,141.20  $  56,244.02  $  57,368.90  $  58,516.28  $  59,686.61  $  60,880.34  $  62,097.95  $  63,339.91  $  64,606.70  $   65,898.84 

Cash flow statement of Store

 Pre-wrapped food  $ 40,000.00  $ 40,800.00  $ 41,616.00  $ 42,448.32  $ 43,297.29  $ 44,163.23  $ 45,046.50  $ 45,947.43  $ 46,866.38  $ 47,803.70  $ 48,759.78  $ 49,734.97 
 Beverages sells  $   2,000.00  $   2,040.00  $   2,080.80  $   2,122.42  $   2,164.86  $   2,208.16  $   2,252.32  $   2,297.37  $   2,343.32  $   2,390.19  $   2,437.99  $   2,486.75 
 Mix bag of snacks  $   5,000.00  $   5,100.00  $   5,202.00  $   5,306.04  $   5,412.16  $   5,520.40  $   5,630.81  $   5,743.43  $   5,858.30  $   5,975.46  $   6,094.97  $   6,216.87 
 Magazines books sales  $   4,000.00  $   4,080.00  $   4,161.60  $   4,244.83  $   4,329.73  $   4,416.32  $   4,504.65  $   4,594.74  $   4,686.64  $   4,780.37  $   4,875.98  $   4,973.50 
 Gift items and greeting card sales  $   2,000.00  $   2,040.00  $   2,080.80  $   2,122.42  $   2,164.86  $   2,208.16  $   2,252.32  $   2,297.37  $   2,343.32  $   2,390.19  $   2,437.99  $   2,486.75 
 Total sales  $ 53,000.00  $ 54,060.00  $ 55,141.20  $ 56,244.02  $ 57,368.90  $ 58,516.28  $ 59,686.61  $ 60,880.34  $ 62,097.95  $ 63,339.91  $ 64,606.70  $ 65,898.84 
 Monthly Utility cost  $ 15,000.00  $ 15,150.00  $ 15,301.50  $ 15,454.52  $ 15,609.06  $ 15,765.15  $ 15,922.80  $ 16,082.03  $ 16,242.85  $ 16,405.28  $ 16,569.33  $ 16,735.03 
 Maintained cost  $   7,500.00  $   7,575.00  $   7,650.75  $   7,727.26  $   7,804.53  $   7,882.58  $   7,961.40  $   8,041.02  $   8,121.43  $   8,202.64  $   8,284.67  $   8,367.51 
 Licensing fees  $ 10,500.00  $ 10,605.00  $ 10,711.05  $ 10,818.16  $ 10,926.34  $ 11,035.61  $ 11,145.96  $ 11,257.42  $ 11,370.00  $ 11,483.70  $ 11,598.53  $ 11,714.52 
 Renovation cost   $   4,500.00  $   4,545.00  $   4,590.45  $   4,636.35  $   4,682.72  $   4,729.55  $   4,776.84  $   4,824.61  $   4,872.86  $   4,921.58  $   4,970.80  $   5,020.51 
 System monthly charges  $   7,500.00  $   7,575.00  $   7,650.75  $   7,727.26  $   7,804.53  $   7,882.58  $   7,961.40  $   8,041.02  $   8,121.43  $   8,202.64  $   8,284.67  $   8,367.51 
 Total operating expenses  $ 45,000.00  $ 45,450.00  $ 45,904.50  $ 46,363.55  $ 46,827.18  $ 47,295.45  $ 47,768.41  $ 48,246.09  $ 48,728.55  $ 49,215.84  $ 49,708.00  $ 50,205.08 
 Total cash inflow  $   8,000.00  $   8,610.00  $   9,236.70  $   9,880.48  $ 10,541.72  $ 11,220.83  $ 11,918.20  $ 12,634.25  $ 13,369.40  $ 14,124.07  $ 14,898.71  $ 15,693.76 

Payback point

It is the point at which the new branch of Buster would be having its invested amount (Ehiedu, 2014).


In this year, the new branch of Buster would not be having its pay-back point. 


This is the point at which new branch of Buster would be having its initial invested capital back in its system from its cash inflow 


a) Summary of marketing/sales strategy

Before anyone starts or expands the business, it is very much important to have a proper plan or strategy of how to make the business or new expansion work. Making a plan does not only force the owner or the person who is making a plan to take a proper look on all the business aspects from financial estimations to the targets of the market and all, but also it acts like the roadmap to the success (Cross,  Belich,  & Rudelius, 2015).

One of the most important parts of a business plan is ‘The strategies of sales and marketing’ as this outlines the plan for selling and reaching to whatever the market target is (Armstrong, et. al, 2015). Another important point is that the target market must be the area, where sales and marketing are possible because there is no sense in opening a new business or expanding it if there is no demand in that area. The marketing plan is the only key to affordable and effectively finding customers (Vomberg, et. al, 2017).

Need for a marketing and Business Plan: There is a record concerning whatever the needs for the home business owners, so as to have a proper and formal plan of business. A business plan is not just about bank appealing for the fund and all, but it also helps in the following ways:

  • Determines the position in the market right now and a proper scenario that the person can further grow or not.
  • Lists all the required resources which are needed to start and further run the business.
  • Creates more clarity and further focuses on what the requirements are and what is needed to be done.
  • Calculates the start-up cost and how much is needed to build profitable sort of business.
  • Definitely, obtaining finances.
  • Also helps in deciding whether there is a need to hire some employees or not.

What is included in the Strategies of Marketing & Sales Section: The basic requirement of marketing and sales is totally dependent on the following five P's (Ottman, 2017):

  • Product
  • Price
  • Place
  • Promotion
  • People

Further, the evaluation of marketing effectiveness is quite important (Robinson, & Robinson, 2018).

For the Buster’s, Jones made quite a good strategy of marketing and sales. The new location which she has chosen is firstly just two building blocks away from her current store. She is planning to manage that new store by herself. She decided that she will hire one more employee as full time for her current store and will pay her full attention to the new store. Initially, according to her plan, her new store will be open for 5 days a week only (Keegan & Rowley, 2017). So that on Saturdays and Sundays she can give her time to her first store and do all the maintenance and management part. Further, when there will be a rush in the new store as well, she'll hire employee/employees in the new store as well. Currently, her first store is doing quite well and is attracted by everyone in the building as the store fulfills all the needs as well as demands of everyone in the building. As the location where she is planning to open a new store is a prime location as well, because it is also an office building, and Jones clearly knows what an office building demands from a store, so there is no chance that her planning will fail. Like her current store, her new store will also be Sole Proprietorship sort of a store. But initially, she will not just stuff her store full, gradually with the period of time and increasing members in the building, she will increase the store items. Also, there is zero risk factor in her plan, because if something is not getting a good sales in that store, she can just move those things or articles to her first store, because there she knows that there is no chance that product will not be sold. Even the packed food items as well, if on any particular day, she'll not get good sales, her food items like sandwiches and all will not go waste at any cost, she'll simply move those food items to the first store 2 to 3 hours before closing (Díaz-Pérez, & Bethencourt-Cejas, 2016)

b) Marketing/sales requirements for the business

As discussed in the above part the sales and marketing depend on five P's i.e. Price, Product, Promotion, Place, and People.

  1. Price of goods/services: Jones outlines the pricing strategies that will help her reach her target profit margins. She made her price list such that all her products and services remain competitive and also allows her to make a quite a good margin or profit. According to her, when she calculates the price, she takes into consideration of both expenses i.e. fixed expenses and variable expenses and this ensures her that she is making quite a good profit (Flood, Jagadish,  & Raschid, 2016).
  2. Product: She described the services or products which are offered in the store also include the physical attributes of those services.
  3. Promotion: Jones decided to promote on a very good level, she decided firstly to announce about her store in her current building. She will promote gradually that Buster's is going to open one new branch in a new office building which is just two blocks away. Then she will target the streets and newspapers as well. In the new office building also, she'll put the announcement notice in the new building as well. Even she'll target the nearby stations like bus stops, metro stations. In this way, she'll cover almost every sort of crowd.
  4. Place: The location, the place is undoubtedly the prime one. The location is the office building which is soon going to be inaugurated. Because the location is also an office building, so Jones knows what are the requirements of such places as she currently is running a one in some sort of location.
  5. Competition: Although there can be a tough competition still, for now, there doesn't seem to be any sort of problem, because in the new building there is one who's considering to run such a store. And if in case if someone else also comes up with a plan, then also there is no threat to Jones because she already has one store which is going quite well. Also, for now, there is no one in the market who understands the needs of the public well in reference to the store. So definitely she’ll take off very well (Geng, Bose, & Chen, 2015).


a) Location of business

The current location as well as the new location, both are really very prime sort of location, there is no doubt in this that locations have any sort of issues, as mentioned earlier also, both the locations are office buildings. Where on a daily basis hundreds of people come and go. Hundreds of people are working in that building. And for all of their needs, Buster's is doing really very great. And definitely, for the new building plan will work as same (Spillan, & Ling, 2015).

b) How the business will be operated

Jones decided that she'll give her full time to the new building initially. But she decided that the new store will open for five days a week only so that she'll give Saturdays and Sundays for the management part as well. And for the current store she decided that she'll keep one more employee as a full-time worker, keeping in mind that the current store should not suffer at any case because as of now, the prime source of income will be the present store only (Gepp, & Kumar, 2015).

Legal and sundry issues

a) Legal and related issues that need to be addressed

Mainly there are five quite common sorts of issues that are faced by the businesses (Fraser &Roberge, 2016):

  1. Disgruntled Employees
  2. Discrimination or Harassment Cases
  3. Immigration Audits
  4. Copyright and Patent Issues
  5. Dissatisfied Customers

Following are the five major legal issues that the firm can face in any critical case.

b) How legal issues will be handled

If in any worst situation, there rises any sort of legal action against the store. The following are some points according to which one can handle:

  1. Having a proper plan so as to deal with legal disputes or issues.
  2. If the issue is relevant, then the contract must be reviewed.
  3. Consult to the lawyer.
  4. There must be an attempt to reconcile
  5. Arbitration
  6. Litigation

These legal issues could be mitigated by her if she enters into the strategic alliance with another legal department which could help her to meet all the applicable laws and regulations for setting up a new venture (Jiang,  Habib, & Gong, 2015).

Major Challenges

There are some chances that the new store can face some difficulties or challenges. As in the new building, there will be new offices and workplaces and comparatively, the new building will not be filled initially, the place will not be crowded for the few months of the starting and there are possibilities that the whole stock will not be sold within the time like before the expiry of the edible products, but still then also, there will be no chance of loss because Jones can move those items to her new store within time, and for sure, there will be no chance that those products will not be sold there. Another challenge must be like if someone else also plans to open such type of store in that building. But again this will also not be that of an issue as Jones right now is in that place, who knows how to handle such stores in such buildings very well, no other person can make this work better than her (Lose &Tengeh, 2015). In addition to this, another major challenge for the business would be arranging the finance for setting up a new store. She could raise fund by using private funding and could also borrow money from her friends. Nonetheless, she needs to find out which fundraising option would be more beneficial for her. The cost of capital and financial leverage both would be required to assess by her before accepting the project. The lower the cost of capital the more return on capital employed she would be having out of her investment options.