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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Convenience Store SWOT Analysis

 

Strengths

 

Food and small household items are always considered necessities. As such, convenience stores are extremely safe small business investments as these products are required by the general population. The gross margins generated by convenience stores are moderate with most products generate 25% to 40% of gross profits. The startup costs of a new convenience store are relatively low. Generally, an investment of $50,000 to $100,000 is required to get a new store running and profitable. Once established, convenience stores provide a highly predictable stream of revenue for its owners. The barriers to entry for this type of business are moderate. It is important that a convenience store owner find a highly visible retail location. Once one is sourced, it provides a tremendous amount of marketing strength for the business.


Weaknesses

 

The only real weakness faced by convenience stores is that they are in constant competition with similar locations and pharmacies. This is a highly mature business, and there are no major advances that will be able to differentiate one location from a competitors location. The operating costs of a convenience store are relatively high, and spoilage issues in regards to inventory are something that needs to be dealt with on an ongoing basis.


Opportunities

 

Convenience stores are able to expand their revenues by increasing the number of items available for sale. Many owners develop a section of their location that provides freshly prepared breakfast and lunch specials. This can greatly increase revenues for a convenience stores. Beyond expanding the revenues in one specific store, many convenience store owners seek to establish multiple locations. Banks are almost always willing to provide financing to these businesses as they generate highly predictable streams of revenue, and they have a large tangible asset base. Some entrepreneurs seek to acquire convenience stores that are already operational and profitable.

 

Threats

 

The primary ongoing issue faced by convenience stores are competitive matters. The other threat regards improper handling of food items by employees. There are no pending legislative changes that would impact the way that a convenience store conducts business.


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