Executive Summary

Mission
Keys to Success
Company Summary
Company Ownership
Start-up Summary
Products
Market Analysis Summary
Market Segmentation
Strategy and Implementation Summary
Competitive Edge
Marketing Strategy
Sales Strategy
Sales Forecast
Management Summary
Personnel Plan

Executive Summary
Capital Builders Merchant will be the complete centre for all builders and home
improvement needs. We will strive to provide the best range of building products and
accessories, as well as the customer service to go with it.
Builders merchants offer a convenient one-stop-shop, providing construction workers
with a wide variety of tools and materials. The majority of sales will centre on lowmargin, high volume materials such as bricks and cement, drainage pipes, and
plasterboard. Additional goods supplied may include higher value products like power
tools, timber and roofing materials, as well as smaller accessories, such as locks and
lighting.
Capital Builders Merchant will provide customers with sound product advice and
quotations. We will offer a delivery service as well as 'added value' services such as key,
glass and brick cutting, and a hire/repair department.
The industry is becoming increasingly technical and we will have computerised systems
available which allow us to operate tight internal controls over stock and credit risk, and
to offer a faster and more comprehensive customer service. Some of these systems
include computer-aided design and planning facilities, which customers can use to plan
work and prepare quantities on site.
Capital Builders Merchant will also stock a wide range of fixings and fastenings (screws,
nails, bolts, wall plugs, etc). Our range will also include general usage household articles
from tap washers to curtain track, items for repair and maintenance (fillers, sealant,
adhesives, etc), security products for doors and windows (locks, latches, chains, etc),
decorating materials, steps and ladders, hand and power tools, electric lamps and
electrical accessories.
We will also sell plumbing items from plugs to shower units. Houseware goods and
gardening sundries will also feature strongly. Capital Builders Merchant will also stock
domestic cleaning materials, cookware and plastic wares. Gardening stock will include
lawnmowers and hand tools, pesticides and insecticides, seeds and bulbs, barbecues and
garden furniture.
Capital Builders Merchant will focus on three significant customer groups:

Customers who need assistance in planning a project/repair

Local repair and home improvement professionals

There are fewer independent builders merchants due to the growth of out of town
builders superstores. However, the number of builders merchants is growing, however
longer opening hours including Sunday opening and car parking facilities may give
superstores the edge.

The independent is still a valued service in terms of convenience, local customer

awareness and niche markets.
Demand will vary according to the time of year. Seasonal demand is a major factor garden equipment is very popular over the summer months and building work as a whole
increases over the warmer months.
A location has been secured that offers very good foot and traffic accessibility. The store
will be efficiently set out to increase sales and give the customers the upmost in attention.
The projected growth rate for Capital Builders Merchant is quite steady. The store will
reach profitability by month six and will have revenue of ** by year three.
Mission
The mission of Capital Builders Merchant is to offer quality builders products in a
customer-friendly shopping environment. Our customers will get assistance quickly and
will leave the store prepared to get the job done right the first time.
Keys to Success

Location
Seasonal Products:
Repair/Project Resource Area
In-Store Expertise

Company Summary
Capital Builders Merchant offers the parts, material, and advice to tackle any building
work. The store's owner, John Smith, has worked in the building industry for over ten
years. Most recently, he was the manager at Capital Builders located ten miles outside
Capital City.
Capital Builders Merchant is located within Capital City. The traffic near the site is very
strong as it is on the main route into Capital City.
The closest builders store to Capital City is a twenty-minute drive away.
The business will make a profit in month six, and will grow steadily each consecutive
month.
Company Ownership
John Smith owns capital builders Store.
Start-up Summary
A builders builders merchants will need a large amount of capital at start up, without the
guarantee of a quick return. Several thousands of pounds worth of materials will need to
be bought in to ensure a large stock supply. Someone new to the construction industry
may face higher capital costs than those with contacts and experience, as they may be
able to obtain supplies on credit. Customers will look for a builders merchants that
stocks a wide range of materials, so skilled ordering is essential as a business cannot
afford to hold unsold materials.
Premises will need to be large enough to allow materials to be displayed and stored. A
sizeable yard will be useful for both accepting deliveries and providing customer parking.
Many builders merchants are located on industrial or retail estates where land is cheaper.
As a high amount of capital is involved in a new business, purchasing an existing firm
should be considered. While this will involve considerable investment, there will be an
established customer base and turnover.
Further costs include: a vehicle for making deliveries; a fork lift truck and lifting device
for loading customers' vehicles and moving heavy stock around; racks, shelving and
display units for both the shop front and the storage area; equipment for any additional
services offered, e.g. brick and glass cutting, repairs; and an electronic till (around 150).
Computer based systems covering the areas of sales, accounting, re-orders, inventory
control, stock-taking, customer information, etc, may be needed. Security, staffing,
promotional costs and stationery should also be considered. Office equipment will
include a computer (600), printer (from 60), telephone (25) and fax machine (150).

Insurance cover for fire, theft, Product and Employers' Liability will be required;
insurance could also be taken out against bad debts.
The start-up cost of Capital Builders Merchant will consist primarily of inventory and
display equipment. John Smith will invest his own money and will also secure a SBA
loan.
It may be possible to establish the store from around 90,000. However, larger premises
will be required for a wider range of stock that will enable more effective competition in
this market.
The total cost will vary according to the range of products stocked and quality of fittings
chosen.
Basic equipment costs could include:

A basic cash register (around 150). More advanced EPOS systems are more
expensive (around 1,400).
Shelving and static display units. Prices can vary from several hundred to several
thousand pounds. They can be made by a joiner or be purchased from a shop
fitting specialist.
Fax machine (150).
Telephone/answering machine (30).
PC (from around 600).
Printer (60 plus for an inkjet printer).
Metal filing cabinet (90).
A small van (at around 14,000) for deliveries. This could be purchased secondhand or initially hired when needed.
Opening stock. This cost will vary greatly depending on the type/amount of goods
sold.

Start-up Expenses
Legal
Stationery etc.
Insurance
Rent
Display Set-Up
Expensed Equipment
Advertising

1,000
500
1,000
3,000
5,000
5,000
2,500

Total Start-up Expense

18,000

Start-up Assets Needed

Cash Balance on Starting Date

30,000

Start up Inventory
Long-term Assets

22,000
20,000

Total Assets

72,000

Total Requirements

90,000

Funding Investment
John Smith
SBA Loan

45,000
45,000

Total Investment

90,000

A Health and Safety Compliance Checklist

Business owners are legally obliged to consider the health and safety of themselves, their
colleagues, and anyone else affected by their work and the way they do it. The Health and
Safety at Work etc. Act 1974 states that employers must:

Identify risks at work and possible precautions.

Identify the person responsible for carrying out the precautions.
Provide a means of carrying out their health and safety policy and procedure for
reporting accidents.
Identify relevant legal standards that apply in each part of the workplace.
Have a written statement of general policy (if they have five or more employees)
with respect to health and safety at work.

Since the introduction of the Act, a series of regulations has been introduced to address
specific areas of workplace health and safety in more detail.
This checklist covers the main aspects of health and safety law, helping you to ensure
your business complies with all the relevant legislation.
Working environment

You must provide a safe place of work and provide and maintain safe access to
and exit from that workplace.
You must ensure that the access points and paths leading up to your premises or
site are safe and ensure that any handrails are secure.
You must provide 'adequate welfare facilities' - this includes toilet and washing
facilities, lighting, and maintaining a reasonable room temperature.

Risk assessments

You must make a reasonable assessment of any risks to the health and safety of
your employees (or yourself if you are self-employed) and must record any
significant risks found during the assessment.
This assessment must also cover the risk to the health and safety of any person not
employed by the business, including members of the public.

Health and safety policy

If you have five employees or more you are legally required to have a written
policy on health and safety.
Employers of fewer than five staff don't need a written policy, but must still
conduct a risk assessment.
You should also identify the employees who have specific responsibilities related
to health and safety, such as first-aiders and fire safety officers.
Your health and safety policy should include a general statement detailing your
business' concern for health and safety issues, as well as an outline of the key staff
involved in health and safety in the workplace and an explanation of their duties.
All employees must have easy access to the policy. It could be included in the
staff handbook, placed on a noticeboard or on your staff Intranet. The policy
needs to be easy to read and understand.

Providing information and training

You must provide health and safety training to new employees as part of the
induction process. New recruits need basic induction training in how to work
safely and this should include fire safety, evacuation procedures and first aid.
Training should also cover the firm's health and safety policy, how it is
implemented and the safety procedures used in the workplace.
You should provide refresher training to workers who need it, especially when
there are changes to procedures or legislation.
In a small business, it is likely that your own staff will deliver on-the-job training
in health and safety procedures. An external trainer will only be needed if a
particular training requirement cannot be met by your own staff.
People changing jobs or taking on new responsibilities will need to know about
any additional health and safety implications.
Particular attention should be given to the training needs of young employees who
can be vulnerable to accidents. New, inexperienced or young employees must be
adequately supervised.

Safety committees

If any of your staff are represented by recognised trade unions, and you are
requested in writing by two or more safety representatives to set up a safety
committee, you must do so. The role of the committee will be to ensure health and

safety is kept under review and to make sure any practical measures are
implemented.
If trade unions are not recognised in your business, you must consult employees
either directly or through elected 'representatives of employee safety' on issues
regarding health and safety.

Reporting accidents and ill-health at work

Deaths, major injuries and dangerous occurrences must be reported immediately

by phone or e-mail, followed by an accident report form sent to the enforcing
authority within ten days.
An accident that leaves a worker unable to do the full range of their normal duties
for more than three days must be reported within ten days via an accident report
form.
Work-related diseases must also be reported to the enforcing authority on a
disease report form (F2508A).
All injuries, diseases and dangerous occurrences can be reported to the Incident
Contact Centre. If preferred, incidents can be reported directly to the HSE local
area office or local authority if it enforces health and safety legislation for your
business.
Records must be kept for three years after the incident and the enforcing
authorities can ask for these records to be produced on request.

See www.hse.gov.uk/riddor for more information.

First aid

You have a duty to provide adequate equipment and facilities in the workplace to
enable first aid to be provided to employees if they are injured or become ill at
work.
All staff should be made aware of the arrangements for first aid and the
procedures for first aid treatment. These should be clearly identified in your
business' health and safety policy.
At least one notice should be posted in all premises to highlight the location of the
first aid kit and the names and locations of trained first-aiders or appointed
employees.
The HSE recommends specific numbers of first aid personnel to be available at all
times when there are people at work. The number of first-aiders should be based
on the assessment of risk and number of workers.

Fire safety

A 'responsible person' (the employer or people in control of the premises) must

carry out a fire risk assessment, which must focus on the safety in case of fire of
all 'relevant persons', especially those with special needs.

If you employ five or more people you must record the significant findings of the
assessment.
You must make a plan to deal with emergencies and your premises must be
equipped with appropriate fire fighting equipment, fire detection devices and
alarms.
You must take steps to ensure there is adequate protection if flammable or
explosive materials are used or stored on your premises. Where possible,
dangerous substances must be replaced with safer substitutes.

Manual handling

You should avoid hazardous manual handling operations in your workplace if at

all possible. This can be done through eliminating or redesigning processes, or by
introducing mechanical operations to move or support loads.
Where such measures cannot be implemented, you should properly assess the risk
involved in the hazardous operation.
Following on from your assessment you should develop and implement strategies
to reduce the risk of injury from the operation to the lowest level reasonably
practicable.

Noise

You must take steps to reduce the risk of damage to employees' hearing as a result
of exposure to noise, minimise exposure to noise and provide personal ear
protectors where noise rises above a certain level.

Protective equipment

You must assess which types of personal protective equipment (PPE) are suitable
to protect against specific hazards and ensure compatibility where more than one
item of equipment needs to be worn.
You must provide suitable PPE for use at work wherever there are risks to health
and safety that cannot be adequately controlled in other ways.
Equipment should be kept clean and in good repair, be replaced when necessary
and kept properly stored when not in use.
You must provide adequate information, instruction and training to ensure that
protective equipment is used properly.
You must provide some protection for non-employees such as visitors, contractors
or, if necessary, the general public.

Hazardous substances

You must control people's exposure to hazardous substances to prevent ill health,
such as chemicals which people work with on a day-to-day basis, and conduct an
assessment of the associated risks.

You are required to find out whether the building you occupy contains asbestos
and what condition it is in, to assess the risk and to put together a risk
management plan.

An Introduction to Health and Safety Regulations

From your first day in business, you need to comply with health and safety regulations.
No matter what size your business is, the law requires you to look after the health and
safety of your employees, yourself and anyone associated with your business, such as
customers or passers-by.
Your obligations become more complex as you start to employ more people, so
familiarise yourself with the regulations as early as possible. Various pieces of legislation
also concern the self-employed, young people doing work experience, mobile workers,
home workers and agency workers.
Please note that Northern Ireland has separate legislation concerning health and safety,
although the rules are very similar to those in England, Scotland and Wales. The Health
and Safety Executive (HSE - www.hse.gov.uk) monitors the regulations in England,
Scotland and Wales and the Health and Safety Executive Northern Ireland (HSENI www.hseni.gov.uk) monitors the regulations in Northern Ireland.
What are the key health and safety regulations to be aware of?
There are a number of pieces of legislation that you need to be aware of, including the
following:

Health and Safety at Work Act. This is the main piece of health and safety
legislation that all businesses must comply with. It stipulates that an employer has
a duty of care towards their employees and other individuals that have contact
with the business. Employees also have certain duties to ensure their own safety
and the safety of others under the Act.
http://www.hse.gov.uk/legislation/hswa.htm
Management of Health and Safety at Work Regulations. These Regulations state
that all employers (regardless of how many employees they have) and the selfemployed are required to carry out a risk assessment. Other duties include
contacting the emergency services where necessary, providing information and
training to employees, and making special arrangements for certain employees,
such as pregnant women and young people.
http://www.legislation.gov.uk/uksi/1999/3242/contents/made
Workplace (Health, Safety and Welfare) Regulations. The purpose of these
Regulations is to ensure that workplaces meet the health, safety and welfare needs
of all employees, including those with disabilities or additional needs.
http://www.legislation.gov.uk/uksi/1992/3004/contents/made
Safety Representatives and Safety Committees Regulations, and the Health and
Safety (Consultation with Employees) Regulations. These Regulations require

businesses to consult with employees or their representatives regarding health and

safety issues. http://www.legislation.gov.uk/uksi/1977/500/contents/made
Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
(RIDDOR). These Regulations require deaths, major injuries from work-related
accidents, diseases and dangerous occurrences to be reported to the enforcing
authorities - either the HSE/HSENI or the relevant local authority. For more
information on reporting see www.hse.gov.uk/riddor or
www.hseni.gov.uk/riddor.pdf.
Regulatory Reform (Fire Safety) Order. This Order requires all businesses to carry
out fire risk assessments and to have procedures in place in case of fire.
Health and Safety (First Aid) Regulations. These Regulations explain the
arrangements necessary for first aid requirements in the workplace.
Control of Substances Hazardous to Health Regulations. These Regulations
require employers to control people's exposure to hazardous substances to prevent
ill health.
Personal Protective Equipment at Work Regulations. These Regulations are
designed to ensure that all businesses assess the hazards facing staff and adopt
practical policies that minimise any risk present in the workplace, for example by
providing appropriate protective clothing.
Provision and Use of Work Equipment Regulations. These Regulations require
that the risk to employees' health and safety from equipment used at work should
be prevented or controlled.
Health and Safety (Display Screen Equipment) Regulations. These Regulations
concern health and safety issues relating to a computer user's workstation, and
include rules and guidance on the safe use of ancillary equipment such as
keyboards, telephones and printers.
Manual Handling Operations Regulations. If you or your employees are involved
in strenuous lifting, carrying, pushing, pulling, reaching or repetitive handling,
these Regulations will apply.
Control of Asbestos Regulations. Asbestos is the largest single cause of fatal
work-related diseases. The Regulations prevent you from importing, supplying or
using asbestos (whether new or second-hand, such as asbestos tiles or plaster
panels containing asbestos). You should find out if there is asbestos in your
premises and, if so, it may need to be removed by a licensed contractor if the
materials containing the asbestos are not in good condition. Even if they are in
good condition, their condition should be monitored and managed. You need to
provide training if any of your employees would come into contact with asbestos
at work.
Control of Noise at Work Regulations. The Regulations require that you reduce
the risk of damage to employees' hearing as a result of exposure to noise; to
minimise exposure to noise; and to provide personal ear protectors where noise
rises above a certain level.
Electricity at Work Regulations. These Regulations aim to minimise danger by
requiring all electrical systems to be properly maintained. They are also

concerned with the electrical construction and capability of equipment and its
suitability for use in hazardous environments, as well as other factors.
Work at Height Regulations. These Regulations apply to all work at height where
there is a risk of a fall liable to cause personal injury.

What obligations do these regulations impose on businesses?

The HSE recommends a number of key objectives for businesses to comply with health
and safety legislation:

Obtain employers' liability insurance. This is mandatory if you employ any staff,
and the certificate must be displayed in your workplace (in either hard copy
format or in electronic format via an Intranet) and retained for 40 years.
Obtain competent advice from a business adviser or solicitor. This will aid you in
fulfilling your duties under health and safety law.
Compile a health and safety policy. Decide how you intend to manage health and
safety. If you have more than five employees your policy must be written down,
however it is good practice for all businesses to have a written policy as this
shows that your business takes health and safety seriously.
Carry out a risk assessment. Decide what could cause harm to employees or
visitors and how to take precautions to minimise these risks. You need to go one
step further and actively put procedures in place to minimise these risks.
Provide for basic health, safety and welfare needs, i.e. providing toilets, washing
facilities and drinking water for all employees.
Provide health and safety training to staff. This must be free and provide enough
information to let your staff know what hazards and risks they may come across
and how to deal with them.
Consult your staff on health and safety matters.
Display the health and safety law poster. This contains basic information on health
and safety legislation and contact numbers. Alternatively you can provide
employees with leaflets containing the same information. These can be obtained
from HSE Books (see below for the contact information).
Report relevant workplace accidents, diseases and dangerous occurrences as soon
as possible to either the HSE or your local authority.

Carrying out a risk assessment

Carrying out a risk assessment will involve looking at whether employees are exposed to
risks either because of the work they are doing or the condition of your premises, plant,
equipment or vehicles. You must also assess potential risks to visitors such as customers
or contractors. If you have five or more employees you must record any significant risks
discovered, but it is beneficial for your business to make a written record of these risks no
matter what size it is.

When conducting a risk assessment it is important to remember that hazards may not all
be physical. Stress at work is increasingly common and can be a result of bad working
practices. Check that staff are not overworked and that working relationships are
effective.
Risk assessment is generally a simple process (especially for low-risk environments like
offices) and the HSE provides step-by-step guidelines on how to do it. See the HSE
publication 'Five Steps to Risk Assessment' (www.hse.gov.uk/pubns/indg163.pdf).
Following your risk assessment, you may need to make repairs or provide protective
clothing or equipment to reduce the risks. You can do this yourself or you can delegate
the tasks to a competent person. Make a record of the measures you have introduced
because this will be useful in the event of a health and safety inspection.
Compiling a health and safety policy
If your business employs five or more people, you are required by law to have a written
health and safety policy. This policy needs to be displayed somewhere prominent such as
in the staff handbook. Make sure that the policy is written in a way which is easy to
understand and that staff are made aware of the policy.
Obtaining employers' liability insurance
This insures your business against liability for employees' injury or disease arising from
their work activities. You must obtain cover of at least 5 million. However, it is
advisable to look at the risks and liabilities to see if more cover is needed for your
particular business. Family businesses that employ only close relatives (and that are not
limited companies) may not be required to take out this insurance. If you think that you
do not need to take out this type of insurance it is advisable to consult the HSE for more
information. You need to purchase your insurance policy from an authorised insurer - the
Financial Services Authority (FSA) has a list of these (www.fsa.gov.uk/register/).
Providing health and safety training for employees
You have an obligation to provide training for new employees as part of their induction to
your business. This needs to cover safety systems used in the workplace, fire safety,
evacuation procedures, the health and safety policy and the identity of employees who are
responsible for first aid, fire safety and the reporting of accidents.
You should also provide refresher training to those workers who need it, especially when
there are changes to legislation or procedures. Special attention should be given to any
employees aged under 18.
Providing for basic health, safety and welfare needs

You must provide a safe and healthy environment for all your employees, including
people with disabilities. You also need to take account of their welfare needs. You will
need to consider:

Lighting.
Temperature.
Toilets.
Washing facilities.
Drinking water.
Ventilation.
Cleanliness.

This is not an exhaustive list. One of the most common causes of injuries in the
workplace is slipping or tripping. You must make sure that floors are not slippery - or that
warning signs are provided if they are - and that the workplace is well lit and clear of
hazards such as trailing cables.
The HSE publishes 'Workplace health, safety and welfare: a short guide for managers' to
help you understand these duties (www.hse.gov.uk/pubns/indg244.pdf).
Consulting employees
Recognised trade unions have the right to consult with employers about workplace safety.
If requested, you must set up a safety committee to supervise the implementation of
health and safety policy. If there is not a recognised trade union, you are required to
consult your employees, either directly or via elected safety representatives, regarding
health and safety issues.
Reporting accidents
You need to establish an internal system for reporting and recording accidents. This could
be in the form of an accident book. You should keep records of any relevant incidents for
three years.
You must report work-related deaths, major injuries, diseases and dangerous incidents to
the HSE or your local authority. See www.hse.gov.uk/riddor/guidance.htm for more
information.
Fire safety
The Regulatory Reform (Fire Safety) Order removed the requirement for a fire certificate
and placed more emphasis on the requirement for business owners to carry out fire risk
assessments. The person who has control over the premises (usually the employer) must
take reasonable steps to reduce the risk from fire and to make sure that people can safely
escape if there is a fire.

It is important for employees to be fully aware of the procedure if a fire occurs, including
the evacuation procedure and arrangements for calling the fire brigade. This may be in
the form of a simple 'Fire Action' notice displayed in a prominent place in the workplace.
Ideally, employees should be given a copy of the emergency plan and talked through it.
For new staff, this can make up part of their induction. Staff working in areas of higher
risk should be provided with emergency procedures specific to that risk, for example if
they work with hazardous substances or heavy machinery.
First aid
At least one first aid notice should be posted in your premises, indicating the location of
the first aid kit and the names and locations of the trained first aiders and the person
responsible for taking charge in the event of illness or an accident. The HSE has
guidelines on the number of first aid personnel a business should have, depending on the
number of employees and the assessment of risk. A first aider is someone who has passed
a training course in administering first aid at work and holds a current 'first aid at work'
certificate. All employers are obliged to have a first aid box.
You are responsible for making any necessary contact with external services, particularly
regarding first aid, emergency medical care and rescue work.
Dealing with hazardous substances
You must carry out a risk assessment on substances you use (such as paints, solvents and
cleaning agents) and substances generated from work activities (such as dust and fumes).
You must then take steps to remove or control the risk.
Providing safety equipment
You must provide suitable safety equipment (such as hard hats, reinforced footwear and
reflective jackets) for use at work wherever there are risks that cannot be adequately
controlled in other ways.
Equipment provided for use at work must be:

Suitable for its intended use.

Safe for use, maintained in a safe condition and, in certain circumstances,
inspected to ensure that it is safe.
Used only by people who have received adequate information, instruction and
training.
Accompanied by suitable safety measures, such as protective devices, markings
and warnings.

Sharing premises with other businesses

If your workplace is shared with other businesses, they should be informed of any risks
you find in communal areas and the action which has either been taken or is required to
address them. You also need to ensure that you co-operate when drawing up emergency
procedures, especially where shared escape routes and fire alarm systems are involved.
Hints and tips

Inspectors from the HSE or local authority will ensure that your business is
complying with health and safety law. The HSE deals with factories, farms and
building sites, while local authorities look after offices, shops, hotels, and catering
and leisure establishments.
Inspectors will check that your business is complying with the legislation,
investigate any accidents and complaints, and help you to understand what you
need to do to stay within the law.
The HSE has an information line (0845 345 0055) that is open Monday to Friday
between 8am and 5pm. You can also contact your local authority - it is usually the
environmental health department that deals with health and safety. See
www.direct.gov.uk to locate your local authority.

Further information
Books
'The Manager's Guide to Health and Safety at Work'
Jeremy Stranks
Kogan Page
Legal publications
'An introduction to health and safety'
INDG259
HSE Books
Tel: (01787) 881165
Website: www.hse.gov.uk/pubns/indg259.pdf
'Five steps to risk assessment'
INDG163
HSE Books
Website: www.hse.gov.uk/pubns/indg163.pdf
'Workplace health, safety and welfare: a short guide for managers'
INDG244
HSE Books
Website: www.hse.gov.uk/pubns/indg244.pdf
'COSHH: A brief guide to the Regulations'

INDG136
HSE Books
Website: www.hse.gov.uk/pubns/indg136.pdf
'COSHH NI: A brief guide to the Regulations'
Health and Safety Executive Northern Ireland (HSENI)
Website: www.hseni.gov.uk/coshh(ni)_brief_guide_to_the_regulations.pdf
Health and Safety Law in Northern Ireland: What you should know'
HSENI
Website: www.hseni.gov.uk/health_and_safety_law_ni.pdf
'Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (Northern
Ireland)'
HSENI
Website: www.hseni.gov.uk/riddor_booklet_3.pdf
'Risk Assessment Simplified'
HSENI
Website: www.hseni.gov.uk/risk_assessment_simplified-2.pdf
'The Guide to Workplace Health and Safety'
HSENI
Website: www.hseni.gov.uk/guide_to_workplace_health_safety.pdf
'Managing Health and Safety at Work: Advice Pack for Smaller Firms'
Royal Society for the Prevention of Accidents (RoSPA)
Website: www.rospa.co.uk/occupationalsafety/smallfirms
Useful contacts
Royal Society for the Prevention of Accidents (RoSPA)
RoSPA House
Edgbaston Park
353 Bristol Road
Edgbaston
Birmingham
B5 7ST
Tel: (0121) 248 2000
Website: www.rospa.co.uk
Health and Safety Executive (HSE)
(1G) Redgrave Court
Merton Road
Bootle
L20 7HS

Tel: 0845 345 0055

Website: www.hse.gov.uk
Health and Safety Executive Northern Ireland (HSENI)
83 Ladas Drive
Belfast
BT6 9FR
Tel: 0800 032 0121
Website: www.hseni.gov.uk
The HSE Incident Contact Centre provides information about how to report incidents
under the RIDDOR Regulations.
Tel: 0845 300 9923
Website: www.riddor.gov.uk

Products
Capital Builders Merchant offers the parts, material, and advice to tackle any building
job. The primary focus will be to satisfy the seasonal needs of the area's customers.

Autumn / Winter: Weather protection projects.

Spring: Garden/lawn projects/home improvement projects.
Summer: Outdoor building projects.

Capital Builders Merchant carries the best products in the builders business. We are not
interested in price without quality. We provide products that are proven in the market, are
strong brand names with an excellent after sales service, and most importantly products
that give satisfaction to our customers.
We strive always to provide a store environment that appeal to our customers in terms of
merchandising display and product information. No one should feel 'lost' when shopping
for their builders or home improvement needs. Products should be adequately explained
through Point of Purchase in the absence of our staff. In terms of product range, we aim
to provide a complete yet focused range for the builders and home accessories market.
We should have everything you need as a builder or for the home, or direct you to the
nearest source.
The first section customers will find when they enter is a repair/project resource area that
they can use to plan repairs or projects. There will be a repair/project resource person to
answer questions and direct them to the section of store where the needed products are.
Store employees will be knowledgeable in building and in home repairs/projects. In
addition, the repair/project resource area will be used to conduct short trainings and
demonstrations in home repair and home projects.
The customer is the reason we exist. We believe in attentive and informative service, and
that the customer should always feel "at home" when visiting our store and talking to our
staff. We should always be able to answer their questions, or find an alternative for them.
Point of Purchase Materials
Introduction
A range of different materials can be used to promote particular products, or product
ranges, in retail outlets. Point-of-Purchase (P-o-P) methods have traditionally been used
in the 'Fast Moving Consumer Goods' (FMCG) area, but are now seen in a wider range of
markets. Material might range from basic posters and leaflets to stands and shelves
especially designed to display the product. The retailer can be supplied directly by the
manufacturer, or materials could be distributed by another supplier. Whilst it is not

always feasible to use such methods, there can be scope for small businesses to use them
in some outlets.
Why Provide Point of Purchase Materials?
Point of Purchase (P-o-P) materials offer benefits to retailers. Suppliers can use them to
encourage retailers to sell their goods. Materials must be part of a well thought out plan
with clear aims, especially if they are used in conjunction with other advertising and
promotions. There are a number of reasons for using P-o-P materials.
Attention
P-o-P materials attract customers to items on sale. This increases the chances of a
customer buying on impulse, or at least inspecting the goods with a view to a future
purchase.
Selling
Materials should enhance the overall appearance of items, making them appealing to
customers and so encouraging more sales. Materials can also be a way of controlling
displays by the retailer, standardising the way products are marketed. Clearly, displays
should be designed in a way that complements other promotional materials and enhances
the product/supplier image.
Incentives
Good displays enhance the appearance of the shop - an incentive for the retailer to use
them. They will also be encouraged if product sales are expected to improve (unless it is
at the expense of sales of other lines).
Information
Some products require a lot of information to be supplied before customers are prepared
to buy. This could be in the form of leaflets about the product, videos demonstrating its
use, etc.
Special Promotions
Special promotions can be presented and packaged using P-o-P materials, e.g. display of
free gifts.
Types of Point of Purchase Materials
Methods of displaying products for sale will vary. Displays should be both inventive and
original.

Stands
Display stands are a good method of displaying products. They can be either free
standing or placed on a counter. If they are not good quality, they soon become shabby,
and will not display the goods well. They may also present a bad image of the supplier.
Shopkeepers may not have the time to clean stands. The supplier may have to make time
to do this. Stands have to be durable in order to last in a retail environment, especially if
trolleys are used. They must also be stable so as not to topple over when full or half
empty. 'On-the-counter' stands are often dictated by the type of outlet and consequently
the type of display counter available. The amount of counter space available is unlikely to
be very large, and the display unit design should allow for this. If they are too high, they
may detract from other displays on or behind the counter, and may also prevent the owner
from having an adequate view of the outlet. Examples of stands include: a jewelry range
displayed on a specially designed counter stand; a wall mounted bin in an outdoor
clothing shop for a brand of hiking socks; a local leisure guide with its own stand in
selected newsagents; a quality wooden stand with painted sign displaying a novelty toy
range in a souvenir shop.
Posters
These could be placed in the shop itself, e.g. on pillars, on the wall in a prominent place,
or on the window or door. They need to be eye catching. The size will depend on the
outlets involved. Old tatty posters do not look professional and may be detrimental. They
should be removed when the promotion has ended or before they become torn and outdated. It may be the supplier's responsibility to ensure that their clients update P-o-P
material regularly.
Leaflets
These can be left in the outlets, near the product, for consumers to pick up. Again they
need to be eye-catching, but should not contain too much information as it could detract
from their effectiveness. It is also possible to use leaflets to advertise discounts or run
competitions.
Packaging
Packaging can be designed to convert into an attractive display stand holding a quantity
of products. It is also positive marketing for the supplier - transforming delivery
packaging into sales stands could be seen as environmentally friendly.
Mobiles
These are either decorative structures hung from the ceiling, or strips of plastic attached
by sticky pads to the fixture at one end and with the logo or product name at the other.
These can be placed near the products, at the tills or around the shop.

Stickers
These can be attached to doors, windows, tills, fixtures etc. They include push / pull,
open / closed signs, and can advertise the product and/or the supplier.
Dump Bins
These are large free standing containers, usually made of cardboard to hold large amounts
of a product. They have a header board which contains details of any offer and often a
picture of the product. Dump bins cannot be used for all types of products, as they would
not be displayed to their best advantage.
Illuminated Displays
These may be out of the price range of small producers, but may be provided by larger
suppliers for independent retailers.
Promotional Gifts
P-o-P materials may be produced and used in conjunction with other promotional items
such as promotional gifts (pens, key-rings, etc), and packaging, e.g. boxes that can be
converted to displays.
Merchandising Strategies
Display material needs to be in the best place to encourage sales. Point of purchase
material is mainly positioned near to the product. Other good places in an outlet can be
found by spending time looking at the flow of people: finding out where most people go,
where they pause, and where they queue to be served. The area closest to the sales point
is usually the 'hot spot' where highest sales (particularly impulse buys) can be achieved.
The business should aim to display P-o-P equipment together with the product close to
where the customer flow is at its highest, e.g. areas near the entrance and at the top of
escalators or stairs.
P-o-P equipment can be expensive and may be wasted on some retailers. Some outlets
may not like to use P-o-P material (or need permission from a head office). Other outlets
may misuse it. It may be necessary to target particular outlets for this material, and only
offer it if it is thought that the increased sales will be sufficient to justify any costs
involved. Before developing materials, it will be useful to talk to retailers in order to take
their needs into account.
When providing a retailer with a display stand, it may be useful to state that it can only be
used to display the supplier's products, or to specify that, e.g. 25% of the stand can be
used by other suppliers whilst retaining the best 75% for itself. This may be a more
attractive proposition to the owners of outlets. These guidelines will need to be checked

as other suppliers may try to use the stand to display their products to the detriment of
one's own. Some P-o-P display stands could be provided as part of a deal to bigger firms,
e.g. if they buy 10 or 20 products, the display stand is provided free of charge. It is
important to ensure that the stand remains the property of the supplier, and if it is not
being used correctly, it should be reclaimed. Management should inform the shop owner
that this display material is on loan to exclusively display the supplier's product, and
cannot be used to display competitors products unless previously agreed.
Window displays can be used to attract customers into an outlet. P-o-P material may be
used to enhance this. A window display should not be so cluttered as to detract from its
impact.
Developing Point of Purchase Material
Small businesses that have not used P-o-P material before should start in a small way and
gain experience in retailer requirements before embarking on an expensive project.
Display equipment or materials may need to be adapted for different outlets. What works
in a major supermarket may not be as effective in a small grocery outlet or a specialist
shop.
P-o-P material needs strong, individual design to promote the product or company image.
If the business is not comfortable designing the P-o-P material, a firm should be used that
specialises in this area of promotion.
Useful Tips

Point of purchase material must look professional. Poor material may well detract
from sales. Retailers will not use materials which detract from the appearance of
their shop.
Stands must be constructed to suit their purpose. It may be difficult to develop a
stand that can be used across a product range, as each product can be of a different
size and with different packaging.
It will be useful to look at other displays in order to ascertain what is eyecatching. This could provide ideas for the businesses own promotional material.
P-o-P equipment should be planned to tie in with promotions or product launches.
Some P-o-P displays may have to be maintained regularly to keep the display full
and up to standard. The shopkeeper may not have time to do this and so the
providers of the stand may have to take this on.
It is important to ensure that stands/dump bins are stable and will not collapse or
represent a danger to shoppers.

Legal issues
Anyone setting up a business needs to be aware of general business legislation affecting
the day to day running of a business. In particular a furniture store / maker would need to
have an understanding of:

Copyright & Designs

In addition to the above, legislation stipulates that all precious metal jewelry over a
certain weight must be hallmarked under the Hallmarking Act.
How to Protect Your Designs
Your product designs could be vital to the value of your products. The law allows you to
protect those designs from being copied and used without your permission.
Ways to protect a design
The Registered Designs Act 1949 and the Copyright, Designs and Patents Act 1988 (these
are UK acts but local laws will be similar) allow three ways of protecting an industrial
design:

Design registration
Unregistered design right
Copyright

Each type of protection has its own implications and limitations; these are discussed
below.
Design registration
Design registration protects the appearance of all or part of an industrially produced
product, in particular its outward shape, colours, texture, construction materials and its
ornamentation. Registration is a formal process, through the local Design Registry, which
gives protection and certain rights to the registered proprietor or owner of industrial
designs.
Two rights are granted to the holders of registered industrial designs: the exclusive right
to make and import articles made to the registered design for the purpose of sale, hire, or
trade; and the exclusive right to issue licenses to other manufacturers or importers to do
the same.
To qualify for registration, your design must be 'novel' - that is, materially different from
any other previously published design. It must be a stand-alone design, but aesthetic
quality is not required for registration. You are allowed a one-year period for test
marketing a new design before filing your application for registration, but protection can
only be granted from the date of filing.
A design must be registered under a particular category of manufactured product (for
example, a clock, watch or teapot). Some designs cannot be registered. Generally, these

will be designs where copyright protection applies instead (such as sculptures, wall
plaques, medallions, literary or artistic printed matter, cards, book jackets and calendars).
Procedure for registering your design

Registered designs are open for public inspection at the Patent Offices
As the designer, you apply to the Designs Registry at the Patent Office for
registration. An application is usually made through a patent agent. If you work
for an employer, the employer will make the application if the design is to be
registered in their name.
To file your application, you will require four identical sets of design
representations (or five for designs that apply to a set of related articles).
Your representations will consist of drawings or photographs showing all the
different aspects of your products unique design.
A 'statement of novelty' will appear on each representation to identify your
design's novel features (for example, its pattern, ornamentation, shape and
configuration). All of its registerable design features must be clearly indicated.
The application form is submitted with the required filing fee.

The same form is used to register both a single article and a set of articles, and applicants
can claim 'priority' of an earlier filed design application in another country that abides by
the Paris Convention for the Protection of Industrial Property. This means that any later
applications made for design protection in any of these 'convention countries' can be
backdated to the day when the first application was made.
The later application cannot then be invalidated if the design has already been marketed.
The Designs Registry gives your design a number and filing date, and sends you a
receipt. The Registrar does not carry out any search to determine if your design really is
novel, but will seek objections if he believes it is not new. If no objection is forthcoming,
a Certificate of Registration is issued, giving ownership of the design to the person (or
organisation) to whom the certificate is issued.
Rights can lapse if the design registration is not renewed at the appropriate time, but they
can be restored within a certain period, subject to conditions.
Drawbacks to registering a design
There are a few potential problems to bear in mind:

Registration can be an expensive process, both in terms of money and time. This
could also be an advantage, however, because registration acts as a Keep Off
sign to any potential competitors who could be tempted to copy your design; the
effort and expense incurred shows that you consider your design valuable enough
to defend vigorously.

The protection is limited, as it is based on appearance only.

The registration can still be challenged at a later date.
The requirement of novelty can cause problems.

Other issues related to design registration

There are set time scales to be observed when you register a design. Normal
applications must be completed within 12 months of the application date and
special applications must be completed within 15 months. Most applications can
be completed well within these set times.
The maximum length of time a design can be registered for is 25 years. The initial
period is for five years from the date of application, and four successive five-year
extension periods are available after that.
Fees for registration are currently around 60 for a single article and around 90
for a set of articles. Lawyers and patent agents will of course also require payment
for their advice and services.
As the registered design owner, you may assign or grant licenses to others to use
your design for purposes of trade. This agreement must be registered at the
Designs Registry.
If the local Competition Commission sees a monopoly arising out of your design
registration that is against the public interest, the ministers can require you to
issue licenses of right to others.
It is not compulsory, but when your products are marketed, they should be marked
Registered Design' with the registration number included. This will be helpful in
the event of litigation - damages will not be awarded for a design infringement if
there are no reasonable grounds for believing the design was a registered one.

Unregistered design right

Unregistered design right is automatically owned by the designer (unless the design has
been commissioned, in which case the commissioner will be considered the first owner of
design right). As with copyright, the implementation of unregistered design right is
automatic. There is no regulating body, so there is no need for you to make any
application or spend any money.
Your design must be original to qualify for unregistered design right protection. This
simply means it may not have been used before in its specific design sector.
Unregistered design right is intended to provide protection for purely functional 3-D
designs and it only protects their shape and configuration. Surface decoration and unique
construction principles are not protected. Neither can a two-dimensional design be
protected by unregistered design right, as it is covered by copyright.
Protection periods

Unregistered design right first takes effect immediately a design is expressed in a visible
way. This could be in the form of a drawing, blueprint or prototype model. The design is
then protected for a period of 15 years.
A second stage at which unregistered design right becomes effective is the date when the
designed article is first marketed. Protection from this date is for a period of 10 years.
These two periods do not run sequentially, and it is the shorter period that will apply to
your design right for your design. Effectively, the first stage gives you protection for the
time it takes for your design to come to market - up to 5 years maximum - and then the 10
year limit for a new product will immediately apply.
The final time period to be aware of with unregistered design right is the time when you
must allow others to copy and manufacture your design under license. This comes onto
play just 5 years after the first marketing. When this stage is reached, anyone has the right
to reproduce under license from the design right owner - you cannot refuse any request to
do so. However, you may then charge a fee or a royalty. Should there be disagreement,
arbitration by the local Controller General of Patents is compulsory.
Exceptions to the full protection of design right
Spare Parts. Originally, makers of spare parts were accused of infringement by the
manufacturers of the original major product for which the part was being sold. This
limited consumer choice to spares made by the original manufacturer. Unregistered
design right now provides for this situation. Where they must fit or must match the
original product, spares may be identical to those produced by the original manufacturer
without infringing design right.
Unregistered design right does not confer an absolute monopoly like a patent or a
registered design. A design created by someone who can prove no knowledge of your
earlier one, will not infringe.
Copyright
Copyright protects artistic creations such as drawings, paintings and music. The Digital
Millennium Copyright Act widened the scope to include computer software. Copyright
(like unregistered design right) is automatic for products that fulfill the criteria and does
not have to be applied for. However, copyright protection remains for some design
products:

Typefaces. Designs of typefaces are protected by copyright as artistic works. It

does not infringe that copyright to use the typeface in the ordinary course of
typing, nor when making articles specifically designed or adapted for producing
material in that particular typeface once 25 years have passed from the end of the
year of the first marketing of such articles.

Books. The typographical layout of a book is protected for 25 years from first
marketing.
Graphic design. All original graphic designs are potentially protected by copyright
as artistic/literary works for the designers lifetime plus 70 years.
Industrially produced artistic works. Patterns that begin as an artistic work but are
applied to products that are industrially produced are protected for 25 years from
first marketing. This applies only to surface patterns, so are important for textile
designers.
Works of artistic craftsmanship. These require artistic quality and craftsmanship.
There must be fewer than 50 items made to the design. Protection is for the artists
life plus 70 years.

Useful tips

If you need help from a professional, ensure that they are members of the
Chartered Institute of Patent Agents or the Institute of Trade Mark Attorneys.
If you license your design to others, take legal advice over the form and wording
of the contract or agreement.
Mark your products as protected, and keep records of the design and (if
applicable) the registration process. This will strengthen any case should
registration be challenged or design rights infringed.
Consider taking out insurance against the cost of bringing legal action for
infringement of rights.

Market Analysis Summary

Builders merchants offer a convenient one-stop-shop, providing construction workers
with a wide variety of tools and materials. The majority of sales will centre on lowmargin, high volume materials such as bricks and cement, drainage pipes, and
plasterboard. Additional goods supplied may include higher value products like power
tools, timber and roofing materials, as well as smaller accessories, such as locks and
lighting.
A builders merchants should be able to provide customers with sound product advice and
quotations. All builders merchants will offer a delivery service; many will offer 'added
value' services such as key, glass and brick cutting, and a hire/repair department.
Products are often highly price-sensitive, and to be competitive a builders merchants
must reflect market prices successfully. Most customers will look for a builders
merchants who can offer them an interest free, unsecured credit account, generally on a
monthly basis. Some may prefer to approach the manufacturer directly, particularly for
larger orders. However, tight profit margins may encourage customers to make use of a
builders merchants, as this generally ties up less capital than buying in bulk from the
manufacturer. Customers may also want to buy in small amounts from the builders
merchants, as and when goods are needed.
The future and performance of the builders merchants market is inextricably linked with
the construction industry, the general state of the economy, and most importantly the local
market. Based on current economic conditions, the market looks likely to continue to
steadily increase.
The industry is becoming increasingly technical, with computerised systems available
which allow the builders merchants to operate tight internal controls over stock and credit
risk, and to offer a faster and more comprehensive customer service. Some of these
systems include computer-aided design and planning facilities, which customers can use
to plan work and prepare quantities on site.
There are fewer independent builders merchants due to the growth of out of town
builders superstores. However, the number of builders merchants is growing but longer
opening hours including Sunday opening and car parking facilities may give superstores
the edge.
The independent is still a valued service in terms of convenience, local customer
awareness and niche markets.
Hardware retailing as a trade is heavily subject to the housing market, the general state of
the economy and consumer confidence.
Home Improvement television programmes are also expected to continue in popularity.

The Internet plays a significant role in the building and home improvement market for
both supplier advertising and consumer purchasing, and its use is expected to increase
dramatically.
Demand will vary according to the time of year. Seasonal demand is a major factor garden equipment is very popular over the school and other holidays and building as a
whole increases over summer months.
In the past ten years, most local builders stores have closed due to the success of large
builders mega-stores drawing away local customers. The attraction of the larger stores
has always been price and a large inventory. Customers would rather drive 20 minutes
and make sure they will find what they want rather than drive five minutes and hope the
local store will have it at a low price. Yet these same builders mega-stores are sterile and
not customer-friendly. Customers can wander the aisles, aimlessly lost, looking for a twodollar item.
And when they do find the right section, they will most likely select the most popular
brand no matter how large the selection is. What these store offer in price and selection,
they lose in creating a confusing, frustrating maze for their customers.
John believes that a local builders store can provide a reasonable selection in the most
important product areas, be competitive in pricing, and offer the customer a shopping
environment that will assure repeat business.
Retailers in this trade may be supplied direct from manufacturers or through distributors,
wholesalers or cash and carry outlets. The smaller retailer will obtain the greatest volume
via the latter. The trade is diverse and the available sales area will clearly influence the
degree of specialisation and range of products for sale.
Home Interiors U.K.
The UK home interiors market comprises a wide range of products and services. These
include: specialist interior design; kitchen, bathroom and bedroom products and fitting;
furniture design and retail; painting and decorating; carpets and flooring; and curtains and
soft furnishings.
Market summary at a glance
The key factors affecting the home interiors sector can be summarised as follows:

Housing market - Instructions to estate agents for sales of houses have fallen
again and there is less availability of mortgages for buyers. This slowdown in the
housing market has had a direct effect on sales of home interior products.
However, parts of the property market have reported improved sales when
compared to last year, which could signal a recovery for the housing market and
could result in more people buying and selling houses. The National Association

of Estate Agents (NAEA) reported that its members had seen a 10% increase in
the number of properties coming onto the market.
Improving rather than moving - The housing market slowdown has led to an
increase in the 'improving rather than moving' trend, where homeowners opt to
improve their current home because they cannot sell it.
Popular home improvements - A survey of UK homeowners found that
redecorating is the most popular home improvement, followed by new
furnishings, new carpets and then a new bathroom. Two-thirds of respondents said
they would be redecorating their home and spending an average of 990.
Bathrooms and bedroom furniture resilient during downturn - Bathroom
manufacturers have reported that their sales have been largely unaffected by the
recession. Researchers have also found that bedroom furniture is one of the most
resilient sectors of the furniture market.
Decline predicted in kitchen market - Industry experts have forecast that the
market for kitchens will decline by around 7% this year but will see modest
growth of around 4% next year.
Furniture sales worst affected by downturn - Sales of furniture have dropped as a
result of the recession and in 2009 furniture sales were at their worst for nine
years. This has been attributed to the slowdown in the housing market and low
consumer confidence. Last year furniture sales returned to growth of 4%.
Rent-to-own furniture businesses report increased sales - Furniture retailers that
sell products through a rent-to-own scheme have seen increased sales as
consumers look for alternative methods of purchasing big-ticket items after being
unable to access credit.
Predicted rise of the 'Do It For Me' trend rather than DIY - Research into the DIY
sector has found a growing trend for homeowners to hire someone to carry out
DIY tasks, such as painting and decorating.

Key sources of sector information

Useful sector portals and websites
Design online is a UK directory of interior designers and related suppliers.
Website: www.design-online.co.uk
The House Directory is an online directory of products, suppliers, interior designers and
courses. It also provides a monthly e-newsletter.
Website: www.thehousedirectory.com
The Bathroom Design Guide provides information on designing or redesigning
bathrooms and provides a directory of bathroom suppliers.
Website: www.bathroom-design-guide.com
House to Home provides details of the latest interior design trends.
Website: www.housetohome.co.uk

DIY Week is an online source of news, features and reports in the DIY and home
improvement sector.
Website: www.diyweek.net
Magazines and publications specific to, or of interest to, the sector
'Kbzine'
This is an e-zine covering news from the kitchen and bathroom industry.
Website: www.thekbzine.com
'Essential Kitchen and Bathroom Business'
This magazine provides news on developments in design and across the kitchen and
bathroom manufacturing industries.
Website: www.ekbbusiness.co.uk/site/
'KBB Review'
This is a business-to-business magazine for those working in the kitchen, bathroom and
bedroom sectors. It provides information on new products, interviews with business
owners and news.
Website: www.kbbreview.com
'Kitchens and Bathrooms News'
This is a news source for people involved in the design, purchase and specification of
kitchens and bathrooms.
Website: www.hamerville.co.uk/MAG_KBN.htm
'Bathroom and Kitchen Update'
This is a monthly magazine that is aimed at retailers, fitters, interior designers and
property developers.
Website: www.bathroomandkitchenupdate.com
'Cabinet Maker'
This is a weekly publication looking at the interiors retail market. It provides news,
details of events and new products.
Website: www.cabinet-maker.co.uk
'Real Homes'
This is a monthly consumer magazine that features expert advice on interiors, decorating
trends and design ideas.
Website: www.realhomesmagazine.co.uk
'World of Interiors'
This is a monthly magazine that focuses on luxury interiors and publishes editorial
features showcasing interior design from around the world.
Website: www.worldofinteriors.co.uk

'Ideal Home'
This is a consumer magazine that features inspiration and ideas for decorating the home.
It also has a product finder for locating particular home interior items.
Website: www.idealhomemagazine.co.uk
'Elle Decoration'
This is a consumer magazine that features news on interior design trends and photographs
of homes and dcor.
Website: www.elledeco.co.uk
'Interiors Monthly'
This is a monthly trade magazine for the interiors retailing sector. It contains news,
features and information on suppliers.
Website: www.interiorsmonthly.co.uk
'Period Living'
This is a consumer magazine that looks at traditional styles of decoration and interiors for
the home.
Website: www.periodliving.co.uk
Trade associations and professional bodies
The Kitchen Bathroom Bedroom Specialists Association (KBSA) is a trade association
for suppliers in the bedroom, kitchen or bathroom industries. It provides training
seminars, advice and a register of specialist suppliers and installers.
Tel: (01623) 818808
Website: www.kbsa.co.uk
The Bathroom Manufacturers Association (BMA) is a membership association for
bathroom designers, manufactures and installers and provides the public with
comprehensive information and advice on bathroom buying.
Tel: (01782) 747123
Website: www.bathroom-association.org
The British Home Enhancement Trade Association (BHETA) represents manufacturers,
suppliers and distributors in the home enhancement market.
Tel: (01604) 622023
Website: www.bhhma.co.uk
The National Home Improvement Council (NHIC) represents businesses in the home
improvement sector and provides a code of practice for members, as well as news and
information on the market.
Tel: (020) 7448 3853
Website: www.nhic.org.uk

The Painting and Decorating Association (PDA) is a trade association for the painting
and decorating industry. It provides members with news, advice and discounted
insurance.
Tel: (024) 7635 3776
Website: www.paintingdecoratingassociation.co.uk
The British Interior Design Association (BIDA) represents interior designers and
provides details of events, news and has a directory of suppliers.
Tel: (020) 7349 0800
Website: www.bida.org
The British Interior Textiles Association (BITA) is the trade association for the UK
interiors textile industry. It publishes product, brand name and supplier guides on its
website and issues a quarterly state-of-trade survey.
Tel: (020) 7636 7788
Website: www.interiortextiles.com
The Association of Interior Specialists (AIS) is a trade association for manufacturers,
suppliers and installers of commercial premises refurbishments. It publishes a members'
directory on its website, which also includes details of designers throughout the UK.
Tel: (0121) 707 0077
Website: www.ais-interiors.org.uk
The Association of Master Upholsterers and Soft Furnishers (AMUSF) represents
professionals in the industry and provides a directory of upholsters and soft furnishers on
its website.
Tel: (029) 2077 8918
Website: www.upholsterers.co.uk
Events
Decorex is a trade show for interior designers and architects that features seminars and
various design exhibitors.
Website: www.decorex.com
100% Design is an architecture and design show that exhibits a range of home interior
products.
Website: www.100percentdesign.co.uk
The Annual Bathroom Conference is hosted by the Bathroom Manufacturers Association
and is generally held in October. Attendees include bathroom retailers, manufacturers,
installers and distributors.
Website: www.bathroom-association.org/conference/default.asp

The Kitchen and Bathroom Show is an event for consumers held in June and November.
Exhibitors include retailers and suppliers of bathroom furniture and accessories, and
kitchen cabinets and furniture.
Website: www.kitchenandbathroomshow.co.uk
The Homebuilding and Renovating Show is held twice a year and is open to anyone who
is building or renovating a house. It features seminars and workshops on specialised areas
of home improvement.
Website: www.homebuildingshow.co.uk
The London Furniture Show is an annual trade event for designers and retailers of
flooring, soft furnishings, decorative accessories, bedding and wallcoverings.
Website: www.londonfurnitureshow.com
The National Floor Show is an annual trade event. It is open to retailers, buyers and
contractors and provides visitors with the opportunity to network and meet suppliers.
Website: www.nationalfloorshow.co.uk
British Hardware Federation
The British Hardware Federation (BHF) represents independent hardware and DIY
retailers
The BHF is an umbrella organisation comprising an additional three special divisions that
represent retailers, stockists and dealers in the hardware sector. These are: the British
Agricultural and Garden Machinery Association (BAGMA); the Cookshop and
Housewares Association (CHA); and the Independent Builders' Builders merchants
Association (IBMS).
The BHF is open to independent retailers in the hardware and DIY markets. It works to
promote high standards in this sector.
Membership benefits include:

Fixed-rate loans and payment clearing services.

Use of the Direct Company's buying service and a copy of the Buyers' Guide.
Discounted credit card costs and business insurance.
Help with business rates, rental reviews and lease renewals.
Discounted stationery, and shop design and fitting services.
Access to the BHF's promotional publications including catalogues, companions
and the BHFinternet.
Copies of the BHF's 'Hardware Today' magazine and annual Members' Handbook.
Reduced subscription rates to the 'New Grey List' and 'Garden Machinery Price
Guide', which provide retail prices for building supplies, hand and power tools,
and garden, domestic and electrical products.

Factsheets on issues including fire safety, cash carrying and disposing of waste
from the BHF's Information Office.

Availability and prices: Full, affiliate and associate membership is available. Membership
is based on an annual subscription.
Further information
British Hardware Federation
225 Bristol Road
Edgbaston
Birmingham
B5 7UB
Tel: (0121) 446 6688
Fax: (0121) 446 5215
Website: www.bhfgroup.co.uk
E-mail: information@bhfgroup.co.uk
Independent Builders' Builders merchants Association
The Independent Builders' Builders merchants Association (IBMS) represents
independent builders merchants in the building supplies market
The IBMS, a division of the British Hardware Federation (BHF), works to support and
promote the interests of independent builders' builders merchants.
Members are entitled to a reduced subscription rate for the 'Architectural and Building
Ironmongery Catalogue', as well as the other benefits offered by the BHF, which include:

Fixed-rate loans and payment clearing services.

Use of the Direct Company's buying service and a copy of the Buyers' Guide.
Discounted credit card costs and business insurance.
Help with business rates, rental reviews and lease renewals.
Discounted stationery, and shop design and fitting services.
Access to the BHF's promotional publications, including catalogues, companions
and the BHFinternet.
Copies of the BHF's 'Hardware Today' magazine and annual Members' Handbook.
Reduced subscription rates to the 'New Grey List' and 'Garden Machinery Price
Guide', which provide retail prices for building supplies, hand and power tools,
and garden, domestic and electrical products.
Factsheets on issues including fire safety, cash carrying and disposing of waste
from the BHF's Information Office.

Availability and price: Full and affiliate membership is available by annual subscription.
Full membership is open to independent builders merchants in the building supplies
market, while affiliate membership is open to suppliers to those builders merchants.
Further information
Independent Builders' Builders merchants Association
225 Bristol Road
Edgbaston
Birmingham
B5 7UB
Tel: (0121) 446 6688
Fax: (0121) 446 5215
Website: www.bhfgroup.co.uk/ibmsf.htm
E-mail: marketing@bhfgroup.co.uk
Market Segmentation
The bulk of a builders merchants's sales are small lots, ex-yard, to jobbing builders,
engaged on repair, maintenance and improvement (RMI) work, e.g. extensions and loft
conversions. As the construction industry is dominated by small firms there may be a
range of account holders. Potential customers include builders, joiners, painters and
decorators, etc. Plumbers may use builders merchants although they can also obtain
supplies from specialist outlets. Some custom may also come from the domestic market
and individual DIY enthusiasts.
It may be difficult for a new business to attract larger customers as these will often have
an established relationship with an existing supplier. Customers may hold accounts with
several builders merchants and therefore it is important to offer as full a service as
possible to encourage their trade.
Capital Builders Merchant will focus on two significant customer groups:

Customers who need assistance in planning a project/repair: This customer

group can have the most frustrating experience in the builders mega-stores. If
they can't make the scheduled demos or trainings, they are left to sort thing out
with whoever they can flag down in the store help them. Capital Builders
Merchant will be set-up to provide resources and assistance as soon as they walk
into the store.
Local repair and home improvement professionals: Capital City supports a
good number of repair and home improvement professionals. Currently, the
builders mega-stores have their business but Capital Builders Merchant can win
an increasing share of this customer group through aggressive marketing. Time is
money and if Capital Builders Merchant can save them a trip outside the area,
they will buy there.

Approximately fifty per cent of industry turnover is accounted for by smaller firms.
Several large conglomerates and regional chains exist who possess significant buying and
negotiating power when dealing with both suppliers and customers. Some of the
independents have formed buying groups to counter this. Additional competition will
arise from independent builders merchants, selling tools and materials and the large DIY
stores which are currently 'loss leading' staple building materials in order to attract
tradesmen customers. Some builders merchants have tried to counteract this competition
by targeting DIY enthusiasts or professional 'odd-jobbers' in addition to building firms.
The development of websites by which customers can order building supplies may affect
trade. Online trade is slowly increasing, with a number of builders merchants selling
materials over the Internet. At present the number of customers using the sites remains
limited.

Strategy and Implementation Summary

Capital Builders Merchant will be heavily promoting the store. We will use the local
paper, The Gilmore Sun, to advertise.
In addition, we will have a drawing for five 1,000 home improvement gift certificates
that can be redeemed at selected home improvement professionals. We will have new
drawings each week for the first eight weeks of the store's operation. Capital Builders
Merchant will use the drawings to make connections with the local home improvement
professionals. It is our plan to recoup some of the gift certificate money in material
purchases that will be made by the home improvement professionals the winners select.
Promotional Methods for Retailers
Introduction
It is important to have a co-coordinated approach to the development of retail sales. A
variety of promotional methods need to be considered. Encouraging customers to come
into the shop is the first difficulty. Once in the shop they must then be encouraged to buy
things. It is important to provide an attractive environment for the display, storage and
sale of goods. The store must be in an appropriate location and offer the right
merchandise in the right way.
Strategic Approach
As with any other business, the way a shop is promoted needs to be co-coordinated
within an overall marketing strategy. The retail sector involves particular forms of
promotion. Shops frequently operate in an intensively competitive environment with
specific advantages and limitations. All retailers need to look at their particular
circumstances and decide which elements suit their market best. Some may be relevant.
Some may not be appropriate. A shop selling expensive technical items will require a
high level of customer service. A shop selling a high volume of cheap items may
concentrate more on providing accessible displays and carrying out short term
promotions. There should be an overall promotional strategy, each element of which is
budgeted for and evaluated separately.
Location
The location of the shop is vital. Even if the shop is excellent and sells good quality
items, if the right customers are not close by and would not be prepared to travel, then the
shop will not thrive. Too many similar shops in one area will cause a shop to struggle
unless it can offer something new.

There are many different types of location to choose from. These include modern
shopping precincts, main roads, traditional residential areas, new housing estates and
villages. Each location has advantages and disadvantages to be considered in the light of
the type of shop to be set up. The cost of city centre locations may be too high for many
small businesses although there will be a high flow of people. Some sites in town centres
and on main roads may lose passing trade if there is no parking close by, but may benefit
if near to bus stops. Villages have quite a fixed number of customers. Passing trade will
not be as great as in other locations. If the shop is on a main road through the village or in
a tourist area there should be more passing trade.
When considering an area, the number of vacant premises should be checked. The area
may be becoming run down with people moving away. It may deter potential customers if
the shop is in such an area. The shop itself may seem dirty and untidy. The size of the
catchment area is also important. The number of locals, those who come into the area to
work, and those who pass through should be checked. A survey could be done throughout
the day to check how many people pass the shop. The amount of trade can vary according
to the time (e.g. when school children are going to or leaving school, or when buses come
in). Some factors may distort survey results (e.g. school holidays, bad weather). The
success of a shop may depend on how many of these people are in the target market.
Some details about residents can be found from census data, and some commercial firms
collect and produce such data. Some also provide information on the type of housing in
an area.
Shop Frontage
Once the best location for the shop has been chosen, the shop frontage must be attractive
and encourage customers to enter. This also helps increase general awareness of the
shop's existence. Customers may decide to try the shop at a later date. A bright, attractive
fascia will help. Some suppliers provide signs for shops that stock their goods, mainly to
act as advertisements for them - if this is what is wanted, their brand advertising can be
used to promote the business. The shop name should be prominently displayed and
indicate the type of business. The right image for the shop type should be sought.
Illuminated signs are a possibility, but planning permission may be needed for these. The
local authority may not allow signs or trading areas to encroach on footpaths.
Window Displays
Window displays are a basic way of advertising to the public. Windows need to be
cleaned regularly. As well as attracting customers to the shop, they indicate what is on
sale in the store, seasonal items and special offers.
Windows are an extension of the selling area and should be used as such. Displays should
be changed regularly. Some goods become faded in the window and start to look shabby.
If using hand-written posters, they must be neat and clearly written. The window should
be brightly lit - there are various methods of lighting, e.g. using spotlights to highlight

certain items. The window should not be so full as to become confusing. Professionals
could be employed to do displays or sign-writing work.
Shop Layout
The first consideration is whether the store is to be self service or not. Many shops are
self service, but this does not suit all types. It is unlikely that a jeweler or any store selling
expensive items would want all their goods on free access as stock loss would be too
costly.
The store should be arranged logically so that a customer can see compatible products
and may purchase them as they walk around the store. Core products could be stocked
well inside so that customers have to walk through the whole shop, passing other
products as they do so - encouraging them to buy on impulse. The arrangement of
fixtures will depend on the products stocked. A food store would be arranged in a
completely different way to a clothes store as the fixtures and desired atmosphere are
different.
Suppliers of goods may help a smaller store with merchandising. This may provide some
good ideas, but these suppliers want to maximise their own sales and the advice may be
biased.
There will be 'hot spots' within the store where higher sales are achieved (e.g. by the till),
any goods on promotion or to be sold quickly should be placed there. Goods at eye level
sell faster than those above or below. Merchandise should not be too high or too
inaccessible if customers are to be encouraged to examine the goods before buying, or in
self service stores, as it will discourage sales.
Selling
The type of store will determine to some extent how the staff sells the products. In some
cases a high level of product knowledge is required to help the customer make an
informed decision. This gives customers more confidence about buying, especially
expensive items.
Staff can be rewarded for sales through commission on top of their normal basic salary.
This is often a good incentive - the more they sell the more they earn. It also works to the
business's advantage: although more is paid in wages, the extra income is generated by
more sales. Any commission should be paid quickly or it is no real incentive. Targets
must be achievable by the best staff or they could become demoralised and not try to
achieve targets. Commission systems can be used to track how staff is performing and
which are the most successful. If a manager needs staff to sell a lot, it helps if the
manager is good at supporting and motivating them. This may involve holding daily staff
meetings and offering other types of reward and recognition. Commission is not
appropriate to all retail outlets and can sometimes result in pushy staff who are too

preoccupied with sales to work effectively for the store as a whole. This can project a
negative customer service image reducing sales in the long term.
Sales staff should be helpful, enthusiastic and pleasant, and should encourage sales
without being too pushy to customers. Staff can be trained in sales skills. When recruiting
sales staff, it is essential to look for enthusiasm and appropriate experience for the type of
product.
Stock Development
Although there may be core lines which continually sell well, there are always
opportunities to extend or change the range. Some customer knowledge is required before
accurate predictions can be made if a product will sell well or not. Some products only
sell well while they are being advertised on television. Others such as children's products
can go out of fashion quickly. It is important to try new lines though or customers may go
elsewhere to find the latest products. Customers and staff can be asked for suggestions.
Stocking new products provides an opportunity to advertise and draw new people into the
shop.
Advertising
Advertising boosts sales but some types can be too expensive for the small business. The
type of business will dictate the best type of promotion to use. A specialist shop may
choose to advertise in national specialist magazines whereas this is unlikely to be cost
effective for the more general retailer. In this case it may be better to advertise in the local
newspapers or distribute leaflets to local residents. Yellow Pages or other such directories
should also be considered. The cheapest promotion is recommendation from satisfied
customers - all customers must be treated well.
Special Promotions
Handled properly, special promotions (e.g. three items for the price of two) encourage
customers into the shop. Individual shops can do their own promotions to attract
customers or to sell off excess items. National or regional promotions are set up by
manufacturers or wholesalers who often provide 'Point of Purchase' materials to
accompany the promotion. If it is thought that a promotion will be successful in the shop,
'Point of Purchase' material provided can be used. This should not cost anything and there
is the benefit of any advertising that the supplier does. Other types of special promotions
include money off vouchers, in store sampling - particularly of consumable goods,
competitions and free with pack promotions.
Useful Tips

An operation which is not viable cannot be promoted. Market research should be

carried out before buying a shop.

Looking at the way other stores market their goods but differentiating between
those selling similar goods and those with a different range is useful.
The promotional strategy should be planned as part of the general management
system for the shop.
It is essential to make the most of the store. It should be clean, tidy and all goods
easily accessible.
Shopping is partly a leisure activity. Many shops need to provide a pleasant
environment in order to compete.

Competitive Edge

Location: Capital Builders Merchant is located in Capital City. The traffic in the
plaza is very strong. The closest builders store to Capital City is a twenty-minute
drive.
Seasonal Products: Each season has it own unique demand on a builder. Capital
Builders Merchant will focus on this pattern and bring in local customers by
marketing these items at competitive prices.
Repair/Project Resource Area: The first section customers will find when they
enter the store is a repair/project resource area that they can use to plan repairs or
projects. There will be a repair/project resource person there to answer their
questions and direct them to the section of store where the needed products are.
In-Store Expertise: Store employees will be knowledgeable in home
repairs/projects. In addition, the repair/project resource area will be used to
conduct short trainings and demonstrations in home repair and home projects.

Marketing Strategy
Within today's competitive market it is important that builders merchants are marketed
effectively. Initial promotions should centre on making the local trade aware of the
business. A mail shot can be sent to potential customers and open days, competitions and
related events can be used to raise awareness, by gaining press coverage and by getting
people into the store. Advertising among existing builders merchants is usually done in
the local press and business listings and, if the funds are available, through local radio,
billboards and on the back of local buses.
With the current emphasis placed on quality and cost efficiency, customers will often ask
for advice about the equipment. Having knowledgeable staff will help to gain customer
loyalty. It is therefore vital to keep up to date with developments and to offer a
comprehensive service. Imaginative displays showing products in use can help
throughput of stock and manufacturers often supply point of purchase material. They
often promote their products in trade press and the shop could advertise itself as a stockist
of major brands. Support may be available if manufacturers' logos are included in
advertisements. Establishing a good reputation will be dependent on providing quality
products and speedy delivery, and employing knowledgeable staff.

Membership of a trade association may encourage trade. However, while these

associations can provide advice upon many aspects of the business, they concentrate on
assisting established firms with an established turnover.
The available budget and local trading conditions will help decide which promotional
route we will follow.
Builders merchants compete on a local basis; therefore advertising tends to concentrate
on the immediate area. It will be useful to have a listing in the regional Yellow Pages or
Thomson Local directory. We will also take out an advertisement in a local newspaper, or
one of the free papers, which will be distributed around the catchment area, as this is a
good way for people to become aware of the store.
Door to door leaflets will be produced and distributed. They will be selective, as can
mailshots. It may also be possible to place advertisements in the newsletters and
magazines of local clubs dealing with hobbies such as woodwork and model making,
which could help build up a customer base.
Developing a website will help increase customer awareness and, once set up, is usually a
relatively inexpensive form of advertising in comparison to other more traditional
methods. The Internet may also be useful for setting up online ordering.
It may be worth trying to get listed on official suppliers lists; alternatively, belonging to a
buying group will make joint advertising and promotions possible and cost effective.
An attractive window display with a good range of merchandise will help to attract
passing trade. Good customer service is likely to draw customers back. Employing staff
with specialist knowledge will help to achieve sales, as customers may be unsure of their
requirements and will need advice before deciding to make a purchase.
It may also be worth contacting manufacturers and suppliers who might help with the
cost of advertising their own products.
Sales Strategy
The sales strategy of Capital Builders Merchant is simple. First, create an environment
that will create confidence in the customer that he or she will get the needed material,
part, or instructions to get the job done right the first time. Second, make the store easy to
navigate, so customer can get in and out as quickly as possible. Third, know your
customer's seasonal builders needs and offer it at competitive prices.
Sales Forecast
Capital Builders Merchant will hit the ground running in {Date} 201*.

Management Summary
John Smith is an excellent staff supervisor and will do very well in managing the staff of
Capital Builders Merchant.
Managing a Shop
Managing a shop is a complex operation comprising many different activities. Many of
the techniques are used regardless of the type of shop concerned; others are specific to a
particular retail sector.
Buying Stock for a Shop
Stock Range
Within any one shop there will be fast and slow sellers. The expected turnover of stock
will depend on the type of goods being sold. A specialist retailer may stock one or two
particular types of product, but within that, have a wide range of colours, styles, sizes,
etc. A more general type of shop might stock limited choices within a broad range of
different types of goods. If perishable goods are sold, then buying the correct quantities is
vital to minimise wastage. Keeping accurate records of what has been bought and what
was left at the end of a certain time will help to minimise future wastage. Wastage eats
into profits. It is important that staff involved in ordering understand this. It may be
cheaper to buy in bulk, but the manager needs to consider discounts against the need for
more storage space, the volume which can be sold and the fact that the stock may have to
be paid for in advance. Profits are not assured until the goods have been sold. If a sales
rep writes out an order, a manager should check it to make sure that there is nothing on it
that does not sell well in their shop.
Where to Buy Stock
Managers can choose to buy their stock direct from the manufacturer, from a wholesaler
or from a cash and carry.

Manufacturer

Buying direct ensures that managers can choose from their full range of goods. However,
there may be a minimum drop (order/delivery size) or other obligations. Sales
representatives can both help and hinder; they should have excellent product knowledge
but may lack detailed knowledge of their customers and area. A rep will put the sales of
their firm first, so managers should talk to several reps about their ideas for product
ranges, display, etc, and then incorporate the best ideas into the shop. Reps can be a
source of point of purchase materials and may help with displays and promotions.

Wholesaler/Distributor

Wholesalers may also have representatives, but they will sell a larger range of goods from
several companies. Minimum drop values will be less of an issue. Wholesalers may have
depots in the local area, offering more convenient delivery times.

Cash and Carry

A cash and carry usually stocks a wide range of goods, not just food and drink. Although
smaller quantities can be bought, the goods are paid for immediately, whereas direct
suppliers and wholesalers usually offer credit facilities. Going to a cash and carry means
managers are away from the shop. The time, as well as the cost of transporting the goods
back to the shop, should therefore be taken into consideration.
Stock Control in a Shop
Managers should aim to have the right stock, in the right quantities, at the right time. Too
much stock ties up money unnecessarily. On the other hand, the shop should not run out
of stock. Stocktaking informs managers of current stock levels. These should be
compared with expected levels based on ordering and sales records. This will show if any
stock has gone missing. Substantial losses may indicate that stock is being stolen.
Stocktaking can be carried out by managers themselves or they may wish to hire someone
to do it for them. Stocktaking is easier when the shop is closed and will therefore mean
working extra hours at the weekend or in the evenings.
Managers should make staff aware of the costs of wastage and damage. The stock room
should be arranged in a logical way to have fast selling goods near to hand.
Retail Pricing
Deciding on what price to sell goods at is important to all retailers. Some suppliers help
by giving suggested or recommended retail prices for their goods. However, a manager's
policy on pricing is likely to take account of other factors such as competition, the need
for profit and what price the market will bear.
Shop Security
Security is a vital aspect of keeping a shop. Premises can be made secure by having a
burglar alarm and metal shutters fitted. It is advisable to insure the contents of the shop.
Theft of stock, in particular expensive items, can be prevented by fitting electronic tags or
by chaining the stock to display cabinets. Closed circuit television (CCTV) can be used to
check on both customers and staff. Further ways of protecting stock include lighting the
shop effectively and erecting security mirrors around the shop. The manager should be
familiar with the law regarding the apprehension of shoplifters. Delivery staff or sales
reps should not be allowed into the stockroom without permission. Each delivery should
be checked to ensure that everything is correct and undamaged. The delivery note should
be carefully checked as it may be difficult to obtain a refund later. Managers should not

allow staff to take cash or bags into the sales area. Precautions should be taken to prevent
theft from the till. Security must also be considered when banking the takings. A safe in
the shop may also be necessary.
Shop Accounts
The manager needs to know how the shop is performing, whether sales are up or down
and whether one line sells better than another. It is important that the till balance is
checked (usually daily or when operators change over) to show that the amount of money
in the till corresponds with the till register. Money, checks, etc, are counted and the float
deducted to give a total which is checked against the till records showing what receipts
should be in the till. It is useful to have a petty cash book so that any money taken out of
the till can be accounted for. Sales figures must be kept up to date so that managers can
measure performance, calculate sales per square foot, sales per assistant (if the till has
this facility), etc. Invoices need to be kept in a logical order so that the manager knows
whether or not they have been paid.
Employing Staff to Work in a Shop
Managers may need an assistant to carry out the day-to-day running of the shop while
they are on holiday, etc. Someone with experience of working in a shop will be
preferable. They may also need to employ a number of people part-time. Employees will
therefore need to learn their job quite quickly. It is important that staff know the standards
they are expected to follow, so that customers receive a consistent level of service. An
induction program could be put together for employees. Training on tills and other
equipment, customer care and complaints should also be given. Managers may consider
rewarding staff for sales through commission on top of their basic salary as an incentive.
Marketing a Shop
A shop is in a fixed position; customers must come to it, and must be persuaded to buy
once they are inside. This makes promotion extremely important. Managers need to be
able to market the shop effectively, both to existing and potential customers. The shop
needs to be in the right location to reach the target customer, and should not have too
many similar shops in the vicinity which would increase competition. The shop frontage
should be attractive and have the shop name and type of business prominently displayed.
Although some methods of advertising may be cost prohibitive to the small shop, targeted
mailshots, leaflets, displays and press advertising will all help to heighten awareness of
the goods. Personal recommendation from satisfied customers can often be the most
effective promotional tool. Displays around the shop and easily accessible stock will
encourage customers to return. Window displays should indicate seasonal items and
special offers and be changed regularly. Special promotions can be used to encourage
people to come into the shop, e.g. three items for the price of two, in store sampling and
competitions. New products offer managers opportunities to extend or change the range
as a means of retaining existing customers and attracting new people into the shop.

Useful Tips

All of the issues raised are important to the management of a shop. Managers
should ensure they are prepared for problems in all areas.
Managers should obtain general business training as well as specific product or
marketing knowledge.
It is important to constantly assess stock levels and their relation to profits.
Managers should also aim to keep up to date with the accounts.
Managers must ensure that they listen to their staff and customers.
It is important to stay informed about any new legislation which may affect the
business.

Personnel Plan
Store employees will be knowledgeable in building and home improvement projects. In
addition, the repair/project resource area will be used to conduct short trainings and
demonstrations in home repair and home projects.
Capital Builders Merchant will have the following staff members:

Manager.
Assistant Manager.
Office Manager/Accountant.
Checkers (full time and part time).
Two Customer Assistants.
Stockers (full time and part time).

Strategic Direction
SWOT Analysis
This is a summary of the business's most important strengths, weaknesses,
opportunities and threats.
Strengths of the Business
Excellent quality product
"Which means that" Adds to reputation.
Good management skills.
"Which means that" Well run business
Good ability to extract information.
"Which means that" Can control the business.Weaknesses of the Business
New Player.
"Which means that" Credibility problem may affect initial sales
Lack of systems
"Which means that" The company needs to develop systemised operational
& sales techniques or sacrifice profits
Opportunities in the Marketplace
Add-on products such as **
"Which means that" A potentially enormous market for {YOUR
COMPANY NAME} to tap into.
Growing market segments.
"Which means that" {YOUR COMPANY NAME} should target these
segments.
Threats in the Marketplace

Increasing supplier prices.

"Which means that" Resulting in reduced profitability.
Declining size of the ** segment.
"Which means that" Need to focus on growing segments to spread the
company's portfolio

The Actual Plan

Business Objectives
Corporate Objectives (Goals)
Short Term Corporate
To achieve a sales level of xxxxx
To achieve profit level of xx%
Long Term Corporate
To achieve sales in 201B of xxxxx
To achieve sales in 201C of xxxxx
To achieve sales in 201D of xxxxx
Marketing Objectives (Goals)
{your product}
#1 Segment:
#2 Segment:
#3 Segment:
Other:

To achieve sales to xxxxxx

To achieve sales to xxxxxx
To achieve sales to xxxxxx
To achieve sales to xxxxxx

New Products
To evaluate and launch new products or services which will turn over xxxxxx
in the first year.
Other Objectives (Goals)
To not exceed a marketing budget of xxxxxx
To not exceed a payroll budget of xxxxx
To not exceed a general overhead budget of xxxxxx
The major task objectives for each area of the organisation, together with
responsibilities and timings are detailed in the Roll-Out Plan.

Marketing Plan
MARKETING OBJECTIVES
Sales Objective

To achieve sales by XX% to XXX

Sales Objectives by Market Segment.

#1 Segment:
#2 Segment:
#3 Segment:
Other

To achieve sales to xxxxxx

To achieve sales to xxxxxx
To achieve sales to xxxxxx
To achieve sales to xxx

PROMOTIONAL STRATEGIES
Print Advertising
Develop a corporate brochure.
June 201A
Advertise in local publications
Jan 201A
Advertise monthly in magazines that are specifically targeted to the ** and **
segments.
Jan 201A
Advertise monthly in magazines that are aimed at the general industry.
Jan 201A

Lead Generation Program

Conduct monthly on-going lead generation program. Send out monthly direct
mail leaflets with response coupons. Qualify leads and make appointments by
using telemarketing staff.
Oct 201A
"Centres Of Influence" Program

Personally contact at least ten potential partners each week.

Produce a monthly newsletter that shows examples of (your products) and how
customers have benefited from using them.
Oct 201A
PR Program
PR release to be initiated each month to various trade journals and magazines.
Jul 201A
Sales Force
Employ telemarketing staff.
Sep 201A
Employ sales specialist for ** segment.
Mar 201A
Implement a new structural programme for the sales force, allocating sales
reps to accounts and segments rather than area.
Jan 201A
Organise training programme to be implemented.
Jan 201A
Lost Customers
Contact monthly all past customers that have not re-ordered to ask why not
and see whether we can win back their business.
Dec 201A
Follow up Enquiries
Contact all enquirers monthly and determine if they have purchased from a
competitor and, if so, why.
Dec 201A
Existing Customers
Follow up all new customers two weeks after they purchase to ensure they are
satisfied with the product.
Jul 201A

Send quarterly newsletter to existing customers to keep them informed of our

other products.
Jan 201A
Try and up-sell all enquiries for our standard range to our premium range.
Feb 201A
Sales Promotion
Develop an ongoing sales promotion to target existing customers.
Aug 201A

PRODUCT STRATEGIES
Supply
Maintain a maximum of one week to dispatch from date of order.
Jan 201B
Warranty
Extend the warranty from xxx years to xxx years.
Jan 201A
PRICING STRATEGIES
Price Level
Maintain price level in all segments at xx% higher than competitors to
reinforce the quality image.
Jul 201A
Discounts
Offer x% discount for payment with order.
Jul 201A
Manufacturer's Agents
Pay a xx% commission on retail price of all confirmed sales orders passed to
us by our manufacturer's representatives.
Jul 201A

DISTRIBUTION STRATEGIES
Channel
Distribute direct to the client where possible. Use manufacturer's agents in
outer regions.
Apr 201A

GENERAL MARKETING STRATEGIES

Competitor Profile
Keep updated competitor profile.
Jun 201A
Marketing information system
Document on every enquiry "How did you hear about us?"
Jul 201A
Document on every order "How did you hear about us?"
Jul 201A
Produce monthly sales reports by product, by market segment, by territory and
by sales representative.
Mar 201B

Financial Plan
FINANCIAL

Next Year's Objectives

Net Profit
Gross Profit

To achieve forecast net profit of xxxxx.

To increase the average gross margin for
all products from xx% to xx%.

Budget

To not exceed the following expense

budgets.

Marketing Budget
Payroll Budget
Management Overheads

xxxxxxx
xxxxxxx
xxxxxxx

FINANCIAL STRATEGIES
Cash Flow
Eliminate cash shortage in the traditional tight periods of December to January
Jun 201A
Collection Days
Reduce the average collection days from xx days to xx days.
Jun 201A
Payment Days
Maintain payment of bills, on average, to xx days.
Jun 201A
Expenses
Develop and implement new policies on approval and signatories on expenses.
Mar 201C
Leases
Pay off the existing lease on capital equipment, thus reducing the monthly
financial burden.
Jun 201A
Overdraft
Reduce the overdraft from xxxxxx to xxxxxxx
Jun 201A
Wages
Pay all wages on a monthly basis instead of weekly.
Jan 201A
New Equipment

Organise funding for the xxxxxxx expenditure on new equipment.

Jan 201A
Payback
Ensure a payback on new equipment through sales of one year.
Jun 201B
Inventory
Improve the number of stock turns to xxxxx a year.
Jun 201A
Rent
Negotiate new terms on the premises and reduce existing payments by xx%
Aug 201B
Bank Charges
Renegotiate with the bank and consolidate some outstanding loans with lower
interest rates.
Aug 201B

Organisational Plan
ORGANISATIONAL AND MANAGEMENT
Next Year's Objectives
Budget
Staff

To not exceed the payroll budget of xxxxxxx

To employ or re-deploy a total of xxxxx fulltime and part-time staff over the next year.

HUMAN RESOURCE STRATEGIES

Organisational
Draw organisational chart.
Aug 201A

Develop incentive scheme related to job requirements.

Aug 201A
Policies and procedures
Develop policies and procedures manual.
July 201A
Employ or re-deploy staff
Employ telemarketers.
Sep 201A
Employ one specialist ** salesperson.
Mar 201A
Employ one marketing assistant.
Feb 201A
Employ one accounts receivable person.
Jul 201A
Training
Carry out training needs analysis.
Jan 201A
Morale
Install suggestion box.
Jan 201A
Organise monthly meetings to follow up tasks
Jan 201A