distributor business plan sample pdf

Wholesale & Distributor Business Plans

Coffee distribution business plan.

The Coffee Warehouse is a new business providing full service distribution of coffee and supplies to coffee houses and espresso stands throughout the Spokane and Northern Idaho market.

Farm Machinery Manufacturer Business Plan

Kouros Brothers Ltd. is an established manufacturer and retailer of agricultural planting and harvesting machinery on the island of Cyprus.

Fire Rescue E-commerce Business Plan

FireRescue Depot is a start-up showroom and Internet e-commerce business supplying fire and emergency rescue departments with specialized, heavy-duty, hydraulic rescue tools.

Wholesale Bicycle Distributor Business Plan

Wheelie Deals is a wholesale distributor of bicycles and bicycle parts, focusing on closeouts, discontinued models, seconds, etc.

Before you write a business plan, do your homework. These sample business plans for wholesale and distribution businesses will give you the head start you need to get your own business plan done.

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Distribution Company Business Plan Template

Written by Dave Lavinsky

Distribution Company Business Plan

You’ve come to the right place to create your Distribution Company business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Distribution Companies.

Below is a template to help you create each section of your Distribution Company business plan.

Executive Summary

Business overview.

KitchenWare Distributors is a startup distribution company located in Long Beach, California. The company was founded by Nelson Fuller, a former senior executive in a kitchenware company based in Chicago, Illinois. Nelson made over ten million dollars in kitchenware sales during the past two years for his former company, and felt the time was now right to start his own company in California. Because Long Beach is a leading port for ships bringing goods into the U.S. from China and other Asian countries, Nelson believes the greatest kitchen product range and highest dollar value can be amassed via the Long Beach import area.

KitchenWare Distributors specializes in selling kitchen products, including tabletop, tableware, cookware, and cutlery, to independent retailers, retail chains, and e-commerce platforms. Nelson recruited his wife, Jamie Fuller, to join him in the new startup, as her former position was a marketing manager for a small kitchen appliance company. Her new role will be as the Executive Manager of tabletop and cookware products.

Product Offering

The following are the services that KitchenWare Distributors will provide:

• Large-volume sales to kitchen product companies, including brick-and-mortar and ecommerce
• 24/7 customer service representative support
• Competitive pricing
• Diverse product selection
• Free transport from Long Beach to customer location
• Package pricing based on company loyalty programs
• Tiered products based on customer’s target audience

Customer Focus

KitchenWare Distributors will target retail companies, retail chains, and kitchenware stores. KitchenWare Distributors will also target e-commerce platform companies that specialize in kitchen product sales. KitchenWare Distributors will target industrial restaurant and kitchen supply companies. KitchenWare Distributors will target state and federal government cooking and kitchen supply sites.

Success Factors

KitchenWare Distributors will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at KitchenWare Distributors.
• Customer service representatives with 24/7 service for clients.
• Free transport from Long Beach to customer distribution centers or retail stores.
• Unique logistical software program designed for kitchen product retailers.
• KitchenWare Distributors offers reasonable pricing with free transportation included; both excellent savings.

Financial Highlights

KitchenWare Distributors is seeking $200,000 in debt financing to launch its kitchen product line of goods. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for KitchenWare Distributors.

Company Overview

Who is kitchenware distributors.

KitchenWare Distributors is a newly established full-service distribution company based in Long Beach, California. KitchenWare Distributors is committed to becoming the most reliable, cost-effective, and efficient choice for retail chains, retailers and kitchenware supply stores in the U.S. KitchenWare Distributors will provide a comprehensive menu of customer support services for any client to utilize. Their full-service approach includes free transportation from the dock at Long Beach to the city of the client distribution center or retail store.

  KitchenWare Distributors will present and sell through a vast array of kitchen products, including tabletop, kitchenware, cookware, serveware, and cutlery. The team of professionals are highly qualified and experienced in distribution and negotiations. KitchenWare Distributors removes all headaches and issues of the process of buying and transporting inventory for retail stores by taking excellent care of the inventory items and stock and ensuring that all issues are taken care of expeditiously while delivering the best customer service.

KitchenWare Distributors History

KitchenWare Distributors is owned and operated by Nelson and Jamie Fuller, both former executives working within the kitchen products industry in a kitchenware company based in Chicago, Illinois. Nelson made over ten million dollars in kitchenware sales during the past two years for his former company, and felt the time was now right to start his own company in California. Because Long Beach is a leading port for ships bringing goods into the U.S. from China and other Asian countries, Nelson believes the greatest kitchen product range and highest dollar value can be amassed via the Long Beach import area.

Since incorporation, KitchenWare Distributors has achieved the following milestones:

• Registered KitchenWare Distributors, LLC to transact business in the state of California.
• Has a contract in place at one of the office buildings, where the marketing department and administrative group will set up their 10,000 square foot office space.
• Reached out to numerous former clients and contacts to include KitchenWare Distributors as a distribution vendor.
• Began recruiting a staff of fifteen customer service representatives and five office personnel to work at KitchenWare Distributors.

KitchenWare Distributors Services

The following will be the services KitchenWare Distributors will provide:

Industry Analysis

The kitchen products industry is expected to grow during the next five years to over $44 billion. The growth will be driven by the consumer interest in premium kitchen countertop appliances that perform with precision. The growth will also be driven by smart kitchen appliances (remote turn on/turn off capabilities). The growth will be driven by color palette changes in 2027-28. Technological advances will drive the U.S. market growth. The growth will also be driven by eco-friendly, and sustainable tableware products. Costs will likely be reduced as kitchenware categories within lifestyle choices are discounted. Costs will likely be reduced as consumers turn to e-commerce for tableware and cookware choices, which reduces shipping costs overall.

Customer Analysis

Demographic profile of target market.

KitchenWare Distributors will target retail chains, retail stores, kitchenware stores, and government contract customers within California and the U.S. population. .

Customer Segmentation

KitchenWare Distributors will primarily target the following customer profiles:

• Retail chains
• Retail stores, specifically kitchen product stores
• Ecommerce kitchen product companies
• State and government contractors for kitchen products

Competitive Analysis

Direct and indirect competitors.

KitchenWare Distributors will face competition from other companies with similar business profiles. A description of each competitor company is below.

Strategic Distribution Group

The Strategic Distribution Group is located in New Jersey, near Ports America, Inc. The company receives goods via ship transport initiated in Shenzhen, China and directed to retail chains and kitchen stores throughout the U.S. The company was started by a partnership between Hershel Barts and Mark Tokien, formerly kitchen product managers for a major kitchen appliance manufacturer.

The Strategic Distribution Group offers limited discounts on product assortment groups or packages; however, shipping from the port to the retail chain market is provided at no cost. The strength of the company lies in the experience of the partners and the sales history in this industry sector they represent.

Cooking & Eating, Inc.

Cooking & Eating, Inc., headquartered in Scottsdale, Arizona, is a large retail chain that offers a distribution service to clients and guests who want shipment and associated logistics packaged together by Cooking & Eating, Inc. The company was founded in 2014 by Eddy Walker, who found the distribution ties were weak in the Southwest portion of the U.S. and wanted to improve the strength of the industry while also owning a cooking video company that could capitalize on the location and new product introduction.

Currently, Cooking & Eating, Inc. is focused on cooking videos for a YouTube audience of 1.5 million viewers and video reels for TikTok which demonstrate cooking and eating in comedic fashion. The owner of the company, Eddy, enjoys appearing and leading the conversational topics on the show, as well as introducing his company once again to the final outcomes of this year.

Retread Distributors & More

Retread Distributors & More specializes in closeout lots, damaged inventory, returned products and “scratch & dent” appliance units. Their clients include major resellers, such as Overstock.com, and other secondary markets who purchase lots at greatly discounted prices and then hope to sell those lots at a miniscule profit. Retread Distributors & More is owned by Dottie Masters, a woman who has been a leader in the reselling industry for over forty years. The company is one of several owned by Dottie, and as such, it presents a “bargain basement” type of atmosphere, albeit one with excellent pricing and values that can be very profitable for retailers should they choose to sell such inventory items.

Competitive Advantage

KitchenWare Distributors will be able to offer the following advantages over their competition:

• KitchenWare Distributors offers reasonable pricing with free transportation included; both advantageous savings.

Marketing Plan

Brand & value proposition.

KitchenWare Distributors will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide comprehensive customer service support.
• Free shipping from Long Beach port to client retail location.
• Unbeatable 24/7 customer service for clients.
• Tiered discounts geared to assist all clients in savings
• Pricing packages that are advantageous for clients

Promotions Strategy

The promotions strategy for KitchenWare Distributors is as follows:

Word of Mouth/Referrals

KitchenWare Distributors has built up an extensive list of contacts over the years by providing exceptional service and expertise to the former clients of Jamie Miller. Former clients have already committed to follow both new co-owners to the KitchenWare Distributors company and refer the new company to their associates.

Professional Associations and Networking

Both Nelson and Jamie Miller are members of national trade associations and both will continue to network and offer services to other members. The company may also choose to sponsor activities during trade shows that will highlight the new company.

Website/SEO Marketing

KitchenWare Distributors will extensively utilize their website. The website will be well organized, informative, and list all the services that KitchenWare Distributors provides. The website will also direct interested buyers to several pages of product inventory, including pricing and available quantities of each. Customers can buy online using the “Buy” page on the website. The website will list the contact number of their customer service representative and introduce them both via the Chat Box on the website. KitchenWare Distributors’s website presence will focus on SEO marketing tactics so that anytime someone types in the Google or Bing search engine “kitchen products company” or “kitchen supplies near me”, KitchenWare Distributors will be listed at the top of the search results.

The pricing of KitchenWare Distributors will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for KitchenWare Distributors. Operation Functions:

• Nelson Miller will be the co-owner and president of the company. He will oversee all staff and manage client relations.
• Jamie Miller will be the Executive Manager of the tabletop and cookware divisions.
• Ken Stevens will be the Marketing Manager who will provide all marketing for KitchenWare Distributors.

Milestones:

KitchenWare Distributors will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the KitchenWare Distributors
• 6/1/202X – Finalize contracts for KitchenWare Distributors clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into KitchenWare Distributors office
• 7/1/202X – KitchenWare Distributors opens its office for business

Management Team

Financial plan, key revenue & costs.

The revenue drivers for KitchenWare Distributors are the fees they will charge to the clients for their products and services.

The cost drivers will be the overhead costs required in order to staff KitchenWare Distributors. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

KitchenWare Distributors is seeking $200,000 in debt financing to launch its distribution company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Client Purchases Per Month: 63
• Average Revenue per Month: $616,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Distribution Company Business Plan FAQs

What is a distribution company business plan.

A distribution company business plan is a plan to start and/or grow your distribution company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Distribution Company business plan using our Distribution Company Business Plan Template here .

What are the Main Types of Distribution Company Businesses? 

There are a number of different kinds of distribution company businesses , some examples include: Exclusive Distribution Business, Direct Distribution Business, Selective Distribution Business, and Intensive Distribution Business.

How Do You Get Funding for Your Distribution Company Business Plan?

Distribution Company businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Distribution Company Business?

Starting a distribution company business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Distribution Company Business Plan - The first step in starting a business is to create a detailed distribution company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your distribution company business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your distribution company business is in compliance with local laws.

3. Register Your Distribution Company Business - Once you have chosen a legal structure, the next step is to register your distribution company business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your distribution company business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Distribution Company Equipment & Supplies - In order to start your distribution company business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your distribution company business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Wholesale Business Plan Template

Written by Dave Lavinsky

Wholesale Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their wholesale companies.

If you’re unfamiliar with creating a wholesale business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a wholesale business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Wholesale Business Plan?

A business plan provides a snapshot of your wholesale business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Wholesale Business

If you’re looking to start a wholesale business or grow your existing wholesale company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your wholesale business to improve your chances of success. Your wholesale business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Wholesale Businesses

With regards to funding, the main sources of funding for a wholesale business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for wholesale companies.

Finish Your Business Plan Today!

How to write a business plan for a wholesale business.

If you want to start a wholesale business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your wholesale business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of wholesale business you are running and the status. For example, are you a startup, do you have a wholesale business that you would like to grow, or are you operating a chain of wholesale businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the wholesale industry.
• Discuss the type of wholesale business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of wholesale business you are operating and your wholesale business model.

For example, you might specialize in one of the following types of wholesale businesses:

• Full service retail wholesale: This type of wholesale business sells its products to a reseller. This type of wholesaler may work with one reseller exclusively, or may sell products to multiple resellers.
• Wholesale brokerage or agency: This type of wholesale business does not typically handle the goods itself, but rather operates as the middleman, negotiating the buying and selling of goods.
• Manufacturers’ wholesale: This type of wholesale business is usually owned by a particular manufacturer and used to distribute the manufacturer’s goods.
• Specialty wholesale: This type of wholesale business focuses on a niche or limited area of wholesale such as selling one specific product such as cars or jewelry.

In addition to explaining the type of wholesale business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of items sold, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the wholesale industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the wholesale industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your wholesale business plan:

• How big is the wholesale industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your wholesale business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your wholesale business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of wholesale business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other wholesale businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of wholesalers, sellers, and distributors. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of wholesale business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for customers to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a wholesale business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of wholesale company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you sell food, clothing, cars, or a variety of products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your wholesale company. Document where your company is situated and mention how the site will impact your success. For example, is your wholesale business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your wholesale marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your wholesale business, including answering calls, scheduling shipments, processing orders, billing customers, and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your wholesale business to a new city.  

Management Team

To demonstrate your wholesale business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing wholesale businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a wholesale business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your warehouse hold 700 cases of product at a time, and will you sell and restock your inventory every two months? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your wholesale business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a wholesale business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your wholesale location lease or a description of the technology used to perform inventory operations.  

Writing a business plan for your wholesale business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the wholesale industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful wholesale business.

Don’t you wish there was a faster, easier way to finish your Wholesale business plan?

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Other Helpful Business Plan Articles & Templates

Distribution Company Business Plan Template [Updated 2024]

Distribution Company Business Plan Template

If you want to start a distribution business or expand your current distribution business, you need a business plan.

The following Distribution Company business plan template gives you the key elements to include in a winning Distribution business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your Distribution Company business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Distribution Company Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Wholesale Business Plan: A Comprehensive Guide

When it comes to starting a business as a wholesale distributor, or scaling a business to include it, it’s essential that things be ready to start running as soon as operations begin, which is where a wholesale business plan comes into play. Wholesale plays an important role in the supply chain of a retail business. Starting operations without the right preparation can cause major problems to pop up almost immediately.

Most prospective business owners usually understand that a business plan is essential for starting a business. However, it’s often treated as a tool for acquiring funding for the business. The US Bureau of Labor Statistics indicates that 1 in 5 businesses doesn’t make it past the first year of operations. Another 10% fail after the second year. Some of the commonly cited reasons include a failure to properly assess the market, not enough financing, and even business plan problems. Here, we’re going to help you gain every chance of success with a comprehensive guide to your wholesale business plan.

What Does a Bank Look For When Giving a Business Loan?

Business plans are commonly used for acquiring funding when starting a business. Although there are alternative options, such as micro-lenders and peer-to-peer lending platforms, most wholesale business owners are going to look to banks for their initial loans. They are a little less flexible than alternative lenders, but they are often able to lend more than you might find elsewhere. Having a proper business plan , stating the goals, mission, and functional operation of the business is essential. But what else does a bank look for when giving a loan?

Banks aim to lend to business owners who have sensible and realistic goals for the funds they plan to borrow. As such, stating how much you want to borrow and how you intend to spend your finances is key. This makes it easier for the bank to assess the chances of seeing their funding repaid.

That isn’t the only factor that banks are going to take a close look at, however. Business owners should also take a look at their credit report and score , to ensure there are no false reports negatively affecting their chances of borrowing. Furthermore, if the business is already in operation, the bank is going to want a close look at any existing financial records. They will always look to check your cash flow statements, balance sheet, and income statements to see the existing financial stability of the business.

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Provide Clear Business Objectives and Goals

Like any plan, the business plan should set the road ahead for your business, highlighting the goals and objectives that can ensure you’re always on the right track for growth. It’s much easier to successfully build something when you know what it is that you’re trying to build. Your objectives and goals should be based on the vision you have of where you want your business to be, laying out specific steps to help you get to that point. Goals are the long-term indicators of your success, while objectives are the detailed steps in place to help you reach those goals.

Effectively, your goals tell you where you want to go, and your objectives will teach you how to get there. Both should be SMART (specific, measurable, attainable, realistic, and time-bound) to ensure that you can realistically reach them and to clearly define when they have been met. Goals and objectives can be set in all realms of business, including revenue, profitability, customer service, customer retention, and more.

Examples of some objectives and goals you might set for a wholesale business might include:

• Attracting a certain number of wholesale customers by a set point in time
• Increasing customer satisfaction survey scores to a certain level over the next two years
• Achieving first year or second-year sales of a certain amount
• Producing a net profit of a certain amount within three years of operation
• Developing an infrastructure for web-based sales and order management within a year

Your business plans are going to demand a much closer look at your market, what is financially necessary for the success of your wholesale business, and a mission statement that aligns with the type of business you intend to run. You want to create a road map for the company’s future that can ensure you’re making the right decisions and using your energy and funding in the most strategically viable way possible, so sitting down and seriously considering your objectives and goals is essential.

Focus on Long-Term Objectives and Goals

For an initial business plan, it’s easy to keep the scope of your objectives and goals relatively modest. Many will focus on what comes in the next year or two years after starting a business with the intention of giving themselves the healthiest beginning possible. However, your short-term goals and objectives should be supported by and consistent with a long-term strategy based on the kind of business that you want to run five, six, or seven years down the line.

To that end, you should make sure that you have a strong mission statement before you start laying out your goals and objectives. Your mission statement should answer the questions of what your company does, how it does it, and why it does it. From that statement, you can derive your long-term goals, as well as the objectives that help you meet them. If you can’t find long-term goals that fit your mission statement, then it’s time to rethink what your business is about and rewrite it accordingly.

While short-term goals and objectives tend to look more at the individual indicators of growth and success, the long-term plan should look at what you want the business to look like in five or more years. Think about what business model you want to be running, how much revenue you will have, what your supplier relationships will look like, what market you want to be established in, and more. Cover every area of the business that you have a specific vision for, then start laying out the SMART objectives that can help you reach that in the long-term.

Describe the Organizational Structure

A business plan does a lot more than dictate where you want to go, it also lays out the business structures and processes that will help you get there. The organizational structure section of the plan is going to look at the organization and management of the business, members of that structure and their duties, and where they belong within certain teams and chains of command. It’s effectively a summary of how a business is run, who does what, and who they answer to. The structure itself is going to focus on the hierarchy within the team, but you should also open with a description of who is in the management team and what their qualifications are, especially if you want to use your business plan to source funding.

Main divisions of wholesale businesses may include the following organizational departments:

• Warehouse operations that are responsible for maintaining the warehouse, purchasing and storing stock, as well as transportation, inventory control, and delivery
• Administrative division that’s in charge of the correspondence, of staffing, human resources, and organizing the finances of the business, ensuring administrative efficiency
• Sales division that oversees the process of lead building, qualification, and sales outreach in order to win new clients for the business
• Publicity and promotion division that is in charge of marketing and promoting the company’s solutions and products across all relevant channels

Needless to say, the organizational structure of a wholesale business can change drastically from business to business. 

Be Specific About Your Plans for Money That You Borrow

As mentioned, when it comes to seeking funding, your bank (or lender of any kind) is going to want to know how you plan on using their funding. It is often a key question in determining whether a bank will lend to you or not. As such, you should have a clear idea of how much money you need to borrow and where it’s going to be spent before you make the application.

As you write your business plan, you should be developing a key idea of where you plan to invest. Try to simplify the priorities of the funding. Rather than detailing a laundry list of what you want the funding for, try to allocate percentages of funding levels for different aspects of the business (inventory funding, hiring, and fleet purchasing/leasing) for instance. Have reference materials breaking down the costs incorporated in each that the bank or investors can take a closer look at, too.

As well as writing why you need the funding that you’re applying for when starting a business, you should also consider putting down plans for how you’re going to repay the lender you’re applying to. Including a strong repayment plan in your business plan gives them peace of mind that fulfilling your financial obligations to them is a serious consideration for you, which can increase your chances of funding success.

Show That You’ve Had Valuable Communication With Possible Partners

A part of a larger supply chain, wholesale distributors rely on a healthy ecosystem of partners to drive their own success. This can include the potential buyers they end up forming a relationship with but should also include their own suppliers and manufacturers providing them the goods that they sell. If you’re serious about starting a business in wholesale, you’re going to need to find these partners early. If you’re planning on applying for funding from your bank or investors, you’re going to want to find some before you’ve finished writing your business plan.

You don’t need to have formally made any agreements before your application and, indeed, you will have a tough time doing so before you’ve had the opportunity to establish your operations. However, showing that you’ve had meaningful conversations with some of your potential partners is a good indicator to lenders that you have an idea of how you’re going to find both suppliers and buyers when things are up and running.

Research will play a key role in finding retail clients and partners . Making a note of the potential partners in your market who aren’t yet served by someone providing what you do (which is easily done by looking at their inventory) is a start. Reaching out with pre-emptive questions about their potential interest in the products you plan on selling could help open an early line of communication. Building relationships and correspondence through networking and past industry experience can also help establish the potential partnerships that most lenders are going to keep an eye out for, as well.

Present Detailed Financial Data

Your financial data is important for more than showing potential lenders how you plan to use your funding and to repay any loans. It plays a key role in determining the financial viability of the business as a whole. It can help you determine where you need investment, identify key costs of running a business (which could be reduced in future), and gain a better understanding of your cash flow and aspects that could affect it, such as whether your business will have seasonal cycles. Simply put, a business plan without a financial plan isn’t very useful.

There are four key steps to preparing your financial data, as well as statements you should have to summarize them. They are as follows:

• Determining your business expenses, categorizing them into two subsections: your initial start-up expenses and your operating expenses when you’re up and running
• The income statement, determining the planned expenses, revenue and profit for each quarter, with any existing data included to back up your projections
• The cash flow projection of how much money is expected to flow in and out of the business, also showing how much capital investment is needed to meet expense needs.
• The balance sheet, showing the existing net worth of the business as it exists, including all assets, liabilities and the equity when the liabilities are subtracted from assets.

Naturally, the financial data for an already established business is going to be much more detailed than for one that is just starting up. However, regardless of what point your business is at, currently, this is an essential step for making applications with funding institutions as well as helping you understand the financial needs and liabilities of your business.

Prove That Your Plan is Backed by High-Quality Research

The more proven your business idea, the better it is for you. Not only do potential lenders look for an established idea that they can reasonably expect to pay off in time, but it’s much more effective to have a solid idea of your own business’s viability before you start investing too much time and effort in it. This is exactly what market research is all about: finding the evidence to support your business’s existence and purpose.

There are multiple steps to take when conducting market research for your business. The first is in customer profiling, thinking about who your customer base is, what demographics they fall under, and where you’re likely to reach them. The next is to carry out competitor analysis . Who else in the market offers what you do right now? What signs of growth and success they show and what differentiates your business from theirs enough to offer you a space in the market? With that information in mind, next, you should carry out customer surveys, asking them about what they’re looking for in the market, whether current providers offer what they’re seeking, and what they feel like is currently lacking amongst their choices. Business advisors, trade bodies, and other industry researchers should be able to provide more details on market size, industry benchmarking reports (to compare with your own plans and objectives), and location demographic details. All of this data should be included in your plan specifically to show evidence that there is room for your business in the market.

Consulting Services Offered Through R+L Global Logistics

At R+L Global Logistics, we have the experience of serving global supply chains in all kinds of specialized and general wholesale distribution fields, so we’re in a prime position to offer consulting to business owners getting into the market. We can provide the experience, insight, and data that can help support and transform your plans to offer you the best chance of success you could hope for. From determining your potential customers to helping you understand the best way to sell products within your market, we can lend the proven expertise to match your vision and efforts.

In addition to providing you with knowledge expertise in business development, we can fully manage your supply chain. Getting your products to and from where they need to go, can be one of the most costly and time-consuming aspects of running a wholesale business. Having reliable partners to manage this process can save time and money and improve business efficiency.

No matter what stage of life your business is at, we’re here to help you with your order management and everything in between. Contact us today and we’ll get you to your next steps. 

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Distribution Plan Template

What is a Distribution Plan?

A distribution plan outlines the processes and resources necessary to move a product from its point of origin to its consumers. This plan typically includes a detailed overview of the different channels and locations where a product will be stored, manufactured, and shipped. It also outlines the key performance indicators (KPIs) that will be used to measure the effectiveness of the plan. By creating a comprehensive distribution plan, businesses can optimize their supply chain operations and improve customer satisfaction.

What's included in this Distribution Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Distribution Plan template for?

This Distribution Plan template is designed to help supply chain and logistics teams plan and optimize the distribution of products or materials. It can be used by anyone responsible for designing and executing a distribution plan, including supply chain managers, logistics specialists, and warehouse personnel.

1. Define clear examples of your focus areas

A Focus Area is a broad area of the supply chain process that the team wants to improve. Examples of Focus Areas could include ‘Optimizing Distribution Network’, ‘Optimizing Inventory Management’, and ‘Enhancing Customer Satisfaction’. For each Focus Area, the team should identify and outline specific objectives, measurable targets, and related projects that need to be completed.

2. Think about the objectives that could fall under that focus area

An Objective is a goal that the team wants to accomplish for each Focus Area. Objectives should be specific and measurable, and should be achievable within a given time frame. Examples of some objectives for the focus area of Optimize Distribution Network could be: Reduce Operational Inefficiency , and Increase Delivery Reach .

3. Set measurable targets (KPIs) to tackle the objective

A Key Performance Indicator (KPI) is a metric that is used to measure the success of a project. KPIs should be quantifiable and measurable, and should be set with an initial value and a target value. For example, for the objective to ‘Reduce Operational Inefficiency’, a KPI could be to ‘Decrease order processing time from 16 minutes to 5 minutes’.

4. Implement related projects to achieve the KPIs

A Project (or Action) is the specific initiative that needs to be taken in order to achieve a KPI. Projects are the steps that need to be completed in order to achieve the desired KPI. For example, for the KPI to ‘Decrease order processing time from 16 minutes to 5 minutes’, a related project could be to ‘Automate manual processes’.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade’s Strategy Execution Platform is the perfect tool to help teams efficiently plan, track, and measure the success of their distribution plan. With Cascade, teams can easily monitor KPIs, track progress on projects, and quickly identify any areas that need improvement. By utilizing Cascade’s platform, teams can ensure that their strategies are implemented in a timely and efficient manner.

9+ SAMPLE Distribution Sales Plan in PDF

Distribution Sales Plan

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Sample Distribution Sales Management Plan

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Formal Distribution Sales Plan

Distribution Sales Improvement Plan

Simple Distribution Sales Management Plan

Distribution sales plan: what is it about       , what are the different types of distribution channels    , 1. executive summary, 2. products and services, 3. market analysis, 4. marketing and sales strategy, 5. action plans, 6. financial statements, share this post on your network, you may also like these articles.

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Top 10 Distribution Plan Templates with Samples and Examples

When we think of ordering something online, the first name that comes to our mind is "Amazon." The company has reached this position of unrivaled success due to its impeccable services and a well-structured distribution plan, seamlessly connecting every facet of its operational process.

Amazon's strategic distribution network spans warehouses well-located worldwide, ensuring swift order fulfillment. This well-thought-out logistics chain integrates with advanced technology, including robotics and artificial intelligence, streamlining inventory management and delivery processes.

By optimizing their supply channels, Amazon meets customer expectations for rapid deliveries and minimizes costs, enhancing  efficiency. This distribution plan not only enhances operational efficiency but also contributes significantly to Amazon's reputation for reliable and timely deliveries.

What is a distribution plan?

Have you  wondered how your favorite items make their way from the manufacturing facility to your front door? Or how companies choose which retail locations to put their goods on sale?

That's where a distribution plan comes in!

A distribution plan assists companies in ensuring that their goods reach their intended customers at the correct  time and location. Businesses risk missing out on significant sales if they don't have a strong distribution plan in place for getting their items before prospective buyers.

Without a distribution strategy, companies may find it challenging to supply customers with goods or services. This damages their brand and lowers their profitability. A distribution plan is essential for every organization that wishes to succeed, stay competitive, and satisfy client demand.

How to create a distribution plan?

To establish a distribution plan that benefits your organization:

• Recognize your target audience's demands.
• Determine an efficient and cost-effective method of transporting goods or services from the manufacturing hub to the customer.
• Select the best distribution channel for reaching clients, such as direct sales, internet sales, retail shops, wholesalers, and distributors.
• To gain insight into consumer preferences and purchase habits, perform market research.
• Make a distribution plan budget that covers  costs, including marketing, PR, logistics, and shipping.
• To evaluate the effectiveness of the distribution plan, provide performance measures such as market share, sales volume, and customer satisfaction.

SlideTeam provides you with a framework and structure to assist you in drafting a distribution plan. We have curated this set of content-ready Top 10 Distribution Plan Templates. These templates are 100% editable and customizable. It provides you with a structure that allows you to focus on the plan rather than the presentation’s design.

Let’s explore!

Template 1: Distribution Plan Strategy Manufacturer Wholesaler and Retailer Template

Anyone familiar with the  manufacturing industry can profit from this distribution plan strategy demonstrated in this PowerPoint Template. The slide features three distinct outline flow diagrams that illustrate  levels of marketing channels  The manufacturer, wholesaler, and retailer are displayed along three pathways, which ensures smooth flow of information. It enables you to provide an order of command for the manufactured product. Download today!

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Template 2: Distribution Management Plan PowerPoint Slide

This PowerPoint Slide, a complete deck in  20 slides, showcases a distribution plan. A lot of activity happens  between the creation of the final product and its delivery  to its final location.  Using this PPT Bundle, distribution managers of the manufacturing sector can  work on an effective and efficient plan. A distribution model, content distribution channels, a distribution plan template, a timeline, etc., are included in this bundle. It also showcases slides like our mission and vision for the organization, goals and objectives, information about the teams involved, etc. Download this bundle today!

Template 3: Sales and Distribution Plan PowerPoint Template

This PPT Template, a complete deck of 20 slides, showcases an effective sales and distribution plan. This bundle comes with a sales and distribution management action plan for operational efficiency to coordinate tasks and reduce delivery problems. It also showcases a strategy action plan schedule that assists an organization in meeting targets. In addition, a plan of sales and distribution for  industries, comparative analysis, etc, are also mentioned. Download today!

Template 4: Distribution PowerPoint Slide Bundle

Depending on the distribution requirements of a product, you may ensure that consumers can  obtain your goods and services, which will lead to a high customer retention rate. Businesses take into account the most profitable distribution approach while maintaining cost-effectiveness. This PowerPoint Slide, a complete deck in  22 slides, highlights a distribution plan. It showcases slides on types of channels with functions and benefits, considerations for selecting the right distribution channel, distribution management strategies, and more. You can develop the best distribution plan for your company by learning more about the advantages of  strategies. Download this template  now!

Template 5: Content Distribution PPT Template

The term "content distribution" is often heard in marketing groups without any clarification. Even excellent content has the danger of becoming lost , given the noise around content marketing. Content distribution is sharing content via channels to an online audience in  varied media forms. This PowerPoint Slide highlights basic details like the name of the content, registration page, blog post URL, etc. This slide includes social media platforms for content distribution: Facebook, Twitter, and LinkedIn. Download now!

Template 6: Content Distribution Matrix PPT Template

This PowerPoint Info graphic aims at helping marketers  review the effectiveness of  types of Paid, Owned, and Earned media. It assists in promoting or distributing their content in generating site visits, leads or sales compared to the level of investment in applying the media. Download now!

Template 7: Sales and Distribution Plan for Electronics Industry Template

This PowerPoint Slide displays the sales and distribution strategies  that the electronic industry  uses to increase their customer base and revenue. It also illustrates information about multiple products sold through  sales channels such as In-store, online, or both. The slide also depicts distribution channels, budget and the responsible authority. Download this PPT  to display information systematically.

Template 8: Sales and Distribution Plan for Food Industry Template

This PowerPoint Template showcases sales and distribution plans that food organizations  use to track their current status and plans for future.  It also illustrates  information about the products the industry deals in, what strategies it uses to distribute them, etc. All distribution channels through which the products will reach their final destination, as well as projected sales and budget, are also mentioned. Grab it today!

Template 9: Types of Distribution Channels with Core Functions and Benefits Template

This PowerPoint Slide illustrates  distribution channels, which are methods producers use to get their products to consumers. It also displays core functions and benefits that the producer will get using  distribution channels for their products. Direct channels, indirect channels, dual distribution channels, and reverse channels are  studied in this PowerPoint Slide. Download today and systematically display the necessary information.

Template 10: Major Types of Distribution Channels Intermediaries Template

A distribution channel is a network of people and businesses that work together to transport products from a producer to a consumer. Companies and product makers use channel intermediates to transport their products to customers without owning or otherwise being in-charge of a supply train. These middlemen handle logistics and ensure every customer receives their order on time. This PowerPoint Slide mentions the four  main types of channel intermediaries. These include agents, wholesalers, distributors, and retailers with their respective icons and descriptions for easier comprehension. Download Now!

SEE DISTRIBUTION AS BUSINESS BACKBONE

You require a distribution plan to be able to get your products or services to your customers. You may increase your business sales and stay competitive by making  optimum use of your resources and regularly modifying your strategy. It is essential to invest  sufficient time in creating a strong plan that fulfills your company's goals.

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FREE 12+ Distribution Plan Samples in PDF | MS Word

In 2017, after a day of bad critics, Pepsi removed its  marketing campaign . In the ad campaign, popular model Kendall Jenner joined the rally and handed a police officer a bottled soda, attempting to cool down the tension between the protesters and the police. Despite the good intention of  Pepsi , which is to send a message of peace, unity, and understanding, people didn’t take it lightly. According to them, the company underplayed the essence of the protest, which is racism and police violence. As a business owner, you should plan the advertisement, among other parts of the product distribution appropriately and strategically, to ensure that your effort, time, money, and other resources don’t go to waste.

Distribution Plan Samples

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Also known as a marketing plan, a distribution plan is a component of  strategic planning  of a business that consists of the details of how the producers or service providers deliver the goods and services to its customers. This plan may involve market delegates, such as distributors, agents, retailers, and wholesalers.

Depending on the nature of your business and its affecting factors, you can use any of the following distribution channels.

This type of distribution consists of various market intermediaries since it intends to distribute the products to everyone. If your company sells products such as fast-moving consumer goods (FMCG), most likely, this is the best distribution channel that you can use for your business plan.

Unlike mass distribution, selective distribution involves only a few market intermediaries. For example, you are producing a type of coffee beans, which can be quite expensive compared to other variations. You can select specific distributors such as coffee shops for your product distribution instead. Another example is selling a content product that has a more specified target market. You will want to use  content marketing  to distribute your product.

The last but not the least distribution channel that you can use is exclusive distribution. In this distribution, you may involve a single intermediary to distribute your products. For example, you closed a  partnership agreement  with a coffee shop that has multiple branches across the country. In the deal, it says that the coffee shop should include only the products that you produce on the  coffee menu .

For you to know more about the distribution plan, we included the following templates and examples, which you can download in PDF an MS Word format.

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Creating a distribution plan for your new products can be a messy job. That is why we included the following steps, which you can use as a reference in creating a distribution plan along with your  marketing strategy  smoothly.

Before anything else, you should do some research to know your market. Most companies start the process by conducting  market research . This type of study will allow you to understand the preferences of your customers in terms of distributors, customer service, etc.

After the  target market analysis , the next thing that you should do is to identify the potential intermediaries that can help you deliver your products to the consumers. Intermediaries may include retailers, wholesalers, and agents. Keep it in mind that there are two types of intermediaries that you can include in your list, which are the direct and indirect sellers. If the market analysis that you conducted indicates that the best way to deliver your product is to sell them to your customers directly, you will use direct selling as your intermediaries. Otherwise, you will use indirect selling, which may involve multiple intermediaries.

Once you have completed the list, you can start researching each of the potential intermediaries. Start by browsing through the internet to know their potentials. You may also invite them over a cup of coffee to talk about a possible  distribution agreement . The main goal here is to get to know about the potential intermediaries and the potential partnership that you can develop.

Assuming that you know enough about your potential customers and partner intermediaries, choose the distribution channel that will fit the result of the research that you have conducted. To maximize your profit, you can use multiple channels in your  distribution channel strategy .

To gain more profit, many companies get involved with important causes as part of their  marketing plan . That could be a great move, considering that people appreciate accomplice. However, as a business leader, you should also think of the possible result of your company’s action. Use the information that you have gathered from this article and strategically plan the distribution of your products.

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Sample FMCG Distributor Business Plan Template PDF

Do you need help starting a FMCG products distributor company? If YES, here is a sample FMCG Business Plan.

As the name suggests, fast moving consumer goods are those goods which are non-durable and will quickly sell. This is a great distributorship business opportunity to be considered .

By reading this article, you may be interested in becoming an FMCG distributor.

If yes, this FMCG distributor business plan sample will help you achieve your desire. Lots of entrepreneurs have been faced with the problem of writing their plans.

FMCG BUSINESS IDEAS AND OPPORTUNITIES

There are so many FMCG businesses one can go into that is very certain to make one a future millionaire. On the other side, these lucrative FMCG business opportunities can take up to five years before it produces such result.

There are some people who just go into a certain FMCG business ideas because they want to and love to trade but after some few months, they are looking for other FMCG distribution business and dealerships to venture into because it seems their business is slow and the income too.

It is very important to take a feasibility study of those FMCG business opportunities before one should go into them.

This is because, some FMCG wholesale trading business may seems profitable from the outside but after you have venture into it, you will see that those people selling those goods are actually either selling on credit or at a low profit margin so they can get rid of the stock or force a sale.

FMCG DISTRIBUTION BUSINESS PLAN SAMPLE

Starting a fmcg business is not just about buying goods at low price and selling at a higher price. All FMCG wholesale business does that to make profit. But if you really want to start a FMCG company business that is fast in terms of selling the goods at of your store and make a profit quickly, then you need to start thinking of starting a fast moving consumer goods business.

Fast moving consumer goods are daily consumable products. This goods are always ask of. If you really want to start a business that should keep you busy and selling, then you need to think of FMCG products that human can’t stay away for a week.

Opening a boutique is a good FMCG business model please don’t get me wrong. Read to the end before you conclude.

The reason I said a bad side is this. A boutique is a place or store where people go to buy clothes, shoes, belts, caps, perfumes and designer’s accessories. Now, how many people do go for shopping every week? Do you? When last did you go for shopping? Was it the same boutique?

Personally, I go for shopping once in a month. Also, let me ask you, do you buy vegetables, tomatoes, pepper, onions once in a month? Am sure you buy it every week. If not twice in a week because you must eat vegetable soup! But the clothes you bought last year you’re still wearing them till today.

Now, I am not saying you should not go and start a boutique business if you already have the mind to do so.  The fact is, there is profit in the business but it’s slow and not predictable. Here is how; Some day you may just open your store, you won’t sell anything. The next day, you might sell a few items. The next day again, your FMCG business model will excel as if you use magic on it. The next day again, only one face cap will be bought and so on like that.

But for fast moving consumable goods, you’re guaranteed of sale on a daily basis. Prayer or no prayer. Someone must eat biscuit, buy mineral, buy oil, Kerosene, Bread, Pepper or even pure water. And that same person can spend up to N5000 in a month on your store. That’s from one person. And you know that in one day, up to 10 different people will come to buy FMCG product from your store.

So, in this post, I want to really discuss on how you can take a proper feasibility study of your environment and start a fast moving consumer goods business in Hyderabad, Bangalore India, Nigeria and other countries of the world.

Here are examples of fast moving consumer goods business ideas;

1. Rice    2. Kitchen Spices   3. Beverages  4. Vegetables  5. Oil  6. Drinks  7. Detergent   8. Beans   9.  Stationery   10. Bread etc.

Here is a sample business plan for starting a FMCG retail company.

• Take Feasibility Study

Irrespective of where you reside, there is always an array of perfect business opportunities in FMCG sector for every location. In a cool evening, take a walk around your street or better still two streets and look for a good location that will address the issue of selling fast moving goods to the resident in that street  and passers by either on foot or car.

This will assist in developing a comprehensive FMCG business plan to use.

Now even if there are stores selling consumable items, I mean a long list of FMCG companies near you, don’t panic or think of competition. Your job now is to brand yourself in terms of attending to customers in a polite and quick manner. Personally, I wait unattended to when I go buy something or when the seller is always finding it difficult to give me my balance (change).

Have a very attractive store with light, maybe TV (if you choose to sell drinks). FMCG product business is not about competition, it’s about domination. Do not think competition, think domination. In your store, you can sell every items I listed above.

You may personally choose to focus on selling only drinks both alcohol and non-alcoholic with pepper soup and bush meat. You might also choose to sell food items only. There are also fast moving consumer goods. This is the best business for individual investors and agencies who don’t have time having long prayer point list.

Choose which fast consumer goods you prefer and go with it. I know of a lady who focus on selling soft drinks in crates. With this, she has bought a personal car and a truck for carrying the crate of drinks to her customers location.

You too can do it, you have just learnt how to start FCMG distribution business!

FMCG DISTRIBUTOR BUSINESS PLAN EXAMPLE

This is written to help out with that. We have stripped this sample plan of all complexities to enable you understand at a glance what each section looks like and to apply same strategy. What you need to put together a great plan is by understanding the business side of things. Your survey or feasibility study will enable you do that.

• Executive Summary

Sundry Goods is a fast moving consumer goods distributorship business in Louisville, Kentucky. We are major distributors to a number of major brands producing a variety of fast moving consumer good.

Some of our products include toiletries, candy, dry goods such as coffee, tea and sugar. Others include beverages, water, baked goods, consumer electronics (memory cards and sticks), office supplies, clothing and cleaning products.

These goods are highly patronized and demanded by consumers. We offer a unique service by making these available to consumers, while creating an effective distribution channel for these companies. As major distributors, we have a great incentive in the form of competitive pricing which allows for profitability.

• Our Products

We only distribute finished consumer goods and provide these at wholesale prices to retail businesses who mostly sell to end users. Some of our products include razors and blades, dry goods (tea, sugar, coffee, and beans), consumer electronics in the form of memory cards and sticks, beverages, bottled water, and candy.

Others include baked products, office supplies (pens paper, printing ink), clothing, cleaning products and toiletries.

These products are manufactured by top brands and made available to us at discounted rates.

• Vision Statement

Our vision is to become a major fast consumer moving goods distributor in Kentucky within 2 years of our operations.

However, this is not our ultimate aim as we are determined to break into the top 20 major distributorships in America within a decade of our operations.

• Mission Statement

We will only work with major and reputable brands in distributing quality products to our target market. To achieve this, we have considered quality and affordability as our major target areas. By so doing, we will be building a trusted distributorship brand that will be toast of major retail businesses that depend on our supply chain.

Financing for our FMCG distributorship business will be sourced from bank loans. These would be banks the proprietor Evelyn Hunt does business with. The sum of $700,000.00 is required.

The application for this loan is already in progress. This loan will attract an interest rate of 2% monthly. The loan is repayable in 15 years.

80% of this sum will be spent in renting warehouses within Louisville, payment for our first consignment of products, and purchase of delivery vans. The 20% remaining will be used as running costs for the period of 3 months.

• SWOT Analysis

We have done a SWOT analysis of our business operations. This enables us measure our chances as well as health.

The findings have been eye-opening and will help us adapt to realities. These findings are shown below;

Our strength is found in our ability to easily enter into an agreement with some of the best brands. These agreements give us an excellent profit margin that makes our operations increasingly profitable. Having committed a decade of her life managing 2 of the most formidable consumer products manufacturing industries, this network gives us an immense advantage.

Penetrating the market is a herculean task. This is because there are several other FMCG distributorship businesses.

These have a strong hold on the market. However, this weakness will only be short-lived because we intend to leverage on our relationship with product suppliers. While doing that, we will also increase the intensity of our marketing campaigns to penetrate the market.

• Opportunities

The opportunities are great for us. We have entered into talks with smaller retail businesses. These businesses sell to end consumers and would form our vast network of clients. We will also provide competitive pricing to enable them do business with us.

Threats abound in the business ecosystem. We have identified our threat and it is in the form an economic meltdown. This adversely affects all manufacturing due to high production costs, which in turn puts us out of business.

• Sales Projection

Our profitability depends on attracting high sales. Our FMCG distributorship business has sought to find out the extent of future patronage for our products through a sales projection. This has shown a great potential for us as demand is likely to improve as shown below;

• First Financial Year $380,000.00
• Second Financial Year $700,000.00
• Third Financial Year $1,500,000.00
• Competitive Advantage

Our competitive advantage is hinged on the networks we have with some of the reputable FMCG manufacturing companies. We are going to take advantage of this relationship in fostering a meaningful partnership that enhances our business growth.

• Sales and Marketing Strategy

Our sales strategy we have come up with is to enter into a productive relationship with smaller retail businesses. The more they are, the better. These are symbiotic relationships where we benefit from each other. Our FMCG will be supplied to these retailers at attractive rates who will then sell to end users.

This FMCG distributor business plan sample has attempted to summarize sections a good plan should have. It uses an imaginary distributorship business for the purpose of guiding the reader on what to he/she is expected to focus on.

This will only be possible when you have some background knowledge of how things work. A survey or feasibility study of the market will supply you with this information.

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Alcohol Distribution Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Wholesale & Retail

Alcohol distribution is no doubt one of the alcohol related businesses that can be started with fewer challenges most especially if you have the needed licenses and permits.

An alcohol distribution business involves buying different types of alcoholic drinks in wholesale from different wine, beer, liquor and spirit production companies and then distributing them to retailers, bars and night clubs , pubs and hotels.

With this type of business, you can choose to own a store/warehouse if you have the financial capacity or you can choose to operate without a store. The bottom line is that you must own your own distribution truck/van, you should know how to source for different brands of alcoholic drinks and how to get them delivered to your customers.

The truth is that starting an alcohol distribution business is a profitable business, it is very easy to start and it is not so capital intensive especially if you get the goods on trust from the alcoholic drink production companies. Getting the right products and brands that people want to buy, good networking and stock keeping records are the secrets of running the business.

So, if you have decided to start an alcohol distribution business, then you should ensure that you carry out thorough feasibility studies and also market survey.

Business plan is yet another very important business document that you should not take for granted when launching your own business. Below is a sample alcohol distribution business plan template that can help you write your own with little or no hassles.

Steps to Write an Alcohol Distribution Business Plan

1. industry overview.

In the United States of America, the wine and liquor store business is a regulated business which is why The Twenty-first Amendment of the United States Constitution gives states the power to regulate the sale and consumption of wine and other alcoholic beverages.

It is important to note that State regulations vary widely. Most states in the United States of America have laws that clearly define which alcoholic beverages must be sold in specialty wine and liquor stores and which may be sold in other venues et al.

The Wine, Liquor, and Beer industry is indeed a very large industry and pretty much thriving in all the parts of the world. Statistics has it that in the United States of America alone, there are about 41,590 licensed liquor stores responsible for employing about 171,766 employees and the industry rakes in a whooping sum of $50 billion annually.

The industry is projected to grow at the rate of 2.1 percent annual growth between 2011 and 2016. It is important to state that no establishment can boast of having a dominant share of the available market in this industry. Activities in the Wine, Liquor, and Beer Stores industry is on the increase in the last 5 years (i.e. from 2010 to 2015), even though the revenue generation have not shown remarkable growth within the stated period.

Owing to the obvious increase in consumer confidence, more consumers have purchased high-margin products such as craft beer , boosting industry profitability. 

Additionally, the legislation on the liquor, beer and wine market in many states in the U.S has allowed more entrepreneurs to open their own liquor stores. Revenue in the Wine Liquor, and Beer Store industry is expected to grow over the next 5 years as stores generate greater sales especially of high-margin products.

The Wine, Liquor, and Beer Store industry is known to be heavily concentrated in the most densely populated regions and cities, mainly in the Mid-Atlantic, which comprises 24.2 percent of total liquor stores. Statistics has it that within the region, New York accounts for 8.5 percent of total liquor stores and trails only California which has 11.6 percent with the largest percentage of industry liquor stores.

So also, the Southeast and Great Lakes regions are heavily concentrated with industry liquor stores , and account for 17.9 percent and 15.4 percent of total liquor stores, respectively. 

Comparatively large liquor stores, in terms of employment and revenue, tend to be located in the Mid-Atlantic region. Nevertheless, the industry is small business oriented, with 68.0 percent of liquor stores employing four or even fewer full-time employees per time.

Please note that the barriers to entry for the alcohol distribution business are moderate, with the most significant barrier being the ability to secure permits and raise capital. Capital investments are needed to purchase distribution trucks and to rent / lease warehouse facilities.

While the amount of capital needed to enter the industry depends on the scale of operations an entrant is pursuing, even small – scale facilities require significant capital. Other barriers include securing supply contracts with upstream alcoholic drink manufacturers.

In a nutshell, alcohol distribution business is indeed a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale without a store/warehouse or you can choose to start on a large scale with a standard store/warehouse, dozens of distribution trucks/vans and a strong online presence.

2. Executive Summary

Jordan Brent® Alcohol Distribution Company, Inc. is an American registered and licensed distribution company that will be involved in the distribution of different types and brands of alcoholic drinks to retailers, bars and night clubs, pubs and hotels et al.

Our warehouse cum administrative office will be located in the heart of Las Vegas – Nevada. We have been able to lease a warehouse facility that is big enough to fit into the kind of alcohol distribution company that we intend launching and the facility is centrally located in the heart of town with easy delivery network.

Jordan Brent® Alcohol Distribution Company, Inc. will distribute a wide range of alcoholic drinks at affordable prices from different brands.

We are aware that there are several large and small alcohol distribution companies all around Las Vegas – Nevada, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.

We have robust distribution network; strong online presence and our distributors are armed with the various payments options available in the United States. Beyond the distribution of alcoholic drinks from leading brands in the United States, our customer care is going to be second to none in the whole of Las Vegas – Nevada and our deliveries will be timely and highly reliable.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products. Jordan Brent® Alcohol Distribution Company, Inc. will ensure that all our customers are given first class treatment whenever they visit or order alcoholic drinks from us.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of brands that they want us to be involved in distributing and also when making some business decisions that directly affect them.

Jordan Brent® Alcohol Distribution Company, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. Jordan Brent® Alcohol Distribution Company, Inc. is a family business that is owned by Jordan Brent and his immediate family members.

Jordan Brent has a B.Sc. in Business Administration, with over 18 years’ hands on experience in the retailing and distribution industry, working for some of the leading brands in the United States. Although the business is launching out by focusing on Las Vegas – Nevada, but there is a plan to expand our distribution network all across the state of Nevada and later in major cities in the United States.

3. Our Products and Services Offering

Jordan Brent® Alcohol Distribution Company, Inc. is in the distribution industry and we will ensure to be involved in the distribution of a wide range of alcoholic drinks from top manufacturing brands in the United States and other countries of the world.

We are in the alcoholic drinks distribution industry to make profits and we will ensure that we do all that is permitted by the law in the United States to achieve our business aim and objectives.

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the alcoholic drinks distribution business in the whole of Las Vegas – Nevada.
• Our mission is to establish an alcoholic drinks distribution business that will distribute a wide range of alcoholic drinks from top production companies at affordable prices to retailers, bars and night clubs, pubs and hotels et al in Las Vegas and other cities in Nevada where we intend marketing our services and products.

Our Business Structure

Jordan Brent® Alcohol Distribution Company, Inc. do not intend to start an alcoholic drinks distribution business like the usual mom and pop business around the street corner; our intention is to build a standard and one stop distribution business in Las Vegas – Nevada.

We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business. We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Jordan Brent® Alcohol Distribution Company, Inc.;

• Chief Executive Officer (Owner)
• Warehouse Manager
• Human Resources and Amin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive
• Drivers/Distributors

5. Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Warehouse Manager:

• Responsible for organizing the safe and efficient receipt, storage and dispatch of warehoused goods (alcoholic drinks)
• Responsible for liaising with customers, suppliers and transport companies
• In charge of planning, coordinating and monitoring the receipt, order assembly and dispatch of goods (alcoholic drinks)
• Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
• In charge of coordinating the use of automated and computerized systems where necessary
• Responsible for keeping stock control systems up to date and making sure inventories are accurate;
• Responsible for producing regular reports and statistics on a daily, weekly and monthly basis
• In charge of overseeing the planned maintenance of vehicles, machinery and equipment.
• Ensures that proper records of goods are kept and warehouse does not run out of products
• Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
• Control alcoholic drinks distribution and supply inventory
• Supervise the workforce in the warehouse floor.
• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of alcoholic drinks for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize and reach out to new partners and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Manage the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manage the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses , development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Distribution Truck Drivers

• Assist in loading and unloading alcoholic drinks meant for distribution
• Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assist the transport and logistics manager in planning their route according to a distribution schedule.
• Local-delivery drivers may be required to sell products to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collect and verify delivery instructions
• Report defects, accidents or violations

6. SWOT Analysis

Our intention of starting out in Las Vegas is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then start our alcoholic drinks distribution all around the state of Nevada and subsequently throughout major cities in the United States.

We are quite aware that there are several alcoholic drinks distribution companies all over Las Vegas and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Jordan Brent® Alcohol Distribution Company, Inc. employed the services of an expert HR and Business Analyst with bias in retailing and distribution to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Jordan Brent® Alcohol Distribution Company, Inc.;

Our location, the business model we will be operating on (robust distribution network), varieties of payment options, wide range of products from top brands and our excellent customer service culture will definitely count as a strong strength for Jordan Brent® Alcohol Distribution Company, Inc. So, also our management team members are people who have what it takes to grow a business from startup to profitability with a record time.

A major weakness that may count against us is the fact that we are a new alcoholic drinks distribution business and we don’t have the financial capacity to compete with leaders in the industry.

• Opportunities:

The fact that we are going to be operating our business in one of the busiest neighborhoods in Las Vegas – Nevada provides us with unlimited opportunities to distribute our wines, liquors, and beers to a large number of businesses. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they do business with us. We are well positioned to take on the opportunities that will come our way.

Top on the list of some of the threats that will confront our business is state regulations for alcoholic related products. Bad press may also pose a threat to the business as well.

7. MARKET ANALYSIS

• Market Trends

In the United States of America, most of the states have strict control on wine and liquor stores hence it is not easy to secure license to open one. In California and in few states in the U.S, individuals can actually open their own wine and liquor store or distribution business and it is the practice for them to sell an assorted alcoholic drinks and not only wines and liquors.

If you keep tabs with alcoholic drinks dealers and retailing businesses generally, you would have noticed that it is now a common phenomenon for retail outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their store to meet their needs; in essence, the use of technology helps retailers to maximize supply chain efficiencies.

No doubt data collected from customers goes a long way in helping retail store outlets serve them better. Alcoholic drinks dealers are also known to follow the rules and regulations regulating the industry; regulations like not selling alcoholic drinks to any person who is under-aged.

Lastly, it is now a common phenomenon for distribution companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs; in essence, the use of technology helps businesses like alcoholic drinks distribution to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help serve them better.

8. Our Target Market

The alcoholic drinks industry has a wide range of customers; a good number of people consume alcoholic drinks for different purposes. In view of that, we have positioned our alcoholic drinks distribution company to service businesses in Las Vegas – Nevada and every other location we will cover.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail (distribute) a wide range of alcoholic drinks from different production companies to the following businesses;

• Retailers of alcoholic drinks
• Bars and Nightclubs

Our Competitive Advantage

A close study of the alcoholic drinks distribution industry reveals that the market is gradually becoming competitive in recent time. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the growing competition and we are prepared to compete favorably with other leading alcoholic drink distributors in Las Vegas – Nevada.

One thing is certain; we will ensure that we have a wide range of products available in our warehouse at all times. One of our business goals is to make Jordan Brent® Alcohol Distribution Company, Inc. a one stop alcoholic drinks distribution company. Our excellent customer service culture, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jordan Brent® Alcohol Distribution Company, Inc. is in business to retail (distribute) a wide range of alcoholic drinks to retailers, bars and night clubs, pubs and hotels et al in Las Vegas – Nevada. We are in the industry to 10. Sales Forecast

One thing is certain when it comes to alcoholic drinks distribution business, if your business is centrally positioned coupled with effective and reliable vans / trucks and distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Las Vegas – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the alcoholic drinks distribution industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Las Vegas – Nevada.

Below are the sales projections for Jordan Brent® Alcohol Distribution Company, Inc., it is based on the location of our business, the list of alcoholic drinks and other factors as it relates to alcoholic drinks distribution start ups in the United States;

• First Fiscal Year (FY1): $240,000
• Second Fiscal Year (FY2) – $450,000
• Third Fiscal Year (FY3) – $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products, home delivery and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

Before choosing a location for Jordan Brent® Alcohol Distribution Company, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for retailers, bars and night clubs, pubs and hotels et al in Las Vegas – Nevada. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the retailing and distribution industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Las Vegas – Nevada.

In summary, Jordan Brent® Alcohol Distribution Company, Inc. will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters alongside our brochure to alcoholic drinks retailers, bars and night clubs, pubs and hotels et al and key stake holders in Las Vegas – Nevada
• Ensure that we have a wide range of alcoholic drinks from different brand within and outside the United States at all times.
• Make use of attractive hand bills to create awareness business
• Position our signage/flexi banners at strategic places around Las Vegas – Nevada
• Create a loyalty plan that will enable us reward our regular customers

11. Publicity and Advertising Strategy

Despite the fact that our alcoholic drinks distribution business is well structured and located, we will still go ahead to intensify publicity for the business. Jordan Brent® Alcohol Distribution Company, Inc. has a long-term plan of opening distribution channels all around the state of Nevada and subsequently major cities in the US which is why we will deliberately build our brand to be well accepted in Las Vegas before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Jordan Brent® Alcohol Distribution Company, Inc.;

• Place adverts on community based newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Las Vegas – Nevada
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact alcoholic drinks retailers, bars and night clubs, pubs and hotels et al by calling them up and informing them of Jordan Brent® Alcohol Distribution Company, Inc. and the products we sell / distribute
• Advertise our delivery services business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and distribution vans / trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to distribution companies and retailers, it is normal for retailers to purchase products they can get at cheaper price. We will work towards ensuring that all our goods are distributed at highly competitive prices compared to what is obtainable in the United States of America.

We also have plans in place to discount our goods once in a while and also to reward our loyal customers from time to time.

Payment Options

The payment policy adopted by Jordan Brent® Alcohol Distribution Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Jordan Brent® Alcohol Distribution Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via POS machines
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for alcoholic drinks purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

14. Startup Expenditure (Budget)

These are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Jordan Brent® Alcohol Distribution Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet warehouse facility in the total amount of $105,600.
• The total cost for warehouse facility remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills and maintenance of trucks / vans et al) – $180,000
• The cost for Start-up inventory (stocking with a wide range of alcoholic drinks) – $100,000
• Storage hardware (bins, rack, shelves, crates) – $3,720
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost for the purchase of distribution vans / trucks – $120,000
• The cost of launching a website – $600
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our alcoholic drinks distribution business in Las Vegas – Nevada. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds/Startup Capital 

Jordan Brent® Alcohol Distribution Company, Inc. is a private business that is solely owned and financed by Jordan Brent and his immediate family members. They do not intend to welcome any external business partners which is why they decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

17. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Jordan Brent® Alcohol Distribution Company, Inc. is to ensure that we continue to deliver quality and fast selling products and services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required training that will help them deliver excellent services at all times.

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Jordan Brent® Alcohol Distribution Company, Inc. adopted the use of payment machine and accounting software to run the business.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services once the need arises.

Our key sustainability and expansion strategy as a business is to ensure that we only hire competent and technically sound employees, create a conducive working environment and employee benefits for all our staff. We know that if we implement our business strategies, we will grow our alcoholic drinks distribution business beyond Las Vegas – Nevada to other states in the U.S in record time.

Check List/Milestone

• ” target=”_blank” rel=”noreferrer noopener”>Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of warehouse facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging and Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Purchase of distribution vans: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Compilation of our list of products that will be distribute: Completed
• Establishing business relationship with alcoholic drinks production companies and retailers, bars and night clubs, pubs and hotels et al: In Progress

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