Wholesale Bicycle Distributor Business Plan

I. executive summary.

[Your Company Name] is a wholesale distributor specializing in providing high-quality bicycles and accessories to retailers across the nation. Founded in 2050, our company has quickly established itself as a trusted partner in the bicycle industry. Our mission is to offer a diverse range of products, exceptional customer service, and competitive pricing to meet the needs of our clients. With a focus on sustainability and innovation, we aim to drive growth and profitability while contributing positively to the cycling community.

II. Company Description

[Your Company Name]

Founder: [Your Name]

Email: [Your Company Email]

Phone: [Your Company Number]

Address: [Your Company Address]

Website: [Your Company Website]

Social Media: [Your Company Social Media]

[Your Company Name] is headquartered in [City, State] , strategically located to facilitate efficient distribution operations. We partner with leading bicycle manufacturers to offer a diverse portfolio of products, including mountain bikes, road bikes, hybrid bikes, and accessories such as helmets, locks, and apparel. Our team is comprised of experienced professionals dedicated to delivering unparalleled service and value to our clients.

III. Market Analysis

The bicycle industry continues to experience steady growth driven by increasing awareness of health and environmental benefits, growing urbanization, and rising demand for alternative transportation solutions. According to Market Research Insights, the global bicycle market is projected to reach $75 billion by 2055.

IV. Marketing and Sales Strategy

Target Market: Our primary target market includes independent bicycle retailers, sporting goods stores, and online retailers catering to cycling enthusiasts.

Marketing Channels: We utilize a multi-channel approach, including online marketing, trade shows, and direct sales representatives to reach our target audience.

Promotional Strategies: Offering competitive pricing, volume discounts, and seasonal promotions to incentivize sales and foster long-term relationships with our clients.

V. Operations Plan

V.i. distribution channels.

[Your Company Name] operates a streamlined distribution network to efficiently deliver products to our clients nationwide. We leverage partnerships with third-party logistics providers and utilize advanced inventory management systems to ensure timely order fulfillment.

V.II. Inventory Management

Maintaining optimal inventory levels is critical to our success. We employ sophisticated forecasting techniques and utilize just-in-time inventory practices to minimize carrying costs while meeting customer demand.

VI. Financial Projections

Financial projections table.

2050

$5,000,000

$3,500,000

$1,500,000

2051

$5,500,000

$3,800,000

$1,700,000

2052

$6,000,000

$4,000,000

$2,000,000

2053

$6,500,000

$4,200,000

$2,300,000

2054

$7,000,000

$4,500,000

$2,500,000

VII. SWOT Analysis

Swot analysis table.

- Strong supplier relationships

- Reliance on key suppliers

- Extensive product portfolio

- Limited brand recognition

- Efficient distribution network

- Vulnerability to economic downturns

- Growing demand for electric bicycles

- Intense competition

- Expansion into emerging markets

- Regulatory changes affecting import/export

VIII. Conclusion

In conclusion, [Your Company Name] is poised for continued growth and success in the wholesale bicycle distribution market. With a focus on quality, innovation, and customer satisfaction, we are confident in our ability to achieve our strategic objectives and deliver value to our stakeholders.

Plan Templates @ Template.net

  • Resources for Entrepreneurs > Opening a Business > Opening a Business

How to Start a Bicycle Wholesale & Manufacturers Business

resources for entrepreneurs

Opening a Business

Launching a bicycle wholesale and manufacturers business is your ticket to owning a good, stable business as long as you separate yourself from the competition. Here are tips and advice on the startup process.

Thinking about opening a bicycle wholesale and manufacturers business? We tell you what you need to know to get started.

How to Draft a Bicycle Wholesale & Manufacturers Company Business Plan

Your new bicycle wholesale and manufacturers business needs a business plan. But if you've never drafted a business plan before, the process can be intimidating.

But here's the good news: With a few tips, any entrepreneur can create a successful plan for their business. If you can get past the mystique, you'll see that a business plan just describes where your bicycle wholesale and manufacturers business is headed and how you intend to get there.

Once your business plan is in place, you can use it for a variety of funding and planning functions.

Before you begin, we recommend reviewing a few sample business plans .

Don't Ignore the Competition

Long before you open a bicycle wholesale and manufacturers business within your community, it's essential to determine how strong the competition is. Use the link below to get a list of local competitors in your area. Simply enter your city, state and zip code to get a list of bicycle wholesale and manufacturers businesses in your town.

  • Find Competing Bicycle Wholesale & Manufacturers Businesses

How tough is the competition in the market you are considering? If the competition is too tough, you may need to think about starting the business in a different area or even start a completely different business instead.

Studying the Market

Once you've finished assessing the competion, it's essential that you speak with somebody who is already in the business. If you think your local competitors will give you advice, you're being overoptimistic. It'd be crazy for them to teach you the business.

But, a person who owns a bicycle wholesale and manufacturers business in a different city can be a great learning resource for you, given that you don't compete with them in their area. In that case, the business owner may be more than happy to discuss the industry with you. If you are persistent, you can find a business mentor who is willing to help you out.

Do you know how to find a bicycle wholesale and manufacturers business entrepreneur who is willing to talk to you but doesn't live nearby?

Simple. Let your fingers do the walking by using the link below.

  • Search for Bicycle Wholesale & Manufacturers Business Owners

Purchasing a Bicycle Wholesale & Manufacturers Business

Many experts advise against starting a bicycle wholesale and manufacturers business if you can buy an established operation. Yet the process of buying a bicycle wholesale and manufacturers business introduces a new set of challenges.

As you would expect, there are a number of steps in buying a business . For most prospective business buyers, the first step is to contact a business broker .

A good business broker serves a number of useful purposes. From locating available companies to helping seal the deal, your broker will have the experience and skills to help you successfully navigate the purchase process.

Consider Buying a Franchise

If you want to minimize your chances of failing, you may want to look into whether it makes sense to franchise instead of doing everything yourself.

Before you get too far along in your plan to open a bicycle wholesale and manufacturers business, you would be wise to check out whether franchising might make your life much easier.

The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.

  • Franchises for Sale

Entrepreneur Interviews

These interviews should be of interest to you.

  • Interview with Joan Denizot, Founder of Super Sized Cycles and Zize Bikes

More Advice for Startups

These additional resources regarding starting a business may be of interest to you.

Recurring Revenue Business Models

Free Business Plan Templates

What Business Should I Start?

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Wholesale Business Plan Template

Written by Dave Lavinsky

Wholesale Business Plan

You’ve come to the right place to create your Wholesale 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 Wholesale businesses.

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

Executive Summary

Business overview.

National Wholesale is a startup wholesale distribution company located in Long Beach, California. The company is founded by Tony Campona who has experience in leading a wholesale company Now, with the expertise of knowledge and business acumen, Tony has determined he can confidently start and effectively grow a successful wholesale company. He believes his experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of wholesale distribution practices will provide everything needed for long-term growth and profitability.

National Wholesale will provide a comprehensive array of services for a wide variety of clients. National Wholesale will be the one-stop shop for all grocery stores, providing services and products to each client while supporting the strategic goals of the company. National Wholesale will be the ultimate choice in California for clients, offering wholesale distribution services, while being the best-priced wholesale business in the state.

Product Offering

The following are the products and services that National Wholesale will provide:

  • Customized streamlined operations to leverage time for the client
  • Communication lines that tie advantageous client relationships together
  • Inventory refreshed on an hourly basis/7 days per week. This offers faster service for grocery store distribution through the system
  • Storage of food and grocery items up to one-week without charge with complimentary service until client can receive products
  • Day to day management with custom software package to promote the JIT system
  • Logistics and inventory management services

Customer Focus

National Wholesale will target all grocery stores with yearly revenue of 1M+. In addition, National Wholesale will target drug stores and drug store chains. They will also target government entities, such as military forces and those that need rush delivery. They will target large corporations that require kitchen, dining room, and/or restroom supplies. They will target universities and colleges with cafeterias that serve daily meals.

Management Team

Howard and Stacy Steinberg are the co-owners of the National Wholesale business located in Long Beach, California. Howard Steinberg was the former vice president of Oregon Wholesale, where his role was to garner new business with grocery store chains and build inventory. His relationships with grocery store executives were built on mutual trust and his clients were entirely satisfied with his distribution efforts on their behalf. He now believes he is ready to start National Wholesale in a larger operation, using the skill and capabilities he’s honed over the years with his prior employer. Stacy Steinberg is an experienced executive who will take on the role of strategic inventory manager and David Dickson, a former associate at the Oregon food wholesaler, will also join the new company as the Vice President of Sales and Marketing.

Howard Steinberg is a graduate of Oregon State University, where he obtained an accounting degree. He has been the vice president of a statewide distribution company for over ten years. His expertise and skills now lead him to believe he is ready, along with his wife, to tackle this new business effort and become profitable with long-term growth prospects.

Stacy Steinberg, Howard’s wife, is an equal co-owner in the National Wholesale business and will work in the role of strategic inventory manager within the business. Stacy’s background includes over ten years as an inventory manager for a national warehouse distributor, where her clients believed that she was the best team member and able to handle whatever difficulties the role faced. Stacy graduated from University of California, Santa Barbara with a degree in Strategic Communications. She will lead the new company with employee onboarding and client relationship training.

David Dickson is a former associate of Howard Steinberg’s in a food wholesale company located in Oregon. He is known for his quick wit and adroit handling of customer relationship issues and finding solutions in every circumstance that benefit the welfare of the company. He graduated from the College of the Evergreens with a degree in Marketing and will hold the title of Vice President of Sales and Marketing in the startup company.

Success Factors

National Wholesale will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly-qualified team of National Wholesale
  • Comprehensive menu of logistics services and an accurate and complete inventory control software system that guarantees accuracy.
  • On-time/Every-time custom software that determines shipment deliveries
  • Customer storage and warehousing with complimentary one week service
  • High-quality food products that are guaranteed to be fresh and shelf-ready
  • National Wholesale offers the best pricing in the city. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

National Wholesale is seeking $200,000 in debt financing to launch National Wholesale. 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 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 National Wholesale.

National Wholesale Pro Forma Projections

Company Overview

Who is national wholesale.

National Wholesale is a newly established, full-service grocery wholesale distributor in Long Beach, California. National Wholesale will be the most reliable, cost-effective, and efficient choice for grocery stores in California. National Wholesale will provide a comprehensive menu of products and services for any client to utilize. Their full-service approach includes a comprehensive suite of custom software, designed to speed and simplify every logistical process and delivery.

  Howard Steinberg will be able to manage National Wholesale with his team of professionals to assist his efforts. The managers are highly qualified and experienced in distribution and logistics, in addition to inventory control. National Wholesale removes all headaches and issues of the food distribution industry and ensures all issues are taken care of expeditiously while delivering the best customer service.

National Wholesale History

National Wholesale is owned by Howard Steinberg and Stacy Steinberg. Howard was a former executive in a food distribution company and Stacy was an inventory manager for a national wholesale company. Howard has established relationships with grocery store executives that have been built on mutual trust and the satisfaction of his clients. Stacy is known to be an excellent team member and strategic in her workplace choices. Howard and Stacy believe they have the business knowledge and acumen to start their own company at this time.

Since incorporation, National Wholesale has achieved the following milestones:

  • Registered National Wholesale, LLC to transact business in the state of California.
  • Has a contract in place for a 10,000 square foot office at one of the distribution centers
  • Reached out to numerous contacts to include National Wholesale as a distributor
  • Began recruiting a staff of three and four office personnel to work at National Wholesale.

National Wholesale Services

The following will be the products and services National Wholesale will provide:

Industry Analysis

The wholesale distribution industry is expected to grow over the next five years to over $48 billion.

This growth will be driven by new technology offering digital tools, such as real-time data analytics for inventory, which will speed the process of distribution exponentially. The growth of the industry will also grow by the use of e-commerce platforms that will be technologically enhanced to hold pertinent information in much larger amounts, with greater flexibility. The growth will also be driven by an increase in the population of California, which will drive greater use of the grocery stores within the state.

Costs will likely be reduced as digital platforms, software, and technology-not-yet-invented performs minor, necessary operations to streamline the distribution process and shave off swatches of distribution time. This increases profitability for manufacturers and for wholesale businesses.

Customer Analysis

Demographic profile of target market.

TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%

Customer Segmentation

National Wholesale will primarily target the following customer profiles:

  • Grocery store retail chains and independent grocery stores
  • Drug store retail chains and independent drug stores
  • Government entities, such as military entities
  • Company suppliers, such as those who sell kitchen and bathroom supplies
  • Universities and colleges that serve daily meals on campus

Competitive Analysis

Direct and indirect competitors.

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

US Trade Connections

Owned by Thomas Short, US Trade Connections was started in 2015 and is a wholesale distribution company for one drug store retail chain. Thomas, a former sales director at a national wholesale company, has built the wholesale company around the largest drugstore chain in the U.S., providing door-to-door service with an on-time delivery record that is 95% accurate.

Thomas Short is the president of US Trade Connections and has determined that supplying one major manufacturer is preferable to supplying many drug stores. His experience to date has been that profitability is difficult to acquire with every distribution of goods because the client understands that there is virtually no competition for the transportation, logistics, or services of US Trade Connections.

Evergreen Wholesale

Evergreen Wholesale was started in 2020 by Lucille Trenton to act as a wholesale jeweler for retailers who wanted a supply of inventory for online sales. Evergreen Wholesale is fully online and manages deliveries of products to clients or direct delivery to the digital platform warehouse used by customers. Lucille Trenton was formerly a manager of a mid-sized jewelry company who determined that the digital sales of jewelry would continue to move online. At that point, she chose to start her own wholesale business to garner the profit from the movement of jewelry to retail destinations.

Hardware @ Home

Hardware @ Home is a wholesale distribution company located in Reno, Nevada. The focus of the company is found in providing goods and services for national hardware company chain stores throughout the U.S. The owner of Hardware @ Home is Greg Lawson, a former employee of a franchise hardware store who saw the opportunity in 2019 and believed he had the business capability and skills to start his own wholesale company.

Hardware @ Home serves chain hardware stores throughout the U.S., offering warehousing of very large equipment, as well as small items, in addition to providing logistics with on-time deliveries and inventory management systems that are customized to meet the specific needs of hardware stores.

Competitive Advantage

National Wholesale will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

National Wholesale will offer the unique value proposition to its clientele:

  • Highly-qualified team of skilled employees who are able to provide a comprehensive array of on-time product deliveries and logistical inventory that are driven by the newest technology and software

Promotions Strategy

The promotions strategy for National Wholesale is as follows:

Word of Mouth/Referrals

Howard and Stacy Steinberg have built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients. The contacts and clients will follow them to their new company and help spread the word of National Wholesale.

Professional Associations and Networking

National Wholesale will join all national trade groups and offer to take on official duties. This will increase their potential client base and build business relationships. They will also join statewide associations and non-profit organizations to help with state-related food security issues and determine that food not used will go to worthy recipients through qualified services.

Print Advertising

Using a special drop-in mailer, National Wholesale will advertise to all grocery stores within the US via a national weekly grocery store magazine. The advertisements will be quarterly, with the results of the ad buy examined at the end of the first fiscal year.

Website/SEO Marketing

National Wholesale will fully utilize their website. The website will be well organized, informative, and list all the services that National Wholesale provides. The website will also list their contact information and list their warehouse space available. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “wholesale food” or “wholesale distributor near me,” National Wholesale will be listed at the top of the search results.

The pricing of National Wholesale 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 National Wholesale. Operation Functions:

  • Howard Steinberg will be the President of the company. He will oversee all staff and manage client relations.
  • Stacy Steinberg will be Strategic Inventory Manager. She will oversee digital tools that drive on-time deliveries and the logistics that go with tools. Together, Howard and Stacy have recruited:
  • David Dickson will take on the role of Vice President of Sales and Marketing.
  • Marsha Michelson will become the Administrative Manager, who will manage the office administration, client files, and accounts payable.
  • Stanley Maren will become the Staff Accountant, and will provide all client accounting, tax payments, and monthly financial reporting.

Milestones:

National Wholesale 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 National Wholesale
  • 6/1/202X – Finalize contracts for National Wholesale clients
  • 6/15/202X – Begin networking at industry events
  • 6/22/202X – Begin moving into National Wholesale office
  • 7/1/202X – National Wholesale opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for National Wholesale are the fees they will charge to clients for their services.

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

Funding Requirements and Use of Funds

National Wholesale is seeking $200,000 in debt financing to launch its wholesale 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 Contracts Per Month: 380
  • Average Revenue per Month: $190,000
  • Office Lease per Year: $100,000

Financial Projections

Income statement.

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Wholesale Business Plan FAQs

What is a wholesale business plan.

A wholesale business plan is a plan to start and/or grow your wholesale 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 Wholesale business plan using our Wholesale Business Plan Template here .

What are the Main Types of Wholesale Businesses?

There are a number of different kinds of wholesale businesses, some examples include: Full service retail wholesale, Wholesale brokerage or agency, Manufacturers’ wholesale, and Specialty wholesale.

How Do You Get Funding for Your Wholesale Business Plan?

Wholesale 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 Wholesale Business?

Starting a wholesale 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 Wholesale Business Plan - The first step in starting a business is to create a detailed wholesale 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 wholesale 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 wholesale business is in compliance with local laws. 3. Register Your Wholesale Business - Once you have chosen a legal structure, the next step is to register your wholesale 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 wholesale 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 Wholesale Equipment & Supplies - In order to start your wholesale 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 wholesale 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.

Learn more about how to start a successful wholesale business:

  • How to Start a Wholesale Business

Business Plan Examples

Winning business plan templates for small businesses

Bicycle wholesaler marketing plan.

February 6, 2017 david Transportation , Wholesale & Distributor 0

Executive Summary

Situation analysis, market summary.

Wheelie Deals has compiled good information regarding their market and the target customers that make up the market. Wheelie Deals will leverage this information to better understand who is served, their specific needs, and how Wheelie Deals can better serve them.

wholesale bicycle distributor business plan

Market Needs

Wheelie Deals is providing retail bicycle shops with a wide assortment of bicycle-related items, including clothing and components significantly discounted from the normal wholesale prices. Wheelie Deals seeks to fulfill the following benefits that are important to its customers. Selection: A wide selection of components, wheels, clothing, bicycles and accessories will be offered to the customer. Accessibility: The entire catalog is available to all bicycle shops in the U.S. Customer Service: The customer will be impressed with the level of help and attention that they receive in all interactions, whether sales, returns, etc. Competitive Pricing: Because all of Wheelie Deals’ products are closeouts, specials, etc., they will be better priced than other wholesalers.

Market Trends

The market trend for the last six to nine years has been an erosion of margins for bicycles. Profits are recaptured through higher margins found in accessories and service departments. Because the bicycle shops must rely on accessories and service to generate profit, it makes it increasingly difficult for local shops to compete with the large mail order houses. Consequently, there has been an exodus of customers heading toward the mail order catalogs. It would be quite attractive to the local bicycle shops if they suddenly had the capacity to compete with the mail order houses. Currently, the industry is served by 10-15 different wholesalers. Each wholesaler has their own niche to some degree, but generally they have a fairly wide product offering. Bicycle retailers in need of parts will contact a distributor and purchase their products from them. Some or most of the wholesalers have a sale or closeout section, but this typically makes up a small percentage of their business. It is well known that the margins in the retail bicycle industry are small. 30% for the bicycles, 75% for components, and 100% for clothing. Closeouts are a great way to increase store traffic and significantly help out the shop’s bottom line with nice margins.

wholesale bicycle distributor business plan

Market Growth

From 1991-1999 bicycles shops enjoyed growth of up to 11%, primarily from the popularity of mountain bikes. Within the last year and half, sales of mountain bikes have grown flat, decreasing overall bicycle shop growth to 4%. The one saving grace to this predicament is a resurgence of growth for road bicycles. This recent growth is in part fueled by America’s Lance Armstrong’s domination of professional cycling in the last three years of the Tour de France. What makes this all the more incredible and inspirational is the fact that his first Tour win came two years after recovering from what was thought to be terminal cancer. The other factor that has contributed to the resurgence of road bikes is the increase in bicycle paths and bicycle lanes that has been built within the last several years. While the retail bicycle industry is not forecasted to grow at the same rates as it did in the early nineties, it is likely to grow around 6% a year for several years. Since the wholesale bicycle industry is so tied together with the retail side, growth rates for the two generally mirror each other.

wholesale bicycle distributor business plan

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Wheelie Deals.

Strong relationships with many different manufacturers, often negotiating an exclusive distribution deal with them. Excellent staff who are well-trained cycling enthusiasts who recognize the need to ensure complete customer satisfaction. A wide selection of goods.

The difficulty of raising visibility among all of the perspective customers. The nature of the industry which does not have a smooth, constant flow of goods (specials and closeouts). Predicting what products will sell is difficult and since closeouts by their nature are purchased in big lots, a wrong choice could create a glut of inventory.

Opportunities

Wheelie Deals’ business model addresses the problem that the retail industry faces decreasing margins. The ability to spread fixed costs over a larger area as sales increase, increasing profit margins. While the bicycle industry is affected to some degree by the circular nature of the economy, bicycle and accessory sales never fall completely flat since there are many people that ride bikes regardless if it is economic boom or bust.

Entry into this market niche from an established distributor, recognizing this is the area for growth in the industry. A decrease in the willingness for manufacturers to sell their closeouts to retailers via wholesalers, instead selling all of their excess directly to the mail order houses.

Competition & Buying Patterns

The major competitors are: Seattle Bike Supply: this is a national distributor with several warehouses spread out across the country. Seattle sells some closeout products, but they make up a small portion of their business. Quality Bicycle Products: this is a relatively high-end bicycle component distributor that operates on a national scale, however, they only have one warehouse in Minneapolis, MN. Riteway: this is a national wholesaler with multiple warehouses. Riteway has an extensive product catalog and does offer a decent amount of closeouts, in part due to a minority holding of the GT bicycle company. Bicycle retailers tend to favor one type of distributor for certain things. Some variables that influence decision is price, availability, shipping time, and available terms. The retailers will often use one main wholesaler and aggregate as much as possible into an order to save shipping costs.

Product Offering

Wheelie Deals is a wholesale distributor of bicycles and bicycle components. Wheelie Deals specializes in closeouts, last year models, and seconds. Some of the manufacturers that Wheelie Deals sells are: Shimano; Campagnolo; White Industries; Syncros; Mavic; Chris King; Tioga; Michelin; Easton; Rock Shox; Answer Racing; Salsa; Race Face; Sweet Parts; Grip Shift; Ritchey; Wellgo; Pearl Izumi; Bellweather; Swobo; And many more manufacturers.

Keys to Success

The keys to success are: Unbeatable selection. Outstanding customer service. Good inventory management.

Critical Issues

Marketing strategy.

Wheelie Deals’ mission is to create the largest selection of closeout bicycle parts. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

Marketing Objectives

Increase repeat customers by 6% per quarter. Decrease the cost of customer acquisition by 5% per year. Create general awareness of Wheelie Deals within the retail bicycle industry. Increase the catalog of products by 15% a year by skillfully communicating to the manufacturers the success of this business model.

Financial Objectives

A double digit growth rate for the first five years. An increase of the profit margin by 3% a year. Profitability within one year.

Target Markets

The two segments that Wheelie Deals will be targeting are: Independent Bicycle Shops: The large majority of bicycle retailers are independently owned sole proprietorships. They are usually owned by one person and range from three to ten employees, depending on the season. Chain Bicycle Shops: Although chains are not the predominant business form, most large cities (over 200,000 people) have at least one chain serving the community. Sometimes the chains are franchises with different owners, other times they are same owners with multiple stores. The majority of sales will be to the independent bicycle shops. The reason for this is most of the chains have a very uniformed product offering that does not deviate for specials and closeouts. The chains tend to value consistency of product offerings at the expense of increased profit margins on special items.

Positioning

Wheelie Deals will position themselves as the premier bicycle wholesaler of closeouts, specials and other deals, providing retailers with increased margins. Wheelie Deals will leverage their competitive edge to ensure the proper positioning. Currently wholesalers in this market are not specializing their product lines. Everyone tends to carry a fairly wide range of things. It is a clear advantage to be focused and only concentrate a specific niche. By focusing on closeouts, retail shops can contact Wheelie Deals and always find products that offer very nice margins, uncharacteristic of the bicycle industry. The trend of the industry in general is of consolidation. By offering value-added services such as closeout items which provide the retailer with better than average margins, Wheelie Deals is developing value that creates a steady flow of customers helping to not force them into a consolidation arrangement until they are truly ready.

The main objective for Wheelie Deals is to position themselves as the premier source for bicycle and bicycle component deals within the U.S. The marketing strategy will seek to first create customer awareness regarding the products offered, then develop the customer base, and finally work toward building customer loyalty and repeat business. The message that Wheelie Deals seeks to communicate is that they are the one-stop source for great deals. This will be done using several different methods. The first method will be participation at the national trade shows. Wheelie Deals will develop a visible booth to highlight the products that they offer as well as communicate to the manufacturers that they are a source for getting rid of their overstocks. Wheelie Deals will also be developing advertising in the Bicycle Retailer, the premier industry journal. Lastly, Wheelie Deals will have a robust website displaying all of the different products that they have as well as current availability, and the option of ordering online.

Marketing Mix

Wheelie Deals’ marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing: The pricing scheme will be a complex formula that takes into account profit margin, the forecasted period that the product will be inventory, and the availability of the product to other wholesalers. Distribution: All products will be distributed from Wheelie Deals warehouse to any shop in the U.S. Advertising and Promotion: Wheelie Deals will use a multi-pronged advertising campaign to generate visibility. Customer Service: Retail shop personnel will be surprised at the level of customer service that they receive. Wheelie Deals’ business practices and customer training emphasize the importance of exceeding customer’s expectations. If this is accomplished, profits are virtually guaranteed.

Marketing Research

Break-even analysis.

The Break-even Analysis indicates that $31,846 will be needed in monthly revenue to reach the break-even point.

wholesale bicycle distributor business plan

Break-even Analysis
Monthly Revenue Break-even $15,941
Assumptions:
Average Percent Variable Cost 50%
Estimated Monthly Fixed Cost $15,923

Sales Forecast

The first month will be used to secure warehouse space, set it up to accept inventory. and hire personnel. During the first six weeks relationships will be established with many different manufacturers of parts. These relationships will be based on Wheelie Deals willingness to take all of their closeouts. Typically, the manufacturer will call several distributors and eventually will find someone to take some or all of their product. Wheelie Deals increased willingness to take all closeouts will create an incentive for the manufacturer to contact Wheelie Deals first. Month three will mark the first decent month of sales. It is forecasted that sales will steadily increase after this month.

wholesale bicycle distributor business plan

Sales Forecast
2001 2002 2003
Sales
Independent bicycle shops $186,930 $335,458 $365,454
Chain bicycle shops $121,505 $218,048 $237,545
Total Sales $308,435 $553,506 $602,999
Direct Cost of Sales 2001 2002 2003
Independent bicycle shops $93,465 $167,729 $182,727
Chain bicycle shops $60,752 $109,024 $118,773
Subtotal Direct Cost of Sales $154,217 $276,753 $301,500

Expense Forecast

The marketing expenses will be budgeted to ramp up before and slightly after the two major trade shows each year. The website expenses however, will be consistent throughout the year.

wholesale bicycle distributor business plan

Marketing Expense Budget

Marketing Expense Budget
2001 2002 2003
Trade shows $6,000 $8,000 $10,000
Advertising $6,700 $8,000 $11,000
Other $1,200 $1,500 $2,000
———— ———— ————
Total Sales and Marketing Expenses $13,900 $17,500 $23,000
Percent of Sales 4.51% 3.16% 3.81%

Implementation

The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget.

Milestones
Advertising Start Date End Date Budget Manager Department
Marketing plan completion 1/1/2001 2/1/2001 $0 ABC Department
Website development 1/1/2001 2/1/2001 $1,200 ABC Department
Trade show #1 1/1/2001 2/31/01 $2,000 ABC Department
Advertising series #1 3/1/2001 6/1/2001 $2,700 ABC Department
Trade show #2 10/1/2001 12/31/2001 $2,000 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Other 1/1/2003 1/15/2003 $0 ABC Department
Total Advertising Budget $7,900
PR Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total PR Budget $0
Direct Marketing Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Direct Marketing Budget $0
Web Development Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Web Development Budget $0
Other Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Other Budget $0
Totals $7,900

Contingency Planning

Difficulties and Risks Problems getting a sufficient source of product. Unexpected costs in the warehousing and distribution of the goods. An entry into the closeout market by an already existing wholesaler. Worst Case Scenario Determining the business cannot support itself on an ongoing basis. Having to liquidate equipment to cover liabilities.

Contribution Margin

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How to Start a Distribution Business in 14 Steps (In-Depth Guide)

Updated:   March 1, 2024

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Global distribution is on the rise, with more than $7 trillion earned in 2022 . With a compound annual growth rate (CAGR) of 4.5%, the market could hit 11.93 trillion in 2032. That’s a huge motivator for entrepreneurs looking to get started in the distribution industry.

wholesale bicycle distributor business plan

This article will walk you through the key steps for how to start a distribution business. We’ll cover everything from market research and registering an EIN, to opening a business bank account and compiling competitive analysis to build a better distribution business plan. Whether you want to focus on retail distribution, wholesale distribution, or e-commerce order fulfillment, you’ll find the essential advice to launch and grow a successful venture.

1. Conduct Distribution Market Research

Market research is essential to any wholesale distribution business. It offers insight into your target market, market saturation, supply chain trends, and other important elements of a successful wholesale distribution business.

Some details you might learn through market research include:

  • Within wholesale distribution, the largest sectors are electronics, food service, and automotive parts.
  • For retail distribution, e-commerce is fueling immense growth.
  • Major retailers like Amazon and Walmart are building more warehouses and fulfillment centers.
  • Beyond physical products, the distribution of digital goods like software, games, and apps is surging.
  • Video games alone require distributing nearly 200 GB per title.
  • Fast, reliable networks are essential.

The distribution sector provides immense opportunities across wholesale, retail, digital goods, and e-commerce order fulfillment. With strong inventory management, logistics networks, and customer service, new distribution companies can capture significant market share.

2. Analyze the Competition

Competitive analysis tells you a lot about the local distribution business market. Learning about other distribution businesses helps you better understand pricing, the best local retailers and inventory management products, and more.

Some ways to get to know about wholesale distribution company competitors include:

  • Identify direct competitors in your geographic area or niche by searching industry databases.
  • Drive by brick-and-mortar stores and assess the location, branding, customer traffic, and facilities.
  • Research competitors online too. Check if they offer import/export services as well.
  • Google their company and brand names to find their websites.
  • Review their product catalog, messaging, offers, and site functionality.
  • Check Alexa rankings and traffic estimates.
  • Monitor their social media for customer engagement levels.
  • Search their name on review platforms.
  • Look for negative reviews that present opportunities to differentiate your business.
  • Regularly check job sites like Indeed for openings that may indicate growth plans or challenges in retaining talent.
  • Track press releases and news mentioning your rivals.

By thoroughly evaluating competitors across all channels, you can craft a distribution business positioned for success. Tailor your offerings, marketing, and operations to your target customers’ needs.

3. Costs to Start a Distribution Business

When starting a distribution company, your initial costs will vary based on your business model and scale. Let’s take a closer look at the expenses you’ll encounter as a wholesale distributor.

Start-up Costs

  • Business registration and licensing – $500-$2,000 to form an LLC or corporation and obtain required state and local licenses. The cost rises if you need transport permits.
  • Warehouse space – $2-$20 per sq. ft monthly, so a 5,000 sq. ft warehouse would run $10,000-$100,000 per month. Leasing provides more flexibility than buying commercial property.
  • Racking and storage – $3,000-$10,000 for a basic pallet rack system for a small to mid-sized operation. Expandable as inventory grows.
  • Trucks and vehicles – Used box trucks start around $20,000. Leasing trucks is often better financially than purchasing. Fuel costs must also be budgeted.
  • Equipment – Pallet jacks ($250+ each), forklifts ($5,000+), conveyors, scales, and barcode scanners ($1,500+) are common distribution equipment costs.
  • Technology – Warehouse Management System (WMS) software costs around $5,000 for an entry-level package. Must also budget for inventory, order, POS, and accounting software based on needs.
  • Insurance – General liability insurance averages $1,000-$2,000/year. Commercial auto insurance for vehicles can run $5,000-$20,000 annually depending on fleet size.
  • Initial inventory – Plan $10,000-$100,000+ to purchase your first product inventory stock, depending on supplier costs and diversity of SKUs.
  • Staff – Warehouse workers average $15/hour. Delivery drivers often start around $18/hour. Will need 1-2 office staff in addition to variable warehouse headcount.
  • Professional services – $1,000-$5,000 for legal, accounting, and business consulting services to start.
  • Marketing – $2,000-$5,000 to build a basic website, branding, and promotional materials to launch.

Ongoing Costs

  • Facility fees – Mortgage or continuing warehouse lease costs.
  • Payroll – Salaries and hourly wages for all staff plus taxes and benefits management fees.
  • New inventory – Replenishing stock as products sell through. Can range from thousands to millions based on sales.
  • Software/technology – Monthly fees for business systems like WMS.
  • Gas, oil, maintenance – For company vehicles, averaging 10-20 cents per mile.
  • Utilities – Electric, gas, water, etc. for warehouse. May be included in the lease.
  • Insurance – Monthly premiums for policies.
  • Security – Alarm fees, video monitoring, etc. if not included in the lease.
  • Taxes – Income, payroll, property, etc. Complex, so engage accounting professionals.
  • Marketing – SEO services, PPC ads, trade shows, and other promotions to attract business. Budget $5,000-$50,000 based on marketing activities.
  • Vehicle registration/inspection – For company trucks and fleets.

By planning for these costs and budgeting accordingly, you can launch a distribution startup while managing expenses wisely as you scale. Adjust costs for your specific needs and location.

4. Form a Legal Business Entity

When starting a distribution business, choosing the right legal structure is key. The main options each have pros and cons:

Sole Proprietorship

A sole proprietorship is the simplest structure. You alone own and operate the company directly. This gives total control and avoids corporate taxes. However, you assume unlimited personal liability for debts and legal issues.

Partnership

Partnerships let multiple owners share control and liability risk. A distribution partnership could combine experience in sales, operations, and finance. However, partnerships can get complicated if disputes arise between partners. Dissolving one also requires legal filings.

Corporation

A corporation offers limited liability for shareholders but requires extensive recordkeeping and corporate taxes. The board structure facilitates raising investment capital which distribution startups may need to expand. However, maintaining compliance as a C corporation has recurring costs.

Limited Liability Company (LLC)

For distribution, a limited liability company (LLC) offers the best of all worlds. As the name implies, your assets are protected from business debts and lawsuits. You get pass-through taxation to avoid corporate taxes. LLCs are relatively quick and affordable to establish and operate. You can still attract investors by issuing ownership units.

5. Register Your Business For Taxes

Before launching your distribution company, a key legal step is obtaining an Employer Identification Number (EIN) from the IRS. This unique 9-digit number identifies your business for tax purposes.

It’s easy to apply online at IRS.gov. Just follow these steps:

  • Go to the EIN Assistant page: Apply for an EIN Online
  • Answer a few questions about your business structure and details.
  • When prompted, provide your personal identifying information for security purposes.
  • Select a “responsible party” for your business, usually the owner.
  • Review your information to ensure accuracy.
  • Print the confirmation page with your new EIN for your records.

The entire process usually takes less than 10 minutes to complete and receive your EIN. This number will be used on your tax returns, applications, and other required IRS filings. There is no filing fee.

You’ll also need to contact your state’s revenue or taxation department to register for sales tax collection. This enables charging sales tax on purchases. Filing requirements and fees vary by state. This establishes your business as a lawful tax collector. Failure to register can lead to penalties.

Obtaining your federal EIN and registering for state sales tax collection are vital steps to operating legally as a distribution company. With these numbers, you can open business bank accounts, apply for licenses, hire employees, and collect and remit sales taxes. Taking these actions upfront will save hassle as your customer transactions grow.

6. Setup Your Accounting

Maintaining accurate financial records is critical for distribution companies. With frequent inventory purchases and sales transactions, keeping your books in order can get complex.

Accounting Software

Using small business accounting software like QuickBooks is highly recommended. The system can sync with your business bank accounts and credit cards to automatically import and categorize transactions. Features like invoicing, billing, and reporting make managing finances much easier.

Hire an Accountant

Hiring an accountant provides expert assistance. They can handle essential tasks like:

  • Bookkeeping – Recording income and expenses in your accounting system.
  • Payroll – Calculating taxes and preparing paychecks for employees.
  • Cash flow analysis – Reviewing income and outflows to improve financial planning.
  • Tax preparation – Filing quarterly estimated payments and annual tax returns.

Expect to pay $200-$500 monthly for ongoing bookkeeping and $2,000-$5,000 for annual tax preparation. Worth the investment for proper compliance and financial health monitoring.

Open a Business Bank Account

Keeping business and personal finances separate is also key. Open dedicated checking/savings accounts and apply for a business credit card. Business cards require your company’s information and focus on assessing potential based on factors like time in business, industry, and estimated revenue.

7. Obtain Licenses and Permits

Before launching your distribution startup, taking the time to get the right licenses and permits is crucial. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

Some of the key licenses and permits for distribution companies include:

  • Transportation permits – If providing delivery services, you likely need permits from the Department of Transportation for both the state you are based in as well as any states you will drive through.
  • Business license – Most cities and counties require any business operating in their jurisdiction to be registered and licensed.
  • Seller’s permit – If selling products wholesale or retail, you need a state seller’s permit to collect sales tax. You must file regular returns to remit taxes collected.
  • Food handling permit – If distributing food or beverages, local health department permitting is required. This verifies safe food handling practices are in place.
  • Alcohol distribution permit – For companies distributing alcohol, licensing with the Alcohol and Tobacco Tax and Trade Bureau (TTB) is mandatory.

Failing to secure necessary permits and licenses right away can sink a distribution startup quickly. Work with local business attorneys and government agencies to determine which ones your business model requires before operations begin.

8. Get Business Insurance

Carrying adequate insurance is crucial to protect a distribution business from unexpected disasters and lawsuits. Without proper coverage, a single incident could destroy everything you’ve built.

For example, you could face major costs from:

  • A burst pipe that floods your warehouse, damaging inventory. Without insurance, you’d pay for repairs and replaced stock out of pocket.
  • A delivery truck accident that injures other drivers. You’d be liable for their medical bills without commercial auto insurance.
  • An employee injury on-site led to a lawsuit. General liability coverage helps pay their claim so your assets are not at risk.

To get insured, first determine your risks. Consider property, general liability, commercial auto, workers comp, etc. Then shop quotes from providers like Hiscox , Next , and Progressive . Compare coverage options and pricing.

Apply by submitting details on your business operations and history. Policies can range from $500-$5,000+ annually depending on the level of protection.

Being underinsured can sink everything. With the right policies, you can rest easier knowing your distribution business is protected if the worst happens.

9. Create an Office Space

Having a dedicated office provides a professional home base for your distribution startup. It’s useful for tasks like payroll, accounting, sales calls, and meetings. Options range from working at home to leasing commercial space.

Home Office

A spare room can be converted into a home office cheaply. Provides flexibility and no commute. However, having staff onsite regularly could violate zoning laws. Isolation can also limit productivity. Expect costs of $100-$500 for basic furnishings and supplies.

Coworking Office

Coworking spaces like WeWork offer affordable shared offices on flexible terms. Great for solopreneurs. Access to amenities like lounges, conference rooms, and printing kiosks for around $300-$800 monthly. But noise and distractions could impact focus.

Retail Office

Retail space gives distribution companies a small storefront if direct-to-consumer sales are part of the model. Ranging from strip malls to standalone buildings, lease rates average $15-$30 per square foot. Benefits onsite visibility but requires manning the location.

Commercial Office

Commercial office leases provide dedicated space with privacy. Standalone small offices rent for approximately $800-$1,500 monthly. Multi-office suites in larger buildings average $1,000-$2,500 monthly. Ideal for stability but requires longer lease terms.

10. Source Your Equipment

Launching a distribution operation requires outfitting your warehouse, fleet, and teams with the right gear. From pallet racks to forklifts, various options exist to procure necessary supplies and equipment:

Major retailers like Costco , Sam’s Club , and BJ’s Wholesale sell a wide range of new equipment and bulk materials ideal for distribution. Products like pallet jacks, shelving, boxes, and labels are competitively priced. The downside is no chance to save on used items.

Buying Used

Check industry classifieds like BizBuySell to find listings for quality used warehouse and delivery equipment near you. Facebook Marketplace and Craigslist are other sources. Can get substantial savings over new. Ensure proper inspection and maintenance.

Equipment rental companies like United Rentals allow flexible access to equipment as needed. Pallet jacks rent for $25+/day and 4,000 lb. forklifts around $150+/day. No large upfront costs but expenses add up with ongoing frequent use.

Leasing equipment from companies provides long-term access to gear like conveyors, lifts, and racking without a huge initial investment. However, hiring general contractors can lock you into set monthly payments. Some flexibility on lease terms.

11. Establish Your Brand Assets

Creating a strong brand is crucial for distribution companies to stand out and be remembered. Your brand identity should be professional, and consistent, and convey your offerings.

wholesale bicycle distributor business plan

Get a Business Phone Number

Getting a unique business phone number from providers like RingCentral shows customers you are legitimate. Dedicated numbers with custom greetings and voicemail boost credibility over using personal devices.

Design a Logo

Your logo is a pivotal part of your brand. Consider an icon, monogram, or abstract mark. Simple designs are memorable and scalable. Services like Looka offer affordable logo design and branding packages to fit your needs.

Print Business Cards

Business cards featuring your logo let sales reps seamlessly share your brand when networking. Signage and vehicle wraps should use your branding too. Vistaprint provides custom cards, banners, decals, and more to unify your visual identity.

Buy a Domain Name

Secure the ideal .com domain for your company quickly before someone else does through registrars like Namecheap . Make it easy to remember – similar to your name is best.

Design a Website

Building a modern, responsive website is a must through platforms like Wix or hiring a web developer from marketplaces like Fiverr . Showcase your capabilities and make it easy for prospects to learn about and contact your company.

12. Join Associations and Groups

Joining relevant local organizations and online communities provides invaluable connections and insights for distribution companies. Surrounding yourself with others in your industry helps you continuously learn and grow.

wholesale bicycle distributor business plan

Local Associations

Search for associations like local chambers of commerce or industry-specific groups like the National Association of Wholesaler-Distributors . Meeting fellow business owners creates referral opportunities and mentorship. Attend association events whenever possible through organizers like NAW and the Houston Northwest Chamber .

Local Meetups

Regularly participating in local meetups and trade shows also expands your network. Sites like Meetup help find upcoming events near you. Bring plenty of business cards and product samples to share. Exchanging ideas in person fosters relationships.

Facebook Groups

Join industry-related Facebook Groups to tap into broader communities. The Wholesale Suppliers & Distributors in the US -SourceSupreme and Rellers / Dealers / Distributors / Manufacturers / Factory Price groups have thousands of members and discussions. Share your challenges and solutions while learning from experienced peers.

13. How to Market a Distribution Business

Implementing an effective marketing strategy is essential for distribution companies to attract new customers and expand. While referrals from your network provide a strong start, you’ll need diverse tactics to increase awareness and sales on an ongoing basis.

wholesale bicycle distributor business plan

Personal Networking

Use your network to begin marketing your brand. Your friends, relatives, and past coworkers can assist with word-of-mouth marketing, passing out business cards, distributing fliers, and more.

Digital Marketing

Leveraging digital channels offers targeted, measurable promotion. Useful online marketing approaches include:

  • Google Ads – PPC ads placed on Google Search alongside organic results based on keywords. Costs accrue when ads are clicked.
  • Facebook Ads – Highly targeted ads within Facebook and Instagram based on detailed audience parameters to reach your ideal customers.
  • SEO – Organic search optimization through keyword research, site optimization, content creation, and link building to rank highly in search engines.
  • Email Marketing – Building an email subscriber list to promote services and offers through regular campaigns with a provider like Mailchimp.
  • Social Media – Establishing accounts on platforms like LinkedIn, Twitter, and TikTok to interact with followers and share content.
  • YouTube Channel – Creating video tutorials, testimonials, and other branded video content viewable on the world’s second-largest search engine.

Traditional Marketing

Traditional approaches still have value for raising local visibility:

  • Printed Flyers – Inexpensive to design flyers highlighting your services and contact info to share around your region.
  • Newspaper Ads – Local papers remain widely read and provide an established channel to reach nearby customers.
  • Radio Spots – Short audio ads during talk radio shows related to business and entrepreneurship can boost brand awareness.
  • Direct Mail – Targeted postcard and letter campaigns to businesses in your area that may need your distribution services.

With the right mix of digital marketing and selective traditional promotion, distribution companies can continually attract new accounts and grow revenue. Track results and iterate on what works best.

14. Focus on the Customer

Providing exceptional customer service is pivotal for distribution companies to retain accounts and drive referrals. How you support customers directly impacts your reputation and bottom line.

  • Be responsive to inquiries with quick callbacks and emails, even when simply acknowledging requests.
  • Set clear expectations for order fulfillment times and meet or beat them.
  • Follow up post-delivery to resolve any issues immediately.
  • Going above and beyond on service creates memorable experiences.
  • For instance, directly assisting a retailer with setting up an initial product display and training staff on features builds lasting goodwill.
  • Following up with customers routinely also opens the door for reorder reminders and sharing new offerings.
  • Send occasional surveys to monitor satisfaction and identify areas for improvement.
  • With the rise of review sites like Yelp, one bad customer experience with retail distributors can significantly damage their brand when shared publicly.

By making customer service a priority, distribution companies demonstrate reliability and value. This establishes trust that leads to repeat business and referrals that fuel sustainable growth.

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Bicycles wholesale Distributor Business Plan

Bicycles have been a great form of transport from a very long time now. People now not only use it to commute from one place to another but they also use it as a form of exercise. Bicycles are today available in various forms and variety and people choose them as per their needs. If you are thinking of starting a bicycle wholesale distributor business then you must know from where to get all the variety and best place to start your business. A good business plan will help you know all you need to understand to start your bicycle wholesale distributor business.

To see the high ups in your business or improvements in the existing one . Please browse here for a list of pre-written Business Plan for businesses.

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How to become a bike part distributor.

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The National Bicycle Dealer’s Association (NBDA) states that the bicycle industry has been declining because of the high expectations of the current customers and a low profit margin relative to the high start-up capital. As of 2008, the industry is losing 1,000 bicycle retailers every other year. You may find it difficult to establish yourself in the bicycle industry without proper planning. However, as of 2008, cycling ranked fifth for the most popular outdoor recreational activities, hinting at a good market that you can reach with a solid marketing plan.

Devise a business plan with mission and vision statements, start-up and operating expenses, projected revenues for a few years, funding sources, marketing plan, competitor analysis and pricing strategy. Identify competitors in your locality and assess your funding requirements.

Choose a business legal structure. It may be a sole proprietorship, partnership, corporation or a limited liability company. Make the right decision now since a change in the legal structure after the establishment of the business is difficult and expensive.

Obtain a unique domain name for your business and register it with your secretary of state.

Obtain an Employer Identification Number (EIN), otherwise referred to as a Federal Tax Identification Number from the IRS website, IRS.gov. This number helps to identify your business as a separate entity for tax purposes.

Choose a suitable location for storing the bike parts that you will purchase to distribute from the manufacturer. Consider factors such as proximity to factory and distribution outlets, along with adequate storage space for all inventory.

Obtain the necessary business licenses and permits from your federal, state, city and county levels. Check with each separately and apply. You will need a state resale permit.

Choose the supplier after a supplier evaluation based on factors such as quality, brand, timeliness, customer preference and reliability. You can start with a single brand initially and extend your services to other brands. Sign agreements with the chosen manufacturers, establishing distribution rights and resell rights.

Purchase the bike parts from the chosen suppliers. Add tag numbers to each part for easier identification. Create a budget and stick to it. Separate the items purchased for distribution.

Purchase vehicles such as trucks to distribute the parts to their corresponding location. Hire drivers who have a good driving history and a valid driving license.

Obtain the business insurance with the necessary coverage. Make sure that it covers your store as a whole, along with the bike parts and trucks.

Market your business after setting a price for the parts. Include a reasonable profit margin based on your industry. Place ads in the phone book, newspapers, TV and radio stations.

Offer free transport until you build a good client base.

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  • The Complete Guide To the Home-Operated Bicycle Business

Alexander Cequea has been writing since 2008. He is an activist, speaker and film producer whose work has been featured in "Enlightennext Magazine" and the Environmental News Network. Cequea is currently producing a documentary about sustainability and consciousness. He has a Master of Business Administration in sustainable business from Maharashi University.

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Bicycle wholesaler and distributor marketing plan

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wholesale bicycle distributor business plan

This is a complete marketing plan example for a Bicycle wholesaler and distributor business, including marketing vision and strategy, product positioning, sales forecast, expense budgets, metrics for success, and more. This marketing plan was created with Marketing Plan Pro, the most popular marketing plan software. Learn more at www.paloalto.com.

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Wholesale Bicycle Distributor Business Plan

Wholesale Bicycle Distributor Business Plan

Wheelie Deals is a wholesale distributor that serves the retail bicycle industry. Wheelie Deals is a wholesale distributor that serves the retail bicycle industry. They offer closeouts, last year models and seconds. While most large wholesalers have closeouts available, there is not much availability of special deals. Wheelie Deals quickly will be the top source for retail shops with higher margins.

Wheelie Deals’ leader is Dan Psycle MBA, a veteran of bicycle industry. Dan has taken an existing successful wholesale distributor business model to design Wheelie Deals. He will quickly gain market share. Profitability will be attained by month eight and comfortable profits achieved by year three.

1.1 Objectives

These are the objectives for the first three year of operation:

  • To create a company whose goal it is to exceed customers’ expectations.
  • To increase customer service by 20% each year.
  • To build a sustainable business that can survive on its own money.

1.2 Mission

Wheelie deals’ mission is to provide the most complete selection of bike parts. We aim to maintain and attract customers. This maxim will guide everything else. Our services will surpass the expectations of customers.

Success Keys 1.3

A great selection and excellent customer service is the key to success.

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wholesale bicycle distributor business plan

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Pro Wholesale Bicycle Distributor…

$ 19.99 Original price was: $19.99. $ 8.69 Current price is: $8.69.

wholesale bicycle distributor business plan

Pro Wholesale Bicycle Distributor Business Plan Template

▪ File Formats: Microsoft Word, Fully Editable ▪ Instant Download ▪ Ready To Use ▪ Professional and complete Business Plan

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Professional Business Plan – Complete Business Plan – Ready To Use Business Plan

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COMMENTS

  1. Wholesale Bicycle Distributor Business Plan Example

    Wheelie Deals is a wholesale distributor that serves the retail bicycle industry. Wheelie Deals will carve out a focused niche within this industry, providing closeouts, last-year models, and seconds. Currently, most of the large wholesalers will occasionally have a closeout to offer, however, the availability of special deals is spotty.

  2. Wholesale Bicycle Distributor Business Plan

    Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.

  3. Wholesale & Distributor Business Plans

    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 ...

  4. Wholesale Bicycle Distributor Business Plan

    Wholesale Bicycle Distributor Business Plan. I. Executive Summary [Your Company Name] is a wholesale distributor specializing in providing high-quality bicycles and accessories to retailers across the nation. Founded in 2050, our company has quickly established itself as a trusted partner in the bicycle industry. Our mission is to offer a ...

  5. Wholesale Bicycle Distributor Business Plan

    Wholesale Bicycle Distributor Business Plan. I. Executive Summary [Your Company Name] is a wholesale distributor specializing in providing high-quality bicycles and accessories to retailers across the nation. Founded in 2050, our company has quickly established itself as a trusted partner in the bicycle industry. Our mission is to offer a ...

  6. PDF Thanks for downloading a sample plan from Bplans

    This sample business plan has been made available to users of . Business Plan Pro ®, business planning software published by Palo Alto Software, Inc. Names, locations and numbers may have been changed, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information.

  7. How to write a business plan for a bicycle and accessories wholesaler?

    Creating a business plan for a bicycle and accessories wholesaler is an essential process for any entrepreneur. ... and what distribution channels are part of your go-to-market. For example, your bicycle and accessories wholesaler could offer a variety of wheels, frames, handlebars, brakes, and other parts to customers who need to repair ...

  8. How to Start a Bicycle Wholesale & Manufacturers Business

    How to Draft a Bicycle Wholesale & Manufacturers Company Business Plan. Your new bicycle wholesale and manufacturers business needs a business plan. But if you've never drafted a business plan before, the process can be intimidating. But here's the good news: With a few tips, any entrepreneur can create a successful plan for their business.

  9. How to open a bicycle and accessories wholesaler?

    Navigate the legal and regulatory requirements for launching your bicycle and accessories wholesaler. Create a business plan for your bicycle and accessories wholesaler. Raise the financing needed to launch your bicycle and accessories wholesaler. Track your actuals against your forecast. Key takeaways.

  10. Wholesale Business Plan Template (2024)

    A wholesale business plan is a plan to start and/or grow your wholesale 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 Wholesale business plan using our Wholesale Business Plan Template here.

  11. Bicycle Wholesaler Marketing Plan

    Bicycle Wholesaler Marketing Plan. February 6, 2017 david Transportation, Wholesale & Distributor 0. ... Dan has modeled Wheelie Deals off an already successful wholesale distributor business model and will quickly gain market share. Profitability will be reached by month eight with profits of $61,000 by year three.

  12. How to Start a Distribution Business in 14 Steps (In-Depth Guide)

    Before launching your distribution company, a key legal step is obtaining an Employer Identification Number (EIN) from the IRS. This unique 9-digit number identifies your business for tax purposes. It's easy to apply online at IRS.gov. Just follow these steps: Go to the EIN Assistant page: Apply for an EIN Online.

  13. Quality Bicycle Products

    QBP Named the Preferred Distributor of Continental bicycle products in the U.S. and Canada ... That's why we distribute hundreds of wholesale brands to thousands of independent bike shops, and support advocacy programs that strengthen bike communities. ... Our partners thrive through being able to choose the solutions that best fit their ...

  14. Bicycles wholesale Distributor Business Plan

    Bicycles wholesale Distributor Business Plan - know more about Bicycles wholesale Distributor business and get step by step guide to start your business. BusinessPlanDirectory.net Complete Business Plans, Tools, Resources and more.

  15. Bicycle Products & Services Business Plans

    Wholesale Bicycle Distributor Business Plan. Wheelie Deals is a wholesale distributor of bicycles and bicycle parts, focusing on closeouts, discontinued models, seconds, etc. Avid cyclists want the best products and services around to make even the most challenging rides smooth and comfortable. If you share that passion and know what it takes ...

  16. How to Become a Bike Part Distributor

    Sign agreements with the chosen manufacturers, establishing distribution rights and resell rights. Purchase the bike parts from the chosen suppliers. Add tag numbers to each part for easier identification. Create a budget and stick to it. Separate the items purchased for distribution. Purchase vehicles such as trucks to distribute the parts to ...

  17. wholesale bicycle distributor business plan

    How to write a business plan for a bicycle and accessories wholesaler? Creating a business plan for a bicycle and accessories wholesaler is an essential process for any entreprene

  18. Bicycle wholesaler and distributor marketing plan

    This is a complete marketing plan example for a Bicycle wholesaler and distributor business, including marketing vision and strategy, product positioning, sales forecast, expense budgets, metrics for success, and more. This marketing plan was created with Marketing Plan Pro, the most popular marketing plan software. Learn more at www.paloalto.com.

  19. Wholesale Bicycle Distributor Business Plan

    Download Plan Arhive. Wheelie Deals is a wholesale distributor that serves the retail bicycle industry. Wheelie Deals is a wholesale distributor that serves the retail bicycle industry. They offer closeouts, last year models and seconds. While most large wholesalers have closeouts available, there is not much availability of special deals.

  20. Manufacturing & Wholesale Business Plans

    Wholesale Bicycle Distributor Business Plan With more and more small to medium-sized businesses emerging, the need for efficient and reliable suppliers grows with it. This means there is plenty of opportunities for modern manufacturers and wholesalers to step up to the plate.

  21. P2 Consulting Services

    P2 Consulting Services Helping Grow Your Business Success, Profitability and Accountability The NBDA has a myriad of tools to help you be successful at saving money and enhancing your business, all the way from bottom line improvements to top line growth. Whether you are just getting started in bicycle retail or have decades

  22. Pro Wholesale Bicycle Distributor Business Plan Template

    Pro Wholesale Bicycle Distributor… $ 19.99 $ 8.69. Pro Wholesale Bicycle Distributor Business Plan Template quantity. Add to cart. Sale! Previous Product ...