example of business plan distribution

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.

How to write a business plan for a distribution company?

Writing a business plan for a distribution company is essential in order to get your business off the ground, improve profitability or raise financing. 

Whether you are starting up a new distribution company or looking to grow an existing one, having an effective and comprehensive business plan is key.

This guide will provide detailed information on why writing a business plan for your distribution company is important, what information it should contain, and what tools can be used to write your own. 

With this guide as your reference, you will have all the knowledge needed to create an effective and successful business plan for your distribution company.

In this guide:

Why write a business plan for a distribution company?

What information is needed to create a business plan for a distribution company, how do i build a financial forecast for a distribution company, the written part of a distribution business plan, what tool should i use to write my distribution business plan.

There are several reasons to write a distribution business plan. Below, we cover some of the most important ones!

To set a clear roadmap

Writing a business plan for a distribution company is an important step for entrepreneurs to ensure the long-term success of their venture. 

It requires you to think strategically and set objectives that will guide your decisions over the next 3-5 years.

This is especially critical for startups who need to consider all aspects of their business idea and ensure it can be viable before investing time and money, but also beneficial for established distribution companies looking to expand or improve operations in the coming years. 

By having a clear roadmap laid out before them, you can have a better understanding of what needs to be done in order to reach your business objectives. 

Planning ahead also helps you anticipate any potential obstacles that may stand in the way of success, allowing you to take proactive measures and adjust your plans accordingly. 

To get clarity on your cash flow

One of the most important benefits of having a business plan is that it allows you to regularly compare your financial performance against what was planned and make necessary adjustments in order to keep your forecast accurate. 

By doing this regularly, you can identify potential financial issues (such as an unexpected cash shortfall) early on and take corrective action before they become serious problems. This also enables you to seize opportunities that may arise along the way in order to maximise profits or grow faster.

To secure financing

Having a comprehensive distribution company business plan is also essential for getting financing from banks or investors. 

Banks use the business plan to assess your borrowing capacity, identify potential collateral, and decide whether they think you will be able to repay the funds they lend your company. 

Similarly, creating a business plan for your distribution company is also an essential step when looking to secure financing from equity investors. 

Investors will carefully review the business plan to ensure that their investment in your distribution company can generate good returns. As such, they will want to see evidence of healthy growth and profitability as well as strong cash flows in your business plan. 

With a comprehensive and well-thought-out business plan, you can be confident that you are presenting potential lenders or investors with all the information they need to make an informed decision about financing your company.

Now that we understand why it is important to write a business plan for your distribution company, let's look into what information is needed in order to create one.

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Writing a distribution business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your plan!

Carrying out market research for a distribution company

Carrying out market research prior to writing a business plan for your distribution company is essential in order to get an accurate understanding of your target market and competitive landscape 

This information is invaluable when it comes to forecasting revenues and creating realistic projections in the business plan. But also in order to convince and demonstrate to the reader that there is a real opportunity to be seized on the target market.

Developing the marketing plan for a distribution company

Getting a clear picture of the road to market for your distribution company is also a prerequisite for writing the actual business plan itself.

This will be key when it comes to both forecasting sales and marketing expenditures in the financial forecast, and communicating your strategy effectively in your business plan. 

The staffing and equipment needs of a distribution company

Distribution companies require serious capital expenditures - from fleets of trucks and warehouses to highly specialised packing equipment - and a significant workforce. 

It is essential to think through the recruitment plan, financial investments, and any other costs (and associated timings) that may be associated with the business before you start drafting the document. 

Once you've gathered the information mentioned above, it will be time to start working on the financial forecast for your distribution company. Let’s see what this entails

The objective of the financial forecast for a distribution company is to obtain 4 key financial tables: the Profit & Loss (P&L) statement, the balance sheet, cash flow forecast and a sources and uses table. 

Let’s have a look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement of a distribution company shows us how much money the company will make and how much it is expected to grow in the future. 

The projected balance sheet of your distribution company

The balance sheet for a distribution company is a financial document that provides an overview of the company’s assets, liabilities, and equity at a specific point in time. 

This statement serves as a snapshot of the business's financial health and can be used to determine the company’s ability to repay its debt in the short term (liquidity) and medium term (solvency). 

Assets are items of value that your company holds, such as cash, inventory, accounts receivable and property; liabilities are the money owed to creditors or other businesses; and equity is what remains after liabilities have been subtracted from assets (and can be used as a proxy for shareholder value).

By looking at a company’s balance sheet, lenders, investors, and the business owner can gain insight into the financial health of the company. 

A balance sheet is a valuable tool for assessing how the company is doing financially, and ultimately its ability to remain sustainable and profitable over time.

The projected cash flow statement

A projected cash flow statement is a helpful tool for a distribution company. It shows how much money the company will have coming in and going out over a certain period of time. 

This helps you plan and ensure the business has enough capital for growth and investments. 

The initial financing plan

The initial financing plan (also called the sources and uses table) shows the sums that the company needs to start and how they will be used. 

It is important to have this so that you know how much capital is needed to deliver the business plan and what it will be used for. 

The sources show where the money comes from, such as investors or loans. The uses show what the money will be used for, like buying equipment or working capital. By having a source and use table, you can make sure that your business has enough money to get started!

Now that you understand what the financial forecast is made of, it's time to move on to another key part of the business plan - the written section. 

The written section is an important component, as it provides the context needed to understand and interpret financial figures. 

Let's dive in and take a closer look at this essential piece of your distribution company’s business plan.

A comprehensive business plan for your distribution company contains seven key sections: executive summary, presentation of the company, products and services section, market analysis, strategy section, operations section and financial plan.

1. The executive summary

The executive summary of a distribution company plan should start with a concise overview of your business. 

This section should then include an overview of the market, highlighting any competitive advantages that your company has. 

You should also include key financials such as expected revenues, costs, and profit margins.

Finally, this section should include a clear and concise explanation of the ask that your company is making to potential investors or lenders. This could include an overview of the funding required, and what it will be used for. 

The executive summary should succinctly capture all of these important details in order to convince stakeholders to read the rest of your business plan.

2. The presentation of the company

When writing the presentation of a distribution company for a business plan, it is important to focus on three key elements: structure and ownership, location and management team.

Starting with the structure and ownership, it is important to provide an accurate description of the legal framework of the company. This includes information about the type of business entity the company is operating under, the ownership structure and whether any external investors are involved. 

Additionally, investors may be interested in understanding any equity or debt held by the company and how the capital has been allocated.

The location of a distribution business is also critical for success. Any information about where the warehouse facilities are located as well as how many and what size they are should be included in the business plan. 

This information should also include geographic reach and any serviceable areas where the company has a particularly strong presence.

Finally, a complete description of the management team is essential for investors. The management team’s expertise and experience in the industry must be highlighted, including information about their roles and qualifications. 

3. The products and services section

When writing the products and services section of a business plan for a distribution company, it’s important to include detailed information about what your company actually does. 

You should start with an overview of the types of services offered - such as transportation, storage, packaging, click and collect, etc. - and then move on to specifics like which modes of transport are used (airfreight, sea-freight) or what type of packaging is available (pharmaceutical goods, food and beverage, standard good parcels, etc.).

It’s also important to provide details on any additional value-added services provided by the company; these could include things like custom labelling and product assembly. 

Additionally, mention if there are any special certifications or accreditations that make your business stand out from competitors in terms of quality control and safety standards. Ultimately these factors will be key in convincing potential investors that this is a viable business opportunity worth investing in.

4. The market analysis

When presenting the conclusion of your market analysis in your distribution company's business plan, it is important to include information about demographics and segmentation, target market, competition, barriers at entry, and regulation. 

This will ensure that the reader of the business plan - whether they be a bank or an investor - has all the necessary information to make an informed decision with regard to the size of the opportunity in the target market.

Demographics and segmentation should cover the target market size as well as any other pertinent data points such as verticals served. Understanding these details will help provide insight into which segments are viable targets for the company’s products and services. 

Additionally, understanding who your competitors are within those segments is key to assessing whether the company is well-positioned to capture the opportunity

It is also important for the reader to understand any potential barriers at entry that could limit your ability to enter certain market segments; this could include regulations from governmental agencies or clients being locked in existing long-term contracts with other distributors. 

5. The strategy section

When writing the strategy section of a business plan for your distribution company, it is essential to include information about your competitive edge, pricing strategy, marketing plan, milestones and risks and mitigants. 

The competitive edge should be outlined in detail; this includes any unique features or services that set your company apart from competitors. 

Additionally, the pricing strategy must be included to demonstrate how you intend to remain profitable while still offering competitive prices in order to attract customers. 

A comprehensive sales & marketing plan should also be included, this outlines how you intend to reach out and acquire new customers as well as retain existing ones with loyalty programs or special offers. 

It’s also important to include specific milestones along with dates so that everyone involved has clear expectations of progress being made over time and what the next sets of goals are. 

Finally, identifying potential risks early on and providing mitigating factors is essential in order for investors or lenders to feel secure in investing their money into your venture.

6. The operations section

In order to present the operations of your distribution company in a business plan, it is important to provide detailed information about the staffing team, roles of staff members, and recruitment plan. 

This should include job descriptions for each role, details on how they will be compensated, and an outline of the recruitment and training processes. 

Other key elements of a distribution company’s operations that need to be addressed in the business plan include any assets and intellectual property owned by the business. 

This includes physical items such as warehouses (whether owned or leased), trucks, and equipment needed for daily operations. 

Additionally, any relevant intellectual property such as brand names, logos and copyrights should be clearly stated in the plan.

Finally, it is important to outline the suppliers that a distribution company plans to work with. This should include information about contractual arrangements and payment terms for each supplier. 

With this information included in the business plan, potential investors or lenders will have a better understanding of the operations that are required to run a successful distribution business.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that we have discussed the content of a distribution company business plan, let us look at some of the tools available to help you create one.

In this section, we will review the three main solutions for creating a business plan for your distribution company: using Word and Excel, hiring a consultant, and using online business plan software.

Create your distribution company's business plan using Word and Excel

Using Microsoft Office’s Word and Excel applications for writing a business plan for a distribution company may seem like a cost-effective solution for business owners. 

While this is true in terms of cost, there are also some drawbacks to this approach that should be considered when making the decision to use Word and Excel.

Creating an accurate financial forecast for a distribution company in Excel can be extremely challenging and time-consuming unless one is an expert accountant and financial modeller. Additionally, financiers may not view such an analysis as reliable since it was created by someone other than a professional.

Furthermore, once created it can be difficult to keep a financial forecast up-to-date. 

Writing the actual business plan in Word is also inefficient as it requires the business owner to start from scratch and spend hours formatting the document afterwards.

Hire a consultant to write your distribution company's business plan

Outsourcing a distribution company plan to a consultant or accountant can be a viable solution for business owners looking to present their plan to investors or banks. 

Consultants and accountants are both well-equipped to write business plans and create financial forecasts. 

However, there are some drawbacks to outsourcing a business plan. For one, accountants may lack the industry expertise to accurately forecast sales. 

Additionally, hiring consultants or accountants will be costly and there is potential for unexpected extra costs if modifications or updates need to be made to the plan. 

Furthermore, entrepreneurs who outsource their distribution company's plan have less control over the outcome of the project than if they had written it themselves. 

Finally, not all consultants have experience with business planning related to distribution companies and may not possess the same level of expertise as an entrepreneur who is very familiar with their industry. 

Use an online business plan software for your distribution company's business plan

Another alternative is to use online business plan software . There are several advantages to using specialised software:

• You are guided through the writing process by detailed instructions and examples for each part of the plan 
• You can be inspired by already written business plan templates 
• You can easily make your financial forecast by letting the software take care of the financial calculations for you, without error
• You get a professional document, formatted and ready to be sent to your bank
• You can easily update your financial forecast and track it against actual financial performance to see where the business stands

If you're interested in using this type of solution, you can try our software for free by signing up here . 

We hope that this article has helped you to better understand how to write the business plan for a distribution company. Do not hesitate to contact us if you still have questions!

Also on The Business Plan Shop

• Do I need a business plan? Your questions answered
• Business Model vs. Business Plan
• How to write the business plan for a grant application?

Know someone in the distribution industry? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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DISTRIBUTION STRATEGY

The big picture on distribution strategy.

Distribution models drive the economics and growth potential of companies.

Many companies are innovating through low-cost and viral digital and online distribution channels.

In most industries, some company is compressing the value chain by going direct...shouldn't it be you?

When growing distribution, focus on alignment and synergy with other business model elements.

THERE ARE 3 MAIN DISTRIBUTION STRATEGIES

Distribution is how a business makes its value proposition available to customers. There are three main distribution strategies:

1. Direct - company-owned channels

2. Indirect - 3rd party channels

3. Hybrid - both company-owned & 3rd party

Direct distribution is about company-owned channels, which could include a company's website, contact center, sales team , retail, and office locations. Indirect distribution is about intermediaries such as distributors, agents, brokers, online-only and omnichannel retailers, value-added resellers, partners , and franchisees. Hybrid distribution utilizes both direct and indirect channels.

1. Going Direct - Customer Experience & Economics

More and more companies are moving from indirect distribution to direct or hybrid distribution. These companies want to lower costs and pricing by compressing the value chain while owning the customer experience and relationship.

Companies with direct distribution remove an often expensive intermediary from the value chain. Much of traditional retail utilizes keystone pricing (100% markup, $10 factory cost translates to $20 wholesale, which translates to $40 retail). By going direct, a company can take that $10 product and price it at $25 or $30, while making much more in gross margin. The first retail direct distribution innovators were back in the 70s with the likes of The Gap, Victoria's Secret, and other vertically integrated retailers. Today companies like Anker (power packs) and Vice (golf balls) are utilizing direct and low-capital, low-cost online channels to disrupt their markets .

Direct distribution also gives the company ownership to craft and manage their customer experience and relationship, which drives conversion, and loyalty and is crucial for complex sales, and innovative products and services. Apple took the world by storm by going direct with Apple Stores, and Tesla did the same when they rolled out Tesla showrooms in high-traffic malls. Both Tesla and Apple differentiated themselves from their competition by owning their customer experience and relationship, while also benefiting from compressing their value chain.

Pretty much every industry has innovators leveraging direct distribution to improve the customer experience and relationship, cost and pricing economics , and overall agility. If your business isn't direct, it may be time to try and figure it out.

2. Indirect Distribution - Efficiently Scaling

A company with indirect distribution, partners with 3rd parties to sell and fulfill a company’s value proposition. These 3rd parties can be retailers, value-added resellers (VARs), partners, franchisees, distributors, and brokers. For many industries, such as the beverage industry (Coke, Pepsi), the norm is to leverage indirect distribution, in the form of distributors, supermarkets, convenience stores, vending machines, and restaurants. Even in a predominately indirect distribution industry, such as beverages, there are always players looking to take out middlemen, such as Trader Joe's, an entire grocery retailer that only sells its own brands.

Companies often utilize indirect distribution to focus on their core competencies , while gaining access to customers by leveraging channel partners. A company with indirect distribution gives up margin to channel partners but saves on the costs and capital necessary to go direct. For a company leveraging indirect distribution, the key to growing sales is to drive better value and economics for channel partners than the competition . For retailers, it is driving superior gross margin dollars per square foot. For VARs, it is total sales and margin versus the cost of sales.

If your company primarily leverages indirect distribution, deeply understand players that are going direct, because they are most likely changing the industry dynamics through better economics and more consistent and elevated customer experiences.

3. Hybrid - Almost the Best of Both Worlds

Many companies have a hybrid distribution model, utilizing both 3rd party and direct channels to sell and fulfill their value proposition . With hybrid distribution, companies get the broad distribution of indirect channels, while owning the customer experience and expanding margin through their direct channels.

Nike is a great example of a hybrid distribution model. Nike sells in tens of thousands of 3rd party stores and retailers across the world. Yet, in 2017, direct channels, including Nike.com, and more than 1000 flagship and outlet stores accounted for  28% of Nike's total sales versus 10% in 2010. And, Nike is differentiating their direct channels with personalized Nike ID shoes, exclusive styles, and the broadest selection. Not only are they owning the customer experience, relationship, and data through direct channels, but they

Nike has a hybrid distribution model. Nike sells in tens of thousands of 3rd party stores and retailers across the world. Nike also has direct channels, including Nike.com, and more than 1000 flagship and outlet stores accounted for 28% of Nike's total sales in 2017 versus 10% in 2010. Nike is differentiating their direct channels with personalized Nike ID shoes, exclusive styles, and the broadest selection. Nike is heavily investing in their direct channels because they own the customer experience and make 2-3X in gross margin on each pair of shoes they sell directly versus indirectly. Nike sells a pair of shoes that cost $20 to the manufacturer to a retailer for $40, and the retailer marks it up to $80 to the customer. In this example, Nike would make $20 on the shoes, but if they sell them on Nike.com for $80, then they would make $60 in margin on the shoes. This margin expansion is a big reason why more companies are going direct.

The one longer-term potential disadvantage of a hybrid model is that a direct distribution model could come in and structurally undercut the pricing of the industry.

If you are looking for a business coach to collaborate on your distribution strategy, set up some on-demand one-on-one time with Joe Newsum , the creator of this content and a McKinsey alum

DISRUPTIVE DISTRIBUTION MODELS

Disruptive distribution models are becoming more and more central to the core strategy of companies. Think about Southwest, which doesn’t sell tickets through Expedia, Priceline, and travel agents, but only on southwest.com and 1-800-I-FLY-SWA. Tesla has redefined car retailing with showrooms in shopping malls, bypassing typical dealer networks. Apple wanted to give customers the ultimate showroom to showcase their new products and opened the most productive and profitable retail store network in the world.

Maybe your distribution model is what it is, and you have to follow what the industry does. Though, given the reach and innovation of online distribution models, and what other competitors might be doing in innovating their distribution model, it may make sense to reexamine your distribution model and take some time to think through if you have the right distribution model for your situation or you need to innovate .

In 2012, Dollar Shave Club took the world by storm through distribution innovation. Michael Dubin, the founder of Dollar Shave Club, identified the age-old problem that, " razors are really expensive in the store. It's a frustrating experience to go and buy them. You have to drive there. You have to park your car. You have to find the razor fortress. It's always locked. You have to find the guy with the key. He's always doing something else that he doesn't want to be helpful."

At the time, the razor market was on the plateau of its adoption curve , and was a typical mature market two-company race, with Gillette owning 80% of the market and Schick a distant second. In 2012, a Gillette Fusion ProGlide blade would have set you back a cool $4. So, when Dollar Shave Club, comes out of nowhere with the coolest bootstrapped $4,500 viral ad to ever hit Youtube, promising "F**cking Great" blades for $1 a month, customers loved the value proposition. Within two days of the viral video, Michael's team racked up 12,000 orders and ran out of supply.

At the heart of Dollar Shave Club's value proposition is the cost savings that are passed on to the customer from disintermediating traditional shaving industry distribution of retail stores. Then add on the cost savings of bypassing traditional marketing for cost-effective viral marketing , and you can start to understand the $1 a month for blades value proposition.

The value proposition and go-to-market were so strong that Dollar Shave Club grew to $65 million in revenue in two years, and in five years had 8% of the market and $240 million in revenue. In 2016, Unilever bought Dollar Shave Club for $1 billion.

The Big Decision - Which Distribution Model?

When expanding, think about distribution models, direct distribution growth strategy.

If you have direct distribution, then you need to focus on the strategies for your direct channels, which may include a website, contact center(s), sales staff, and locations. Your direct channels are an integral part of your overall customer funnel. You drive revenue growth by increasing and accelerating awareness, consideration, conversion, loyalty (repeat business), and advocacy . Understanding where your customer funnel excels and lags is critical to prioritizing investments. Read up on developing and executing a great sales strategy and marketing strategy . Furthermore, there are the foundational operations and IT strategies necessary to drive efficient and effective execution within your website and contact centers.

If you have locations, then you have three options to grow:

1. Optimize Locations

2. Grow the Number of Locations

3. Rationalize Locations

Optimizing locations involves driving revenue per location through operational and service excellence, new leadership , remodeling, and improving sales and marketing. For growing the number of locations, leverage the geographic strategy module to understand how to choose the right geographies to expand into that are aligned with your targets and economics. While rationalizing locations is often necessary to shed unprofitable and non-aligned locations from the portfolio.

INDIRECT DISTRIBUTION GROWTH STRATEGY

3 main options to grow indirect distribution.

There are three main ways to grow revenue with 3rd party channel partners, 1. Optimize, 2. Grow Points of Distribution, and 3. Rationalize. 

1. Optimize – Increase sales within existing channels by improving the value proposition, customer journey, marketing, and sales

2. Grow Points of Distribution – Increase the total number of productive points of distribution (e.g., channel partners, stores)

3. Rationalize – Shed points of distribution that are non-productive, or are not aligned with the brand, customers, markets, or other business model elements

1. Optimize Channel Partners

In the end, the relationship between a company and its channel partners always comes down to value. The more value a company can drive through a channel partner, the more the channel partner will focus on the company. Channel partnerships are co-dependent relationships. Similar to the overall business model strategy , it is crucial to differentiate the customer value proposition and amplify the sales and marketing strategies within a channel partner while providing them with efficient processes and operations.

So, when thinking about growing sales within existing channel partners, answer the following questions :

How can you differentiate your value proposition with and improve the overall economics for your distribution partners?

What marketing campaigns and strategies will drive volume for your distribution partners?

What sales support strategies will drive velocity and conversion in your channel partners' sales cycles?

What processes need improvement to better support channel partner growth and satisfaction?

1. Optimize : Utilize a Partner Growth Plan

2. grow points of distribution, 3. rationalize channel partners, putting it all together in a plan.

Distribution is a critical growth element of any business model. Whether you rely on direct, indirect or hybrid distribution, it is important to develop a strong distribution strategy to focus the execution of the teams.

If you would like to talk to an expert about your distribution strategy, set up some time with Joe Newsum , a McKinsey Alum with significant experience with distribution strategy.

download the distribution strategy worksheets & templates

To get you started on creating a killer distribution strategy, download the free PowerPoint Distribution Strategy Worksheets & Templates, which includes:

1. Distribution Partner Growth Plan 2. Distribution Partner Assessment Matrix 3. Distribution Growth Strategy One-Pager

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Distribution Plan

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Do you ever wonder how your favorite products get from the factory to your doorstep? Or how do businesses decide which stores to sell their products in? 

Well, that’s where a distribution plan comes in! 

A distribution plan is like a roadmap that helps businesses get their products to the right customers, at the right time, and in the right place. Without a solid distribution plan, businesses can struggle to get their products in front of potential customers and can lose out on valuable sales. 

In this post, we’ll dive into the world of distribution planning and explore the key components and best practices for creating a successful plan.

Shall we start?

What is a distribution plan?

A distribution plan is a detailed strategy that outlines the steps required to move a product or service from production to the final customer. It includes logistics, channels of distribution, market research, budget, metrics, and review and adjustment. 

The distribution plan’s benefit is that it aids companies in effectively targeting their target market while maximizing resource allocation. The timely and affordable delivery of goods or services to customers boosts customer satisfaction and boosts corporate revenues thanks to a well-planned distribution plan.

Without a distribution plan, businesses can find it difficult to provide goods or services to clients, which could harm their reputation and reduce their profitability. Each business that wants to be successful and continue to be competitive and meet customer demand must have a distribution plan.

Creating a distribution plan

Now that you have a solid idea of what a distribution plan is, let’s go into the procedures and pointers for developing a distribution strategy that benefits your company.

• Understand your target audience needs: Identify and comprehend the target group’s particular requirements and preferences .
• Determine logistics: Find the most efficient and affordable way to transport the good or service from the point of production to the consumer or end-user.
• Choose distribution channels: Choose the finest distribution channels for reaching clients, including direct sales, online sales, retail stores, wholesalers, and distributors.
• Conduct market research: Identify the most efficient ways to reach potential customers by conducting market research to better understand consumer preferences and purchasing patterns.
• Develop a budget: Prepare a budget that accounts for all expenses related to the distribution plan, such as marketing, publicity, logistics, and transportation.
• Set performance metrics: Specify performance indicators, such as customer satisfaction, sales volume, and market share, to gauge how well the distribution plan is working.
• Evaluate and modify your plan: Assess the distribution plan on a regular basis and make revisions in response to shifting market conditions, client demands, and other elements that could affect the plan’s success.

Best practices for creating a successful distribution plan

Creating a successful distribution plan requires a combination of strategic thinking, market knowledge, and operational efficiency. Here are some best practices for creating a successful distribution plan:

• Focus on the customer: Make sure your distribution plan is centered around meeting the needs and preferences of your target customers.
• Be flexible and adaptable: Be prepared to adjust your plan based on changing market conditions, customer needs, and other factors that may impact your distribution strategy.
• Collaborate with partners: Work closely with suppliers, distributors, and other partners to ensure that all aspects of the distribution plan are aligned and optimized.
• Use technology to optimize logistics: Leverage technology solutions to streamline logistics, improve inventory management, and reduce costs.
• Continuously monitor and evaluate performance: Regularly review performance metrics and use data insights to optimize your distribution plan.
• Stay up to date on market trends and competition: Keep a close eye on industry trends and your competitors to stay ahead of the curve and remain competitive.

Final Thoughts

In order to get your goods or services into the hands of your clients, you need a distribution plan. By making the most of your resources to the fullest extent possible and routinely modifying your plans, you can boost your business sales and remain competitive.

It’s essential to spend the required time developing a solid distribution plan that meets the objectives of your business and delivers your products to your target market. Start today and see the results for yourself!

Frequently Asked Questions

A distribution plan outlines the steps required to move a product or service from production to the final customer, ensuring that the right product is delivered to the right place, at the right time, and in the right condition.

To design a distribution strategy, you must first identify your target audience and their demands, as well as the most effective logistics, distribution channels, and market research. You should also develop a budget, establish performance criteria, and periodically evaluate and tweak the plan.

Understanding consumer preferences and purchasing patterns can help firms make decisions regarding the distribution channels to use and the best ways to manage logistics.

The success of a distribution plan can be evaluated using performance indicators including customer satisfaction, sales volume, and market share.

It’s critical to periodically assess and modify your distribution plan in light of evolving market conditions, client demands, and other elements that could affect the plan’s effectiveness.

Businesses may optimize logistics, enhance inventory management, and cut expenses with the aid of technological solutions including inventory management systems, transportation management systems, and analytics tools.

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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.

• Hospitality Industry
• What is a distribution strategy?

Q : What is a distribution strategy?

The ways in which businesses get their products and services to customers continue to rapidly evolve. An effective distribution strategy is critical for any business looking to get its products or services to customers efficiently. With 91% of companies reporting their distribution strategy as a key factor impacting overall performance, defining the right strategy for your business has never been more important. An effective strategy considers factors like customer demographics, buying journeys, and emerging booking platforms.

In this comprehensive guide, we'll cover everything you need to know about distribution strategies.

By the end, you will know what a distribution strategy is and have the knowledge to create an optimized distribution approach to maximize reach, boost revenue, and enhance the customer experience.

What is distribution strategy?

A distribution strategy refers to the methods and channels a company uses to deliver its products or services from the point of production to the end consumer. The overarching goal is to move inventory as efficiently as possible while delivering the best possible customer experience.

Distribution strategies encompass the channels, outlets, and intermediaries utilized to physically transport goods along the supply chain. They also incorporate digital components like e-commerce platforms where transactions occur.

An effective distribution strategy aligns with a company's target audience, business model, product offerings, and growth objectives. It encompasses every touchpoint along the path to purchase - how inventory gets stored, processed, transported, tracked, and sold.

In 2022, global spend on distribution services reached over $2 trillion , highlighting the massive scale and importance of optimizing distribution operations.

Why is a distribution strategy important?

There are several key reasons why defining and optimizing your distribution strategy is essential:

• Increased efficiency and cost savings: The right distribution model minimizes unnecessary steps in the supply chain, eliminates waste, and consolidates processes for significant cost savings. Efficient routes and channels allow businesses to get products to market faster. Inventory tracking provides visibility to optimize production schedules. Shared distribution centers with partners streamline operations.
• Improved customer experience: Seamless omni-channel distribution creates a unified brand experience for customers across all touchpoints, whether online or offline. Fast, reliable fulfillment with transparent tracking improves satisfaction. Options for in-store pickup or returns enhance convenience.
• Expanded market reach & revenue growth: Unique distribution strategies help businesses access new geographical territories, demographics, and partnerships. Multi-channel distribution provides more opportunities to promote products and generate sales across different platforms. The resulting boost in market share directly translates to higher revenues.

Well-designed distribution strategies that align with customer preferences and business capabilities drive key benefits for organizations not limited to those listed above.

What's new in distribution strategies?

Several evolving factors now shape distribution strategies, including:

• Rise of e-commerce and omnichannel retail: Online shopping continues its meteoric rise, with e-commerce sales expected to reach $7.4 trillion globally by 2025 , representing nearly 22% of total retail sales according to Statista.

Leading omnichannel retailers seamlessly integrate online and brick-and-mortar channels to give customers ultimate choice and convenience. Many purely digital brands also now open physical locations to create immersive branded experiences.

• Sustainability priorities: Consumers and governments alike prioritize sustainability , from eco-friendly shipping materials to reduced carbon emissions. Brands increasingly track and report on sustainability metrics while optimizing logistics for green operations.
• Advanced supply chain technology: Innovations like blockchain, AI, robotics, and self-driving vehicles enable unprecedented supply chain transparency, efficiency, and flexibility.
• Faster fulfillment: Customer expectations for rapid delivery rise by the day. Cutting-edge companies implement systems for one-day, same-day, or even one-hour shipping by leveraging distribution centers in urban areas.

Types of distribution strategies

Businesses design distribution strategies by selecting among several fundamental types:

1. Direct distribution

Selling directly to the end consumer through owned e-commerce channels. Examples include company websites, mobile apps, brick-and-mortar locations, pop-up shops, or catalog/TV sales.

This is the strategy where a customer books a hotel room directly through your hotel website. This tends to happen with loyal customers who know your hotel well and are returning.

2. Indirect distribution

Selling through third-party resellers or intermediaries. Examples include retailers, distributors, wholesalers, and online marketplaces like Amazon or restaurant delivery platforms.

This is a long distribution channel with numerous layers. There could be various third parties between the customer and your hotel. For example, a leisure traveler's distribution channel may go through a wholesaler and a tour operator, or an online travel agency and an affiliate online travel agency. A business traveler's channel may include a DHISCO switch, a global distribution system, and a corporate self-booking channel.

3. Intensive distribution

Intensive distribution focuses on high availability above all else. Products display through every possible sales channel from big box stores to independent shops. High ubiquity suits low-cost impulse purchases.

Candy bars, snacks, soft drinks, and daily newspapers commonly utilize intensive distribution at convenient locations like supermarkets, newsstands, convenience stores, and pharmacies. Hospitality examples include pamphlet racks showcasing local attractions in hotel lobbies.

4. Selective distribution

Selective distribution strikes a balance between intensive and exclusive distribution. It places goods in multiple sales venues but exercises control over specific retailers and locations to align with brand positioning.

Selective distribution works well for mid-range fashion apparel labels only carried by department stores also selling similar moderately-priced merchandise. Boutique hotels may choose selective strategies partnering with independent and niche travel agencies resonating with their unique value proposition over mass-market players.

5. Exclusive distribution

Exclusive distribution strictly limits sales channels, typically to a single outlet. The severe constraints on product access enhance perceptions of prestige and reinforce premium pricing.

Ultra-high-end fashion houses only sell the latest designer collections through their flagship boutiques in fashion capitals around the world. Small luxury hotels may choose to exclusively sell suites and villas solely through their on-site reservation team to provide white-glove service.

6. Hybrid distribution

Many leading companies employ hybrid distribution encompassing multiple strategies to serve diverse target customer groups.

A luggage brand may use exclusive distribution for its luxury bespoke line only available in its stores. The mid-tier line appeals through national chains and independent luggage shops reflecting a selective model. Entry-level products are displayed via intensive distribution in big box retailers maximizing market reach.

7. Dual distribution

Dual distribution combines direct and wholesale approaches. Companies build retailer partnerships while also operating their brick-and-mortar locations and e-commerce storefronts.

Athletic shoemaker On Running opened its first On Experience Shop in 2021 and continues expanding its corporate retail presence. At the same time, they expanded U.S. wholesaler coverage by over 25% to extend availability. Dual distribution allows direct-to-consumer brand control while leveraging wholesaler infrastructure.

8. Omnichannel distribution

Omnichannel distribution seamlessly blends online and offline routes to put the right products where customers want them.

Beauty giant Sephora provides a prime example spanning over 2,700 retail locations, e-commerce storefronts, social shopping integrations, mobile app features, and in-store digital experiences. Regardless of channel, customers access the same selection with consistent promotions as part of their top-ranked loyalty program. Sephora also leverages distribution for sustainability through eco-packaging and fair labor certification initiatives.

9. Reverse distribution

While less common, reverse distribution continues growing as companies accept product returns, recycling, and refurbishment channels.

Outdoor apparel maker Patagonia operates the largest garment repair facility in North America. Customers can mail back damaged products from anywhere for free repairs extending useful product life, thus reducing environmental impacts.

Key distribution strategy components

With the landscape evolving, best-in-class distribution strategies now incorporate:

• Omnichannel presence
• Hyperlocal delivery options
• Heavy focus on sustainability
• High-tech supply chain innovations
• Premium customer experience

Let's explore each area more deeply.

1. Omnichannel presence

Leading companies meet customers everywhere they shop, both online and offline. Key omnichannel components include:

• E-commerce website and mobile apps
• Owned brick-and-mortar locations
• External brick-and-mortar partners
• Social commerce integrations

They unite these channels through shared inventory, universal pricing, omnichannel promotions, and top-notch post-purchase customer service.

Starbucks demonstrates omnichannel excellence across pickup, delivery, brick-and-mortar, and drive-thru options. Customers place orders online for in-store pickup or delivery and earn Stars loyalty points they can redeem across channels.

2. Hyperlocal delivery

On-demand delivery gains immense traction, with a full 50% of customers expecting 2-hour shipping availability according to a Walker Sands study.

Leaders now offer customers multiple ultra-fast delivery options, enabled by hyperlocal infrastructure:

• Micro-fulfillment centers in urban areas
• Dark stores solely for digital order fulfillment
• Partnerships with on-demand and gig delivery companies
• Utilization of smart lockers and in-store pickup
• Autonomous robots and vehicles for last-mile transportation

For example, Target recently announced plans to expand the number of sortation centers dedicated to online order fulfillment. By siting facilities closer to population centers, routine purchases can rapidly reach local customers.

3. Sustainable distribution

With sustainability driving consumer purchasing , manufacturers must minimize environmental impacts at every link along distribution channels.

• Optimizing modes and routes cuts carbon emissions from transportation. Electric vehicles increasingly transfer goods between hubs.
• Packaging materials shift toward renewables like plant fibers in place of plastics. Containers make use of recycled materials.
• Facilities implement eco-friendly waste, water, and energy systems. Solar panels, for example, power warehouses and fulfillment centers.
• Companies track and share data on sustainability KPIs with consumers and governments seeking quantitative insights.
• UK food delivery service Deliveroo details strong sustainable distribution commitments like becoming the first carbon-neutral delivery company globally.

4. Advanced supply chain technology

Technology unlocks game-changing supply chain advancements:

• Internet of Things (IoT) sensors enable real-time visibility into inventory levels, product locations, and transportation conditions to optimize planning.
• Artificial intelligence predicts spikes in demand to align production, inventory, and delivery capacity.
• Blockchain establishes trusted, transparent records of exchanges across end-to-end distribution.
• Autonomous warehouse robots pick, pack, and sort items faster and more accurately.
• Machine learning optimizes delivery routes and models projected arrival times.

Fashion label Guess incorporates RFID sensors into clothing tags to continuously track goods flowing through its highly automated distribution centers.

5. Premium customer experiences

With expanded access to products, customer experience now determines buyer loyalty. Elements include:

• User-friendly e-commerce sites and apps offering intuitive navigation, rich product information like 3D images, virtual try-on tools, and easy checkout
• In-store experiences that entertain or educate while allowing customers to personally test products
• Top-notch post-purchase customer service and streamlined returns processes
• Value-added services like alteration support and virtual interior design consultations
• Loyalty programs providing personalized recommendations and perks

Athletic footwear retailer GOAT provides premier user experiences online and in person. Their mobile app and website simplify browsing massive product selection and ordering high-demand sneaker styles. Brick-and-mortar GOAT Select stores in top markets also allow customers to see hot releases up close while checking out other exclusive adult and kids' apparel.

Here are some secrets to help you decode customer delight.

Hotel distribution strategy elements

While distribution strategies apply across industries, hotels possess some unique considerations given the experiential nature of the product.

Key elements of hotel distribution include:

Direct bookings: Travelers who book directly through hotel websites and loyalty apps typically offer higher lifetime value thanks to valuable first-party guest data capture, opportunities for personalized marketing, and excluded third-party commissions.

Global distribution systems: Large Global Distribution Systems (GDSs) like Sabre, Travelport, and Amadeus provide listings visible to millions of travel agents. Given its substantial subscriber base, GDS's presence remains essential for capturing bookings.

Online travel agencies: Expedia, Booking.com, TripAdvisor, and scores of other OTAs steer massive transaction volumes to hoteliers. However, commission fees ranging from 15-30% significantly erode net revenue. Large hotels increasingly encourage direct bookings over OTA usage to improve profit per stay.

Metasearch engines: Metasearch sites like Trivago, Kayak, and TripAdvisor's hotel search function allow users to view rates across multiple booking sites. The model earns metasearch companies' pay-per-click fees from hotels and OTAs. While beneficial for shoppers, metasearch further dilutes commissions.

Select alternative accommodations platforms: To expand market reach, some hotel brands list rooms on daily rental platforms like Airbnb that enable access to leisure and long-staying travelers. They may promote a limited inventory of apartment-style suites not cannibalizing traditional room bookings.

Optimizing hotel distribution requires balancing channels to capture high-value bookings while minimizing customer acquisition costs. An omnichannel presence creates multiple booking avenues while incentives encourage direct reservations.

Sustainable lodging distribution: Hotel distribution strategies also now address sustainability values held by modern travelers. Initiatives include:

• Partnerships with eco-conscious rideshare services, tour providers, and attraction vendors
• Promotion of location walkability, public transit access, and on-site electric vehicle charging
• Messaging on internal sustainability practices like water and energy conservation, waste reduction, and community engagement

Who are the actors of distribution strategy?

There can be many actors within a hotel distribution strategy. These include your hotel website for direct bookings, global distribution systems, and online travel agents and metasearch. The size of the distribution channel and number of actors involved can vary with the type of strategy.

Hotel distribution helps you create a method for selling hotel rooms , which you determine by analyzing costs of each distribution channel for selling hotel rooms. Finding the right distribution channels and choosing the most cost-effective ones at high-demand times will help you determine when to sell rooms and through which channels to improve profits. Nonetheless, cost is not the only factor. You may also consider the type of hotel, your customer base and where your base tends to book hotel rooms.

The innovator's edge in hospitality distribution

True innovation combines digital capabilities with human insight. As omnichannel models evolve, hospitality leaders should remain fixated on understanding customer needs and desires to provide meaningful value.

Those who leverage technology to forge emotional connections, deliver personalization, and ignite passion for their brands will surely thrive in the years ahead.

Future success goes to bold organizations that reimagine distribution with the guest at the center.

Stay ahead of the curve

Distribution channels and technologies will continue advancing exponentially in the coming years. Companies must actively track emergent innovations while doubling down on digital capabilities and sustainable practices customers increasingly demand.

To stay ahead of the curve, ask yourself these key questions:

• How can technology be intelligently integrated across channels to enable seamless guest experiences?
• Where are potential friction points in getting offerings to patrons in hospitality settings?
• How can partnerships enhance market exposure and order fulfillment speed?
• What smart logistic adjustments ensure reliable, environmentally sound delivery?
• How might virtual and augmented reality enhance guest connections in their journey?

When you start to answer these questions in relation to your hospitality business you will uncover some opportunities to get ahead of the curve by enhancing your distribution strategy and increasing your revenue.

Consultant at EHL Advisory Services

Keep reading

Navigating challenges of AI and maximizing value in the service sector

Apr 16, 2024

11 essential hospitality skills for career success (& resume tips)

Apr 15, 2024

Unlocking AI in Hospitality SMEs: Q&A with Ian Millar

Apr 11, 2024

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24 of My Favorite Sample Business Plans & Examples For Your Inspiration

Published: February 06, 2024

I believe that reading sample business plans is essential when writing your own.

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As you explore business plan examples from real companies and brands, it’s easier for you to learn how to write a good one.

But what does a good business plan look like? And how do you write one that’s both viable and convincing. I’ll walk you through the ideal business plan format along with some examples to help you get started.

Table of Contents

Business Plan Format

Business plan types, sample business plan templates, top business plan examples.

Ask any successful sports coach how they win so many games, and they’ll tell you they have a unique plan for every single game. To me, the same logic applies to business.

If you want to build a thriving company that can pull ahead of the competition, you need to prepare for battle before breaking into a market.

Business plans guide you along the rocky journey of growing a company. And if your business plan is compelling enough, it can also convince investors to give you funding.

With so much at stake, I’m sure you’re wondering where to begin.

Free Business Plan Template

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• Outline your idea.
• Pitch to investors.
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You're all set!

Click this link to access this resource at any time.

Fill out the form to get your free template.

First, you’ll want to nail down your formatting. Most business plans include the following sections.

1. Executive Summary

I’d say the executive summary is the most important section of the entire business plan. 

Why? Essentially, it's the overview or introduction, written in a way to grab readers' attention and guide them through the rest of the business plan. This is important, because a business plan can be dozens or hundreds of pages long.

There are two main elements I’d recommend including in your executive summary:

Company Description

This is the perfect space to highlight your company’s mission statement and goals, a brief overview of your history and leadership, and your top accomplishments as a business.

Tell potential investors who you are and why what you do matters. Naturally, they’re going to want to know who they’re getting into business with up front, and this is a great opportunity to showcase your impact.

Need some extra help firming up those business goals? Check out HubSpot Academy’s free course to help you set goals that matter — I’d highly recommend it

Products and Services

To piggyback off of the company description, be sure to incorporate an overview of your offerings. This doesn’t have to be extensive — just another chance to introduce your industry and overall purpose as a business.

In addition to the items above, I recommend including some information about your financial projections and competitive advantage here too.:

Keep in mind you'll cover many of these topics in more detail later on in the business plan. So, keep the executive summary clear and brief, and only include the most important takeaways.

Executive Summary Business Plan Examples

This example was created with HubSpot’s business plan template:

This executive summary is so good to me because it tells potential investors a short story while still covering all of the most important details.

Image Source

Tips for Writing Your Executive Summary

• Start with a strong introduction of your company, showcase your mission and impact, and outline the products and services you provide.
• Clearly define a problem, and explain how your product solves that problem, and show why the market needs your business.
• Be sure to highlight your value proposition, market opportunity, and growth potential.
• Keep it concise and support ideas with data.
• Customize your summary to your audience. For example, emphasize finances and return on investment for venture capitalists.

Check out our tips for writing an effective executive summary for more guidance.

2. Market Opportunity

This is where you'll detail the opportunity in the market.

The main question I’d ask myself here is this: Where is the gap in the current industry, and how will my product fill that gap?

More specifically, here’s what I’d include in this section:

• The size of the market
• Current or potential market share
• Trends in the industry and consumer behavior
• Where the gap is
• What caused the gap
• How you intend to fill it

To get a thorough understanding of the market opportunity, you'll want to conduct a TAM, SAM, and SOM analysis and perform market research on your industry.

You may also benefit from creating a SWOT analysis to get some of the insights for this section.

Market Opportunity Business Plan Example

I like this example because it uses critical data to underline the size of the potential market and what part of that market this service hopes to capture.

Tips for Writing Your Market Opportunity Section

• Focus on demand and potential for growth.
• Use market research, surveys, and industry trend data to support your market forecast and projections.
• Add a review of regulation shifts, tech advances, and consumer behavior changes.
• Refer to reliable sources.
• Showcase how your business can make the most of this opportunity.

3. Competitive Landscape

Since we’re already speaking of market share, you'll also need to create a section that shares details on who the top competitors are.

After all, your customers likely have more than one brand to choose from, and you'll want to understand exactly why they might choose one over another.

My favorite part of performing a competitive analysis is that it can help you uncover:

• Industry trends that other brands may not be utilizing
• Strengths in your competition that may be obstacles to handle
• Weaknesses in your competition that may help you develop selling points
• The unique proposition you bring to the market that may resonate with customers

Competitive Landscape Business Plan Example

I like how the competitive landscape section of this business plan below shows a clear outline of who the top competitors are.

It also highlights specific industry knowledge and the importance of location, which shows useful experience in this specific industry. 

This can help build trust in your ability to execute your business plan.

Tips for Writing Your Competitive Landscape

• Complete in-depth research, then emphasize your most important findings.
• Compare your unique selling proposition (USP) to your direct and indirect competitors.
• Show a clear and realistic plan for product and brand differentiation.
• Look for specific advantages and barriers in the competitive landscape. Then, highlight how that information could impact your business.
• Outline growth opportunities from a competitive perspective.
• Add customer feedback and insights to support your competitive analysis.

4. Target Audience

Use this section to describe who your customer segments are in detail. What is the demographic and psychographic information of your audience?

If your immediate answer is "everyone," you'll need to dig deeper. Here are some questions I’d ask myself here:

• What demographics will most likely need/buy your product or service?
• What are the psychographics of this audience? (Desires, triggering events, etc.)
• Why are your offerings valuable to them?

I’d also recommend building a buyer persona to get in the mindset of your ideal customers and be clear on why you're targeting them.

Target Audience Business Plan Example

I like the example below because it uses in-depth research to draw conclusions about audience priorities. It also analyzes how to create the right content for this audience.

Tips for Writing Your Target Audience Section

• Include details on the size and growth potential of your target audience.
• Figure out and refine the pain points for your target audience , then show why your product is a useful solution.
• Describe your targeted customer acquisition strategy in detail.
• Share anticipated challenges your business may face in acquiring customers and how you plan to address them.
• Add case studies, testimonials, and other data to support your target audience ideas.
• Remember to consider niche audiences and segments of your target audience in your business plan.

5. Marketing Strategy

Here, you'll discuss how you'll acquire new customers with your marketing strategy. I’d suggest including information:

• Your brand positioning vision and how you'll cultivate it
• The goal targets you aim to achieve
• The metrics you'll use to measure success
• The channels and distribution tactics you'll use

I think it’s helpful to have a marketing plan built out in advance to make this part of your business plan easier.

Marketing Strategy Business Plan Example

This business plan example includes the marketing strategy for the town of Gawler.

In my opinion, it really works because it offers a comprehensive picture of how they plan to use digital marketing to promote the community.

Tips for Writing Your Marketing Strategy

• Include a section about how you believe your brand vision will appeal to customers.
• Add the budget and resources you'll need to put your plan in place.
• Outline strategies for specific marketing segments.
• Connect strategies to earlier sections like target audience and competitive analysis.
• Review how your marketing strategy will scale with the growth of your business.
• Cover a range of channels and tactics to highlight your ability to adapt your plan in the face of change.

6. Key Features and Benefits

At some point in your business plan, you'll need to review the key features and benefits of your products and/or services.

Laying these out can give readers an idea of how you're positioning yourself in the market and the messaging you're likely to use. It can even help them gain better insight into your business model.

Key Features and Benefits Business Plan Example

In my opinion, the example below does a great job outlining products and services for this business, along with why these qualities will attract the audience.

Tips for Writing Your Key Features and Benefits

• Emphasize why and how your product or service offers value to customers.
• Use metrics and testimonials to support the ideas in this section.
• Talk about how your products and services have the potential to scale.
• Think about including a product roadmap.
• Focus on customer needs, and how the features and benefits you are sharing meet those needs.
• Offer proof of concept for your ideas, like case studies or pilot program feedback.
• Proofread this section carefully, and remove any jargon or complex language.

7. Pricing and Revenue

This is where you'll discuss your cost structure and various revenue streams. Your pricing strategy must be solid enough to turn a profit while staying competitive in the industry. 

For this reason, here’s what I’d might outline in this section:

• The specific pricing breakdowns per product or service
• Why your pricing is higher or lower than your competition's
• (If higher) Why customers would be willing to pay more
• (If lower) How you're able to offer your products or services at a lower cost
• When you expect to break even, what margins do you expect, etc?

Pricing and Revenue Business Plan Example

I like how this business plan example begins with an overview of the business revenue model, then shows proposed pricing for key products.

Tips for Writing Your Pricing and Revenue Section

• Get specific about your pricing strategy. Specifically, how you connect that strategy to customer needs and product value.
• If you are asking a premium price, share unique features or innovations that justify that price point.
• Show how you plan to communicate pricing to customers.
• Create an overview of every revenue stream for your business and how each stream adds to your business model as a whole.
• Share plans to develop new revenue streams in the future.
• Show how and whether pricing will vary by customer segment and how pricing aligns with marketing strategies.
• Restate your value proposition and explain how it aligns with your revenue model.

8. Financials

To me, this section is particularly informative for investors and leadership teams to figure out funding strategies, investment opportunities, and more.

 According to Forbes , you'll want to include three main things:

• Profit/Loss Statement - This answers the question of whether your business is currently profitable.
• Cash Flow Statement - This details exactly how much cash is incoming and outgoing to give insight into how much cash a business has on hand.
• Balance Sheet - This outlines assets, liabilities, and equity, which gives insight into how much a business is worth.

While some business plans might include more or less information, these are the key details I’d include in this section.

Financials Business Plan Example

This balance sheet is a great example of level of detail you’ll need to include in the financials section of your business plan.

Tips for Writing Your Financials Section

• Growth potential is important in this section too. Using your data, create a forecast of financial performance in the next three to five years.
• Include any data that supports your projections to assure investors of the credibility of your proposal.
• Add a break-even analysis to show that your business plan is financially practical. This information can also help you pivot quickly as your business grows.
• Consider adding a section that reviews potential risks and how sensitive your plan is to changes in the market.
• Triple-check all financial information in your plan for accuracy.
• Show how any proposed funding needs align with your plans for growth.

As you create your business plan, keep in mind that each of these sections will be formatted differently. Some may be in paragraph format, while others could be charts or graphs.

The formats above apply to most types of business plans. That said, the format and structure of your plan will vary by your goals for that plan. 

So, I’ve added a quick review of different business plan types. For a more detailed overview, check out this post .

1. Startups

Startup business plans are for proposing new business ideas.

If you’re planning to start a small business, preparing a business plan is crucial. The plan should include all the major factors of your business.

You can check out this guide for more detailed business plan inspiration .

2. Feasibility Studies

Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization.

3. Internal Use

You can use internal business plans to share goals, strategies, or performance updates with stakeholders. In my opinion, internal business plans are useful for alignment and building support for ambitious goals.

4. Strategic Initiatives

Another business plan that's often for sharing internally is a strategic business plan. This plan covers long-term business objectives that might not have been included in the startup business plan.

5. Business Acquisition or Repositioning

When a business is moving forward with an acquisition or repositioning, it may need extra structure and support. These types of business plans expand on a company's acquisition or repositioning strategy.

Growth sometimes just happens as a business continues operations. But more often, a business needs to create a structure with specific targets to meet set goals for expansion. This business plan type can help a business focus on short-term growth goals and align resources with those goals.

Now that you know what's included and how to format a business plan, let's review some of my favorite templates.

1. HubSpot's One-Page Business Plan

Download a free, editable one-page business plan template..

The business plan linked above was created here at HubSpot and is perfect for businesses of any size — no matter how many strategies we still have to develop.

Fields such as Company Description, Required Funding, and Implementation Timeline give this one-page business plan a framework for how to build your brand and what tasks to keep track of as you grow.

Then, as the business matures, you can expand on your original business plan with a new iteration of the above document.

Why I Like It

This one-page business plan is a fantastic choice for the new business owner who doesn’t have the time or resources to draft a full-blown business plan. It includes all the essential sections in an accessible, bullet-point-friendly format. That way, you can get the broad strokes down before honing in on the details.

2. HubSpot's Downloadable Business Plan Template

We also created a business plan template for entrepreneurs.

The template is designed as a guide and checklist for starting your own business. You’ll learn what to include in each section of your business plan and how to do it.

There’s also a list for you to check off when you finish each section of your business plan.

Strong game plans help coaches win games and help businesses rocket to the top of their industries. So if you dedicate the time and effort required to write a workable and convincing business plan, you’ll boost your chances of success and even dominance in your market.

This business plan kit is essential for the budding entrepreneur who needs a more extensive document to share with investors and other stakeholders.

It not only includes sections for your executive summary, product line, market analysis, marketing plan, and sales plan, but it also offers hands-on guidance for filling out those sections.

3. LiveFlow’s Financial Planning Template with built-in automation

This free template from LiveFlow aims to make it easy for businesses to create a financial plan and track their progress on a monthly basis.

The P&L Budget versus Actual format allows users to track their revenue, cost of sales, operating expenses, operating profit margin, net profit, and more.

The summary dashboard aggregates all of the data put into the financial plan sheet and will automatically update when changes are made.

Instead of wasting hours manually importing your data to your spreadsheet, LiveFlow can also help you to automatically connect your accounting and banking data directly to your spreadsheet, so your numbers are always up-to-date.

With the dashboard, you can view your runway, cash balance, burn rate, gross margins, and other metrics. Having a simple way to track everything in one place will make it easier to complete the financials section of your business plan.

This is a fantastic template to track performance and alignment internally and to create a dependable process for documenting financial information across the business. It’s highly versatile and beginner-friendly.

It’s especially useful if you don’t have an accountant on the team. (I always recommend you do, but for new businesses, having one might not be possible.)

4. ThoughtCo’s Sample Business Plan

One of the more financially oriented sample business plans in this list, BPlan’s free business plan template dedicates many of its pages to your business’s financial plan and financial statements.

After filling this business plan out, your company will truly understand its financial health and the steps you need to take to maintain or improve it.

I absolutely love this business plan template because of its ease-of-use and hands-on instructions (in addition to its finance-centric components). If you feel overwhelmed by the thought of writing an entire business plan, consider using this template to help you with the process.

6. Harvard Business Review’s "How to Write a Winning Business Plan"

Most sample business plans teach you what to include in your business plan, but this Harvard Business Review article will take your business plan to the next level — it teaches you the why and how behind writing a business plan.

With the guidance of Stanley Rich and Richard Gumpert, co-authors of " Business Plans That Win: Lessons From the MIT Enterprise Forum ", you'll learn how to write a convincing business plan that emphasizes the market demand for your product or service.

You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

7. HubSpot’s Complete Guide to Starting a Business

If you’re an entrepreneur, you know writing a business plan is one of the most challenging first steps to starting a business.

Fortunately, with HubSpot's comprehensive guide to starting a business, you'll learn how to map out all the details by understanding what to include in your business plan and why it’s important to include them. The guide also fleshes out an entire sample business plan for you.

If you need further guidance on starting a business, HubSpot's guide can teach you how to make your business legal, choose and register your business name, and fund your business. It will also give small business tax information and includes marketing, sales, and service tips.

This comprehensive guide will walk you through the process of starting a business, in addition to writing your business plan, with a high level of exactitude and detail. So if you’re in the midst of starting your business, this is an excellent guide for you.

It also offers other resources you might need, such as market analysis templates.

8. Panda Doc’s Free Business Plan Template

PandaDoc’s free business plan template is one of the more detailed and fleshed-out sample business plans on this list. It describes what you should include in each section, so you don't have to come up with everything from scratch.

Once you fill it out, you’ll fully understand your business’ nitty-gritty details and how all of its moving parts should work together to contribute to its success.

This template has two things I love: comprehensiveness and in-depth instructions. Plus, it’s synced with PandaDoc’s e-signature software so that you and other stakeholders can sign it with ease. For that reason, I especially love it for those starting a business with a partner or with a board of directors.

9. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers several free business plan templates that can be used to inspire your own plan.

Before you get started, you can decide what type of business plan you need — a traditional or lean start-up plan.

Then, you can review the format for both of those plans and view examples of what they might look like.

We love both of the SBA’s templates because of their versatility. You can choose between two options and use the existing content in the templates to flesh out your own plan. Plus, if needed, you can get a free business counselor to help you along the way.

I’ve compiled some completed business plan samples to help you get an idea of how to customize a plan for your business.

I chose different types of business plan ideas to expand your imagination. Some are extensive, while others are fairly simple.

Let’s take a look.

1. LiveFlow

One of the major business expenses is marketing. How you handle your marketing reflects your company’s revenue.

I included this business plan to show you how you can ensure your marketing team is aligned with your overall business plan to get results. The plan also shows you how to track even the smallest metrics of your campaigns, like ROI and payback periods instead of just focusing on big metrics like gross and revenue.

Fintech startup, LiveFlow, allows users to sync real-time data from its accounting services, payment platforms, and banks into custom reports. This eliminates the task of pulling reports together manually, saving teams time and helping automate workflows.

"Using this framework over a traditional marketing plan will help you set a profitable marketing strategy taking things like CAC, LTV, Payback period, and P&L into consideration," explains LiveFlow co-founder, Lasse Kalkar .

When it came to including marketing strategy in its business plan, LiveFlow created a separate marketing profit and loss statement (P&L) to track how well the company was doing with its marketing initiatives.

This is a great approach, allowing businesses to focus on where their marketing dollars are making the most impact. Having this information handy will enable you to build out your business plan’s marketing section with confidence. LiveFlow has shared the template here . You can test it for yourself.

2. Lula Body

Sometimes all you need is a solid mission statement and core values to guide you on how to go about everything. You do this by creating a business plan revolving around how to fulfill your statement best.

For example, Patagonia is an eco-friendly company, so their plan discusses how to make the best environmentally friendly products without causing harm.

A good mission statement  should not only resonate with consumers but should also serve as a core value compass for employees as well.

Patagonia has one of the most compelling mission statements I’ve seen:

"Together, let’s prioritise purpose over profit and protect this wondrous planet, our only home."

It reels you in from the start, and the environmentally friendly theme continues throughout the rest of the statement.

This mission goes on to explain that they are out to "Build the best product, cause no unnecessary harm, and use business to protect nature."

Their mission statement is compelling and detailed, with each section outlining how they will accomplish their goal.

4. Vesta Home Automation

This executive summary for a smart home device startup is part of a business plan created by students at Mount Royal University .

While it lacks some of the sleek visuals of the templates above, its executive summary does a great job of demonstrating how invested they are in the business.

Right away, they mention they’ve invested $200,000 into the company already, which shows investors they have skin in the game and aren’t just looking for someone else to foot the bill.

This is the kind of business plan you need when applying for business funds. It clearly illustrates the expected future of the company and how the business has been coming along over the years.

5. NALB Creative Center

This fictional business plan for an art supply store includes everything one might need in a business plan: an executive summary, a company summary, a list of services, a market analysis summary, and more.

One of its most notable sections is its market analysis summary, which includes an overview of the population growth in the business’ target geographical area, as well as a breakdown of the types of potential customers they expect to welcome at the store. 

This sort of granular insight is essential for understanding and communicating your business’s growth potential. Plus, it lays a strong foundation for creating relevant and useful buyer personas .

It’s essential to keep this information up-to-date as your market and target buyer changes. For that reason, you should carry out market research as often as possible to ensure that you’re targeting the correct audience and sharing accurate information with your investors.

Due to its comprehensiveness, it’s an excellent example to follow if you’re opening a brick-and-mortar store and need to get external funding to start your business .

6. Curriculum Companion Suites (CSS)

If you’re looking for a SaaS business plan example, look no further than this business plan for a fictional educational software company called Curriculum Companion Suites. 

Like the business plan for the NALB Creative Center, it includes plenty of information for prospective investors and other key stakeholders in the business.

One of the most notable features of this business plan is the executive summary, which includes an overview of the product, market, and mission.

The first two are essential for software companies because the product offering is so often at the forefront of the company’s strategy. Without that information being immediately available to investors and executives, then you risk writing an unfocused business plan.

It’s essential to front-load your company’s mission if it explains your "Why?" and this example does just that. In other words, why do you do what you do, and why should stakeholders care? This is an important section to include if you feel that your mission will drive interest in the business and its offerings.

7. Culina Sample Business Plan

Culina's sample business plan is an excellent example of how to lay out your business plan so that it flows naturally, engages readers, and provides the critical information investors and stakeholders need. 

You can use this template as a guide while you're gathering important information for your own business plan. You'll have a better understanding of the data and research you need to do since Culina’s plan outlines these details so flawlessly for inspiration.

8. Plum Sample Business Plan

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Introduction:

In the highly competitive business landscape, having an effective distribution strategy is crucial for sustainable growth and success. A distribution strategy determines how a company delivers its products or services to its target audience. It involves various channels and methods to ensure that the right products reach the right customers at the right time. This blog post aims to explain the importance of distribution strategy for business growth and provide some examples of effective distribution strategies.

Section 1: Direct Sales Model

The direct sales model is a business strategy that involves selling products or services directly to customers without the use of intermediaries, such as wholesalers or retailers. In this model, companies maintain direct control over the entire sales process, from marketing and promotion to order fulfillment and customer support.

This approach offers several benefits for maximizing business growth:

1. Increased Profit Margins

By eliminating the middlemen, companies can capture a larger share of the profit margin. Without the need to pay commissions or markups to intermediaries, businesses can set their prices competitively while still maintaining healthy profit margins.

2. Enhanced Customer Relationships

Direct sales allow businesses to establish and nurture strong relationships with their customers. By directly interacting with customers, companies gain valuable insights into their needs, preferences, and feedback. This knowledge can be utilized to tailor products or services to better meet customer expectations, resulting in increased customer satisfaction and loyalty.

3. Greater Control Over Brand Image

Direct sales enable companies to have complete control over their brand image. By directly communicating with customers, businesses can maintain consistency in messaging, design, and overall brand experience. This control helps build trust and credibility, contributing to a strong brand reputation.

4. Flexibility in Sales Strategy

With a direct sales model, companies have the flexibility to adapt and refine their sales strategies based on market trends and customer feedback. They can quickly respond to changing customer needs, introduce new products or features, and adjust pricing or promotions accordingly. This agility allows businesses to stay competitive and seize opportunities for growth.

Examples of Successful Implementation

Several companies have achieved success by implementing a direct sales model. Here are two notable examples:

• Apple: Apple is known for its direct sales approach, with its flagship stores serving as hubs for customer engagement and product showcasing. Through these stores, Apple has full control over the customer experience, allowing them to create a seamless journey from initial product discovery to purchase and support.
• Tesla: Tesla follows a direct-to-consumer sales model, bypassing traditional car dealerships. By selling directly to customers through their own showrooms and online channels, Tesla maintains a closer connection with their target audience. This approach has helped the company build a strong brand and create a loyal customer base.

These examples highlight the effectiveness of the direct sales model in driving business growth and establishing a competitive advantage in the market.

Section 2: Indirect Sales Model

In this section, we will explore the advantages of an indirect sales model and highlight examples of companies that have effectively utilized this strategy. Two notable examples include Coca-Cola and Procter & Gamble.

Advantages of an Indirect Sales Model

• Expanded Reach: Utilizing an indirect sales model allows companies to tap into a wider market by leveraging the sales networks of distributors, wholesalers, and resellers.
• Cost Efficiency: By relying on intermediaries, businesses can reduce their operating costs associated with direct sales efforts, such as maintaining a dedicated sales team or establishing physical retail locations.
• Market Expertise: Distributors and resellers often possess deep knowledge of local markets, consumer preferences, and distribution channels, which can enhance a company's ability to effectively reach and serve customers.
• Risk Mitigation: Sharing the sales responsibility with intermediaries can help mitigate risks associated with market fluctuations, demand volatility, and inventory management.

Examples of Companies with Effective Indirect Sales Models

Two prominent companies that have successfully implemented an indirect sales model are:

• Coca-Cola: As a global beverage giant, Coca-Cola has built a vast network of local distributors and retail partners. This enables the company to reach consumers in remote locations and diverse markets, ensuring widespread availability of their products.
• Procter & Gamble: Known for its consumer goods, Procter & Gamble relies on a network of wholesalers and retailers to distribute its products worldwide. By partnering with established retail chains, Procter & Gamble can showcase its wide range of brands in various channels and target specific customer segments.

These examples demonstrate the effectiveness of an indirect sales model in reaching a larger customer base, maximizing market coverage, and increasing sales opportunities for businesses. By leveraging the networks and expertise of intermediaries, companies can achieve greater market penetration and generate significant revenue.

Section 3: E-commerce Distribution

E-commerce distribution plays a significant role in the modern digital age. It refers to the process of getting products or services from the seller to the customer through online platforms. In this section, we will discuss the importance of e-commerce distribution and provide examples of companies that have excelled in this area, such as Amazon and Alibaba.

1. Significance of E-commerce Distribution

E-commerce distribution has revolutionized the way businesses operate by providing numerous benefits:

• Wider Reach: With e-commerce distribution, businesses can reach a global audience without the limitations of physical stores.
• Convenience: Customers can browse and purchase products from the comfort of their own homes, saving time and effort.
• Lower Costs: E-commerce eliminates the need for physical storefronts, reducing overhead expenses and enabling businesses to offer competitive prices.
• Personalization: E-commerce platforms allow businesses to collect customer data, enabling personalized marketing strategies and improving customer experiences.
• Efficiency: E-commerce distribution streamlines the ordering and fulfillment processes, resulting in faster delivery times and improved customer satisfaction.

These advantages make e-commerce distribution an integral part of the modern business landscape.

2. Examples of Successful E-commerce Distribution Companies

Several companies have excelled in e-commerce distribution, becoming leaders in the industry:

Amazon is one of the most well-known and successful e-commerce distribution companies. It offers a vast range of products, quick delivery options, and a seamless user experience. Amazon's efficient distribution network, which includes warehouses strategically located around the world, ensures fast and reliable delivery to customers.

Alibaba is a global e-commerce giant that connects businesses and consumers through its various online platforms. It operates in multiple sectors, including retail, wholesale, and cloud services. Alibaba's distribution strategy focuses on efficient logistics, providing comprehensive solutions for merchants to deliver products to customers worldwide.

These two companies demonstrate the immense potential and success that can be achieved through effective e-commerce distribution strategies.

In conclusion, e-commerce distribution is crucial in today's digital age, offering businesses the opportunity to expand their reach, enhance customer experiences, and streamline operations. Companies like Amazon and Alibaba have set excellent examples in this field, showcasing the power and benefits of effective e-commerce distribution strategies.

Section 4: Channel Partnerships

In this section, we will explore the power of channel partnerships and how they can help businesses expand their market reach and increase sales. Channel partnerships involve collaborating with other companies or organizations to distribute products or services to a wider audience. By leveraging the resources and networks of channel partners, businesses can tap into new markets and benefit from their expertise and customer base.

1. The Benefits of Channel Partnerships

Channel partnerships offer several advantages for businesses looking to grow their market presence:

• Expanded reach: By partnering with established companies, businesses can access new customer segments and geographic regions.
• Increased credibility: Associating with reputable brands through channel partnerships can enhance a business's credibility and brand image.
• Shared resources: Channel partners can provide access to resources, such as distribution networks, marketing expertise, and customer support, which can save businesses time and money.
• Improved customer relationships: Leveraging the existing customer base and relationships of channel partners can help businesses build trust and loyalty with new customers.

2. Successful Instances of Channel Partnerships

Many companies have achieved significant success by implementing channel partnerships:

• Nike and Adidas: These sportswear giants have leveraged channel partnerships with retailers, both online and offline, to distribute their products worldwide, reaching millions of customers.
• Apple and Best Buy: Apple's partnership with Best Buy has allowed the tech company to increase its presence in the consumer electronics market by showcasing and selling its products in Best Buy stores.
• Microsoft and Dell: Microsoft collaborates with Dell to pre-install its software on Dell computers, providing a seamless user experience and expanding Microsoft's customer base.

These successful examples demonstrate how channel partnerships can be instrumental in driving market expansion and boosting sales for businesses of all sizes.

Overall, channel partnerships are a valuable strategy for businesses to consider when looking to broaden their market reach and increase sales. By collaborating with trusted partners, businesses can leverage their resources, expertise, and customer base to gain a competitive edge in the marketplace.

Section 5: Franchising

In this section, we will explore how franchising can be a viable distribution strategy for business growth. We will also provide case studies of successful companies that have achieved remarkable success through franchising, including McDonald's and Subway.

1. Understanding Franchising as a Distribution Strategy

• Definition and basic concept of franchising
• Advantages and disadvantages of franchising
• How franchising works in terms of distribution
• Key considerations for businesses considering franchising as a growth strategy

2. Case Study: McDonald's

McDonald's is a prime example of a company that has achieved immense success through franchising. This section will delve into the specific strategies and factors that have contributed to McDonald's growth through franchising, including:

• The initial decision to franchise
• The role of standardized processes and systems
• Training and support for franchisees
• Marketing and brand management
• Expansion into international markets

3. Case Study: Subway

Subway is another well-known success story in the franchising world. We will examine the key elements of Subway's franchising strategy, including:

• The unique aspects of Subway's franchise model
• The focus on customization and customer experience
• Franchisee training and development
• Marketing and promotions
• Expansion strategies

By studying these successful franchising examples, businesses can gain valuable insights and lessons on how to leverage franchising as a distribution strategy for their own growth and success.

Section 6: Hybrid Distribution Approach

In this section, we will discuss the benefits of adopting a hybrid distribution approach that combines different strategies. We will also offer examples of companies, such as Walmart and Best Buy, that have effectively integrated various distribution channels.

Benefits of a Hybrid Distribution Approach

A hybrid distribution approach involves combining multiple distribution strategies to reach a wider audience and maximize market penetration. This approach offers several benefits:

• Increased Reach: By utilizing multiple distribution channels, companies can reach customers who prefer different buying methods. This allows for greater accessibility and increases the chances of generating more sales.
• Diversification of Risk: Relying on a single distribution channel can be risky, as any disruption or change in the market could significantly impact sales. A hybrid approach spreads the risk across multiple channels, reducing dependency on a single source of revenue.
• Improved Customer Experience: Different customers have different preferences when it comes to purchasing products or services. A hybrid distribution approach enables companies to cater to these preferences, providing a seamless and tailored customer experience.
• Optimized Efficiency: By adopting a hybrid approach, businesses can optimize their distribution strategies based on the specific requirements of different markets or customer segments. This allows for a more efficient allocation of resources and better overall performance.

Examples of Effective Hybrid Distribution

Several companies have successfully implemented hybrid distribution approaches to enhance their market presence and increase sales. Two notable examples are:

• Walmart: Walmart has integrated various distribution channels, including its brick-and-mortar stores, e-commerce platform, and partnerships with third-party sellers. This multi-channel approach allows customers to shop in-store, online, or through a combination of both, offering convenience and flexibility.
• Best Buy: Best Buy combines its physical stores with a strong online presence to create a seamless shopping experience. Customers can research products online, make purchases either online or in-store, and benefit from services like in-store pickup or home delivery.

These companies demonstrate how a hybrid distribution approach can effectively serve customers across different channels and capitalize on the strengths of each distribution method.

In conclusion, a hybrid distribution approach offers numerous benefits, including increased reach, risk diversification, improved customer experience, and optimized efficiency. Companies like Walmart and Best Buy have successfully implemented this approach, showcasing its effectiveness in reaching customers and maximizing sales.

In conclusion, selecting the right distribution strategy is crucial for maximizing business growth. By assessing your current distribution channels and considering the examples provided in this blog post, you can improve profitability and reach your target audience more effectively.

Here is a summary of the key points discussed:

1. Importance of Distribution Strategy

• Distribution strategy plays a vital role in reaching customers and ensuring product availability.
• It affects sales, customer satisfaction, and overall business performance.

2. Choosing the Right Distribution Channels

• Evaluate different distribution channels based on factors like target audience, competition, cost, and logistics.
• Consider direct and indirect channels, including online platforms, retail partnerships, wholesalers, and distributors.

3. Distribution Strategy Examples

• Exclusive distribution: Partnering with a limited number of retailers to maintain brand exclusivity and control.
• Selective distribution: Carefully choosing retailers or distributors based on specific criteria to maintain quality and brand image.
• Intensive distribution: Widely distributing products through multiple channels to maximize market reach and accessibility.
• Direct distribution: Selling products directly to customers through company-owned retail stores or e-commerce platforms.
• Indirect distribution: Utilizing intermediaries like wholesalers, distributors, or agents to reach customers.

By implementing an effective distribution strategy, businesses can:

• Reach their target audience more efficiently and increase brand visibility.
• Improve product availability and customer satisfaction.
• Optimize cost-efficiency by choosing the most suitable distribution channels.
• Expand into new markets and territories.

Assess your current distribution channels and consider incorporating the distribution strategy examples provided in this blog post. By doing so, you can enhance your business's profitability and drive sustainable growth.

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Logistics Business Plan Template

Written by Dave Lavinsky

Logistics Business Plan

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

If you’re unfamiliar with creating a logistics 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 logistics business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Logistics Business Plan?

A business plan provides a snapshot of your logistics 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 Logistics Company

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

Sources of Funding for Logistics Businesses

With regards to funding, the main sources of funding for a logistics 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 logistics companies.

Finish Your Business Plan Today!

How to write a business plan for a logistics business.

If you want to start a logistics 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 logistics 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 logistics business you are running and the status. For example, are you a startup, do you have a logistics business that you would like to grow, or are you operating a chain of logistics businesses?

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

• Give a brief overv iew of the logistics industry. 
• Discuss the type of logistics 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 logistics business you are operating.

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

• Procurement Logistics Business: Specializes in procuring raw materials. 
• Production Logistics Business: Specializes in managing the movement of procured materials once in a factory to include product management, packaging, and shipping of final products to a warehouse for distribution. 
• Sales Logistics Business: Manages the shipment of products from the warehouse to retailers, wholesalers, and customers. 
• Reverse Logistics Business: Specializes in recovering and recycling products and packaging.

In addition to explaining the type of logistics 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 clients served, reaching $X amount in revenues, or the number of cities served, etc. 
• Your legal business structure. 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 logistics industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the logistics 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 logistics business plan:

• How big is the logistics 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 logistics 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 logistics 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 logistics 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 othe r logistics businesses. 

• What types of customers do they serve?
• What type of logistics 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 or faster for customers to obtain your services? 
• Will you offer 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 logistics business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f logistics company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide procurement services, production logistics, sales logistics, or recovery logistics services? 

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

Place : Place refers to the site of your logistics company. Document where your company is situated and mention how the site will impact your success. For example, is your logistics 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 logistics 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 logistics business, including answering calls, scheduling meetings with clients, billing and collecting payments, etc. 

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

Management Team

To demonstrate your logistics 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 logistics 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 logistics 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 s heet, and cash flow statements.

Income Statement

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 logistics 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 logistics 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 office location lease or a list of intellectual property you have.   

Writing a business plan for your logistics 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 logistics industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful logistics business.

Logistics Business Plan Template FAQs

What is the easiest way to complete my logistics business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your logistics business plan.

How Do You Start a Logistics Business?

Starting a logistics business is easy with these 14 steps:

• Choose the Name for Your Logistics Business
• Create Your Logistics Business Plan
• Choose the Legal Structure for Your Logistics Business
• Secure Startup Funding for Your Logistics Business (If Needed)
• Secure a Location for Your Business
• Register Your Logistics Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Logistics Business
• Buy or Lease the Right Logistics Business Equipment
• Develop Your Logistics Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Logistics Business
• Open for Business

Learn more about how to start your own logistics business .

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

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Distribution Channels: Types, And Examples – Updated 2023

A distribution channel is the set of steps it takes for a product to get into the hands of the key customer or consumer. Distribution channels can be direct or indirect. Distribution can also be physical or digital, depending on the kind of business and industry.

Table of Contents

Distribution Types Database

Why a distribution channel strategy matters.

Often companies undervalue distribution channels as they think that a good product or service will automatically create its distribution.

While this might happen, it is more of a utopia than a reality.

Distribution needs to be created, at times with sheer force combined with strategic planning and a deep understanding of customers’ needs or desire generation.

A traditional distribution strategy looks at the classic 4 Ps  (product, promotion, price, and placement).

Those are the key ingredients to growing the revenues of a business, quickly and sustainably. Thus, a distribution strategy starts from:

• Understanding the wants of their customers.
• Leveraging insights to create a better purchasing experience.
• Developing new products and services that customers will want to buy.
• Creating go-to-market strategies that reach the proper customer target.
• Generating demand for a set of products and services offered.

Without an appropriate strategy for distribution, it is hard to have a successful and sustainable business model .

Types of distribution channels

At a higher level, distribution channels can be broken down into direct channels and indirect channels.

This primarily depends on how long is the chain between who makes the product and the final consumer.

The number of steps it takes will make the distribution channel direct or indirect.

Let’s visualize a distribution chain to understand the difference between direct and indirect strategy :

Where in a direct distribution strategy a producer can access the consumer, in an indirect distribution strategy , the producer will meet its consumer demands via third-parties wholesalers or retailers.

Thus, a direct approach makes the value chain shorter and at the same time allows more control by the producer on how the final customer experiences the product or service offered.

At the same time, a direct-to-consumer strategy is quite expensive and not always effective enough to allow proper distribution.

Therefore, companies often use a mixture of direct and indirect distribution strategies, which determine their marketing mix.

Between the direct-to-consumer and entirely indirect distribution strategy (where the producer sells to a wholesaler), there are several indirect variations based on how many steps it takes to reach the final consumer and how long is the value chain.

For instance, in the scenarios in which a producer sells to a wholesaler, the wholesaler sells to retailers, who reach the final consumers.

However, in some other cases, the distribution channels might be shorter.

Think of the Costco business model , where the company purchases a selected variety of goods in bulk from producers.

Yet instead of reselling that to retailers, Costco itself acts as a retailer by leveraging its membership-based business model  and selling those items in bulk quantity directly to consumers, who appreciate the convenience of its prices together with the selection of high-quality products.

Case study: Apple’s direct and indirect distribution mix

In other cases yet, the distribution channels strategy might be even shorter. Take the example of the Apple business model, where the company sells part of its products via its retail stores.

That creates a unique experience for Apple ‘s consumers and makes the value chain shorter but it also leverages an indirect strategy to make those same products (usually quite expensive) more accessible to mass consumers.

Related : Successful Types of Business Models You Need to Know

Distribution channel vs. supply chain

It is easy to confuse and mix up the definition of distribution channels with the supply chain even though the distribution channels and strategies might sometimes cross with the supply chain.

The distribution strategy concerns primarily with bringing the product in front of customers, especially customers that are willing and ready to buy it.

Therefore, in some cases, bringing a product in front of the right people might be a matter for the supply chain.

For instance, in the Luxottica business model , vertical integration means the ability to control the full customer experience and to choose also the location of the retail stores.

Thus, this is a case in which supply chain management also becomes a distribution strategy . That is why, other players, in the same space, try to enter by using, initially, an opposite strategy .

That of owning only part of the supply chain.

It is critical to maintain a clear difference between supply chain and distribution channel strategy .

While the supply chain comprises all the planning, manufacturing, and logistics activities that make the product go from the purchase of raw materials to transformation into a final product that might get delivered to the final customer ( Zara business model leverages supply chain management as a distribution strategy ).

In short, where supply chain management concerns itself with integrating supply and demand, a distribution strategy involves itself primarily in the demand chain.

To have a deep understanding of the difference between the supply chain and distribution strategy it is important to consider three main aspects.

Case study: Tesla and Google, from physical to digital integration

Supply chain vs. demand chain

Where a supply chain seeks efficiencies that can, for instance, reduce the cost of purchasing raw materials, integrate several parts of the supply chain, or at creating better logistics.

Distribution channels and strategies look more at creating demand for a product or service by leveraging several strategies.

For instance, having insight into potential customers can allow a company to generate demand via distribution and marketing, just like in the Nike business model .

Internal vs. external

A supply chain relates to all the aspects that begin with sourcing raw materials, production processes, inventory management, and all the other processes that bring a product or service in front of the final customer.

On the other hand, a distribution strategy primarily concerns the demand chain. Therefore, the difference is primarily internal vs. external.

The supply chain affects costs and how to reduce them via efficiencies .

Distribution channels and strategies look at how to grow the demand. Thus, increasing revenues for the business.

This distinction is not absolute. As in some cases when a core competence of a company is its supply chain management, then that also becomes a distribution strategy , just like in the Amazon business model case study .

Via efficient inventory management, Amazon can keep large facilities where most tasks are automated.

This allows Amazon to host third-party inventories  of sellers that are part of the Amazon network.

That in turn, makes Amazon stores more interesting for final customers as they can find more products they need, they can get them faster, and purchase them in a bundle.

In this case, the Amazon supply chain strategy in part crosses with its distribution strategy .

Process-centric vs. customer-centric

Where the supply chain is often process-centric.

In short, it wants to improve efficiency , reduce steps among several parts of the chain, and make the process as smooth as possible. Distribution channels and strategies focus on the customer.

Where is the customer? How do we get more of them? Is that a matter of price? Value or product?

A distribution strategy is obsessed with customers.

Once again, this is a rough distinction as, in some cases, companies have a customer-centric approach at any company level.

That’s what Jeff Bezos means when he says that successful companies need to stay in “ Day One. “

Why you need to understand the demand chain

Demand chain management is a complex endeavor that involves the relations among suppliers and customers and how those interested in growing the demand for the product or service.

At the core, it is about designing a business model that allows the organization to meet customer needs and create desire and demand with an existing supply chain.

Thus, the demand chain is the value chain from your customers’ perspective.

This implies synergies between the supply chain and distribution and marketing to design a business model that delivers the most suited value proposition and generates higher revenues for the business.

It is almost like demand chain management allows supply chain management to look outside the company’s boundaries and understand the market.

Therefore, demand management will primarily understand, generate, and stimulate customer demand and align the supply chain processes with that.

A proper distribution strategy focuses on understanding the supply and value chain to design a sustainable business model , where, for instance:

• The company has to guarantee enough margins and the proper condition to third-parties distributors to allow them to run sustainable operations.
• Align the incentives between the company, the distributors, and consumers.
• Train and educate distributors so that they can offer the best customer experience.
• Create alignment between distributors to avoid fragmented pricing, placement, and promotion strategy .
• Understand what products or services might allow the organization to grow its reach.

B2B, B2C, and distribution channels

A distribution strategy and therefore, the distribution channels involved will change based on the target customer.

Indeed, selling to a business clientele is not the same thing as selling to consumers.

This implies different capabilities and distribution strategies.

For instance, a B2B (business-to-business) distribution strategy might be shorter, as you can directly reach the businesses that will act as intermediaries between you and the final consumer.

Think of the case of a company selling software as a service (so-called SaaS ). If that software is complex and requires a certain degree of expertise, it will be better suited to be sold via other agencies and third parties, which in turn will have access to the consumer business.

This will imply a distribution strategy focused on acquiring the proper sales force to manage the more complex clients.

On the other hand, if a company sells an app for the iPhone which doesn’t require any particular expertise from the final user.

The company will have direct access to its consumers and will use marketing channels which don’t necessarily require a complex salesforce.

This is a critical difference between marketing and sales.

B2B2C distribution strategy

Another form of distribution strategy is a B2B2C , where a brand can leverage existing pipelines to access the market.

In this case, the B2B2C strategy to work has to enable the brand to be known by a larger customer base or audience while it leverages existing players with an established distribution platform.

That is how you can structure your company’s strategy around a B2B2C business model .

Traditional distribution channels vs. digital distribution channels

Over time, to build a sustainable digital strategy, you need to move from third-party to owned distribution, as explained below: 

As consumer behaviors had swiftly changed in the last decades, more and more people purchase via the internet, and they feel more and more comfortable buying expensive items on the web.

For instance, Tesla allows you to order a $65K car directly on its site.

Therefore, digital distribution strategies are critical for any business, also one that has always operated offline.

As explained by Gabriel Weinberg, CEO, and founder of DuckDuckGo , there are at least 19 distribution channels between online and off-line:

• Targeting Blogs
• Unconventional PR
• Search Engine Marketing
• Social and Display Ads
• Offline Ads
• Search Engine Optimization
• Content Marketing
• Email Marketing
• Viral Marketing
• Engineering as Marketing
• Business Development
• Affiliate Programs
• Existing Platforms
• Trade Shows
• Offline Events
• Speaking Engagements
• Community Building

Each of those channels can be a critical ingredient to enhance the revenues of a business.

What matters is to experiment, according to the Bullseye Framework :

Related : Growth Marketing Strategies For Your Online Business

Distribution management: marketing or sales?

Understanding whether distribution management is a matter of sales or marketing is superfluous as it might make us switch the focus from what’s important.

However, it makes sense to draw some lines as this allows proper attribution of responsibility and accountability across the departments of an organization.

Thus, distribution management is typically seen as a marketing function. Yet, once again it depends on the kind of organization you’re running.

Imagine the case of a company that sells to wholesalers or retailers; this means most of the contracts might be managed by salespeople, as they require an understanding of deal terms, relationships, and partnerships in place.

In that case, your salesforce will be able to give you insights that can help you improve the distribution strategy.

In the opposite scenario, where the company sells a product directly to consumers, most of the processes might be automated. Thus, most of the insights will be in the hands of the marketing department.

How do you assess the right mix for your distribution strategy?

When building up a distribution strategy, it’s important to balance speed and control.

And to leverage those channels that can give momentum to the business.

Yet also, in the long-term prioritize those channels that make the company viable and its business model solid.

Key takeaways and why distribution is your most important asset

At any time, businesses can leverage open and closed strategies to enhance and create ecosystems that enable the business to thrive.

In short, companies like Google , Amazon , GitHub , Uber , Airbnb , Twitter , Facebook , LinkedIn and many others that we discussed in this blog while growing managed to create parallel ecosystems of developers, publishers, small businesses, entrepreneurs, and users that are really the base and foundation for those companies business model success.

In short, the turnover those companies make is just the tip of the iceberg of an ecosystem, which is often hard to control.

The Internet, enabled ways for these organizations to involve thousands of publishers, developers, and users, where an organization, generating profits, built a strong distribution platform, thus making it compelling to other key players to participate in the growth of the ecosystem.

At the center of those open, and uncontrollable ecosystems, there is a strong distribution network, controlled by the organization in charge of the platform, that is able to monetize the ecosystem.

Thus, the distribution network is, in many cases, among the most valuable assets a company has in the long run.

Even if that’s expensive to develop, a distribution network is always worth it, because that is how you build a business you can control and a platform where you make the rules of the game.

This is the essence of business platforms !

To finish this up, how can you plan an entry strategy based on the distribution context in which we’re operating? 

Key Insights

• Distribution Channels: A distribution channel is the path a product takes to reach the end customer. It can be direct or indirect and can involve physical or digital channels.
• Distribution Types Database: Various companies have different distribution strategies. Examples include Amazon’s hybrid model, Apple’s hybrid model with carriers, Facebook’s direct digital distribution, Google’s digital vertical integration, Luxottica’s physical vertical integration, and Tesla’s direct physical distribution.
• Importance of Distribution Strategy: Companies often undervalue distribution channels, assuming that a good product will automatically find its way to customers. However, distribution needs to be created through strategic planning and understanding customer needs.
• Types of Distribution Channels: Distribution channels can be categorized as direct or indirect based on the number of steps between the producer and the end consumer. Companies may use a mix of direct and indirect channels to reach their target market.
• Supply Chain vs. Distribution Strategy: While the supply chain focuses on efficiencies in the process of delivering a product, the distribution strategy is customer-centric, focused on creating demand and reaching the target audience.
• B2B, B2C, and Distribution Channels: The distribution strategy may vary depending on the target customer. B2B distribution strategies may involve more intermediaries, while B2C strategies can be more direct.
• Traditional vs. Digital Distribution Channels: With the rise of digitalization, companies need to adapt their distribution strategies to leverage digital channels effectively.
• Distribution Management: Distribution management is usually considered a marketing function, but it can involve sales when dealing with wholesalers or retailers.
• Assessing the Right Mix: Finding the right distribution mix involves balancing speed, control, and the channels that can drive business growth in the long term.
• Distribution as the Most Important Asset: Distribution networks are among the most valuable assets a company can have, as they can create ecosystems that enable business success and control over the platform.

Distribution Channels Types Case Studies

What is distribution.

Distribution is a process of enabling a product or service to be easily accessible to the critical customer and consumer who needs that kind of product and service. Usually, distribution channels can be direct or indirect depending on the distribution strategy adopted by an organization to grow its profits.

What is direct distribution?

In a direct distribution model, a company can get its products directly into the hands of consumers without passing through an intermediary. Think of the case of a company like Apple, which sells its iPhones directly through its owned store thus reaching its key customers.

What is indirect distribution?

In an indirect distribution model, a company can get its products into the hands of the final customers, only passing through an intermediary. Think of the case of a company that manufactures a product that then gets sold by a third-party retailer. Thus the company can’t reach its customers directly.

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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!

Download Now!

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 8+ Distributor Business Plan Samples in PDF | MS Word

Just like an interior design business, starting a distributor business can be tough. What’s worse? It gets more complicated as it progresses from the day you start complying with the  business requirements  to the time you open up the store. However, if you choose to persevere, these obstacles should not discourage you from building it from scratch. Nevertheless, it does not mean that you have to endure the unnecessary struggles in doing business. Start your business journey by creating a distributor  business plan , which we are going to discuss in this article.

Distributor Business Plan

What is a distributor business plan, essential components of a distributor business plan, 1. executive summary, 2. company description, 3. competitive analysis, 8+ distributor business plan samples, 1. distributor business marketing plan example, 2. distributor business plan template, 3. distribution service plan sample, 4. independent distributor business plan sample, 5. business plan for reclaimed water distribution template, 6. basic distribution business plan sample, 7. gas distribution business plan sample, 8. custom jewelry  distribution business plan sample, 9. distributor business plan in doc, tips in creating a distributor business plan, 1. determine your audience, 2. have a clear and realistic objectives, 3. conduct a business analysis, 4. review your plan.

A distributor business plan is a document where you can write the goals of your business, the methods or processes that you will use to attain these goals, and a realistic time-frame to achieve them. Basically, it will serve as a roadmap that will direct your business towards its goals. Aside from that, your business plan should include a summary that will describe your business. This overview may include the characteristics of your business, environment, and financial plan. It has a variety of uses, such as serving it as a supporting document of your  business loan proposal  and attracting potential clients.

Now that you know what a distributor business plan is let’s discuss the components that you have to include in your business plan.

Just like a  boutique business plan , your distributor business plan should include an executive summary to summarize the goals of your business. It should consist of a short description of our products and services in general. You may also include the mission statement of your business and why you are starting it.

In this section, you will write a description of your business and how it will stand out among the existing players in the industry. You can also include information about your target market. You can also conduct a  target market analysis  to obtain more accurate information about the business’ target market. You can also include a separate section to detail your market analysis.

By incorporating a  competitive analysis , you can enumerate the weaknesses and strengths of the businesses in the industry and the competitive edge your company has.

Other components that you can add in your business plan are a list of the products and services your business will offer, marketing plan,  sales plan , and financial plan.

If you are planning to create a  real estate business plan , software business plan,  service business plan , or any business plan for a distributor company, you might want to take a look at the following examples. With these downloadable documents, you can use a reference in creating one.

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According to (National Association of Wholesaler-Distributors) NAW , the industry has a promising growth in terms of profits. In fact, in 2018, it reached a total of $6.01 trillion, which is 7.5% higher than the 2017’s record. However, you should also take note that the businesses that hold large markets in this industry maintain a solid business plan, which you can achieve by following the tips below.

As we have mentioned earlier, there are various reasons why you will create a business plan. It is no different for a distributor business plan. It does not mean that you have to alter the information that you divulge according to your target audience. However, you have to strategically use the information that you hold according to what the target audience needs.

Before doing anything else, you have to determine what you aim in developing a business. Come up with a clear vision that will allow you to elaborate on the steps that you will take to achieve them. Take note, though, that your objectives must be realistic. Meaning, you can attain these goals in a specific timeframe and in a way that your target audience can measure its progress. You can also read our article about  smart goals  for you to have a guide in setting one.

As we have mentioned earlier, you have to use the information that you possess strategically to compel your audience to do or give whatever you want from them. However, what will you use if you don’t have one? Therefore, you have to conduct different  business analyses  that are relevant to the industry of your business.

While it is true that a distributor plan should be robust even from the start, it does not mean that you cannot make modifications to its details. In fact, as it becomes more complicated, you will have to update its details from time to time to accord with the current state of the market, which can change anytime due to its affecting factors that also keep on changing. For example, there are new players in the industry. You should also expect that they can make their own solid business plan. Another scenario is the closure of a big competitor of your company. It can allow you to take over the market that they cannot serve anymore.

Indeed, starting a business, such as a milk tea shop, retail store, restaurant business, or any other distributor business, is tough. However, as long as you know what you have to do, the toughness should not stop you. With the information that we have tackled about the distributor business plan, you will not take to a path blindly. However, you should also take note that there are also other things that you need to know if you are going to take the path of becoming a distributor. You can learn it along the way, but you can also start by reading another article, such as the  project management plan ,

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Food and Beverage Distribution Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Food Sector

Are you about starting a food and beverage distribution business? If YES, here is a complete sample beverage distribution business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a beverage distribution business. We also took it further by analyzing and drafting a sample beverage distribution marketing plan template backed up by actionable guerrilla marketing ideas for beverage distribution businesses. So let’s proceed to the business planning section.

It can be truly challenging starting any business, but one business that you can start with little challenges is a beverage distribution business. A beverage distribution business is a business that involves buying beverages in wholesale from beverage production companies and then distributes them to retailers, offices and household.

With this type of business, you can choose to own a store / warehouse if you have the financial capacity to 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 beverages and how to get them delivered to your customers.

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

So, if you have decided to start a beverage distribution business, then you have to be sure that you carry out detailed feasibility studies and also market survey.

This enables you to properly locate the business in a location with the right demography, network with beverage retailers and household and then hit the ground running. Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business.

Below is a sample beverage distribution business plan template that can help you to successfully write your own with little or no hassle.

A Sample Food and Beverage Distribution Business Plan Template

1. industry overview.

Businesses in the beverage and Soft Drinks Distribution industry are involved in the distribution of bottled and canned beverages for consumption, carbonated soft drinks; purifying and bottling water; and other beverages, such as energy, sports and juice drinks.

Products from industrial giants such as Nestle, The Coca Cola Company and Pepsi Co Inc. top the list of products distributed by beverage distribution companies. Report shows that the revenue growth for beverage distribution industry has slowed over the last half a decade and this is due to the global recession constraining demand across most of the industry’s markets.

The steadily declining sales of beverages and carbonated soft drinks in mature markets, the growing market power of big-box retailers like WalMart and Costco, and the economic downturn is yet another prevailing factor in dwindling revenue generation for beverage distribution companies.

The industry will also benefit from more buoyant economic conditions in emerging markets, with rising disposable incomes and urbanization fueling demand for both beverages, and carbonated products.

The beverage and carbonated drinks distribution industry is a thriving sector of the economy of the united states which generates several billion dollars annually from numerous beverage and carbonated drinks distribution companies scattered all across the United States of America.

The industry is responsible for directly and indirectly employing several thousands of people. It is important to state that no establishment has a dominant share of the available market in this industry; the industry is open for fair competition from new entrants.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption of which the beverage and carbonated drinks distribution industry contributes greatly.

This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S. In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / distribution industry negatively which may result in the closure of some of these businesses.

Over and above, beverage and carbonated drinks 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 standard store / warehouse, dozens of distribution trucks / vans and strong online presence.

2. Executive Summary

Charlie & Tango Distribution Company is a standard and registered distribution company that will be involved in the distribution of beverages and carbonated drinks to retailers, household, hotels and restaurants et al. Our warehouse cum administrative office will be located in one of the busiest streets in Trenton – New Jersey.

We have been able to lease a warehouse facility that is big enough to fit into the design of the kind of beverage Distribution Company that we intend launching and the facility is centrally located in the heart of town with easy delivery network.

Charlie & Tango Distribution Company will distribute a wide range of beverages and carbonated drinks at affordable prices from different brands. We will engage in the distribution of bottled and canned beverages for consumption, carbonated soft drinks; purifying and bottling water; and other beverages, such as cocoa drinks, energy, sports and juice drinks.

We are aware that there are several large and small beverage distribution companies and even beverage manufacturers all around Trenton – New Jersey that are also into product distribution services, 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 of options available in the United States.

Beyond selling the distribution of beverages and carbonated drinks from leading brands in the United States, our customer care is going to be second to none in the whole of Trenton – New Jersey 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 and also to become our loyal customers and ambassadors.

Charlie & Tango Distribution Company will ensure that all our customers are given first class treatment whenever they visit our, they order beverages and carbonated 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 the numbers of our customers’ base and distribution network 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.

Charlie & Tango Distribution Company 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. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Charlie & Tango Distribution Company®, LLC is a family business that is owned by Charlie Tango and his immediate family members. Charlie Tango has a B.Sc. in Business Administration, with well over 8 years of hands on experience in the retailing and distribution industry, working for some of the leading brand in the United States.

Although the business is launching out with just by focusing on Trenton – New Jersey, but there is a plan to expand our distribution network all across the state of New – Jersey.

3. Our Products and Services

Charlie & Tango Distribution Company is in the beverage and carbonated drinks distribution industry and we will ensure we go all the way to be involved in the distribution of a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We are in the beverage and carbonated 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. Our products and services offerings are listed below;

• Distribution of functional beverages and sports drinks
• Distributions of carbonated soft drinks
• Distribution of bottled water
• Distributions of fruit juices and cocktails
• Distribution of teas
• Distribution of energy and sport drinks
• Ice manufacturing

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the beverage and carbonated soft drinks distribution line of business in the whole of Trenton – New Jersey.
• Our mission is to establish a beverage and carbonated soft drinks distribution business that will distribute a wide range of beverages and carbonated soft drinks from top manufacturing / production brands at affordable prices to retailers, households, hotels and restaurants et al in Trenton and other cities in New Jersey where we intend marketing our services and products.

Our Business Structure

Charlie & Tango Distribution Company does not intend to start a beverage and carbonated soft drinks distribution business like the usual mom and pop business around the street corner; our intention of starting a beverage and carbonated soft drinks distribution business is to build a standard and one stop distribution business in Trenton – New Jersey.

We will ensure that we put the right structure 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 (the owners, workforce, and customers).

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 Charlie &Tango Distribution Company;

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

Merchandize Manager

Sales and Marketing Manager

Information Technologist

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

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Intensifiers management’s efficiency by recruiting, selecting, and correcting managers. Also, developing an environment for offering information and opinions; providing educational opportunities.
• Creates and implements the organization’s vision, mission, and overall goals.
• Accountable for fixing prices and signing business deals
• Accountable for providing direction for the business
• Answerable for signing checks and documents on behalf of the company
• Appraises the success of the organization
• Reports to the board

Admin and HR Manager

• Accountable for supervision the smooth running of HR and administrative tasks for the organization
• Upholds office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Guarantees operation of equipment by completing preventive preservation requirements.
• Appraises job knowledge by partaking in educational opportunities and reading professional publications
• Describes job positions for recruitment and managing interviewing process
• Carries out staff introduction for new team members
• Is saddled with training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Supervises the smooth running of the daily office activities.

Warehouse Manager:

• Answerable to forming the safe and efficient delivery, storage and dispatch of warehoused goods
• Accountable for liaising with customers, suppliers and transport companies
• Plans, coordinates and screens the receipt, order assembly and dispatch of goods
• Accountable for using space and mechanical handling equipment professionally and making sure quality, budgetary targets and environmental objectives are met
• In charge of organizing the use of automated and computerized systems where necessary
• Accountable for keeping stock control systems up to date and making sure inventories are accurate;
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of beverages and carbonated drinks for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Accomplishes external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Accountable for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Grows, performs and assesses new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages 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

• Helps in loading and unloading beverages and carbonated soft drinks
• Upholds a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a distribution schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.

6. SWOT Analysis

Our plan  of start out in Trenton and distribute our goods only within Trenton – New Jersey 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 beverage and carbonated soft drinks distribution all around the state of New Jersey.

We are quite aware that there are several beverage and carbonated soft drinks distribution companies all over Trenton 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 welled equipped to confront our threats.

Charlie & Tango Distribution Company 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 Charlie & Tango Distribution Company;

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 Gina Grocery Home Delivery Services.

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 could serve as a deterrent to us is that we are a new beverage and carbonated soft drinks distribution business and we don’t have the financial capacity to compete with leaders in the industry for now.

• Opportunities:

The fact that we are going to be operating our beverage and carbonated soft drinks distribution business in Trenton – New Jersey provides us with unlimited opportunities to sell our goods to a large number of retailers and 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 patronize our products and services; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a similar business in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Distribution of goods as wholesaler to retailers has been in existence for as long as human started trading goods, but one thing is certain, the distribution industry is still evolving. The introduction of technology has indeed helped in reshaping the industry.

Lastly, t 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 help businesses like beverage and carbonated soft drinks to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help beverage and carbonated soft drinks serve them better.

8. Our Target Market

The beverage and carbonated soft drinks industry has a wide range of customers; a good number of people on planet earth consume beverages and carbonated soft drinks and it is difficult to find people around who don’t.

In view of that, we have positioned our beverage and carbonated soft drinks distribution company to service businesses in Trenton – New Jersey and every other location we will cover all over the state of New Jersey. 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 beverages and carbonated soft drinks from different production companies to the following businesses;

• Retailers of beverages and carbonated soft drinks
• Restaurants
• Nightclubs and bars

Our competitive advantage

A close study of the beverage and carbonated soft drinks distribution industry reveals that the market has become much more intensely competitive over the last decade. 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 stiffer competition and we are well prepared to compete favorably with other leading supermarkets and grocery stores in Trenton – New Jersey. Charlie & Tango Distribution Company is launching a standard beverage and carbonated soft drinks distribution business that will indeed become the preferred choice of retailers, hotels, and restaurants et al in Trenton – New Jersey.

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 Charlie & Tango Distribution Company a one stop beverage and carbonated soft 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 (startups beverage and carbonated soft drinks distribution businesses) 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

Charlie & Tango Distribution Company is in business to retail (distribute) a wide range of beverages and carbonated soft drinks from top beverage production companies to hotels, restaurants and retailers in Trenton – New Jersey. We are in the beverage and carbonated soft drinks distribution industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing (distribution) of a wide range of beverages and carbonated drinks at affordable prices. We will generate income for the business by;

10. Sales Forecast

One thing is certain when it comes to beverage and carbonated soft 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 Trenton – New Jersey and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the beverage and carbonated soft drinks distribution industry and 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 Trenton – New Jersey.

Below are the sales projections for Charlie & Tango Distribution Company®, LLC, it is based on the location of our business, the list of beverages and carbonated soft drinks and other factors as it relates to beverages and carbonated soft drinks start – ups in the United States;

• First Fiscal Year-: $240,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $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 services 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 Charlie & Tango Distribution Company, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for beverage and carbonated soft drinks retailers, hotels, and restaurants in Trenton – New Jersey.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers 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 Trenton – New Jersey.

In other to continue to be in business and grow, we must continue to distribute beverages and carbonated soft drinks which is why we will go all out to empower or sales and marketing team to deliver. In summary, Charlie & Tango Distribution Company will adopt the following sales and marketing approach to win customers over;

• Open our business in a grand style with a party for all.
• Introduce our business by sending introductory letters alongside our brochure to beverages and carbonated soft drinks retailers, hotels, restaurants, households and key stakeholders in Trenton – New Jersey
• Ensure that we have a wide range of beverages and carbonated soft drinks from different brand within and outside the United States at all times.
• Make use of attractive handbills to create awareness business
• Position our signage / flexi banners at strategic places around Trenton – New Jersey
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our beverage and carbonated soft drinks distribution business.

11. Publicity and Advertising Strategy

Despite the fact that our beverage and carbonated soft drinks distribution business is well structured and well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote the business.

Charlie & Tango Distribution Company has a long-term plan of opening distribution channels all around the state of New Jersey which is why we will deliberately build our brand to be well accepted in Trenton before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Charlie & Tango Distribution Company®, LLC;

• Place adverts on community based newspapers, radio stations 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, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Trenton – New Jersey
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact beverage and carbonated soft drinks retailers, hotels, restaurants, night clubs and bars by calling them up and informing them of Charlie & Tango Distribution Company and the products we sell / distribute
• Advertise our grocery home 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 wears 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 from distribution companies that they can goods at cheaper price. We will work towards ensuring that all our goods are distributed at highly competitive prices compare 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 Charlie & Tango Distribution Company 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 Charlie &Tango Distribution Company 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 farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a beverage and carbonated soft drinks distribution business; it might differ in other countries due to the value of their money.

This is the key areas where we will spend our start – up 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 Charlie & Tango Distribution Company®, LLC 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 month 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 et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of beverages, and carbonated soft drinks) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• The cost for serving area equipment (plates, glasses, flatware) – $3,000
• 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 – $25,000
• The cost of launching a website –   $600
• The cost for our opening party – $7,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our beverage and carbonated soft drinks distribution business in Trenton – New Jersey. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Charlie &Tango Distribution Company

Charlie & Tango Distribution Company®, LLC is a private business that is solely owned and financed by Charlie Tango and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my 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 document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Charlie & Tango Distribution Company®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail / distribute our beverages and carbonated soft drinks a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Charlie & Tango Distribution Company®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• 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
• Graphic Designs and Printing of Packaging Marketing / 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
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be distribute: Completed
• Establishing business relationship with beverages and carbonated drinks production companies within and outside of the United States of America: In Progress

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Business Plan: What It Is + How to Write One

Discover what a business plan includes and how writing one can foster your business’s development.

What is a business plan? 

Think of a business plan as a document that guides the journey to start-up and beyond. Business plans are written documents that define your business goals and the strategies you’ll use to achieve those goals. In addition to exploring the competitive environment in which the business will operate, a business plan also analyses a market and different customer segments, describes the products and services, lists business strategies for success, and outlines financial planning.  

How to write a business plan 

In the sections below, you’ll build the following components of your business plan:

Executive summary

Business description 

Products and services 

Competitor analysis 

Marketing plan and sales strategies 

Brand strategy

Financial planning

Explore each section to bring fresh inspiration and reveal new possibilities for developing your business. Depending on your format, you may adapt the sections, skip over some, or go deeper into others. Consider your first draft a foundation for your efforts and one you can revise, as needed, to account for changes in any area of your business.  

1. Executive summary 

This short section introduces the business plan as a whole to the people who will be reading it, including investors, lenders, or other members of your team. Start with a sentence or two about your business, development goals, and why it will succeed. If you are seeking funding, summarise the basics of the financial plan. 

2. Business description 

Use this section to provide detailed information about your company and how it will operate in the marketplace. 

Mission statement: What drives your desire to start a business? What purpose are you serving? What do you hope to achieve for your business, the team, and your customers? 

Revenue streams: From what sources will your business generate revenue? Examples include product sales, service fees, subscriptions, rental fees, licence fees, and more. 

Leadership: Describe the leaders in your business, their roles and responsibilities, and your vision for building teams to perform various functions, such as graphic design, product development, or sales.  

Legal structure: If you’ve incorporated your business, include the legal structure here and the rationale behind this choice. 

3. Competitor analysis 

This section will assess potential competitors, their offers, and marketing and sales efforts. For each competitor, explore the following: 

Value proposition: What outcome or experience does this brand promise?

Products and services: How does each solve customer pain points and fulfill desires? What are the price points? 

Marketing: Which channels do competitors use to promote? What kind of content does this brand publish on these channels? What messaging does this brand use to communicate value to customers?  

Sales: What sales process or buyer’s journey does this brand lead customers through?

4. Products and services

Use this section to describe everything your business offers to its target market. For every product and service, list the following: 

The value proposition or promise to customers, in terms of how they will experience it

How the product serves customers, addresses their pain points, satisfies their desires, and improves their lives

The features or outcomes that make the product better than those of competitors

Your price points and how these compare to competitors

5. Marketing plan and sales strategies 

In this section, you’ll draw from thorough market research to describe your target market and how you will reach it. 

Who are your ideal customers?   

How can you describe this segment according to their demographics (age, ethnicity, income, location, etc.) and psychographics (beliefs, values, aspirations, lifestyle, etc.)? 

What are their daily lives like? 

What problems and challenges do they experience? 

What words, phrases, ideas, and concepts do consumers in your target market use to describe these problems when posting on social media or engaging with your competitors?  

What messaging will present your products as the best on the market? How will you differentiate messaging from competitors? 

On what marketing channels will you position your products and services?

How will you design a customer journey that delivers a positive experience at every touchpoint and leads customers to a purchase decision?

6. Brand strategy 

In this section, you will describe your business’s design, personality, values, voice, and other details that go into delivering a consistent brand experience. 

What are the values that define your brand?

What visual elements give your brand a distinctive look and feel?

How will your marketing messaging reflect a distinctive brand voice, including tone, diction, and sentence-level stylistic choices? 

How will your brand look and sound throughout the customer journey? 

Define your brand positioning statement. What will inspire your audience to choose your brand over others? What experiences and outcomes will your audience associate with your brand? 

7. Financial planning  

In this section, you will explore your business’s financial future. Suppose you are writing a traditional business plan to seek funding. In that case, this section is critical for demonstrating to lenders or investors you have a strategy for turning your business ideas into profit. For a lean start-up business plan, this section can provide a useful exercise for planning how to invest resources and generate revenue [ 1 ].  

To begin your financial planning, use past financials and other sections of this business plan, such as your price points or sales strategies. 

How many individual products or service packages do you plan to sell over a specific period?

List your business expenses, such as subscribing to software or other services, hiring contractors or employees, purchasing physical supplies or equipment, etc.

What is your break-even point or the amount you must sell to cover all expenses?

Create a sales forecast for the next three to five years: (No. of units to sell X price for each unit) – (cost per unit X No. of units) = sales forecast

Quantify how much capital you have on hand.

When writing a traditional business plan to secure funding, you may append supporting documents, such as licences, permits, patents, letters of reference, resumes, product blueprints, brand guidelines, the industry awards you’ve received, and media mentions and appearances.

Business plan key takeaways and best practices

Remember: Creating a business plan is crucial when starting a business. You can use this document to guide your decisions and actions and even seek funding from lenders and investors. 

Keep these best practices in mind:

Your business plan should evolve as your business grows. Return to it periodically, such as quarterly or annually, to update individual sections or explore new directions your business can take.

Make sure everyone on your team has a copy of the business plan, and welcome their input as they perform their roles. 

Ask fellow entrepreneurs for feedback on your business plan and look for opportunities to strengthen it, from conducting more market and competitor research to implementing new strategies for success. 

Start your business with Coursera 

Ready to start your business? Watch this video on the Lean approach from the Entrepreneurship Specialisation on Coursera: 

Article sources

Inc. “ How to Write the Financial Section of a Business Plan ,   https://www.inc.com/guides/business-plan-financial-section.html.” Accessed April 15, 2024.

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Siminoff: State oversight needed to fix Nassau Community College

Faren Siminoff // April 18, 2024 //

Nassau Community College

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