food distribution business plan template

Wholesale Foods | How to Start a Food Distribution Business

Wholesale foods distribution is vital to the success of any business in the retail food and beverage industry , hospitality industry, and restaurant industry . Companies within these industries depend on a fresh,  steady supply of wholesale foods to maintain their operations.

Key Takeaway - Starting a food distribution business requires managing a relationship with food producers and consumer-facing companies. Depending on the type of food distribution business, you'll be operating a B2B eCommerce model, DTC model , or O2O business model.

The business model you operate will determine your distributor marketing plan and help streamline your niche market research. Undoubtedly, the food and beverage industry is highly competitive, but with a solid business process flow chart , you'll be able to both navigate it and produce desirable results in your restaurant supplies business.

This guide will teach you the steps to take before starting your food business and working with seasonality in business . Let's review how to start a wholesale foods distribution business and the steps you need to take to become a food wholesale distributor .

How to Start a Wholesale Foods Business: 4 Things to Consider Before Launching Your Food Business

There's a lot of profit to be made from starting a food wholesale distribution business. However, before starting your wholesale foods distribution business, you must put several things in place.

Here are four things you should consider before you launch your wholesale foods distribution business:  

• Wholesale Food and Warehouse Inventory Management

You need to choose the type of wholesale foods you want to distribute. The biggest challenge in distributing food is warehouse inventory management due to the limited shelf life of foods.

With the perishability of your food in mind, whichever wholesale foods you choose to distribute must be stored under temperature conditions that can extend the shelf life. Your warehouse layout design and structure must be perfect.

• Logistics and Overhead Costs

It helps if you also consider the most likely logistics disruptions you will face, including your plan for last mile delivery . To solve this, you may need to integrate route optimization tools into your wholesale food business.

As a new foodservice wholesale distributor, it’s smart to minimize your overhead costs. Using a wholesale distribution management software like BlueCart will streamline your operations and the costs of running your business.

• Shipping Food and Order Fulfillment

Shipping food and order fulfillment is another crucial thing to consider when launching your wholesale food business. Integrating the best shipping processes for your wholesale product is essential to avoid spoilage and other shipping issues .

Partnering with local manufacturers and food businesses will make receiving and delivering fresh food products easy. However, once your business expands, you may need to learn how to ship perishable foods across borders.

• Package Design and Shipping Labels

If you plan to operate private label brands for your wholesale food distribution business, you must consider your package design and product marketing ideas. You'll also need to learn how to print product shipping labels .

Creating your unique selling point is essential to marketing your product to your target audience. Writing an eCommerce marketing plan will help you build your brand and expand your business.

Now that you know what to consider before launching your food wholesale distributorship business, let's discuss ten tips to get you started.

How to Start a Wholesale Foods Business: 10 Tips to Get Started

Here are ten tips to get started with your wholesale food distribution business :

• Business Plan and Wholesale Distribution Process Flow

To start, write a business plan that covers your entire operation and business process flow . Your wholesale distribution business plan will help validate your idea and simplify things.

Are you looking for a simpler way to create a flow diagram for your wholesale food distribution business? You can use our editable business process flow chart to streamline and optimize your business processes. Download our free business process flow chart template here .

Consider adding the following sections to your business plan :

• Executive Summary: An overview of your product, the market, and potential areas for growth.
• Overviews and Goals: A description of your company, your target market, and the resources you'll need to run it.
• Products and Services: Information about the specific wholesale foods your company will offer.
• Market Opportunities: Evaluation of client demographics, purchasing patterns, and demand for your product.
• Distributor Marketing Strategies: Describe your strategy for reaching consumers and how you plan to differentiate yourself from the competition.
• Competitive Analysis: Evaluation of your competitor's strengths and weaknesses.
• Operations: Your company's organizational structure and the requirements for day-to-day productivity.
• Leadership Team: Specifying the duties of each manager by their responsibilities.
• Financial Evaluation: Laying out operational budgets, future expense estimates, and all costs.
• Select Your Business Bank

One mistake you should never make is using your bank account for your business needs. Opening an account with one of the best banks will make it easier to process transactions.

You can also consider integrating the best payment gateway into your business. This will streamline online transactions and make it possible to accept payments online . 

• Wholesale License and Legal Permits

It is essential to sort out all the legal requirements of your business early on. Getting your wholesale license gives you legal permission to buy wholesale food in large quantities and resell them in smaller amounts to businesses in the food industry.

It’s best if you also choose whether you wish to be an LLC, S-Corp, or C-Corp. As a foodservice wholesale distributor, these three options preserve your assets and give you access to specific tax advantages.

Here's a brief overview:

• LLC : The limited liability corporation (LLC) personal income tax return is used to disclose all business-related earnings and outlays.
• S Corporation : Owners collect dividends from profits and pay themselves salaries.
• C Corporation : A C Corporation is a separately taxed entity that files a corporate tax return (Form 1120). Any tax owed is paid by the proprietors personally; there is no income tax paid at the company level.

• Choose Your Food Distribution Business Model

There are various business models you can run. However, it’s crucial to understand the needs of your target market first.

The business model you select can come as a value-added service. You can even combine more than one, depending on your management tools.

Let's look at some of these models:

• Subscription billing and recurring payments model: Customers are billed for the wholesale food they repeatedly order with this payment model. Subscription billing solutions streamline invoicing, automated billing , payment processing, and order fulfilling processes. 
• Dropshipping model: Dropshipping allows you to receive products from wholesale dropshipping suppliers and manufacturers without worrying about inventory carrying costs, warehousing, and bulk shipping . Customers place their orders and pay on your website, and in turn, you send all order requirements to the product manufacturer. The manufacturer will then process the order and deliver it to the customer.
• Private label model: As a private label brand, you get to exclusively rebrand already-manufactured products and sell them as your own. Manufacturers produce and design products, and you relabel, sell, and profit from them. Understand white label vs. private label .
• Design Your Catalog and Food Packaging

If you choose to be a private label brand, then it’s vital to design your shipping label and food packaging. A shipping label printer will do the trick. Whichever food eCommerce packaging option you choose must adhere to food safety regulations and prevent spoilage.

Designing a digital catalog to showcase your products will also come in handy. You can use a simple catalog creator , an eCommerce website builder , or product catalog builder software .

• Partner With a Large-Scale Food Producer

Partnering with a large-scale food producer is crucial to the success of your wholesale food business. You can connect with more than one manufacturer if you plan to have a large inventory and supply various types of wholesale food products.

However, it would help if you decided on a few things before choosing a supplier for your business. Here are some questions to ask yourself :

• Do you want to work with local suppliers or international suppliers?
• Can you negotiate to become that manufacturer’s exclusive distributor?
• Will you sign a wholesale purchase agreement ?
• Can you work with their shipping policy ?
• Set Your Wholesale Price

How much will you charge your customers for your wholesale foods? It is essential to research your competition and the current market price and wholesale price for the products you want to sell online .

Pricing is one of the most challenging aspects of starting a new business. Customers may view your products as substandard if you underprice, especially compared to similar foodservice wholesale distribution companies.

On the other hand, overpriced products will make customers run to your competition. This will damage your business’s reputation and perception. 

Before customers make a purchase decision, they tend to check online retail stores and wholesale marketplaces for the price of wholesale goods. You can do the same when you are about to set your wholesale price.

All in all, striking a balance between what price is obtainable online and your required profit margin will keep everyone satisfied. Here are some factors to consider when pricing your product:

• Understand your customers, knowing what they’re willing to pay for a product will help you set the perfect price.
• Evaluate your competition, check their price and look for a way to beat that price.
• Understand your overhead costs, including inventory carrying fees, shipping costs, and business operating costs.
• Create revenue objectives for each product to monitor its performance and how customers respond to set prices.
• Find Your Customers

This is the critical part of starting a business. Knowing where to find your target customers will help you to market your product and make sales leading to high ROI .

You may need to launch various wholesale marketing campaigns and monitor your eCommerce metrics . Using eCommerce marketing strategies like eCommerce email marketing , eCommerce content marketing , and eCommerce marketing automation tools will help you get results faster.

• Pick Your Team

The truth is you can't do it alone. You need an eCommerce team structure that will help with your business operations.

You can start with a small team and hire more people as your business grows. Here are some key departments and roles in any distribution business that need to be staffed :

• Warehouse manager
• Inventory control manager
• Order management specialist
• Wholesale marketing team
• Shipping and logistics team
• Product team
• Get Your Resources Ready

Besides having a great team, integrating the best tools into your wholesale food distribution business will streamline numerous aspects of your operations. For instance, a wholesale distribution management system offers an all-in-one eCommerce solution for wholesalers. Be sure to also include tools that will help with calculations, such as inventory turnover .

Here's a list of tools and resources you need for your business:

• Warehouse distribution management tools
• Inventory management tools
• Vendor management tools
• Payment processing tools
• Order processing tools

Scaling a Wholesale Food Distribution Business

In order for a business to become successful, it needs to be scalable. That is true no matter the industry or market. That’s why we’ll share some tips regarding scaling a wholesale food distribution business.

• Automation is key . Thanks to automation, companies can increase the productivity of their staff and maximize profits. Automation also allows businesses to become more resilient to potential risks such as labor shortages and fast growth.
• Invest in technology . With the help of software solutions like BlueCart , wholesale food distribution businesses can significantly improve the tracking and ordering process for their customers. Investments in technology are a must nowadays.
• Identify growth opportunities . In order to scale a food distribution business, you need to properly understand customer needs, target markets, and demand. This can be done through extensive market analysis and research. Search for market gaps that your business can easily fill. Although this has the potential to lead to a loss of focus, it can open a food distribution business to new opportunities and markets.
• Improve the efficiency of distribution channels . Although it can be more profitable to do all business processes in-house, this can slow growth and reduce scalability. Instead, consider outsourcing certain tasks like logistics. This will allow you to scale your food distribution business to new markets easily without major upfront investments. ‍
• Focus on customer service and quality assurance . One of the challenges for companies that grow quickly is that the quality of their services or products starts declining. This can have a negative impact in the long run as it is hard to recover from a bad reputation and negative reviews.

Frequently Asked Questions About Starting Wholesale Foods Distribution Business

Starting a wholesale food distribution business requires adequate planning and the right resources. Let's answer more related questions you may have.

What Is Food Distribution?

Food distribution is the process of making food items available to wholesalers, retailers, and consumers. To make food distribution possible, the food distribution channels must work together in balance.

What Is a Wholesale Distributor?

A wholesale distributor serves as an intermediary between a manufacturer and a retailer . The wholesale distributor buys products in large quantities from manufacturers and resells them in small amounts to consumer-facing businesses.

What are the 5 Pricing Techniques?

Here are the five pricing techniques to help you attract more customers for your business :

• Price skimming : Listing a product price as high as possible and then gradually lowering it until it meets the market average.
• Market penetration pricing : Setting the price of a product low at its initial entry into the market.
• Premium pricing : Keeping the price set higher than your competitors to create a perception of luxury.
• Economy pricing : Lowering the price of products due to the low costs of production.
• Bundle pricing : Grouping products into bundles and selling them at a single price.

Ready, Set, Go!

Starting a wholesale food distribution business comes with many benefits and profits. With a great team and wholesale management system, you can get an ROI quickly.

This guide's recommendations and strategies will help you start your business. Remember to do your research before launching your wholesale food distribution business. This will help you prepare for any situation.

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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Distribution Business Plan Template

Written by Dave Lavinsky

Distribution Company Business Plan

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

If you’re unfamiliar with creating a distribution company 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 easily write a distribution company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Distribution Company Business Plan?

A business plan provides a snapshot of your distribution company 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 Distribution Company

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

Sources of Funding for Distribution Businesses

With regards to funding, the main sources of funding for a distribution 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 distribution businesses.

Finish Your Business Plan Today!

How to write a business plan for a distribution company.

If you want to start a distribution company or expand your current one, you need a business plan. The guide below details the necessary information for how to easily write each essential component of your distribution company 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 distribution business you are running and the status. For example, are you a startup, do you have a distribution company that you would like to grow, or are you operating a chain of distribution businesses?

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

• Give a brief overview of the distribution industry.
• Discuss the type of distribution 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 distribution business you are operating.

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

• Exclusive Distribution Business: Operates as the sole distributor for its client in a specified region.
• Direct Distribution Business: Sells products directly to retail stores.
• Selective Distribution Business: Typically operates in niche industries with limited retailers.
• Intensive Distribution Business: Provides distribution services to a high number of retailers.

In addition to explaining the type of distribution company 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, the number of retailers secured, reaching $X amount in revenue, 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 distribution industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the distribution 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 distribution company business plan:

• How big is the distribution 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 distribution 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 distribution company business plan must detail the customers you serve and/or expect to serve.

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

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

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

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

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Competitive Analysis

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

Direct competitors are other distribution businesses.

• What types of customers do they serve?
• What type of distribution 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 offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

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

Marketing Plan

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

Product : In the product section, you should reiterate the type of distribution company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide exclusive distribution services, selective distribution services, intensive distribution services, or direct distribution services?

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

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

Promotions : The final part of your distribution company 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 distribution business, including answering calls, scheduling shipments, billing clients and collecting payments, etc.

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

Management Team

To demonstrate your distribution company’s’ 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 distribution 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 distribution company.  

Financial Plan

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

Income Statement

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 distribution 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

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

• Cost of equipment and office supplies
• Cost of rent or mortgage on a facility
• Cost of purchasing and maintaining trucks/trailers
• 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 copy of the wholesaler and auto insurance policies you’ve purchased.  

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

Distribution Company Business Plan Template FAQs

What is the easiest way to complete my distribution company business plan.

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

How Do You Start a Distribution Company Business?

Starting a distribution company business is easy with these 14 steps:

• Choose the Name for Your Distribution Company Business
• Create Your Distribution Company Business Plan
• Choose the Legal Structure for Your Distribution Company Business
• Secure Startup Funding for Your Distribution Company Business (If Needed)
• Secure a Location for Your Business
• Register Your Distribution Company 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 Distribution Company Business
• Buy or Lease the Right Distribution Company Business Equipment
• Develop Your Distribution Company Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Distribution Company Business
• Open for Business

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

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan services can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

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.

Create your distribution business plan online!

Think your distribution business could be profitable? Find out how with a business plan!

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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Top 10 Distribution Plan Templates with Samples and Examples

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

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

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

What is a distribution plan?

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

That's where a distribution plan comes in!

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

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

How to create a distribution plan?

To establish a distribution plan that benefits your organization:

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

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

Let’s explore!

Template 1: Distribution Plan Strategy Manufacturer Wholesaler and Retailer Template

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

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Template 2: Distribution Management Plan PowerPoint Slide

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

Template 3: Sales and Distribution Plan PowerPoint Template

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

Template 4: Distribution PowerPoint Slide Bundle

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

Template 5: Content Distribution PPT Template

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

Template 6: Content Distribution Matrix PPT Template

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

Template 7: Sales and Distribution Plan for Electronics Industry Template

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

Template 8: Sales and Distribution Plan for Food Industry Template

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

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

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

Template 10: Major Types of Distribution Channels Intermediaries Template

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

SEE DISTRIBUTION AS BUSINESS BACKBONE

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

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Food Distribution Business Plan

$59.00 $39.00 3 reviews

Resources On Food Distribution

• Financial Model
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model
• Description

Executive Summary

Products & services, market analysis.

• Management Plan
• Financial Plan

FreshServe aims to tackle the problem of inefficient and unreliable food distribution in the New York City area. Currently, businesses often have to deal with multiple suppliers for their various food product needs, causing confusion and inefficiencies in their operations. Additionally, many suppliers may not prioritize product quality and safety, leading to potentially dangerous food products being sold to businesses.

With FreshServe, businesses will have access to a one-stop-shop for all their food product needs, with a focus on high-quality and safe products sourced directly from reputable manufacturers and suppliers. Our delivery services will also provide added convenience, saving businesses time and resources that can be used to focus on their own operations.

We believe that there is a clear need in the market for a reliable and efficient food distribution partner, and FreshServe aims to fill that gap by providing top-quality products and services to businesses in the New York City area.

FreshServe will provide high-quality food products to grocery stores, restaurants, and other food-related businesses in the New York City area. Our products will include a variety of fresh fruits, vegetables, meat, dairy, and other food items sourced directly from reputable manufacturers and suppliers. We will strive to maintain the highest standards of product quality and safety while offering competitive prices to our customers.

In addition to providing top-quality food products, FreshServe will also offer delivery services to our customers, making it even more convenient for businesses to receive all of the products they need. By becoming a one-stop-shop for food-related businesses, FreshServe aims to promote convenience, affordability, and reliability in the food distribution industry.

Target Market

Our target market consists of grocery stores, restaurants, and other food-related businesses in the New York City area. These businesses are in need of a reliable and convenient food distribution partner who can supply them with high-quality food products at competitive prices. We will focus on building strong relationships with our customers and providing excellent customer service to ensure repeat business. Additionally, we will strive to expand our customer base to other regions in the US as we grow and develop our business operations.

Competition

Our main competitors in the food distribution market are other wholesale companies that supply food products to grocery stores, restaurants, and other food-related businesses. These companies have established relationships with manufacturers and offer similar products and services to what we aim to provide. They also have a presence in the New York City area, making it essential for us to differentiate ourselves and provide exceptional service to compete effectively.

Additionally, businesses have the option to purchase food products directly from manufacturers, cutting out the middleman and potentially saving on costs. However, this option requires significant resources and expertise in supply chain management, which many businesses may not possess. Therefore, our convenient one-stop-shop and delivery services provide a significant advantage over this alternative.

Financial Summary

Here are some key highlights of our financial plan:

• Start-up costs will include inventory purchase, equipment and facility acquisition, and recruitment of a skilled sales team and reliable fleet of vehicles.
• We project a total start-up cost of $500,000, which we plan to secure through a combination of equity investment and loans.
• We aim to generate $1.5 million in revenue in our first year of operation.
• Our gross profit margin on food products sold to businesses will be 20%, and we project a net profit margin of 10% in our first year.
• We plan to reinvest a portion of our profits back into the business to support our expansion goals to other regions in the US.

Funding Requirements

Our start-up costs for FreshServe have been estimated at $500,000. To cover these costs, we will seek investors and/or lenders who share our vision of revolutionizing the food distribution industry. The following is a breakdown of the funding requirements:

• $200,000 for the purchase of inventory, equipment, and facilities
• $100,000 for the hiring of a skilled sales team
• $100,000 for the reliable fleet of vehicles to support our delivery services
• $50,000 for marketing and advertising to build brand awareness
• $50,000 for legal and administrative costs

We are confident that with this initial investment, FreshServe will become a profitable business that helps meet the growing demand for high-quality food products in the New York City area and beyond. Investors and lenders who partner with us will not only help us achieve our goals but will also benefit from our success.

Milestones and Traction

As a food distribution business, we have identified a clear roadmap to achieve our goals and objectives. Here are the specific milestones we plan to hit:

Meeting these milestones is crucial to our success as a food distribution business. We are confident in our ability to achieve these goals and establish FreshServe as a leading player in the industry, serving businesses with convenience, affordability, and reliability.

Problem Worth Solving

One of the key pain points in the food industry is the challenge of finding high-quality and affordable food products that meet the specific needs of businesses. Grocery stores, restaurants, and other food-related businesses often have unique requirements for the food products they purchase, such as specific types of fruits and vegetables, cuts of meat, or dairy products. This can make it difficult for businesses to find all of the products they need in one place, leading to a fragmented and inefficient supply chain.

At FreshServe, we aim to solve this problem by providing a convenient one-stop-shop for businesses to purchase all of their necessary food products. We source our products directly from reputable manufacturers and suppliers, ensuring the highest quality and safety standards. Additionally, our focus on economies of scale allows us to offer competitive prices to our customers, further reducing the burden on businesses' budgets. With our delivery services, we aim to provide even greater convenience, enabling businesses to receive all of their necessary products right at their doorstep. By addressing these pain points, we believe that FreshServe can revolutionize the food distribution industry and become the go-to partner for businesses in the New York City area and beyond.

Our Solution

Validation of problem and solution, product overview.

The food distribution industry in the US is highly competitive, with established players such as Sysco and US Foods dominating the market. These companies operate on a large scale, supplying food products to a wide range of businesses across the country.

However, FreshServe aims to differentiate itself from its competitors by focusing on providing high-quality food products to businesses in the New York City area. Our emphasis on sourcing products directly from reputable manufacturers and suppliers allows us to offer a range of fresh fruits, vegetables, meat, dairy, and other food items to our customers. Additionally, our commitment to maintaining the highest standards of product quality and safety sets us apart from other wholesalers who may prioritize margins over product quality.

Furthermore, FreshServe aims to provide a seamless and efficient experience for our customers by offering a convenient one-stop-shop for food-related businesses to purchase all of their necessary products in one place. Our delivery services add another layer of convenience for our customers, allowing them to receive all of the products they need without leaving their premises. With our focus on providing top-quality products and services to our customers, we aim to become the go-to food distribution partner for businesses in the New York City area and beyond.

Roadmap: Products & Services

As a food distribution business, FreshServe aims to provide high-quality food products to businesses in the New York City area, while promoting convenience, affordability, and reliability. The following is a roadmap outlining the steps taken so far, along with an outline of steps we plan to take in establishing and growing our business:

Market Segmentation

As a food distribution business, our potential customers can be segmented into three categories: grocery stores, restaurants, and food-related businesses. Grocery stores make up a large segment of the market due to their high demand for food products. Restaurants are another significant segment, as they require a constant supply of fresh ingredients to prepare their dishes. Food-related businesses, such as catering services or meal kit companies, also represent a growing segment due to the increased popularity of at-home meal preparation. The size of each segment can vary depending on location and competition, but there is significant market potential in each.

Target Market Segment Strategy

Our ideal customer is a food-related business such as a grocery store or restaurant that requires a reliable and convenient one-stop-shop for their food product needs. We aim to provide these businesses with cost-effective solutions by offering economies of scale through our wholesale pricing model and a wide variety of food products to choose from. We also understand the importance of timely delivery, which is why we offer reliable fleet services to ensure our customers receive their products on time. By prioritizing the needs of our customers and building strong relationships, we aim to become their preferred supplier for all of their food-related needs.

Key customers

Our ideal customer archetype is a medium-sized restaurant that values quality, convenience, and affordability. They prioritize having a reliable supplier of fresh, high-quality food products and appreciate the convenience of a one-stop-shop for all of their food-related needs. This customer is also tech-savvy and appreciates the ease of ordering and tracking deliveries through our online platform. They are our main advocates, providing positive word-of-mouth referrals to other businesses in the industry.

Future Markets

Based on our market analysis, the wholesale food distribution model continues to be the most popular and effective way for food-related businesses to purchase their necessary products. As such, we expect the demand for our services to remain strong in the foreseeable future. However, we also recognize the increasing demand for organic and locally sourced products, and we plan to expand our supplier relationships to include these types of products to meet the evolving needs of our customers. Additionally, we plan to explore opportunities to expand our delivery services beyond our current geographic market to reach new customers. With these strategies in place, we are confident in our ability to continue growing and thriving in the food distribution industry.

As with any industry, there are several potential competitors in the food distribution market. Here is a table of some of the main players:

It is important for our business to differentiate ourselves from these competitors by focusing on providing the highest quality products, excellent customer service, and competitive pricing.

Marketing and Sales Plan

Marketing and advertising strategy.

Our marketing and advertising strategy will focus on building strong relationships with our target customer segments, including grocery stores, restaurants, and food-related businesses. We will utilize a mix of digital marketing channels, such as social media advertising and email marketing, as well as traditional advertising channels like print ads and flyers. Our goal is to establish our brand as a trusted and reliable supplier of quality food products while also highlighting the convenience and cost savings offered by our one-stop-shop and delivery services.

Location and Facilities

Equipment and tools.

Our food distribution business requires various equipment and tools to effectively carry out our key activities. Here is an outline of the required equipment or tools and their associated costs:

Investing in the proper equipment and tools is essential to our business's success. Our refrigerated trucks and inventory management system ensure that we can safely transport and store perishable food products. Pallet jacks and forklifts make the movement of inventory efficient. Warehouse shelves and equipment allow for organized inventory storage. Delivery vehicles enable us to provide our customers with timely, reliable deliveries. While the costs associated with these equipment and tools may be significant, they are necessary for our business to operate effectively and serve our customers to the best of our ability.

Management and Organization

Organizational structure.

Our food distribution business follows a hierarchical structure to ensure efficient operations and clear lines of communication. The following table outlines the roles and responsibilities of specific employees:

The flow of information between levels of the organization is primarily top-down and bottom-up. The CEO and general manager communicate with each other regularly and provide guidance to their respective departments. The sales, operations, and delivery departments communicate regularly with each other to ensure smooth operations, while the IT department supports all departments with technical expertise.

Management Team

As our food distribution business grows, we anticipate bringing on a diverse team of high-level managers with experience in the food industry and business operations. Below is a table of potential candidates we have identified:

Management Team Gaps

Currently, our management team is made up of experienced professionals in the food distribution industry. However, we recognize that as we grow, there may be positions or areas of expertise that we do not have candidates ready to fill those roles. Specifically, we may need to bring on individuals with background in finance, technology, and marketing to support our growth and innovation efforts. We plan to address these gaps by actively seeking and recruiting top talent to join our team as needed.

Personnel Plan

Running a successful food distribution business requires a team of skilled professionals with a variety of roles to ensure smooth operations. The following HTML table outlines potential positions and their responsibilities:

Company History and Ownership

FreshServe was founded in 2021 by a team of experienced business professionals with years of knowledge in the food industry. The team identified a need for a reliable and affordable food distribution business in the New York City area, and FreshServe was born.

The company is privately owned by the founders and has plans to remain a privately held company. We believe that this will allow us to maintain a focused and customer-centric approach to our operations, while allowing us to make business decisions based on our own values and priorities.

Our founders have a combined experience of over 30 years in the food industry, and they have leveraged their knowledge and expertise to create a business model that addresses the pain points that many food-related businesses face in the industry. With a focus on quality, convenience, and affordability, FreshServe aims to revolutionize the food distribution industry in the US and beyond.

As part of our management and organization plan, we have developed a detailed roadmap of milestones to achieve specific goals and objectives that will steer our business towards success. These include:

By achieving these milestones, we will be able to establish FreshServe as a top-quality food distribution business in the New York City area and set the foundation for future expansion in other regions of the US.

Key Metrics

As the manager or owner of a food distribution business, tracking key performance indicators (KPIs) is essential to understanding the overall health and performance of your business. Some key metrics you should consider tracking include:

• Sales revenue
• Gross margin
• Inventory turnover
• Customer acquisition cost
• Customer retention rate
• Delivery performance (on-time delivery, order accuracy)

By regularly tracking and analyzing these KPIs, you can identify areas of strength and weakness within your business, and use that information to make data-driven decisions that improve your overall performance.

Financial Plan and Metrics

Sales forecast.

Below is the projected sales forecast for the next three years (2023, 2024, 2025) broken down by product categories:

We anticipate steady growth in sales over the next three years as we expand our customer base and operations. Our skilled sales team will work diligently to acquire new clients, while our focus on delivering high-quality products at competitive prices will retain existing customers and encourage repeat business.

In order to start and operate our food distribution business, we will incur both startup costs and ongoing operational expenses. Below are the expected or incurred costs for each:

Startup Costs:

Operational expenses:.

It's important to note that these are just estimates and actual costs may vary. However, we have carefully considered all expenses and believe that they are necessary for the successful operation of our business. We will regularly monitor our expenses to ensure that we are operating efficiently and maximizing profits.

Projected Profit and Loss

Our Food Distribution Business Plan is built on a strong financial foundation, with a three-year profit and loss forecast. The following table outlines our projected revenue, expenses, and profits for the years 2023, 2024, and 2025.

Based on our revenue projections and cost structure, we anticipate steady growth and profitability over the next three years. We are confident in our business model and look forward to achieving financial success while providing top-quality food products and services to our customers.

Projected Cash Flow

Below is a projected cash flow statement for the next three years (2023, 2024, 2025) for our food distribution business:

Our projected cash inflow includes revenue generated from the markup on food products and delivery fees, while the projected outflow includes the cost of purchasing food products, warehouse/storage costs, salaries/commissions for our sales team, and maintenance and operating costs for our fleet of vehicles.

As we continue to scale our business in the years to come, we anticipate steady growth in our net cash flow and cumulative net cash flow, providing us with the financial stability needed to expand our operations and reach in other regions of the US.

Projected Balance Sheet

Based on our financial projections, we expect to see steady growth in our assets over the next three years as our business expands and our customer base grows. Our liabilities and equity will also increase proportionately, with equity staying in line with liabilities. This balance sheet statement will be an important tool in monitoring our financial health and guiding our decision-making processes.

Our food distribution business will require a skilled sales team for customer acquisition and account management. We plan to hire experienced professionals who are knowledgeable about the food industry and can establish strong relationships with our suppliers and customers.

Employee compensation will be competitive and based on experience, with opportunities for performance-based bonuses. We will also provide benefits such as health insurance and retirement savings plans.

Our employees will be an integral part of our business operations, ensuring efficient order processing, inventory management, and timely delivery services. As the business grows, we plan to hire additional staff to support our expansion.

Use of Funds

Below is an overview of how we plan to use the funds raised to start and grow our food distribution business:

These funds will be used to cover our start-up costs and initial operating expenses as we work towards becoming a profitable and sustainable business. We are committed to using our resources wisely and efficiently to achieve our goals and deliver top-quality food products and services to our customers.

Exit Strategy

Our eventual exit strategy from the food distribution business is to explore acquisition possibilities by larger players in the industry. We aim to build a strong track record, brand, and reputation that make us an attractive acquisition target. Alternatively, we may consider selling the business at an appropriate time or even passing it along to a trusted family member or employee. However, our focus remains on building a profitable and sustainable business in the short and long term.

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Food Distributor

FICTIONAL BUSINESS PLAN

COMMERCIAL FOODS, INC.

3003 Avondale Ave. Knoxville, TN 37920

October 1992

This fictional plan demonstrates how a partnership can have a positive impact on a new business. It demonstrates how two individuals can carve a niche in the specialty foods market by offering gourmet foods to upscale restaurants and fine hotels. This plan is fictional and has not been used to gain funding from a bank or other lending institution.

STATEMENT OF PURPOSE

Description of the business, products and services, competition, pro forma income statement.

• FINANCIAL STATEMENTS

Commercial Food, Inc. seeks a loan of $75,000 to establish a new business. This sum together with $5,000 equity investment by the principals will be used as follows:

Commercial Foods, Inc. will be a distributor of specialty food service products to hotels and upscale restaurants in the geographical area in a 50-mile radius of Knoxville. Richard Roberts will direct the sales effort and John Williams will manage the warehouse operation and the office. One delivery truck will be used initially with a second truck added in the third year.

We expect to begin operation of the business within 30 days after securing the requested financing.

A. Richard Roberts is a native of Memphis, Tennessee. He is a graduate of Memphis State University with a Bachelor's degree from the School of Business. After graduation, he worked for a major manufacturer of specialty food service products as a detail sales person for five years and for the past three years, he has served as a product sales manager for this firm.

B. John Williams is a native of Nashville, Tennessee. He holds a B.S. Degree in Food Technology from the University of Tennessee. His career includes five years as a product development chemist in gourmet food products and five years as operations manager for a food service distributor.

Both men are healthy and energetic. Their backgrounds complement each other which will ensure the success of Commercial Foods, Inc. They will set policies together and personnel decisions will be made jointly. Initial salaries for the owners will be $ 1,000 per month for the first few years. The spouses of both principals are successful in the business world and earn enough to support the families.

They have engaged the services of Foster Jones, CPA, and William Hale, Attorney to assist them in an advisory capacity.

The firm will employ one delivery truck driver at a wage of $8.00 per hour. One office worker will be employed at $7.50 per hour. One part-time employee will be used in the office at $5.00 per hour. The driver will load and unload his own trucks. Mr. Williams will assist in the warehouse operation as needed to assist one stock person at $7.00 per hour. An additional delivery truck and driver will be added the third year.

The firm will lease a 20,000 square foot building at 3003 Avondale Ave., in Knoxville, which contains warehouse and office areas equipped with two-door truck docks. The annual rental is $9,000. The building was previously used as a food service warehouse and very little modification to the building will be required.

The firm will offer specialty food service products such as soup bases, dessert mixes, sauce bases, pastry mixes, spices, and flavors, normally used by upscale restaurants and nice hotels. We are going after a niche in the market with high quality gourmet products. There is much less competition in this market than in standard run of the mill food service products. Through their work experiences, the principals have contacts with supply sources and with local chefs.

We know from our market survey that there are over 200 hotels and upscale restaurants in the area we plan to serve. Customers will be attracted by a direct sales approach. We will offer samples of our products and product application data on use of our products in the finished prepared foods. We will cultivate the chefs in these establishments. The technical background of John Williams will be especially useful here.

We find that we will be only distributor in the area offering a full line of gourmet food service products. Other foodservice distributors offer only a few such items in conjunction with their standard product line. Our survey shows that many of the chefs are ordering products from Atlanta and Memphis because of lack of adequate local supply.

Commercial Foods, Inc. will be established as a foodservice distributor of specialty food in Knoxville. The principals, with excellent experience in the industry are seeking a $75,000 loan to establish the business. The principals are investing $25,000 as equity capital.

The business will be set up as an "S" Corporation with each principal owning 50% of the common stock in the corporation.

Attached is a three year pro forma income statement we believe to be conservative. Also attached are personal financial statements of the principals and a projected cash flow statement for the first year.

FINANCIAL STATEMENT I

FINANCIAL STATEMENT II

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Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

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

We have helped over 100,000 entrepreneurs and business owners with how to write a restaurant business plan to help them start or grow their restaurants.

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

Restaurant Business Plan Example

Executive summary, business overview.

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, Bluehorn Restaurant & Steakhouse’s mission is to become Oklahoma City’s best, new restaurant for patrons to celebrate their next big event, have a nice date night, or gather with friends or family for a fun evening while dining over finely crafted entrees, desserts, and cocktails.

Products Served

The following are the menu items to be offered by Bluehorn Restaurant & Steakhouse:

• Soups & Salads
• Gourmet sides
• Wine, Beer & Spirits

Customer Focus

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.

Management Team

Bluehorn Restaurant & Steakhouse is owned and operated by fellow Oklahoma City natives and culinary enthusiasts, Chef Peter Logan and Anastasia Gillette. Both come with a unique skill set and complement each other perfectly. They formerly worked together at another OKC fine dining establishment and made a great team for serving guests delectable food and wine while ensuring the highest level of customer service.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse, while Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations.

Financial Highlights

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The funding will be dedicated for the build-out and design of the restaurant, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Restaurant Build-Out and Design – $100,000
• Kitchen supplies and equipment – $100,000
• Opening inventory – $25,000
• Working capital (to include 3 months of overhead expenses) – $25,000
• Marketing (advertising agency) – $25,000
• Accounting firm (3 months worth and establishment/permitting of business) – $25,000

Company Overview

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. Bluehorn Restaurant & Steakhouse will serve a wide variety of dishes and beverages and will cater to the upper middle class to wealthier population of Oklahoma City. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The Plaza District is one of Oklahoma’s trendy neighborhoods and is considered the “it” area for newlyweds, millennials, professionals, and young singles. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, the restaurant’s mission statement is to become the best new steak restaurant in OKC. The following are the types of menu items Bluehorn Restaurant & Steakhouse will serve- shareables, steaks, soups, gourmet sides and salads.

Bluehorn Restaurant & Steakhouse History

Bluehorn Restaurant & Steakhouse is owned by two Oklahoma City natives, Chef Peter Logan and Anastasia Gillette. They have both worked around the country in fine dining establishments and have a combined twenty years in the restaurant industry. Upon working alongside each other at another fine dining establishment in Oklahoma City, the two of them became good friends and decided to venture into owning their own restaurant.

Chef Peter is the kitchen guru and critically acclaimed chef, while Anastasia manages the front of the house and is a certified Sommelier. Together, with both of their expertise and knowledge, Bluehorn Restaurant & Steakhouse is destined to become Oklahoma City’s next big restaurant.

Industry Analysis

The Restaurant industry is expected to grow to over $220 billion in the next five years.

Consumer spending is projected to grow. The Consumer Confidence Index, a leading indicator of spending patterns, is expected to also grow strongly, which will boost restaurant industry growth over the next five years. The growth in consumer confidence also suggests that more consumers may opt to segment their disposable income to eating outside the home.

Additionally, an increase in the number of households earning more than $100,000 annually further contributes to the industry growth, supporting industry operators that offer more niche, higher-end products.  This group is expected to continue to grow in size over the next five years.

The urban population represents a large market for the industry. Specifically, time-strapped individuals living in urban areas will likely frequent industry establishments to save time on cooking. The urban population is expected to increase, representing a potential opportunity for the industry.

Customer Analysis

Demographic profile of target market, customer segmentation.

Bluehorn Restaurant & Steakhouse will primarily target the following customer profile:

• Upper middle class to wealthier population
• Millennials
• Young professionals
• Households with an average income of at least $75k
• Foodies and culture enthusiasts

Competitive Analysis

Direct and indirect competitors.

Bluehorn Restaurant & Steakhouse will be competing with other restaurants in Oklahoma City. A profile of each competitor is below. The Press Located in the trendy area known as the Plaza District, The Press has reimagined our favorite foods of the surrounding regions through the lens of home.

The menu consists of appetizers, soups, burgers and sandwiches, bowls, main dishes, sides, desserts, and a large selection of alcoholic beverages. The Press serves craft beer, domestic beer, wine spritzers, house cocktails, wine, and mimosas. They also offer brunch. The menu of The Press is affordable with the most expensive dish being $16. The wine menu is also not pretentious as the wine is sold either by the glass or bottle, with the most expensive bottle being $52 for the Gruet Sparkling Brut Rose. Oak & Ore Oak & Ore is a craft beer and restaurant in OKC’s Plaza District. They have a 36-tap beer selection and offer vegetarian, vegan, and gluten free dining options. Oak & Ore offers a rotating, 36-tap selection of their favorite brews from Oklahoma and around the world. Each beer is thoughtfully paired with a craft beer-inspired dining experience.

The food menu of Oak & Ore offers starters, salads, wings, fried chicken, sandwiches, tacos, banh mi, and sides. They also have a selection of kids dishes so the whole family can enjoy comfort food while sampling one of their delectable beers.

The Mule OKC The Mule is a casual, hip restaurant offering a large beer and cocktail menu plus sandwiches and more. Located in the constantly growing and buzzing hub that is the Plaza District, The Mule takes the timeless favorite and contorts it into a whole menu of wild offerings.

There is also a fantastic assortment of soups offered and The Mule shakes up a seasonal list of cocktails designed by their bar staff. During the winter months, patrons can stave off the cold with their versions of hot toddies and buttered rum. For the beer drinkers, they always have a reliable line-up of fresh cold brews on draft, as well as a wide selection of can.

Competitive Advantage

Bluehorn Restaurant & Steakhouse offers several advantages over its competition. Those advantages are:

• Gourmet dishes elegantly prepared to the finest standard.
• Selection of steaks sourced from local Oklahoma farms.
• An exclusive and unique wine menu that includes a wine selection of all price points.
• Highly sought after location: Bluehorn Restaurant & Steakhouse will be located in the trendy and attractive neighborhood known as The Plaza District.
• Trendy, welcoming, and energetic ambiance that will be perfect for a night out or a celebration.

Marketing Plan

Promotions strategy.

The marketing strategy for Bluehorn Restaurant & Steakhouse is as follows: Location Bluehorn Restaurant & Steakhouse’s location is a promotions strategy in itself. The Plaza District is a destination spot for locals, tourists, and anyone looking for the trendiest food fare in Oklahoma City. The Plaza District is home to OKC’s most popular bars and restaurants, art galleries, theaters, and boutique shopping. The millennials, young professionals, and foodies will frequent Bluehorn Restaurant & Steakhouse for the location itself.

Social Media Bluehorn Restaurant & Steakhouse will use social media to cater to the millennials and Oklahoma City residents. Chef Peter and Anastasia plan to hire an advertising agency to take professional photographs of the menu items and location to create appealing posts to reach a greater audience. The posts will include pictures of the menu items, as well as upcoming featured options. SEO Website Marketing Bluehorn Restaurant & Steakhouse plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local fine dining restaurant” or “Oklahoma City restaurant”, Bluehorn Restaurant & Steakhouse will appear in the top three choices. The website will include the full menu, location, hours, and lots of pictures of the food, drinks, and steaks. Third Party Delivery Sites Bluehorn Restaurant & Steakhouse will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food to be delivered will see Bluehorn Restaurant & Steakhouse listed near the top.

Operations Plan

Operation functions:.

The company will hire the following:

• 4 sous chefs
• 2 bartenders
• 2 hostesses
• The company will hire an advertising agency and an accounting firm

Milestones:

Bluehorn Restaurant & Steakhouse aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.

7/1/202X – Execute lease for prime location in the Plaza District.

7/2/202X – Begin construction of restaurant build-out.

7/10/202X – Finalize menu.

7/17/202X – Hire advertising company to begin developing marketing efforts.

8/15/202X – Start of marketing campaign

8/22/202X – Final walk-thru of completed restaurant build-out.

8/25/202X – Hire team of sous chefs, servers, and bussers.

9/1/202X – Decoration and set up of restaurant.

9/15/202X – Grand Opening of Bluehorn Restaurant & Steakhouse

Bluehorn Restaurant & Steakhouse will be owned and operated by Chef Peter Logan and Anastasia Gillette. Each will have a 50% ownership stake in the restaurant.

Chef Peter Logan, Co-Owner

Chef Peter Logan is an Oklahoma City native and has been in the restaurant industry for over ten years. He was trained in a prestigious Le Cordon Bleu Culinary Academy in San Francisco and has worked in some of the nation’s most prestigious fine dining restaurants. His tenure has took him from the west coast to the east coast, and now he’s back doing what he loves in his hometown of Oklahoma City.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse. He will train and oversee the sous chefs, manage inventory, place food inventory orders, deal with the local food vendors, and ensure the highest customer satisfaction with the food.

Anastasia Gillette, Co-Owner

Anastasia Gillette was born and raised in Oklahoma City and has garnered over ten years in the restaurant industry as well. While in college, Anastasia worked as a hostess at one of the area’s most prestigious restaurant establishments. While there, she was eventually promoted to Front of the House Manager where she oversaw the hostesses, servers, bussers, bartenders, and reservations. Her passion always led to the beverage portion of the restaurant so she obtained her Sommelier certificate in 2019. With her wine education, Anastasia is able to cultivate an interesting and elegant wine selection for the restaurant.

Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations. She will also be in charge of the bar and wine ordering, training of front of the house staff, and will manage the restaurant’s social media accounts once they are set up.

Financial Plan

Key revenue & costs.

The revenue drivers for Bluehorn Restaurant & Steakhouse will come from the food and drink menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items as well as the cooking materials. A significant cost driver is the fine dining equipment, serving dishes, and beer and wine glasses. Other cost drivers will be the overhead expenses of payroll for the employees, accounting firm, and cost of the advertising agency.

Funding Requirements and Use of Funds

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The breakout of the funding is below:

Financial Projections

Income Statement

  Balance Sheet

  Cash Flow Statement

Restaurant Business Plan FAQs

What is a restaurant business plan.

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

What Are the Main Types of Restaurants?

There are many types of restaurant businesses. Restaurants can range in type from fast food, fast casual, moderate casual, fine dining, and bar and restaurant types. Restaurants also come in a variety of different ethnic or themed categories, such as Mexican restaurants, Asian restaurants, American, etc.  Some restaurants also go mobile and have food trucks.

How Do You Get Funding for Your Restaurant Business Plan?

Restaurant businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Another option for a restaurant business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates.

What are the Steps To Start a Restaurant Business?

1. Develop A Restaurant Business Plan - The first step in starting a business is to create a detailed restaurant 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 restaurant 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 restaurant business is in compliance with local laws.

3. Register Your Restaurant Business - Once you have chosen a legal structure, the next step is to register your restaurant 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 restaurant 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 Restaurant Equipment & Supplies - In order to start your restaurant 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 restaurant business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful restaurant business:

• How to Start a Restaurant Business

Where Can I Get a Restaurant Business Plan PDF?

You can download our free restaurant business plan template PDF here . This is a sample restaurant business plan template you can use in PDF format.

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A SAMPLE BUSINESS PLAN FOR SMALL FOOD BUSINESSES

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Ethnic Food Import Business Plan

Start your own ethnic food import business plan

Aztec Food Imports

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Aztec Food Imports (Aztec) will offer food product imports from Mexico to meet increased demand for these product by the city’s growing Hispanic/Latino community in the greater Richmond area. Over the last five years, this community has grown by 70%,  and represents half of the Richmond Metro population (250,000).  Aztec has been successful over the competition in supplying imported mexican food products to the area’s two PriceRight supermarkets.  From this base, Aztec will build a successful business serving the area’s large and small markets.

1.1 Objectives

• Establish Aztec Food Imports as the number one importer of mexican food products in Richmond.
• Increase the number of mexican food products being carried in local markets by 20% over the next two years.
• Build solid working relationships with the purchasing agents of the local stores serving Richmond’s growing Hispanic/Latino population.

1.2 Mission

Aztec’s mission is to supply Mexican food imports to Richmond stores which are currently being poorly served by importers located over 150 miles away. Raymond Garcia, co-owner of Aztec, will utilize his importing background, his experience in the food retail market, as well as his contacts in Mexico to bring in products that area customers demand.

1.3 Keys to Success

The keys to success in Aztec’s business are:

• A reliable administration that is ready to serve customers, prepare accurate billing, follow-up on orders and other documentation, and maintain a close watch on expenses and collection of accounts receivable.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Aztec Food Imports will import Mexican food products to the local markets of the Richmond Metro area. 

2.1 Company Ownership

Aztec’s ownership is shared equally between Raymond Garcia and Jose Arroyo. Raymond has eight years of importing experience. Jose Arroya has 10 years experience in managing imports from Mexico and shipping to the U.S. market. Raymond Garcia is responsible for the daily management, sales, and store deliveries. Jose Arroya is responsible for the quality control and shipping of the goods from Mexico to the U.S.

2.2 Start-up Summary

The start-up cost of Aztec Food Imports will consist primarily of inventory. Raymond Garcia and Jose Arroya will each invest $50,000.  They will also secure a $100,000 SBA loan.

2.3 Company Locations and Facilities

Aztec Food Imports will have warehouse space located in the Fillmore industrial district.

Aztec’s product line is rather extensive amounting to over 200 items:

• Canned foods.
• Chile peppers.
• Packaged foods.
• Spices and herbs.

Aztec also carries the popular brands:

• Juanita’s.
• La Costeña.
• La Lechonera.

Market Analysis Summary how to do a market analysis for your business plan.">

The Hispanic/Latino population in the Richmond Metro area has grown by 10% over the past five years. The current population stands at over 100,000.  It is projected that the population will continue its growth pattern for the next five years and will eventually reach over 160,000.  A majority of these inner-city residents live in family groups of six or more members.  The average household income for the area is $32,000.

There are four major supermarkets that operate in the area and over 50 smaller food stores that serve the metro communities. Last year, the four major supermarkets grossed over $150,000,000 in sales. There are plans to build additional supermarkets in the Richmond Metro area in 2003 and 2004. Two of the current supermarkets in the Richmond Metro area are part the local PriceRight chain.  PriceRight is planning a new store in the area in 2004. 

Though it is difficult to know the exact sales figures for the small markets in the area, traditionally, the community residents have been supportive of the smaller store if their prices are competitive. Last year, Wilson Foods Imports grossed $1.5 million in sales with smaller markets in the Richmond Metro area.

4.1 Market Segmentation

Aztec Food Imports will serve all retail food outlets in the Richmond Metro area. These include neighborhood markets and supermarkets.

4.2 Target Market Segment Strategy

Aztec Food Imports will have two distinct marketing approaches:

• For Neighborhood Markets: Raymond will promote a small group of popular mexican food products that are likely to move fast in smaller stores.  These products will be priced to be attractive to the small store owner.  Once successful, Raymond will expand the product group. 
• For Supermarkets: Raymond will promote the complete line of products that Aztec can provide.  Aztec prices will reflect a stronger import connection in Mexico that will results in lower prices and more product.

4.3 Main Competitors

Currently, Acme Food Importers located in Wilsonville supplies the Richmond area food stores with imported mexican food products. Wilsonville is 150 miles north of Richmond.  Only in the past two years has the demand for these products grown sufficiently to impact Acme’s ability to satisfy demand. Besides the distance, Acme is plagued with weak import connections in Mexico.  These factors contribute to the high wholesale price of Acme’s imported products.

Strategy and Implementation Summary

Aztec Food Imports will focus on becoming the leading provider of wholesale imported mexican food product in the Richmond Metro area.

5.1 Competitive Edge

Raymond Garcia and Jose Arroyo are the competitive edge of Aztec Food Imports. Raymond has worked for both Acme Food Imports and Wilson Food Imports over the past eight years.  In his last position with Wilson, Raymond imported mexican food products to numerous markets in the southwest. He generated sales in excess of $2 million annually. His strength is his customer relations and he has been successful in expanding the range of imported mexican food purchased by the markets in his sales region.

Jose has been a shipping agent for M. Zegarra Exporting located in Mexico City for the past ten years. The company exported $20 million of products to the U.S last year.  Jose’s responsibility was to eliminate the shipping obstacles and oversee the timely delivery of product to the U.S.

5.2 Sales Strategy

Aztec Food Imports will have two distinct sales approaches:

• For Neighborhood Markets: Raymond will promote a small group of popular mexican food products that are likely to move fast in smaller stores.  These items will be packaged as a group at an attractive price.  Raymond will make frequent visits to these stores to build a strong working relationship that will lead to more purchases.
• For Supermarkets: Raymond will promote the complete line of products that Aztec can provide.  Aztec prices will reflect a stronger import connection in Mexico that will results in lower prices and more product. Raymond will promote new seasonal products and provide assistance on marketing the products to the Hispanic/Latino community.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The two owners will co-manage the business.  Raymond Garcia is responsible for the daily management, sales, and store deliveries.  Jose Arroyo is responsible for the quality control and shipping of the goods from Mexico to the U.S.

6.1 Personnel Plan

Aztec Food Imports will have two additional delivery employees and an office manager supervised by Raymond.

Financial Plan investor-ready personnel plan .">

The following sections outline conservative estimates of the financial performance of Aztec Food Imports.

7.1 Break-even Analysis

The monthly break-even point is $26,514.

7.2 Projected Profit and Loss

The following table and charts will highlight the next three years.

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 5149, Groceries and Related Products, are shown for comparison.

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