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Food Distribution Business Plan

Any retail food business is incomplete without a food distribution business, so the growth in this field is wild. But to achieve all the growth you will need an actionable business plan as a roadmap to your business.

Need help writing a business plan for your food distribution business? You’re at the right place. Our food distribution business plan template will help you get started.

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Download our free food distribution business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

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How to Write A Food Distribution Business Plan?

Writing a food distribution business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Describe what kind of food distribution company you run and the name of it. You may specialize in one of the following food distribution businesses:

• Wholesale food distributors
• Specialty food distributors
• Frozen food distributors
• Beverage distributors
• Snack food distributors
• Describe the legal structure of your food distribution company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your food distribution company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your food distribution services from them. Point out how you have a competitive edge in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your food distribution company, such as food & drug administration, state & local regulations, business licensing & regulations, etc.

Here are a few tips for writing the market analysis section of your food distribution business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Bakery items
• Packaged goods
• This may include supplier evaluation & selection, product inspection & testing, temperature control, quality control measures, etc.
• Additional Services: Mention if your food distribution company offers any additional services. You may include services like, menu planning assistance, product customization, private labeling, or assistance with new product development.

In short, this section of your food distribution plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Pricing Strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, email marketing, content marketing, print marketing, etc.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include partnering with other businesses, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts & offers, personalized service, etc.

Overall, this section of your food distributor business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your food distribution business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees or warehouse staff needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your food distribution business. Your operational processes may include sourcing & procurement, inventory management, warehousing & storage, order processing, packing & packaging, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your food distribution business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your food distribution company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. operations manager, customer services manager.) involved in the food distribution business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your food distribution services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your food distribution business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing Needs: Calculate costs associated with starting a food distribution business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your food distribution business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample food distribution business plan will provide an idea for writing a successful food distribution plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our food distribution business plan pdf .

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Frequently asked questions, why do you need a food distribution business plan.

A business plan is an essential tool for anyone looking to start or run a successful food distribution business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your food distribution company.

How to get funding for your food distribution business?

There are several ways to get funding for your food distribution business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your food distribution business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your food distribution business plan and outline your vision as you have in your mind.

What is the easiest way to write your food distribution business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any food distribution business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

What's the importance of a marketing strategy in a food distribution business plan?

Marketing strategy is a key component of your food distribution business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to Start a Wholesale Distribution Business Buy low, sell high: A background in sales and a keen eye for popular merchandise are the keys to success as a wholesale distributor.

Editor's note: This article was excerpted from our Wholesale Business Distribution start-up guide , available from Entrepreneur Bookstore.

So you want to start a wholesale distributorship. Whether you're currently a white-collar professional, a manager worried about being downsized, or bored with your current job, this may be the right business for you. Much like the merchant traders of the 18th century, you'll be trading goods for profit. And while the romantic notion of standing on a dock in the dead of night haggling over a tea shipment may be a bit far-fetched, the modern-day wholesale distributor evolved from those hardy traders who bought and sold goods hundreds of years ago.

The Distributor's Role

According to U.S. Industry and Trade Outlook, published by The McGraw-Hill Companies and the U.S. Department of Commerce/International Trade Administration, wholesale trade includes establishments that sell products to retailers, merchants, contractors and/or industrial, institutional and commercial users. Wholesale distribution firms, which sell both durable goods (furniture, office equipment, industrial supplies and other goods that can be used repeatedly) and nondurable goods (printing and writing paper, groceries, chemicals and periodicals), don't sell to ultimate household consumers.

Three types of operations can perform the functions of wholesale trade: wholesale distributors; manufacturers' sales branches and offices; and agents, brokers and commission agents. As a wholesale distributor, you will probably run an independently owned and operated firm that buys and sells products of which you have taken ownership. Generally, such operations are run from one or more warehouses where inventory goods are received and later shipped to customers.

Put simply, as the owner of a wholesale distributorship, you will be buying goods to sell at a profit, much like a retailer would. The only difference is that you'll be working in a business-to-business realm by selling to retail companies and other wholesale firms like your own, and not to the buying public. This is, however, somewhat of a traditional definition. For example, companies like Sam's Club and BJ's Warehouse have been using warehouse membership clubs, where consumers are able to buy at what appear to be wholesale prices, for some time now, thus blurring the lines. However, the traditional wholesale distributor is still the one who buys "from the source" and sells to a reseller.

Getting Into the Game

The field of wholesale distribution is a true buying and selling game-one that requires good negotiation skills, a nose for sniffing out the next "hot" item in your particular category, and keen salesmanship. The idea is to buy the product at a low price, then make a profit by tacking on a dollar amount that still makes the deal attractive to your customer.

Experts agree that to succeed in the wholesale distribution business, an individual should possess a varied job background. Most experts feel a sales background is necessary, as are the "people skills" that go with being an outside salesperson who hits the streets and/or picks up the phone and goes on a cold-calling spree to search for new customers.

In addition to sales skills, the owner of a new wholesale distribution company will need the operational skills necessary for running such a company. For example, finance and business management skills and experience are necessary, as is the ability to handle the "back end" (those activities that go on behind the scenes, like warehouse setup and organization, shipping and receiving, customer service, etc.). Of course, these back-end functions can also be handled by employees with experience in these areas if your budget allows.

"Operating very efficiently and turning your inventory over quickly are the keys to making money," says Adam Fein, president of Pembroke Consulting Inc., a Philadelphia strategic consulting firm. "It's a service business that deals with business customers, as opposed to general consumers. The startup entrepreneur must be able to understand customer needs and learn how to serve them well."

According to Fein, hundreds of new wholesale distribution businesses are started every year, typically by ex-salespeople from larger distributors who break out on their own with a few clients in tow. "Whether they can grow the firm and really become a long-term entity is the much more difficult guess," says Fein. "Success in wholesale distribution involves moving from a customer service/sales orientation to the operational process of managing a very complex business."

Setting Up Shop

According to Fein, wholesale distribution companies are frequently started in areas where land is not too expensive and where buying or renting warehouse space is affordable. "Generally, wholesale distributors are not located in downtown shopping areas, but off the beaten path," says Fein. "If, for example, you're serving building or electrical contractors, you'll need to choose a location in close proximity to them in order to be accessible as they go about their jobs."

State of the Industry

And that's not all: Every year, U.S. retail cash registers and online merchants ring up about $3.6 trillion in sales, and of that, about a quarter comes from general merchandise, apparel and furniture sales (GAF). This is a positive for wholesale distributors, who rely heavily on retailers as customers. To measure the scope of GAF, try to imagine every consumer item sold, then remove the cars, building materials and food. The rest, including computers, clothing, sports equipment and other items, fall into the GAF total. Such goods come directly from manufacturers or through wholesalers and brokers. Then they are sold in department, high-volume and specialty stores-all of which will make up your client base once you open the doors of your wholesale distribution firm.

All this is good news for the startup entrepreneur looking to launch a wholesale distribution company. However, there are a few dangers that you should be aware of. For starters, consolidation is rampant in this industry. Some sectors are contracting more quickly than others. For example, pharmaceutical wholesaling has consolidated more than just about any other sector, according to Fein. Since 1975, mergers and acquisitions have reduced the number of U.S. companies in that sector from 200 to about 50. And the largest four companies control more than 80 percent of the distribution market.

To combat the consolidation trend, many independent distributors are turning to the specialty market. "Many entrepreneurs are finding success by picking up the golden crumbs that are left on the table by the national companies," Fein says. "As distribution has evolved from a local to a regional to a national business, the national companies [can't or don't want to] cost-effectively service certain types of customers. Often, small customers get left behind or are just not [profitable] for the large distributors to serve."

Starting Out

For entrepreneurs looking to start their own wholesale distributorship, there are basically three avenues to choose from: buy an existing business, start from scratch or buy into a business opportunity. Buying an existing business can be costly and may even be risky, depending on the level of success and reputation of the distributorship you want to buy. The positive side of buying a business is that you can probably tap into the seller's knowledge bank, and you may even inherit his or her existing client base, which could prove extremely valuable.

The second option, starting from scratch, can also be costly, but it allows for a true "make or break it yourself" scenario that is guaranteed not to be preceded by an existing owner's reputation. On the downside, you will be building a reputation from scratch, which means lots of sales and marketing for at least the first two years or until your client base is large enough to reach critical mass.

The last option is perhaps the most risky, as all business opportunities must be thoroughly explored before any money or precious time is invested. However, the right opportunity can mean support, training and quick success if the originating company has already proven itself to be profitable, reputable and durable.

During the startup process, you'll also need to assess your own financial situation and decide if you're going to start your business on a full- or part-time basis. A full-time commitment probably means quicker success, mainly because you will be devoting all your time to the new company's success.

Because the amount of startup capital necessary will be highly dependent on what you choose to sell, the numbers vary. For instance, an Ohio-based wholesale distributor of men's ties and belts started his company with $700 worth of closeout ties bought from the manufacturer and a few basic pieces of office equipment. At the higher end of the spectrum, a Virginia-based distributor of fine wines started with $1.5 million used mainly for inventory, a large warehouse, internal necessities (pallet racking, pallets, forklift), and a few Chevrolet Astro vans for delivery.

Like most startups, the average wholesale distributor will need to be in business two to five years to be profitable. There are exceptions, of course. Take, for example, the ambitious entrepreneur who sets up his garage as a warehouse to stock full of small hand tools. Using his own vehicle and relying on the low overhead that his home provides, he could conceivably start making money within six to 12 months.

"Wholesale distribution is a very large segment of the economy and constitutes about 7 percent of the nation's GDP," says Pembroke Consulting Inc.'s Fein. "That said, there are many different subsegments and industries within the realm of wholesale distribution, and some offer much greater opportunities than others."

Among those subsegments are wholesale distributors that specialize in a unique niche (e.g., the distributor that sells specialty foods to grocery stores), larger distributors that sell everything from soup to nuts (e.g., the distributor with warehouses nationwide and a large stock of various, unrelated closeout items), and midsized distributors who choose an industry (hand tools, for example) and offer a variety of products to myriad customers.

The cornerstone of every distribution cycle, however, is the basic flow of product from manufacturer to distributor to customer. As a wholesale distributor, your position on that supply chain (a supply chain is a set of resources and processes that begins with the sourcing of raw material and extends through the delivery of items to the final consumer) will involve matching up the manufacturer and customer by obtaining quality products at a reasonable price and then selling them to the companies that need them.

In its simplest form, distribution means purchasing a product from a source-usually a manufacturer, but sometimes another distributor-and selling it to your customer. As a wholesale distributor, you will specialize in selling to customers-and even other distributors-who are in the business of selling to end users (usually the general public). It's one of the purest examples of the business-to-business function, as opposed to a business-to-consumer function, in which companies sell to the general public.

Weighing It Out: Operating Costs

Regardless of where a distributor sets up shop, some basic operating costs apply across the board. For starters, necessities like office space, a telephone, fax machine and personal computer will make up the core of your business. This means an office rental fee if you're working from anywhere but home, a telephone bill and ISP fees for getting on the internet.

No matter what type of products you plan to carry, you'll need some type of warehouse or storage space in which to store them; this means a leasing fee. Remember that if you lease a warehouse that has room for office space, you can combine both on one bill. If you're delivering locally, you'll also need an adequate vehicle to get around in. If your customer base is located further than 40 miles from your home base, then you'll also need to set up a working relationship with one or more shipping companies like UPS, FedEx or the U.S. Postal Service. Most distributors serve a mixed client base; some of the merchandise you move can be delivered via truck, while some will require shipping services

While they may sound a bit overwhelming, the above necessities don't always have to be expensive-especially not during the startup phase. For example, Keith Schwartz, owner of On Target Promotions, started his wholesale tie and belt distributorship from the corner of his living room. With no equipment other than a phone, fax machine and computer, he grew his company from the living room to the basement to the garage and then into a shared warehouse space (the entire process took five years). Today, the firm operates from a 50,000-square-foot distribution center in Warrensville Heights, Ohio. According to Schwartz, the firm has grown into a designer and importer of men's ties, belts, socks, wallets, photo frames and more.

To avoid liability early on in his entrepreneurial venture, Schwartz rented pallet space in someone else's warehouse, where he stored his closeout ties and belts. This meant lower overhead for the entrepreneur, along with no utility bills, leases or costly insurance policies in his name. In fact, it wasn't until he penned a deal with a Michigan distributor for a large project that he had to store product and relabel the closeout ties with his firm's own insignia. As a result, he finally rented a 1,000-square-foot warehouse space. But even that was shared, this time with another Ohio distributor. "I don't believe in having any liability if I don't have to have it," he says. "A warehouse is a liability."

The Day-to-Day Routine

"One reason that wholesale distributors have increased their share of total wholesale sales is that they can perform these functions more effectively and efficiently than manufacturers or customers," comments Fein.

To handle all these tasks and whatever else may come their way during the course of the day, most distributors rely on specialized software packages that tackle such functions as inventory control, shipping and receiving, accounting, client management, and bar-coding (the application of computerized UPC codes to track inventory).

And while not every distributor has adopted the high-tech way of doing business, those who have are reaping the rewards of their investments. Redondo Beach, California-based yoga and fitness distributor YogaFit Inc., for example, has been slowly tweaking its automation strategy over the past few years, according to Beth Shaw, founder and president. Shaw says the 25-employee company sells through a website that tracks orders and manages inventory, and the company also makes use of networking among its various computers and a database management program to maintain and update client information. In business since 1994, Shaw says technology has helped increase productivity while cutting down on the amount of time spent on repetitive activities, such as entering addresses used to create mailing labels for catalogs and individual orders. Adds Shaw, "It's imperative that any new distributor realize from day one that technology will make their lives much, much easier."

Who Are Your Customers?

Because every company relies on a pool of customers to sell its products and/or services to, the next logical step in the startup process involves defining exactly who will be included in that pool. Defining this group early on will allow you to develop business strategies, define your mission or answer the question "why am I in business?" and tailor your operations to meet the needs of your customer base.

As a wholesale distributor, your choice of customers includes:

Retail businesses: This includes establishments like grocery stores, independent retail stores, large department stores and power retailers like Wal-Mart and Target.

Retail distributors: This includes the distributors who sell to those retailers that you may find impenetrable on your own. For example, if you can't "get in" at a power retailer like Wal-Mart, you may be able to sell to one of its distributors.

Exporters: These are companies that collect United States-manufactured goods and ship them overseas.

Other wholesale distributors: It's always best to buy from the source, but that isn't always possible, due to exclusive contracts and issues like one-time needs (e.g., a distributor who needs 10 hard hats for a customer who is particular about buying one brand). For this reason, wholesale distributors often find themselves selling to other distributors.

The federal government: Uncle Sam is always looking for items that wholesale distributors sell. In fact, for wholesale distributors, selling to the government presents a great opportunity. For the most part, it's a matter of filling out the appropriate forms and getting on a "bid list." After you become an official government supplier, the various buying agencies will either fax or e-mail you requests for bids for materials needed by schools, various agencies, shipyards and other facilities.

For a small wholesale distributor, there are some great advantages to selling to the government, but the process can also be challenging in that such orders often require a lengthy bidding process before any contracts are awarded. Since opening her Redondo Beach, California, distributorship in 1994, Beth Shaw of YogaFit Inc. says she's made several successful sales to the government. Currently, the firm sells its exercise education programs and several styles of yoga mats to Army bases and other entities. Calling government sales "a good avenue" for wholesale distributors, Shaw says it's also one that's often overlooked, "especially by small businesses."

Finding a Profitable Niche

In other words, what matters is not so much what you sell, but how you sell it. There are profitable opportunities in every industry-from beauty supplies to hand tools, beverages to snack foods. No matter what they're selling, wholesale distributors are discovering ways to reaffirm their value to suppliers and customers by revealing the superior service they have to offer, as well as the cost-saving efficiencies created by those services. This mind-set opens up a wealth of opportunities to provide greater attention to the individual needs of customers, a chance to develop margin growth, and greater flexibility in product offerings and diversification of the business.

The whole trick, of course, is to find that niche and make it work for you. In wholesale distribution, a niche is a particular area where your company can most excel and prosper-be it selling tie-dyed T-shirts, roller bearings or sneakers. While some entrepreneurs may find their niche in a diverse area (for example, closeout goods purchased from manufacturers), others may wish to specialize (unique barstools that will be sold to regional bars and pubs).

On the other side of the coin, too much product and geographical specialization can hamper success. Take the barstool example. Let's say you were going to go with this idea but that in six months you'd already sold as many barstools as you could to the customer base within a 50-mile radius of your location. At that point, you would want to diversify your offerings, perhaps adding other bar-related items like dartboards, pool cues and other types of chairs.

The decision is yours: You can go into the wholesale distribution arena with a full menu of goods or a limited selection. Usually, that decision will be based on your finances, the amount of time you'll be able to devote to the business, and the resources available to you. Regardless of the choices you make, remember that market research provides critical information that enables a business to successfully go to market, and wholesale distributors should do as much as they can-on an ongoing basis. It is better to do simple research routinely than to shell out a lot of money once on a big research information project that may quickly become outdated.

Pinpointing a Startup Number

While entrepreneurs in some industries seem to be able to raise money with a snap of their fingers, most have to take a more detailed approach to the process. Perhaps the best starting point is to figure out just how much you need.

In the wholesale distribution sector, startup numbers vary widely, depending on what type of company you're starting, how much inventory will be necessary and what type of delivery systems you'll be using. For example, Keith Schwartz, who got his start selling belts and ties from his basement in Warrensville Heights, Ohio, started On Target Promotions with $700, while Don Mikovch, president of the wine distributor Borvin Beverage in Alexandria, Virginia, required $1.5 million. While Schwartz worked from a desk and only needed a small area in which to store his goods, Mikovch required a large amount of specialized storage space for his wines-and a safe method of transporting the bottles to his retailers.

The basic equipment needed for your wholesale distributorship will be highly dependent on what you choose to sell. If you plan to stock heavy items, then you should invest in a forklift (some run on fuel or propane, others are man-powered) to save yourself some strain. Pallets are useful for stocking and pallet racking is used to store the pallets and keep them in order for inventory purposes.

For distributors who are sourcing, storing and selling bulky goods (such as floor tile, for example), a warehouse of sufficient size (based on the size of products you're selling and the amount of inventory you'll be stocking) is a necessity. To ensure that the distribution process operates smoothly, select a location that allows you to move around efficiently and that includes the necessary storage equipment (such as pallet racking, on which you can store pallets). Don't forget to leave room for a forklift to be able to maneuver between racks of pallets and shelves stored in the warehouse.

As a startup distributor, your initial inventory investment will depend on what you're selling. Expect to carry some inventory, no matter what the product is, but also understand that your choice of goods will have some effect on how much you'll need to shell out upfront. Schwartz was buying surplus apparel, so $700 gave him plenty to work with for the first few months. When Garth Gordon and Vivienne Bramwell-Gordon, president and vice president, respectively, of Tampa, Florida-based Phones Etc., founded their company, they invested about $2,400 to purchase a shipment of high-end telephones. They quickly turned them around for a 300-percent profit and have been in the business of distributing refurbished Avaya telecom equipment to small companies and nonprofit groups ever since. Today, Phones Etc. carries about $600,000 in inventory at any given time.

Bill Green, managing partner at WSG Partners LLC in Cherry Hill, New Jersey, says the best way to determine inventory needs is to look at your customers' needs. If they're the type who "need everything yesterday" (contractors working on job sites would fall into this category), then your inventory will need to be ample enough to meet those last-minute requests. However, if there's usually a three-to-four-day span between order-taking and delivery, then you may be able to skimp a bit on inventory and instead focus on forming solid, reliable relationships with vendors who can help you meet those timelines.

"The most successful distributorships are the ones [whose owners] are working as close to their customers as possible and who can predict their needs and be there to provide value-along with the products," says Green. "That doesn't necessarily mean you need a huge warehouse and inventory, but you will need to find vendors who will 'hold' that inventory for you until your own customers ask for it."

Inventory Matters

There are caveats to both strategies. For starters, when a company chooses not to stock up, it runs the risk of being out of an item when the customer comes calling. At the same time, the distributors who overstock can find themselves in a real pickle if they can't get rid of merchandise they thought they could unload easily.

Being a distributor is all about "turning" inventory (selling everything you have in stock and then replenishing it)-the more times you can turn your inventory in a year, the more money you will make. Get the most turns by avoiding stocking items that may end up sitting in your warehouse for more than 90 days.

Stocking Up.Or Not?

On the other hand, if you are servicing a varied customer base located in different geographic areas, you may need to stock a little more than the entrepreneur in the previous example. Because you probably won't be visiting those customers at their locations, it may take a few months before you can determine just how much product they will be buying from you on a regular basis. Of course, you must also leave some breathing room for the "occasional" customer-the one who buys from you once a year and who will probably always catch you off guard. The good news is that having relationships with vendors can help fill those occasional needs quickly, even overnight or on the same day, if necessary.

"The biggest mistake companies make is developing an inventory load that is larger than what they really need," says Rich Sloan, co-founder of small-business consultancy StartupNation.com in Birmingham, Michigan. "The investment winds up sitting out in the warehouse when it could be put to much better use." Sloan says companies also jump into inventory purchases too quickly, without factoring in their customers' wants and needs-yet another way to wrap up too much investment in items that will be slow to move. "The trick is to keep it as lean as possible. That's a very smart, lower-risk way to go."

At Keith Schwartz's wholesale belt and tie distributorship in Warrensville Heights, Ohio, all it took was a $700 investment in closeout ties to get started. He resold them to a drugstore, pocketed the profits and reinvested the money in more inventory. It's a simple formula and one that works well for the small startup entrepreneur who is operating with low overhead.

The distributor who has already invested in a location, vehicles and other necessities should also factor product life cycle into the inventory equation. Those with longer life cycles (hand tools, for example) are usually less risky to stock, while those with shorter life cycles (food, for example, usually has a short life cycle) can become a liability if there are too many of them on the shelf. The shorter the life cycle, the less product you'll want to have on hand. Ultimately, your goal will be to sell the product before having to pay for it. In other words, if you are buying computers, and if the manufacturer offers you 30-day payment terms, then you'll want to have less than 30 days' worth of inventory on the shelf. That way, you never end up "owning" the inventory and instead serve as a middleman between the company that's manufacturing and/or selling the product and the one that's buying it.

To sum up the tricks to stocking a wholesale distributorship:

• Don't overdo it when it comes to buying inventory.
• Try to get a grasp on your customers' needs before you invest in inventory.
• If you can get away with doing it cheaply at first (especially those with low overhead), then go for it.
• Be wary of investing too much in short- life-cycle products, which you may get stuck with if they don't sell right away.
• Stock up to a level where you can sell the product before you have to pay for it.

For distributors, the biggest challenge is running your business on low operating profit margins. Adam Fein of Philadelphia-based Pembroke Consulting Inc. suggests making your operations as efficient as possible and turning inventory around as quickly as possible. "These are the keys to making money as a wholesale distributor," he says.

And while the operating profit margins may be low for distributors, Fein says the projected growth of the industry is quite optimistic. In 2004, total sales of wholesaler-distributors reached $3.2 trillion, and for 2005 Fein expects revenue growth to continue to outpace the growth of the economy overall, growing an estimated 7.7 percent (vs. projected gross domestic product growth of 3.5 percent).

Playing the Markup Game

Distributors can use the following formula when it comes to markup: If it costs the manufacturer $5 to produce the product and they have a 100 percent markup, then you (the distributor) buy it for $10. Following the same formula, the wholesaler would double the cost and sell it for $20. Thus, there is a 400 percent markup from manufactured price to the wholesaler's customer.

Wholesale Distribution Business Resources Associations and Professional Organizations

• Alabama Wholesale Distributors Association, (205) 823-8544
• American Wholesale Marketers Association
• California Distributors Association, (916) 446-7841
• Colorado Association of Distributors, (303) 690-8505
• General Merchandise Distributors Council, (719) 576-4260
• Idaho Wholesale Marketers Association, (208) 342-8900
• Industrial Supply Association
• Mississippi Wholesale Distributors Association, (601) 605-1482
• National Association of Wholesaler-Distributors
• North Carolina Wholesalers Association, (919) 271-2140
• Southern Association of Wholesale Distributors
• Texas Association of Wholesale Distributors, (512) 346-6912
• Virginia Wholesalers & Distributor Association, (804) 254-9170
• West Virginia Wholesalers Association, (304) 342-1081
• Integrated Distribution Management: Competing on Customer Service, Time and Cost by Christopher Gopal and Harold Cypress (Business One Irwin)
• Facing the Forces of Change: The Road to Opportunity by Pembroke Consulting ( www.pembroke_consulting.com )
• Managing Channels of Distribution by Kenneth Rolnicki (Amacom Books)
• The Complete Distribution Handbook by Timothy Van Mieghem (Prentice Hall)
• Wholesale Distribution Channels: New Insights and Perspectives by Bert Rosenbloom (Haworth Press)

Publications

• Electronic Distribution Today
• Industrial Distribution
• Modern Distribution Management

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Wholesale Business Plan Template

Written by Dave Lavinsky

Wholesale Business Plan

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

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

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

Download our Ultimate Business Plan Template here >

What is a Wholesale Business Plan?

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

Why You Need a Business Plan for a Wholesale Business

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

Sources of Funding for Wholesale Businesses

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

Finish Your Business Plan Today!

How to write a business plan for a wholesale business.

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

Executive Summary

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

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

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

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

Company Overview

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

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

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

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

Include answers to questions such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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Competitive Analysis

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

Direct competitors are other wholesale businesses.

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

Income Statement

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

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

Balance Sheets

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

Cash Flow Statement

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

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

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

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

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

Wholesale Business Plan FAQs

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

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

How Do You Start a Wholesale Business?

Starting a wholesale business is easy with these 14 steps:

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

Learn more about   how to start your own wholesale business .

Where Can I Download a Business Plan PDF?

You can access our business plan pdf download here.

Don’t you wish there was a faster, easier way to finish your Wholesale 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 planning advisors can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Wholesale Business Plan Template

Written by Dave Lavinsky

Wholesale Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

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

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

Customer Focus

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

Management Team

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

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

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

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

Success Factors

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

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

Financial Highlights

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

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

The following graph outlines the financial projections for National Wholesale.

Company Overview

Who is national wholesale.

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

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

National Wholesale History

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

Since incorporation, National Wholesale has achieved the following milestones:

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

National Wholesale Services

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

Industry Analysis

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

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

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

Customer Analysis

Demographic profile of target market.

Customer Segmentation

National Wholesale will primarily target the following customer profiles:

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

Competitive Analysis

Direct and indirect competitors.

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

US Trade Connections

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

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

Evergreen Wholesale

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

Hardware @ Home

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

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

Competitive Advantage

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

Marketing Plan

Brand & value proposition.

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

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

Promotions Strategy

The promotions strategy for National Wholesale is as follows:

Word of Mouth/Referrals

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

Professional Associations and Networking

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

Print Advertising

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

Website/SEO Marketing

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

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

Operations Plan

The following will be the operations plan for National Wholesale. Operation Functions:

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

Milestones:

National Wholesale will have the following milestones completed in the next six months.

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

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

Key Assumptions

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

• Number of Contracts Per Month: 380
• Average Revenue per Month: $190,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Wholesale Business Plan FAQs

What is a wholesale business plan.

A wholesale business plan is a plan to start and/or grow your wholesale business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Wholesale business plan using our Wholesale Business Plan Template here .

What are the Main Types of Wholesale Businesses?

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

How Do You Get Funding for Your Wholesale Business Plan?

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

What are the Steps To Start a Wholesale Business?

Starting a wholesale business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 1. Develop A Wholesale Business Plan - The first step in starting a business is to create a detailed wholesale business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your wholesale business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your wholesale business is in compliance with local laws. 3. Register Your Wholesale Business - Once you have chosen a legal structure, the next step is to register your wholesale business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 4. Identify Financing Options - It’s likely that you’ll need some capital to start your wholesale business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 7. Acquire Necessary Wholesale Equipment & Supplies - In order to start your wholesale business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your wholesale business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful wholesale business:

• How to Start a Wholesale Business

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How to Start a Wholesale Business and Keep It Successful

Sally Lauckner is an editor on NerdWallet's small-business team. She has over 15 years of experience in print and online journalism. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content and specializing in business financing. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She is based in New York City.

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Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you're an entrepreneur who wants to start a business and make a profit, getting into wholesale distributorship can be a great choice As a wholesaler, you'll provide products to other companies for a profit. It can seem overwhelming, though, to think of everything that goes into how to start a wholesale business: financial planning, a clear business plan, sourcing items and finding space are just the beginning steps you'll need to figure out.

here's a lot of planning involved to start a wholesale business, but this guide can help you get organized.

Looking for tools to help grow your business?

Tell us where you're at in your business journey, and we'll direct you to the experience that fits.

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6 steps to starting a wholesale business

1. decide what you want to sell.

There are many directions you can take your business in when you're researching how to start a wholesale business. You'll probably want to be a wholesaler that focuses on one group of products or another, instead of trying to manage wholesaling different types of goods. There are plenty of options out there and you might already have an idea of what you want to sell.

Some options include being a wholesaler of building materials, deciding to sell home goods and food items or maybe you're interested in wholesaling electronics like televisions. Whatever it is you want to sell, you should do some research to nail your product offerings down before moving on to the other steps.

2. Choose a business name and entity

The second step on our how to start a wholesale business list is to come up with a business name and to choose a business entity. You want to make sure that your business will have a unique name that isn't already taken by another business out there. To do this, you can usually check with your state's Secretary of State business search page. Many allow you to search business names online to see whether the name you want is available.

You should also choose a business entity. Different entities or business structures have different benefits they offer. Some wholesalers operate as an LLC, which shields them from personal liability while providing the option to be taxed either as a sole proprietor or corporation. Some might find it beneficial to register as an S-corp for tax purposes. Whatever you choose, first consider whether you want your personal assets protected from any legal action the business might face. You may want to consult a business attorney or an accountant to help you figure out which entity will be most beneficial come tax season.

3. Write a business plan

This step includes much of the heavy lifting of how to start a wholesale business, but if you completed Step 1 and Step 2, you're probably pretty prepared for this.

When you're writing a business plan for your new wholesale business, there are some things you should be sure to include. Your business plan can be written from scratch, using a business plan software program or come from a business plan template.

Whatever you choose, be sure that your plan includes a summary, an overview of the company and structure and an in-depth market analysis . The market analysis is key because it shows whether or not you've done research to figure out if there is enough of a demand to keep your business running. A lack of market demand is one of the biggest reasons small businesses fail.

Also, list some manufacturers you might be working with and their prices. This is important for you creating a cost analysis and estimating when you might turn a profit to start making money.

4. Get a wholesale license and other permits

When it comes to how to start a wholesale business, licensing and permits will be an important part of your research process. Laws about this vary by state. A wholesale license can have different names in different states; some call it a "resale license" instead because it allows you to resell goods.

Check with your state's tax office, which you can find here , about how to obtain a wholesale license. You can also check with your Secretary of State's office for any other types of business licenses or permits you may need.

5. Apply for an employer identification number

You'll also want to apply for an employer identification number. If you're starting a wholesale business, you'll need it to file taxes among other things.

You can apply online directly on the IRS website , or you can apply by fax or mail. Applying online is quick and you can get your EIN in a matter of minutes. Not all entity types are required to have an EIN (sole proprietorships that don't have employees file taxes using their social security number) but it makes running your business easier and will be necessary to do things like open a business credit card.

6. Figure out logistics

While the steps above are helpful, they're just a start and there's plenty more you'll have to do when you're learning how to start a wholesale business. This is where planning will get specific, since the logistics you'll have to figure out before starting your wholesale business will vary depending on the specifics of your business plan, location, budget, who you're doing business with and what you intend to provide. These include, but are not limited to:

Choosing manufacturers to work with: Aside from large-scale manufacturers, you can also source products from independent artisans or import products from overseas. Along with price, you'll need to factor in speed, quality and location to select your suppliers.

Getting warehouse space: When you're just starting out, working out of your garage might be okay. But as you grow, make note of how much space you need, and start looking for a location large enough to accommodate your operations. This will probably include inventory, machinery and employee necessities, like a break room and bathrooms. Eventually, as we'll discuss below, you may want to expand to another space.

Choose a shipper if you'll be shipping goods: Cost, speed and reliability are all factors, but there may be other considerations, like a company's history with customs, if you're shipping internationally or are shipping unusual items.

Consider getting a lawyer to review your registrations and paperwork: Registration and business insurance requirements will vary by state and can be complex to figure out when starting a wholesale business, so this may be a useful step for you. A business attorney may also be able to advise you on your insurance needs.

Hiring employees: When you're hiring employees for your wholesale business, you'll need staff to cover purchases, sales, finances and day-to-day warehouse operations. Consider recruiting employees from trade shows or professional organizations, like The National Association of Wholesaler-Distributors . We'll go into the different roles you can hire for below.

Start Your Dream Business

Tips for running a wholesale business

After you're done looking into how to start a wholesale business, you should still try to think of more lucrative ways that you can continually grow your operations. If you're complacent with your business goals, it'll be easier for a competitor to swoop in and overtake you.

Here are five ways to ensure you can flourish after starting a wholesale business:

Expand your product lines and service

If you want to increase sales and grow your overall business when starting a wholesale business, you can think about expanding your product lines or who you serve.

For example, if you’re a specialty wholesaler that specializes in providing retail products, you could start offering items to different types of merchants. Or, if you’re a general merchandise wholesaler that primarily offers electrical supplies, you could start selling other resources, like plumbing materials.

These are just a few examples of how you can increase your wholesale business’s product lines to include new options. Ultimately, you'll need to listen to your customer base and see where you could better meet their needs. By doing this, you can develop your company and ensure that you’re taking into consideration what your existing customers care about.

Increase your marketing efforts

Another way to grow your wholesale business is to invest in new small business marketing efforts. If you don’t promote your business’s services, you can’t expect your customer base to grow. Similarly, you also aren't going to benefit if you keep trying the same types of marketing, only to end up with no results. Instead, conduct deep research about your ideal customer demographics and determine the types of marketing efforts that will attract them.

Think about these kinds of tactics when you're starting a wholesale business:

Send direct mail. Running direct mail campaigns is an affordable, yet effective way to market your business. You can send mail to prospective clients with information about your latest promotions. Make sure that your mailed campaigns are attention-grabbing and that they boast incentives that patrons will want to take advantage of.

Advertise in relevant publications. Many business owners forget about the benefits that print marketing can bring. With an increased attention put on digital marketing these days, you might not have tried purchasing ad space in local or industry-related publications, like wholesale trade magazines. These types of advertising opportunities can be a great way to reach your desired customers.

Optimize your website. Having a website for your wholesale business might seem fairly obvious, but your site could be missing out on important components. You should make sure that your business’s website is user-friendly and well-branded, so that current and potential customers can use it as a resource. You should also have your business’s contact information clearly listed and provide information about your products and their typical delivery schedules, so that customers can be informed of what to expect prior to placing an order.

Post sponsored media content. On social media platforms like Facebook or Twitter, you can publish sponsored social media posts. These posts can be targeted to your ideal customer's demographics, which is what makes social posts an asset to your marketing strategy. For instance, you could target a post toward individuals of a certain age and with a specific job title in your business’s area, to ensure that the people seeing your post are more likely to become potential customers.

Open a new location for your business

If your wholesale business location is small, with limited room for necessary equipment or technology, or is an inconvenient area, it might be time to move to a better location. In addition, you could even open an additional location. By having a new operating location for your wholesale business, you’ll likely be able to produce more wholesale goods, which can, in turn, lead to more sales.

Hire new employees

To expand your wholesale business, you should consider hiring additional employees. This could be done by hiring more individuals for an existing team or creating a new position that will likely lead to improved productivity and increased sales. Below, we’ll list a few different types of wholesale positions that you could consider hiring:

Sales managers.

Technology specialists.

Production leads or assemblers.

Truck drivers/movers.

Stock clerks.

Administrative assistants.

Bookkeepers.

Wholesale buyers.

When you're hiring your first employees, you should ensure that the roles you’re looking to fill are necessary and will help your business grow. For example, if you’re hoping to attract more customers, expanding your sales team makes the most sense; but if you need to generate more orders faster, you might need to recruit additional truck drivers instead.

Invest in technology

Having state-of-the-art technology to help improve business processes is imperative. Your business will benefit a ton from having up-to-date tech that can help you grow:

Inventory management. This is one of the most crucial items on the how to start a wholesale business checklist. You should always be aware of upcoming orders, available inventory and incoming supplies. To remain organized, we suggest implementing wholesale inventory management technology, which will help you track inventory in real time.

Cloud technology. It’s important to be able to access data remotely, especially if you have multiple operating locations or are working from home. Due to this, your business could benefit from using cloud technology services.

Customer management software. With a reliable customer management software, you can track interactions, store client data, view lead process and set up automations, in addition to other applications. Having a customer management software program will enable you to refine your sales process and guarantee that important tasks aren’t forgotten about.

The bottom line

Whether you're just learning how to start a wholesale business, or you're looking to expand your existing operation, these tips should help you establish a solid base for your company and give you ideas about what you can invest in to increase profits. Although it can be daunting to take these steps, you’ll be thankful you did once your wholesale business is thriving.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

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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Wholesale Food Distributor Business Plan and SWOT Analysis

Wholesale Food Distributor Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Wholesale Food Distributor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Wholesale Food Distributor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

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Product Specifications (please see images below):

Wholesale food distributors are one of the most important businesses within the United States and with any country for that matter given that they are able to bridge the gap between farms, food processing businesses, slaughterhouses, and related food production businesses and their retailing counterparts. Most wholesale food distributors are large-scale businesses in most markets given the need to have a significant transportation apparatus in place so that the business can effectively acquire wholesale inventories from food production businesses with the intent to resell them to retailers at a specific price. The revenues associated with this type of industry are completely immune from negative changes in the economy given that people can continue to need to eat and that retailers are continually looking for new ways to acquire inventories of both produced food and dry goods very quickly. In some cases, a wholesale food distributor can start the business relatively inexpensively especially they focus on a specific niche product. In fact, this is way one of this is the way to many large-scale food distributors ultimately began their operations. By operating in a niche capacity – these businesses are able to fulfill a need that is often overlooked were on not done by much larger scale businesses. As such, for an entrepreneur that is looking to establish a new wholesale food distribution business this may be one of the quickest ways in which they can enter the market once the source a unique product that is in demand among the general public.

The barriers to entry for a new wholesale food distributor business are considered to be moderately high given the significant amount of licensure and capital that is required to start these businesses. Typically, the start of cost for this type of company ranges anywhere from $50,000 all the way to $1 million depending on whether or not that inventory is actually going to be taken legal possession of by the wholesale food distribution business. This is important to note because many wholesale food distributors will often acquire their inventories on a consignment basis from the food producer. Once the inventory is sold they will then pay the producer for the required products. In many cases, newer wholesale food distributor businesses will look to establish these credit focused relationships with food manufacturing and farm businesses so that they can keep a close watch on their cash flow as they expand their operations.

A wholesale food distributor business plan should be produced if the entrepreneur is looking to raise capital to start this type of business. Given the highly predictable nature of the revenues generated from food purchase orders – almost all financial institutions are willing to put up the necessary capital to a qualified entrepreneur that has experience in this field. It should be noted that many people are looking to enter this field will be required to make a capital injection of 10% to 20% of the total amount of money needed to get off the ground. The business plan presented to a funding source should have a three-year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page that features information regarding the anticipated financial results of the business. As it relates to the wholesale food distribution industry, annual revenues in each of the last five years has exceeded $550 billion. The industry employs more than 2 million people and has provided payrolls of $138 billion in each of the last five years. It is important to note that this business is expected to remain in lockstep with the general economy as it relates to industry revenue growth. Usually, the industry growth ranges anywhere from 2% to 4% depending on inflation given that food imports are highly subject to inflationary issues.

A wholesale food distributor SWOT analysis should be written in conjunction with the business plan, marketing plan, and other documentation that may be submitted to a third-party or a funding source. As it relates to strengths, wholesale food distributors are always able to generate a significant amount of revenue given that regardless of how the economy as people going to continue to go to the grocery store to buy food products. The gross margins generated are considered a moderate and typically range anywhere from 20% to 30% depending on the products being sold. Highly specialized niche products such as artesian food products typically carry higher gross margins given that there is not the same level of demand for these more expensive items. The barriers to entry, again, are considered to be moderate to moderately high depending on the initial scope and scale of the business.

For weaknesses, one of the major issues at these businesses face is that they need to continually and properly handle large volumes of food on a day-to-day basis. As such, an entrepreneur that operates within this industry needs to have a complete understanding of safe food handling techniques that are used on a large scale. There are also a significant number of underlying operating costs especially as it relates to storage and transportation of food products. As such, these businesses need to maintain fiscally sound procedures and protocols for each step of their operation in order to ensure that they can remain profitable and cash flow positive. Inventory spoilage is another risk that is associated by these businesses especially taking possession of the inventory before it is sold to a retailer.

For opportunities, these businesses often grow very aggressively by integrating new product lines into their wholesale food offerings. Additionally, these businesses can also expand by acquiring additional purchase order relationships with small to midsize grocery stores that are continually looking to source new products for customers. Once a business has obtained a certain size than they can then approach much larger chain grocery stores to fulfill significantly larger orders on behalf of customers.

Threats, there’s very little risk of automation regarding the wholesale food industry given that there are a number of people that are needed within the supply chain. One of the major threats that does impact the way the wholesale food distribution businesses operate is inflation. During times of rapid inflation and expansion of the monetary supply – the cost of food production and puts spikes significantly. As such, many large-scale wholesale food distributors need to have a plan of action in order to remedy these increases in price.

A wholesale food distributor marketing plan should be developed and integrated into all the other documentation as well. First, many entrepreneurs within this field already have a significant number of contacts among both food production businesses as well as retailers. It is somewhat difficult to get into this field if a person does not have the requisite experience and contacts necessary in order to acquire inventories and make sales at the onset of operations. As such, an entrepreneur that does have a significant amount of resources within this industry will be able to immediately market the business as a specialized wholesale food distributor once they determine which products will be sold by the business. Most importantly, prior to the onset of operations many of these businesses will hire independent sales agents that operate on a commission basis in order to secure purchase order relationships with retailers. Strong compensation packages should be provided to these agents given that they will be able to secure a very large purchase orders and come through on a weekly to monthly basis.

Furthermore as it relates to the acquisition of inventories, many wholesale food distributors will develop co-branding relationships with specialty food production businesses. This is important to note given that when a farm markets its products to the general public they will frequently refer purchase orders to a third-party agent like a wholesale distribution business. As such, by maintaining these very close relationships with farming businesses, organic farms, small slaughterhouses, and related specialized product manufacturers – a wholesale food distribution business can effectively become very much in demand among retailers sourcing these products.

A wholesale food distribution website should be produced and can be somewhat moderate given that this is not a business that provides its products to the general public. This website should have information about the specialized food products carried, contact information, biographies of key personnel, and how to place wholesale purchase orders with the business. This website can be listed on among social media pages but is this is really not necessary given that most retailers do not source their inventories from businesses that market online. The wholesale distribution of food is very much a face-to-face business among people that have already existing relationships. This trend is not expected to sway anytime soon.

The continued demand for food ensures that wholesale distributors of these products are almost always able to generate a significant amount of revenues. While the gross margins do fluctuate from year to year depending on demand and depending on inflation – these businesses can almost always turn a profit provided the owner has an understanding of the specific needs of their retailers. The industry revenues are expected to increase, again, the near lockstep with the growth of the population and inflation.

Singer Industrial Acquires Hose Tech USA in Texas

• February 5, 2024

Following 10 acquisitions in 2023, Singer Industrial isn’t slowing down in 2024. On Feb. 2, the distributor announced it has added Fort Worth, TX-based Hose Tech USA, a distributor of hydraulic and industrial hose fittings and adapters.

Dallas-based Singer is a distributor of fluid power, hose and fittings, belts, seals and gaskets, pneumatic and automation products and provides a range of services.

Feb. 15 MDM Webcast: What to Expect When You’re Selling Your Business –  Register Here

Terms were not disclosed for the transaction, which will result in Hose Tech USA operating within Singer’s Industrial Rubber Division.

Overall, it will increase Singer’s North America footprint to over 100 locations and over 1,400 employees, while expanding Singer’s value proposition by boosting its on-site hose repair presence.

Hose Tech USA , founded in 1998 by Wes Barnhart, serves the Central Texas Region as well as the Dallas, Fort Worth and Houston metropolitan areas. The business operates in several key markets including construction, food and beverage, agriculture, recycling, and general industrial supply, and provides on-site hose repair services.

Hose Tech President and CEO Teresa King, and CFO Heather Sidel will continue to help manage Hose Tech operations and will assist with expansion efforts.

“We look forward to merging Hose Tech USA with the strength, collaboration and resources of Singer Industrial,” King in a news release. “This journey provides endless possibilities to our employees, and an expansive powerhouse of hydraulic and industrial hose solutions to benefit our customers.”

MDM Podcast: How Singer Industrial has Navigated Several Years of Change – January 31, 2024

“Hose Tech delivers world-class customer service with their large fleet of hydraulic repair trucks and eight service locations,” added Sam Petillo, Singer’s Industrial Rubber Division President. “We plan to leverage their service expertise to fuel our organic growth in Texas and beyond.”

On MDM’s 2023 Top Distributors Lists , Singer Industrial was No. 4 for Hose/Hose Accessories, No. 15 for Fluid Power and No. 40 for Industrial.

Related Posts

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The addition will increase Singer Industrial’s North America footprint to approximately 90 locations with more…

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• Filed In: News , Mergers & Acquisitions , Hose & Hose Accessories Distribution

• Singer Industrial Continues Deal Spree, Adds Viking Hose
• Singer Industrial Acquires American Hose & Hardware
• Singer Industrial Adds Distributors in Minnesota, California

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Wholesale Food Distributors: How to Find One In 5 Steps

The wholesale food and beverage industry is one of the most critical industries in the world. Wholesale food distributors play an indispensable role in food programs and the food and agricultural supply chain . Food wholesalers make it possible for businesses in the food production and restaurant industry to get wholesale restaurant supplies and quality products.

There are numerous challenges facing the food supply chain and distribution of food globally, this year, and beyond. From warehouse management issues to bulk shipping of fresh food overseas, you need to understand how distribution works in the food industry, and you need efficient business systems to combat these challenges.

Key Takeaway - To run a successful business, food distributor companies must be able to deliver timely and reliably. While you can go straight to the manufacturer to buy wholesale food and ingredients, it is more costly and most manufacturers may require a minimum order quantity or MOQ , which is way above your carrying capacity.

Your best bet to getting fresh restaurant supplies and food items wholesale is using wholesale food distributors. Using local wholesale distributors will also cut the long distance shipping. Finding reliable food distributors is challenging if you don’t know where to look. 

In this blog post, we review five tips on how to find a food wholesale distributor. However, before that, let’s do a recap of the food distribution definition.

What Is Food Distribution? Food Distribution Definition

Food distribution encompasses the various processes involved in moving wholesale foods from the producer and manufacturer to consumer-facing businesses. These businesses include restaurants, bars, local grocery stores, retail stores, independent retailers, retail food markets, supermarkets, chain stores, dollar stores, foodservice stores, and eCommerce food sites.

Typically, the food distribution system goes beyond the food wholesale distributor. Food distribution involves large-scale food manufacturers, farmers, food service businesses, local suppliers, retailers, and consumers.

However, making wholesale food available to consumers is the sole responsibility of food wholesale distributors. Wholesale food distributors bear most of the inventory carrying costs and the cost of storing wholesale foods in warehouses, bigger distribution centers, big box stores, and food distribution centers.

A food wholesaler may decide to store wholesale foods in a large fulfillment warehouse or a food distribution center. The type of warehouse you use depends on the size of your food wholesale distributorship business and which warehouse management system is compatible with your existing software and warehouse management process flow .

Learn the best processes involved in managing a warehouse. Download our free Warehouse Management eBook now.

So, what are the benefits of a wholesale food distributor? Let’s find out.

3 Benefits of a Wholesale Food Distributor

Besides bridging the gap between food producers and consumers, wholesale food distributors offer food service companies and businesses in the food and beverage industry loads of benefits. Here are three benefits of a wholesale distributor :

• Wholesale food distributors offer wholesale prices for goods and help you reduce the inventory carrying costs associated with keeping lots of manufacturing inventory . In addition, you don’t have to spend as much money renting or buying a big warehouse when you partner with a food distributor as opposed to buying directly from manufacturers.
• Wholesale food distributors usually have a large network of retailers and other businesses they sell products to. Quick inventory clearance results in ordering new stock from manufacturers. When you use a food wholesale distributor, you can be assured of getting fresh food.
• Wholesale food distributors use a wholesale distribution management system like BlueCart to streamline the ordering process. Food distributors also ensure that countless food safety measures are put in place until you get your supplies delivered.

How to Find Wholesale Food Distributors In 5 Steps

Restaurant business es, food wholesalers, and food service distributors must understand that the food distribution business process flow is unlike another niche market or industry. The food B2B wholesale marketplace has to function like a well-oiled machine.

Wholesale food distributors deliver wholesale produce using high-performance wholesale distribution software and restaurant technologies . For food distribution to work, every channel in the food distribution industry needs to be aligned.

As a business owner in the food industry, finding the right wholesale food companies will save you a lot of stress. For instance, imagine a restaurant lacking the menu ingredients to produce orders due to an unreliable supplier or distributors of food products.

Want to get familiar with wholesale restaurant products? Download our free Wholesale Produce eBook , Wholesale Meat and Seafood eBook , and Wholesale Coffee Distribution eBook to learn more.

There are different types of wholesale food services and food distributors' processes. However, the best wholesale food suppliers are not difficult to find, if you know where to look.

Here are five places to find the best food distributors that will help you meet the challenging demands of the food service industry:

• An Online Search

The first place to look for wholesale food distributors is the internet. With millions of users on the internet, it is easy to optimize your search to find wholesale food distributors.

To get started with this, be specific in your search terms. For instance, rather than searching for non-specific keywords like wholesale distributors, try wholesale dairy suppliers, wholesale alcohol distributors, and wholesale coffee suppliers instead.

You should read online customer reviews and take your time to conduct a background check of the wholesaler. Request samples of the products to check for quality and confirmation that the business is real.

If you are running a restaurant or food retail business, it may be easier to work with a local food wholesale distributor. This will make it possible to get fresh food products as well.

Like our wholesale content? You may want our wholesale purchase agreement template .

• Your Local Wholesale Directory

Using a wholesale directory is another way to find wholesale food distributors. You can use either online or offline wholesale directories to discover new wholesale distributors for your food supplies.

Most online wholesale directories list different wholesale businesses according to categories. You can find food distributors by selecting the category of food you need. It is important to review the website for authenticity.

The logic is the same for offline directories. Offline directories are usually organization- or association-based, so it’s easier to narrow your search to the wholesale supplies you need.

• Trade Fairs and Industry Events

Trade fairs are usually places where wholesalers and retailers within the same industry meet and network. You can take advantage of trade fairs to meet new food vendors and wholesalers. Most wholesale food distributors at trade fairs will have samples of their products as evidence of their authenticity.  

• Farmers’ Markets

Similar to trade fairs, farmers' markets connect you to local suppliers and producers of food. It is easier to operate a farm-to-table concept when you partner with farmers.

You'll also be able to meet up with local fish farmers for a regular supply of wholesale seafood . Make it an action to utilize industry-best supplier relationship management strategies to build your relationships with farmers and food vendors.

• Word of Mouth

You can also find food wholesale distributors the old-fashioned way: word of mouth. Leveraging the experience of other businesses in your industry will make it easier for you to find reliable suppliers.

Word of mouth will help you connect with local food distributors. You can directly communicate and ask questions about the operations of the wholesale food distributor from local businesses.

Frequently Asked Questions About Wholesale Food Distributors

Wholesale food distributors are key players in the food system supply chain. They make it possible for businesses in the food industry to receive food supplies for their daily operations. Let’s answer some questions about wholesale food distributors.

What Is a Food Distribution Center?

A food distribution center is a type of warehouse or food storage facility designed to store different types of wholesale foods before they’re shipped through a freight company to foodservice stores, grocery stores, convenience stores, restaurants, bars, or local stores. Food distribution centers have a warehouse layout design that is best suited for the storage of food products.

What are the Types of Food Distribution?

There are four main types of food distribution . They include the following:

• Cash-and-carry distributors
• Specialty distributors
• Redistributors
• Broadline distributors

How Do I Start a Wholesale Food Distribution Business?

To start a wholesale food distribution business, follow these steps below:

• Write a business plan .
• Choose the type of wholesale food products to distribute, such as fresh produce or canned foods.
• Partner with reliable producers and safest food product manufacturers.
• Create your wholesale food distributor marketing plan.
• Utilize the best inventory management process .
• Get your food wholesale license .
• Select the best warehouse or storage facility.
• Take advantage of eCommerce marketplaces-see our eCommerce business guide

What are the Top Food Distributors in the US?

There are different food distributors in the United States. However, here are the top wholesale food distributors in North America and the entire US.

• Performance Foodservice
• McLane Foodservice
• DOT Transportation

Finders, Keepers

Having a vendor management system will streamline the way you manage your wholesale food vendors and suppliers. It is important to use reliable suppliers and wholesalers that can ensure compliance with food safety regulations.

It’s always possible that your suppliers suffer some glitches and have an increased lead time . Make sure you prepare a backup plan and failsafe actions for this kind of situation.

Wholesale & Distributor Business Plans

Coffee distribution business plan.

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

Farm Machinery Manufacturer Business Plan

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

Fire Rescue E-commerce Business Plan

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

Wholesale Bicycle Distributor Business Plan

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

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

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