Wholesaling Business Plan for starting your own business
Since the last couple of decades, the wholesale food business has seen immense profit. Starting as a food distributor is easy and profitable. You just have to get the right products that people love – and you will be able to run your business pretty successfully.
If you are clueless on how to start, don’t worry. In this wholesaling business plan, you will get a complete understanding of how to start a whole sale business plan, including all business details and business plan services.
You can use this template for other businesses too. If you want business plan for farmers market, business plan for liquor store, business plan for gift baskets, business plan for retail clothing, business plan for beauty supply store, or toy shop business plan, you can use this business plan.
2.1 The Business
WholeWorldFood will be a registered and licensed wholesale food distributor in New York, US. The business will provide full-service distribution of packed food products in the state.
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After getting the complete understanding of how to open a wholesale business, you need a solid wholesale business plan template to start your business. If that’s the case with you, you can use this wholesale business plan sample doc for free.
2.2 Management of Wholesaling Business
In the wholesale business plan pdf, it is required to write down all detail about the management.
The management body of WholeWorldFood Company will mainly consist of a chief executive officer, chief operating officer, director of marketing and chief information officer. In addition to them, there will be workers, social media managers and accountants.
2.3 Customers of Wholesaling Business
Similar to business plan for ecommerce, in this wholesale business plan pdf, we will mention the customers that our business will have. The main customers of WholeWorldFood Company will be following:
- Retail Businesses
- Small-scale Retail Distributors
- Hotels & Restaurants
2.4 Business Target
We are optimistic to become one of the leading wholesale food distributors in New York. Our primary goal is to cover all the startup costs in the first three years of our launch. Our secondary goal is to become the most loved and trusted packed food distributors by our customers.
3.1 Company Owner
Neil Lesson will be the owner and CEO of the WholeWorldFood Company.
While in high-school, Neil learned about how to start a wholesale business at home – and earned a lot of revenue at a young age. He perfectly knows what wholesaling business is and what’s the best way to use all the wholesaling business ideas that he got during this experience.
3.2 Why the Wholesaling Business is being started?
No matter if it’s a packed food or real estate wholesaling business plan, it is important to mention how and why the business is started.
The reason for starting this business was Neil’s expertise in the field. He knew that this business can draw huge revenue in the US. With constant hard work, he can cover the start-up cost within the few years of launch. These were the reasons that motivated him to start this business.
3.3 How the Wholesaling Business will be started?
To start as a packed food distributor, the first thing you need to determine is the type of packed food you want to distribute.
For this purpose, you can make research about the most loved and sold food items by other distributors. After getting the idea about it, the second step is to communicate with manufacturers. Some of them have their own distribution plans, while some of them do not have a specific plan. So you have a lot of options in your wholesale business list.
Once launched, we will provide innovative and unique ideas to our customers on how they can increase their sales through creative development, menu development, advertising and much more. We will offer marketing materials such as posters, reader boards, printed banners and punch cards to our customers. We will offer training and equipment maintenance to our customers. We will provide the samples of our new products to our customers to ultimately increase our end consumer.
|Research and Development||$25,000|
|TOTAL START-UP EXPENSES||$351,100|
|Other Current Assets||$211,000|
|Start-up Expenses to Fund||$351,100|
|Start-up Assets to Fund||$1,224,000|
|TOTAL FUNDING REQUIRED||$1,575,100|
|Non-cash Assets from Start-up||$1,602,000|
|Cash Requirements from Start-up||$380,000|
|Additional Cash Raised||$52,000|
|Cash Balance on Starting Date||$39,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$49,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,575,100|
|Loss at Start-up (Start-up Expenses)||$419,900|
|TOTAL CAPITAL AND LIABILITIES||$2,073,000|
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While you’re planning about how to start your own wholesale business, you should also decide the services that your business will provide.
After getting the complete understanding of how to open a wholesale business, mention all the services in your wholesale business plan. For instance, in this wholesale business plan template, we have mentioned the services that WholeWorldFood Company will provide.
- Juices: This category includes all fruit and pulp juices from all top brands out there.
- Soft Drinks: This category includes sugary soft-drinks, mainly Coca Cola, Fanta, Sprite, Dew.
- Biscuits: This category includes numerous types of biscuits from all top brands out there.
- Chocolates: This category includes Swiss & Turk chocolates sourced from our contacts in those countries.
Marketing Analysis of Wholesaling Business
In the wholesale business model, an important component is the marketing analysis. In the process of knowing how to start a wholesale business online, the owner should also have a complete understanding of how he can promote and market his business.
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When starting a wholesale business, keep in mind to spend a lot of money on its marketing.
Everyone who is doing business or planning to start a business knows the importance of marketing analysis. Marketing analysis is crucial for every business.
The marketing analysis in wholesale business plan sample includes market trends, market segmentation, business target and product pricing.
5.1 Market Trends
After oil, coffee is the second largest product that is consumed by people worldwide. If we talk about the US, this business is continuously growing and is expected to grow at a strong pace in future. The growth rate is around 40 percent a year.
This tremendous amount of growth provides opportunities for people and companies to enter this market. In the United States, the coffee market is expected to grow at a CAGR of 4.8 during 2020-2025. This growth is due to the long working hours and busy routine of people. Due to it, the coffee chains have become more popular than before.
According to some researches, the shift has been seen from consuming soft drinks to coffee among the people in the US.
5.2 Marketing Segmentation
In our wholesale proposal template, we have written the market segmentation for our business, as follows:
This group of customers include grocery stores, small and large departmental stores, independent retail stores and power retailers.
Small-scale Retail Distributors
This group of customers include those distributors who sell to the retailers that you cannot reach out to.
Hotels & Restaurants
Most hotels and restaurants prefer to buy from the source, but some prefer buying their packed food products from wholesale distributors.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
The wholesale business plan pdf also contains the business targets of the company.
The success of any business lies in its customers. The key to success for a business is not losing your customers. We will make sure that our customer service is excellent and we provide 100% satisfaction to our clients.
We are starting from NYC but we aim to deliver our products to other cities of the state as well. Within the next 4 years of our launch, we will work on exporting our products nationwide.
Our business targets include the following
- To establish reputation and name in the food distributing market
- To retain loyal customers and attract new customers
- To increase the revenue every year
5.4 Product Pricing
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The sample wholesale business plan contains the pricing plans of the products manufactured by the company. The prices of our products and services are comparable to other distributor companies.
Marketing Strategy for State Farm Agent Business
To run a wholesale business online, you should be excellent at marketing your business. Be it wholesale packed food or wholesale real estate marketing plan, there are several ways that you can use to market your business to increase the profit.
No matter how good your products are, if you do not tell people about them, you will not make money out of your business. In addition to the manufacturing of high-quality products, a company should hire an efficient and experienced marketing team. With unique and innovative marketing ideas, you will be able to reach out to people and will be able to attract them.
6.1 Competitive Analysis
Competitive analysis is an important component in wholesale distribution business model as it helps in deciding the goals for the business. It is also helpful in differentiating your business from the other businesses in town.
We have made a customer survey and the most common complaints about the existing distributors in that area are:
- Sourcing: Some coffee distributors do not supply the products on time. it causes the delay and ultimately becomes the reason for the loss
- Pricing: The coffee distributors in the area are providing their products at a higher price
6.2 Sales Strategy
- We will allow our customers to place the order on the phone. They can easily place their orders on phone except before the delivery day.
- To increase our sales and end consumers, we will provide free samples of newly launched products to our customers.
- We will use social media platforms to advertise our products and to reach out to people.
- We will hire sales agents and marketing executives to carry out direct marketing of our services and products.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Like in every wholesale business example, this wholesalers business plan contains a crucial part known as personnel plan. Just like we mention the staff and company tools in step by step wholesale real estatebusiness plan, we will mention in coffee distributor business plan as well.
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A personnel plan is an important part of a business plan as it affects the success of any business. It contains detailed information about the type of people who will work in WholeWorldFood Company.
It is always best to take the advice of an HR expert to go through this step.
7.1 Company Staff
Neil Lesson will be the owner and CEO of the business and will recruit following people:
- 1 COO
- 1 Director of Marketing
- 3 Supply Chain Executives
- 2 Delivery Supervisors
- 2 Customer Representatives
- 2 Sales and Marketing officers
- 2 Client Service Executive
- 6 Drivers
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Director of Marketing||$60,000||$66,000||$72,600|
|Supply Chain Executives||$140,000||$154,000||$169,400|
|Sales & Marketing Officers||$70,000||$77,000||$84,700|
|Client Service Executives||$90,000||$99,000||$108,900|
In all the wholesale business plan samplesavailable, a financial plan is another important step. The financial plan in a wholesale business plan pdf covers all the important points regarding company expenses and profit, such as
- The cost for buying wholesale coffee for the first time
- The salary of the employees
- The cost of making a website
- The rent of the office
- The money needed for marketing
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.15%||8.24%|
|Long-term Interest Rate||8.37%||8.46%||8.49%|
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8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$131,500|
|Average Per-Unit Revenue||$232.00|
|Average Per-Unit Variable Cost||$0.65|
|Estimated Monthly Fixed Cost||$163,400|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$8,078,000||$9,637,520||$11,811,283|
|TOTAL COST OF SALES||$8,078,000||$9,637,520||$11,811,283|
|Gross Margin %||3.37%||6.24%||6.55%|
|Sales and Marketing and Other Expenses||$137,000||$148,000||$156,000|
|Total Operating Expenses||$312,300||$337,900||$362,080|
|Profit Before Interest and Taxes||($30,300)||$304,036||$466,256|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$14,000||$15,120||$16,330|
|SUBTOTAL CASH FROM OPERATIONS||$66,000||$71,940||$77,695|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$67,000||$72,000||$78,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$63,000||$66,000||$69,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$63,000||$68,040||$73,483|
|Net Cash Flow||$19,000||$21,000||$22,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$287,000||$321,440||$361,299|
|TOTAL LONG-TERM ASSETS||$24,000||$26,880||$30,240|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$303,700||$328,160||$369,180|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.12%||2.35%||2.60%||2.40%|
|Total Current Assets||149.00%||152.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||94.00%||96.54%||99.24%||97.80%|
|Profit Before Interest and Taxes||41.00%||42.11%||43.29%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.00%||74.50%||75.00%||75.00%|
|Pre-tax Return on Assets||94.60%||99.33%||104.30%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.01%||34.03%||35.09%||N.A.|
|Return on Equity||56.00%||57.74%||59.53%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15||16||16.3||N.A.|
|Total Asset Turnover||2.4||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$239,000||$252,384||$266,518||N.A.|
|Assets to Sales||0.86||0.87||0.87||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
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- How do I start a wholesale business?
If you want to know how to start a wholesale business, you need to follow all the steps mentioned in this wholesale business plan template.
- Is real estate wholesaling a good business?
Yes, it is considered to be one of the most profitable businesses in the market of wholesaling. It is a great way for individuals to enter the real estate market. You need a real estate wholesale business plan to start your business.
- How much money can you make wholesaling?
When you are starting a wholesale business, with constant hard work and dedication, you can make a lot of money from it. You can make more than $10,000 per big deal.
- What is the best wholesale business to start?
Every wholesale business is profitable and easy to start. Above all, packed food is at the top of the list of wholesale businesses as there is a wide range of products as well as customer groups.
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