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NOV.11, 2021

Wholesaling Business Plan Template

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Wholesaling Business Plan Template

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Table of Content

    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 or business plan for gift baskets you can use this business plan.

    Executive Summary

    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.

    State Farm Business Plan - 3 Years Profit Forecast

    State Farm Business Plan – 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    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?

    Note

    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.

    Start-up Expenses  
    Legal $211,000
    Consultants $0
    Insurance $30,000
    Rent $28,000
    Research and Development $25,000
    Expensed Equipment $53,000
    Signs $4,100
    TOTAL START-UP EXPENSES $351,100
    Start-up Assets $340,000
    Cash Required $357,000
    Start-up Inventory $38,000
    Other Current Assets $211,000
    Long-term Assets $278,000
    TOTAL ASSETS $1,224,000
    Total Requirements $1,575,100
    START-UP FUNDING
    Start-up Expenses to Fund $351,100
    Start-up Assets to Fund $1,224,000
    TOTAL FUNDING REQUIRED $1,575,100
    Assets
    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
    TOTAL ASSETS $2,073,000
    Liabilities and Capital
    Liabilities $29,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $49,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $78,000
    Capital
    Planned Investment $1,575,100
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,575,100
    Loss at Start-up (Start-up Expenses) $419,900
    TOTAL CAPITAL $1,995,000
    TOTAL CAPITAL AND LIABILITIES $2,073,000
    Total Funding $1,575,100
    State Farm Business Plan - Starup Cost

    State Farm Business Plan – Starup Cost

    Any questions? Get in Touch!

    Services

    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.

    Business Plan for Investors

    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:

    State Farm Business Plan - Marketing Segmentation

    State Farm Business Plan – Marketing Segmentation

    Retail Businesses

    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.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Retail Businesses 34% 30,000 32,000 34,000 34,000 36,000 10.00%
    Small-scale Distributors 25% 24,000 25,000 27,000 29,000 30,000 10.00%
    Hotels 23% 20,000 24,000 24,000 27,000 29,000 10.00%
    Restaurants 18% 13,000 14,000 16,000 18,000 19,000 11.00%
    Total 100% 87,000 95,000 101,000 108,000 114,000 10%

    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

    State Farm Business Plan - Sales Monthly

    State Farm Business Plan – Sales Monthly

    6.4 Sales Yearly

    State Farm Business Plan - Sales Yearly

    State Farm Business Plan – Sales Yearly

    6.5 Sales Forecast

    State Farm Business Plan - Unit Sales

    State Farm Business Plan – Unit Sales

    Personnel plan

    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.

    Any questions? Get in Touch

    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

     Personnel Plan      
    Year 1 Year 2 Year 3
    COO $60,000 $66,000 $72,600
    Director of Marketing $60,000 $66,000 $72,600
    Supply Chain Executives $140,000 $154,000 $169,400
    Delivery Supervisors $70,000 $77,000 $84,700
    Customer Reps $90,000 $99,000 $108,900
    Sales & Marketing Officers $70,000 $77,000 $84,700
    Client Service Executives $90,000 $99,000 $108,900
    Drivers $140,000 $154,000 $169,400
    Total Salaries $580,000 $638,000 $701,800

    Financial Plan

    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

    General Assumptions
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.15% 8.24%
    Long-term Interest Rate 8.37% 8.46% 8.49%
    Tax Rate 24.01% 25.10% 26.30%
    Other 0 0 0
    Any questions? Get in Touch

    8.2 Break-even Analysis

    State Farm Business Plan - Break-even Anlysis

    State Farm Business Plan – Break-even Anlysis

    Break-Even Analysis
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $131,500
    Assumptions:
    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
    Sales $8,360,000 $10,279,456 $12,639,619
    Direct Cost of Sales $8,078,000 $9,637,520 $11,811,283
    Other $0 $0 $0
    TOTAL COST OF SALES $8,078,000 $9,637,520 $11,811,283
    Gross Margin $282,000 $641,936 $828,336
    Gross Margin % 3.37% 6.24% 6.55%
    Expenses
    Payroll $134,000 $147,400 $162,140
    Sales and Marketing and Other Expenses $137,000 $148,000 $156,000
    Depreciation $2,100 $2,200 $2,340
    Leased Equipment $0 $0 $0
    Utilities $3,000 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $3,100 $3,200 $3,400
    Payroll Taxes $31,000 $32,000 $33,000
    Other $0 $0 $0
    Total Operating Expenses $312,300 $337,900 $362,080
    Profit Before Interest and Taxes ($30,300) $304,036 $466,256
    EBITDA ($30,300) $304,036 $466,256
    Interest Expense $0 $0 $0
    Taxes Incurred ($6,060) $60,807 $93,251
    Net Profit ($24,240) $243,229 $373,005
    Net Profit/Sales -0.29% 2.37% 2.95%

    8.3.1 Profit Monthly

    State Farm Business Plan - Profit Monthly

    State Farm Business Plan – Profit Monthly

    8.3.2 Profit Yearly

    State Farm Business Plan - Profit Yearly

    State Farm Business Plan – Profit Yearly

    8.3.3 Gross Margin Monthly

    State Farm Business Plan - Gross Margin Monthly

    State Farm Business Plan – Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    State Farm Business Plan - Gross Margin Yearly

    State Farm Business Plan – Gross Margin Yearly

    8.4 Projected Cash Flow

    State Farm Business Plan - Project Cash Flow

    State Farm Business Plan – Project Cash Flow

    Pro Forma Cash Flow
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $52,000 $56,160 $60,653
    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
    Cash Spending $37,000 $39,000 $41,000
    Bill Payments $26,000 $27,000 $28,000
    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
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $63,000 $68,040 $73,483
    Net Cash Flow $19,000 $21,000 $22,000
    Cash Balance $29,000 $31,000 $33,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $25,000 $28,000 $31,472
    Inventory $4,000 $4,480 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $287,000 $321,440 $361,299
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $20,100 $22,512 $25,326
    TOTAL LONG-TERM ASSETS $24,000 $26,880 $30,240
    TOTAL ASSETS $293,000 $328,160 $369,180
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $19,000 $21,280 $23,919
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $16,700 $18,704 $21,023
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,800 $58,642 $64,506
    Earnings $198,000 $215,820 $237,402
    TOTAL CAPITAL $287,000 $312,830 $344,113
    TOTAL LIABILITIES AND CAPITAL $303,700 $328,160 $369,180
    Net Worth $300,100 $327,109 $359,820

     

    8.6 Business Ratios

    Ratio Analysis
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.23% 8.01% 8.88% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.20% 10.19% 11.29% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.12% 2.35% 2.60% 2.40%
    Total Current Assets 149.00% 152.00% 152.00% 158.00%
    Long-term Assets 11.54% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.87% 4.91% 4.95% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.56% 7.62% 7.69% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.90% 97.46% 100.19% 99.00%
    Selling, General & Administrative Expenses 94.00% 96.54% 99.24% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.00% 42.11% 43.29% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 32 32.6 33.415 33
    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.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 33 N.A.
    Accounts Payable Turnover 15 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.4 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $239,000 $252,384 $266,518 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.86 0.87 0.87 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29.1 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.3 N.A.
    Dividend Payout 0 0 0 N.A.
    Any questions? Get in Touch

    FAQ

    1. 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.

    1. 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.

    1. 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.

    1. 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.

    Download Wholesaling Business Plan Template in pdf

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