Wholesale business plan

Business plan

It is always difficult for retail store owners to find reliable suppliers that are close to the outlet.

The problem for them is the lack of wholesale warehouses for the rapid replenishment of the stock of the product range. The organization of a wholesale trade enterprise is specific, since it is necessary to establish strong relationships with manufacturing companies and have knowledge of logistics.

At the same time, wholesale trade is a promising type of business. After all, every supplier wants to replenish stocks of products on time and at the lowest prices, and a competent wholesaler will speed up the picking and ensure the delivery of goods.
Initially, it is necessary to draw up a wholesale business plan, determine the group of goods that will be sold, and manage product flows.
For example, you can organize a warehouse for the sale of products, products for home and life, building materials, and so on.

Wholesale Business Plan: Key Business Benefits

Opening a wholesale company has a number of distinctive advantages:

  • large turnover,
  • convenience of service for representatives of retail trade enterprises,
  • purchase of goods without intermediaries from manufacturing plants,
  • low competitive environment
  • a wide range of recruitment opportunities.

Before proceeding with the execution of documents for entrepreneurial activities, it is necessary to think over the entire organization process. In this case, the wholesale business plan is a program of action to achieve the goal.

What is needed to effectively organize a wholesale point?

To determine the group of goods for sale, you can study the activities of retail companies located in the nearby area.
The main class of future consumers are representatives of small retail stores and small wholesale private buyers.
So, for the organization of work it is necessary:

  • conduct a market analysis (find out competitors and choose a niche for the sale of certain products),
  • find manufacturers and conclude contracts for the supply of products,
  • develop an advertising and marketing plan,
  • draw up a budget plan to determine the amount of material and financial resources needed for work at the initial stage.
Let us consider in more detail the stages of opening a wholesale trade company:
  1. Room. It is clear that in order to create a retail outlet of this scale, a large production area is needed, where goods will be received and shipped. Inexpensive warehouse or empty industrial premises can be rented from various organizations. The location of the building must have a developed transport infrastructure for convenient access for trucks.

For the functional arrangement of the necessary equipment in the premises, you can invite a specialist working in this field. It will help to ergonomically arrange racks and devices, as well as create a complete complex in a single style solution. A well-designed wholesale business plan will be carried out by specialists.

  1. Devices and equipment. A specific type of activity involves the installation of large racks, equipment and units. You will need:
  • cargo and weight equipment,
  • racks, shelves and racks,
  • refrigerators and freezers (in case of sale of products),
  • showcases,
  • table, chairs for manager, accountant,
  • cash machine,
  • computer and printer.

You may need to install accessories.

  1. Staff. For the prompt receipt and shipment of goods, a driver, a goods manager (receiver) and several loaders are needed. To work with clients on the trading floor, you need a manager, an accountant-cashier.
  2. Conclusion of contracts for the supply of products. For uninterrupted supply of goods, it is necessary to study and establish business relations with manufacturing plants. You can use the services of a lawyer who will help you properly draw up supply contracts and mutual settlements. Often, individual entrepreneurs in the supply of products for sale. Goods must meet quality standards.
  3. Marketing and advertising. To advance to the market, it is necessary to develop and implement marketing actions to develop the brand. Professional marketers will analyze, research and help minimize possible risks. You can read more about wholesale marketing here .
  4. Budget plan. Consider the estimated costs of organizing a small company for the wholesale trade in household chemicals:
  5. Expenses (for work in the first 6 months):
  • room rental — from $ 200,000,
  • equipment — from 450,000 dollars,
  • purchase of goods — from 1,000,000 dollars,
  • salary — from 450,000 dollars

So, the initial starting amount will be — from 2,100,000 rubles.

Wholesale Business Plan: Project Performance Indicators

With proper organization, the monthly profit will be from 300,000 rubles. Effective projects pay off within 8-12 months.

As a result, we can say that the organization of wholesale trade has its own «pitfalls», but competent management, clear logistics schemes and marketing policy lead the company to a stable level of profitability. To draw up a detailed wholesale business plan, you should contact the experts.