WAREHOUSE DISTRIBUTION BUSINESS PLAN SAMPLE
What is the best warehouse distribution business to start? A warehouse can be defined as a commercial building for the storage of an assortment of goods. Many groups of people use the warehouse.
Customs, manufacturers, importers, exporters, transport businesses, wholesalers make use of the warehouse in storing their products. The warehousing and distribution servicing business has proven to be a great investment to those looking for investment.
SEE: TYPES OF WAREHOUSING
An empty warehouse does not necessarily need to be acres wide instead, spacious enough to hold anything your customers may want. Some warehouses hold large products like boiler parts, luxury cars, etc. while some others hold small products like auto spare parts, microchips, etc. many customers who sell products like bicycle parts, light fixtures need warehouses where they can store and have a huge supply of them.
It is wise to accommodate customers whose goods can fit well into your warehouse, but don’t try to contain more than your warehouse can handle because it might disrupt your customer’s operation.
It is also wise to situate your warehouse in places far from your place of residence but close to other industrial buildings to enjoy external economies of scale. This place you are locating should be a place where customers will be able to access them.
Warehouses are usually characterized by large plain buildings equipped with ducks for loading and unloading trucks. Though it depends on what your company is producing, you should locate your warehouse in places like seaports, airports, and railways. This is important to the success of most profitable oil distribution company ideas.
Are there lucrative wholesale distribution business opportunities for a startup? Entrepreneurs have numerous ideas when starting a service freight warehousing business. It is not new to us that some independent contractors do not have the required space for storing some or most of their products. The options available to them may be big warehouse facilities which might be quite expensive.
To minimize cost, it is advisable to determine the type of products you want to store such as books, paper products, electronics, to determine the building size you need. Many medical pharmaceutical distribution outfit owners discover that the warehouse and distribution service is a good way to conduct business.
Starting your network distribution business model
Although, starting a warehousing and distribution service company requires huge capital to purchase warehouse facilities and properties, hire people who will work in the warehouse industry, purchase machinery to use, employ officers who will ensure the smooth running of the warehouse industry.
These are the steps to take in starting up a warehousing and distribution business.
WAREHOUSE BUSINESS IDEAS AND OPPORTUNITIES
GATHER STARTUP INFORMATION: Research on the average amount to start up a warehousing agency business in your country. It is also advisable for one to make deep background information concerning warehouse industries before embarking on your venture.
Start by searching the yellow pages in your area for warehouse companies. Also, visit their website to determine the types of customers they serve and types of services they offer. It is necessary to call different warehousing companies outside your city as they are the companies that are most likely to discuss issues or pitfalls to avoid during starting.
Pay these warehouses visits to understand how the operations work. Differentiate your service from the competitors and create your niche, target small businesses that may need warehouse services, such as small book distributors.
ACQUIRE THE REQUIRED LICENSES AND EQUIPMENT: You should register for a ‘doing business’ if you are thinking of using a fictitious name for your small food product distribution company. These forms can be acquired from your city administration office or country of residence.
Normally, the fee for application ranges from N5,000 and N10,000. A large part of your investment will go towards some equipment like forklifts, shelving units, freezers, refrigerators, crates, shelves, inventory software, and computers.
The inventory software will help you in keeping track of storage items. You may need a truck if you get into the distribution aspect of the business.
HIRE EMPLOYEES: If you offer distribution channels as a service, hire employees that are well experienced in logistics. Logistic professionals are very good at arranging track and shipping products to their destination point.
They also oversee items entering the facility, as they are the ones responsible for tracking when products enter the warehouse.
As a warehouse owner, employ an experienced shipping and receiving person who will assist checking items in as they arrive. This person can set up specific locations in the warehouse where storing each client’s item can be done.
Many warehouses label their sections with letters A to Z. Hire employees who will physically operate forklifts and lift items in your warehouse facility as well.
OBTAIN CUSTOMERS: In doing this, you must advertise in a good trade publication like ‘THE BOOKSELLER’ in which clients are most likely to read. Call on small businesses in your area where they sell the products you seek. Present these services to them, explaining all the benefits you can offer.
Leave business cards with different business owners who may need a warehouse for storing their products. Create websites while promoting it through local online yellow pages and search engines can be done.
Here is a sample business plan for starting a warehousing and distribution company.
WAREHOUSE DISTRIBUTION BUSINESS PLAN EXAMPLE
Distribution businesses play an important role in the development of an economy. Products involved are mostly finished goods that are distributed to end-users or consumers.
If you are an entrepreneur seeking to establish one, our warehouse distribution business plan sample may be of significant help to you.
We understand the dilemma faced by many new business owners. This may arise from a hurriedly written plan which comes with multiple flaws or may be due to none or selective implementation of its contents.
In most cases, having little knowledge of what you intend to do can make the whole process seem overwhelming. You can avoid this by setting a definite plan of action for your warehouse distribution business as will be shown here.
- Executive Summary
Outbound and Inbound® is a warehouse distribution business that offers vital services such as storage, pallet services, pool distribution, and logistics solutions, inventory services, and creating and packing services among many others. In addition to the storage of shipments, we provide distribution services as well. We are located in the heart of Albuquerque’s industrial complex in New Mexico.
This prime location is great for doing business and we have fully taken advantage of this to grow our client base.
The warehousing and distribution business requires proper planning in terms of product delivery and stocking of a new consignment of shipments. At Outbound and Inbound®, this is second nature to us. We have a vast distribution network that enables us to quickly reach consumers within the shortest possible time.
- Our Services
At Outbound and Inbound®, our services include pick and pack services, inventory management and control, outbound and inbound processing, inventory services, crating and packing services, and storage. Others include seasonal outflow management, special order handling and kitting, retail store distribution, cross-docking, reverse logistics, and return management.
- Vision Statement
Our vision at Outbound and Inbound® is to run a warehousing and distribution model that is efficient and sensitive to the needs of clients. We are a growing business that seeks to compete favorably with long-existing and established warehouse distribution businesses.
Our sights are set on breaking the monopoly of a handful of companies and establishing our business as a force to be reckoned with.
- Mission Statement
We have a mission to protect our business as a partner that can be trusted. By doing business with us, manufacturers, and end distributors (wholesale and retail) are fully convinced of our ability to meet their expectations and targets.
Our drive for improvement will be unrelenting. We will never be too comfortable as we believe there will always be room for improvement.
Operating a successful business and achieving our set goals require adequate funding. We have been able to realize this through the sale of 40% of our shares to 3 investors. The sum of $2,500,000.00 was raised. Ownership of our shares comes with a fixed term of 10 years.
After this time, ownership will be relinquished by the investors and we will take back full control.
- SWOT Analysis
This is an important aspect of doing business. Many times, businesses are run with the owners oblivious of dangers or risks which may lurk around the corner. This has resulted in many businesses folding up. We have taken done an analysis of our potentials and risks which reveal the following;
Outbound and Inbound® is a warehouse distribution business founded on the principles of service excellence. We are an important participant in the manufacturing and distribution sectors of the economy. We have an extensive distribution network which gives us an advantage over several businesses. The partnerships we have forged enable us to serve all our clients in the most professional way possible.
Our weakness comes in the form of our current storage and distribution capacity. Identifying our weakness has enabled us to seek better solutions to these problems. We are currently implementing several growth-focused strategies that will help us overcome our weaknesses.
Our location at Albuquerque’s industrial complex allows us to benefit from a large demand for our services as companies find themselves increasingly in need of warehousing for finished products as well as distribution. We are eventually expanding to similar locations across New Mexico and multiple states.
In the event of unfavorable trade policies, businesses like ours are affected as manufacturing industries relocate abroad in search of favorable policies that support production. Economic recession also poses a threat as well. Businesses have little or no access to credit. This paralyzes business activities.
- Sales Projection
The more clients we work with, the greater our financial inflows. There is currently an upward swing in demand for our services. Based on this trend, we have projected a three-year sales scenario. This has turned out positive as summarized below;
- First Financial Year $700,000.00
- Second Financial Year $1,900,000.00
- Third Financial Year $3,200,000.00
- Marketing Strategy
The success of our business is hinged on how effective our marketing strategy is. We have selected the best strategies to promote our services. These include directly contacting the marketing department of these manufacturing industries on how best to collaborate.
We will also work with distributors at the lower rung of the ladder. These are mostly made up of end suppliers.
- Competitive Advantage
Our team is made up of people with a drive to make a difference in their specific fields. We have been able to streamline our activities in a way that benefits our business. With a collective determination to excel, our warehouse distribution business is significantly shielded from common mistakes.
With our warehouse distribution business plan sample, we have tried to be as objective as possible. All you need to do is to follow its general structure. Working with this plan alone is not enough. You need to have understood how this business works. Also, you should try as much as you can to implement the contents of your plan.