1.0 Executive SummaryThe purpose of this business plan is to
raise $100,000 for the development of a beverage distributor while
showcasing the expected financials and operations over the next
three years. Beverage Distributor, Inc. (the Company) is a New York
based corporation that will provide for the wholesale distributor
of beverages to retailers. The Company was founded by John Doe. 1.1
Products and ServicesThe primary revenue center for the business
will come from the ongoing purchase orders of wholesale beverages
from retailers based in the Companys target market. The business
will earn contribution margins of 70% on each dollar of revenue
generated through the wholesale distribution of beverages through
the Companys sales channels. The business will also earn
substantial secondary incomes from ancillary distribution fees and
services rendered to customers that operate outside of the Companys
target market radius. The third section of the business plan will
further describe the products offered by the Beverages Distributor.
1.2 The FinancingMr. Doe is seeking to raise $100,000 from as a
bank loan. The interest rate and loan agreement are to be further
discussed during negotiation. This business plan assumes that the
business will receive a 10 year loan with a 9% fixed interest rate.
The financing will be used for the following: Development of the
Companys Beverages Distributor location. Financing for the first
six months of operation. Capital to purchase the Companys inventory
of drink products. Mr. Doe will contribute $10,000 to the venture.
1.3 Mission StatementBeverages Distributors mission is to become
one of the foremost distributors of beverage products for retailers
within the Companys targeted markets. 1.4 Mangement TeamThe Company
was founded by John Doe. Mr. Doe has more than 10 years of
experience in the general distribution industry. Through his
expertise, he will be able to bring the operations of the business
to profitability within its first year of operations. 1.5 Sales
ForecastsMr. Doe expects a strong rate of growth at the start of
operations. Below are the expected financials over the next three
years.
1.6 Expansion PlanThe Founder expects that the business will
aggressively expand during the first three years of operation. Mr.
Doe intends to implement marketing campaigns that will effectively
target retail locations within the target market. 2.0 Company and
Financing Summary2.1 Registered Name and Corporate
StructureBeverage Distributor, Inc. The Company is registered as a
corporation in the State of New York. 2.2 Required FundsAt this
time, the Beverage Distributor requires $100,000 of debt funds.
Below is a breakdown of how these funds will be used:
2.3 Investor EquityMr. Doe is not seeking an investment from a
third party at this time. 2.4 Management EquityJohn Doe owns 100%
of the Beverage Distributor, Inc. 2.5 Exit StrategyIf the business
is very successful, Mr. Doe may seek to sell the business to a
third party for a significant earnings multiple. Most likely, the
Company will hire a qualified business broker to sell the business
on behalf of the Beverage Distributor. Based on historical numbers,
the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and ServicesBelow is a description of the products
offered by the Beverage Distributor 3.1 Beverage Distribution
Management is currently in the process of sourcing a number of
companies that produce and market wholesale beverage products for
selected retail stores. The business intends to offer a broad
selection of beverage products that are related to the sale of
wholesale distribution to the general public. Management
anticipates that the Company will be able to mark-up purchased
inventory 65% of its actual cost. 4.0 Strategic and Market
Analysis4.1 Economic OutlookThis section of the analysis will
detail the economic climate, the beverages industry, the customer
profile, and the competition that the business will face as it
progresses through its business operations. Currently, the economic
market condition in the United States is in a state of sluggish
growth. This slowdown in the economy has also greatly impacted real
estate sales, which has halted to historical lows. Many economists
expect that this sluggish growth will continue for a significant
period of time, at which point the economy will begin a prolonged
recovery period. 4.2 Industry AnalysisWithin the United States
there are approximately 75,000 companies that specialize in the
sale and distribution of beverage drinks to the general public.
Each year, these businesses aggregately generate more than $100
billion dollars of revenue and provide jobs for almost 1,000,000
Americans. For the last five years, annual payrolls have exceeded
$20 billion dollars a year among these individuals. The industry
has experience solid growth over the last ten years are more people
are becoming concerned with their health and fitness. This growth
corresponds to the increase in capital stock and general wealth of
the American public. There is currently no legislation or other
issues pending that are expected to impede the continued growth of
the industry. 4.3 Customer ProfileBeverage Distributors average end
user will be a retail seller operating within the Companys target
market. Common traits among clients will include: Annual revenues
exceeding $1,000,000 per year. Will spend $2,500 to $10,000 per
month with the Company. Operates within 15 to 25 miles of the
Companys operational radius. 4.4 Competitive AnalysisThis is one of
the sections of the business plan that you must write completely on
your own. The key to writing a strong competitive analysis is that
you do your research on the local competition. Find out who your
competitors are by searching online directories and searching in
your local Yellow Pages. If there are a number of competitors in
the same industry (meaning that it is not feasible to describe each
one) then showcase the number of businesses that compete with you,
and why your business will provide customers with service/products
that are of better quality or less expensive than your competition.
5.0 Marketing PlanBeverage Distributor intends to maintain an
extensive marketing campaign that will ensure maximum visibility
for the business in its targeted market. Below is an overview of
the marketing strategies and objectives of the Beverage
Distributor. 5.1 Marketing Objectives Implement a local campaign
with the Companys targeted market that will connect the business to
retailers. Develop an online presence by developing a website and
placing the Companys name and contact information with online
directories. 5.2 Marketing StrategiesMr. Doe intends on using a
number of marketing strategies that will allow the Beverage
Distributor to easily target retail stores within the target
market. These strategies include traditional print advertisements
and ads placed on search engines on the Internet. Below is a
description of how the business intends to market its products to
retail locations. The Beverage Distributor will also use an
internet based strategy. This is very important as many people
seeking local products, such as wholesale beverage distributors,
now the Internet to conduct their preliminary searches. Mr. Doe
will register the Company with online portals so that potential
retail customers can easily reach the business. The Company will
also develop its own online website. The Company will maintain a
sizable amount of print and traditional advertising methods within
local markets to promote the products that the Company is selling.
5.3 PricingIn this section, describe the pricing of your services
and products. You should provide as much information as possible
about your pricing as possible in this section. However, if you
have hundreds of items, condense your product list categorically.
This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary6.1 Corporate
Organization
6.2 Organizational Budget
6.3 Management BiographiesIn this section of the business plan,
you should write a two to four paragraph biography about your work
experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this
section.7.0 Financial Plan7.1 Underlying Assumptions The Beverage
Distributor will have an annual revenue growth rate of 16% per
year. The Owner will acquire $100,000 of debt funds to develop the
business. The loan will have a 10 year term with a 9% interest
rate. 7.2 Sensitivity AnalysisIn the event of a more severe
economic downturn, the business may have a decline in its revenues.
However, the high gross margins generated by the business will
ensure that the business will maintain profitability despite
deleterious economic conditions. 7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
.7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis