As a SCORE volunteer, I was recently the question, “How do I put together a business plan for a wholesale distribution company?” And, this was my reply….
Well, as many of us are doing, we are trying to find a way to make a little more money to cover expenses. And, if we are really ambitious, we are taking it to the next level. (i.e. putting together a formal business plan)
If I were you, before I dive in, I would do one of the following:
- Go on Ebay (or any website that will sell in bulk) and make a purchase. Then, I would try and sell it on ebay. Take some notes on margin and other issues that will be an important part of your business. I know this is a small scale, but it will give you a feel of what your purchasing price and resell price has to be to be competitive. And, it will allow you to go through the entire sales process (payment, shipping, and order tracking). This will give you some “real” data and experience to talk to bankers or investors with. It will convince them you are serious and are not afraid to get your finger nails dirty.
- Make some purchases (maybe you already have) on other sites. Take notes of how their process works, and how much communication they provide.
Additionally, I would:do some searches on business plans. There may be some out there that are “close” to what you want to do. If they are available to be used as templates, then pull one of those down and start. do a search on “wholesale goods”. (or similar search) They will give you projections as to what you make actually make when you sell the items. (If you do the Ebay experiment, you can possibly support the data quoted on the wholesalers website.)
And, if you have further questions, feel free to contact me directly or view what other resources are available on the SCORE.org site.