If you are looking for a sample FMCG distribution business plan template, here is a guide for starting a FMCG retail company and free feasibility study to use.
As the name suggests, fast moving consumer goods are those goods which are non-durable and will quickly sell. This is a great distributorship business opportunity to be considered.
By reading this article, you may be interested in becoming an FMCG distributor.
If yes, this FMCG distributor business plan sample will help you achieve your desire. Lots of entrepreneurs have been faced with the problem of writing their plans.
Interested in small fast moving consumer goods business planning tips? If YES, here is a practical guide on FMCG business.
FMCG BUSINESS IDEAS AND OPPORTUNITIES
Starting a Fast Moving Consumer Goods Business
What is FMCG business? Do you want to start a FMCG business? Are you looking for profitable business ideas in the FMCG sector? Have you been having that urge to become an entrepreneur through consumer packaged goods (CPG)? There are so many FMCG businesses one can go into that is very certain to make one a future millionaire. On the other side, these lucrative FMCG business opportunities can take up to five years before it produces such result.
What does FMCG started for? – FAST-MOVING CONSUMER GOODS
There are some people who just go into a certain FMCG business ideas because they want to and love to trade but after some few months, they are looking for other FMCG distribution business and dealerships to venture into because it seems their business is slow and the income too.
It is very important to take a feasibility study of those FMCG business opportunities before one should go into them. This is because, some FMCG wholesale trading business may seems profitable from the outside but after you have venture into it, you will see that those people selling those goods are actually either selling on credit or at a low profit margin so they can get rid of the stock or force a sale.
BEST FMCG BUSINESS STARTUPS
Starting a fmcg business is not just about buying goods at low price and selling at a higher price. All FMCG wholesale business does that to make profit. But if you really want to start a FMCG company business that is fast in terms of selling the goods at of your store and make a profit quickly, then you need to start thinking of starting a fast moving consumer goods business.
Fast moving consumer goods are daily consumable products. This goods are always ask of. If you really want to start a business that should keep you busy and selling, then you need to think of FMCG products that human can’t stay away for a week.
The Bad Side of Boutique Business
Opening a boutique is a good FMCG business model please don’t get me wrong. Read to the end before you conclude. The reason I said a bad side is this. A boutique is a place or store where people go to buy clothes, shoes, belts, caps, perfumes and designer’s accessories. Now, how many people do go for shopping every week? Do you? When last did you go for shopping? Was it the same boutique?
Personally, I go for shopping once in a month. Also, let me ask you, do you buy vegetables, tomatoes, pepper, onions once in a month? Am sure you buy it every week. If not twice in a week because you must eat vegetable soup! But the clothes you bought last year you’re still wearing them till today.
Now, I am not saying you should not go and start a boutique business if you already have the mind to do so. The fact is, there is profit in the business but it’s slow and not predictable. Here is how; Some day you may just open your store, you won’t sell anything. The next day, you might sell a few items. The next day again, your FMCG business model will excel as if you use magic on it. The next day again, only one face cap will be bought and so on like that.
But for fast moving consumable goods, you’re guaranteed of sale on a daily basis. Prayer or no prayer. Someone must eat biscuit, buy mineral, buy oil, Kerosene, Bread, Pepper or even pure water. And that same person can spend up to N5000 in a month on your store. That’s from one person. And you know that in one day, up to 10 different people will come to buy FMCG product from your store.
So, in this post, I want to really discuss on how you can take a proper feasibility study of your environment and start a fast moving consumer goods business in Hyderabad, Bangalore India, Nigeria and other countries of the world.
Here are examples of fast moving consumer goods business ideas;
BUSINESS PLAN TO START FMCG BUSINESS
Irrespective of where you reside, there is always an array of perfect business opportunities in FMCG sector for every location. In a cool evening, take a walk around your street or better still two streets and look for a good location that will address the issue of selling fast moving goods to the resident in that street and passers by either on foot or car. This will assist in developing a comprehensive FMCG business plan to use.
Now even if there are stores selling consumable items, I mean a long list of FMCG companies near you, don’t panic or think of competition. Your job now is to brand yourself in terms of attending to customers in a polite and quick manner. Personally, I wait unattended to when I go buy something or when the seller is always finding it difficult to give me my balance (change).
Have a very attractive store with light, maybe TV (if you choose to sell drinks). FMCG product business is not about competition, it’s about domination. Do not think competition, think domination. In your store, you can sell every items I listed above.
You may personally choose to focus on selling only drinks both alcohol and non-alcoholic with pepper soup and bush meat. You might also choose to sell food items only. There are also fast moving consumer goods. This is the best business for individual investors and agencies who don’t have time having long prayer point list.
Choose which fast consumer goods you prefer and go with it. I know of a lady who focus on selling soft drinks in crates. With this, she has bought a personal car and a truck for carrying the crate of drinks to her customers location.
You too can do it, you have just learnt how to start FCMG distribution business!
FMCG DISTRIBUTION BUSINESS PLAN SAMPLE
This is written to help out with that. We have stripped this sample plan of all complexities to enable you understand at a glance what each section looks like and to apply same strategy. What you need to put together a great plan is by understanding the business side of things. Your survey or feasibility study will enable you do that.
- Executive Summary
Sundry Goods is a fast moving consumer goods distributorship business in Louisville, Kentucky. We are major distributors to a number of major brands producing a variety of fast moving consumer good.
Some of our products include toiletries, candy, dry goods such as coffee, tea and sugar. Others include beverages, water, baked goods, consumer electronics (memory cards and sticks), office supplies, clothing and cleaning products.
These goods are highly patronized and demanded by consumers. We offer a unique service by making these available to consumers, while creating an effective distribution channel for these companies. As major distributors, we have a great incentive in the form of competitive pricing which allows for profitability.
- Our Products
We only distribute finished consumer goods and provide these at wholesale prices to retail businesses who mostly sell to end users. Some of our products include razors and blades, dry goods (tea, sugar, coffee, and beans), consumer electronics in the form of memory cards and sticks, beverages, bottled water, and candy.
Others include baked products, office supplies (pens paper, printing ink), clothing, cleaning products and toiletries. These products are manufactured by top brands and made available to us at discounted rates.
- Vision Statement
Our vision is to become a major fast consumer moving goods distributor in Kentucky within 2 years of our operations. However, this is not our ultimate aim as we are determined to break into the top 20 major distributorships in America within a decade of our operations.
- Mission Statement
We will only work with major and reputable brands in distributing quality products to our target market. To achieve this, we have considered quality and affordability as our major target areas. By so doing, we will be building a trusted distributorship brand that will be toast of major retail businesses that depend on our supply chain.
Financing for our FMCG distributorship business will be sourced from bank loans. These would be banks the proprietor Evelyn Hunt does business with. The sum of $700,000.00 is required. The application for this loan is already in progress. This loan will attract an interest rate of 2% monthly. The loan is repayable in 15 years.
80% of this sum will be spent in renting warehouses within Louisville, payment for our first consignment of products, and purchase of delivery vans. The 20% remaining will be used as running costs for the period of 3 months.
- SWOT Analysis
We have done a SWOT analysis of our business operations. This enables us measure our chances as well as health. The findings have been eye-opening and will help us adapt to realities. These findings are shown below;
Our strength is found in our ability to easily enter into an agreement with some of the best brands. These agreements give us an excellent profit margin that makes our operations increasingly profitable. Having committed a decade of her life managing 2 of the most formidable consumer products manufacturing industries, this network gives us an immense advantage.
Penetrating the market is a herculean task. This is because there are several other FMCG distributorship businesses. These have a strong hold on the market. However, this weakness will only be short-lived because we intend to leverage on our relationship with product suppliers. While doing that, we will also increase the intensity of our marketing campaigns to penetrate the market.
The opportunities are great for us. We have entered into talks with smaller retail businesses. These businesses sell to end consumers and would form our vast network of clients. We will also provide competitive pricing to enable them do business with us.
Threats abound in the business ecosystem. We have identified our threat and it is in the form an economic meltdown. This adversely affects all manufacturing due to high production costs, which in turn puts us out of business.
- Sales Projection
Our profitability depends on attracting high sales. Our FMCG distributorship business has sought to find out the extent of future patronage for our products through a sales projection. This has shown a great potential for us as demand is likely to improve as shown below;
- First Financial Year $380,000.00
- Second Financial Year $700,000.00
- Third Financial Year $1,500,000.00
- Competitive Advantage
Our competitive advantage is hinged on the networks we have with some of the reputable FMCG manufacturing companies. We are going to take advantage of this relationship in fostering a meaningful partnership that enhances our business growth.
- Sales and Marketing Strategy
Our sales strategy we have come up with is to enter into a productive relationship with smaller retail businesses. The more they are, the better. These are symbiotic relationships where we benefit from each other. Our FMCG will be supplied to these retailers at attractive rates who will then sell to end users.
This FMCG distributor business plan sample has attempted to summarize sections a good plan should have. It uses an imaginary distributorship business for the purpose of guiding the reader on what to he/she is expected to focus on.
This will only be possible when you have some background knowledge of how things work. A survey or feasibility study of the market will supply you with these information.