Promotional Products Distributor Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Promotional Products Distributor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Promotional Products Distributor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be available for download after your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Promotional products are important form of advertising for many small businesses. This includes having branded apparel, pens, stationery, and other items that can be easily embossed with a businesses logo and address. As such, promotional product distributors almost always able to remain profitable and cash flow positive in any economic climate given that these items are continually going to be in demand. It should be noted that many economically secure businesses only work with promotional products distributors in order to ensure that they have a continuous stream of purchase orders on a monthly basis. By aligning the business with certain companies like medical and healthcare businesses – promotional product repeaters can ensure that revenues remain stable in any economic climate. The gross margins generated from the sales of promotional products is moderate.
Typically, these businesses are able to generate several different types of revenue. First, many of these businesses maintain an on site graphic designer that can assist the client with putting their logo onto any type of specific promotional product. Generally, the gross margins generated from the service range anywhere from 70% to 90% depending on whether or not the graphic designer is an independent contractor. Second, the sales of the actual promotional product itself usually generates gross margins ranging anywhere from 40% to 60% depending on the item being produced and distributed. Usually, startup costs for new promotional product distribution business ranges anywhere from $50,000 to $100,000 depending on whether or not the equipment needed to make the promotional products will be kept within the company’s facilities.
Given that these businesses deal with a large amount of inventory, furniture, fixtures, and equipment – most financial institutions will provide a significant amount capital for a new promotional product distributor. Many entrepreneurs that enter this field typically use a working capital one credit to finance their underlying operating expenses until the business reaches profitability. Of course, a promotional products distributor business plan is going to be required. This business plan should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business rations page.
Within this document a full demographic analysis outlining the companies to be targeted for the company services should be developed as well. This includes overlying the annual revenues, industries targeted, annual profits, and the amount of money that any specific client will spend on promotional products in any given month. Given that many people now use the Internet to find these products, the demographic profile can be somewhat minimal as the company will be able to rendered services to businesses throughout the country.
A promotional products distributor marketing plan needs to be produced as well. Foremost, is that the business these have an expansive online presence so the individuals can quickly find the company when they do a search request for specific types of promotional products. The company’s website should showcase the full inventory of the company, how quickly promotional products can be produced, and the anticipated cost based on a per unit basis. A presence on social media is a moderate importance of this type of business given that most people actually use search engines rather than social media in order to find these companies. However, a presence on social media can boost the brand-name visibility of the business especially among small business entrepreneurial pages that act as communities. As such, these businesses can benefit significantly by having a modest presence on FaceBook, Twitter, Google+, and LinkedIn profiles of promotional products have been developed in the past.
A promotional product distributor SWOT analysis should be produced as well. This document outlines the strengths, weaknesses, opportunities, and threats that are common to this type of industry. For strengths, promotional product distributors generate moderate gross margins from two different revenue sources. They are usually able to remain profitable and cash flow positive in any economic climate. The barriers to entry are considered to be moderately low. For weaknesses, this is a highly competitive industry and the Internet has made even more competitive given that companies can offer their services to anyone else within the United States. As such, the promotional products distributor to find ways to effectively differentiate itself from other competitors in the market. For opportunities, frequently that these companies grow as to the acquisition of promotional product businesses that are already in operation. Additionally, the business can source a number of unusual products that can be embossed with a small to medium-size businesses logo and contact information. For threats, there is nothing at this time that would impact the way that these companies conduct their operations.
A promotional product that you can be a great business for someone that is looking to become an entrepreneur to start. These are relatively easy businesses to operate and they do not require a large capital commitment in order to get them profitable. The primary concern for these types of businesses and that this is an established anticompetitive industry. Again, the entrepreneur looking to start a promotional products distribution business is going to need to have a strong differentiating factor is how they will provide these products to the general public. In the long run these businesses can become extremely lucrative and they have a very high sales value once a highly predictable stream of purchase orders is developed among the business public.