45. Place (Distribution)

Your business plan should include details about the distribution methods that are going to be used for your products. Various points need to be included in your business plan. These are:

Outline of distribution network – This section should deal with your plan on how you will get your product to the customer. Include the different means you are going to use like website or direct retailing or via salespersons. Most businesses rely on more than one method to ensure smooth delivery line for their products.

Channel of Distribution – Include details of various levels your product will go through before getting to the customer. For e.g. a cheese business would reach the customer directly in supermarkets while the same is not possible for an electrical appliance as you need various level of distributors to direct your product to the customer. Include details about all these channels that you product may pass through.

Costs – Details of the costs involved with the distribution should be included in this section. These may vary greatly depending on the type of business you plan to start.

Delivery time frame and terms – Include details about the terms of service for the distributors and the methods that you are going to use to ensure effective time frames of product delivery.

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