reseller business plan

How to Start a Reseller Business: 7 Tips and Ideas for 2024

A reseller business can be a great option for first-time entrepreneurs. With this business model , you don’t need a revolutionary new product idea to start your own ecommerce business. In fact, you don’t even have to manufacture your own products, meaning it’s less of a hassle to get the business started. 

Interested? Then read on to learn the meaning of reseller, why you should become a reseller, and how to start a reselling business online.

Start selling online now with Shopify

What is a reseller?

A reseller is a person or company that buys products from different suppliers and sells them to their own customers (usually at a profit). Resellers often provide some value-add in terms of the customer experience, which enables them to mark up the price of the items they sell. This could be something as simple as an in-depth product description, a customer loyalty program, or live chat support.

Sourcing products isn’t necessarily easy and often requires a large capital investment. Resellers are able to navigate this by purchasing products only after they’ve made a sale and have been paid by the customer. Think of reselling as a form of dropshipping , where individuals source materials and products from a variety of suppliers but do not commit to selling through any purchased inventory upfront.  

→ Click Here to Launch Your Online Business with Shopify

This business model is easier for the average person to start and can be highly profitable, especially if you have niche expertise. For example, someone who is highly knowledgeable about fashion could start a reselling business around the different clothes that are currently on trend.

What are the advantages of being a reseller?

There are a number of benefits to starting an online resale business:

Launch your business sooner

Becoming a reseller allows you to start a business quickly. You don’t need to wait for inventory to arrive or wait for anything at all, for that matter. You can set up and launch the same day you build your online store. After you’ve added a few great reseller products and some content to your store, you can start marketing your business.

Carry no inventory

Another advantage of becoming a reseller is that you don’t have to carry inventory. You can source products from dropshipping suppliers, who allow you to resell without having to purchase inventory in advance. You only pay for goods as customers order them from your website, making it a great choice for new entrepreneurs. Even if you sell niche products or boutique clothing , you can still make a profit without holding stock.

Resell an extensive range 

If you become a reseller, you’ll be able to sell a vast range of products. If you resell clothes, you can offer shoes, jewelry, accessories, handbags, lingerie, or related products as your business grows. Adding other products to your reseller online shop won’t cost more, as you only pay for goods that customers buy from your store.

Lower your financial risk

A benefit to starting a reseller business is that the financial cost is low. This is the perfect business for budget-conscious and risk-averse entrepreneurs. You won’t need to buy bulk inventory. Shipping fees aren’t sky high in a reseller business. You only pay for goods as customers order them through your reseller online shop. Thus, the financial risk of doing business is low.

Set your own Margins

When you become a reseller, you’re free to set your own margins. You can choose to price your products however you want. Since the cost of goods is low, you can price your products to ensure your reseller business is profitable. The higher you set your price, the more you can make. Be sure to look at industry standards for product pricing.

How to become a reseller

• Register your business. Get a business license where you do business and/or are incorporated. To resell in other states, you'll need to file a Foreign Qualification .
• Check into state laws. In most states, you should be able to use an out-of-state reseller’s permit that eliminates the need to pay sales tax on resale items. However, this won't apply in every jurisdiction. Make sure to check the state laws on reselling before you open for business.
• Get a resale permit. File one for each state where you purchase and sell items. Some fees may apply.

In the United States, a resale permit allows individuals to purchase certain items free of sales tax. However, you do have to collect the sales tax from customers and send it to the state. 

The sales tax laws vary by state, with each state levying its own sales tax rate. Some states also require resellers to collect local sales tax, which must be sent separately from the statewide sales tax. Check with your local jurisdiction to learn what taxes apply in your case.

4 reseller business ideas/opportunities 

In a reseller business, you can sell virtually anything . You can start a clothing store or resell shoes or even vintage products. The fact that you don’t have to invest in manufacturing and product development makes reselling a great home business idea to start and grow as you see fit. 

1. Clothing business

Clothing is a huge opportunity, as you can resell to women, men, and children of all ages. When running a reseller clothing business, you can test a few different clothing niches at a time and decide which ones work the best for you. You can remove low-performing styles without incurring any cost and add new items as they come into fashion. 

When setting up a reseller business idea like clothing, it is important to plan ahead, because clothing lines are cyclical depending on seasons and popular holidays.

2. Pet supplies store

Pet supplies offer a wide range of choices—from clothing to food to leashes and everything in between. Pet parents always need supplies, so there's ample opportunity to turn a profit by reselling.

Dog and cat parents are the most popular audience to target, but you can also resell products that appeal to owners of niche pets like rodents, pigs, or fish. Use social media to share your products and get customers to show off their purchases online in order to gain traction.

3. Cosmetics business

As a reseller business idea, selling cosmetics online can be a great way of making money, as shipping is relatively low and order volume is normally larger than the average. 

Cosmetics don’t just mean makeup, though. It can mean skin care creams and hair care products also. This means you can start a reseller business that caters to men and women of all ages in one store.

4. Car accessories business

Starting a reseller business for car accessories can be very profitable if you understand the market. People spend a lot of time in their cars nowadays and want to make them as comfortable as possible. 

Research what your customers want and source them from reputable resellers to ensure your reviews are always positive. Some product ideas are car seat storage bags, car seat back hooks, luminous car parking cards, radio receiver tuner with FM transmitter, and car Bluetooth speakerphone.

How to make money with a reseller online shop

You likely want to make money fast with your new reseller business. Fortunately, there are many strategies you can implement to ensure your reseller online shop grows and remains profitable.

Price your products well

While marketing your products is important, pricing your products well can help ensure that your business remains profitable. Some blogs recommend having a $2 profit to stay competitive. This is terrible advice. 

Your product price shouldn’t just cover the cost of goods. It also covers the cost of marketing, employees (when you start hiring), expenses such as Shopify fees, and more. As long as your product price makes sense for the market, you don’t need to underprice yourself.

Run social media ads

In general, Facebook ads tend to be the most popular choice for resellers. But TikTok and Instagram ads are also gaining traction due to their growing user base and commerce features.

You’ll need to experiment with different platforms to see where your brand resonates best with the audience. Perhaps TikTok could be your best-performing marketing channel, especially if you're good at making personalized short videos. Experiment, analyze, and double down!

Create content around your business

From video marketing to blogging, content creation can help elevate your brand’s presence. The more high-quality content you create, the more likely you are to drive traffic back to your store. By consistently creating content for your brand, you’ll find that, over time, your sales will grow. 

Need more marketing ideas? In our post How to Market a Product , you’ll find 24 different effective marketing tips that can help you drive more traffic to your store. Using the tips in the article, you’ll be more likely to land your first few sales in your reseller business.

Best app to find suppliers for your reseller business

DSers is a great tool for those interested in sourcing products to resell. While DSers is a dropshipping solution, the same principles apply to a reseller product dropship program. You’ll be able to resell goods from a manufacturer without carrying inventory and more. Here are a few other great reasons to consider DSers:

• One-click product import : You can choose to add hundreds of items to your store with one simple click. You can sort through order volume, high reviews, and seller rating to find the right products for your reseller online shop.
• One-click order processing : DSers’ reseller dropship app allows you to process orders in one click. Rather than manually typing in the customer’s address, you can click a button and all of the customer details will be sent directly to the corresponding supplier.
• Choose from millions of products : As someone selling reseller products, variety allows you to find the best products to sell to your customers. You can choose from millions of great products to sell to your customers. By offering customers variety, you’ll be more likely to land a sale.
• Suppliers ship products for you : In a reseller business, you won’t have to package or ship goods to customers. Your suppliers will do that for you. This saves you time and money from fewer labor costs. You’ll have more time to focus on marketing and growing your store’s sales.
• Automatic price changes : When a supplier changes its price, you can have your store automatically update your product pricing. This allows you to maintain a profitable business or offer special discounts.
• Track shipments : You can easily track your customers’ shipments in the DSers app. When customers ask questions about their package, you can give them specific information, as tracking information is easily accessible.
• Easily find products with affordable shipping : With DSers, reseller businesses can sell products with affordable shipping costs. You can choose to sort items with free shipping or ePacket shipping . This allows you to send customers their products quickly and affordably.
• You can earn more money : You’ll be able to set your own margins and keep your reseller business costs low. This type of business model gives you a better chance to earn more money than many competing brands. With low product pricing, you’ll be able to offer market pricing which still allows you to run a profitable business.

To use DSers, you’ll need to have a store on Shopify. Learn how to create a Shopify store in less than 30 minutes .

Start your reseller business today

Reselling is a low-risk way to dip your toes into launching and running an ecommerce business. Your website can be designed and styled any way you like, and you just need to add products without investing in inventory upfront. Promotions, sales, and product pricing will all be done by you. Follow the tips above to launch and grow your resale business today. 

How to start a reseller business FAQ

How do you become a reseller.

• Get a business license.
• Research state laws and regulations.
• Prep all the necessary documentation.
• File for a resale permit.

Is being a reseller profitable?

In general, resellers earn anywhere from 15% to 40% profit on the products they sell. However, your exact profit will be determined by several factors, such as your markup and overhead costs. 

Want to learn more?

• How to Sell Online: Online Selling Ideas for 2024
• Bootstrapping a Business: 10 Tips to Help You Succeed
• 10-Step Formula to Achieve Financial Freedom in 2024
• 12 Great Examples of Brand Guidelines (And Tips to Make Your Own)
• How to Work Remotely: 9 Tips & Tools to Master Remote Life

Is there anything else you’d like to know more about and wish was included in this article? Let us know in the comments below!

20 Best Websites To Sell Stuff Online (2024)

Here's a list of websites where you can make extra cash selling just about anything.

31 Best Online Jobs (With Salaries and Platforms to Apply)

Here's a list of 31 best online jobs that you can start in 2024. We've also shared hourly earnings and some websites wh…

Instagram Story Dimensions and Killer Ideas to Up Your Game

Learn proper Instagram Story dimensions, plus tips to create compelling Stories for your business.

Oberlo uses cookies to provide necessary site functionality and improve your experience. By using our website, you agree to our privacy policy.

How to Start a Reselling Business

Starting a reselling business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful reselling business.

Importantly, a critical step in starting a reselling business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Reselling Business :

• Choose the Name for Your Reselling Business
• Develop Your Reselling Business Plan
• Choose the Legal Structure for Your Reselling Business
• Secure Startup Funding for Your Reselling Business (If Needed)
• Secure a Location for Your Business
• Register Your Reselling Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Reselling Business
• Buy or Lease the Right Reselling Business Equipment
• Develop Your Reselling Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Reselling Business
• Open for Business

1. Choose the Name for Your Reselling Business

The first step to starting a reselling business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your reselling business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your reselling business.

2. Develop Your Reselling Business Plan

One of the most important steps in starting a reselling business is to develop your business plan. The purpose of a business plan is to ensure that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your reselling business.
• Company Overview – this section tells the reader about the history of your reselling business and what type of reseller business you operate. For example, are you a distributor, wholesaler, retailer, or a dropshipper?
• Industry Analysis – here you will document key information about the reselling industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your reselling business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your reselling business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your reselling business.

Next you need to choose a legal structure for your reselling business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the reselling business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start a reselling business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a reselling business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a reselling business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your reselling business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

Incorporate Your Business at the Guaranteed Lowest Price

We are proud to have partnered with Business Rocket to help you incorporate your business at the lowest price, guaranteed.

Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality…but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.

4. Secure Startup Funding for Your Reselling Business (If Needed)

In developing your reselling business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a reselling business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a reselling business that they believe has high potential for growth.

5. Secure a Location for Your Business

There are a few things to consider when looking for a location for your reselling business. You’ll want to think about the type of products you’ll sell, how much space you’ll need, and your target customers. 

Suppose you’re selling products that take up a lot of room, like furniture or large appliances. In that case, you’ll need a spacious location to display your items. You can get away with less space if you sell smaller items, like clothes or jewelry.

Think about the type of customers you want to attract. If you’re targeting busy professionals, you may prefer a high-traffic area with tons of foot traffic. If you’re targeting stay-at-home moms, a location near a grocery store or shopping mall might be more appropriate.

Once you’ve thought about these factors, start touring different locations and see which one feels the best for you. Talk to the landlord or property manager and get a feel for how they do business. If you’re comfortable with them, sign a lease and set up your new reselling business.

6. Register Your Reselling Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your reselling business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your reselling business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

A reselling business requires some licenses and permits that may vary depending on the location and the products and services. For example, you may need a business license, a seller’s permit, and a zoning permit. Contact your local licensing agency or business licensing office to find out what licenses and permits you need.

10. Get Business Insurance for Your Reselling Business

The type of insurance you need to operate a reselling business will depend on the scope of the operation. 

Some business insurance policies you should consider for your reselling business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Reselling Business Equipment

To start a reselling business, you will need to invest in some essential equipment. This equipment includes a computer, printer, scanner, and a reliable internet connection. Once you have these basics in place, you can start sourcing products to sell.

12. Develop Your Reselling Business Marketing Materials

Marketing materials will be required to attract and retain customers to your reselling business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your reselling business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional reselling business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media platforms will help customers and others find and interact with your reselling business.

13. Purchase and Setup the Software Needed to Run Your Reselling Business

To start a reselling business, you will need access to software that can help you manage your inventory and orders. A popular option for this is Shopify, which allows you to create a custom store and manage your products, orders, and customers from one central location. Additionally, you will need a payment processing solution to accept payments. 

14. Open for Business

You are now ready to open your reselling business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Ultimate Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your reselling business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start a Reselling Business FAQs

Is it hard to start a reselling business.

There is no one-size-fits-all answer to this question, as the difficulty of starting a reselling business will vary depending on the products you sell and the market you target. However, some general advice for those considering starting a reselling business is to do some research on the best reseller business ideas , and be prepared to put in the hard work required to make your business a success.

How can I start a reselling business with no experience?

If you're looking to start a reselling business with no experience, the best way is to sell online. You can create an online business or join an affiliate program. Another option is to become a dropshipper, which doesn't require any inventory or upfront costs. You can also start a social media reselling business by finding products to sell on platforms like Instagram or Facebook. The key is to find a niche that you're passionate about and start marketing to your target audience.

What type of reselling business is most profitable?

The most profitable type of resale business is one that specializes in a particular product or niche. This allows you to become an expert in your field and provide valuable information and products to your customers. It also makes it easier to market your business and attract customers.

How much does it cost to start a reselling business?

The cost to start a reselling business varies based on several factors, including the type of products or services, the size of your business, and the location. However, a ballpark estimate is around $1,000-$10,000. 

Startup costs may include the cost of inventory, marketing, and other necessary expenses. Of course, you can always start small and scale your business as needed. For example, you may only need to spend a few hundred dollars to get started if you plan to sell products that you already have on hand. Whatever the case may be, it's important to do some preliminary research and plan accordingly to ensure that your business can be successful.

What are the ongoing expenses for a reselling business?

There can be many ongoing expenses for a reselling business. Some of the most common ones include inventory costs, shipping supplies and handling fees, and advertising and marketing expenses.

How does a reselling business make money?

A reselling business makes money by buying products at a lower price and then selling them for a higher price. This can be done in a number of ways, such as through thrift stores, flea markets, garage sales , or through online resale business and marketplaces, auctions, or retail stores. 

Is owning a reselling business profitable?

There are many reasons reselling can be a profitable business . One reason is that there is a large market for goods and services, and people are always looking for ways to save money. Additionally, more people are looking to buy used items versus new ones as the trend towards environmentally conscious shopping rises. Finally, opportunities to source products at low prices can increase profitability potential for reselling businesses. 

Why do reselling businesses fail?

There are many reasons resale businesses fail. One reason is that it can be difficult to compete with larger businesses who have more resources. Additionally, it can be hard to make a profit if the business is not able to purchase products at a low price and sell them for a higher price. Finally, the business owners may not have a good reselling business model or the skills or knowledge to make it successful. They may not know how to market their products effectively, or they may not have a good understanding of what customers want. As a result, they end up losing money and eventually have to close down.

Other Helpful Business Plan Articles & Templates

How to Start a $4.2M/Year Reselling Business

• 10 months ago

Have you ever wondered how to become a reseller? Becoming a reseller with an online store can be a great way to start your own business or add another revenue stream to your existing business. 

Tia Hall started Sneak City in her parents’ garage in 2018 and has since opened two retail locations. Today, she and her business partner Anastasia Lemley make $4.2 million annually.  

They started reselling shoes they found at thrift stores for just $50. Now their business is one of the best shoe resellers worldwide.

Want to learn from Tia’s success? We have all the info you need:

What is a Reseller Business?

How to make money reselling, is a reseller a home-based business, how much do resellers make, step 1. what can i resell to make money, step 2. research your niche market, step 3. create a reseller business plan, step 4. find resale products, step 5. create your resale business model, step 6. implement your sales strategy, step 7. start marketing your reselling business, step 8. manage your inventory and sales, step 9. expand your reselling business, go resell with your own ecommerce business.

Keep reading to learn how to become a reseller business, or click any of the links above to jump to the section you need.

A reseller purchases products from a manufacturer or distributor and then sells them to customers for a profit through an online store or retail location. Tia explained how to begin a reseller business:

The easiest way to start a reselling business is to go to thrift stores and find items you can start selling online.

Check out our interview with Tia below.

You have to spend money to make more money. The trick is to find products that people are selling that you can buy and sell for more than your costs as the seller, which include the following tasks:

• Buy the products 
• Pay business expenses

For most industries, you’ll want to pay somewhere between 30-70% of what you can sell directly to your own customers. That’s what makes a reseller profitable.

Yes. Resellers can be home-based businesses, but it really depends on your living situation. Each local jurisdiction and homeowners association may have policies about whether you can start a business from home. Tia told us:

I started Sneak City out of my parents’ garage, but had to get my own shop after it started taking up too much space.

You might also want a shop if you have a large local customer base. Letting them pick up locally can improve the customer experience and reduce your business costs like gas and shipping.

Typical profit margins for reselling products or services vary widely depending on the industry and the products or services sold.

In general, resellers can expect to make anywhere from 10% to 50% profit margins on their sales. However, some industries may have higher profit margins, such as luxury goods or high-end technology products. Others have lower profit margins, such as basic household items or low-cost services.

Tia explained how much she makes to resell shoes:

We use the StockX price minus 30% to calculate the offer price when we buy items to resell.

That gives her a 30% gross profit margin in her reseller business. Keep reading to learn more about how to become a reseller business.

How to Become a Reseller Business

To become a reseller, you’ll need to:

• Decide what resale items you’ll sell
• Research your market
• Create a business plan
• Find products to buy and sell
• Start your business
• Create a sales strategy
• Start marketing
• Manage your inventory and sales
• Expand your reselling business

Keep reading to learn the straightforward steps you’ll take to become a reseller.

The products and services you can resell are virtually endless. The key is finding and selling items or services with high demand and a good profit margin. With the right strategy and execution, anyone can become a successful reseller.

Here are some possible business ideas as a reseller:

• Consumer Electronics
• Resell Clothes and Accessories
• Software and Digital Product Reselling
• Car Accessories
• Antique Furniture
• Collectibles

Find out more about each product category and why a small business might want to resell items.

Electronics

One of the most common products that resellers sell is consumer electronics. This includes items like smartphones, laptops, tablets, and gaming consoles. These products are always in demand and have high profit margins, which makes them an attractive option for resellers.

Mike Wilson is an eBay seller who started a reseller business to fill his time in retirement. He told us:

The best products to resell are the ones that you know about. From sealed VHS tapes to electronics and clothes, use your life experiences to establish what it’s worth, and you’ll make a great living. Check out our interview with him below.

Clothing and Accessories

Another popular product category for resellers is clothing and accessories. This includes items like shoes, handbags, jewelry, and clothing. Resellers can purchase these items in bulk from manufacturers or wholesalers and sell them at a markup to customers.

Software and Digital Products

Software and digital products are also popular among e-commerce store resellers. This includes items like software licenses, e-books, and online courses. These products are excellent for resellers who want to start a reselling business with low startup costs.

You can either use affiliate programs, open source software, or whitelabel digital products to resell software. Check out our interview with Mat Diggity to learn his approaches.

Not into selling physical goods? Let’s have a look at some services you can resell.

Finally, services can also be resold. This includes things like web design, marketing, and consulting services. Resellers can partner with service providers and sell their services to customers at a markup. This can be a lucrative and profitable business model for those with expertise in a particular area.

The products and services that can be resold are virtually endless. The key is finding a product or service with high demand and a good profit margin. By building the right relationships with suppliers, you’ll be on your way to becoming a successful online reseller yourself. 

Now that you have an idea of how to find suppliers, let’s look at getting customers.

Before diving into the world of reselling, it’s crucial to understand your target market. Researching your target market will help you:

• Identify potential customers
• Create a buyer persona
• Analyze your competition

This knowledge will guide you in selecting the right products to offer and crafting an effective marketing strategy. 

Identify Potential Customers

You can begin by identifying your niche. This involves determining the specific product categories or industries you want to focus on. By specializing in a particular niche, you’ll better understand your target customers and the products they’re searching for, making it easier to cater to their needs. 

Create A Buyer Persona

Creating buyer personas to represent your ideal customers is a smart way to keep your focus on your target audience. These personas should include demographics, interests, and buying habits. This information will help you tailor your marketing efforts and product selection to appeal to your ideal customer base. 

One of the aspects of the persona you really want to understand is what your customers can afford. Jim Sears makes $62K per month because he recognized that selling packs of sports cards in addition to individual and boxes of cards can be highly profitable as a reseller. He told us:

The younger generations are our target demographic, and they can’t afford boxes that sell for hundreds or thousands of dollars, but they can afford packs.

Hear more from Jim in the video below.

Research Your Competition

Finally, analyze your competition. You can research other resellers in your niche to understand their strengths and weaknesses. This will enable you to differentiate your offerings and identify growth opportunities to position yourself as a go-to source for your target market. 

Make sure to document everything you learn and share it with others to develop your niche expertise.

A reseller business plan should:

• Include an executive summary 
• Define the products or services
• Identify your target market
• Explain the pricing strategy and how you will make a profit
• Include a marketing and sales strategy
• Provide financial projections and a break-even analysis

Check out our blog about writing a business plan to learn more about these aspects.

To resell products you’ll have to find the product offerings at reasonable price points. Try these tips to get started:

• Search for directories of suppliers online
• Go to places you can purchase products
• Vet suppliers
• Get samples
• Negotiate the terms of the agreement

Search for Supplier Directories Online

For those of you who want to sell your own products or other companies new products, you’ll want to research reliable wholesale suppliers or manufacturers to source products. Look for industry-specific directories or databases that list suppliers and manufacturers in your niche. You can also use search engines to find potential suppliers and manufacturers. 

Some of the popular ones are:

• Reference USA : The website claims to have over 400 data points on the majority of businesses in the U.S including which wholesale supplier provides each of their products and when the last shipment was.
• ThomasNet : Search a wholesale database by size of company, compliance standard, types of products, and annual sales.
• Wholesale Centra l : Search their database or check out one of their tradeshows.
• Worldwide Brands : This wholesale supplier directory only lists the highest level of wholesalers and dropshippers. Cut out middle men and get the lowest prices possible.

Go To Places That Sell Items

Another way to find resale items is to go to places where people sell products. Many resellers will go to places like:

• Online Marketplaces
• Trade Shows
• Industry Events
• Used Clothing Store
• Social Media Sites
• Other Retailers
• Estate Sales

Tia told us: When we first started, most of our sneakers were found in thrift stores, but as we grew, people started coming to us.

If you’re buying from another business, you’ll need a resale license if you don’t want to pay sales tax. 

Vet Potential Suppliers

Once you have a list of potential suppliers or manufacturers, it’s important to vet them thoroughly. 

Be sure to read reviews and check their ratings on platforms like Google, Yelp, or the Better Business Bureau to ensure they have a good reputation. Then, check their credentials, such as licenses, certifications, and insurance. Ask for references and contact them to learn about their experiences working with the supplier or manufacturer. Check out this article on vetting suppliers .

Request Samples

Next, request samples of products to test their quality and ensure they meet your standards. If they don’t, keep looking. Get ready to negotiate if the manufacturer provides a good quality product. Learn more about ordering samples .

Negotiate with Suppliers

Finally, feel free to negotiate with your suppliers or manufacturers. Ask about their pricing, minimum order quantities, and shipping options. Define your expectations and requirements, then make sure you have a written agreement before purchasing products. Rocket Lawyers has free manufacturing contract templates .

With these tips, you can find reliable suppliers or manufacturers to help you become a successful reseller.

Before becoming a reseller, it’s important to understand the legal implications of this business model. You’ll need the following components in place:

• Business Structure : LLCs and corporations are popular types of businesses for resellers.
• Resale Permit : Most states have a resale permit (sometimes called a resale certificate). These allow you to buy products without paying tax. Learn more about each state’s resale permits.
• Business License : May be required by state or local governments to operate legally. This permit business license allows you to purchase goods from wholesalers without paying sales tax, as you will collect it from your customers when you resell the products.
• Business Account From Bank : Make sure to get a business bank account to keep your business finances separate.

We’re going to talk about sales taxes separately.

You’ll need to keep accurate records of your sales and purchases for tax purposes. As a reseller, you will collect sales tax and remit sales tax to the appropriate government agency. 

It’s important to familiarize yourself with your state and country’s tax laws to ensure you comply. If you reach the point that you have a national presence as an online business, you’ll have to comply with thousands of different tax requirements. Avalara is useful for sales taxes if your website doesn’t have tax handling options.

With the right strategy and execution, anyone can become a successful reseller. 

You’ll want to consider multiple ways of selling your resale products when you start a reselling business. Some of the most common ways of selling include:

• Listing on Amazo n: Find out how to sell products on the world’s largest online marketplace by dropshipping products .
• Niche Marketplaces : Selling on specialty platforms can be a great way to sell products fast. With StockX you can resell the product immediately if there is a bid you are willing to accept on the type of product you are selling.
• Your Website : If you don’t get sales through a website, you’re leaving a lot of money on the table because a business grows by collecting data and increasing lifetime customer value. Learn how to create a website.
• Social Media : You can develop a following and sell on social media. Learn to earn on TikTok .
• Retail Store : Sell in your own retail store or provide wholesale orders to other retailers.

Marketing your reseller business involves:

Setting Prices

Creating a brand, networking , providing great customer service.

Get ready to learn how to market a reselling business.

Competitive pricing is one of the best marketing strategies for resellers to attract customers. Customers are always looking for the best deals, so make sure your prices are the same as your competitors. You can also offer discounts or promotions to entice customers to choose your products over others. 

Our dropshipping blog has an example of how pricing works.

Another effective strategy is to focus on building a strong brand image. This means creating a unique and memorable brand identity that resonates with your target audience. 

Use social media platforms to showcase your brand and engage with customers. You can also invest in professional branding services to help you create a cohesive and effective brand image.

Mike Andes told us:

The goal of branding is to bring your customer acquisition costs down as low as possible over the long term.

Learn more about branding.  

Networking is crucial for resellers. Attend industry events, trade shows, and conferences to connect with potential customers and other professionals in your field. This will help you build relationships and establish yourself as a trusted and knowledgeable reseller in your industry. Check out some networking groups for businesses .

Finally, customer service is key to attracting and retaining customers. Focus on providing outstanding customer service by responding quickly to inquiries and resolving issues promptly and efficiently. Positive reviews and word-of-mouth recommendations from satisfied customers can go a long way in attracting new customers to your small business.

Get some great customer service tips .

Choosing the best inventory management and sales software for resellers depends on various factors such as budget, business size, and specific features needed. Here are some top options: 

• Amazon Seller Central
• Zoho Inventory

Each of these services offers a range of features, such as inventory tracking, order management, and shipping management. These tools will help you provide all the necessary documentation to file your taxes. Resellers should evaluate each service based on their specific needs and budget before choosing the right one for their business. 

To expand your online resale business, consider some of these options.

• Upsell customers. A reselling business can do this both in person and in your own ecommerce store.
• Increase your marketing spending.
• Start reselling additional products.
• Create a customer loyalty program.
• Partner with or buy other businesses.
• Add a retail store.
• Expand to other regions.
• Open a reselling business e-commerce store if you don’t already have one.

Now to know how to become a reseller. 

You are sure to find plenty of amazing used products to resell at garage sales and the variety of other places we’ve named above. Never forget one person’s trash is another person’s treasure. 

What kind of items would you like to resell?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

Related posts

• April 11, 2024

Best Networking Groups for Small Business Owners

• April 5, 2024

Best Franchise Under $50K (2024)

• April 3, 2024

How to Start a $1M/Month Tow Truck Business

Join the discussion cancel reply.

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

1 thoughts on “How to Start a $4.2M/Year Reselling Business”

thankyou very much i like your article

https://www.fms-model.com

Compare listings

Reset Password

Please enter your username or email address. You will receive a link to create a new password via email.

Home » Building Online Stores » How to Start a Reselling Business: Steps and Ideas

How to Start a Reselling Business: Steps and Ideas

Our independent research projects and impartial reviews are funded in part by affiliate commissions, at no extra cost to our readers. Learn more

Written and researched by:

For all the “internet gurus” telling you that their way of making money is THE way to make money online – the reality is that there are lots of legitimate ways to generate profit on the internet. The trick is picking one that appeals to your own interests, skills, resources, and goals.

For example, starting a brand can be highly profitable, but will likely require a high level of financial input and time before sizable profits are generated. It can be a little more tricky to make large profits with dropshipping , although getting started can be considerably easier than some other methods.

In this article, we explore one tried and tested method of generating profit online. Reselling has been used by many small businesses and entrepreneurs to help them achieve success. We’ll look at what a reselling business is, how to start one, and explore some ideas to get you started.

What Is a Reseller?

Resellers are much as they sound. Someone who purchases something (usually a product) and then resells it. The goal of a reseller is to resell the item at a profit. 

You can find resellers in practically any niche. There are two approaches you can take to making a profit by reselling:

• Buying below market value and selling at market value
• Buying at market value and selling above market value

Option one typically sees businesses buying products wholesale and/or tax-free in order to make a profit once resold at market value.

Those who take option two rely on products with scarcity such as event tickets or hard-to-find game consoles. For example, many people have generated large profits by purchasing hard-to-source PS5 consoles and reselling them at a profit at a later date.

Although often more profitable, option two can be considered ethically questionable. Profits from this option can also be short-lived.

More Information

• What is a Consignment Shop? : Learn more about this type of online store

Advantages of Starting a Reselling Business

There are countless benefits to starting a reselling business. We list seven of the biggest ones below:

• Get selling/making a profit quickly
• No need to carry or manage ecommerce inventory
• No product development costs
• No direct manufacturing costs or challenges
• Leverage already well-established brands
• Easy to scale
• Low commitment to one product or brand

How to Start a Reselling Business: Step-By-Step

Ready to find out how to start a reselling business yourself? We’ll walk you through the six simple steps now!

#1. Choose Your Niche

Picking a niche is essential to reselling success. Finding your niche and developing a deep knowledge of it will help you find better deals and resell for higher profits.

For example, a great comic book reseller will easily be able to spot popular/rare comic books that are priced below market value. This makes it easy for them to find opportunities to make profits. In niches such as comic books, developing skills for spotting potential fakes can also be beneficial to help protect you from making expensive mistakes.

When picking a niche ask yourself:

• What am I passionate/knowledgeable about?
• What products can be purchased cheaply and sold at a profit?
• Which products are popular?

#2. Register Your Business

Before you start reselling you will need to register your business. This can be fairly straightforward, simply:

• Pick a business name
• Choose your business structure
• Incorporate your business

Doing this will provide you with the licenses you need to start operating. Once you are incorporated you will be able to leverage business advantages such as tax breaks and wholesale buying options.

#3. Research Laws and Permits

Depending on where you are based and the types of products you are reselling, you may need to apply for a permit. You may also need to check the rules of other states if you plan on selling across state lines.

Simply search for the rules based on the states you are operating in.

#4. Set Up an Online Store

Once all the formalities are taken care of, it’s time to set up your online store. Thanks to leading ecommerce website builders such as Shopify, Wix, and Squarespace this can be a simple and even highly enjoyable task.

• Pick your platform of choice
• Decide on your URL
• Start building your store using the tools provided

#5. Source Your Items

Without items to sell, it is impossible to make a profit. So, sourcing your items is an important part of getting set up with reselling.

Where you source your items will depend on the niche and the approach you are taking. Here are a few examples of places you may be able to source products from:

• Direct from brands
• Online marketplaces (such as eBay )
• Wholesalers (such as Alibaba )
• Garage sales

Find Out More

• Learn more about How To Source Products To Sell Online – we have a whole guide to help you out!

#6. Promote Your Online Store

At this point, you should have everything you need to start reselling online. Well, almost everything… you also need to find customers who want to buy the product you are selling.

This is where digital marketing comes in.

There are countless digital marketing methods you can use to promote your online store. Some of the most popular include:

• Social ads – which allow you to target individuals based on several factors such as location, interests, and income.
• Email marketing – helping you nurture potential customers and drive direct sales.
• Organic social media – building trust with your customer base through posting high-value content
• Search engine optimization – driving traffic to your online store through search engines such as Google
• Influencer marketing – working with influencers in your niche to get your products in front of your audience and endorsed by an individual that is trusted by them
• Learn How To Build an Influencer Marketing Strategy to promote your brand on social media

Best Reseller Business Ideas

Still not sure where to get started? We have some reselling business ideas to inspire you!

Here are some products you can sell online that are typically great for reselling:

• Antiques – often one-of-a-kind, can buy low and sell high, perfect if you know what you are looking for
• Concert tickets – high-demand tickets often sell out, making reselling highly profitable
• Games consoles (such as PS5) – supply chain issues can lead to these being hard to get hold of
• Trainers – always in demand, rare pairs can be resold for high profit
• Toys – buy low at garage sales and make a profit by selling them on your website
• Collectibles (such as Pokemon cards or comic books ) – easy to make big profits when you know what to look for
• Fine art – big profit to be made when you can connect the right piece with the right buyer
• Luxury handbags – always in demand

How to Start a Reselling Business: Summary

It is clear that reselling can be a great way to develop a revenue stream online. And now you know how to start a reselling business yourself! Picking a niche will help you focus your efforts and develop your knowledge in the best ways to drive the most profit possible. Follow the steps and advice we have outlined in this guide to give you the best possible start in reselling.

What is reselling?

How do i start reselling, written by:, found this article helpful.

Share this article or comment below!

Leave a comment

• E-commerce Guides
• Social Media
• Green Commerce
• Customer Focus
• Online Payments
• Case Studies

Start Your Reseller Business

Putting time into sourcing quality products, taking decent photos and writing detailed product listings pays off. Most importantly, having good communication with your suppliers and customers is crucial to the survival of your business.

As with any new business, a lot of work is needed for it to kick off, before you know if it will be a success. Recent studies show that the growth rate of selling second-hand items online is increasing much faster than that of brand new items. With the resale industry booming, it seems like the prime time to create your own reseller business.

When getting started, it is beneficial to draw up a business plan to stay on track with a clear vision of how to make your business a success. Conducting market research will give you insight and clarity to determine particular aspects of your business, such as deciding what products to sell, and where you will source them from.

Research will help you predict the profit margin and profitability of the products you wish to sell. You will also need to consider how and where you will store inventory, and create a system to keep on top of what has been sold and what has not.

The next thing to think about is finding the right platform to suit your needs. With many options, most resale platforms specialise in selling certain types of products, so naturally using one that aligns with your intended product will help you reach your target audience.

Ecommerce resale platforms will often offer a business account to sellers, which will help you setting up your profile, listing your products, and processing sales. At this stage, it is worth checking to see if there are any product listing fees, or if there is a limit on how many listings you can have on the site.

In order to be able to process your orders, you will need to decide on which payment gateway to use, also taking into account any transaction fees. Learning about the local and international postage costs, including packaging, will equally be important to know when it comes to pricing your products. It is also useful to set up an account system and keep track of all income and expenses, as well as any income and sales tax.

Let’s take a look at some best practices and advice from successful resellers to see how these steps contributed to their success.

Case Study #1

Justin , who sells roughly $5300 worth of items on eBay per month

• He began by buying one used motorbike, dismantling it, and reselling the parts. Using the money made from the first sales, he gradually increased his earnings and inventory each month, reaching around $39,000 in inventory online.
• Justin learned that negotiation and respectful bargaining was crucial to getting a good deal on his purchases in order to make a good enough profit on his sales, while maintaining a good relationship with his suppliers.
• He makes use of assisting systems like eBay Labels and the Global Shipping Program to make the shipping process easier and less work.
• When interacting with customers, he is upfront in his listings and makes it easy for buyers to return items if they do not meet their expectations.

Case Study #2

Marvin , who made $10,000 reselling on Amazon in 4 months

• He started by choosing his product niche in the grocery sector, initially spending $500 on inventory.
• With a background in finance, he quickly deduced that focussing on selling cheaper items with around 20% ROI and just $2.00 profit. The lower margins meant he was able to have a higher turnover, which increased his income quickly.
• Over time, he built up a good relationship with his suppliers, so much so that they often offer him deals in order to clear their shelves quicker.
• To keep track of everything, Marvin built an inventory spreadsheet, which enabled him to have an overview of the profitability of each item each month.

Case Study #3

Oliver , who made a £70 000 profit in 2017 by reselling on Depop

• After conducting market research, he found he could sell an item of clothing on Depop for double the price he paid for it.
• By sourcing authentic, unique, limited edition items that are in high demand, he discovered buyers were willing to spend more and he was able to put prices up.
• Using studio lighting enables Oliver to take high-quality photos, which he knows to be important when creating listings and marketing on social media.
• Oliver has developed his reseller business and now sells pre-owned designer products and streetwear from his own ecommerce platform.

Key Takeaways

As we can see when looking at these examples of successful reseller business owners, by doing meticulous market research and planning, they were able to scale up their businesses.

Final recap: Do’s and Don’ts

Emily da silva, related articles.

Start a dropshipping business

How to Test a Product Before Launch

How to Write a Winning E-commerce Business Plan

Infographic - How to Start a Business from Home

Start your journey with us.

Free trial for 14 days. No credit card required.

Reseller Business Plan

$59.00 $39.00 1 review

Resources On Reseller

• Financial Model
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model

Marketing Plan

• Bundle Business Plan & Fin Model
• Description

Executive Summary

Products & services, market analysis.

• Management Plan
• Financial Plan

The reselling industry in the US has been dominated by traditional retailers, making it difficult for small resellers to enter the market. Additionally, resellers often struggle with inventory management and logistics, which can significantly impact their profitability. As a solution, Niche Drop aims to provide a seamless and efficient dropshipping model that enables resellers to partner with suppliers and sell niche products online without managing inventory or logistics. This business model fills a need in the market for resellers who want to offer unique and quality products while avoiding the challenges of inventory management and logistics.

Niche Drop aims to provide a seamless and efficient dropshipping model for resellers in the US, solving the problem of inventory and logistics management. By partnering with reliable and quality suppliers, the company will source unique and niche products in the beauty, fashion, and home decor industries. Resellers can then sell these products on popular online marketplaces without having to carry inventory or handle shipping and logistics.

With a focus on building strong partnerships with suppliers and efficient order fulfillment, Niche Drop will provide resellers with quality products that are delivered on time to their customers. This will allow resellers to focus on sales and marketing while leaving the operational aspects of the business to Niche Drop.

By providing a solution that saves time, money, and resources, Niche Drop aims to become a leader in the reselling industry and establish a strong brand presence on online marketplaces.

Target Market

Our target market consists of resellers and entrepreneurs in the United States who are looking to offer niche products in the beauty, fashion, and home decor industries. These individuals are interested in taking advantage of the dropshipping business model to avoid inventory and logistics management, while still offering unique and quality products to their customers.

We will reach our target market through online marketplaces such as Amazon, Etsy, and eBay, where they are most likely to search for these types of products. We will also establish business partnerships with reliable and quality suppliers to ensure that our customers are satisfied with the products and delivery times. By focusing on the needs and preferences of our target market, we aim to become a trusted and go-to source for niche products in the online reselling industry.

Competition

The reseller market is highly competitive, particularly in niche product areas such as beauty, fashion, and home decor. Niche Drop will be competing against other resellers who offer similar products through online marketplaces. These competitors range from small-scale Shopify stores to large resellers with established brand recognition.

Consumers also have the option to purchase directly from suppliers or brick-and-mortar stores, although online marketplaces offer greater convenience and often lower prices. Direct competition for Niche Drop will come from other resellers who offer similar niche products, as well as online retailers such as Amazon and Etsy who offer a wide variety of products including those in Niche Drop's focus areas.

To differentiate from competitors, Niche Drop will focus on providing high-quality products, a streamlined and efficient dropshipping process, and building strong partnerships with reliable suppliers. The company also plans to continually expand its product offerings to include additional niche areas within the beauty, fashion, and home decor industries.

Financial Summary

Our financial plan is designed to ensure profitability while minimizing costs and maximizing revenue. Here are the key highlights of our financial plan:

• Projected revenue of $500,000 in the first year of operation
• Net profit margin of 30% by the end of year two
• Initial funding of $250,000 to cover startup costs and inventory purchases
• Revenue growth of 50% year over year for the first three years of operation
• Efficient supply chain management to ensure timely and cost-effective order fulfillment
• Cost of goods sold will be minimized through direct sourcing from suppliers
• Online marketplace fees will be factored into the cost structure to ensure profitability

With a sound financial plan in place, we are confident in our ability to establish Niche Drop as a leader in the reselling industry.

Funding Requirements

Our company, Niche Drop, requires a total funding of $250,000 to cover our initial startup costs and inventory purchases. The breakdown of the required funding is as follows:

• $100,000 for initial startup costs, which includes legal fees, website development, and marketing expenses.
• $150,000 for inventory purchases, which will be used to establish strong partnerships with reliable and quality suppliers.

We plan to pitch to investors with a clear outline of our funding requirements and how we intend to use the funds to achieve our business goals. The funding will allow us to establish a strong presence on popular online marketplaces, optimize our supply chain process, and expand our product offerings. With a focus on niche products in the beauty, fashion, and home decor industries, we aim to generate $500,000 in revenue in the first year of operations and achieve a net profit margin of 30% by the end of year two.

Milestones and Traction

At Reseller Business Plan, we have a clear roadmap in place to achieve our business goals. Our current milestone is to establish strong partnerships with reliable and quality suppliers in the beauty, fashion, and home decor industries. Once we have secured these partnerships, we plan to build a strong brand presence on online marketplaces such as Amazon, Etsy, and eBay.

Our next milestone is to streamline and optimize the supply chain process to ensure efficient and timely order fulfillment. We plan to achieve this by implementing an automated system for order processing and fulfillment. This will allow us to scale our operations and expand our product offerings to include additional niches within our target industries.

With a focus on revenue growth, our ultimate goal is to generate $500,000 in revenue in the first year of operations and achieve a net profit margin of 30% by the end of year two. To support this growth, we are seeking to secure $250,000 in funding to cover initial startup costs and inventory purchases. Our plan is to increase revenue by 50% year over year for the first three years of operation.

We believe that by executing on these milestones, we will be able to establish Reseller Business Plan as a leader in the reselling industry, providing quality and unique niche products to customers while offering a seamless and efficient dropshipping model for resellers.

Problem Worth Solving

The problem that Niche Drop aims to solve for its customer base is the hassle of inventory and logistics management. Resellers in the US who focus on niche products often struggle with carrying inventory and managing the logistics of shipping and order fulfillment. This can be a costly and time-consuming process, which takes away from the core business of reselling products. With the dropshipping model offered by Niche Drop, resellers can focus solely on marketing and selling products without having to worry about managing inventory or shipping logistics. This saves them time and money, allowing them to focus on growing their business and generating revenue. Additionally, the company's focus on quality and unique products within the beauty, fashion, and home decor industries solves another pain point for consumers who are looking for one-of-a-kind items that are not readily available in traditional brick-and-mortar stores.

Our Solution

At Niche Drop, we offer a unique solution for resellers in the US. Our dropshipping model allows resellers to offer niche products sourced directly from reliable and quality suppliers, without having to manage inventory or logistics. This solves the problem of resellers who want to offer unique and high-quality products but don't have the resources to handle the associated costs and complexities.

Our solution ensures that resellers can focus on building their brand and online marketplace presence, while we take care of the supply chain and order fulfillment process. By partnering with our supplier network, resellers can offer products in the beauty, fashion, and home decor industries that are not easily found in other online marketplaces. This sets resellers apart and helps them create a loyal customer base.

We provide a seamless and efficient system that handles everything from product sourcing to delivery, allowing resellers to maximize their profits and grow their businesses. Our solution is ideal for entrepreneurs who want to start a business with minimal investment, as well as established resellers who want to expand their product offerings and increase their profits. With Niche Drop, resellers can focus on what they do best - marketing and selling products - while we take care of the rest.

Validation of Problem and Solution

There is a growing demand for unique niche products in the beauty, fashion, and home decor industries. However, resellers often face challenges such as inventory management, logistics, and shipping. This makes it difficult for them to offer a seamless buying experience for customers. Dropshipping as a business model solves these issues by allowing resellers to partner with suppliers who directly ship products to customers.

According to a report by eMarketer, in 2020, the US eCommerce market grew by 18% to reach $709.78 billion, and this trend is expected to continue. This presents a huge opportunity for niche resellers to establish a presence on online marketplaces as consumers are increasingly turning to eCommerce to purchase products.

In addition, a survey of 1,000 US consumers by BigCommerce found that 48% of respondents preferred to shop online due to the convenience it provides, while 51% of shoppers stated they are more likely to purchase from a retailer that offers a unique product selection.

With Niche Drop's model of offering niche products through dropshipping, resellers can meet customer demands for unique products while avoiding the challenges of inventory management and shipping. By establishing strong partnerships with quality suppliers and optimizing the supply chain process, Niche Drop can provide a seamless and efficient dropshipping model that meets the needs of resellers and customers alike.

Product Overview

In the reselling industry, competition is fierce. However, Niche Drop aims to stand out by offering a unique selection of niche products sourced directly from high-quality suppliers. Unlike some of our competitors who offer a wide range of products, we will focus on the beauty, fashion, and home decor industries to establish a strong niche presence. Our company will prioritize establishing strong partnerships with reliable suppliers and streamlining the supply chain process to ensure timely and efficient order fulfillment. We also plan to build a strong brand presence on popular online marketplaces such as Amazon, Etsy, and eBay, to attract customers looking for unique niche products. With a focus on quality, reliability, and customer satisfaction, Niche Drop aims to become the go-to reselling platform for niche products in the US.

Roadmap - Products & Services

As a reseller, Niche Drop will focus on offering niche products in the beauty, fashion, and home decor industries through a dropshipping model. Here is a roadmap of the steps taken so far and the plan for establishing and growing the business:

Niche Drop will continue to focus on sourcing quality and unique niche products while establishing strong partnerships with reliable suppliers. The company plans to expand its product offerings and build a strong brand presence on popular online marketplaces through excellent customer service and quality products. Collaborations with influencers and bloggers will also be explored as a means of growing the business.

Market Segmentation

Market segmentation is the process of dividing customers into specific groups based on their characteristics. The following HTML table illustrates potential customer segments for the reseller business plan:

The reseller business will primarily focus on these customer segments to generate revenue by providing niche products at competitive prices without the overhead of carrying inventory or managing logistics.

Target Market Segment Strategy

Our ideal customers are small to medium-sized resellers in the US who specialize in selling niche products but face challenges in managing inventory and logistics. These customers would benefit from our business model as it allows them to resell products without the hassle of storing inventory or managing shipping and logistics. Additionally, our dropshipping model enables them to sell products at a higher price than they pay the supplier, thereby increasing their profit margins. We plan to target these customers through online marketplaces where niche products are often sold and build partnerships with our suppliers to ensure a reliable supply chain.

Key Customers

Our ideal customer archetype is the entrepreneurially-minded reseller looking to sell niche products online without the hassle of inventory or logistics management. They value efficiency and convenience in their business operations, and appreciate the benefits of dropshipping for their bottom line. They are active on established online marketplaces and are seeking reliable supplier partnerships to ensure quality products and customer satisfaction. This customer segment will be our main advocate for the value we provide in the reselling industry.

Future Markets

Based on the analysis of the market and the business model, the potential for growth in the reseller market is significant. The niche product market is constantly expanding, and the demand for unique products is continuously increasing among online shoppers. As a result, the dropshipping model provides resellers with a great opportunity to enter and thrive in this market without carrying inventory or handling logistics.

Furthermore, the online marketplace channel offers extensive access to customers who are not limited by geographical location. With an effective online presence and strategic partnerships with suppliers, the potential for revenue growth is high.

Our business strategy is suited to capitalize on this market potential by focusing on building a strong supplier network and optimizing our online marketplace presence. As we expand our reach and expertise, we plan to explore opportunities to target new customer segments and enter new markets.

Here is a table of potential competitors in the dropshipping market:

While there are several competitors in the market, our strategy to focus on niche products and establish strong partnerships with suppliers will set us apart from the competition.

Marketing and Sales Plan

Our marketing strategy will focus on reaching our target audience of resellers through online marketplaces and social media advertising. We will allocate a budget for targeted Facebook and Instagram ads, as well as Google Adwords. Additionally, we will establish partnerships with influencers in the niche industries we serve to promote our brand and products.

Our advertising channels will include:

Location and Facilities

Niche Drop utilizes the latest eCommerce technology to ensure seamless order fulfillment and provide a superior user experience. Our online marketplace presence is optimized through the use of advanced product listing and management tools that streamline the process of uploading and managing product listings across multiple platforms. We also use automated inventory management software that syncs with our supplier network in real-time, allowing us to accurately monitor stock levels and ensure timely order fulfillment. Furthermore, we utilize analytics tools to track sales performance and identify trends, enabling us to make data-driven decisions to optimize our product offerings and marketing strategies. By leveraging technology in this way, Niche Drop is able to provide exceptional value to our reseller customers and establish ourselves as a leader in the dropshipping industry.

Equipment and Tools

For our dropshipping model, we will require minimal equipment and tools. The following table outlines the necessary items and their associated costs:

We will ensure that our computers are equipped with necessary software for managing our online marketplace presence and communicating with our suppliers efficiently. The internet connection will be reliable to ensure that we can respond to customer inquiries and orders in a timely manner.

We will also ensure that we have a contingency plan in place in case any equipment or tools fail or are damaged, to prevent any disruption to our business operations.

Management and Organization

Organizational structure.

Our reseller business operates with a lean organizational structure that emphasizes efficient management and communication among employees. The following HTML table provides an overview of our structure:

Communication between levels of the organization is facilitated through regular team meetings and a centralized system for sharing information and updates. As a company that operates primarily online, we prioritize clear and efficient communication to ensure timely decision-making and problem-solving.

Management Team

As a reseller operating through a dropshipping model, our company will require a lean management team with strong expertise in e-commerce and supplier partnerships. A table of potential candidates we anticipate taking on high-level management roles within our company includes individuals who have experience in online marketplace management, supplier relationship management, and strategic planning. Our management team will be responsible for developing and executing key business decisions, such as selecting the right niche products to sell and expanding our supplier network. We will strive to create a collaborative and supportive workplace culture that encourages innovation and continuous improvement.

Management Team Gaps

Currently, the reseller business plan lacks candidates for specific positions within the management team. These positions may include experts with experience in supplier negotiation, online marketplace optimization, and financial management. It is important to fill these roles with individuals who possess the necessary skills and knowledge to ensure the company's success. The recruitment process for such candidates is ongoing, and we are actively seeking qualified individuals to join our team.

Personnel Plan

Running a successful reselling business requires a team of skilled professionals. The following table outlines the potential positions that we expect to require in order to run our business effectively:

We plan to start with a lean team and hire additional staff as the business grows and requires additional support.

Company History and Ownership

Niche Drop was founded in 2021 by a team of experienced entrepreneurs in the beauty, fashion, and home decor industries. The founders recognized a gap in the market for a reselling company that specializes in niche products, while also providing a seamless and efficient dropshipping model for resellers.

With a combined experience of over 20 years in sourcing and selling products online, the founders have established a strong supplier network and built a reputation for quality and reliability. The company is privately owned and operated, with a shared vision of becoming a leader in the reselling industry.

The company's history has played a crucial role in shaping its business plan, as it has allowed the founders to leverage their existing relationships with suppliers and knowledge of the market. This has enabled Niche Drop to develop a well-defined value proposition and identify key partners and channels for reaching resellers in the US.

As a reseller using the dropshipping model, the following milestones have been established:

Key Metrics

As a reseller operating through a dropshipping model, it is crucial to keep track of key performance indicators (KPIs) that help gauge the overall health and success of the business. Some key metrics that should be monitored include:

• Sales revenue
• Profit margin
• Conversion rate
• Customer acquisition cost
• Website traffic and engagement
• Supplier reliability and fulfillment rate

By tracking and analyzing these KPIs, we can make informed decisions about where to allocate resources and optimize our business processes to improve profitability and growth.

Financial Plan and Metrics

Sales forecast.

Below is a table outlining our projected sales for the next three years, broken down by product categories:

We aim to increase our revenue by 50% year over year, and with our focus on niche products and strong partnerships with reliable suppliers, we believe we can achieve these projections.

Starting and operating a reseller business using the dropshipping model requires some expected and incurred costs. These costs can be categorized into startup costs and operational expenses. Below are the details of these costs with the total at the bottom of each table:

The total startup cost for the reseller business is estimated to be around $9,500, while the monthly operational expenses are expected to be approximately $3,375. These costs will change depending on the business size and how it operates. It's important to consider all expenses and maintain a clear and accurate record of these expenses to ensure the success of the business.

Projected Profit and Loss

Here is a profit and loss statement for the next three years (2023, 2024, and 2025) for Niche Drop:

Based on these projected numbers, Niche Drop is on track to achieve its financial and funding goals. The company expects to generate $500,000 in revenue in its first year, with a net profit margin of 30% by the end of year two. It plans to secure $250,000 in funding to cover initial startup costs and inventory purchases. The goal is to increase revenue by 50% year over year for the first three years of operation, and with this model, it is achievable.

Projected Cash Flow

Below is a projected cash flow statement for the first three years (2023, 2024, and 2025) of operations:

This table provides an overview of the inflow and outflow of cash for each year, as well as the resulting net cash flow and cumulative net cash flow. The company aims to achieve a net profit margin of 30% by the end of year two, which will contribute to positive cash flow and cumulative net cash flow. Additionally, increasing revenue by 50% year over year for the first three years will support continued growth of the business and positive cash flow.

Projected Balance Sheet

Below is a table showing the projected balance sheet for the Reseller Business Plan for the next three years.

The projected balance sheet shows that the company's assets are expected to increase steadily over the next three years, as well as the equity. The liabilities, however, are expected to remain relatively stable.

As a dropshipping reseller, we do not require a large team to operate. Initially, we plan to handle all business activities ourselves, including partnering with suppliers, managing our online marketplace presence, and handling customer relationships. However, as the business grows, we may consider hiring specialized employees to help us in these areas.

When we do hire employees, we will emphasize a competitive compensation package. We believe in fair wages and benefits for our employees, which will help us attract and retain the best talent. Additionally, we will prioritize creating a positive and supportive work environment that values teamwork and creativity.

Overall, our personnel plan will be focused on mindful growth and creating a strong team that aligns with our values and business goals.

Use of Funds

Below is a breakdown of how the $250,000 funding will be used:

The majority of the funding will be allocated towards inventory purchases to ensure a strong product offering at launch. The remaining funds will be used for initial startup costs, marketing and advertising, and website and technology expenses.

We believe that this allocation of funds will position us for success and enable us to achieve our financial goals in the first year of operations.

Exit Strategy

Our goal is to build a successful and profitable business that can attract potential buyers or investors. We plan to position ourselves as a valuable company in the online marketplace industry, making us an attractive acquisition target for larger companies.

In addition, we are open to the possibility of selling our business to a family member or employee who shares our vision and passion for entrepreneurship. We believe that a smooth and successful transition can be achieved through careful planning and communication.

Regardless of the exit strategy we choose, our priority is to ensure that our customers, suppliers, and employees are not negatively impacted by any changes and that our business operations continue to run smoothly.

$199.00 $119.00 Get Bundle

Customer Reviews

Frequently asked questions.

• Current item: Reseller Business Plan $59.00 $39.00
• Financial Projection Model, Financial Model, Financial Modeling For Startups, Startup Financial Analysis $49.00 $29.00

Sample Reseller Business Plan

Reseller business plan sample.

Though a viable option for many, a reseller business isn’t a stroll in the park.

In other words, a significant amount of work must be done to get the expected outcomes, especially in the planning and execution phases. Now, not everyone knows how to go about writing a comprehensive plan.

For many, such a procedure can be overwhelming, so this reseller Business Plan has been made available.

This is written in response to persons seeking guidance on how to write their own unique and comprehensive reseller business plans.

If you face such problems, this article should prove very helpful.

The Sections to Cover

Proper plan structuring is of utmost importance as it sets the tone for how things develop. Each section covers a specific aspect of the plan considered key to its full and proper implementation.

Also, your audience will need to find specific details that help showcase the viability of the business.

These sections include the executive summary, company description, and products & services sections.

Others are the market analysis, strategy & implementation, organization & management team, and the financial plan & projection.

Besides mentioning these critical sections of a good reseller business plan, it’s also essential to fully understand how each needs to be developed or the information to be presented.

For more clarity, we’ll get into details on each of these points as follows;

i. Executive Summary

The executive summary section is often considered the mini-plan because it gives an overview of what’s contained in the reseller business plan.

It’s a condensed version of the plan about 2 to 5 pages long and touches on each of the abovementioned sections.

It’s concise and presents an optimistic view of your reseller business. More important is the need to capture or hold the reader’s attention to make them want to learn by digging in further.

To achieve this effect, it’s necessary to give it your best shot by ensuring it’s well put together.

Areas covered in the summary include the business name and location, the services and products, mission and vision statements, and the specific purpose of the plan.

This helps reveals a lot about your reseller business.

Anyone going through the plan will want to first learn about the name. Stating its identity serves as the first step toward introducing the business.

Also critical is the need to state where your reseller business will be.

Next, provide information on the services and products to be offered. A brief explanation of these and the scope they cover should be enough.

It’s necessary to avoid getting into long, drawn-out details as you’re still within the summary. There’s a section for all of that.

Your mission statement should be a single statement that describes your business’ fundamental purpose.

This is given by stating why it exists. It should also include a hint of the solutions your reseller business plans on implementing to attain its goal.

The vision statement should state your reseller business’s current and future objectives. It’s an aspirational statement that helps articulate the goals to be achieved.

This should inspire your workforce to create a shared purpose for its attainment.

ii. Company Description

As the name implies, the company description section of your reseller business plan should focus on explaining your operations and how you intend to achieve your goals.

Areas to be touched on here include the business’s legal structure and the summary of your short and long-term goals.

How do you intend to make a profit with your reseller business? Please provide a brief history of the business as well as its nature. Also, state the needs or demands you plan on supplying through your services.

A summary of business growth with accompanying financial or market highlights will be a great addition.

iii. Products & Services

Products and services on offer are crucial and must be added to the plan.

For more comprehension, you’ll need to cover details such as products and/or service costs, suppliers, net revenue expected from product or service sales, and what benefits these offer to the customer.

Products and services still in the research and development phases need to be stated. Identify the market role of your service or product and its advantages over your competitors.

iv. Market Analysis

Your industry knowledge is tested or assessed by what you include in this section.

To have a real shot at success, you’ll need to conduct thorough market research with findings touching on crucial areas like evaluating your competitor’s weaknesses and strengths and a sketch of target customer segments.

Such sketches should be presented alongside details like size and demographics.

Further additions to the market analysis section are historical, current, and projected marketing data for services and products and an industry outlook with supporting statistics.

v. Strategy & Implementation

What are your sales and marketing strategies?

Showing how these will be implemented is also crucial to your success. Here, you’ll need to provide information on pricing, costs, promotions, and distributions.

Explain how you plan on promoting your reseller business to customers and how you’ll enter the market.

How will your business function? Will there be a need for a workforce? If so, what are your labor sources, and how will the business hire many employees?

vi. Organization & Management Team

Your reseller business’s organization and management team are central to its success.

Here, provide an organizational chart showing departments and key employees. Also, give details on the owners such as names, percentage ownership, the extent of involvement, and biography.

The management team will need details like their names, positions, primary responsibilities, and prior experience.

vii. Financial Plan & Projection

Your financial plan is essential and should be developed with the assistance of a professional accountant.

Areas covered here include historical financial data, practical prospective financial information, and a brief analysis of financial data.

Using this reseller Business Plan increases your chances of success regarding proper plan development.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

• Crafting an Effective Partner Business Plan: Essential Elements for Success

Share this article

Print/Download PDF

By  Harrison Barnes

Rate this article

899 Reviews Average: 5 out of 5

Discuss Partners on Top Law Schools

• ideas on how to network with judge's son who is partner?
• Networking/taking a partner at a firm out to lunch?
• NYC Study Partners- for those truly motivated
• 165+/Retake Study Partner?
• Arizona Study Partner

Partner Business Plans: Key Elements

• The Crucial Role of Business Plans in Law Firm Partner Success
• Maximize Portables in Your Business Plan in Order to Maximize Interest in You

The Importance of a Great Business Plan

Professional Goals For Partner Status

Making an evaluation of your existing practice, describing your vision as a partner, creating a strategy for growth.

• A partner's fit culturally
• The viability of a partner's practice for the long-term
• A partner's record of excellent client service to long-term clients and producing business
• A partner's history of consistently increasing collections
• A partner's practice fit in connection with the firm's strategic plan for expansion
• Whether a partner's practice area is one that is targeted for growth
• Whether the partner brings portable business and/or specific expertise needed in a particular practice area
• The opportunities the partner would bring for business development and significant cross-selling were the partner to join the firm
• Whether the partner's historical information is reflective of consistent productivity
• Whether the partner's client base fits within the firm's client structure
• Any potential conflicts that would preclude the firm from hiring the partner
• A partner's current compensation and compensation expectation
• A partner's potential contribution to the firm's bottom line/profitability
• A partner's fit within the firm's current attorney roster
• A partner's reason for leaving his or her current firm (voluntary/mutual arrangement) and whether the partner would be a problem
• Creative: Serve as a marketing piece on the partner and enable the firm to assess the partner's business potential. It should also provide an outlet to the partner to step out of the resume format and chart his or her previous performance and future prospects for business in a creative format.  
• Illustrative: Illustrate to a firm that the partner is thinking about his or her practice as a business and set forth his or her plan for the future.  
• Persuasive: Persuade the firm to hire the partner.  
• Historical: Chart a historical record of the partner's history of creating business opportunities and his or her ability to develop and foster client relationships over an extended period of time.  
• Demonstrative: Demonstrate a partner's business-development skills, initiative, and ability to contribute not only to his or her own success but also to the success of his or her colleagues through cross-selling efforts. It should also demonstrate ways a partner can contribute to a firm's financial bottom line, enhance its practice-group development, and ultimately bring added value to the team.  
• Prophetic: Prophesy what the partner believes he or she will be able to accomplish in his or her practice and for the firm in the short and long term.  
• Preparatory: Prepare the partner for the interviewing process.

Introduction

• Provide a narrative including professional history, practice overview, and a description of areas of expertise. This section may highlight briefly particular areas of expertise that the firm does not currently have.
• Describe the partner's role historically as a business developer.
• Briefly touch upon why the partner believes he or she would be a good fit for a particular firm.

Market Research/Analysis

• Give analysis of local need for services in partner's practice area.
• Describe local competition/other law firms with similar practices.
• Give overview of need in local market for partners with his or her expertise.
• Describe why partner believes firm provides the best platform in the marketplace for his or her particular practice area.

Current Client Base

• Describe current portable clients (use generic or specific).
• Describe key industries serviced.
• Discuss other partners' clients partner is servicing.

Additional Contacts to Develop

• Discuss contacts not yet tapped.
• Given market analysis, project possible targets in local, regional, national, or international markets.
• Discuss possible expansion of business from current client base.

Cross-Selling Opportunities

• Describe cross-selling opportunities with current clients.
• Describe cross-selling opportunities with known key clients of prospective firm.
• Discuss other practice areas at current firm to which partner is delegating work.
• Discuss services your clients are requesting that you cannot currently service at your firm and could otherwise capture at the new firm .

Other Business-Development Sources

• Describe additional business contacts you are pursuing or plan to pursue
• Speeches, publications
• Community organizations
• Bar associations
• Internal marketing initiatives
• Client seminars/newsletters

Long-Term Strategy Goals and Targets

• Set targets for expansion of practice in terms of collections, attorneys, and clients/industries.
• Consider possibility of local to regional to national growth patterns.
• Consider growth in other key competencies which may be affected by partner's long-term success.
• Discuss long-term strategies in connection with firm's overall strategic plan and practice-group development plans.

Historical Collections, Billing Rates, and Billable Hours

• If a partner with a lower billing rate structure, chart the anticipated rate increases by portable client or anticipated timeline for rate increases to current clients. Discuss any alternative billing arrangements you currently have in place with clients.
• Include three-year client collections history by client (as originating attorney and as billing attorney on other attorneys' matters). Include projection for current fiscal year.
• Include three-year billing rate history.
• Include three-year historical compensation history (including bonus information).
• Include three-year billable hour history.
• Note pending projects contributing to future collections.
• Include a summary of anticipated collection projections for the next three to five years.
• Business-development budget
• Time commitments from partners in other practice areas for cross-selling purposes
• Key staff needed (secretary, paralegals, etc.)
• Foreign-language skill requirements
• Travel expenses
• Marketing materials, presentations, etc.

Creative Conclusion

• Recap key points in plan, added value partner brings, and reasons he or she would be a good fit.
• Emphasize flexibility of plan and eagerness and willingness to discuss and modify in accordance with firm's plans and objectives.
• See 30 Ways to Generate Business as an Attorney for more information.

Want to continue reading?

Become a free bcg attorney search subscriber..

Once you become a subscriber you will have unlimited access to all of BCG’s articles.

There is absolutely no cost!

Harrison Barnes does a weekly free webinar with live Q&A for attorneys and law students each Wednesday at 10:00 am PST. You can attend anonymously and ask questions about your career, this article, or any other legal career-related topics. You can sign up for the weekly webinar here: Register on Zoom

Harrison also does a weekly free webinar with live Q&A for law firms, companies, and others who hire attorneys each Wednesday at 10:00 am PST. You can sign up for the weekly webinar here: Register on Zoom

You can browse a list of past webinars here: Webinar Replays

You can also listen to Harrison Barnes Podcasts here: Attorney Career Advice Podcasts

You can also read Harrison Barnes' articles and books here: Harrison's Perspectives

Harrison Barnes is the legal profession's mentor and may be the only person in your legal career who will tell you why you are not reaching your full potential and what you really need to do to grow as an attorney--regardless of how much it hurts. If you prefer truth to stagnation, growth to comfort, and actionable ideas instead of fluffy concepts, you and Harrison will get along just fine. If, however, you want to stay where you are, talk about your past successes, and feel comfortable, Harrison is not for you.

Truly great mentors are like parents, doctors, therapists, spiritual figures, and others because in order to help you they need to expose you to pain and expose your weaknesses. But suppose you act on the advice and pain created by a mentor. In that case, you will become better: a better attorney, better employees, a better boss, know where you are going, and appreciate where you have been--you will hopefully also become a happier and better person. As you learn from Harrison, he hopes he will become your mentor.

To read more career and life advice articles visit Harrison's personal blog.

Article Categories

• Legal Recruiter ➝
• Attorney Career Advice ➝
• Advice for Partners ➝
• Business Plans

Do you want a better legal career?

Hi, I'm Harrison Barnes. I'm serious about improving Lawyers' legal careers. My only question is, will it be yours?

About Harrison Barnes

Harrison is the founder of BCG Attorney Search and several companies in the legal employment space that collectively gets thousands of attorneys jobs each year. Harrison is widely considered the most successful recruiter in the United States and personally places multiple attorneys most weeks. His articles on legal search and placement are read by attorneys, law students and others millions of times per year.

Find Similar Articles:

• strategic Partnerships
• risk Analysis
• regulatory Compliance
• professional Development
• Partner Business Plans
• legal Advice
• law Firm Planning
• governance Strategies
• goal Setting
• financial Management
• crisis Management
• corporate Structure
• contract Negotiation
• conflict Resolution
• business Law

Active Interview Jobs

Featured jobs.

Location: California - Costa Mesa

Location: Texas - Houston

Location: Arizona - Tucson

Most Viewed Jobs

Location: California - Walnut Creek

Location: New York - New York City

Upload Your Resume

Upload your resume to receive matching jobs at top law firms in your inbox.

Additional Resources

• Harrison's Perspectives
• Specific Practice Areas
• The Winning Mindset

BCG Reviews

I loved the daily updates and reminders. I also loved how I felt like BCG was on my side and gave me validation before m.... Read more >

Patricia Craig

Touro College Jacob D. Fuchsberg Law School, Class Of 2013

Becca was great. She was super supportive and very communicative. She emphasized that getting things to firms early is r.... Read more >

New York University School of Law, Class Of 2012

I thought that the people that I worked with were very supportive. I worked primarily with Carleen Trapp and I really ap.... Read more >

James Torres

Harvard Law School, Class Of 2014

My recruiter helped me achieve my life-long goal of working in a big law firm. When every recruiter I spoke to said ""no.... Read more >

Marnie Kudon

Vermont Law School, Class Of 2005

It's hard to narrow down my favorite thing about BCG Attorney search, but I think that from the beginning to the end, Ha.... Read more >

Jonathan Schall

Notre Dame Law School, Class Of 2019

I enjoyed the responsiveness. I was licensed in a different state and BCG helped me get a job in a different jurisdictio.... Read more >

Christian Orozco

Vanderbilt University Law School, Class Of 2012

Popular Articles by Harrison Barnes

• What is Bar Reciprocity and Which States Allow You to Waive Into the Bar?
• What Do Law Firm Titles Mean: Of Counsel, Non-Equity Partner, Equity Partner Explained
• Top 6 Things Attorneys and Law Students Need to Remove from Their Resumes ASAP
• Why Going In-house Is Often the Worst Decision a Good Attorney Can Ever Make
• Top 9 Ways For Any Attorney To Generate a Huge Book of Business

Helpful Links

• The BCG Attorney Search Guide to Basic Law Firm Economics and the Billable Hour: What Every Attorney Needs to Understand to Get Ahead
• Quick Reference Guide to Practice Areas
• Refer BCG Attorney Search to a Friend
• BCG Attorney Search Core Values
• Recent BCG Attorney Search Placements
• What Makes a World Class Legal Recruiter
• What Makes BCG Attorney Search The Greatest Recruiting Firm in the World
• Top 10 Characteristics of Superstar Associates Who Make Partner
• Off-the-Record Interview Tips From Law Firm Interviewers
• Relocating Overseas
• Writing Samples: Top-12 Frequently Asked Questions
• The 'Dark Side' of Going In-house
• "Waive" Goodbye To Taking Another Bar Exam: Typical Requirements and Tips to Effectively Manage the Waive-in Process
• Changing Your Practice Area
• Moving Your Career to Another City
• A Comprehensive Guide to Working with a Legal Recruiter
• A Comprehensive Guide to Bar Reciprocity: What States Have Reciprocity for Lawyers and Allow You to Waive into The Bar

Related Articles

A Career Guide for Law Firm Partners

Practice Management

Marketing Your Law Firm Through Practice Groups

Related Video

• What is a Counsel and How does it Compare to a Partner�

Related Podcast

• How Any Attorney Can Get a $100+ Million Book of Business, Become a Partner in a Major Law Firm, or Start a Successful Business and Retire Whenever They Want�

When you use BCG Attorney Search you will get an unfair advantage because you will use the best legal placement company in the world for finding permanent law firm positions.

Don't miss out!

Submit Your Resume for Review

Register for Unlimited Access to BCG

Sign-up to receive the latest articles and alerts

Already a subscriber? Sign in here.

Resources Library

FAQs from Sales teams about Partnerships

Partner selection and what it means to Allbound

2024: The Year of Partnerships [Report]

The journey to the ecosystem - Part 3

The art of retention: How to keep partners for the long haul

The ultimate partner journey guide

Is direct dead?

Gamify your partner milestones to surpass engagement goals

How to maintain an optimal partner experience as your partner tech stack evolves

How to evaluate and iterate your partner program

What metrics should you track in your partner program?

8 ways to sign more partners to your partner program

How to select the right partners for your program

Sign up for our newsletter.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Horse Reseller Business Plan

Start your own horse reseller business plan

GFX: Gravestat Farm eXchange

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

GFX: Gravestat Farm eXchange will be a business entity which applies 21st century technology and business practices to an ageless business environment.

Live business experimentation over the last 12 months has identified that this modern approach to a traditional business yields a substantial competitive edge and extraordinary customer appeal. The overall concept, once fully operational, will be highly successful, able to sustain a profitable company with the potential to expand exponentially.

This business plan is submitted in an effort to secure start-up funding in the amount of $110,000 to allow GFX: Gravestat Farm eXchange to graduate from experimentation into a fully operational business entity. The funding request incorporates a healthy ratio of additional investment and operating capital. These are intended to provide the final pieces necessary to implement the plan while providing a safe and realistic ramp-up period towards a profitable future.

GFX: Gravestat Farm eXchange is a home based business, located north of Chandler, in Lincoln County, Oklahoma, and is owned and operated by Edward A. Graves and family. A successful business career culminating in a final position as U.S. Sales & Operations Manager for an international software development company, in conjunction with over three years of experience in the area of this business proposal, provides a foundation of expertise and experience that further assures the success of this venture. The full implementation of this plan requires no further employees, nor business locations, thus providing for the lowest possible operating costs without sacrificing any revenue potential. Rather, it concentrates on providing a full range of traditional products (with a powerful and unique addition) through e-commerce, event attendance, and home based sales.

1.1 Business Overview

It is of critical importance at the outset of reviewing this business plan, that the reviewer be willing to break some general preconceptions over the general nature of GFX business.

GFX is not a farm.   GFX is not a horse ranch. GFX is a Web-centric, event vendor, and retail location resale company.

There are two traditional ways to help visualize GFX:

• A full line tack and equine supply store.

In example #1 above, this option simply does not currently exist for the horse buyer (virtually every other type of pet, but not for horses).  Hobby horse owners are forced to purchase horses through either: A) a “breed farm” offering a quality of horse well beyond the buyers needs and price range, or  B) through a variety of “horse trader” outlets, none of which employ even a minimal level of acceptable business practice.  This leaves the buyer with the choice of paying too much for something they do not need, or buying through unscrupulous sources that more often than not, lead to a bad (and dangerous) purchase.

In example #2 above, tack and equine supply companies are a traditional and solid business.  However, not a single tack shop takes maximum advantage of the symbiotic requirements of the horse and the supply.  Every horse buyer is a potential tack and supply customer.  Every tack and supply buyer is a potential horse buyer.  It is only logical, and an unfilled market niche, to combine the two, thereby offering the buyer a 1-stop shopping opportunity.

The geographic area between Oklahoma City, Tulsa, and Ponca City, Oklahoma is known in the industry as “The Triangle”… the most active horse market in the world.  And yet, not a single company has applied these most fundamental business practices to this massive market.

GFX will operate a retail location at our location.  GFX will attend equine events in Tulsa, Oklahoma City, and Purcell (the three most active equestrian event venues in America) as a vendor.  GFX will maintain a strong Web presence with an online catalog and shopping capability.

GFX applies modern business practices and technology to one of the oldest and most reliable markets.

1.2 Personal Credit Worthiness

In the critical area of personal credit worthiness, we ask the reviewer to make particular note of this section and include it with all considerations for this loan request.

We have enjoyed an historically excellent personal credit history. Early on we began to identify the business opportunity that has since resulted in this business proposal and request for funding. We set our sites on this goal and began investing heavily, with every available personal resource, in the experimentation that has led to the current GFX formula. At times perhaps, we invested too heavily. During the course of last year and through the present date, we have had to carefully play the “cash flow game.” At times we have fallen behind, and at times we have pulled ahead. At present we are even. We make note of this to the reviewer since we expect some degree of negative reflection to appear on a standard credit report. We would ask that the reviewer consider the level of dedication and investment that we have put forth prior to seeking a formal funding package, along with our credit rating prior to this time period.

The key issue is that we have executed our personal finances responsibly in the past, and have only stretched our personal financial limits in pursuit of this opportunity. We hope you will consider these factors favorably.

1.3 Objectives

Successful first benchmark operation to achieve the following measurable results:

20 location customers, attendance at two horse events, and 500 “Web Hits” per month resulting in:

• $20,000/month in horse sales at an average of 30% net for $6,000/month revenue.

For an initial achievement benchmark of $25,500 gross, $7,950 net, per month.

1.4 Mission

GFX: Gravestat Farm eXchange will consolidate and legitimize the representation and sale of a complete line of horse products, including the horse itself, in a safe and professional business environment. It is focused towards the needs of the pleasure horse owner, those most at risk from the traditional horse selling business. Our success will be built upon customer satisfaction brought about by complete business integrity. We will remain constantly in search of new product offerings which offer value to the customer and reasonable profit to GFX. We will utilize modern technology and methodology to insure GFX increases it’s visibility, customer base, and resulting success. GFX will establish itself as the company that set the new standard of business in the pleasure horse industry, and the one against which all others that follow will be compared.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

GFX is a retail sales organization targeted at the needs of the middle to upper class pleasure horse owner/buyer. It serves this purpose in two primary ways. First, by providing a legitimate and professional horse buying experience, virtually unavailable anywhere else. Second, by providing a “1-Stop Shop” source for a complete line of products needed to support, care for, and enjoy their horse.

2.1 Company Ownership

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

2.2 Start-up Summary

The following table shows the start-up funding requirements, and use thereof, for GFX to become operational. It contains $68,500 in start-up expenditures, $14,500 in inventory investment, and $42,000 in operating capital for the first six months of GFX operation.

To fund these requirements, we are seeking a ten-year loan of $110,000 for the business, to be backed by the equity in the owners’ home.

2.3 Company Locations and Facilities

GFX will be located and primarily operated at our residential address on State Highway 18, nine miles north of the Turner Turnpike (I-44) Chandler exit, in Central Oklahoma.

The property presently includes 15 sectioned and fenced acres, a 50′ x 100′ barn, 2800 sq.ft. brick home, mobile home, and small storage shed. This location is ideal for the sale of horses as it is directly on a state highway nearly equidistant (1 hour’s drive) from Oklahoma City and Tulsa, and less than 30 minutes from Stillwater, Chandler, Cushing, Stroud, and Shawnee, Oklahoma. It offers sufficient space to maintain, train, show, and sell the horses and product lines offered by GFX in a rural setting centrally located to the vast majority of Oklahoma.

As part of this business plan, GFX intends to add a small tack shop and business office at this location. We also intend to purchase 50 – 60 acres of additional nearby land for the keeping of additional horse inventory and the production of sufficient hay to feed the stock.

Business done at this location only accounts for one segment of the overall operation.

GFX will regularly attend horse events at the Oklahoma City Fairgrounds, Tulsa Expo Square Fairgrounds, and Purcell Expo Center, (three of the most active horse competition venue’s in America) as a product vendor on a regular basis.

GFX will execute a third, major segment of its business via e-commerce, utilizing an active website featuring an online catalog for tack and equipment sales executed over the World Wide Web. This site is currently in operation at www.gfarmx.com and the reviewer is encouraged to visit for a working demonstration of this segment of the GFX overall strategy.

GFX provides a unique “1-Stop Shopping” experience for the pleasure horse owner/buyer by providing a complete line of horse related products, including the horse itself, at our location in Central Oklahoma, as a vendor at horse events, and with a website offering online catalog and purchase capabilities.

3.1 Product Description

GFX is involved in the marketing and sale of three primary categories:

• Limited line of GFX manufactured products.

1. Riding horses. This is the single greatest area of opportunity for GFX, and the foundation for our business. It has been identified as an empty, but much needed, market niche. The number of people who wish to buy a horse, or horses, for family use in Oklahoma, given the rural nature of our state, is countless.

These people currently have four choices of places from which to buy:

• Horse Ranches which sell only registered and bloodline stock that, while typically well trained and conditioned, are priced for competitive use far beyond the reach or needs of the typical buyer.

We have discovered that by working with a few select sources, we are able to purchase exceptional riding horses at very reasonable prices. We can then apply Web marketing and professional business practices to offer these horses for sale at a comfortable profit margin. Customers, most of whom have been “burned” in previous purchase attempts through the sources listed above, are relieved when they encounter our business practice. They are more comfortable with the standard business ethics we apply, satisfied with the price, and anxious to tell others to make their future purchases through GFX. The sale of horses will take place almost entirely at our residence.

2. Full line of resale products. This is probably the most traditional aspect of the GFX business plan. We have found a variety of horse related product distributors and manufacturers anxious to have us resell their products.

Specifically we have reached agreement with:

• Pelikan Industries, distributor of 2.4 Ghz wireless CCTV systems, ideal for barn & mare monitoring.

These initial relationships have been established over the last three months, primarily to experiment with the willingness and terms of the providers. Having successfully completed this exercise, we plan to attend “Equitana,” the largest equine trade show in the world, this coming June, to establish additional relationships for resale products.

The resale of products will take place primarily as we attend horse competition events around the state of Oklahoma, secondarily via our online catalog on our website, and third, to local residents and customers who visit our facility for the purchase of horses.

3. Limited line of GFX manufactured products. We have identified a variety of horse and farm products that can be easily manufactured at our location with minimal investment in metalwork equipment and material. Examples that we have already identified include portable corrals, portable stalls, hay feeders, saddle-racks, and modular barns. Most of these items, and many more to be experimented with in the future, can be manufactured and sold direct to the public at prices far below the mainstream products they will imitate while simultaneously providing an exceptional profit margin to GFX.

The resale of our GFX manufactured products will take place primarily as we attend horse competition events around the state of Oklahoma, secondarily to local residents and customers who visit our facility for the purchase of horses, and third, via our online catalog on our website.

We have selected these three primary revenue opportunities specifically for each one’s ability to support the other two while complimenting our three primary sales strategies of Web commerce, event selling, and home retail location.

3.2 Competitive Comparison

Another major competitive edge possessed by GFX is the experience and expertise of its management in business practices. A long and successful career in professional sales, marketing, and operational management gives me a foundation upon which to build this business that is extremely foreign to nearly all of the competitors. As is true in many businesses, it is often the experienced business person who is successful at a given venture while a person with an extensive background in an area fails. I have the unique ability to provide a competitive edge in simple business and marketing practices that the customers will recognize, appreciate, and reward, but of which the competitors, quite frankly, do not have a clue.

Nowhere is this more true than in the cornerstone of GFX, the resale of horses. It can not be stressed enough how wide open this large and profitable market is for the successful institution of professional selling practices. “Horse Trading” is a no-rules business as most who have ever purchased a horse have found out, and those who sell horses know. The most common theme among people who have contacted us during our experimentation stage is how grateful and appreciative they are of this approach.

Finally, the computer and Web skills we possess, particularly in contrast to our competitors in this business, offer a substantial competitive edge. Our ability to generate marketing material, create and publish digital images, and create and edit our own website provide tools that are necessary by default in today’s business environment.

Horses, tack, and equipment can be purchased from many sources. However they can not be purchased through a single source and are not represented with business, marketing, and sales expertise. Not, that is, until GFX receives this funding package and opens for business!

3.3 Sales Literature

One of the hidden assets of the GFX management team lies in their ability to create and publish quality sales literature independently.

The best example of this capability, and the central point for all future marketing efforts, is the GFX website. We encourage the reviewer of this document to visit this site now for a full review of these capabilities at: www.gfarmx.com .

Every facet of this website, its design, creation, upkeep, and modifications are accomplished entirely by Edward and Leanna Graves without the use of any external resource.

Display literature for events will also be produced on our home business computer system. Our computer knowledge, digital photographic equipment and expertise, graphic skills, and marketing experience makes this not only a realistic goal, but insures that we are able to create and modify appropriate and effective sales literature as needed, without delay, to respond to any immediate marketing need.

Market Analysis Summary how to do a market analysis for your business plan.">

Ideally located on a state highway in central Oklahoma, GFX has access to a major market. It is our opinion that every rural household member living on five or more acres of property is a potential GFX customer.

The 1996 Census Projections reflects a total Oklahoma population of 3,358,044 persons living in 1,286,607 households. Of these, 39.8% live at a rural address making for 512,070 households with a total of 1,336,501 potential customers.

In addition however, GFX has also had positive contact from people in Texas, Missouri, Colorado, and Arkansas. That said, we believe our total available market to extend well into all of the states surrounding Oklahoma.

Of course, the Web marketing segment of GFX is virtually unrestricted by location and therefore provides access to the multi-million dollar equestrian market.

Americans have had, and continue to have a love affair with “The Horse” since the beginning of our economy. GFX will apply maximum effort and all of our cumulative skills to leverage this love affair on a local, regional, and national level.

Strategy and Implementation Summary

The successful Strategy and Implementation of GFX relies on the culmination of a lifetime of education and experience. We will utilize these life assets to execute the content of this plan beyond the projections contained herein. Broken into its simplest terms, the GFX strategy and implementation is based on these simple executables:

1.  Five primary marketing methods:

2.  Four primary product lines:

• GFX manufactured product.

3.  Three primary outlets:

• On our website.

4.  Two primary assets:

• Horse knowledge and expertise of Leanna Graves.

5.  One primary need:

• Funding to allow this plan to become a reality.

Together, we (Edward & Leanna Graves) possess every bit of experience, knowledge, ability, and proven history, to execute each of the key issues identified above. The only thing lacking is the financial resources to bring the GFX plan to fruition. Provide that single missing piece and the reviewer of this document will be “throwing the switch” on a long term, successful business entity known as GFX: Gravestat Farm Exchange.

5.1 Sales Strategy

We will be utilizing experienced sales skills to close sales once we are in contact with a prospective customer.

• For Web sales this will be accomplished through the creation and maintenance of a pleasurable, convenient, and comfortable Web catalog and online purchase capability.

5.2 Value Proposition

GFX offers the prospective or limited horse owner the opportunity to purchase a quality riding horse, along with all of the extras and essentials that are both necessary and desirable, in a uniquely professional and ethical business environment.

5.2.1 Sales Forecast

The following table and chart provides an extremely conservative forecast of GFX projected sales over the next three years. It shows a steady but realistic annual growth as GFX gains wider recognition in Oklahoma for riding horses, and nationally for tack and supply.

The following are anticipated positive influences over the attached forecast that have not been calculated in.

• Potential exponentially increased sales with successful manufacturing and production of GFX Manufactured Products.

5.3 Marketing Strategy

The GFX Marketing Strategy relies on a variety of exposure methods, all targeted to yield maximum exposure from minimum expenditure. They include:

• Finally, we will never underestimate, and intend to leverage to the fullest extent, simple positive word-of-mouth marketing. Every horse owner typically knows several other horse owners, and/or spikes the horse owning interest in others. GFX will leverage this highly effective marketing method by providing an exceptional customer buying experience and pleasurable business practice.

5.3.1 Positioning Statement

For the pleasure horse owner/buyer who wishes to own or add a horse but is not an expert in horses or horse care, GFX offers an ethical and professional “1-Stop Shop” to provide for all of their needs. Unlike the competitive forces in the market, GFX brings a complete line of products together with the horse itself while providing a safe and comfortable business environment.

5.3.2 Pricing Strategy

GFX will follow three primary pricing strategies in accordance with the three primary product lines:

• GFX Manufactured Products. Products that we are able to manufacture ourselves result in the most attractive pricing proposition of all, to both us and the customer. Horse products, as with most special interest products, enjoy a ridiculous margin through standard outlets. Of the products we have investigated we find that we are able to produce like products for approximately 25% of the typical retail list price, mark them up an additional 60% above cost to produce, and still offer them for sale at approximately 15% less than the competing retail outlets. This provides a very nice profit margin and revenue stream from a limited product line.

The overall pricing strategy is “VALUE.” Value in the quality of products, value in the pricing of the products, and value for the business practices and methodology employed to sell the products.

5.4 Future Strategy

Not included within the tables, charts, and projections of this business plan is a future retail location from which GFX will continue and expand its’ operation.

• The retail location is targeted for opening during the third year of GFX operation, 2002, unless business factors indicate an accelerated schedule.

Given proper execution, there is no reason for the long term future of GFX not to include multiple locations.  The same formula detailed within the context of this business proposal could certainly be carried to a number of other locations, initially in surrounding states, in which a major metropolitan area exists in a primarily rural geographic area; for example Louisiana, Arkansas, Missouri, Kansas, Colorado, & Texas would be prime targets for future expansion.  It is not beyond reason to envision a chain of GFX locations offering a full line of tack and equine supply, along with the only legitimate riding horse sales companies in existance.

Should the reviewer of this plan feel that an accelerated schedule for the opening of the first GFX retail location is warranted, additional financial analysis will be provided detailing that scenario.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

GFX will be co-managed by Edward A, and Leanna F, Graves; husband & wife, and co-owners of GFX. The combination of our talents and experience is one of the key assets to GFX.

Edward A. Graves. Successful 20 year career in sales, marketing, distribution management, operational management, and senior management culminating in current position as manager of U.S. fax sales and operations for Esker, S.A., an international software development company with projected 2000 sales of $47,000,000. In pursuit of this GFX business opportunity, tendered resignation with Esker, S.A. effective May 19, 2000 … much to the regret of Esker. GFX role: director of business affairs.

Leanna F. Graves. Partner in all home and business affairs. Has developed an extraordinary knowledge and experience base regarding all aspects of the horse. Exhibits exceptional expertise in: breeds, breeding, bloodline, medical care, conformation, desirability, marketability, training, and personality traits of the horse. GFX role: director of equine affairs.

GFX is in the horse business. Leanna is an expert in horses, Edward is an expert in business. The combination yields an extremely solid management team!

6.1 Management Team Gaps

The only significant weakness in the GFX management team lies in financial analysis and accounting principles. We intend to address these critical issues in the following ways:

• Identification of, and participation in, local seminars and/or classes in financial analysis and accounting principles.

Financial Plan investor-ready personnel plan .">

As has been stated throughout the content of this document, the financial analysis charts and tables contained herein have been built with two primary factors at the forefront of consideration:

• To provide a healthy foundation for a long term business operation while supporting the financial needs of the home portion of a home based business. Corners have not been cut, expenses have not been hidden. Rather, this document and loan request has been specifically designed to secure the right amount of start-up funding to ensure a long and successful future for GFX.

We intend to seek, and welcome, continued education, counseling, and adjustments to this Financial Plan throughout the future of GFX.

7.1 Important Assumptions

The accompanying table lists our main assumptions for developing our financial projections.

The majority of the assumptions are based on raw average estimates suggested by the software program used to create this business plan. As GFX moves into full operation these figures will be monitored and adjusted according to actual business conditions.

Three Key Factors:

• GFX does not sell on credit terms. This is the norm (almost without exception) in the horse industry. GFX will only offer credit card purchases as an alternative to cash/check payment.

7.2 Break-even Analysis

The following table and chart show our break-even point.

7.3 Projected Profit and Loss

Two Critical Issues regarding the following GFX P&L Statement:

• It is of critical importance to note that, being a home based business and the sole source of income for our family, the expense portion of P&L contains virtually every expense, business and personal, conceivable. It does include such minute details as groceries, medicines, gas, daily cash, revolving credit, even “fast food,” etc.

A note to the reviewer: It is a simple matter to inflate sales projections, deflate cost of goods sold, and hide expenses for purposes of a business plan. Rather, since we are relying on this venture to provide the livelihood for our family, we have chosen to evaluate and present it far below the best case scenario. We hope that the reviewer of this document will take this into full consideration.

7.4 Projected Cash Flow

The healthy state of the attached Cash Flow Table and Charts are, in themselves, the primary justification for this business loan request.

This loan request is intended to provide a solid foundation for the start-up and continued health of GFX. As a home based business, virtually every personal and business expense has been factored in. This has been done to ensure that personal expenses (food & shelter) do not prevent GFX from continuing operation. Rather, every calculation has taken these variables into account to ensure that the “home side” of our home business does not inhibit the “business side” of the business.

The all important Cash Balance figure remains at a healthy level, and shows growth, for the full period of this business plan to guarantee continued operation. However it also provides for sufficient cash flow to take advantage of positive business opportunities as they present themselves, and/or to absorb unexpected negative influences.

7.5 Projected Balance Sheet

The following Projected Balance Sheet was generated by the software program used to generate this business plan. As called out in the Management Gaps section, we are not well versed in its implications. We welcome consultation on this subject. As we fill the management gap in financial analysis, we will monitor and adjust this information accordingly.

7.6 Business Ratios

The following Business Ratios Table was generated by the software program used to generate this business plan. As called out in the Management Gaps section, we are not well versed in its purpose nor implications. We welcome consultation on this subject. As we fill the management gap in financial analysis, we will monitor and adjust this information accordingly. The Industry Profile column contains statistics from the Standard Industry Code (SIC) #0752, Animal Specialty Services.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software