Businessplan Online

Distribution (or Place)

Distribution is one of the pillars of the marketing mix. It is often underestimated, but successful businesses all have a carefully considered approach to purchasing and distributing products to customers. There are several key elements that should be explained in the online business plan. You can also use the “improve (AI)” button here to refine or enhance your input.

Location

Describe the location(s) from which you serve your customers. If your business operates entirely online, you can describe your own work location here. In the channels section, you can then indicate how you reach your customers (e.g., via your website). You may consider addressing the following points:

• Business location: Indicate where your business is located and how customers and employees can access it. Mention key characteristics of the surrounding area, such as public transport, parking availability, proximity to competitors, etc.
• Location advantages: Consider factors like customer accessibility, availability of amenities, proximity to potential partners, and visibility of the business.
• Potential location costs: Discuss rental or purchase costs and any expenses related to modifying the space to suit your business needs.
• Risks or challenges of the location: Think about safety in the area or regulatory changes that might impact your location.
• Explain how the location aligns with your business objectives and whether it is a strategic location for growth and success.

Location Requirements

Describe the internal and external requirements for the company’s location or facility. Consider factors like building size, necessary equipment, and specific layout needs. For external requirements, consider the following:

• Zoning regulations: Local or regional governments may have rules about what types of businesses are allowed in certain areas. Investigate the zoning designation of the location and whether your business complies.
• Building permits: If construction is planned, it must be approved by the municipality. There may be regulations regarding size, design, accessibility, and safety. Check which permits are needed before making plans.
• Environmental regulations: Businesses using specific production processes or hazardous materials may be subject to environmental regulations. Ensure you understand which rules apply and whether your business is compliant.
• Taxes: Your location may affect the types of taxes your business must pay. For example, certain municipalities may impose additional taxes.
• Labor regulations: Some areas may have specific employment-related rules, such as hiring obligations from a local labor pool or community.

Distribution Channels

Describe the methods by which your product or service is delivered to customers. Outline the steps involved in delivering the product and the parties involved (e.g., suppliers, wholesalers, retailers, and intermediaries).

Procurement Channels

Describe how the necessary goods and services are procured—your procurement channels. Identify the parties involved, such as suppliers and wholesalers, and how these relationships are managed. Optionally, discuss general procurement costs and how these are monitored and optimized. You may also address how quality and reliability of purchased goods and services are guaranteed.