Traditional Business Plan

Traditional Business Plan-64
Wholesaling manufacturers typically sell products to retailers, which then sell directly to consumers.An example of this type of company might be a clothing manufacturer that sells merchandise to a retailer, which then sells to consumers.Competition can be fierce for distributors, which necessitates continual analysis of the market.

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Purchasing a franchise has some important benefits for the franchisee, since most business processes and protocols are already established for the business.

However, with these established protocols come less flexibility for the franchisee.

A company fitting the distributor business model would be a business that buys products directly from a manufacturing company.

This business would then resell the products directly to consumers or to a retailer.

Retailers might be nationwide chains, or they could be independent shops operated by a single entity.

A physical location for a retailer is common but not mandatory.

Retailers often utilize a brick-and-mortar location for points of sale.

Examples of retailers include grocery stores, clothing stores, and department stores.

Franchise business are set up according to the unique service or product sold or produced.

The business model of the franchise is adopted by the purchaser of the franchise, who is known as the franchisee.

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