A new food and beverage distribution business

It is common known that the best approach to be independent in life is to take advantage of the possibility to become independent of the business or source of income on which one relies. There are numerous reasons why people choose to become entrepreneurs, even if they are employed at another company, with the most common cause being a desire for freedom. In this situation, independence refers to the fact that starting and running one's own small business allows one to organize their time as they see fit. produce and sell the products one likes and most importantly that one has the freedom of being responsible and creative with their business operations, responsibilities as well as making it easier for one to be more creative.

Small businesses are an important element in the economy of any country since they contribute a significant portion to the total GDP. Even though common belief dictates that large businesses have the biggest profit margins, there are cases of small businesses that also post relatively large profit margins. As such, small businesses undoubtedly play a crucial role in the economy of a country. Therefore, if an individual craves to have the independence that comes with being one's boss, has genuine and exceptional ideas about how to produce useful goods and services, setting up one's firm is the way to go. Granted, setting up a business, of any magnitude is by no means a mean feat and call for one to be psychologically and financially ready to overcome the numerous challenges that one is undoubtedly bound to face. This paper aims to offer an analysis and description of a new food and beverage distribution business.

Having carried out a feasibility study of the most viable business ventures, I decided to set up a beverage distribution business. There were several reasons as to why I decided a beverage distribution business is the best option for my small business. First, I am passionate about the food business having worked in the hotel industry for a long time. Second, I am aware of the challenge of starting a new business but starting up a beverage distribution business ranks as one of the easiest business ventures to start since it only involves purchasing beverages in wholesale from companies and distributing to retailers and other customers. In addition to this, such a business venture is not very capital intensive since it is possible to acquire the goods from companies on trust. Finally, I opted for a beverage company because it is flexible and has the potential for considerable profit margins. According to (Dollinger, 2008), the secrets of running a successful business in the selling and distribution industry is finding the right products which people desire, creating good networks with suppliers and consumers and a competent stock records keeping.

Owing to the potential for significant profit margins that accrue to starting such a business, it is important to be informed. Therefore, carrying a comprehensive feasibility study is imperative (Trevelyan, 2011). This would help the entrepreneur establish the best location to set up the business by taking into consideration the target market, and ensuring that there is a good network or potential for creating one between suppliers, retailers, and consumers. In addition to a market survey, one of the most crucial elements of any business venture is a business plan. In essence, a business plan sets out the objectives a business intends to achieve in future and the strategy to realize the said goals. Timmons, Spinnely & Tan (1994) contend that there are three elements which are central to creating a successful startup in any industry. First, one ought to find the right people who share the same values to work with, coming up with a product that consumers would want to buy and investing the least amount of money possible.

The following is the business plan for my beverage distribution company Aces Limited.

Business Plan

Industry Overview

A close look at the beverage distribution industry in the country, one of the factors that stand out is the potential for growth inherent in this industry. The main reasons for this are that there are numerous companies operating in the industry as producers with behemoths such as the Coca-Cola Company, Pepsi Co., Nestle, Anheuser-Busch InBev being some of the key players. The sheer number of companies operating in this industry implies that one would not be short of options should they seek to venture into the beverage distribution business. Furthermore, the companies stated above produce varied products of which an individual business can opt to specialize in the distribution of one of the products or distribute a variety.

However, it is worth noting that the revenue increase in this industry has decreased over the period spanning the past five years. The main reason given for this trend is the global recession (Trevelyan, 2011). Whenever a recession occurs, demand for products in most industrial markets become constrained, and this has been observed in the beverage industry. Furthermore, another factor that has led to reduced revenues in the beverage production and distribution industry is the sustained reduction in sales of beverages and soft drinks in established markets. This coupled with the rise to prominence of entities such as Wal-Mart and Costco has also been attributed as yet more prevailing factors contributing to the reduced revenues (Trevelyan, 2011). However, the future of the industry looks promising owing to the rapidly improving economic conditions.

Executive Summary

Aces Limited is a distribution company with a standard registration which will be involved in the distribution of a wide range of beverages and carbonated drinks from a variety of suppliers. The company’s administrative offices will be located in downtown Suburbanland, one of the busiest regions of the city. The company’s offices will be housed in the same building as the warehouse. The company has leased a warehouse that is big enough to meet the demands of the company and is reflective of the kind of beverage Distribution Company we intend to be. Furthermore, the location of the warehouse and offices in downtown Suburbanland is optimal because of the easy delivery network. We are cognizant of the fact that there are several beverage manufacturers in the area which is why time and resources were invested to conduct a comprehensive feasibility study. We intend to enhance our distribution network to rival or even surpass the biggest companies and enhance our online presence and make it easier to interact with our customers.


Aces Limited’s objectives for the first five years are:

To make the company’s image synonymous with the products we distribute and make Ace Limited an iconic brand.

To institute an internet marketing campaign aimed at creating customer awareness that is bound to drive traffic to the website.

Establish Aces Limited as a leader in the beverage distribution market.

Set up a discount mechanism for the most loyal customers in the next three years.


Aces Limited aspires to be the foremost brand in the distribution of beverages and carbonated soft drinks in Suburbanland and ultimately in the whole country.


Aces Limited’s mission is to become the leading entity in the carbonated and soft drinks distribution business to become the market leader by distributing products from leading brands in the country at competitive prices in Suburbanland and other nearby cities where marketing of services and products will be carried out.

Business Structure

The company intends to set itself apart from other similar businesses by building a standard, all-inclusive beverage distribution business in Suburbanland that other entities can aspire to emulate. The company’s business structure will be established to ensure that it supports the projected growth. To be able to build a prosperous business to benefit all stakeholders, the company intends to prioritize the hiring of competent individuals to help realize the goals of the company.

In this respect, the following positions have been created to be occupied at Aces Limited: Chief Executive Officer (owner), Human Resources Manager, Sales Manager, IT Manager, Chief Accounts Manager, and Distributors. It is worth noting that the above positions might be representative of various departments.

SWOT Analysis





Excellent distribution network

Numerous payment options

Wide range of products from top brands

Good customer care structure

Planned customer discount structure

Highly qualified workforce


Relatively low financial muscle compared to competitors



Large number of customers

Adequate knowledge of the market


Negative changes in the economic landscape

Competition from firms that are already established and new entrants into the market

Market power of established firms

Drawing on the strengths of the business, the company will benefit from the excellent infrastructure since it is located within the city which will make it easy to distribute the products. In addition to this, the company stands to benefit from the fact that it will be distributing goods from a variety of companies which will always ensure adequate flow of inventory. The customer care structure is expected to count as a strength while the company's investment in competent staff is expected to increase the competitiveness of the company. The threats that the company will have to contend with are not new since all new startups are faced with the challenge of having to contend with the market power of incumbent companies, new entrants into the market and negative changes in the economic landscape.

The opportunities available have to do with the potential to grow our market share. Since the company is located within the city, there are unlimited opportunities to market the company's goods to a significantly large number of customers. In addition to this, the feasibility study conducted gives the company adequate information about the market and opportunities that might arise. The company's weaknesses are mostly subjective is the fact that the company is new and as such it does not have the financial capacity to compete with already established competitors in the market.

Having carried out the feasibility, I am certain to pursue my venture simply because there are numerous advantages that accrue to setting up a new company. Other than the independence, the potential for growth without a doubt exists, and the current economic climate makes it the most appropriate time to venture into the beverage distribution business. At the same time, the risks and threats are not new or inhibitive and can, therefore, be overcome.


Dollinger, M. J. (2008). Entrepreneurship: Strategies and resources. Marsh Publications.

Timmons, J. A., Spinelli, S., & Tan, Y. (1994). New venture creation: Entrepreneurship for the 21st century (Vol. 4). Burr Ridge, IL: Irwin.

Trevelyan, R. (2011). Self-efficacy and effort in new venture development. Journal of Management & Organization, 17(1), 2-16.

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