Feasibility Study for a General Supplies Company in Egypt
General supplies is one of the most commonly registered activities, because it is flexible: you can supply any product to any client. But the profit is not in the size of the deal. It is in the gap between your buying and selling price after you wait to get paid. Many companies are profitable on paper and still run out of cash.
Where your money goes
- Working capital to buy goods before the client pays
- An office or administrative premises, plus commercial registration and a tax card
- Transport and delivery of goods
- Bid bonds and performance bonds for some tenders
- A sales representative and collections follow-up
- An accountant and monthly tax filings
Where the money comes from
- A margin on every supply order
- Recurring supply contracts with companies or factories
- Tenders and competitive bids
What makes General Supplies businesses lose money
- Long collection periods that lock up your capital
- Dependence on one large client
- Supplier price changes after you have already agreed a price with the client
- Late delivery penalties
- A thin margin that disappears into transport costs and taxes
What the study answers
- The working capital you need to run more than one deal at a time
- Your real margin after transport, taxes and collection costs
- The number of monthly deals needed to break even
- What happens if collection is delayed by 3 or 6 months
To make the numbers accurate, we ask about: What will you supply or distribute?, Main customers, When do customers usually pay?, Do you already have customers or contracts?.
The numbers are calculated for your project: your city, your capital and the size you plan to start with. Not generic figures copied from the internet.
Order a General Supplies feasibility study (EGP 2,500)