Feasibility Study for a Trading and Distribution Company in Egypt
Distribution is a game of volume and turnover speed: the margin per unit is small, and profit comes from selling large quantities and moving stock quickly. The biggest risk is selling on credit to shops that do not pay on time.
Where your money goes
- Initial inventory
- Warehouse and rent
- Delivery vehicles and their running costs
- Sales representatives and commissions
- Inventory system and e-invoicing
Where the money comes from
- Margin on sales to shops and supermarkets
- An exclusive distribution agency for a territory
- Sales to companies and restaurants
What makes Trading and Distribution businesses lose money
- Customer debts that are never collected
- Slow-moving stock or goods nearing expiry
- Competition from larger distributors with lower prices
- Transport and diesel costs
What the study answers
- The right inventory size and working capital
- The share of credit sales you can afford
- The number of customers and monthly orders needed to break even
- Whether to own vehicles or use a transport company
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 Trading and Distribution feasibility study (EGP 2,500)