Warehouse Business Plan Template
If you want to start a warehouse business or expand your current warehouse business, you need a business plan.
The following Warehouse business plan template gives you the key elements to include in a winning Warehouse business plan.
Warehouse Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new warehouse facility located in [location]. Our warehouse will specialize in storing products for various industries and companies located within a 50-mile radius of [location]. We provide everything a business needs when storing its products, from climate-controlled facilities to loading and unloading services. We aim to be the most dependable warehouse chain in the local area that can be trusted to store and secure any kind of product.
Services
[Company Name] will store products for local businesses located within a 50-mile radius of [location]. We will provide many services to ensure all products are secure and stay in perfect condition. Some of the services our warehouse offers include:
- Bulk floor storage
- Palletized rack storage
- Five bay truck doors
- Two ramp doors
- Climate controlled facilities
- Inventory control
- Monitored alarm system
- Mail acceptance and delivery services
- Container loading or unloading
Customer Focus
[Company Name] will primarily service businesses within 50 miles of [location]. There are approximately 20,000 businesses within this area, which gives us a large client base to work with. Our primary customer focus is on small and medium-sized businesses that serve the local area. We are open to servicing most industries but plan to get the most business from the following sectors:
- Agribusiness
- Food and beverage
- Retail and consumer goods
Management Team
[Company Name] is headed by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a logistics and warehousing company for [X] years. During his career, he was able to learn all aspects of the industry, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides. His experience will be invaluable to the business.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- [Company Name] will focus primarily on the local region (about a 50-mile radius from [location]). Many small local businesses are overlooked or underserved by larger national warehousing companies.
- We surveyed the target market and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- The [location] region has a robust business environment with a large number of businesses needing warehousing services like ours.
- The management team has a track record of success in the warehousing services industry.
Financial Highlights
[Company Name] is currently seeking $2,000,000 to launch. Specifically, these funds will be used as follows:
- Warehouse design/build: $1,000,000
- Vehicle and machinery purchase and maintenance: $500,000
- Equipment and supplies: $250,000
- Working capital: $250,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new warehouse facility located in [location]. Our warehouse will specialize in storing products for various industries and companies located within a 50-mile radius of [location]. We provide everything a business needs when storing its products, from climate-controlled facilities to loading and unloading services. Though we are open to helping most businesses located near [location], we will primarily focus on local small and medium businesses in the food and beverage, consumer goods, and agribusiness sectors.
[Company Name] is run by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a logistics and warehousing company for [X] years. During his career, he was able to learn all aspects of the industry, including the operations and management sides. His experience will be invaluable to the business.
After working in the industry for [X] years, [Founder’s Name] decided to open up his own warehouse that would cater to local small and medium-sized businesses. [Founder’s Name] has lived in [location] for his whole life and wanted to run a business that helped the local community and economy. Therefore, [Company Name]’s goal will always be to serve the local supply chain and regional business owners.
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] as an S-corporation on [date of incorporation]. The company is currently being run from [Founder’s Name]’s home but will move to the warehouse once it is built and furnished.
Upon incorporation, [Company Name] was able to achieve the following milestones:
- Found a location to build and hired a construction company
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and fixture requirements
- Identified required vehicles and machinery
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] will store products for local businesses located within a 50-mile radius of [location]. We will provide many services to ensure all products are secure and stay in perfect condition. Some of the services our warehouse offers include:
- Bulk floor storage
- Palletized rack storage
- 5-bay truck doors
- 1 ramp door
- Climate controlled warehousing
- Inventory control
- Monitored alarm system
- Mail acceptance and delivery services
- Container loading or unloading
III. Industry Analysis
Warehousing has never been in greater demand. Between the dependence on e-commerce and the supply chain crisis, more and more companies are depending on warehousing facilities to store their products. Many businesses cannot afford to build their own warehouses, but they also can’t depend on warehouses that are located far away. Therefore, many businesses are looking to local warehousing solutions to carry their products and supplies. Local warehouses like [Company Name] help improve the local supply chain and offer valuable services that keep the local economy thriving.
Therefore, warehouses have never been so valuable. In fact, the industry is currently growing without any signs of stopping. According to Expert Market Research, the industry is expected to grow at a compound annual growth rate of 4.5% over the next five years. The industry was valued at $428 billion last year and is expected to be valued at $557 billion in five years.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the local businesses and industries located within a 50-mile radius of [location]. The area is home to more than 20,000 businesses across a variety of industries.
Customer Segmentation
Though we are open to working with most local businesses and industries, we expect we will primarily work with the following segments:
- Retail and consumer goods: Most local small businesses fall into the consumer goods industry. Small retailers rarely have the space to store their goods but also need a local warehouse that is easily accessible on short notice. [Company Name] will be easily accessible and can provide the warehousing services they need.
- Agribusiness: [Location] consists of a large agribusiness that is essential to the nation’s food supply. This industry needs proper storage for food and equipment and quick shipping to prevent spoilage. Since this is such an important industry, we will work closely with local agribusinesses to provide them with all their warehousing needs.
- Food and beverage industry: [Company Name] will also offer storage space and refrigeration to carry perishable and non-perishable food items for local food and beverage businesses. This is the second biggest local industry behind consumer goods, so we expect many businesses will need our warehouse space.
V. Competitive Analysis
Direct & Indirect Competitors
The following companies offer extensive warehousing services locally and nationwide and therefore provide either direct or indirect competition to our business:
Warehouse USA
Warehouse USA has been the #1 warehousing solution in the United States for [X] years, catering to a variety of industries and businesses, both big and small. They provide ample warehouse space across dozens of warehouses across the country and provide unique services depending on the industry served. Some of their services include climate-controlled storage, bulk floor storage, and rack storage.
Though Warehouse USA will remain a large nationwide competitor, it has a minimum storage requirement that most small businesses can’t meet. Therefore, local small businesses will be much more interested in utilizing our warehouse services.
Pine City Food Storage
Pine City Food Storage is the #1 storage facility for all businesses in the food and beverage sector. The facility offers great climate-controlled storage as well as refrigeration to store any form of food or beverage product. With ample space and excellent customer service, clients can expect a great warehousing experience from day one.
Though Pine City Food Storage will continue to thrive, their prices keep away many small businesses that cannot afford their fees. Our prices will be more moderate, which provides a more affordable option for small food and beverage businesses that are just starting out.
NW Warehousing Solutions
NW Warehousing Solutions has been a popular warehouse company since 1978. They cater to a variety of industries in the local area, including food and beverage, consumer goods, and healthcare. Clients can be assured that their products will be secured and protected while stored at NW Warehousing Solutions.
Though NW Warehousing Solutions will continue to thrive, their pricing turns many local businesses away. [Company Name] will be more moderately priced to ensure local businesses can afford their warehousing needs.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include the following:
- Location: [Company Name]’s business is local and will cater to regional businesses.
- Client-oriented service: [Company Name] will have 24/7 customer service and a strong team to fully cater to our clients’ needs.
- Management: [Founder’s Name] has been extremely successful working in the industry and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
- Relationships: [Founder’s Name] knows many of the local leaders, business managers, and other influencers within [location]. With his [X] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Client-focused warehouse services that treat each client individually and get the job done right the first time
- Service built on long-term relationships
- Thorough knowledge of our clients and their varying needs
Promotions Strategy
[Company Name] expects its target market to be businesses operating within 50 miles of [location]. [The Company’s] promotions strategy to reach these businesses includes:
Website/SEO
[Company Name] will develop a professional website that showcases pictures of the warehouse and the services we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Publications
[Company Name] will announce its launch several weeks in advance through publicity pieces in multiple newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets.
Commuter Advertising
We will drive attention toward [Company Name] by renting billboard ad spaces along routes or highways that hold heavy traffic. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of businesses of our opening.
Client Referral Programs
[Company Name] will create an aggressive client referral program that gives discounts to existing clients for every successful referral.
Direct Mail
[Company Name] will blanket businesses with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other enticements for businesses to use our services.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when working with us. Our customers can expect to receive quality services at a more affordable price than what they pay for larger warehouse providers.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- Bookkeeping
- Marketing
- Website and social media maintenance
- Provide customer service
- Hiring and training staff
- General maintenance functions
- Marketing
Inventory and Warehouse Functions
- Stock and organize products
- Count inventory for accuracy
- Keep warehouse clean and organized
- Inspect products often to ensure quality
- Maintain temperatures in refrigerated and climate-controlled facilities
- Provide excellent customer service
- Accept and mail out parcels for clients
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is headed by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a logistics and warehousing company for [X] years. During his career, he was able to learn all aspects of the industry, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides. His experience will be invaluable to the business.
[Founder’s Name] will serve as the Chief Executive Officer and is in the process of hiring other C-suite professionals to help run the business.
Hiring Plan
[Founder’s Name] will serve as the Chief Executive Officer of the company. In order to launch, it needs to hire the following personnel:
- Warehouse Manager
- Inventory Manager
- Administrative Assistants (2 to start)
- Chief Finance Officer
- Head of Marketing
- Warehouse Associates (6 to start)
- Sales Representatives (2 to start)
- Security Staff (2 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the warehouse fees charged to our customers.
The major costs will consist of salaries, vehicle and machinery maintenance costs, and ongoing marketing expenditures.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $2,000,000 to launch. Specifically, these funds will be used as follows:
- Warehouse design/build: $1,000,000
- Vehicle and machinery purchase and maintenance: $500,000
- Equipment and supplies: $250,000
- Working capital: $250,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Annual Number of Customers | |
|---|---|
| Year 1 | 200 |
| Year 2 | 300 |
| Year 3 | 400 |
| Year 4 | 500 |
| Year 5 | 600 |
| Average annual growth rate | 5% |
| Monthly mortgage/lease | $3000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
