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Drop Shipping Business Plan Template [Updated 2022]

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I. Executive Summary


You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located in [insert location here], is a drop shipping company that focuses on providing drop shipping services to individuals and businesses in the surrounding community. The Company will work with the top suppliers to ensure affordable, on-time delivery. We will have an impressive list of integrations and sophisticated inventory management tools to support a large number of suppliers and products. The Company’s goal is to become one of the leading drop shipping companies in the area.

Products Served

[Company Name] will provide high-quality drop shipping services to its clients, for the following categories:

  • Toys
  • Home Goods
  • Apparel
  • Appliances
  • Mobile Phones
  • Shoes

Customer Focus

[Company Name] will primarily serve households and businesses within a 100-mile radius of the business location. The demographics of the customers is as given below:

  • Households- 82%
  • Businesses- 18%

Management Team

[Company Name] is led by [Founder’s name], who has been in the drop shipping industry for [x] years. [Founder] has a business degree. He has extensive experience in the drop shipping industry, working for leading drop shipping companies prior to starting his own company. He will have the help and support of his business partner, [Insert Name], who will handle the marketing and admin tasks for the company.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

  • There has been significant growth in the drop shipping industry over the past few years. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for these services, supporting the business after launch.
  • The management team has a track record of success in the drop shipping business.
  • The Company will provide high-quality drop shipping services.
  • The drop shipping company is a proven, successful business in the United States.

Financial Highlights

[Company Name] is currently seeking $160,000 to launch its drop shipping company. Specifically, these funds will be used as follows:

  • Build-out and Startup costs: $62,000
  • Working capital: $98,000 to pay for marketing, supplies and salaries until [Company Name] reaches break-even.

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 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 Margin25%31%31%32%35%

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