Guides to start a vertically integrated company

Creating a brand is an opportunity to express your unique vision, values and style, while connecting with consumers and building a loyal following.

Whether you're passionate about soft drinks, cutting-edge fashion or stylish clothing, your brand can have a lasting impact and leave a memorable impression on the market.

By creating your own brand, you have the opportunity to shape trends, inspire change and make your mark in the competitive world of consumer goods and fashion.

A business plan is a written document that sets out the commercial, operational and financial objectives of a business and explains how it's going to achieve them.

To put it simply, it consists of two distinct parts:

• A written part that presents, in detail, your project, the team, your business strategy, and your medium-term objectives.
• A forecast that highlights the expected profitability of the project and the funding requirements.

The absence of a business plan is one of the main reasons why more than 50% of new businesses fail within five years. If you are starting a vertically integrated business, drawing up a business plan is essential to reduce the risk of your project failing.

Most partners (banks and investors) also require a business plan before granting funding. It is therefore strongly recommended that you write a business plan if you are seeking a loan or capital to finance your start-up.

The cost of setting up the business itself (incorporation, legal fees, etc.) is generally fairly modest, although it varies considerably from country to country.

The initial investments (acquisition of equipment, construction of facilities, etc.) and initial working capital requirements (such as the purchase of raw materials and supplies) will depend on the sector you are entering and the extent of the supply chain you wish to enter.

For example, launching a clothing brand that outsources its manufacturing requires less capital than a drinks brand that has its own factory.

There is only one way to accurately assess the cost of setting up your business: you need to draw up a financial forecast. And there's no better way than to use The Business Plan Shop's online financial forecasting software.

The main factors to consider before starting a vertically integrated business are as follows:

• The demand and the level of competition in your target markets.
• Applicable regulations and standards to be met.
• Access to production factors: human resources, raw material suppliers, access to energy, etc.
• Logistics: supply, storage, distribution.
• Distribution channels: wholesalers, retailers or direct sales to consumers.
• The long-term financial feasibility of the project.

The main sources of funding include:

• Government grants, loans or assistance available for start-ups.
• Investments from private investors or venture capital companies specialising in your sector.
• Banks or financial institutions can offer business loans or lines of credit.