Sales and distribution is more than customer relationship management; it is the army that meets directly with customers enabling cash to flow into the company's bank account. This is a very obvious distinction in an entrepreneurial business proposal within the business plan. Of course in an online business, the sales force is the website. However, for the purposes of this article, sales and distribution will relate specifically to a bricks and mortar business model and specifically how it should be structured within the context of a business plan. Moreover, the sales and distribution plan must support and be supported by the marketing plan and be internally consistent.

Sales and Distribution Organization in a Start Up Company

The organization and structure of the sales department in a start up (and in the business plan proposal) must demonstrate to the investors that the senior sales manager and the sales team have been successful in similar ventures and organizations. Therefore, their resumes must reflect this background. For the most part, a start up will have a very small team in general, including the sales department, in particular. The management team must also be considered an extension of the sales team.

However, outside sales people are almost always used. Typically, they can be contract sales agents or part of an outside distributor selling the products or services of the start up as one of the companies within their line. Under normal circumstances however, there may usually be one or two sales people directly employed in a new start up. In these circumstances, sales commissions are normally set at a relatively high level to promote exceptional performance.

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