Food Packaging Business Plan [Sample Template]

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Are you about starting a food packaging business? If YES, here is a detailed sample food packaging business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a food packaging business. We also took it further by analyzing and drafting a sample food packaging marketing plan template backed up by actionable guerrilla marketing ideas for food packaging companies. So let’s proceed to the business planning section.

Starting a food packaging business is one sure way of making money because packaged food is consumed by a host of people not just in the united states of America, but all across the globe.

If you are sure this type of business is what you truly want to do after you must have conducted your research, then the next step to follow is to write a good business plan; a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your products.

Below is a sample food packaging business plan template that will help you successfully write yours without much stress.

A Sample Food Packaging Business Plan Template

1. Industry Overview

Food packaging business is a subset of the global food, fruit and vegetable processing industry and this industry is made up of companies that are engaged in the processing and packaging of food, fresh fruit and vegetables into canned, bottled, preserved, frozen, dried (except sun-dried) for human consumption.

Players in this industry also blend salt, sugar, preservatives and other ingredients with food, fruits and vegetables to make consumer food products.

A recent report published by IBISWorld shows that the Global Food, Fruit and Vegetables Processing industry has experienced consistent demand over the five years to 2017, as economies of every size continue to consume processed food, fruits and vegetable products.

Demand has grown particularly fast in developing economies, as industrial growth has translated into greater urbanization, higher per capita income and expansion in the size of the middle class. As the global middle class has grown, it has demanded larger quantities of higher quality and more diverse food.

Over the five years to 2022, industry revenue is expected to expand. Industry demand is expected to increase as producers focus on nutritious ingredients and less invasive processing techniques to keep products as organic as possible.

The report further revealed that the production and packaging of processed food, fruits and vegetables occurs in all regions of the globe. In particular, low-tech food, fruit and vegetable processors, such as fruit driers, exist in almost every country in the world.

However, high-tech, large-scale fruit and vegetable processing operations are concentrated primarily in Europe and Asia. These continents dominate the Global Food, Fruit and Vegetables Processing industry due to the fact that industry operations have been established in these areas for a very long time.

The Global Food, Fruit and Vegetables Processing industry is indeed a very large industry and pretty much thriving in all parts of the world. Statistics has it that in the world, there are about 32,123 licensed and registered food, fruit and vegetable processing and packaging companies directly responsible for employing about 507,446 employees.

The industry rakes in $290 billion annually with an annual growth rate projected at -0.1 percent. It is important to state that Kraft Heinz is the establishment with a lion share of the industry.

If you have plans to start your own food packaging business in United States of America, you should ensure that you carry out a thorough market survey and feasibility studies. If you get some key factors wrong before starting your food packaging business, then you are likely going to struggle to stay afloat.

2. Executive Summary

Wendy Smith® Food Packaging Company, Inc. is a licensed food packaging company that will be based in the outskirt of East Rutherford, New Jersey – United States. We have done our detailed market research and feasibility studies and we were able to secure a government approved facility to open our food packaging plant.

Our food packaging plant is going to be a standard commercial company hence will make use of packaging materials that provide protection, tampering resistance, and special physical, chemical, or biological needs.

We are starting our food packaging business because we want to leverage on the vast opportunities available in the food processing and packaging industry, to contribute our quota in growing the U.S. economy, in national food production, and also to export processed and well – packaged food from the United States to other countries, and over and above to make profit.

Wendy Smith® Food Packaging Company, Inc. is well positioned to become one of the leading food packaging companies in the United States of America, which is why we have been able to source for the best hands and machines to run the company with.

We have put process and strategies in place that will help us employ best practices when it comes to food packaging plant processes as required by the regulating bodies in the United States of America.

At Wendy Smith® Food Packaging Company, Inc., our customer’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Wendy Smith® Food Packaging Company, Inc. is a private registered food packaging company that is owned by Mrs. Wendy Smith and her immediate family members. The company will be fully financed by Mrs. Wendy Smith and her immediate family members at least for a period of time.

Before starting Wendy Smith® Food Packaging Company, Mrs. Wendy Smith worked with some of the leading food packaging companies in the United States of America. She has over 17 years’ experience in the industry and a Degree in Biotechnology from the University of New Jersey.

3. Our Products and Services

Wendy Smith® Food Packaging Company, Inc. is a standard food packaging company that is committed to producing well processed and packaged food products for both the United States and the global market. We are in the industry to make profits and we are going to do all we can to achieve our business goals and objectives. We are going to be involved in packaging the following products;

Canned food, fruits and vegetables
Cheese and bacon production
Dry pasta
Hot sauce production
Meal replacement product
Pre-made salsa production
Fruit and vegetable juices
Ketchup and other tomato-based sauces
Soup, stews and bouillon
Dried and dehydrated fruits and vegetables (used as fruit flavors)
Pickled products
Jams and jellies

4. Our Mission and Vision Statement

Our Vision is to become a household brand and to have our products in groceries stores, and supermarkets not just across the United States of America but also on the global stage.
Wendy Smith® Food Packaging Company, Inc. is a world class food packaging company that will make use of a wide variety of plastics and metals, papers, and glass materials in packaging a wide range of food, vegetable and fruits for both the United States and the global market.

Our Business Structure

Wendy Smith® Food Packaging Company, Inc. is a privately owned food packaging business that intends starting small in East Rutherford – New Jersey, but hopes to grow big in order to compete favorably with leading food processing and packaging companies in the industry both in the United States and on a global stage.

At Wendy Smith® Food Packaging Company, Inc., we will ensure that we hire people that are qualified, hardworking, and creative, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Operating Officer
Food packaging plant Manager
Human Resources and Admin Manager
Accountant / Cashier
Sales and Marketing Executive
Food Processor and Packing Operators
Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Responsible for increasing management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
Responsible for creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization.

Food Packaging Plant Manager

Responsible for overseeing the smooth running of the food packaging plant
Part of the team that determines the quantity of products that are to be produced
Maps out strategies that will lead to efficiency amongst workers in the plant
Responsible for training, evaluation and assessment of plant workers
Ensures that the steady flow of both fresh food, meat, milk, fruits and vegetables to the plant and easy flow of finished products through wholesale distributors to the market
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Ensures that the plant meets the expected safety and health standard at all times.
Ensure compliance in the plant
Providing advice on the management of plant activities across all section
Responsible for carrying out risk assessment in the plant
Ensures that organizations’ goals and desired result is achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied

Human Resources and Admin Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defining job positions for recruitment and managing interviewing process
Carrying out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversee the smooth running of the daily office activities.

Accountant/Cashier:

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

Sales and Marketing Manager

Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
Model demographic information and analyze the volumes of transactional data generated by customer
Identifies development opportunities; follows up on development leads and contacts
Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Create new markets cum businesses for the organization
Empower and motivates the sales team to meet and surpass agreed targets

Food Packaging Machine Operators

Responsible for operating the following machines used in our plant;
Autocoding label and date verification
Check weighing machines
Cleaning, sterilizing, cooling and drying machines
Conveying and accumulating machines
Feeding, orienting, and placing machines
Filling machines for liquid and powdered products
Record test and production data for every product batch, including information regarding test results, temperature, time cycle and ingredients utilized.
Monitor and listen to equipment to detect audible or visual signs of malfunctions, including plugs, leaks and other failures. Report any malfunctions or quality issues immediately to supervisors.
Clean and sterilize factory processing areas and food production vats daily.
Handles any other duties as assigned by the line manager

Front Desk/Customer’s Service Officer

Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Manages administrative duties assigned by the manager in an effective and timely manner
Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
Receives parcels/documents for the company
Distribute mails in the organization
Handles any other duties as assigned by the line manager

6. SWOT Analysis

Wendy Smith® Food Packaging Company, Inc. do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard food packaging company that will favorably compete with leading food processing companies in the United States of America.

We engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured food packaging company that can favorably compete in the highly competitive food processing industry in the United States.

Part of what the consultant did was to work with the management of our organization in conducting a SWOT analysis for Wendy Smith® Food Packaging Company, Inc.. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Wendy Smith® Food Packaging Company, Inc.;

Strength:

Our strength as a food packaging company is the fact that we have healthy relationships with loads of major players in the industry within and outside of the United States of America. We have some of the latest food processing and packaging equipment, and machines.

Aside from our relationship and equipment, we can confidently boast that we have some the most experienced hands in the industry in the whole of East Rutherford – New Jersey in our payroll.

Weakness:

Our weakness could be that we are a new food packaging company in the United States, and it might take us sometime to attract big time customers in the industry. We are aware of this and from our projection, we will overcome this weakness with time and turn it to a major advantage for the business.

Opportunities:

The opportunities that are available to us as a standard food packaging company cannot be quantified, we know that there are loads of consumers of packaged food all across the United States of America and the global market. Besides, North America is the largest market for processed and packaged food, fruit and vegetable products. We are well positioned to take advantage of this opportunity.

Threat:

Reduced sustainable packaging are becoming more frequent. The motivation can be government regulations, consumer pressure, retailer pressure, and cost control. Reduced packaging often saves packaging costs and this may pose a threat to our industry.

So also, competition from fresh produce poses a threat. unfavorable government policies and the arrival of a competitor (a food packaging plant) within same location where our target market exists can’t be ruled out.

7. MARKET ANALYSIS

Market Trends

If you are conversant with the food industry, you will notice that most packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Aesthetically pleasing and eye-appealing food presentations can encourage people to consider the contents.

Although, Barcodes have been used for decades in packaging many products, but in recent time, 2D barcodes used in Autocoding are increasingly applied to food packaging to ensure products are correctly packaged and dated. No doubt, package design has been an important and constantly evolving phenomenon for several decades.

Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display. The color of the package plays a significant role in evoking emotions that persuade the consumer to make the purchase.

Packages are made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering.

Packages are now specifically engineered to help reduce the risks of package pilferage; some package constructions are more resistant to pilferage and some have pilfer-indicating seals. Packages may include authentication seals to help indicate that the package and contents are not counterfeit.

Packages also can include anti-theft devices, such as dye packs, RFID tags, or electronic article surveillance tags, that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of retail loss prevention.

Lastly, a good number of reports emanating from associations in the industry agree that going forward, the use of smart indicators will increase. There are a number of indicators with different benefits for food producers, consumers and retailers.

As a matter of fact, food packages now have features which add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, and reuse encouraging people to “Go Green”.

8. Our Target Market

Naturally, the end consumers of processed and packaged food and also those who benefit from the business are all encompassing; it is far – reaching. Loads of households consume processed and packaged food, fruits and vegetables. In essence a food packaging company should be able to sell their products to as many people as possible.

In view of that, we have positioned our business to attract consumers not just in the United States of America alone but also other parts of the world.

We have conducted our market research and survey and we will ensure that we meet and surpass the expectations we set for the business. Below is a list of the people and business that we will market our processed and well packaged foods to;

Groceries stores and Supermarket
Households
Individuals
Processed and packaged food, fruits and vegetable merchants

Our competitive advantage

A close study of the global food, fruits and vegetable processing and packaging industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other food packaging companies in the industry.

Part of what is going to count as competitive advantage for Wendy Smith® Food Packaging Company, Inc. is our access to high quality inputs, attractive product presentation, economies of scale and of course the vast experience of our management team.

So also, we have healthy relationships with loads of major players (packaged food, fruits and vegetables merchants) in the industry within and outside of the United States of America.

We have some of the latest food packaging machines and equipment that will help us maintain food safety during processing, packaging, storage, logistics (including cold chain), sale, and use. Aside from our relationship and equipment, we can confidently boast that we have some the most experienced hands in East Rutherford – New Jersey in our payroll.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

Our sales and marketing team will be recruited based on their vast experience in the food processing and packaging industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Wendy Smith® Food Packaging Company, Inc.

We have perfected our sale and marketing strategies first by networking with groceries stores, supermarkets, restaurants and other key stakeholders who are likely to become our customers. In summary, Wendy Smith® Food Packaging Company, Inc. will adopt the following strategies in marketing our processed and packaged food;

Introduce our business by sending introductory letters alongside our brochure to stake holders in the food, fruits and vegetable processing and packaging industry, households, groceries stores and supermarkets et al.
Advertise our products in food related magazines and websites
List our business in yellow page ads (local directory)
Attend related food and fruits processing and packing expos, seminars, and business fairs et al
Open our company with a party so as to capture the attention of residence who are our first targets
Engage in roadshow in targeted communities from time to time to sell our products
Leverage on the internet to promote our business
Engage in direct marketing
Encourage the use of Word of mouth marketing (referrals)
Join local chambers of commerce and industry with the aim of networking and marketing our products

Sources of Income

Wendy Smith® Food Packaging Company, Inc. is in the business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the food packaging industry to achieve our corporate goals and objectives. We will generate income by packaging and selling the following products;

Canned food, fruits and vegetables
Cheese and bacon production
Dry pasta
Hot sauce production
Meal replacement product
Pre-made salsa production
Fruit and vegetable juices
Ketchup and other tomato-based sauces
Soup, stews and bouillon
Dried and dehydrated fruits and vegetables (used as fruit flavors)
Pickled products
Jams and jellies

10. Sales Forecast

One thing is certain when it comes to the food packaging business, if your products are well – packaged and branded and if your processing plant is easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue for the business.

We are well positioned to take on the available market in East Rutherford – New Jersey and every city where our well – packaged food products will be sold and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the global food packaging industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections for Wendy Smith® Food Packaging Company, Inc., it is based on the location of our business and other factors as it relates to small and medium scale food, fruits and vegetable processing and packaging start-ups in the United States;

First Fiscal Year (FY1): $350,000
Second Fiscal Year (FY2): $650,000
Third Fiscal Year (FY3): $1.2 million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means to advertise and promote their business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

Below are the platforms we will leverage on to boost our food packaging company – brand and to promote and advertise our business;

Place adverts on community based newspapers, radio and TV stations
Encourage the use of word of mouth publicity from our loyal customers
Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
Ensure that our we position our banners and billboards in strategic positions all around East Rutherford – New Jersey
Give out sample of our products to potential consumers to try out during road shows
Distribute our fliers and handbills in target areas in and around our neighborhood
Advertise our business in our official website and employ strategies that will help us pull traffic to the site
Brand all our packaging materials, official cars and trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

We are aware of the pricing trend in the fruits and vegetable processing and packaging industry which is why we have decided to produce various sizes of packaged food, sauce, fruits and vegetables.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average price in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.

Payment Options

The payment policy adopted by Wendy Smith® Food Packaging Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Wendy Smith® Food Packaging Company, Inc. will make available to her clients;

Payment via bank transfer
Payment via credit cards/Point of Sale Machines (POS Machines)
Payment via online bank transfer
Payment via check
Payment via mobile money transfer
Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of our packaged food without any stress on their part.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a food packaging plant business, there are some key factors that should serve as a guide.

The source of the fresh crop, fruits and vegetables (especially if the food packaging plant is not going to own a crop) and the size of the business determines the total cost of setting up the business. Below are some of the basic areas we will spend our startup capital in setting up our food packaging plant;

The total fee for registering the business in the United States of America – $750.
Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $15,300.
Marketing promotion expenses for the grand opening of the food packaging plant in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
The cost for hiring business consultant (including writing business plan) – $2,500.
The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
The cost for leasing a large facility – $100,000
The cost for construction of a standard food packaging plant – $300,000.
Other start-up expenses including stationery ($500) and phone and utility (gas, sewer, water and electric) deposits ($6,500).
The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
The amount required for the purchase of the first set of supplies- $90,000
The cost for acquiring the required working tools and equipment / machines – $100,000
The cost for store equipment (cash register, security, ventilation, signage) – $13,750
The cost of purchase and installation of CCTVs – $5,000
The cost for building and hosting a website – $600
The cost for our opening party – $8,000
Miscellaneous – $5,000

Going by the report from detailed research and feasibility studies conducted, we will need an estimate of nine hundred and fifty thousand Dollars ($950,000) to start a standard food packaging plant business in the United States of America.

Generating Funds/Startup Capital for Wendy Smith® Food Packaging Company, Inc.

Wendy Smith® Food Packaging Company, Inc. is a family business that is solely owned and financed by Wendy Smith and his immediate family members. They do not intend to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Wendy Smith® Food Packaging Company, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our food products a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Wendy Smith® Food Packaging Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of land and building of standard food packaging plant: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Application for Loan from the bank: In Progress
writing of business plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Marketing/Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of machines/equipment, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business both online and around the community: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Opening party/launching party planning: In Progress
Establishing business relationship with vendors – key players in the industry: In Progress.