Applicant Tel: Email: Business Plan L1 Visa Supporting Documentation Applicant E-mail: info@e-mail.com CellPhone: +111 111 111 Sample company LLC will be a cargo company operating in the USA with main activity to transport goods across the country. Business Plan
2 Sample Company LLC Contents 1. EXECUTIVE SUMMARY...................................................................................... 4 2. PARENT COMPANY'S SUMMARY..................................................................... 6 2.1. Company Summary ....................................................................................................................... 6 2.2. Parent Company's Services ........................................................................................................... 8 2.3. Staff ............................................................................................................................................... 8 3. US COMPANY'S SUMMARY ............................................................................... 9 3.1. Company description..................................................................................................................... 9 3.2. Ownership ................................................................................................................................... 10 3.3. Location....................................................................................................................................... 11 3.4. The Company strategy to get loads ............................................................................................. 12 3.4.1. Cooperation with other companies .......................................................................................12 3.4.2. Pricing advantage .................................................................................................................12 3.4.3. Advertising campaign ...........................................................................................................12 3.4.4. Registering as a Government Contractor .............................................................................13 3.5. Pricing and revenue ..................................................................................................................... 13 4. INVESTMENT ...................................................................................................... 13 5. INDUSTRY AND MARKET ANALYSIS ........................................................... 14 5.1. Market size .................................................................................................................................. 14 5.2. FTL and LTL services ................................................................................................................. 17 5.3. Market Drivers in 2021 ............................................................................................................... 19 6. COMPETITIVE FEATURES ................................................................................ 21 6.1. Competition ................................................................................................................................. 21 6.2. Competitive Edge ........................................................................................................................ 21 7. KEY MANAGEMENT AND PERSONNEL........................................................ 22
3 Sample Company LLC 7.1. CEO: Applicant ........................................................................................................................ 22 7.2. Sales Manager ............................................................................................................................. 24 7.3. Accountant .................................................................................................................................. 25 7.4. Third-party Dispatcher ................................................................................................................ 25 7.5. Drivers: 70 employees................................................................................................................. 26 7.6. First Year Company Development .............................................................................................. 26 7.7. Personnel Tables ......................................................................................................................... 27 7.8. Personnel Summary..................................................................................................................... 28 7.9. US Internal Organizational Chart ................................................................................................ 28 8. FINANCIAL FORECASTS................................................................................... 30 8.1. Break-even Analysis ................................................................................................................... 30 8.2. Sales Forecast .............................................................................................................................. 31 8.3. Profit and Loss ............................................................................................................................ 31 8.3.1. Cost/Benefit Analysis ............................................................................................................ 31 8.4. Balance Sheet .............................................................................................................................. 32 9. CONCLUSION ...................................................................................................... 33
4 Sample Company LLC 1. Executive Summary Transportation in the United States is facilitated by road; this is a vast and demonopolized market. As in all spheres of life in the United States, it is relatively rigidly standardized, creating equality of conditions for participants. But at the same time, it is well organized, reasonably simple in regulation and inspection rules, and free from corruption. However, according to industry experts, the industry is experiencing a shortage of contractors and drivers. And this business plan describes the creation of a new business in the industry. SAMPLE COMPANYLLC launched for $X XXX,XXX with the investments of Applicant. The business will be established with three trucks and two rented trailers and expand its operations to 35 trucks by January 2026. Gross margins will be 70%, allowing for significant profit by the end of the third year as the business scales up. Today SAMPLE COMPANYhas already registered; in the first operational year it plans to buy one box truck, and the hire the necessary staff.
5 Sample Company LLC SAMPLE COMPANY will be a cargo company operating in the United States of America with its primary activity to transport goods across the country. The parent company is ООО (limited liability company) Parent Company ("Parent Company "), a company that acts as a complex supplier of electricity metering devices and automated electricity metering systems. It is located in Russia. SAMPLE COMPANY was formed as a Limited Liability Company on August 12, 2021, in Florida. The Company is 100% owned by the owner of its parent company, Applicant. Applicant will occupy the CEO position within the Company. In the first operational year, SAMPLE COMPANY will hire a CEO, an Accountant, a Thirdparty Dispatcher, a Sales Manager and 2 Drivers. The Company will increase the number of employees to XX by the end of Year 5, with its payroll expenses starting at $XXX,XXX in Year 1 and increasing to $X,XXX,XXX in Year 5. The Company will aim to highly satisfy its customers by providing high-quality services of transportation goods and offering the most attentive, courteous, and personalized service. Under the executive direction of Applicant, who has extensive entrepreneurial experience, the Company's sales are expected to grow from -$XX XXX in Year 1 to $X,XXX,XXX in Year 5.
6 Sample Company LLC 2. Parent Company's Summary 2.1. Company Summary Parent Company LLC is a company registered in Russia, specializing in supply of electricity metering devices and automated electricity metering systems. The Company's technologies allow to provide services and goods for enterprises of the energy complex, electricity distribution companies and members of the wholesale and retail network. The location of the parent company's office is shown in Figure 1. Under the management of Applicant and thanks to his attentive approach to choosing clients, building trusting relationships with a key partner, high quality of customer service and a well-thought-out policy of recruiting staff and improving working conditions, the Company has been increasing its turnover from year to year (figure 2). Figure 1 The Parent Company Location
7 Sample Company LLC Despite the crisis situation in the industry in 20XX-20XX, the Company remained on the market and increased the turnover of sales. The Company is the official distributor of the "Energomera Concern" in the northwestern Federal District. The parent company's total current headcount is X employees. Figure 2 Parent company's revenue, by years from 2015 to 2020 (in U.S. dollars)
8 Sample Company LLC 2.2. Parent Company's Services The main activity of the Company is the supply of electricity metering devices and automated electricity metering systems. The Company produces and supplies products to its customers throughout Russia and has many partners and large customers. 2.3. Staff The organizational structure of the parent company is presented in Figure 2 The Company's staff consists of nine qualified professionals trained under the supervision of Applicant. Personnel selection is carried out by the Company through interviews, testing, and a method for evaluating the fulfillment of set goals. The selection of candidates is based on the analysis of the compliance of their experience and competencies with the requirements for the position. Recruitment of personnel for key positions is carried out by XXXX XXXXX. XXX XXXX, Commercial Director, is responsible for the selection of personnel for positions in the departments. Figure 3 Parent company's organizational structure
9 Sample Company LLC An employee is hired by the Company after signing an employment contract, as well as Mikhail Litvinenko's approval of the employment order. All employees are officially registered for work, taking into account the payment of social contributions, sick leave and vacation in 28 calendar days a year. Applications for leave/time off, travel certificates, sick leave lists and corresponding orders Applicant, in the absence of XXXXX XXXXXX. 3. US Company's Summary 3.1. Company description SAMPLE COMPANY LLC will provide goods transportation services to its customers. Hauling services will be provided with box trucks, because the CDL licenses are not needed to drive them, hence, the entry costs are lower in comparison to large-truck industry. The Company will offer the following services for companies across the states: • Delivery of loads from and to locations in its geographic range • Third-party delivery services • Offer the clients detailed information about their orders, including the location of trucks hauling their loads, the delivery order status including expected arrival time for delivery • Phone support for all clients' questions, delivery changes, and scheduling Trucks will be operated by qualified and well-trained drivers with spotless records. Drivers are safety trained and re-tested for knowledge of laws as they change. A dedicated suite of software and communication systems will allow for the logistical management mentioned above. The main reason, why the box trucks are chosen as the general projected company’s commercial vehicles, is that the box trucks cost less than classic sized trucks, while it remains the majority of their positive features. The box truck offers more places to secure large objects. For example, the more freight and LTL packages the company transport at once, the fewer return trips are required each workday. This can cut the
10 Sample Company LLC company’s expenditures on fuel in the same time cutting down on drivers' travel time. At the same time, it is possible to maximize freight-hauling space and make the most money on every loaded trip. Figure 4 Box truck To sum up, the usage of box trucks seems a prospective option for the projected company, as, due to the specific of the business, it does not need large-size vehicles to conduct the operations, meanwhile the box trucks will help to cut some expenditures. 3.2. Ownership SAMPLE COMPANY is 100% owned by Applicant. SAMPLE COMPANY was formed as a Limited Liability Company on August 12, 2021, in Florida. Applicant will occupy the CEO position within the Company.
11 Sample Company LLC 3.3. Location Sample Company's office is located at XXXXXXXXX. The Company's office will be used for operational and administrative purposes. SAMPLE COMPANY LLC's office will operate during regular business days and hours, Monday through Friday from 9:00 AM. a.m. to 6:00 p.m. SAMPLE COMPANY LLC. will also address all of its customers' inquiries via phone or email.
12 Sample Company LLC 3.4. The Company strategy to get loads According to the industry statistics, the demand for box trucks services consists of different major parts, so, the projected Company has many ways to establish its presence on the market. 3.4.1. Cooperation with other companies Due to the fact that the projected Company will be a newcomer in the hauling industry, it can cooperate with the existing businesses creating a stable client base until it will be able to operate independently and attract the customers on its own. Today the demand for the hauling services is increasing and there are many companies who need delivery brokers' services, and the projected Company can fulfill this gap, offering fast and quality box truck delivery. 3.4.2. Pricing advantage The projected Company plans to provide its services at a reasonable price. The company's sales manager's experience will allow setting a reasonable price to satisfy both sides: customers and SAMPLE COMPANYLLC. Hence, more customers will be attracted. 3.4.3. Advertising campaign To set a presence in the targeted market, a wide range of advertising tools will be used. The experience of the Company's CEO, Applicant, is sufficient to establish the advertising campaign via online resources. Besides online ads, the projected Company will set up Instagram and Facebook profiles, where the Company's services will be promoted, and the reviews of clients will be published. The major components of the campaign are shown below: • Introduce the projected box truck business by sending introductory letters alongside SAMPLE COMPANY LLC brochures to corporate organizations who into manufacturing, merchants and warehouse operators, households, and key stakeholders in and around COMPANYS DESTINATIONS • Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations
13 Sample Company LLC • Use the clients reviews to promote the projected company’s recognition among the people who live in the company’s operational region. • Leverage on referral networks such as agencies that will attract clients who would need SAMPLE COMPANY LLC’s customized services • Place a small or classified advertisement in the newspaper, or local publication about the company and the services it offers 3.4.4. Registering as a Government Contractor State and local governments have transportation needs as well, and the Company can bet directly by registering as a government contractor. This will allow the company to get additional benefits from the partnership with the government and get the competitive advantage by obtaining the government preferences, such as subsidies, contracts and so on. 3.5. Pricing and revenue The Company's revenue is forecasted as follows: it is assumed, that one box truck covers 5 miles a week (XX XXX miles monthly). Multiplying this value by the price of 1 mile of transportation (it is $X.XX), we get the projected Company's monthly gross revenue. Thus, we get the price for one day of car transportation. Multiplying this value by 30, we get the revenue of one truck per month. 4. Investment The Company has financed all of its investments from parent company's corporate account without any financial institutions' loans. Possession and control of the funds: Invested Funds From parent company's Corporate Account $XXX XXX Total Investment $XXX XXX
14 Sample Company LLC 5. Industry and Market Analysis 5.1. Market size The trucking industry refers to road transportation, such as semi-trucks and light trucks, to move goods across overland routes. Most commonly, goods are transported from manufacturing plants to retail distribution centers. Still, other common uses, such as building materials and waste, in the construction industry. Trucking is responsible for most of the overland freight movement in the United States, with the market being worth 791.7 billion US dollars in 2019. At that time, over 947,000 truck drivers were employed in the US, which is less than the industry requires. Owing to this shortage, driver costs are the most significant challenge faced by the industry. The US trucking industry can be divided into three main sectors: full truckload (FTL), less-than-truckload (LTL), and couriers. Over the five years to 2020, the Shipping Services industry has experienced varied trends but has improved overall. Up until the onset of COVID-19, low unemployment and improving income levels in the United States caused consumer spending to increase, leading to increased demand for shipping services. The freight transportation services index, a measure of freight trafficking volume, grew at an annualized rate of 2.79%. As a result, industry revenue reached $791.7 billion at the end of 2019 (see Figure 6). This statistic gives the breakdown of the US freight movement mode split based on tonnage. Sixty-four percent of the US freight was transported by truck. Thus, most of all, cargo in America is transported by trucks, which indicates a high potential for investment in the field trucking industry. Figure 5 Transportation market segments
15 Sample Company LLC Figure 7 shows the size of the truckload market from 2017 to 2020. As one can see, the market size has grown continuously over the past four years and reached $ 193.21 billion in 2020. The indicator has grown by 10% since 2017; the compound annual growth rate was 3.12%. Figures 6 and 7 show the trucking industry's total revenue and freight volume moved by trucks from 2014 to 2019. Total industry revenue has grown 13% over the past six years to $791.1 billion in 2019. The compound annual growth rate was 2.48%. The freight volume carried by trucking carriers in the United States from 2014 to 2019 also increased significantly. In 2019, a total of 11.84 billion tons of freight was transported by trucks in the US, the most considerable value carried by trucking services Figure 7 Market size dynamics Figure 6 Trucking industry revenue
16 Sample Company LLC registered in the period of consideration. Thus, the growth in freight traffic since 2014 was almost 20%. Thus, the market size, revenue, and volume of moved freight in the field of road freight transport have grown continuously over the past years. It can be concluded that this industry is developing steadily and has high investment potential. Data presented in Figure 8 shows that the truck transportation industry in the US employs more than 1,5 million people. Figure 9 Volume of freight moved by trucks Figure 8 Employment in truck transportation industry
17 Sample Company LLC 5.2. FTL and LTL services The figure below compares the number of companies that provide Full truckload (FTL) services and Less-than-truckload (LTL) services. As one can see, the number of companies that provide Full truckload services is about four times more than companies that provide Less-than-truckload services. Also, the number of entrepreneurs in the Full truckload market is growing faster than the number of entrepreneurs in the Less-than-truckload market. Thus, the Full truckload market is more attractive in America, but the Less-than-truckload market is significantly less competitive, making it easier to enter the market. The graph below shows the total market size of the less-than-truckload industry in the United States. In 2020, it reached over 78 billion US dollars. Over the recent years, this market has experienced a continuous increase due to improving economic needs for inland freight transportation in the US. Figure 10 Number of companies in business
18 Sample Company LLC This statistic depicts the primary types of services offered by trucking companies in North America in 2020. During the survey, 84% of respondents stated their Company provides Full truckload services. So, complete truckload services are the most popular services among all the services provided by trucking companies. At the same time, Lessthan-truckload (LTL) services rank fifth in popularity among logistics services. These services are provided by 66% of logistics companies. Figure 11 Size of the LTL market Figure 12 Types of trucking services
19 Sample Company LLC 5.3. Market Drivers in 2021 Additional stimulus and a successful and timely vaccine distribution will significantly impact what we would expect to see in the freight markets. According to analysts, the most likely scenario would be a return to 2018 values. This forecast is optimistic, as freight carriers' total revenue in 2018 was the highest in recent years and amounted to $XXX.X billion. Experts believe that Americans will see significant stimulus passed later in the first quarter, which would directly and positively affect truckload demand. While the pandemic has negatively impacted many, Americans' personal savings rate is currently trending at more than four times the five-year average, setting up perfect conditions for consumer spending to remain elevated throughout 2021. In 2020, American residents spent around $XX.X trillion on durable and nondurable goods and services. This is more than half a trillion less than last year. Thus, in mid-2021, Americans are expected to begin to realize the pent-up demand caused by restrictions due to the coronavirus's spread. In recent years, the trucking industry has faced a shortage of drivers. American Trucking Associations testifies that the shortage of drivers is growing by about XX,XXX each year. Because of the high demand, driver compensation is correspondingly very high. This statistic shows the results of a survey among US trucking companies in 2020 asking truckers about the most significant challenges for them in the trucking market (Fig. 11). The data presented show that only XX% of truckers identified competition as a problem. This means that the Company is entering a reasonably free market.
20 Sample Company LLC During the survey, XX percent of truckers stated driverrelated costs as one of the most significant challenges in the US trucking industry However, in 2020, due to the Coronavirus epidemic in America, unemployment rates increased significantly. In 2020, the US unemployment rate more than doubled from 2019 to XX%. Thus, we can expect an increase in the number of drivers in the market, which will simplify the Company to hire the drivers. Figure 14 Unemployment in the US Figure 13 Trucking industry problems
21 Sample Company LLC 6. Competitive Features 6.1. Competition Our Company will compete in the market with the same companies which provide the same loads hauling services. About XXX thousand companies operating in the truck transportation industry (this figure has grown by XX% between 20XX and 20XX), employing more than X,X million people in various roles. 6.2. Competitive Edge Competition in the transportation market lies in the area of secondary business activities. Either external or internal factors limit competition in root activities. All competitors use identical vehicles and roads and use the same amount of fuel. Also, the laws even prohibit competition due to the intensity of the work of drivers. Competition in the trucking market aims to obtain the most profitable orders with the lowest marketing costs. Applicant is an experienced specialist in the area of business development&sales as well as marketing. The task of reaching customers with minimal commissions or advertising costs corresponds to the partners' competencies and will be effectively solved. SAMPLE COMPANYLLC will establish a competitive edge by focusing on on-time deliveries for its specific target market. The Company's software, GPS tracking, online and phone information systems, and operations planning will be aimed to reach this goal. By making customers more confident of just-in-time delivery with the Company than with competitors, they will be more likely to use the business overall. In addition to competing with other trucking companies, SAMPLE COMPANYLLC will compete with rail and air cargo transportation. However, for the distances it intends to travel, trucking is at an advantage. COVID 19 introduced a significant element of uncertainty into the road haulage industry due to the disruption of supply chains. While transport volumes and costs will increase, uncertainty in trade flows can increase costs for transport companies. To avoid this, the Company will use the Digital Freight Matching Platform to reduce the number of
22 Sample Company LLC transactions, determine the most advantageous upload destinations and costs, and weed out non-performing clients 7. Key Management and Personnel 7.1. CEO: Applicant Applicant will serve as the CEO upon approval of his L-1 visa. His entrepreneurial background and industry-related knowledge have prepared him well to oversee the development and expansion of SAMPLE COMPANYLLC. Education In 19XX, Applicant graduated from Sample college and obtained a specialty of processing technology on machine tools with software control. Professional Experience From 19XX to 20XX1 Applicant occupied the position of the head of department in federal resource center "Sample Company – a company which principal activity was the execution of the state order for the construction and repair of objects of social significance in the city of XXXXXX and the XXXXXXX region (hospitals, schools, kindergartens). From 20XX to 20XX, he headed a separate company in the XXXXXXX group of companies. XXXX XXXX "Xxxxxxxxx", being the General Director. In 20XX, by virtue of efficient work "XXXXXXX" received an offer from "XXXXXX", the Russian market leader in the production of electricity metering devices, to organize a distribution network in the XXXXX Federal District, to promote and sell the products of "XXXXXXX". Since 20XX, he has been a partner (XX% co-founder) and Deputy General Director of XXXXXX LLC. Following the results of the Company's work in 20XX, the general partner of "XXXXXXXX" in XXXXXXX proposed to organize a similar distribution company in the XXXXXXX. From 20XX to 20XXX, Applicant was the co-founder and deputy general director of XXXXX LLC, St. Petersburg, combining 2 positions and managing sales in two regions. Due to the efforts of Applicant, the Company has become a permanent leader of "Energomera Concern" distribution network.
23 Sample Company LLC Since 20XXX till presence, Applicant is the head and co-founder of XX% of the Company Parent Company LLC, located in St. Petersburg. From 20XX to 20XX, the owner and CEO of the Company and one hundred percent founder of XXXXXX LLC, XXXXXXX, the official distributor of XXXXXXXXXX. In SAMPLE COMPANY LLC, Applicant will determine and formulate policies and provide overall direction. She will plan, direct, and coordinate operational activities. Applicant will direct and coordinate the Company's financial and budget activities to fund operations, maximize investments, and increase efficiency. She will analyze operations to evaluate the performance of SAMPLE COMPANY LLC and its personnel in meeting objectives and determine areas of potential cost reduction, program improvement, or policy change. Applicant will identify and track changing industry trends to adapt or change its policies and procedures as needed. She will be responsible for promoting positive public relations and awareness of the Company's brand. Applicant will identify new business opportunities by studying the market and consumer trends.
24 Sample Company LLC In Year 1, Applicant will be responsible for overseeing the following: Table 1 Tasks % Time Allocated (Strategic and Administrative Management) Development, approval, analysis, and monitoring of the Company's development strategy to maintain a competitive level; development, approval, and monitoring of KPI achievements; decision-making on launching new strategic projects Development of relationships with key clients, customer service quality Development of the relationship with the principal-service provider, the conclusion of long-term contracts on favorable terms for the Company; taking decisions on expansion of the services or new destinations. Human Resources Management Personnel selection and recruitment (review and revision of the Company's structure, planning, description and placement of vacancies, examination of resumes, interviews with potential candidates) Staff assessment and development (planning and tasking, analysis of strategic/annual/transactional reports, decision-making on staff motivation tools) Financial Management Performance measurement changes management, decision-making, and prioritization Evaluation of ongoing projects and decision-making Analysis of management and accounting records, financial performance, decision-making Investment policy (free money use decisions) 7.2. Sales Manager The projected Company will hire a Sales Manager in Year 1. This employee will guide the Company's sales volumes and estimate the potential demand's volume for the Company's products which can be fulfilled by the SAMPLE COMPANY LLC's efforts. Sales manager will lead a sales team by providing guidance, training and mentorship, setting sales quotas and goals, creating sales plans, analyzing data, assigning sales territories and building their team. The responsibilities of the Sales Manager are listed below:
25 Sample Company LLC Task Name %Time Allocated Managing organizational sales by developing a business plan that covers sales, revenue, and expense controls Meeting planned sales goals Setting individual sales targets with the sales team Tracking sales goals and reporting results as necessary Coordinating with marketing on lead generation Promoting the organization and products Overseeing the activities and performance of the sales team Recognizing gaps in skills and offering training to improve sales staff performance 7.3. Accountant The Company plans to hire an Accountant in Year 1. This employee will realize the bookkeeping by maintaining all the Company's financial operations. The bookkeeper will prepare the accountancy to present it during the board meeting and to third-party organizations, if it is necessary. The responsibilities of an Accountant will be shown in the table below: Task Name %Time Allocated Preparing the accountancy for the quarterly board meetings Conducting the recordings of the Company's financials regularly Assessing the financial performance of the Company Providing the Company's accountancy to third-parties 7.4. Third-party Dispatcher SAMPLE COMPANYLLC will hire one Third-party Dispatcher in Year 1. The Third-party Dispatcher will coordinate the Company's drivers to provide their safety and stick to the timelines stated by clients. By the work of these employees the Company's ability to observe the delivery time will be provided. The full list of this employee’s responsibilities is shown in the table below:
26 Sample Company LLC Task Name %Time Allocated Creating safety routes for the Company's drivers Reporting about the potential problems can happen during the route Assess the efficiency of the drivers' work Calling to the relevant services in case of emergency 7.5. Drivers: 70 employees The Company will hire four drivers (two drivers to be assigned for one truck and work in team) during Year 1, two drivers in 2022, and two drivers in 2025 to drive trucks and deliver orders to the clients. Drivers will load, transport, and deliver items to clients or businesses safely and timely. These employees will review orders before and after delivery to ensure that orders are complete, the charges are correct, and the customer is satisfied. Drivers will assist with loading and unloading items from vehicles. These employees will accept payments for delivered items. Drivers will provide excellent customer service, answer questions, and handle complaints from clients. These employees will adhere to assigned routes and follow time schedules. Task Name %Time Allocated Load, transport, and deliver items to clients or businesses in a safe, timely manner Review orders before and after delivery to ensure that orders are complete, the charges are correct, and the customer is satisfied Assist with loading and unloading items from vehicles Accept payments for delivered items Provide excellent customer service, answer questions, and handle complaints from clients Adhere to assigned routes and follow time schedules 7.6. First Year Company Development The Company plans to start work with two trucks. One additional truck will be rent in January 2022 and another one in January 2025. This plan will let the Company expand its
27 Sample Company LLC business and generate additional income. From 2025 the Company will reach the maximum possible productivity. 7.7. Personnel Tables Number of Employees per Position Year 1 Year 2 Year 3 Year 4 Year 5 CEO Accountant Third-party Dispatcher Driver Sales Manager Total Employees Designated Salary per Position Year 1 Year 2 Year 3 Year 4 Year 5 CEO Accountant Third-party Dispatcher Driver Sales Manager Figure 15 Trucks purchasing
28 Sample Company LLC Personnel Costs Year 1 Year 2 Year 3 Year 4 Year 5 CEO Accountant Third-party Dispatcher Driver Sales Manager Total Employees Total Payroll Expenses 7.8. Personnel Summary The Company will reach the total headcount of 74 employees in Year 5. The Company expects its payroll expenses to increase from $XXX,XXX in Year 1 to $X XXX XXX in Year 5. 7.9. US Internal Organizational Chart The SAMPLE COMPANYLLC’s 1-st year organizational chart is presented in Figure 16. Figure 16 1st Year Organizational Chart
29 Sample Company LLC While developing business, the Company's organizational structure will change and become as follows: Figure 17 5th Year Organizational Chart
30 Sample Company LLC 8. Financial Forecasts 8.1. Break-even Analysis Break-even Analysis Monthly Units (km) Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost The daily break-even point is $XX,XXX 7 or 1308.13 km traveled by trucks per day. The break-even point of $XXX,XXX per month represents an average of 43 241,2 products provided (miles driven) per month. SAMPLE COMPANYLLC will engage in a significant number of activities aimed at attracting and retaining customers. The Company is expected to reach its break-even point starting from the period 14.
31 Sample Company LLC 8.2. Sales Forecast Sales Forecast Year 1 Year 2 Year 3 Year 4 Year 5 Distance traveled by trucks, miles Price for mile, $ Sales Direct Costs for Petrol Direct Cost of Sales 8.3. Profit and Loss Pro Forma Profit and Loss Year 1 Year 2 Year 3 Year 4 Year 5 Sales Direct Cost of Sales Gross Margin Gross Margin % Operating Expenses Salary and wages COGS General Costs Other expenditures Total Operating Expenses Profit Before Interest and Taxes EBITDA Taxes Incurred Net Profit Net Profit/Sales 8.3.1. Cost/Benefit Analysis Cost-Benefit Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Earned Income Net Profit Expenses Direct Cost % Direct Cost/Total Cost Indirect Cost Salary and wages
32 Sample Company LLC Cost-Benefit Analysis Year 1 Year 2 Year 3 Year 4 Year 5 General Costs Other expenditures Subtotal Indirect Cost % Indirect Cost/Total Cost Total Expenses Net Profit/Total Expenses Net profit and total expenses ratio increase over time, suggesting that the business is becoming efficient and more profitable. Hence, it can be concluded that SAMPLE COMPANY LLC is a lucrative investment. 8.4. Balance Sheet Pro Forma Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5 Assets Current Assets Cash and Inventory Total Current Assets Fixed assets Total Assets Capital Paid-in Capital Retained Earnings Total Capital
33 Sample Company LLC 9. Conclusion SAMPLE COMPANY LLC will develop the cargo business with the main activity to transport goods across the country. SAMPLE COMPANY LLC was formed as a Limited Liability Company on August XX, 20XX, in Florida. The Company is 100% owned by its parent company, Parent Company LLC, Russia. Applicant will occupy the CEO position within the Company. Sample Company LLC will hire a Staff Manager, a Third-party Dispatcher, an Accountant and X Drivers for one truck in the 1st operational Year. The Company will increase its headcount to XX by the end of Year 5, with its payroll expenses starting at $XXX,XXX in Year 1 and increasing to $Х,XXX,XXX in Year 5. Under the executive direction of Applicant, who has extensive professional experience, the Company's sales are expected to grow from -$XXX,XXX in 1st year to $X,XXX,XXX in 5th year.
www.masterplans.ruRkJQdWJsaXNoZXIy MjcxODE=